Marketing Mix (4Ps) Analysis and Competitors Evaluation: A study on Advanced Chemical Industries (ACI)

Submitted By: Shikh Mohammad Asif Uddin 09-15237-3

Submitted To:

Md. Hamidul Islam Principles of Marketing Spring- 2011 Dhaka, Bangladesh

Letter of Transmittal
April 24, 2011

Md. Hamidul Islam Lecturer Course Instructor, Principles of Marketing Faculty of Business Administration, American International University-Bangladesh Subject: Submission of the report for Principles of Marketing

Dear Sir, In order to your response our group has prepared a report PARTEX GROUP INDUSTRIES LIMITED. We have obeyed your guidelines to prepare our concept in all the sequences of marketing. We have done the Marketing Mix (4Ps) Analysis and Competitors Evaluation of the organization. While working on this report we have gained a lot of basic and skills of Marketing processes in reality. We hope this report will come up with the requirements which you have suggested. We therefore, hope that you will accept our project.

Sincerely yours, With Regards, 1. _______________ 2. _______________ 3. _______________

Acknowledgement
We specially thank our faculty Md. Hamidul Islam for giving us this wonderful opportunity and approval to submit a formal report on Advanced Chemical Industries (ACI) Limited.

We must also thank the personnels of ACI who helped us with all the much needed information and data. In that case we want to recall few names Mr. Priyatosh Datta, Director (Quality Assurance) and Mr. Syed Alamgir, Executive Director (Consumer Brands).

Our classmates role in assisting information collection is also acknowledged here. We are thankful to some of our friends and senior students who guided us to prepare the report best.

Last but not the least; we would like to thank all the concerned authorities who have given their valuable time to us. Their cooperation has made this report a reality.

There are some data and information in this report which is not shareable, even which is also not disclose able to any outside people, A special help goes to those people who gave us that data and information.

Executive Summary

It is mandatory to know something about the organization, its core products that it offers to its customers; Thats why; first of all, I made an overview of the organization. We made an overview of the organization, Advanced Chemical Industries (ACI) Limited. Here we tried to focus Organization history, its mission and vision and overall Production, marketing strategy, promotional strategy. After giving whole process of ACI we analyze it and give suggestion we find as lacking.

Introduction

1.1Company Background:
ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the then East Pakistan in 1968. After independence the company has been incorporated in Bangladesh on the 24th of January 1973 as ICI Bangladesh Manufacturers Limited and also as Public Limited Company. This Company also obtained listing with Dhaka Stock Exchange on 28 December, 1976 and its first trading of shares took place on 9 March, 1994. Later on 5 May, 1992, ICI plc divested 70% of its shareholding to local management. Subsequently the company was registered in the name of Advanced Chemical Industries Limited. Listing with Chittagong Stock Exchange was made on 22 October 1995. Advanced Chemical Industries (ACI) Limited is one of the leading conglomerates in Bangladesh, with a multinational image. ACI is a Public Limited Company with a total number of 19,653 shareholders. Among these, there are three foreign and fifty local institutional shareholders. The company has diversified into three major businesses. Besides these, the company has a large list of international associates and partners with various trade and business agreements.

1.2 Company 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 worldclass products, innovative processes and empowered employees to provide the highest level of satisfaction to its customers.

Endeavour 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

1.3 Company Vision:

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.

1.4 Objectives of the Study

Broad Objective:
Analyzing the performance of marketing process on the basis of marketing mix for ACI group.

Specific Objective:

1.5 Limitations:
Though the officer of the organization were so much helpful and cooperative but they were too much busy in their works that they had very little time of giving me detailed information. Another limitation is that we collect much information from Internet, but there have not data availability.

Methodology of the study

2.1 Methodology:
The study is the yield of the knowledge I gained from visiting the organization and collecting information from internet.. It is done by analyzing the qualitative information collected through primary and secondary sources. Majority information was collected from secondary sources.

2.2 Primary Source:

Primary source of information includes conversations and discussion with officers, employees and clients .

2.3 Secondary Source:

Website of the ACI. Different Internet search engine.

Findings and Analysis

3.1 Market segment:

ACI market condition d divided into two parts.

3.1.1Domestic Market:
Being a developing country, the pharmaceutical market and at the same time, the pharmaceutical industry of Bangladesh is growing. In this growing market, ACI has been able to maintain its growth through its innovative marketing strategies. In Bangladesh, ACI introduced the concept of quality management system by being the first company to achieve ISO 9001 certification that reflects its commitment to quality in every aspect of business. ACI covers the health care community of whole Bangladesh based in both urban and rural markets, through its 18 strategically located depots.

3.13.2 International Market:

To fuel the continuous growth of ACI, the company has started exploring international markets. The quality of ACI products, strengthened by its ISO 9001 certification, has brought immediate success in Sri Lanka, Yemen, Myanmar and Vietnam.

3.2 Market offering:

3.2.1 Health Care
ACI formulates and markets a comprehensive range of more than 120 products covering all major therapeutic areas. It also markets world-renowned branded pharmaceutical products like Diprivan, Nolvadex, Accolade, Meronem, Atarax, etc. ACI is actively engaged in introducing newer molecules and Novel Drug Delivery Systems (NDDS) to meet the needs of the future.

3.2.2 Consumer Brand Products:

Home Care Products, Personal Care Products, Oral Care Products and Food & Drinks. ACI owns the Savlon brand in Bangladesh.

3.2.3 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 has a large, knowledgeable and highly skilled Field Force provides training and technical advices to the farmers. ACI is significantly contributing to national food security through its Agribusinesses division, which is the leading agricultural integrator of the country. 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

1. Crop Care & Public Health:

ACI has a complete range of cost effective products which can provide appropriate solutions for the farmers through insecticides, herbicides, and fungicides. We plan to increase our portfolio through the introduction of biotech products.

2. Livestock and Fisheries:

Since there is a short supply of protein in Bangladesh, we expect substantial growth of the animal health industry in the near future. To prepare for this growth, investment has been made for machines to enhance capacity. We plan to launch the entire range of products for aquaculture, consisting of water sanitation, pond preparation, nutritional and medicinal products. To expand the existing business we will introduce hatchery vaccination to make the poultry farming safer and more profitable.

3. Fertilizer:
Balanced fertilizer usage is the key to successful crop production and maintenance of soil health. Cropping intensity in our country is very high and consequently the soil fertility status is declining day by day. Fertilizers play the most important role in increasing crop yields. However, fertilizer marketing and distribution system is poorly organized. ACI Fertilizer has entered into this business with the intention to improve this sector through our strong farmer.

4. Cropex:
ACI Cropex is a remarkable addition to the agricultural advancement in the country. Providing them with technological assistance and advisory services and so on. ACI Cropex division has commenced its business with an aim to preserve and exchange potato, wheat, mustard, pulses, chili, turmeric, coriander etc

5. Seeds:
Seed industry is the most fundamental part of agriculture. The evolution of this industry towards high yielding variety and maintaining genetic diversity will play a critical role in ensuring sustainable increase in the agricultural output of Bangladesh.

3.3 Concepts of Marketing followed by ACI group:

3.3.1Product Concept
It is the idea that consumers will favor products that offer the most quality, performance, and features for which the organization should therefore devote its energy to making continuous improvements Research & Development activities and putting emphasis on customer advices

3.3.2Marketing Concept
It is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do. Customer is the king or queen, so meeting their demand is most important point to emphasis

3.4Integrated Marketing Programs:

Product:
The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes

supporting elements such as warranties, guarantees, and support. Also include quality, features, brand name, color and services.

Pricing:
This refers to the process of setting a price for a product, including discounts. The price need not be monetary; it can simply be what is exchanged for the product or services, e.g. time, energy, or attention. Methods of setting prices optimally are in the domain of pricing science. Also include price list, payment period, credit terms and allowances.

Placement (or distribution):

refers to how the product gets to the customer; for example, point-of-sale placement or retailing. This third P has also sometimes been called Place, referring to the channel by which a product or service is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold in can affect sales. Also include inventory, transport, coverage and channel.

Promotion:
This includes advertising, sales promotion, publicity, and personal selling. Branding refers to the various methods of promoting the product, brand, or company. Also include sales promotion, advertising, sales force and public relations.

3.5 List Business Portfolio (SBUs) of the organization and evaluate the SBUs by BCG Matrix
The business portfolio is the combination of businesses and products (SBUs) that make up the company. Individual Product, Brand or Business unit of an organization can be considered as Strategic Business Units (SBU).Each SBU have separate mission, objectives and that gives owned units of a company.

EVALUATION OF SBUS BY BCG MATRIX (CATEGORY OF THEIR PRODUCTS, BUSINESS OR SUBSIDIARIES)

Category of their Products (ACI Group Furniture and Food limited)

Stars: Stars are high-growth, high-share business or products. They often need heavy investment to finance their