Final Report

Strategic Marketing ManagementAli Akbar Group

Table of Content

Executive Summary..........................................................................................................................................3ACKNOWLEDGEMENT...........................................................................................................................4COMPANY ADDRESS...................................................................................................................................5

MISSION STATEMENT.............................................................................................................................6BRIEF HISTORY......................................................................................................................................7LPG PROJECT.............................................................................................................................................7

Customer Analysis..........................................................................................................................................8Segmentation................................................................................................................................................8

Definition..........................................................................................................................................................8Unfilled Wants and Needs.......................................................................................................................8

Competitor’s Analysis....................................................................................................................................9Competitive Evaluation Sheet.................................................................................................................10Efficacy of Product:..................................................................................................................................11

The PEST Analysis of Insecticide Industry...........................................................................................11Five Factor Porter Model..........................................................................................................................14

1. Threat of New Entrants to the Market....................................................................................142. Bargaining Power of Firm’s / Company Suppliers...............................................................153. Intensity of Rivalry among Competing Firms........................................................................154. Bargaining Power of the Customer / Client............................................................................155. Threat of Substitutes...................................................................................................................15

The Switching Cost.............................................................................................................................16ENTRY EXIT MATRIX........................................................................................................................17Entry Exit Barrier..................................................................................................................................17Strengths & Weaknesses ANALYSIS.....................................................................................................18

SWOT Analysis.............................................................................................................................................18Strengths: (Internal).................................................................................................................................18Weaknesses: (Internal).............................................................................................................................19Opportunities: (External)........................................................................................................................19Threats: (External)...................................................................................................................................19

Internal Factor Analysis – IFE....................................................................................................................20External Factor Analysis – EFE..............................................................................................................22GE Matrix.................................................................................................................................................24

Analysis of GE Matrix..........................................................................................................................24Product Mix.................................................................................................................................................25

PRODUCT...............................................................................................................................................25DEFINITION.................................................................................................................................................25

PARTS OF THE PRODUCT.................................................................................................................26BRANDING...............................................................................................................................................27

Definition........................................................................................................................................................27PACKAGING.............................................................................................................................................28

1. Primary Packaging..................................................................................................................282. Secondary Packing..................................................................................................................283. Shipping Packaging.................................................................................................................28

BASIC INGREDIENTS.........................................................................................................................29PRODUCT LIFE CYCLE..........................................................................................................................29PRICE.......................................................................................................................................................30

DEFINITION.................................................................................................................................................30PRICE ADJUSTMENT TECHNIQUES...............................................................................................30BASIC PRICE SETTING APPROACH................................................................................................30

PLACE......................................................................................................................................................31

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DEFINITION.................................................................................................................................................31DISTRIBUTION LEVELS....................................................................................................................31

PROMOTION.........................................................................................................................................33DEFINITION.................................................................................................................................................33ELEMENTS OF PROMOTION....................................................................................................................33FUTURE TRENDS AND COMPETITOR’S RESPONSES....................................................................34HOW TARGET MARKET WILL CHANGE...........................................................................................35

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Executive Summary

This feasibility study is about project of an insecticide company which is already working

in Pakistan as Pesticide Company and the name of the company is “Ali Akbar Group”.

For the purpose we are studying different aspect of it to know about the business

environment and its exact requirement for better decision making in future. Ali Akbar

Group Company is in business sine 1993 and doing its job fine. It is neither registered

with Lahore Stock Exchange (LSE) nor KSE or ISE. The head quarter of the company is

at Lahore while it is working in all over Pakistan.

It is basically an pesticide company which is working all over Pakistan and now entering

into insecticide industry. Competitors of this company are Mortein, bygone, finis and

bayer.

The company is facilitating in pesticide industry with 48% of shares and is market leader.

Now they have decided to enter in to this industry with me too strategy to penetrate the

market. Brand name they have decided for the product mirage.

Pricing strategy they have adopted is marketing penetration pricing strategy.

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ACKNOWLEDGEMENT

In the name of thy Lord who created, man from clot.

Above all we indebted to Almighty Allah, lord of our lives and of every

thing in universe and his Holy Prophet Muhammad (PBUH) whose

blessing enabled us to perceive and pursuit higher ideas of life.

The repot of Internship is the result of our day and night efforts, which

we have made to, complete this very extensive and creative work.

I deem it a great honor and privilege to record our sense for gratitude to

respected teacher

Mr. Mobin-Ul-Haq

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COMPANY NAME

AAG

COMPANY ADDRESS1-Km Bhoptian Chowk Defence Road, Off Raiwind Road, Lahore

TELEPHONE92-42-5321461-5

FAX+ 92-42-5321324-5

HEAD OFFICE..1-Km Bhoptian Chowk Defence Road, Off Raiwind Road, Lahore

Email: [email protected]

Website: http://www.aliakbargroup.com/

INTRODUCTION OF THE COMPANY

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http://www.aliakbargroup.com/


Ali Akbar Group (AAG) is Pakistan’s largest ago-chemical group of Pakistan and third

largest group in Asia. They are the market leaders in agro-chemicals section, providing

high quality products and services to their customers and franchisers.

MISSION STATEMENT

“Our Mission is to serve

the agriculture Sector of Pakistan by

providing high quality

tested products to our farmers through our enthusiastic, dedicated

employees And member Companies”

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BRIEF HISTORY

Ali Akbar Group based in Lahore is a diversified business group of below mentioned

companies:

Ali Akbar Enterprises

Pak China Chemicals

Pak China Polymers

Dada Jee Corporation

4B Group

Soneri LPG

Ali Akbar Group is amongst the top 5 crop protection companies in Pakistan. They

started marketing of agrochemical since 1993, as natural response to the opportunity

arising from the ever-growing demand for crop protection chemicals in Pakistan. First

direct sale was carried out at the end of 1993 with improved Methyl Parathion. They offer

a comprehensive range of products such as herbicides, fungicides, matricides and plant

growth regulators every year. Here our point of focus would be launching of a new

product in Fast Moving Consumer Goods section, Insecticides. They are entering into this

market for the first time.

LPG PROJECT

Installation of LPG bottling Plant at Lahore.

Sonari Gas is a project of Links International (Ali Akbar Group).

Plant has storage capacity of about 180 M ton Gas.

Plant has Production Capacity of 25 M ton per Day.

Proper Marketing/distribution network has been developed all over Pakistan.

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Customer Analysis

Segmentation

Definition

“As way of dividing the total market into distinctive group with unique and

different wants for effective strategies and profitability.”

Basis of Market Segmentation

We are going to launch our product only in Lahore region at initial stage. For this

purpose, our target market will be females aging between 18-55 old house wives

who are the final decision makers in purchasing of many house hold items. Since

our product is also a house hold product so they would be our target market. As far

as segmentation is concerned, we have divided Lahore into A, B, C and D

categories. The detail for which is given below:

A = Defence and Cantt Area

B = Model Town, Garden Town, Township, Wapda Town, Faisal Town

C = Mughal Pura, Station, Garhi Shah, Bhaati

D = Raiwind Raod complete and related areas

We have said that the customer, who belongs to Township Area, will fall under our

Socio Economic Class B as mentioned above. In short we can safely say that we

have segmented our total market geographically and demographically.

Unfilled Wants and Needs

There is a gap where needs and wants of the consumers exist. We have identified

that the efficacy for the products available currently in the market have efficacy

ranges up to 24 hours maximum if sprayed once inside any house, where as we will

enter into this market with efficacy up to 36 hours if sprayed once. So there is a

need against which we are going to launch our product.

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Competitor’s Analysis

Competitor analysis is useful to provides us the picture of our competitors position in the

market, their weak spots if any, how can we bring in differentiation in our products and

creating our own competitive strategies.

When we go into the details of customer selection criteria, we found out that most of the

customer selects their products on the basis of their brand awareness, relatively lesser

customers also selects their products on the basis of referral marketing from the retailers.

The second question which arises how competitors segment the market? There are a

number of buying factors like performance, quality and price on the basis of which

competitors are segmenting the market, also they are segmenting the market on the basis

of high growth rate which is approximately more than 15 %.

The market shares of the major competitors are mentioned below: There are a number of

competitors but we are taking into consideration only 4 major competitors which can be

threat for us while competing into the market.

Mortein 39%

Baygon / Finis 37%

Kingtox 12%

Others 12%

The average sales volume for all above mentioned brands in Lahore are as follows:

Mortein 4 crore

Baygon / Finis 3.5 crore

Kingtox 1 crore

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These figures also stating that insecticide industry is very attractive industry in terms of

sales volume.

Competitive Evaluation Sheet

Factors Mortein Baygon Finis KingtoxProductQuality 4 5 5 3Brand 5 4 3 4Packaging 5 5 4 3Sizes 5 5 5 4Reliability 4 5 4 3PriceList Price 4 4 4 5Discounts 4 4 4 4Payment Period 4 4 4 4Credit Terms 4 4 4 4DistributionDirect Sales Force 3 3 3 3Company’s Represen. 4 4 4 4Distributors 4 4 4 4Transport 4 3 4 3PromotionAdvertisement 4 4 3 4Demonstrations 3 3 3 3Electronic Media 4 3 3 4Print Media 2 2 2 2Total Scores 67 66 63 62

After the detailed analysis of our competitors, we can easily say that we can work in

distribution system, prices promotion and product quality in order to enter into the market

as there is a lot of gap and needs to work on. We have our own LPG plant and keeping in

mind that LPG is main ingredient we can get competitive advantage on price as well

because we will produce directly from our plant. All other competitors mostly import the

main ingredient or purchases from Nestle who also have LPG unit in Pakistan. Ali Akbar

Group is second group having LPG plant after Nestle in Pakistan.

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Efficacy of Product:

We have found that the efficacy for the spray of Mortein lasts a full day, for Baygon and

Finis it lasts for almost 15 hours and for Kingtox it lasts for same as well. On the other

hand we are presenting our product with a big differentiation in the sense that efficacy of

our product will be more than 36 hours if sprayed once.

STANDARD SIZE AAG SIZE

300ml 350ml450ml 500ml600ml 700ml

So we are going to enter into this market with bigger volumes and lower prices than the

competitors along with amazingly high quality as compared to our competitors. These

two competitive advantages would be the key points of differentiation on the basis of

which we can compete.

The PEST Analysis of Insecticide Industry

The pest analysis of insecticide industry will give us an overall picture of what are

the macro variables / factors or the external factors which can affect the companies

operating in this industry. The four factors covered pest analysis is:

1. Political / Legal

2. Economic

3. Social-Cultural

4. Technological

Particulars Very

Positive

Somewhat

Positive

+/- Somewhat

Negative

Very

Negative

POLITICAL & LEGAL FACTORS

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Law and Order Situation *

Change of Govt. *

Govt. Protection *

Govt. Interference *

Insecticide Laws *

Weak Legal Structure *

Media Policies *

Foreign Affiliation *

ECONOMIC FACTORS

Taxes Imposed by Govt. *

Per Capita Income *

Industry Attractiveness *

Company Structure *

Bad Debts *

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Particulars Very

Positive

Somewhat

Positive

+/- Somewhat

Negative

Very

Negative

SOCIAL CULTURAL FACTORS

Company Popularity *

Customer Base *

Creativity *

Quality Conscious *

Services Provided *

TECHNOLOGICAL FACTORS

Foreign Companies Entering *

Use of New Equipment *

Creating Website *

Value Addition *

The PEST table shows the effect of above 4 factors and their respective variables on

different companies operating in this industry along five dimensions which are:

1. Very Positive

2. Somewhat Positive

3. Positive / Negative (no effect)

4. Somewhat Negative

5. Very Negative

After analyzing the PEST analysis of the industry, we have come to the conclusion

that overall this industry is operating in favorable circumstances and it would be

good chance for AAG to enter in new market in this field as well.

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Five Factor Porter Model

The competitive environment in which the company operates determines the

profitability and nature of competition. Both these variables are directly influenced

by developments in the competitive environment.

The model developed by Michael E. Porter has been most commonly used for

examining the competitive environment. The five factors in porter model are:

1. The threat of new entrants into the market

2. The bargaining power of the firm’s suppliers

3. the bargaining power of the firm’s customer

4. The threat of substitute product.

5. The intensity of rivalry among competing firms.

Together these forces determine the nature and extent of competition as well as

profit potentials and attractiveness of the industry.

1. Threat of New Entrants to the Market

For this industry the threat of new entrant is high. It is because of the fact

that any company who wants to enter this industry can easily enter by

keeping their commissions and other service charges comparatively lower

than the other company. The main ingredient of this product is LPG and it

can be easily available or can be easily imported if met the set criteria.

From the marketing stand point there are some companies with high quality

norms and have consistently exceeded the requirement of standards and they

sustain at the cutting edge in terms of technology, creativity and extra

services.

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Any new entrant coming into this industry will have to have the best brains

on its side because of the fact that there are many companies which are

already operating in the industry.

2. Bargaining Power of Firm’s / Company Suppliers

As far as bargaining power of suppliers are concerned, it is low because most

of the chemicals are directly imported from China. Anyone having strong

financial position may get this facility. The main ingredient in our product’s

case is LPG; we will use our own LPG for this purpose.

3. Intensity of Rivalry among Competing Firms

The intensity of competition among the competing companies is quite high. It

is due to the fact that as I have already mentioned that there are many

companies which are operating in this industry which give intensive rivalry

to other companies. There are few companies that are having major market

shares of the product that are, Mortein, Baygon, Finis, Kingtox and etc. All

other firms having brands like Tyfon, Power Plus, Cobra etc are holding

comparatively smaller chunks of market shares. In short we can say that the

competition is quite high here in this insecticide industry.

4. Bargaining Power of the Customer / Client

Bargaining power of customer is also very high in the sense that switching

cost is very low as well. They can easily switch off and change their product

ultimately causing any company lose their customer.

5. Threat of Substitutes

From our point of view threat of substitutes is very high. As we are planning

to get into the aerosol market only (spray cans) and all other competitors are

having complete product range in their product line like coils, mats, powder

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and phenyl. All these substitutes are used intensively by customers so we can

safely say that this is the only threat we need to take very seriously but not

considering the others factors of this model less important. Customer changes

their minds rapidly while purchasing any household item so we need to be

very careful.

The Switching Cost

The switching cost of the client is low because of the fact that there are many

companies which are operating in the current industry.

The five factor porter model can be shown with the help of the following table.

FIVE FACTOR PORTER MODEL

S.# Particular High Low

1. Threat of new entrant xxx

1. Bargaining power of firms supplier -- --

2. Bargaining power of customer xxx

3. The intensity of rivalry among competing firm xxx

4. Threat of substitutes

a) Switching cost

xxx

xxx

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ENTRY EXIT MATRIX

LOW EXIT HIGH

High Profitability and

Stability

High Profitability and

Instability

Low Profitability and Stability Low Profitability and

Instability

Entry Exit Barrier

The entry exit barriers of the company who wants to operate in this industry are

discussed in the below mentioned diagram. Entry barriers of this industry are quite

high as high investment is involved. Also government rules and regulations are to be

imposed on import of certain chemicals so one needs to also cater this fact as well.

On the other hand as far as exit barriers are concerned, these are comparatively on

moderate side. One can exit at the option of losing all its investment if product is

not meant for success in the current industry.

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HIGH

ENTRY

LOW


Putting the insecticide industry in the above matrix, following figure can be made:

LOW EXIT HIGH

Industry

Strengths & Weaknesses ANALYSIS

It is used to evaluate how Packages measures up to a competitor’s organization. The

strength & weakness evaluation is intended to determine where Packages is weak or

where it is strong as compared with the competition.

SWOT Analysis

Strengths: (Internal)

Strong Financial position

Strong brands available with AAG

More than ten different product offerings

Good reputation among customers.

Own distribution system all over Pakistan especially in rural areas

Second firm in this country having its own LPG plant after Nestle.

Communication system is very strong among departments

More than 600 mobile vans all over Pakistan

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HIGH

ENTRY

LOW


Two power plants with 1200KV and 1500KV capacity

New and latest machinery imported from China

Market leaders in agro-chemical sector having up to 48 % market share in

Pakistan

Job security is high

Motivated and target oriented employees

The involvement of Chief Executive also acts as strength because it is in the

benefit of the company as well as in the benefit of workers

Weaknesses: (Internal)

No distribution access in most urban areas

New entrants in FMCG’s

No proper training system for the employees

Opportunities: (External)

There is a slight gap in the market to fulfill customer needs as insecticides

currently available are not targeting all kinds of flying and crawling insects

Market growth 20 %

Arrival of new technology in LPG, all competitors are using Butane while AAG

will use Butane X that has high boiling point, preventing it from bursting up to 70

degrees.

Potential to capture large market share

Very few famous brands available in market i.e. we are going towards brand

building.

Threats: (External)

Shift in consumer habits to mostly use coils

Existence of strong substitutes that are coils and mats

Political instability in the country

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Imported brands entry into insecticide industry

Price increase of raw material

Many substitutes available for the current product

Intense competition in the industry

GE Matrix

4

3

Market Attractiveness

(EFE)

2

1

4 3 2 1

Business Strength (IFE)

Analysis of GE Matrix

Market attractiveness is shown on the vertical axis and Business strength is shown on the

horizontal axis, we have examined the companies SWOT (strengths, weaknesses,

opportunities and threat) and plotting the external and internal factors on the GE matrix.

AAG falls on the green area as shown in the diagram above. This category shows that

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AAG should adopt growth strategies and use aggressive approach ahead as they are in the

green area of this matrix.

Now after study the GE matrix we can safely say that we can go for a new product

offering as AAG business is on growth stage and they should be able to handle the

pressure of launching a new product using its all resources. We have selected to go for a

single product market, after sometime we will opt for going into multiple product

marketing.

Product Mix

Effective in the conditions where there are insects and provides complete protection

against the diseases spread by all flying and crawling insects.

PRODUCT

DEFINITION

“Anything that can be offered to the market for attention, use, acquisition or

consumption that may satisfy a need or a want may be termed as product.”

From this company, we have chosen a product which is aerosol. Aerosols are

containers containing chemicals and other materials that are kept under pressure and

useful against insecticides. Every product is divided into consumer base or

industrial base. The product we have selected to go for is true for consumer markets

and it’s a FMCG used by many households. If this product is for warehouse then it

is industrial good and if this product is used by the household then it is consumer

good.

It is also an emergency good as well because when crawling and flying insects

increase then it is being used by the households for immediate relief from the

insects.

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PARTS OF THE PRODUCT

1. CORE PART

It presents utility, benefit and satisfaction to the households. It increases the

care when it sprayed in house, schools, university and any place. When

protection from insects increases, definitely customer will be satisfied. In the

core part of the product we meant basically for its effectiveness or

functionality for which it is being made.

Benefits:

Our spray will be odorless rather it will be available in a sweet aroma smell

which makes customer to buy without delay.

2. ACTUAL PART

Mirage is a killer of flying & crawling insects. Here important point

of focus is its raw materials and the spray itself

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Core Part

Actual Part

Augmented Part


3. AUGMENTED PART

Its brand name is mirage.

High quality product

Prices & size option which we proposed for customers are 350ml (Rs

76) 500ml (Rs 112) & 700ml (Rs 154).

This spray can is coming in multi color having green, red & yellow

color.

BRANDING

Definition

“Any sign, symbol, name insignia used to identify the company or its

product/services may be termed as brand”.

Brand name of this product is Mirage.

Mirage has brand recognition; we are offering termite proofing medicines as well

with this brand and this would be our brand extension as well.

Every customer who has insects at their homes must have ideas about the

insecticides. So this is brand recognition.

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Branding

Brand Mark Brand Name


It is also a brand insistence, because it provides expected results so customers insist

to buy Mirage. It has a good brand name.

PACKAGING

Definition

“Packaging includes all activities of designing and producing the container or the

wrapper of the product”.

1. Primary Packaging

The primary packaging would be a spray can and get it wrapped up by a

colorful printed plastic paper on which its method of application, directions,

ingredients etc will be given for the convenience of customers.

2. Secondary Packing

The plastic foil cover the wrapper is known as secondary packing.

3. Shipping Packaging

The corrugated box containing the 12 boxes of this product is called shipping

packing which helps in transportation during the delivery the product.

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Parts of Packaging

Primary Packing Secondary Packing Shipping Packaging


BASIC INGREDIENTS

The basic ingredients for our product are as follows:

LPG 97 %

Poison 2 %

Permethrin 1 %

PRODUCT LIFE CYCLE

There are four stages of product life cycle:

1. Introduction

2. Growth

3. Maturity

4. Decline

This product is now on development stage because it is about to launch and if we

study the insecticide market then we identify that the industry is at maturity stage

still with much potential for the new entrants.

We have three different ranges in the product that are 350ml, 500ml and finally 600

ml. We have adopted an approach to go for large quantity with slightly lower prices.

Here important point to mention is that all competitors are offering standard sizes in

the industry that are 300ml, 450ml and 700ml. Here we have adopted slightly

different approach to cater the interests of our valued customers.

When we discuss its life cycle, we will be having lower price with high quality

strategy at development stage, then at maturity stage we will try to build our brand

name and our focus would be to maintain quality, at decline stage we will start

immense advertisement and promotion and we will re-position our product before

get into the declining stage.

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PRICE

DEFINITION

Buyer’s point of view:

“The amount of money that the buyer is willing to pay and pays in the price.”

Seller’s point of view:

“The amount of money at which seller is willing to sell and sells in the price.”

After having detailed analysis regarding our product, we are going to use

penetration price strategy for the upcoming product as we are not going to compete

in the market with full product range. The full product range includes aerosols that

are spray cans, coils, mats, powder and phenyl. We are only entering into aerosol

market so we will use “me too” for entering into the market.

PRICE ADJUSTMENT TECHNIQUESThe final prices for our product line would be as follows after analyzing the

competitors and their strategies:

Product Sizes 350ml 500ml 700ml

MRP Rs.76 Rs.112 Rs.151

The basis for the price determination and cost calculations are given below in detail.

BASIC PRICE SETTING APPROACHThe company has set the price as cost and pricing. We are going to use cost pricing

technique to calculate our final prices that are given above:

350ml 500ml 700ml

Labor Rs.8 Rs. 14 Rs. 23

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Material Rs. 30 Rs. 50 Rs. 70

Overheads Rs. 15 Rs. 15 Rs. 15

Full Cost Rs. 53 Rs. 79 Rs. 108

Incremental Cost Rs. 38 Rs. 64 Rs. 93

Conversion Cost Rs. 23 Rs. 29 Rs. 38

Margins Given to Distributors 12 %

Margins to Retailers 10%

Manufacturer’s margin 8%

We had our own LPG unit so that we can produce in-house and propellant or LPG is

the main ingredient of aerosols. All other competitors are importing LPG from

China etc and we have a competitive advantage here over our customers as we can

adopt the penetration strategy. For our customer the main cost element is LPG.

PLACE

DEFINITION

“Define as a set of independent / interdependent, individual or organization that

ensure the moment of goods from manufacturing to end user to satisfy the needs

and wants of the target market”.

DISTRIBUTION LEVELS We are going to use traditional distribution channel as given below:

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Distributors Retailer End UserMFC


As far as our competitors are concerned they are using below mentioned distributors

in Lahore.

MORTEIN

Mortein have selected Butt Brothers as their sole distributor in Lahore, they are

based in Gulberg Lahore. Their owner name is Mr.Abdul Waheed and as per

discussions with Mr. Tahir, one of their Operations Manager, we have found out that

in Lahore only Butt Brothers are giving them business of almost 4 crore on average

per month which means they area doing pretty good and keeping the Mortein brand

up in the industry. Then Butt Brothers distribute their whole product line all over

Lahore. One thing we have identified that company is not using their own delivery

system to the hyper markets like Metro, Makro and many other Mega Stores in

Lahore. They can only get the delivery from the distributors.

BAYGON / FINIS

As these brands are manufactured and imported by SC Johnson so they have

selected Sales Care Distributors for their Lahore region. We found very difficulty in

getting this information but after conducting interviews from retailers we found the

names of many order takers and ultimately they provided us their details. They are

based in Garhi Shah Lahore. On average they are giving around 3.5 crore of

business to they company. They are the challengers to the Reckitt who have

Mortein and Mortein is the market leader in the insecticide market. Also important

point to mention here, this company is also not using their own delivery system to

the hyper markets and many large stores in Lahore, we can keep this point in view

while selecting out distribution system with competitive advantage.

KING

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Their sole distributor in Lahore region is Spot Distributors. According to our

assessment and meetings with Mr. Arshad, Manager Operations, we have identified

their average sale is around 1 crore in Lahore sector. They have many other strong

brands as well.

OUR CHANNEL SELECTION METHODOLOGY

After having detailed analysis of all our major competitors we have identified that

we are going to use our channel same as of our competitors that’s manufacturer to

distributor and then finally to retailers and consumer. We will create our value here

for all the hyper and mega markets that we will be providing our own company

delivery system to all mega stores and hyper market area of Lahore. By adapting

this strategy we will be able to leave less geographical area for our distributors so

that they could penetrate and cater each and every retailer all over Lahore. We have

decided to go with new distributors who have distributions of many good brands all

over Lahore but not in same capacity that is insecticides. We are going to work with

Chaudhry Brothers who are currently dealing in distribution of air fresheners and

they have strong relationships in Lahore markets with retailers as well.

PROMOTION

DEFINITION

“Define as all activities through which the company’s organizations or firms

communicates with the rest of the world.”

ELEMENTS OF PROMOTION

We are going to launch this product very soon for that we’ll utilize ATL approach.

Over here we’ll use electronic media like T.V, billboard, magazine and hording. To

make customer aware of our product we’ll start advertising forty (40) days before

the launch of product. Through out promotion scheme we’ll taught customer what’s

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the product all about, how they can get benefits out of this product and what is

competitive edge in this product to attract more customer. With this approach we

can increase out sales revenue by attract more customer to over product.

Forecasted Sales PlanSizes 350ml 500ml 700ml

Final Price 76 112 151Keeping in mind that we are going to offer a new product we can assume its average sales in Lahore per day is 200 units, considering if we go for 150 A and A+ category stores, if they sell 2 pieces onaverage, total number of units sold were 300, it means 33900 units sold on average all over Lahore.Current Year Rs. 2010 2011 2012 2013Expected Sales 12,204,000 13424400 14766840 16243524 17867876Cost 8,542,800 9,397,080 10,336,788 11,370,467 12,507,513

Gross Profit 3,661,200 2376000 2613600 2874960 3162456Salaries 500000 550000 605000 665500 732050Other Expensis 400000 440000 484000 532400 585640

2,761,200 1,386,000 1,524,600 1,677,060 1,844,766Tax @ 16 % 441792 249480 274428 335412 368953.2

Net Profit 2,319,408 1,136,520 1,250,172 1,341,648 1,475,813We expect 10 % rises in prices and all other factors for future sales forecast for the same product

The above mentioned plan is only for aerosols that are spray cans only. In 2010, we are

going to add coils to our product line and in 2011; we will add mat and phenyl range to

our product line. We will not enter into complete product market as we are using “me

too” strategy so that first of all we will enter into this category of product one by one

having penetration strategy.

FUTURE TRENDS AND COMPETITOR’S RESPONSES

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Now the main point o discusses here that after our launching of aerosol product, what

would be our major competitor’s strategies, how they will be responding to our strategy

and what additional features they can bring into this product. As we are going to launch

our product softy into this market, competitors can bring new technology in future like

they can come up with products having more efficacy using quality chemicals as raw

material. Here in their expected response we would like to mention that already we are

using quality raw materials and as we have already an established research and

development department who keeps on working into new technology. So that we have no

threat in future if they bring changes in technology as well because we are the first local

manufacturer of this scale in whole Pakistan. Using our R&D strength we can

continuously have an eye on changing technology and adopting before our competitors.

As we have a larger network of vehicles all over Pakistan, so we will be using our own

distribution system when we will enter into the rural areas target market.

HOW TARGET MARKET WILL CHANGE

Now, we are going to analyze how our target market will change in future with addition

of new products. We would like to mention here that as we have discussed earlier in

segmentation part that our main target market will be female’s ages between 18-of years

old who are the purchase decision makers in houses. They will be our primary focus

throughout. Only point to add here is we may target this product at institutional level as

well but it depends on our success of the product. When we will get into the market of

coils we will target main rural area of Pakistan as well because in most the rural areas

instead of spray cans people like to use coils and mats and we will use our extensive

distribution channel of around 600 vehicles to cover such large target market.

In short after conducting, customer analysis we identified our target market and we

segmentation, after that we performed competitor analysis to identify our major

competitors, their strategies, weaknesses and strengths and we identified our areas of

Insecticide32


differentiation from our products. We conducted a detailed environmental scanning and

found the industry attractive enough to enter into the FMCG’s market.

Then we performed internal analysis to identify our major weaknesses and threats and

found our AAG to go for growth strategies so we diversified our business and planned to

go for a new product, the brand name for which we selected is Mirage, an extension of

our another product. Then we discussed about product, its packaging, pricing strategies,

promotion methods and finally distribution channels. After that we forecasted our sales

and prepared and sales plan for next five years. Our product is different from our

competitors from the following stand points:

We have offering larger sizes with high quality products.

As far as efficacy of the product is concerned we are on upper side from our

competitors

We have a slightly different channel of distribution in the sense that we will

deliver our product directly to hyper markets and many mega stores via our own

delivery system.

As we have a larger network of vehicles all over Pakistan, so we will be using our

own distribution system when we will enter into the rural areas target market.

Insecticide33

Final Report

Documents

insecticide company

ali akbar group company

pesticide company

company address

insecticide industry

pesticide industry

product life cycle

product mirage