City Group (Marketing plan for Teer soyabean oil)

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Background:

The date 6th February, 1972 marks the journey of a valiant effort in Gandaria,

Dhaka, when there was the beginning of the company known as "CITY OIL MILLS".

The founder Chairman; Mr. Fazlur Rahman started the group from scraps virtually. The

initial period was marked with a lot of hardships due to the post war era when the

country faced economic fallout. Initially the mission of the company was to produce

mustard oil for the local market consumption. The demand of the product showed the

way to a new arena of business.

For the next 18 years, the company operated within the vicinity of the Dhaka city and

met the demands of the local market. The revenue generated from this soon gave away

for the entrepreneur to evolve the company, which was by now one of the largest

mustard oil producing plants in the country.

A vision - to transform the company to a 21st century conglomerate of the country

started. "City Vegetable Oil Mills" was established at Rupshi, on the outskirts of Dhaka

city. This effort evidenced an accelerated growth of City Group and the the company

was soon found to open two more sister concerns by the year 1994 - "Hasan Vegetable

Oil Mills Limited" and "City Fibres Limited".

Within this period the founder also devised new production units and soon brand was

born - "TEER", the name itself captivating the hearts and minds of the people. Appearing

in this banner was the flagship product, "TEER SOYABEAN OIL", which soon found a

good market share.

The overwhelming revenue generated and the unprecedented popularity of the products

of City Group soon found its way into the hearts of the people. City Group was by now

one of the emerging industries of the country with an ever-expanding business, which led

to 21 sister concerns by the end of the year 2006.

CITY GROUP

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Presently, the company focuses on meeting and responding to the ever-changing needs

of the consumers both home and abroad. Till now City Group is one of the largest

company in the country, and business reaching foreign countries making it one of the

best conglomerates of the country. Years of meticulous work have paid off and by

now CITY GROUP OF INDUSTRIES has started its alteration towards an International

Standard Company along with its 21 sister concerns.

Our journey till now remains an epic adventure with more yet to come and we strive with

a quest - "A Quest for Excellence!"

Mission:

Our Mission is:  “To provide high quality health and food consumables for the

consumers in an affordable price and raise awareness in the Local & International market

for manufactured consumables from Bangladesh.”

Objective:

To provide HYGIENE, HEALTH & EXCELLENCE in food consumables for the

consumers at an affordable price and raise awareness in the Local & International market”

Goals:

Passion for Excellence

Business Integrity

Pioneering

Commitment

Development

CITY GROUP

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 Product Feature For Soya bean Oil:

Refined from Crude Degummed Soyabean Oil (CDSO) – Teer Refined Soyabean

Oil is one of the key flagship brands of City Group. Other than that the company also

produces Sun Refined Soyabean Oil.

The extraction process starts first as Crude Degummed Soyabean Oil (CDSO) is

imported directly from foreign countries in large oil tankers to Chittagong port, from

where its brought to the refineries of City Group.

The CDSO is refined with utmost perfection maintaining a harmony of both International

and Local Standards that are required along with safety and hygiene concerns. The

refining process eliminates all the impurities that are present in the CDSO in the from of

acid oil, moisture, gum and etc making sure it reaches the hands of the consumers in

perfect cooking condition.

For our consumer benefits the Standard Specifications and Nutrition Facts for Soyabean

Oil is provided below:

Specifications

 Refractive Index at 40o C    1.466 – 1.470

 Iodine Value    122-135

 Acid Value    0.06-0.12 mg/g as KOH

 Unsaponifiable Matter    3.25 – 4.00 mg/g as KOH

 Saponification Value    190.1 – 192.5 mg/g as KOH

 Volatile Matter at 105o C 

 Percent by Mass   0.08 – 0.12

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Nutrition Facts

Per serving of 10 gm

 Calories 90K Cal

 Cholesterol Nil

 Sodium Nil

 Saturates 1.50 g

 Monounsaturates 2.00 g

 Polyunsaturates 6.50 g

Our   Refined Soyabean Oil – a flagship product from City Group comes in three

types of Pack to meet the everyday needs of every type of household and consumer. Our

packing sizes are provided below:

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Food Grade HDPE Can

5 Liters 4 Liters 3 Liters 2 Liters

CITY GROUP

Food Grade HDPE Poly Bag

900 mL

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Food Grade PET Bottle

5 Liter 4 Liter 3 Liter 2 Liter 1 Liter 500 mL

Tin

16 Liter

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Drum

186 Kg

Levels Of Product:

Core Level: To Cook Food

Basic Level: Cholesterol Free

Augmented Level: Super Refined

Segmentation for Soyabean Oil:

Market segmentation is one of the steps that goes into defining and targeting

specific markets. It is the process of dividing a market into a distinct group of buyers that

require different products or marketing mixes.

Opportunities in marketing increase when segmented groups of clients and customers with

varying needs and wants are recognized. Markets can be segmented or targeted using a

variety of factor. The bases for segmenting consumer markets include:

Psychographic: Upper And Middle Class, Personality

Behavioral: Occasions

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The City group’s marketing department does not work only segmentation of Teer

Soyabean oil. It works with same kinds of product altogether. It does mass marketing

where differentiation is less than cost.

Positioning for Soyabean oil:

Maintain proper quantity.

We import this oil in our own responsibility. So there is no chance of mixing

Our price is also affordable than our competitors.

We have own modern machines to refine the oil.

Targeting:

After segmentation marketer concentrate on targeting. This is the second step of

marketing strategy, where marketers select a specific segment.

Target customer:

Housewives

Cookers for hotel and restaurant

Cookers of special program like marriage ceremony occasions

CITY GROUP

Chief Executive Officer

Chief Director

Managing Director

Accounting Department

Finance Department

HRMDepartment

Marketing Department

Board of Director

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Organization Hierarchy:

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Marketing Mix Strategy:

Marketing mix strategy is the set of controllable, tactical marketing tools

through which the company influence the demand of their product and wants to get the

response from the target market. Square has five groups of variables which known as 5Ps

in their marketing mix strategy.

a.Product: Product is the goods and services that companies offers to the target

market. City Group used forward invention for Soyabean oil to meet the need for the

treatment of cardiovascular diseases.

b.Price: Price of each 1 Litter bottle is 110, 2 Litter bottle is 208, 5 Litter bottle is

504, 8 Litter bottle is 820 Taka.

c.Place (Distribution channel): City Group has decided to distribute Soyabean oil

through their existing distribution channel and for this their objective is to supply the right

product in right place in right time.

d.Promotion: City Group promoted all kinds of advertisements, which bring

about uplift into the brand scenario for the company. We promote various aspects of our

products starting from Paper to TV Commercials and various other forms of

advertisements to promote our products.

A product is launched into the market through effective advertisements and will also

bring about a satisfactory return.

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Currently we are promoting Teer Soyabean, Teer Wheat (Atta), Teer Flour (Maida), Teer

Semolina (Suji) and Jibon Mineral Water. Interested models & producers are requested

to contact us through email with our following

address: [email protected]

Distribution:

“Good product marketing depends on a good and effective distribution network.”

We believe in these words and this is what inspires us to drive further and further

strengthen our network.

City Group has an extensive array of distribution network and with the help of this

network it has been able to extend its products into all the districts of Bangladesh. It

looks further into the prospects of extending its distribution network to all the “Thana”

level and welcomes all prospective Distributors / Dealers.

Each individual territory is taken care of well in advance by our territory managers and

our sales staffs are always there to assist our distributors with the demands.

Our products have been popular with the people of the country and with the

overwhelming demand; we are furnishing ourselves to meet the new consumer.

We hope to meet the consumers through our distributors and look forward with effective

planning and strategic campaigning to support our sales. Only the coming days will

predict our quality…

 Recommendation:

Need to give more advertisement in TV, Newspapers & FM Radios.

Organizing shows & conferences

Sponsoring sports & different shows

Tele-marketing & Online-marketing

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Web

Address

Employ

ees

Ann

ual

Sale

s

Reven

ue

Net

Income

Assets Liab

ilitie

s

Business

Value

Stoc

k

Valu

e

My

Company:

City Group

(Teer)

http://

www.citygr

oup.com.bd

/products/

pro_rso.htm

300 1680

core

1680*

4.5%

(7.5

cores)

1680*30

%

10000

core

yes Teer –tread

mark –

“bishudhhot

ai shera

momotai

Ghera”

50%

Edible Ltd.

(Rupchada)

http://

www.beol-

bd.com

25000 8000

core

8000*

4.5%

8000*20

%

2000

core

yes Rupchada

fish-

“Shasthokor

Protiti

Phota”

30%

T.K. Group

(Pusti)

http://

www.tkgrou

p.bd.com

4500 2000

core

2000*

4.5%

2000*30

%

20000

cores

yes Trade mark-

Pure and

Healthy. 10%

Meghna

Group

(Fresh)

http://

www.megh

nagroup.biz

6000 3000

core

3000*

4.5%

3000*30

%

40000

cores

yes

10%

Competitors Informaton

CITY GROUP

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SWOT Comparison Sheet

Strength City Group

(Teer)

Edible Ltd.

(Rupchada)

T.K. Group

(Pusti)

Meghna Group

(Fresh)

What are your

business

advantages?

Machine,

Asset, Strong

Brand ,

Image, High

Quality +

Quantity

Powerful

Advertisement,

use Omega-3

Pure+ healthy

product

(especially for

heart)

Pure + fresh

Product.

What are your

core

competencies?

Price and

packaging

Price and

packaging

Price and

packaging

Price and

packaging

Where are you

making the

most money?

Teer oil Rupchada oil pusti oil Fresh cement

What are you

doing well?

Marketing +

Merchandising

Marketing Marketing Marketing

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SWOT Comparison Sheet

Weakness City Group

(Teer)

Edible Ltd.

(Rupchada)

T.K. Group

(Pusti)

Meghna Group

(Fresh)

What areas are you

avoiding?

Our quality of

bottles is not

good enough.

They can break

so easily. We

know it, but we

are avoiding it to

avoid higher

cost.

Avoiding

customer cost

Avoiding

advertisement

Avoiding

customer

satisfaction

Where do you lack

resource?

Not have highly

educated

employee.

Employees are

not available.

Not have own

land or factory.

Poor quality

supply. Lack of

Man power.

Low quality

supply.

What are you

doing poorly?

Not producing

goods in spite of

demand.

Making higher

price.

Making poor

quality product

poor quality

product

Where are you

loosing money?

Market size is

small in

Chittagong area.

So we are

loosing money

in Chittagong.

In rental

payment as we

do not have own

land and factory.

Rents on

equipments.

We are loosing

money in Sylhet

area.

What needs

improvements?

Have to increase

more Factory

Delivery.

Have to make

own factory.

Have to improve

marketing policy.

Can reduce their

price.

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SWOT Comparison Sheet

Opportunities City Group

(Teer)

Edible Ltd.

(Rupchada)

T.K. Group

(Pusti)

Meghna Group

(Fresh)

Any beneficial

trend?

People want

small size

container and we

are going to

offer 5litr and 20

liter.

People are

becoming

conscious about

Cholesterol.

They are using

omega 3.erol.

They are using

also omega 3.

Now people

like beautiful

and strong

container.

Fresh

container is

beautiful and

strong enough.

Niches that

competitors are

missing?

N/A

This product is

mass marketed.

Not applicable.

This product is

mass marketed.

Not applicable.

This product is

mass

marketed.

Not applicable.

This product is

mass

marketed.

New

technologies?

New machine

from foreign

country. New

materials and

Train employee

by technologies.

New machine

from foreign

country.

New machine

from foreign

country.

New machine

from foreign

country.

New need of

customers?

Demanding

more

comfortable

product at

chipper rate,

want more good

packaging

want new get /

want more

facility

want new get /

want more

facility

want new get /

want more

facility

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SWOT Comparison Sheet

Threats City Group

(Teer)

Edible Ltd.

(Rupchada)

T.K. Group

(Pusti)

Meghna Group

(Freash)

Obstacle to

overcome?

bad sea port

facility

High price Bad packaging Bad packaging

Aggressive

competitors?

Rupchada Teer Teer Teer

Successful

competitors?

Rupchada Teer Teer Teer

Negative economic

condition?

If foreign

country sees that

we are not

aware of water,

air pollution

they will not

purchase our

products.

Inflation,

Recession.

Inflation,

Recession

Inflation,

Recession

Government

regulation?

Vat on port. Vat on port. Vat on port. Vat on port.

Changing business

climate?

Creating

syndicate of

owners.

Creating

syndicate of

owners.

Creating

syndicate of

owners.

Creating

syndicate of

owners.

Vulnerabilities? We collect raw

material from

foreign

countries

(Malaysia,

Singapore etc) if

they stop

supplies, we

cannot produce.

Low price of

other competitors

can be

vulnerability to

us.

Depend on

foreign raw

material.

Depend on

foreign raw

material.

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SWOT Analysis – Functional approach

Competitive (sw) Analysis – Comparison sheet

City Group (Teer) Edible Ltd.

(Rupchada)

Meghna Group (Fresh)

Strength Weakness Strength Weakness Strength Weakness

Products 4 1 4 1 2 3

Price 4 1 3 2 2 3

Quality 5 0 5 0 3 2

Selection 5 0 4 1 3 2

Service 4 1 5 0 3 2

Reliability 5 0 5 0 4 1

Stability 5 0 3 2 4 1

Expertise 5 0 5 0 4 1

Company

reputation

5 0 5 0 4 1

Location 4 1 4 1 2 3

Appearance 5 0 4 1 3 2

Sales

method

5 0 5 0 4 1

Credit

policies

4 1 3 2 3 2

Advertising 3 2 5 0 4 1

Image 5 0 5 0 3 2

Total : 68 - 7 65 - 9 48 - 27

61 56 21

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Environmental (OT) Analysis – Comparison Sheet

City Group (Teer) Edible Ltd.

(Rupchada)

Meghna Group

(Fresh)

Opportunity Threat Opportunity Threat Opportunity Threat

Technology 5 0 4 1 3 0

Economy 5 0 3 2 5 0

Political 5 0 5 0 5 0

Legal 5 0 5 0 5 0

Service

provider

5 0 5 0 4 1

International

Trade

0 5 0 5 0 5

People 5 0 4 1 5 0

Industry 5 0 2 3 5 0

Purchasing

Power

5 0 0 5 5 0

Social 5 0 4 1 5 0

Religious 5 0 5 0 5 0

Channels

Actors

4 1 4 1 4 1

Credit

policies

0 5 0 5 0 5

Media Access 5 0 5 0 5 0

Infrastructure 5 0 5 0 5 0

Total : 64 - 11

51 - 24 61 - 12

53 27 49

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Entry barriers and Exit barriers

Entry barriers:

Capital – to enter in soyabean oil market owners need huge capital. For large

factory one should collect huge capital. . One also need large amount of money to

get soybean seeds as raw material.

Vertical integration - A firm's coverage of more than one level of production,

while pursuing practices which favor its own operations at each level, is often cited

as an entry barrier

Customer loyalty – If the customers of a particular soyabean oil company are

loyal, then it will be hard for new company for enter.

Government regulations - It may make entry more difficult or impossible. In the

extreme case, a government may make competition illegal and establish a statutory

monopoly. Requirements for licenses and permits may raise the investment needed

to enter a market, creating an effective barrier to entry.

Switching barriers - At times, it may be difficult or expensive for customers to

switch providers

Exit barriers:

The factors that may form a barrier to exit include:

Large stake: We have a big amount of stake holder, such as, creditors, consumers,

and share holder. So if we want to dissolve then it will create some problem for our

stake holders. So it is exit barriers.

Legal restriction: Company has to face different types of restriction such as,

government restrictions.

By considering above situation, we can say that TEER SOYABEAN Oil is in high entry

barrier and low exit barrier segment. So we can say that, we get high stable return.

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References:

CITY GROUP