CHAPTER- THREE

3.1
3.2
3.3
3.4
3.5

3.0 CURRENT MARKET SITUATION

Introduction
Market Description
Product Review
Competitive Review
Distribution Review

3.1

INTRODUCTION

If we consider the current market then I find that industry has a significant growth rate.
So a lot of companies are coming here. But the others manufacture companies are failed
to target the right market and reach them. Sometimes they failed to give them the
appropriate massage. IFCI Ltd. are selected their own target customer group and make a
marketing strategy.
In the market the coconut oil is not a new product for the customers. Particularly in our
country we have lots of coconut oil and so one. IFCI Ltd. has quality full coconut oil
which is made for all type of customers. Our coconut oil has neutrality and made with the
mixing of vitamins.
When the customer will get the knowledge about the coconut oil, which is natural and the
coconut oil contain the originality to the customer will go for it. We believe in reality,
and we want to serve the nation. We are spoiling our skin and we serve the nation almost
the dusty thing. We do not have any right to do this ridicules thing with our people. Thats
why we want to contribute ourselves as a responsible business man and do something
good for this country.

3.1. MARKET DESCRIPTION

IFCI Ltd.s market consists of young customers and aged customers who need to
conveniently non sticky, healthy and wealthy, strong hair. Sales are expected to be
growing up over the next few years. IFCI Ltd. markets Ibnsina Coconut Oil to the
customers with their economy status segment. Bangladesh is a poor, overpopulated, and
inefficiently-governed nation. In our country GDP per capita is only $ 1700 or Tk.
1,27,500. Population below poverty line is 40%. Labor force - by occupation in
agriculture 45%, Industries 30% and Service 25%.[7] The primary buyer maximum is in
Lower class. So companys first target market is Lower class. Then their target market is
middle class & upper middle class people. In table 3.1 shows the target buyer group of
Ibnsina Coconut oil. IFCI Ltd.

No.
01.

Group Name
Lower Class

Market Size
40%

02.

Economy Class

15%

03.

Middle class

15%

04.

Upper Middle class

10%

Customer Need
Product price is cheap
Good product with a better
price and quality.
Quality full product with many
features.
Quality full

product

with

selective features.

TABLE 3.1: TARGET MARKET CLASSIFICATION.

Company thoroughly covers their target customers serially, so that company can cover
the whole market step by step. Also those buyer has three groups, those are Teenager
group (12 years to 19 years), Younger Group (20 years to 30 years), Aged Group (30
year plus), who are concern about their hair, who have little capacity to concern with the
doctor but want to avoid this expense because of their limited income. They want to buy a
reputed companys coconut oil by a name they can trust. They want a coconut oil with all
the materials that is appropriate for their need. Specific segment being targeted during
years includes small children, young girls and also aged ladies. Table 3.2 shows how the
Ibnsina Coconut Oil addresses the need of targeted customers and business segments.
Targeted

Customer Need

Segment
Teenager group

(12 years to 19
years)

Strong & shine hair

dandruff free hair
Different style &
Individuality

Product Features
Non-Sticky coconut hair Oil
Vitamin E Nourishes, strengthens
& shines the hairs
Prevents the cause of dandruff
Natural coconut oil
Vitamin B-12 prevents the cause of

Younger Group Hair fall control

Long Black hair
hair falls to the minimum level
(19 years to 30 Looking absolutely gorgeous
Vitamin B6 cause remain black hair
years)
& beautiful
for a longer time
Vitamin E causes Healthy hair grow
Aged Group
(30 year plus)

Hair fall control

Remain black hair

Vitamin E Healthy hair grow

for Vitamin B6 cause remain black

longer period

hair for a longer time

TABLE 3.2: NEEDS AND FEATURES OF IBNSINA COCONUT OIL.

3.2

PRODUCT REVIEW OF IBNSINA COCONUT OIL

Our product, Ibnsina coconut oil, offers the following standard features:

* Non-Sticky coconut
hair Oil

* Prevents the cause

of dandruff

* Natural Coconut Oil

* It has Vitamin A,
Vitamin E,VitaminB-6
and Vitamin B-12

* Prevents the cause

of hair falls to the
minimum level
* Remain black hair

* It makes hair Stronger

for a longer time

* Hair become Thicker

* Healthy hair grow

* It makes hair Shinier

* Smooth hair

* Nourishes the hairs

Figure 3.1: Feature Of Ibnsina Coconut Oil.

This features are differentiate our product from other competitors who are already in the
market. Ibnsina Coconut Oil contains Vitamin A, E, B-6 and B-12 etc., those Vitamins are
good for hair health. These vitamins are ensuring by our coconut oil which are not able to
other coconut oil. The chemical mixes which in our production procedure is completely
confirm us about these vitamins.
Year 2012 our sales revenues are projected about Tk. 5 cor based on sales about 18.5 lacs
Ibnsina Coconut Oil units at a company price of Tk. 27 each. During 2013 we plan to

focus on economy class with their expectation by giving TV advertise, Radio advertise
and other communication system. The economy class expectations are as follows

3.3

Natural coconut oil.

Vitamin B6 causes remain black hair for a longer time.
Vitamin E causes Healthy hair grows.

KEY COMPETE OF IBNSINA COCONUT OIL

Increased entry of establish consumer & manufacture companies has pressured industry
participants to continually add features and cut prices. There are many specialized stable
company in this competition market.
Key competitors are included:

Parachute, A market leader in its category, Parachute

Coconut Oil today stands for purity and quality. Over the
years, the brand has seen a lot of innovations in packaging,
printing, materials and tamper-proofing. Parachute enjoys
enormous loyalty in both urban and rural sectors.

Jui Coconut Oil is good for hair care. Jui has the best
quality refined coconut oil that makes your hair naturally
soft and healthy, which will in turn get you the appreciation
from your close ones appreciation that you truly deserve.
For convenience, Jui Coconut Oil is available in both Plastic
and Tin containers.

Vatika Enriched Coconut Hair Oil provides natural

nourishment to your hair, giving it body & radiance while
taking care of the critical balance of nutrients. Unlike
ordinary coconut oil, Vatika's coconut oil is enriched with
the goodness of 8 time-tested herbs. They work magic on

your hair, giving your hair & scalp complete nourishment

for that problem free, healthy crowning glory. The new
improved formulation of Vatika Enriched Coconut Hair Oil
is proven to be better than ordinary coconut oil.

Tibbet world famous coconut oil, imported from Colombo,

which is refined most scientifically. It has enriched with
natural tocopherol, low acid value and no artificial perfume
added.

Despite the strong competition, Ibnsina Coconut Oil can overcome a definite image and
gain recognition among the target segments. Our features have a critical point of
differentiation for competitive advantage. Also offering seasonal offering gives our
product a competitive edge compared with other Coconut Oil in the cheaper price range.

3.4

DISTRIBUTION REVIEW

This section presents importance of each distribution channel. Ibnsina Coconut Oil is sale
through Dealers (100%). Dealers sell those to the wholesalers (40%) and to retailers
(60%) like Super shops, Departmental shops, Shopping mall etc. IFCI Ltd. dominates in
channels that are declining in importance, whereas it is a weak competitor in the fastergrowing channels such as discount stores. IFCI Ltd. gives more margins to its dealers,
which is similar to what other competitor give.

Company
Dealers
Wholesalers
Retailer
Customer
s

TABLE 3.1: DISTRIBUTION REVIEW OF IBNSINA COCONUT OIL.

CHAPTER- FOUR

4.0 SOWT ANALYSIS

4.1
4.1.A
4.1.B

Introduction
Strength of Ibnsina Coconut Oil
Weakness of Ibnsina Coconut Oil

4.1.C
4.1.D
4.2

4.1

Opportunity of Ibnsina Coconut Oil

Threats of Ibnsina Coconut Oil
Objective & Issues

INTRODUCTION

SWOT is the combination of 4 key words, which constitutes the internal and external
issues of a company, an SBS prevent an industry. The 4 key words are, S=Strength;
W=Weakness; O=Opportunity; T=Threat.
Strength: Strength refers to the competitive advantages and the other distinctive
competencies that a company can exert in the market place.
Weaknesses: Weakness is constraints that hinder movements in certain directions.
Opportunities: A marketing opportunity is an area of buyer need in which a company
can perform profitable.
Threats: A threat is challenge posed by an unfavorable tend or development that would
lead, in the absence of defensive marketing action, to deterioration in sales or profit.

SWOT ANALYSIS

Internal
Factors

External
Factors

Strength

Weakness

Opportuni
ty

Threats

In SWOT analysis two factors act as prime movers:

Internal factors which are prevailing inside the concern which include Strength
and Weakness.

On the other hand another factor is external factors which act as Opportunity and
Threat.

4.1. A STRENGTH OF IBNSINA COCONUT OIL

IBNSINA can build on three important strengths. They are:

Brand Image: The names IBNSINA itself the premier brand image. It has been
able to create enormous goodwill by its quality product all over Bangladesh.

Innovative Product: There are lots of COCONUT

OIL

product like Parachute, Jui,

dabor, Vatika etc are available in Bangladesh. But no one is come out with clear
refined natural Coconut oil, so it has much more probability to achieve success.

Cost advantage: Already IBNSINA provides various types of product offerings

to its customer and thus satisfies the needs of various customer segments.
Therefore, as the organization has a lot of customers, its operational costs go
down.

Pricing: IFCI Ltd. does not take high price as other Coconut oil is taken by other
companies. We think that the price is quite reasonable to be succeeded.

4.1. B

WEAKNESS OF IBNSINA COCONUT OIL

Lack of Product Awareness: Though the product has a bit low price, it may fail
to create the proper awareness towards the target customer.

Availability of Coconut Oil: Bangladeshi climate is suitable for the coconut. So,
rural Companies can collect coconut easily and they can produce unrefined
coconut oil easily. So, it is the weakness of our product to marketing in a quality
price.

4.1. C

OPPORTUNITY OF IBNSINA COCONUT OIL

Growing number of customers: Seeing the current situation of the coconut oil
industry and also the population boom, it can be depicted the Bangladesh needs
more modernized and different types of product and this is therefore a big
opportunity to enhance its sincere position in the consumers mind through
increased number of quality product and different product.

Increasing customers awareness: In the years the people are very much aware
about their hair skin. They dont like to take capsules or tablets from outside and
open market. So it will create the advantage to provide the quality oil.

4.1. D THREATS OF IBNSINA COCONUT OIL

Growing Number of Competitors: As there is a growth visible in the oil

industry, many multinational and national companies are entering in the market to
serve the customers. To survive in the industry, IBNSINA has to face the threats
created brand positioning.

Downward Price Pressure: Increased competition and market-share strategies

are perusing oil companies to decrease their prices. So the profit margin is very
low in here.

Large number of indirect Competitor: In the coconut oil, there are lots of
indirect competitor. So these coconut oil companies are the main threats of
IBNSINA coconut Oil.

Our company will maintain the market with experienced marketing executives and best
product quality which makes a good relationship with the customers, so that customers
never switch our coconut oil. Our company will mention about product quality by
television advertise, banners, radio advertise etc., so that new consumers will include
with our product. By this work our company can overcome the competitors and
downward price pressure.

4.2

OBJECTIVE & ISSUES

IFCI Ltd. has set aggressive but achievable objectives for the next two years, 2012 and
2013 of market progress.
Year 2012 Objectives
During 2012 year, Ibnsina Coconut Oil are aiming for a 3 percent share of the
Bangladeshi market through unit sales volume near about 300,000 carton.

Year 2013 Objectives

Their 2013 year objectives are to achieve a 7 percent share based on the market sales of
two models and to achieve break-even early in this period.
One major issue is their ability to establish a well-regarded brand name linked to a
meaningful positioning. They will invest heavily in marketing to create a memorable and
distinctive brand image projecting innovation, quality and value. They also measure
awareness and response so they can adjust their marketing efforts if necessary.

CHAPTER- FIVE

5.0 STRATEGIC MARKETING

5.1
5.2
5.3
5.4
5.5
5.5.A
5.5.B
5.6

5.1

Positioning Strategy
Product Strategy
Pricing Strategy
Distribution Strategy
Marketing Communication Strategy
Event management
Brand Ambassador
Marketing Organization

POSITIONING STRATEGY

Our company is positioning the Ibnsina coconut oil as the most versatile for personal use.
The marketing strategy will focus on the Prevents the cause of dandruff, hair fall controls;
remain black hair for a longer period and makes hair strong. These features will be placed
for periodic time. These make our product features many differentiate to others. From
the March09 to October09 market share of Ibnsina Coconut Oil with other competitors
are showing table 5.1. [8]

Product Name
Parachute [Pure
Coconut] - BD
Jui [Pure
Coconut] - BD
Ibnsina Coconut
Oil - BD

Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
2009 2009
2009
2009
2009
2009
2009
2009
11.7% 12.1% 12.1% 12.3% 13.0% 13.1% 13.3% 13.3%
0.1%

0.1%

0.1%

0.1%

0.1%

0.1%

0.1%

0.1%

0.0%

0.02%

0.03%

0.05%

0.08%

0.8%

0.09%

0.1%

TABLE 5.1: MARKET SHARE OF IBNSINA COCONUT OIL IN 2009

5.2

PRODUCT STRATEGY

This Coconut oil is actually the coconut water and nuts from coconuts. It is very useful
for the hair because it is high in Potassium and contains other vitamin and minerals like
Calcium and Magnesium.

Features of IBNSINA coconut oil

To get the market we have to create differentiation within the product. If the product is
different and if the product has the quality, the product will get the market. In the hair oil
category, our product is totally different quality. We have some new feature for my
product. Those features are as follows:
The coconut oil creates the newness in to the coconut oil market. The oil is from the
coconut. After testing the oil in the laboratory the oil is launch in the market. So the
chemical which are in the oil we can detect and we can explain these chemicals to the
customers. The only purpose of this chemical is to create the oil keep the fresh of 12
months.
Ibnsina the coconut oil has Vitamin B-12, Vitamin E and Vitamin B-6 with no side effect
and it is no more harmful for the hair skin. The oil just creates the hair silky and it looks
nice.
Ibnsina provide an extra pack with the plastic container. Everybody wants to make some
different in to their life. And even in their appearance they want some change. They want
to make difference with their food, clothing, and life style. The extra pack will provide
some capsule to the customer.

Ibnsina is mixed with a chemical, which will protect the oil from bacteria, and keep the
oil as same as it was when manufactured. The chemical is very costly and it is only used
in the hair item.

5.3

PRICING STRATEGY

The Ibnsina Coconut oil has three type of bottle size, those are 45 ml., 100 ml. and 200
ml. our company pricing strategy has three parts, those are Company price, dealer price
and market retail price. The present pricing are shown in the table 5.2 as follows

No

Product Name

Size

Company

01

Ibnsina Coconut oil

45ml

price
13

02

Ibnsina Coconut oil

100ml

03

Ibnsina Coconut oil

200ml

Dealers Price

Market Retail

14.5

Price
18

27

29.5

35

50

55

68

TABLE 5.2: PRICE OF IBNSINA COCONUT OIL

These prices are reflecting strategy of (1) attracting desirable distributor channel and (2)
taking market share from Parachute coconut oil.
In this report I explain about Ibnsina Coconut oil 100 ml. sizes.

5.4

DISTRIBUTION STRATEGY

The distribution of the coconut oil is bit different. Because of the low cost of the machine
of the plant, every district we usually set up a factory of it. It will raise the speed of
distribution. The coconut oil is perishable, thats why the factory set up is need. In the
district town we have more than 15 depots to distribute the product. Every morning the
product is provided to the agent by van from the factory, and the agent provide the
product to the shop within short time. The product will go outside the country by cargo
with other item. The distribution of this product will make within a day in anywhere.
First, we collect coconuts from Bagerhut, then it mixing up to the companys factory in
Bhuigar, Fotulla, Narayangonj. The Finished good are stored maximum to the factory
store. Our company sell their good from corporate office by agents in the country, which

declared by company agents own area and they are very efficient to distribute the
product in the local market area. Timing is very important for the distribution. In every
division company has depot for distribution to their district distributors. So, the whole
country is in a circle by the distribution channel. So, every distributor can receive the
product in a day.

5.5

MARKETING COMMUNICATION STRATEGY

This is the most important part of marketing a product. The customer knows a product by
Promotion. So if Promotions have a lacking the product will not get the market. There is
various ways of doing Promotion. As my product is new and novelty, I will go for certain
communication, and those are as follows:

Publicity/ Public Relation

TV ads
Print media (newspaper)
Radio
Billboard & poster
Event management
Spoke person

Our company was given Billboard and posters advertisement. Our company also
promotes this product in the print-media. Our target is to promote our product by
achieving each step. First of all we are trying to get the awareness in the customer mind.
Then we provide the usefulness and the advantage of this product. We associated this
product with the people through different event and sponsorship. We think it will make
different our product with others coconut oil product.

5.5. A Event management

As my product is not a new and I have the equity of my brand, I have to spend money for
the show up of my product. Thats why I have selected event management. By going
event like, concert in some renowned place of all the cities of this country, it can be
helpful to create an image to the market.

5.5. B

Brand Ambassador

We are also inviting a spoke person as our brand ambassador, who will usually try to
build our brand awareness to the customer.
The spoke person or the brand ambassador for IFCI Ltd. is Api Karim and Jahid Hassan.
They will do this work for my brand for next one year. That was the whole project paper
of my coconut oil. All the elements are built in this project, and I think the IFCI Ltd. can
create its brand equity by building its value.

5.6

Marketing Organization

IFCI Ltd. Chief Marketing Officer, MD. Zahidul Islam Sarker, holds overall
responsibility for marketing strategy and direction. Figure 5.1 shows the structure of the
eight-person marketing organization. IFIC Ltd. has hired Worldwide Marketing to handle
national sales campaigns, trade and consumer sales promotions, and public relations
efforts.

Marketing Manager

Sales Manager
Regional
Sales
Regional
Sales

Advertising Manager
Advertising
Analyst

Promotion Manager

Promotion
Analyst

FIGURE 5.1: IFCI LTD. MARKETING ORGANIZATIONS