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Background of consumer Products (Snacks)
Prior to 1990s small enterprise or house holds were engaged inproduction of such products. They produced the products. Badam vaga,
chanachur, Dal vaza etc at their home manually and soled to the local
market, but in 1991. Pran group, the first and largest agro-based industry,
started to produce these products using modern machinery and
marketwise following modern marketing strategies and policies through
out the country. Their success alered others to come up with the business
and market interssed many large corparies coming into the market with
different agro based products: these companies mainly include Dandy
Foods, Al-Amin foods, BD foods, Arku foods, Shah foods etc. These
companies try to buy the farming products from the local market but
because of limited production they are to import from different countries.
In recent days these companies are engaged in cut throat competition. A
huge amount of capital has been invested in this industry by this time. So
it production of farming can be increased and congenial business
environment good prevails in the country, there is huge prospects of this
industry.
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Chapter two
Abul Khair Consumer Products (snacks) come into being
Abul Khair Consumer Products Ltd. Is a sisters concern of Abul KhairGroup. It started its journey in the first part of June in 2004. It
lounched some products like shah Dal vaga, Shah chanachus, shah
Badam vaga etc. On trial basis in July of the same year. And finally
it went for mass production and mass marketing in August in 2004.
Location:
Abul Khair Consumer Products (snacks) Ltd. Located at 277, Baized
Bostani Raod, Nasirabad Industrial Area Chittagong Considering all thing
it is one of the best industrial areas of the country.
Total Area of the factory
Abul Khair Consumer Products (snacks) Ltd. Own and operates its
factory in a plot of land measuring 3 areas (approximately). There are two
units where different products are produced in semi-auto production
process.
Country of origin of machinery
Abul Khair Consumer Products Ltd. Imports necessary machineries for
smooth and efficient production from India and Jarman.
Manpower:
For smooth and round the clock operation Abul Khair has 15 staff and
150 workers. There markers and staffs and markers mark in 3 shits by
rotation. They do not have any expatriate executive or staff.
Environment concern:
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They have no recycling process or wastage management process. But
they seriously concern about the health of the employee. They try to keep
hygienic marketing environment and ensure medical check before andpost appointment of employee. Moreover they try to produce un hygienic
products.
Risk Management:
Abul Khair Consumer (Snacks) ltd. Purchases insurance policy
against all types of probable risks. They seek advices
from different exparts to minimize unexpected losses.
Moreover they ensure easy access to fires services and
law enforcing agencies to keep the probable loss securing
easy entrance.
Organizational Structure
Factory Manager
Production Manager General Manager
Production
Supervisor
Production
Supervisor
Accounce
Executive
Personnel
Executive
Workers Workers
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Infrastructural facilities:
Abul Khair Consumer Products (snacks) Ltd. Being set up in an ideal
industrial area in commercial capital city of Bangladesh enjoys allinfrastructural facilities including natural gas, electricity, water supply
transportation and communication facilities.
Natural Gas
Because of nature of industry it needs uninterrupted gas supply. To meet
the intense demand the factory is linked to natural gas supply network.
Electricity
The factory is connected with high power electricity line and gets mostly
unintrupted electricity. The factory own a 50 kw stand by Desil
generator to ensure instant power supply when the above
mentioned source is disconnected.
Water Supply
The factory is connected with city water supply line moreover it has its
own deep tube-well which is sufficient to keep the factory running.
Transportation facility:
Abul Kahir consumers Ltd is located in Baized Bostami industrial area
which is 15 km distant from Chittagong Port. Chittagong
Rangamati interdestrict road has passed may in forul of the factory.
So it has easy access to transportation network for both import and
consignment to any other part of the country or world.
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Communication facility:
The factory has BTTB connection and it is connected with its corporate
office and all other departments with in the factory through LAN.
PRODUCTION PROCESS
Production process is not full automatic. It consists of different manual
and auto stages.
Clean up stage:
It is the first stage of production process. Here pulses, nut, are husked and
cleaned up.
Mix up stage:
In the second stage different types of spices and colors are mixed with
cleaned pulses and nuts.
Incase of fired gram salted and spiced pulses are powdered and mixed
with different types of species and colors.
Frying stage:
Here colored and spiced pulses are powdered and mixed with different
types of species and colors.
Frying stage:
Here colored and spied pulses and nuts are tried in automatic machine.
Packaging stage
In this stage fired snacks are packed up in different sizes of packet and of
different with the bhelp of automatic machine.
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CHAPTER THREE
PRODUCT STRATEGY
Meaning of productA product is any thing that is offered to a market for attention,
acquisition, use or consumption that can satisfy a want or need. Snacks is
basically impulse goods people do not think of buying, just after seeing
they by this type of products.
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Types of product
Products can be devided into two broas groups based on the types of
consumers which are-1. Consumer product
2. Industrial product
Snacks are consumer products because these are directly bought and
consumed by the customers.
Consumers of the products
Children to youth group mainly buy and consume the products. No
special class of consumers ranging from rich to poor all
people consume the products.
Types of raw materials
The following raw materials are used in production of snacks.
i. Pulses
ii. Flaner
iii. Different colors
iv. Different spices
v. Small.
Sources of raw materials
Raw materials are basically collected from domestic and international
market.
Abul Khair consumers Ltd. Mainly import from
Australia
Canada
India
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European countries (Color and smell).
PACKAGING STRATEGY
Size of packet
These products are packed in different sizes of packet
Weight of packet Moster bag packet
400 GM
200 GM
100 GM
50 GM
(40 Pices) 16 KG
16 KG
10 KG
10 KG
Packaging
Packaging is very important for maintaining quality and attracting the
customers. Sometimes good looking and attracting packet ensures market
success of a product. Abul Khair consumers (Snacks) Ltd. uses High
Density Polithin (HDP) for maintaining quality.
Quality maintaining
Abul Khair Consumers (Snaks) Ltd keep vigilant eye upon all thins and
every stage of production. They examine quality at the following stages.
1. Collection of raw materials
2. Different stages of production3. Hygienic production environment
4. Healthy workers.
5. Packaging (High Density Polithen)
Branding
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Rerhaps the most distinctive skill of professional marketers are their
ability to create, maintain protect and enhance brands of its products and
services.A brand name is a name, term, sign, system or design or a combination of
these intended to identify the goods or services of one seller or group of
sellers and to differentiate them from those of competitors. Abul Khair
Consumers (Snacks) Ltd. has developed brand name with their logo of
group of companies in the following names.
i. Shaad Canachur
ii. Shadd Dalvaza
iii. Shad Badam vaza
iv. Shaad Potato creakers (in the pipeline)
Positioning
Positioning is the act of designing the companys offering and image to
occupy a distinctive place in the target markets mind. Abul Khair
Consumers (Snacks) Ltd. launched its products into the market in August
of to 2004. From the every start it has been facing tough competion
because some other companies are operating in the market for long time.
But since Abul Khair Group is a renowned group so it holds a strong
position in the markets mind. More over Abul Khair Consumers (Snacks)
Ltd. highly emphasizes on quality and charges comparatively less price
than others. And as a result of their things it has been able to create a
position in the market by they time.
Position of Abul Khair Consumers (Snacks) Ltd.
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They think they belong to the middle position in the market. But they
observe their development rate is higher than that of others and they are
hopeful to be market leaders in the coming future.
Resource and Development
Abul Khair Consumers (Snacks) Ltd. has a separate department with
responsible people for continuing; reasurce and development nork. They
are continually collecting market information and examining the
competitors condition. They try to know whether the consumers are
satisfied on not.
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Chapter 4
Pricing strategy
IntroductionThe amount of money charged for a product or services or sum of the
values that consumers exchange for the benefits or having or using the
products or services is price. Price is the marketing mix element that
produces revenue but other produce costs. Price is also one of the most
flexible elements. Prices are often set by the company boss.
Factors effecting pricing decision
A companys pricing decisions are affected by both internal and external
factors which are given below:
Internal factors External factors
i Marketing objective Nature of market and demand
ii Marketing mix strategy Competition
iii Costs Other environmental factors
(economy, government)iv Others
Abul khair consumer (Snacks) Ltd. Considers almost all the above
mentioned factors in setting price. AKC mainly focuses on competitors
costs, offers, prices AKC do not fluctuate prices with the change in
demand.
Since some other competitors are operating for longtime so pricing too
much sensitive. But AKC does not compromise quality reducing price.
AKC thinks if necessary price will be higher but quality can not be
compromised AKC also considers the internal factors like companys
profit, different costs which are completely controllable by the top
management.
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Pricing approaches
AKC mainly following competition based pricing though a new company
has few options to follow another pricing method except cost basedpricing method but since some other companies are operating in the
market AKC has to follow competition based pricing method. Despite
these things it thinks of its costs and profits.
Pricing strategy
There are some widely exercised price quality strategy which are shown
in a graph
ProductQuality Price
High Medium Low
High 1. Premium strategy 2. High value
strategy
3. Super value
strategy
Medium 4. Over charging
strategy
5. Medium value
strategy
6. Good value
strategy
Low 7. Rip-off strategy 8. False economy
strategy
9. Economy
strategy
AKC adopts High value strategy. Because it does not compromise quality
but change medium price.
Pricing objectives:
Pricing decisions are often affected by some objective set up earlier bythe top management. A company can persue any of five following major
objectives through pricing:
i. Survival
ii. Maximum profit
iii. Maximum market share
iv. Maximum market skimming
v. Product quality leadership.
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AKC has set up price of its products keeping the following objectives in
view:i. Survival
ii. Product-quality leadership.
Price adjustment Strategy
A company follows different price adjustment strategies for various
customer differences and changing situations. The main strategies are:
I. Geographical pricing
Geographical pricing means how the company price its products to
different customers indifferent locations and countries.
II. Discount pricing
Reducing prices to reward responses such as early payment, purchase
volume, and off season buying.
III. Discriminatory pricing
Adjusting prices to accommodate differences in customers, products,
locations, and soon.
IV. Promotional pricing
Company can & use several pricing techniques such as loos-leader
pricing, special event pricing, cash rebates, low-interest financing, longer
payment terms, warranties and service contracts, and psychological
discounting to stimulate early purchase or more purchase.
V. Psychological pricing
Adjusting prices for psychological affects. Price says some things about
the product. For example, many customers use price to judge quality.
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At present AKC does not exercise any of the price adjustment strategies
mentioned above. Its pricing strategy is same for all sorts of customers
and for all areas of the country but AKA is thinking followinggeographical pricing technique for exporting to middlest market.
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Chapter five
Distribution strategy
In today, economy most producers do not sell their goods directly to thefinal users. Between them standers a set of intermediaries performing a
variety of functions. Marketing channel consists of some interdependent
organizations involved in the process of marking a product or service
available for use or consumption. There are two broad categories of
distribution channel direct and indirect.
AKC uses only indirect channel of distribution to make the product
available for use.
Types of channel
First : Zero level channel
Manufacturer ---------------------------------------> Customer
Second: One level channel
Manufacturer ------> Dealer/Retailer -------->Customer
Third: Two level channel
Manufacturer ------> Dealer -------->Retailer--->Customer
Fourth: Three level channel
Manufacturer--> Dealer-->Whole seller -->Retailer-->Customer
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Diagram of channel of distribution is as under
AKC uses one level channel of distribution
Manufacturer --------> Retailer -------->Customer
AKC has huge number of sales representatives performing the activities
of order taking product delivering and market promotion through out the
country under the supervision of area sales manager, regional sales
manager and general manager sales. These sales representatives sale the
products to the retailers.
Factors to be considered in selective channel of distribution.
1. End-user considerations
2. Product characteristics
3. Capabilities and resources
4. Functions that need to be performed.
5. Availability and capabilities of intermediaries.
Manufacturer
Dealer
Whole seller
Retailer
Customer
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Since AKC use one level distribution channel and it mantstomake its
products available every where and sales in small lit and in chash so it
does not considers the things scrutinizely.
Channel objective
The amin channel objective of Abul kahir Consumers Ltd is to made the
products available every where in the country and maximize sales
volume.
Channel functions
A distribution channel moves from producers to customers. It overcomes
the major time, place and possession gaps that separate goods and
services from those who would use them. The channel member of AKC
perform the following functions.
1. Distribution: Retailers distribute the products to the final
customers.
2. Information: Retailers some times give important information
about the market conditions.
3. Promotion: channel members sometimes help AKC to promote its
sales volume and build up market image through the participation
of many promotional activities.
4. Matching: Retailers often match the markets needs with the
company, offerings.
Channel management decision
Abul Khair Consumers Ltd. Thinks that channel of distribution plays a
very vital role between producers and customers and perform a variety of
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functions. So channel management decision is very important. Channel
management decisions include three things:
1. Selecting channel members2. Motivating channel members
3. Evaluating channel members.
The channel management decision is taken by top management. AKC
sells its products to the retailers directly. This company maintain close
relation with the retailers through continuous communication. Since there
retailer is
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Questionnaire
Questions about manufacturing Plant
1. Could you tell about the short history of your factory?
2. Could you tell us about ownership of the plant?
3. Where is your factory located?
4. What is the total area of the Plant?
5. What is the organ gram of the plant?
6. How many units and machineries in it?What in the country of origin of the machineries?
7. How many employees (executive & staff) work here?
8. Do you have any expatriate executive?
9. Do you think that Abul Khair Tobacco is the leading factory in this
line?
10. What are the sources of raw materials?
11. Do you have any wastage processing arrangement for the protection
of environments?
12. Do you ensure hygienic environment for the market?
13. Do you have any policy to cover losses occurred by any kind of
accident?
14. What are the steps in manufacturing process?
15. Where do you cheek quality of the product?
Questionnaire about UPS
QUESTIONS ABOUT PRODUCT:
1. What is the concept of your product?
2. What types of raw materials are used in
3. What are the brand names of your product?
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4. Do you think your product is market leader/
5. Who are the users of your product?
6. What are the different sizes and shapes of your product?7. Do you have R & D Department?
8. What are the sizes of packet of your products?
9. Do not you think that your production plant in polluting the
environment?
10. What are the process to justify the comparative standard of your
product?
11. Do you maintain separate department in the factory?
12. How cereld you measure the quality of your product?
13. Are your customer satisfied having your products?
14. How do you collect information about customer satisfaction?