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Commodity products are largely undifferentiated products that offer little or no perceived
differences between competitive offerings. In today's competitive business environment,
industrial marketers must work harder than ever before to achieve some degree of
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differentiation for their products to avoid being viewed as a commodity. Many firms have
sought to achieve this differentiation by branding their products.
Branding, however, is more than simply putting the company's name on a product and
broadcasting that name to its target audiences. For industrial products, branding is a
multidimensional notion that includes not only how the customers view the physical product,
but also the logistics, customer support, and corporate image and policy that accompany this
product. However, this report demonstrates the experience gathered in the organization with a
view to provide an overall exposure regarding commodity branding practices.
1.1.0
This report is based on the topic Commodity Branding Practices of Gypsar by ACI
Fertilizer. Basically this report is part of the internship program as a partial requirement for
obtaining BBA degree. This report will help me to understand the practical commodity brand
practices of a company. It was a nice experience for me to combine my theoretical knowledge
with relevant practical field.
1.2.0
1.2.1
1.2.2
Specific Objective:
1.3.0 Methodology: Basically this report is based on secondary data, although some primary
data are also available.
1.3.1 Primary Data: Mainly primary datas had been accumulated from my organizational
supervisor Mr. Yusuf Alam, Product Executive, ACI Fertilizer, furthermore accumulated
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from Mr. Bashir Ahmed, Business Manager, ACI Fertilizer ;Mr.Rashidul Hasan Hemal;
Product Executive, ACI Fertilizer and Mr.Arifur Rahaman, Customer Services
Executive.
1.3.2 Secondary Data: Secondary datas are accumulated from website of ACI Ltd,
accessible information of ACI Fertilizer and some articles.
1.4.0 Limitation(s): Quite a number of difficulties were faced while preparing this
report. Those hindered the progress of preparing this report. Such limitations are as
follows:
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registered in the name of Advanced Chemical Industries Limited. Listing with Chittagong
Stock Exchange was made on 22 October 1995.
ACI follows International Standards on Quality Management System to ensure consistent
quality of products and services to achieve customer satisfaction. ACI also meets all national
regulatory requirements relating to its current businesses and ensures that current Good
Manufacturing Practices (CGMP) as recommended by World Health Organization is followed
properly.
ACI has been accepted as a Founding Member of the Community of Global Growth
Companies by the World Economic Forum which is the most prestigious business networking
organization.
2.2.0 Mission, Vision & Values of ACI Limited:
Mission: ACIs mission is to enrich the quality of life of people through responsible
application of knowledge, skills and technology. ACI is committed to the pursuit of
excellence through world-class products, innovative processes and empowered employees to
provide the highest level of satisfaction to its customers.
Vision: To realize the mission ACI will:
Endeavor to attain a position of leadership in each category of its businesses.
Attain a high level of productivity in all its operations through effective and efficient use of
resources, adoption of appropriate technology and alignment with our core competencies.
Develop its employees by encouraging empowerment and rewarding innovation.
Promote an environment for learning and personal growth of its employees.
Provide products and services of high and consistent quality, ensuring value for money to its
customers.
Encourage and assist in the qualitative improvement of the services of its suppliers and
distributors.
Establish harmonious relationship with the community and promote greater environmental
responsibility within its sphere of influence.
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Quality
Customer Focus
Fairness
Transparency
Continuous Improvement
Innovation
Chairman
Manging Director
Executive Director
Executive Director
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Executive Director
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Director
Business Manager
Product Manager
Product Executive
Junior Product
2.4 .0 Major Business Units (SBUs): Advanced Chemical Industries (ACI) Limited
currently operating three major Strategic Business Units. A brief description of these
businesses has been given below:
2.4.1 Pharmaceuticals: ICI plc, the UK based multinational pharmaceutical company,
established a subsidiary at Dhaka in 1973, known as ICI Bangladesh Manufacturers Limited.
In 1992, ICI plc divested its share to local management, and the company was renamed
Advanced Chemical Industries (ACI) Limited.
ACI formulates and markets a comprehensive range of more than 387 products covering all
major therapeutic areas, which come in tablet, capsule, powder, liquid, cream, ointment,
gel ,ophthalmic and injection forms. ACI also markets world-renowned branded
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pharmaceutical products like Arimidex, Casodex, Zoladex, Atarax etc. from world-class
multinational companies like ASTRAZENECA, UK and UCB, BELGIUM in Bangladesh.
ACI is actively engaged in introducing newer molecules and Novel Drug Delivery Systems
(NDDS) to meet the needs of the future.
ACI introduced the concept of quality management system by being the first company in
Bangladesh to achieve ISO 9001 certification in 1995 and follows the policy of continuous
improvement in all its operations.
Aligned with the concept that a pharmaceutical must ensure effective management of
environment, ACI complies with standard environment management policy, thus adorned
with EMS 14001 in 2000.
ACI maintains a congenial and supportive relationship with the healthcare community of
Bangladesh, with the belief that business excellence can only be achieved through pursuit of
quality by understanding, accepting, meeting and exceeding customer expectations. The
management of ACI, a competent team of professionals, thus operates with a progressive
attitude to provide effective solutions to satisfy the customers needs, through its products and
services of uncompromising quality.
2.4.2 Consumer Brands: ACI Consumer Brands was initiated in 1995 with two major brands
of the company ACI Aerosol and Savlon. These are two of most prestigious products which
are enjoying the leadership position in the market. The division started to take new businesses
through off shore trading as well as local manufacturing. In this process ACI Consumer
Brands launched many new products and also bonded with Joint Venture business
relationships with Dabur India and Tetley UK and attained international alliances with
world renowned companies
The Consumer Brands Division boasts in having an unequivocal presence in consumers' heart
with the market leading brands like ACI Aerosol, Savlon, ACI Mosquito Coil & ACI Pure
Spices and Flour. With close to 80% market share in own categories, ACI Aerosol and Savlon
are the persistent performers in keeping the household clean and free from germs and harmful
insects. The ACI mosquito coil has also emerged as a formidable opponent to both the
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mosquito and the competition, by providing effective and affordable solution to the conscious
people of Bangladesh.
A sound mind goes with a sound body-ACI believes in this age old proverb and our young
generation needs to grow up with healthy physique and sound mind who will lead the nation
in future. With this belief, ACI has entered in to the commodity food business with ACI
Pure Brand. The aim is to provide purest of the food products to Bangladeshi consumers at
affordable price for which ACI has invested in very large scale in state of the art
manufacturing facilities for daily kitchen essentials like vacuum evaporated edible Salt,
Spices and Flour. The products are delighting the consumers by providing 100% dirt free,
pure and natural food ingredients which can compete against any international products.
ACI Consumer Brands is successfully serving the consumer demand for foreign products in
household and personal care category with the world renowned product range of Colgate,
Nivea & Dabur. With the proper distribution and marketing by ACI consumer brands, the
world's No. 1 tea brand "Tetley" is now available to the consumers of Bangladesh.
As a successful business, ACI Consumer Brands is focused on achieving the consistent
growth required to continue the success and to make ACI an even stronger company.
2.4.3 Agribusiness: ACI Agribusiness is the largest integrator in Agriculture and Livestock
and Fisheries. These businesses have subunits like Crop Protection, Seed, Fertilizer,
Agrimachineries, and Animal Health. These businesses have glorified presence in
Bangladesh.CC & PH supplies crop protection chemicals, Seed supplies Hybrid Rice,
vegetable and Maize seeds, Fertilizer Supplies Micronutrient and Foiler fertilizer,
Agrimachineries supplies Tractors, Power Tiller and Harvester and Animal Health supplies
high quality Nutritional, Veterinary and Poultry medicines and vaccines.
ACI Agribusiness is having strong partnership with national and international R & D
companies, universities and research institutions. Before introducing any product, it is
elaborately tested in the laboratory and farmers field.
ACI Agribusiness has a large, knowledgeable and highly skilled Field Force provides training
and technical advices to the farmers. ACI is significantly contributing to national food
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security through its Agribusinesses division, which is the leading agricultural integrator of the
country. ACI Agribusinesses is providing complete solution to the farmers need. This division
has five separate SBUs. They are Seeds, Fertilizer, Motors, Crop Care & Public Health, and
Animal Health. Farmers have developed confidence in our products for quality and
economics. Farmers have also come to expect proper knowledge based service from our field
force.
ACI Motors Limited: ACI Agribusinesses has launched a new subsidiary business, ACI
Motors, from 6th November 2007 with an objective to market high quality farm machineries
and light commercial vehicles. ACI Agribusinesses now ensures complete solution to the
farmers with the introduction of the Agrimachineries. ACI Motors are now marketing the
various models of Sonalika tractor which is 3rd leading position in India as well as the fastest
growing brand. It also has introduced high quality Bull Power brand power tiller and mini
combine harvester, Hardy Sprayer from China.
It has own sales and service center at Bogra, Comilla, Jessore, and Dinajpur by which ensure
highest quality after sales service, repairs and spare parts. It also provides flexible credit
facilities for farmers for better customer satisfaction and service. ACI Motors are planning to
introduce light commercial vehicles like pickups and mini trucks to support farmers to
carrying agricultural goods. Also, high quality diesel engines and pumps for irrigation
purpose will be offered in the near future. This business shows considerable promise in
contributing to the agricultural productivity of Bangladesh.
About ACI Fertilizer: Fertilizers play the most important role in increasing crop yields.
However, in our country fertilizer marketing and distribution system is poorly organized. The
problem is further accentuated because of the time sensitivity of fertilizer application. ACI
Fertilizer has entered into this business with the intention to improve this sector through their
strong farmer and distribution network and ability to produce and market superior quality
chemicals.
ACI Fertilizer has launched micronutrient fertilizers like Zinc Sulphate, Magnesium
Sulphate, Ammonium Sulphate, Boron, Sulphur 90% and Sulphate of Potash. Those were
imported from China, U.S.A, Canada, Taiwan, Argentina, Saudi Arabia and Turkey.ACI
Fertilizer launched their products under the umbrella brand "Bumper" through integrated
market communication (IMC).
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Micronutrient fertilizers industry is still at its early stages. With increase in yield and
cultivation of hybrid crops, replenishment of nutrients will drive this business. ACI Fertilizer
enters into the basic fertilizer business like TSP, DAP & MOP which will be facilitating this
growth, with a view to enrich our portfolio.
ACI Fertilizer will also be prepared to facilitate this growth, with a view to enrich their
portfolio with supplying Urea fertilizer, Rock Sulphur & Phosphoric Acid to Bangladesh
Chemical Industries Corporation (BCIC) from Russia, Ukraine, and China.
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Product Category
Product Range
a)Micro Nutrient
Magnesium Sulphate
Zinc Sulphate (Hepta Hydrate)
Zinc Sulphate (Mono Hydrate
Chelated Zinc
Boric Acid
Solubor Boron
Sulphur 90%
b) Macro Nutrient
Triple Super Phosphate
Muriate of Potash (MOP)
Sulphate of Potash(SOP)
Ammonium Sulphate
NPKS Mixed Fertilizer
Chemical Fertilizer
c) Liquid Fertilizer
Natures Gift (Liquid Gold)
Organic
Fertilizer
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2.5.1 ACI Formulations Limited: ACI formulation Limited (ACI FL) is a subsidiary of ACI
limited, located at Gazipur in the out skirt of Dhaka. ACI FL manufactures majority of the
products of ACI Strategic Business Limited except for the Pharmaceutical Division. The
factory is equipped with the state of the art facilities for product formulations and process
innovation. These include modern computerized equipment like HPLC and GLC.
2.5.2 Apex Leather Crafts Limited: Apex Leather Craft Limited is a private limited company
incorporated in 2007 with the registrar of Joint Stock Companies, Dhaka Bangladesh Under
companies Act 1994 having 100 %shares by ACI limited.
2.5.3 ACI Salt Limited: ACI Salt was launched in 2005. Within the very short period it has
been enjoying the pride of the Brand Leader. The best in its kind, ACI Salt is vacuum
evaporated, free flowing and properly iodized. It is also very porous and free flowing. Iodine
is coated in every single grain which makes it an essential product for the children; the
absence of right quantity of iodine in their food may cause mental disability to them. ACI Salt
has won the "BEST BRAND OF BANGLADESH AWARD 2008" for unparallel customer
loyalty beating all the brands in Foods & Beverages category.
2.5.4 ACI Pure Flour Limited: ACI Pure Flour Ltd is the largest flour producing company in
Bangladesh delivering cleanest, healthiest and most hygienic flour by adopting state of the art
technology. Coupled with double digit growth and continuously producing pure product make
'Pure' brand a huge success & make it a household product overnight. In a very short time
'Pure' is able to become consumers' morning bell and snatched prestigious second position
overtaking all other players in the market. 'Pure' flour is able to communicate to its
consumers that ACI Pure is synonymous to Purity.
2.5.5 Creative Communication Limited: Creative Communication Ltd. is an integrated
communication firm founded in 2000, staffed by dedicated and pragmatic specialists working
as one team. As a forward-thinking marketing and advertising firm, Creative Communication
Ltd. is a solid partner at both strategic and tactical levels and has developed several
partnerships with the most state-of-the-art players in numerous fields.
2.5.6 ACI Logistics Limited: ACI Logistics Limited is a subsidiary of ACI Limited. The
objective of this subsidiary is to engage in the business of buying, selling, import and export
of agro produces FMCG products and other commodities directly to consumers.
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2.5.7 ACI Godrej Agrovet Private Limited: ACI Godrej Agrovet Private Limited is a joint
venture company formed by a 50:50 stake of ACI Limited, Bangladesh and Godrej Agrovet
Limited, India. The company started its business in Bangladesh at the end of the year 2004
with Poultry Feed. It started Hatchery and Breeding Farm Operations in February 2007. The
Company launched and started selling Fish Feed at the same time. In July 2008, it diversified
its product portfolio and introduced Shrimp Feed and Cattle Feed.
2.5.8 Tetley ACI (Bangladesh) Limited: ACI Ltd also has Joint Venture business with Tetley
Tea of UK in the name of Tetley ACI (Bangladesh) Limited. Tetley produces one of the finest
qualities Tea in various pack sizes, both in laminated pack and tea bags. Tetley tea has
become a household name and demand of the product is very high.
2.5.9 Asian Consumer Care (Pvt.) Ltd: ACI Ltd has Joint Venture with one of the leading
companies of India, Dabur India as Asian Consumer Care Ltd. Dabur has a long range of
food items which is distributed through the channels of ACI Consumer Brands. These
products are very popular in Bangladesh Market. The food items are:
Dabur Honey
Dabur Chawanprush.
Asian Consumer Care (Pvt.) Ltd. also markets the personal care products of Dabur. The
personal care products of Dabur are:
Vatika Shampoo
2.5.10 ACI Consumer Electronics: World renowned electronics company Panasonic and ACI
Limited has joined together to bring the Panasonic Audio Visual products to Bangladeshi
consumers. The association was formally announced on the 16th of April through the
launching ceremony in Bangladesh China Friendship Conference Center. Under this
arrangement with Panasonic regional office in Singapore, ACI Consumer Electronics, a
newly formed division in ACI Consumer Brands SBU will market the Panasonic AV products
in Bangladesh.
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3.1 Strength(s):
Lower production cost through learning curve effect: ACI Fertilizer has gained
learning curve effect in their production process. ACI Fertilizers workers are
experienced in fertilizer production about 10 years average. Due to this reason ACI
Fertilizer could reduce their production cost continuously over the time, still raw
material and other material cost, labor cost has increased during the preceding years.
Vibrant product process life cycle: ACI Fertilizers product process structure is
steamed from the industry evolution. At the early stage ACI Fertilizer produced only a
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little number of chemical fertilizers but now they produces all types of fertilizers as
other competitors in the industry which increase the capacity of production, quality and
finishing of product and also decrease the production cost.
Well decorated factories and warehouses: ACI Fertilizer has more than 19 own
warehouses around the country. All these warehouses are well decorated and have
sophisticated environment, which reduce the customers perceived risk
competitors.
3.2 Weakness:
Lack of proper marketing plan: Proper marketing plan is very much essential for any
specific goal oriented business company. But ACI Fertilizer has no proper marketing
plan. So they cannot measure and control the performance.
Lack of Human Resources plan: An efficient human resource management must have
a human resource plan to estimate the future personnel needs, analyze of supply and
demand of human resources and to formulate the alternative approach to head-off the
personnel imbalance. But ACI Fertilizer has no human resource plan.
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3.3 Opportunity(s):
High entry barrier: The entry barrier of fertilizer industry is high. Because most of
the customers are brand loyal. As the upcoming leader ACI Fertilizer has acquired
economies of scale due to large volume production. Another reason of entry barrier is
ACI Fertilizer and other companies have own distribution channel which is not
accessible for potential entrant. All these issues create high entry barrier, which poses
as opportunity for the existing companies.
Market demands of fertilizer are escalating: Growing demand of the industry reduce
the intensity of rivalry among the existing competitors. The demand of fertilizer
industry in the country is in growing position like below; this growth trend poses as
an opportunity for ACI Fertilizer by decreasing the intensity of rivalry among existing
competitors.
Opportunity to increase price: If the demand is growing the firm has opportunity to
raise price even with the high exit barrier. The relationship between exist barrier and
demand condition is as below:
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3.4 Threat(s):
High bargaining power of Supplier: ACI Fertilizer imports 95% of its raw materials
from foreign countries. So they have high bargaining power, which poses as a threat
for ACI Fertilizer.
Price instability of raw materials: The fertilizer yarn price is so much elastic,
especially in the foreign market. Since ACI Fertilizers 95% raw material is sourced
from foreign so this price elasticity creates threat for ACI Fertilizer.
Currency fluctuation: The exchange rate between domestic currency and US dollar
decreasing (value of taka) day by day. ACI Fertilizer imports 95% raw material. So it
has to pay more dollar than earned dollar. So the decreasing exchange rate poses as a
threat for ACI Fertilizer.
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The challenges being a collaborative strategy of cost leadership, differentiation and price
sensitivity clubbed towards a single goal of making commodity a brand.
4.1.0 About Gypsar:
Chemical fertilizer is one of the key elements which plays a vital role and is recognized as
essential element of crop production by the farmers. The contribution of chemical fertilizer
on the crops yield is about 50-60% in sometimes like hybrid crops cultivation it goes up to
70%.
For better crop production we have need balanced fertilization in crop field. As we know 17
nutritional element is essential for crop production. Where only 3 elements comes from
nature and 10-12 elements required in adding soil for better cultivation. Gypsum fertilizer
contains two nutritional elements one is Sulphur and another is Calcium which is essential for
plant. Gypsum is one of them. Gypsum fertilizer is widely used fertilizer in Bangladesh.
There is huge demand of Gypsum fertilizer in Bangladesh market. Yearly requirement of the
product is about 1.50 Lac MT. If it is possible to promote mineral gypsum as a replacement of
Phospho Gypsum through proper communication, then ACI fertilizer will be able to grave the
market of Phospho Gypsum which will ultimately help them to be more sustainable and
profitable.
4.1.1 Brief Product Information:
Nutrient Contents
Sulphur (S)
: 17 %
Calcium (Ca)
: 23%
Physical condition
: Powder
Moisture
: Maximum 3%
Solubility
: Sparingly soluble
Origin
: Thailand
Dose
Safety
Brand Name
: Gypsar. The brand name has been selected considering the product
common name Gypsum.So that the farmers and traders can easily recall the
brand.
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Packing Materials
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Source: DAE
Rice is the main crop in Bangladesh covering 119.50 lac hectare & Vegetables 7.55 lac
hectare, Potato 4.80 lac hectare, Pulses 7.03 lac hectare, Fruits 6 lac hectare and Oil
Crops 7.38 lac hectare. Rice surface is 70%, Oil Crops 4%, Pulses 4%, Potato 3%, Fruits
4% and Vegetables 4% of the total cultivated land. Farmers mainly use liquid fertilizer in
potato, vegetables and fruits. The use of liquid fertilizer in rice, maize, wheat, oil crops and
other crops is dependent on the crop price & Farmers ROI. So here the main market is
potato, vegetables and fruits. Sub-market is rice, maize, wheat, betel leaf, oil crops, flowers
and other commercial cultivated crops.
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Crop(s)
Volume
Rice
80000 MT
53.33
Potato
20000 MT
13.33
Maize
10000 MT
6.67
Vegetables
20000 MT
13.33
Others
20000 MT
13.33
150000 MT
100 %
Total=
Here, we can see that in phospho gypsum market rice is the main crop covering about 53 %
of total phospho gypsum market. As a replacement of phospho gypsum Gypsar has a huge
opportunity to grab the substantial market like rice, potatoes, and vegetables.
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2009
2010
2011
1. Sheikh
Brothers,Khulna
15000 MT
18000 MT
20000 MT
2.Noapara
Traders,Jessore
20000 MT
22000 MT
25000 MT
18000 MT
20000 MT
10000 MT
4.Joint Trading
,Corp,Jessore
8000 MT
10000 MT
10000 MT
30000 MT
25000 MT
25000 MT
6.Others
25000 MT
25000 MT
35000 MT
116000 MT
120000 MT
125000 MT
2009
2010
2011
1. Square Agro
300 MT
400 MT
500 MT
2.Global Agro
250 MT
400 MT
500 MT
3.Paragon Agro
100 MT
200 MT
4.Surovi Agro
250 MT
350 MT
600 MT
5.Others
100 MT
150 MT
300 MT
900 MT
1400 MT
2100 MT
Total=
Company(s)
Total=
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(In millions)
2009
2010
2011
1. Sheikh
Brothers,Khulna
TK. 48.0
TK. 61.2
TK. 70.0
2.Noapara
Traders,Jessore
TK. 64.0
TK. 74.8
TK. 87.5
TK. 57.6
TK. 68.0
TK. 35.0
4.Joint Trading
,Corp,Jessore
TK. 25.6
TK. 34.0
TK. 35.0
TK. 96.0
TK. 85.0
TK. 87.5
6.Others
TK. 80.0
TK. 85.0
TK. 122.5
TK. 371.2
TK. 408.0
TK. 437.5
Total=
Company(s)
2009
2010
2011
1. Square Agro
TK. 10.50
TK. 14.00
TK. 17.50
2.Global Agro
TK. 5.50
TK. 8.80
TK. 11.00
3.Paragon Agro
TK. 2.80
TK. 5.60
4.Surovi Agro
TK. 5.00
TK. 7.00
TK. 12.00
5.Others
TK. 2.2
TK. 3.3
TK. 6.6
TK. 23.2
TK.35.9
TK. 52.7
Total=
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(In millions)
So it seems mostly that competition is increasing rapidly in mineral gypsum market. Likewise
market is transferring from Phospho gypsum to mineral gypsum.
4.4.0 Foreseeable Market of Gypsar: For 100% replacement of Phospho Gypsum by Mineral
Gypsum total market will be 40000 MT.About 80% farmers are using this product in different
crops especially on rice. Farmers prefer Mineral Gypsum on the basis of following grounds:
Natural Ingredients
No side effects
Less does
Cheaper RM source
Attractive packaging
4.5.2 Weakness:
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Sales of other products may hamper for using the current resource in the field
It may be difficult to keep expected profit in the long term due to commodity product
& high operational cost
4.5.3 Opportunity:
Unorganized competition
4.5.4 Threat(s):
Unstable government subsidy policy
New and easy entry in this product category
Seasonal business
Price sensitivity of the product
Price war among competition
4.5.5 Objective(s):
To grave the market of Phospho Gypsum
To establish the product as an essential input of agriculture to the farmers for more yield
& more benefit
4.5.6 Strategy: ACI fertilizer desires to establish strong brand positioning of Gypsar through
innovative & extensive communication among traders and farmers therefore achieving
positive and steady growth.
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4.6.0 Several Brand Practices of Gypsar: The brand name Gypsar actually is the mineral
gypsum. It supplies Sulphur and Calcium. Phospho Gypsum is industrial by product. Gypsar
is produced directly from mine. The response of Gypsar in crops is quicker than Phospho or
ordinary gypsum. The performance of the product is high. Plants can easily uptake nutrients.
Dose of mineral gypsum is less than Phospho gypsum. Here cost difference is marginal.
4.6.1 Segmentation and Target Market Strategy: For Gypsar ACI fertilizer has segmented its
market based on mainly two segmentation tools:
Geographic segmentation: They divided the market mainly based on three different
geographic regions, likewise north, east and south.
ACI fertilizer has targeted to those farmers initially who are familiar to use
gypsum in their land and seek more benefitted & modernized product.
4.6.2 Positioning of Gypsar: As we know previously that Gypsar is mineral gypsum and
response of Gypsar in crops is faster than phospho or ordinary gypsum, so that ACI Fertilizer
has been positioned the product as Replacement of Phospho Gypsum, Quick Performer
& Cost Saver among the yield conscious farmers in high return crops. In Bengali the
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4.6.5 Brand Strategy: The biggest challenge facing manufacturers today is how to
differentiate their commodity so that their business rises above the commodity market place
to enjoy the margins and premium associated with consumer packaged goods markets.
Therefore the key to the success of marketing commodities in todays market place is an
intense focus on creating true economic value for those customers who are willing to pay for
it and a brand strategy based on product, delivery or service differentiation. At this point we
have previously recognized that ACI fertilizer desires to establish strong brand positioning of
Gypsar through innovative & extensive communication. Likely communication is a critical
ingredient for any brand strategy. For Gypsar ACI Fertilizer is trying to follow actually this
kind of brand strategy model.
Brand Association
Identity + differentiation
Brand knowledge
Favorable attitude
Brand
Brand personality
Identify +Differentiation: Through some unique product features (e.g. no side effects,
natural ingredients) and benefits (e.g. low cost) ACI Fertilizer develop identity in
customers mind and it leads to differentiation.
Brand Knowledge: Through brand association activities, like promotion, advertising etc.
ACI Fertilizer creates Brand knowledge among customers for Gypsar.
Favorable attitude: After developing brand knowledge customers are thinking that
Gypsar is superior to others alike category brands or products. And it develops favorable
attitude in customers mind.
Brand: This favorable attitude leads the customer to purchase Gypsar and become loyal
to this brand.
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4.7.0 Marketing Mix Analysis of Gypsar: A planned mix of the controllable elements of a
products or brands marketing plan commonly termed as 4Ps- product, price, place, and
promotion. These four elements are adjusted until the right combination is found that serves
the needs of the products or brands customers, while generating optimum income. Moreover
it has the direct impact on overall brand practices. Now here I will briefly confer regarding
the marketing mix of Gypsar.
4.7.1 Product: Basically any product or brand has two types of quality one is technical
quality and other is perceived quality. Technical quality is all about products physical quality
like here for Gypsar these are ingredients mix, performance etc. According to technical
quality Gypsar is a higher quality product. Its a replacement of phospho gypsum category. It
increases the efficiency rate. Besides as we know ACI Fertilizer is a subunit of ACI
Agribusiness Division. Most of the products by ACI Fertilizer are the quality one, as
maintaining quality is one of the core value of ACI Ltd.
For perceived quality we mean what customers perception about a products quality. It is all
about brand or image perception. Moreover its very critical to success here for many brands
or products. When marketing communication is active for a product or brand then its
perceived quality is high in customers mind. Marketing communication of Gypsar is not so
much dynamic but brand value is high because of corporate brand image of ACI Ltd. Thats
why its perceived quality is also high.
4.7.2 Price: Pricing is the only part of marketing mix that generates revenue and, besides its
very imperative when you are talking about a brand. However we know many of the pricing
strategy like premium pricing, penetration pricing, economy pricing, price skimming,
competitive pricing etc. Among these ACI fertilizer is following competitive pricing for
Gypsar. It means competitors price serves as an important reference point from which they
set their price.
Basing pricing decisions on how competitors are setting their price, ACI Fertilizer following
above competition pricing because of their substantial competitive advantage in the
marketplace.
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Here figures in below table(s) will make us more comprehend about the pricing strategy of
Gypsar.
Price of Competitors:
Price of Gypsar:
4.7.3 Place: Place is also known as channel, distribution, or intermediary. It is the mechanism
through which goods or services are moved from the manufacturer or service provider to the
user or consumer. When youre talking about brand promise distribution has a large effect on
it, and ultimately which is the vital part of meeting the customers' needs and requirements.
The ACI Fertilizer distributes its products through its own sales centre over the country. The
company maintains strategically located sales centers in nineteen different locations across
the country. It has developed an advanced distribution system through its more than 300
skilled and trained manpower and a large fleet over eighty vehicles.
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ACI Fertilizer sales 45% of its product through its own sales centre over the country, which
are situated in Dhaka, Jessore, Gazipur, Rajshahi, Chittagong and Mymenshingh and so on.
50% products are distributed through dealers and 5% through mail orders. In an addition,
bulk orders are distributed directly from factory or warehouse to the customers point.
The distribution system is capable of handling and delivering any volume of Gypsar within
the promise time .ACI Fertilizer has full control over the distribution channel, since it uses
mostly own channel.
4.7.4 Promotion: It is not enough for a business to have good products sold at attractive
prices. To generate sales and profits, the benefits of products have to be communicated to
customers Promotion includes all of the tools available to the marketers for 'marketing
communication. At present ACI Fertilizer has involved in following kinds of promotional
activities of Gypsar for market communication:
Result Demonstration & Field Day: Result Demonstration is the most effective
communication where a farmer can see the difference of yield. It basically shows the
efficacy of the product on different crops.
Promo Materials (e.g. Mini Poster, Lamp Poster, Banner etc): Mini Poster/Lamp Poster is a
massive scale for effective branding. It creates brand awareness.
Training Program: ACI Fertilizer currently arranging different training program for
selective farmers, stockiest, retailers. Training program for selective farmer, retailer and
stockiest is important for giving understanding to them about the importance of Gypsar
in the crops. It also helps to provide them details about the product information &
technology transfer.
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DAE Meeting: ACI Fertilizer often arrange DAE meeting for DAE officials to provide
them a clear understanding about the product.
Sales promotion: Sales promotion is one of the vital promotional tools, which drives
the sales to upward for short term. ACI Fertilizer also uses sales promotional tools for
the promotion of Gypsar. They basically concentrate on sales promotion with selective
BCIC dealer, stockiest and retailers for selling Gypsar by using the phospho gypsum
selling channel.
Sales
Promotion
Selling to the marketing
Channel
1. Dealer competitions
1. Free Samples
2. Dealer training
2. Price reduction
3. Credit
3. Premium offer
4. Sale or return
5. Promotional gifts
5. Competitions
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Use of Spokespersons: Often the spokespersons are used to reflect the values
represented by the product category and promote the category besides more sensible
when its a commodity brand or product.ACI Fertilizer can endorse some recognized
spokes person to speak about their products and brands. As ACI Fertilizer maintain a
certain quality, so they can endorse with some well recognized people or program in this
field like Mr.Shaikh Siraj and with his very popular television program Mati O
Manush.
Dynamic leadership and goal alignment: In the absence of a unifying business strategy
to deliver differentiation, functions will continue to focus on functional optimization. So
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that higher level of leadership and functional integration is needed for cost cutting and
for successful future brand building.
Brand Managers for Brands: If you have a beautiful house then you also needed a
strong and vigorous security guard!! Likely, when you have some potential brands you
need to manage it with proper personnel. Besides we should keep in mind that managing
commodity brands are very much challenging now a day.ACI fertilizer is badly needed
to recruit some brand personnel for managing its current or future brands.
5.2.0 Conclusion: Agriculture is one of the driving forces of the Bangladesh economy. It
is the dominant economic sector of Bangladesh. Agriculture contributes about 23.50% to
the countrys overall GDP. Among these contributions of crop sector to GDP is 13.44%.
Therefore the magnitude of using fertilizer is increasing day by day.
Private sector firms are playing a pivotal role in this industry. But due to the nature of
product category (as commodity products) and regulatory policy the competition and
other advancement didnt attain that much level. Because of viewing fertilizer as
commodity product and overlooked the nonfunctional feature of the productsdelivery
speeds, after sales service, distribution, pricing, customer servicing, segmentation,
positioning and communication.
Fertilizers play the important role in increasing crop yields. However, in our country
fertilizer marketing and distribution system is poorly organized. The problem is further
accentuated because of the time sensitivity of fertilizer application. ACI Fertilizer has
entered into this business with the intention to improve this sector through their strong
distribution network and ability to produce and market superior quality chemicals and
fertilizer.
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References
Text:
Building, Measuring, and Managing Brand Equity, Strategic Brand Management, Kevine
Lane Keller 3rd edition.
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