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15-24 years
25-54 years
55-64 years
65 years and
over
33.6%
18.8%
37.2%
5.6%
4.8%4.8%
middle age people are most so in Bangladesh so we are not finding any data which
says only about the data of rural area but from this data we can assume that the
scenario is same for rural areas. the.(Bangladesh people,2013)
effectively, radio and television ads are off course the best ways but not through
magazines, internet or newspapers as they cannot read.
Economic Environment: Bangladesh has a huge potential of being economically selfsufficient. But unfortunately, because of various factors, the countrys economy is always
falling behind compared to other developing nations. Among the five income distribution
patterns, Bangladesh falls under type 2 category which is mostly low income. The average
income of the people of Bangladesh is very low. The per capita income has increased in the
recent years from $923 in 2011-2012 to $1044 in 2012-2013 (The Daily Star, 2013). Still, it
is not enough for our economy to move to the category mostly medium income. Though
there can be seen the presence of some rich class people with high incomes, their percentage
is very small and cannot represent the whole economy of Bangladesh. Most of the people
earn very low in this country as the majority of the population lies under the poverty line. At
least 45 million people in Bangladesh, almost one third of the population, live below the
poverty line, and a significant proportion of them live in extreme poverty. The poverty rate is
highest in rural areas, at 36 per cent, compared with 28 per cent in urban However,
Bangladesh belongs to an industrializing economy because, in spite of having a large
number of low earning population, there can be seen the presence of a growing middle class
and new rich class who demand quality goods. But, as a matter of fact, the majority of the
population cannot afford to buy quality or luxury products. Hence, the economy is not a very
lucrative opportunity for the marketers of expensive quality products.
has been lost over the last 30-40 years. In a densely populated country such as Bangladesh,
which is already experiencing high pressure on its natural resource base, a decline in the
availability of agricultural land could have devastating consequences on the countrys ability
to sustainably achieve and maintain self-sufficiency targets, as well as in guaranteeing the
food security of households with agriculturally based livelihoods. Proxy data available from
the Bangladesh Bureau of Statistics shows that between 1985-86 and 2006-07, the net
cropped area decreased by 11% (i.e. from 8770 to 7800 thousand hectares) which represents
an annual average decline by about 0.5%.
Technological:
Percentages of mobile phone user in Bangladesh at rural areas:Some 73 percent of
Bangladesh's rural households use mobile phones, with Chittagong having the highestnumber
of users and Rangpur the lowest. Survey shows that 81.6 percent of households in rural areas
of Chittagong have functioning mobile phones, followed by Khulna at 77.2 percent and
Rajshahi at 74.1 percent. Sylhet, Barisal and Dhaka have above 70 percent of rural families
using mobile phones, while Rangpur has 64.3 percent, the lowest concentration. Percentages
of mobile banking users (B kash) in Bangladesh at rural areas: Survey shows that 32%
people who resides at rural areas in Bangladesh they are using this mobile banking system.
Solar home system users at rural areas: About 2 million remote households and rural
shops have been provided with solar home systems since 2002.Every month, 50,000 solar
home systems are being installed. As of June 30, 2007, a total of 128,813 systems had been
installed in all 64 districts of the country under this program, and more than 600,000 people
in rural areas got access to electricity under the program. Average growth rate of SHSs from
2003 up to December 2012 is around 58% which is among the highest in the world.
Percentages of television users at rural areas: 32% people in rural areas are using
television.
The political and legal environment:In the urban area there is locally a political
head in every village who is Chairman. He has got some lawful powers but without that he
also possesses some extra power from his political parties. In maximum cases the chairman in
a village, do some activate beyond his powers. They also can violate some rules and the law
and order people sometimes supports and favour them as they have got some political power
behind them. The rural people also are afraid of raising their voice against the chairman.
The law and enforce people in a village are mainly the Police and ANSAR. They there are
considered as a very powerful person. They do not act so much hurry in most cases. They do
have a fear possessed in the villagers and rural people. Sometimes they also do have taken
bribe and involved in corruption. They also favour the rich and politically strong people. The
poor people are also sometimes being rejected by them, means that they do not act so much
hurry in most cases. They do have a fear possessed in the villagers and rural people.
Sometimes they also do have taken bribe and involved in corruption. They also favour the
rich and politically strong people. The poor people are also sometimes being rejected by
them, means they do not want to take their complains on account.The general people in a
3
rural area get a very less facilities from the legal structure. In every village there is a local
court which consists of powerful and renowned people which is known as Shalish. They
give punishment according to discussion and in aspect of Islam. This court can be violated by
the powerful people. The general people are also afraid of Fatowa which is sometimes
given by the moulovis. The general people are also not interested of going to the Police with
their complains as it involves a long process and also for the high corruption done by the
Police. They want to solve it locally. And if some cases they have to take it to police station,
they take some help from any legal party people as it increase the importance of their cases.
Socio-cultural analysis:
Most of the people in rural areas are following the religion Islam .Besides, Islam there are
people who are following the religion of Hindu, Buddha and christen. So, the views of
religions play a great role behind the core beliefs of rural people in Bangladesh. Their core
beliefs are like using 100% halal products, eating halal foods, following the rules of religion,
respecting the elder people, following the Islamic rules for banking, celebrating the religious
festivals with new clothes, . So, the core beliefs play a great role in their consumption
process. There are some beliefs in the mind of the rural people which fall under secondary
beliefs like, girls should be married as early as possible, in fact, after their ssc exam, boys
should be involved in earnings or agriculture activities which actually results in high dropouts
from school, women should wear hijab while going out .But these beliefs are subject to
change .Most of the rural men wear lungi, genji ,shirt and women wear salwaar kameez and
sharee. Jari,shari,bhatiali , these traditional songs are in the heart of rural people .They also
like to enjoy jatra shows .And agriculture is their main occupation .
Microenvironment Analysis:
Customer Analysis:
The Need: The need we are addressing here is basically Protection against Mosquito. In
rural area, or in slum there are many people who are suffering from mosquito based disease
like- Malaria, filarial, dengue specially dengue. Every year hundreds of people die in
Bangladesh because of Dengue.
Primary data:
For better consumer analysis, we have gone through some survey. As our target customers all
are not educated, we ask these questions to them.
Q.1 Do you feel mosquito a problem everyday while sleeping?
Analysis: in answer to this question all the people answered in positive that they feel very
disturbing in time of sleeping if mosquito bites.
Consumer
Aerosol
Mosquito coil
Mosquito net
others
Whereas 30% of them think mosquito net is more protective. The rest of others use Dhoop
and other staffs.
15 % of people think coil doesnt works at all and 25% of thinks mosquito nets works well
than mosquito coils.
Consumer
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Q.5 how much you are ready to pay for a mosquito coil?
Analysis: The answer here again was mixed. 40% of people said that they are ready to pay Tk
2-3 for a mosquito coil, 45% said that they are ready to pay 4-5 for a coil, and other 10% said
they are
Consumer
Tk. 2-3
Tk.4-5
Tk.5-6
Tk. 6+
Ready to pay more than 5-6 tk for per coil and 5% said that they are ready to pay more than
6tk for quality product.
Initiator
User/consu
mer
Influencer
Purchase, use
and consumption
Purchaser
Decider
7
Competitor analysis
In order to understand the environment and outperform the competitors, it is our task to
analyze the competitors. There are three steps for analysing competitors:
Identifying
assessing
selecting
Identifying competitors:
For launching mosquito coil first we have to identify our direct and indirect competitors.
8
Direct competitors:comprises of all the brands within the same product category addressing
the same need. For mosquito coils our direct competitors are mortein coil mortien natural
guard mosquito coil , ACI mosquito coil (ACI Hi Power, ACI Super,ACI High Booster and
ACI Black Fighter),elephant king mosquito coil (maladesh international(pvt) ltd gq group ) ,
globe coils, mortien king double power ,mortein max power ,mortein high booster .
Indirect competitors: our indirect competitors are ACI aerosol, mortein power guard flying
insect killer spray, mortein seek and kill sprays , liquid vaporizers, mosquito repellent
creams and lotions , repellent mats ,Good night expert refill, Good night mosquito killer etc
Strategic group:Strategic group is a group of direct competitors who are your closeset rivals
because they follow a similar strategy like you and they target the same customer group. As
we are launching mosquito coil in the rural area in Bangladesh ,we will focus on coils that
will address the needs of rural people . For this reason our brand ,xpel mosquito coil will
belong to that staregic group that will produce quality coil and charge price so that rural
people can afford that coil .ACI hi- booster,mortein power gard booster, aci black
coils,mortein high booster, these brands are also targeting the same customer group (that is
rural people ) and charging lower price ( for example 30 /32 taka per packet consisting of ten
coils ) .So, these brands of aci and mortein and our proposed coil brand xpel mosquito coil
will belong to the same startegic group . other brands of ACI/ mortien do not belong to this
strategic grooup as they are charging premium price (50/60/100 tk per packet) and it is for
the city /civilized peole .
Assesing the competitors :
Direct Competitors target market :
Aci/ mortien coil brnads are actually targetting both rural and civilized people . They have
brannds like ACI super plus high booster , ACI super mosquito coil , jumbo aci super ,
mortien king double power which are actually targeting city people and priced higher . And
ACI hi- booster , aci black coils, mortein high booster , mortein power guard booster these
brands are targetting rural people as they are priced lower (30/32 taka )
Direct competitors strategy :
For the they are all following cost leadership strategy as they are charnging low price .
They have brands which have some differentiation based on color, shape and fragrance. So
In city areas they are following a bit differentiation strategy and for this they are charging
higher price.
Strength of the competitors:
Aci/ mortein
segment.
market
They have storng brand equity (both aci and mortein).Aci is already the leader in
black coils
They didnt introduce any mini pack in rural areas so that rural people can afford
One of the main problems of mosquito coil is they frequently break down while
using it .So it will be a complete wastage of money for the rural people if coils
frequently break down. So competitors are not focusing in this area/ attribute.
Few competitors only ACI/ mortein
To treasure consumer understanding as one of our most valued assets and thereby
exerting every effort to understand consumers' dynamic requirements to enable us in
offering maximum satisfaction.
10
Resources:
Understanding the companys strengths and weaknesses has to do a lot with its resources.
The more the resource, the more the company gets the freedom of pursuing any business
strategy. Square is almost a self-sufficient organization in terms of having resources.
Human resource:
Square recruits highly skilled employees for their administrative jobs which is the major
reason behind their organizational success. They are very careful about their employee
selection as they believe that the success of their various operations and overall company
performance highly depend on the productive contribution of these employees. Furthermore,
they recruit both skilled and semi-skilled workers for the posts at their production unit.
Overall, the organization is capable of providing a good working environment as well as
equal employment opportunities for all types of employees working for Square. Thus the
employees are satisfied with both their job content and job context which results in high
employee morale in the organization. And, all these aspects benefit the organization with
lower employee turnover rate.
Square provides various trainings to its different employees in order to achieve some
objectives. They also measure the effectiveness of the trainings provided to the employees on
regular basis to experience the improvement. Here is a chart showing the training objectives
of Square along with their measurement of efficiency
Objective
Measures
Target
11
department.
2006based on evaluation
100%
Apart from these formal trainings, the employees also receive on job trainings in the
organization. Most departments, especially the production department contain a lot of
repetitive jobs which lets the employees of those departments become specialized in their
respective jobs. The accomplishments of Square as an organization also reflect the
competency and good managerial skills of its managers and supervisors. Square always
encourages entrepreneurial behaviour among its managers so that they can develop their
leadership skills and take different necessary steps to improve various operations and
condition of the workforce.
Supply Chain:
Square has a huge and strong supply chain for each of its materials, whether it is raw
materials or packaging supplies. The reason for the success of the companys production
department is the efficiency of its procurement department. The procurement department
always ensures the smooth continuity of all the supplies required for the productions. The
supply chain department is also very good in sourcing their suppliers. It believes in having
more than one supplier for each type of material. For this reason, they enjoy more bargaining
power with their suppliers that results in lower cost of materials and higher profits.
Financial Resources:
Square Toiletries Ltd. is a self-sustainable organization and they undertake equity financing.
Their main financial resource is their company revenue that they generate by selling different
brands to the market. Every year they make a huge profit that can support their further
12
product development. They reinvest part of their revenues in running various operations of
the organization as well as in the manufacturing and launch of new products. Furthermore,
they have their shareholders from which they also get money. Hence, they do not take any
loans for their operations from any bank or financial institution.
Information Sources:
Nowadays, information is the most powerful and important deciding factor for solving all the
issues in an organization. The more information the company has access to, the better
decision it can make based on those data. Square uses both primary and secondary resources
for developing their database. They have their own research team and department which are
highly professional in collecting information. They conduct different surveys for their
operations regarding market research, competitor analysis, customer analysis etc. They
collect other
information from different professional data providing agencies or marketing research firms
such as A.C Nielson. In that case, Square buys the information from those agencies.
R&D:
Square does possess an R&D department but it is not that efficient in pursuing the
product development program. They are not innovative enough to make unique products.
They basically take a similar product from the market that they want to launch, observe
its formulation and imitate the product. After that they use their own packaging and
brand name to create differences and launch that product into the market.
Offerings:
Square Offers 20 brands with a product mix consisting of various products and their variants
which serve different types of consumers in the market.
Brand
Name
Target
Customer
Benefits
provided by the
products
Jui
Men and
Women of
all ages
Men and
Women of
all ages
Meril
Protectiv
e Care
Brand
Equity
Market
Position
Market
Share
Contributio
n to overall
company
Revenue
Naturally
soft Strong
and healthy hair
Market
Challenger
13%
Tk.
Crore
Market
Leader
70%
13
100
Meril
Baby
Senora
New born
babies and
Children
Banglades
hi Girls
Banglades
hi young
girls
Household
s,
Housewiv
es
Household
s,
Housewiv
es
Women
Freshgel
Families
Meril
Splash
Revive
Chaka
Chamak
White
Plus
Magic
Kool
Families
People
with lower
income
and lower
social
status
Men who
are look
conscious
Xpel
Families
Spring
Families,
offices
Focuses
on Strong
babys delicate
needs
Freshness
Weak
Market
Leader
70%
-
Market
Follower
Skin protection Modera Market
from
sun, te
Follower
Freshness
Washes without Strong Market
harming
the
Challenger
fabric
4%
Provides
whiteness and
shine to the
fabrics
Advance and full
absorbency
protection,
hygiene
Sparkling shine,
refreshing breath
Provides healthy
and strong teeth,
prevents cavities
Removes bad
breath and
strengthens the
teeth
Market
Leader
40%
Strong
Market
Leader
60%
Very
Poor
Strong
Market
Follower
Market
Challenger
2%
Strong
Strong
Market
Challenger
15%
-
Tk. 30 Crore
15%
35%
Market
Leader
Tk. 30 Crore
Tk. 40 Crore
-
Market
Challenger
12%
Tk. 8 Crore
Market
Challenger
15%
Tk. 8 Crore
Sepnil
Zerocal
Select
Plus
Shakti
Saaf
Madina
Household
s, offices,
hospitals
Diabetic
patients
and health
conscious
society
Strong(
Revenu
e grew
from
100%
to
150%)
Men with Healthy hair and Strong
severe
scalp, prevents
dandruff
dandruff
problems
regeneration
Household Provides Hygiene Poor
s
and good smell
Household Removes stains
Poor
s
and lemon
fragrance
Men
Cultural
and Strong
religious identity
Market
Follower
0.3%
-
Market
Leader
35%
-
Market
Follower
Market
Follower
3%
-
Market
Leader
Previous Results:
Square is a very successful company in terms of providing quality products to the market and
generating profits and revenues for itself. In last the five years, the company has been able to
increase its revenue from Tk. 400 Crore to Tk. 500 Crore. Moreover, they experienced an
increase in profit in the last five years from Tk. 15 Crore to Tk. 20 Crore. This shows that
they have a strong position in the industry from the financial standpoint.
Business Relation:
Square truly believes in maintaining mutually good terms and profitable long term
relationships with all its stakeholders that directly or indirectly affect its organizational
mission and objectives. The stakeholders include all its investors, shareholders, employees,
suppliers, distributors, media partner, consultants, financial institutions, government agencies,
NGOs and most importantly their customers. They have also developed technical companies
like Cognis (Germany), Uniqema (Malaysia), Clarient (Germany), Symrise (Singapore), IFF
(UK), Firmenich (Singapore), Giavadaun (Singapore), Belle Aire (USA).
15
Key to success:
A deep understanding of consumers, their habits, and product needs.
Capabilities to acquire, develop, and apply technology across STL's broad array of
product categories.
The ability to make "connections" between consumers' wants and what technology
can deliver.
Dedicated to make every effort to understand consumer needs to provide maximum
satisfaction and to achieve market leadership.
Strive to continuously upgrade manufacturing technology and to maintain optimum
level of quality measures in conformity with the international standard ISO 9001:
2008.
Committed to achieve quality objective through continuous employee training and
maintaining congenial working environment.
SWOT Analysis:
Strength:
Company Image:
Square has successfully created a distinct position in the market. Hence, it has a very
strong image as a corporate which affects the consumers purchasing behavior
positively. It has created an image of superior quality and reliable offerings in the
major parts of the market.
Low employee turnover rate:
Square provides its employees with superior working condition, better compensation
packages, equal employment opportunities and opportunities for career development.
For these reasons, the employees are satisfied with their jobs in Square. And, thus,
they hardly leave the organization.
Strong Public Relation:
Square believes in building good relations with the companys various publics by
obtaining favorable publicity, building up a good corporate image, and handling or
heading off unfavorable rumors, stories, and event. Their PR activities include various
press releases, sponsorships, special events, and Web pages.
Strong and huge distribution network:
The distribution networks of square spans to almost all parts of the country. They
have a number of distributers who have reach in all the areas where Squares target
16
consumers exist. Products of square are available in large supermarkets like Agora,
Nondon, Swapno, Meenabazaar etc., every retailer shops in the city, grocery shops
and even in small markets and shops in villages and other rural areas.
Strong Supply Chain:
Squares supply chain department always ensures the continuous availability of all the
materials required for their production and packaging. It keeps the production
operation smooth.
Financial Resource:
Square has sufficient number of financial resources. It has its own investors,
shareholders and also its own money. Moreover, their annual revenue is high enough
to function as back up for their production and various organizational operations.
Their finance department is concerned with achieving their marketing goals.
Quality Products:
No company can survive or grow without having a base of strong quality in their
offerings. It is the ultimate reason for a companys success. Square is very much
concerned with maintaining quality in their products and the profits they earn from
their products are the eventual consequence of maintaining quality.
Effective promotional campaigns:
Most of the promotional campaigns are successful in terms of reaching the target
customers effectively and making the consumers take an action such as searching for
or buying the product. Most of their efforts succeed in raising proper awareness
among the target consumers.
Weakness:
Inefficient R &D:
Square has an R&D department but it is not efficient enough to make innovations in
designing unique products. They basically imitate already established and accepted
products in the market. For this inefficiency of the R&D, they lack uniqueness.
Backdoor Recruitment:
Square sometimes pursues backdoor recruitment policy by hiring employees for their
administrative and operational positions without proper employee assessment. It
might result in recruiting inefficient or incompetent employees which might cause
lower productivity of the overall organization. This might also demotivate the existing
competent employees who can view this as discrimination.
Opportunities:
Mosquito is a very big problem at rural areas in Bangladesh. As its a big problem so there
is a huge opportunity for us to open a new brand under square group and that is XPEL coil.
There is lack of coil brands which are targeted rural people so here we are targeting rural
poor people of Bangladesh and considering this we will price our product XPEL coil which is
affordable by rural people. We are not only focusing on price but also focusing on quality of
our product.
17
Now the reasons why the launch of Xpel coil will be a success in Bangladesh are:
Repeat purchase: we will provide quality product at moderate price so customer will
do repeat purchase.
Positioning: clear positioning and messaging will enhance the brand awareness which
also increase the sales of XPEL coil.
Growth rate: there is lot of potential growth and huge population in rural areas so its
beneficial for our product.
Affordable: we will sell our product at moderate price so that rural people can easily
afford it.
Other customer groups: we will provide quality product at moderate price so not
only rural poor people but also middle class people will also buy our product.
Loyalty: rural people are not so loyal toward a particular brand they mainly think
about the benefit (price) so we think its opportunity for us as a new brand.
Few competitors only ACI/ mortein : Only a few competitors provides us with a
greater opportunity to perform and succeed in the market or else higher competition
could become a threat for us as we are new.
No establishes brand of mini pack coils: No mini pack coils focusing on people
from bottom of the pyramid has been introduced yet so our SKU is a good
opportunity for us to succeed.
We can shift rural people from using other coils and products like dhoop to our
coils at a moderate price.
Everyone requires protection agains mosquitoes (safety issue): People cannot
sleep while mosquito is flying around and biting whether he/she belongs to Economic
class A or Economic class B or they are from economic class D. its all the same to all
level of people. Poor people also wants be secure from disease.
Development of the society: The society now has developed a lot, they are now more
health conscious, so our mosquito coil brand will be able to do good business.
Educate the rural people: The rural people who are using Dhoop for mosquito
protection those are not that effective and also the smoke can harm their health
condition and causing many diseases. So there is a chance to educate these people and
make them use mosquito coils.
Threats:
Threats of our brand:
Other competitors: we have direct and indirect competitors such as mortein coil ,
mortien natural guard mosquito coil , ACI mosquito coil (ACI Hi Power, ACI
Super,ACI High Booster and ACI Black Fighter),elephant king mosquito coil , globe
18
coils, ACI aerosol, liquid vaporizers, mosquito repellent creams and lotions , Good
night mosquito killer etc and these are threats for us .
Customer financial capabilities: though we sell our product at moderate price but
still people of rural areas people sometimes doesnt want to spend even that much of
money.
Careless customers: though day by day rural people become conscious about their
health issues, quality of product but still most of the rural people are not conscious
about their health and even they dont care that much about the quality of a product so
thats threat for us.
Customer education: sometimes its difficult to educate customer how to use the
product.
Channel: MNCs companies distribution channel is so strong and its a big threat for
our brand.
Each strong competitor have several brands:Aci/ mortein both have different
brands which are targeting different market segments . They copetitors surrounder
the market with diffrent catagories of coils for fulfilling the needs of diffrent
customers. Hence, our brand might find it difficult to survive competitng against the
strong established competitors.Competitors also have storng brand equity (both aci
and mortein).Aci is already the leader in black coils and this might give our brand
tough time to survive.
19
Market Segmentation:
We segmented the market in the following way
Bases of
Segmentation
Geographic
Characteristics
Demographic
Age1-13
14-20
21-30
31-40 41-50
50+
GenderMale Femal
e
Income
3,00011,00020,00030,00040,000+
10,000
19,000
29,000
39,000
OccupationStudent
Businessman Job
Farmer Labour
Other
Holder
s
Rural
worker
s
Socioeconomic
(subset of
demographic)
Psychographic
Sec A
Sec B
Lifestyle-
Behavioural
Benefit
Ordinary
Posh/classy
rural lifestyle Lifestyle
Ex-User
Economic
lifestyle
Non-User
Medium User
Heavy User
Extra large Coils which are
coils
strong and
starts working
fast
20
Trendy
urban
lifestyle
Characteristics
Demographic
Age1-13
14-20
21-30
GenderMale Femal
e
Income
3,00011,00010,000
19,000
OccupationStudent
Businessman
Socioeconomic
(subset of
demographic)
Psychographic
Sec A
Sec B
LifestyleHealthy
lifestyle
Sec C
Ordinary
rural lifestyle
31-40
41-50
20,00029000
Job
Holder
Sec D
50+
30,00039,000
Farmer
s
Labour
40,000+
Other
Rural
worker
Sec E
Posh/classy
Lifestyle
Economic
lifestyle
Personality-
Benefit
Trendy
urban
lifestyle
21
Brand Positioning:
Point of difference (POD):
Our pod is that our coil is stronger works faster and better than other coils. We are basically
using the same POD as Xpel spray where they also said their spray is faster stronger and
better working. We are targeting the rural people who basically belongs to the bottom of the pyramid
and fall under the socio economic class SEC D and E. In rural areas there are more mosquitoes
because of the surrounding environment so they need stronger faster and better coils are needed. And
they are also very price sensitive and they shop in a daily basis in smaller quantity because of not
having greater amount of cash in hand all time. Keeping that in mind we are coming up with mini
packet coil.
Desirability (customer): this coil is basically focusing on for the rural people and
in rural areas mosquito related problems are more so they need coil which is stronger and
kills mosquitos faster. Thus it is relevant to consumers.
Competitive Point of Parity Xpel works stronger faster and better and it also has
good fragrance so consumers will have the satisfaction that they are getting the benefits.
Positioning statement:
To consumers belonging to the socio economic class D and E in rural areas of
Differentiation strategy:
Among the five positioning strategies we are utilizing the Product differentiation strategy it
is achieved through two strategies:
Product Quality: our product has the ability to effectively and efficiently address the
need of our consumers as it is stronger and kills mosquitoes better and faster than
other coils.
Product attribute: our coil comes with the feature of lavender fragrance.
Our differential strategies are
Important :our differentiation strategy is important because our coil is stronger
and has the ability to kill mosquitoes faster and better thus it address the need of the
consumers also with a lavender fragrance so it is important to the customers.
Superior: our product quality is stronger, faster and better than other coils so
superior to other competitors.
Value Proposition:
Same for less: we are providing stronger, faster and better coil as our competitors but at
moderate price.
Brand mantras
Brand mantra of this coil is that it is designed to project this coil is stronger, faster and better
than other coils in the market. We designed our brand mantra to be as following:
Brand function (what):this coil provides consumer the benefit of protection from
mosquitoes with a lavender fragrance.
Descriptive modifier (whom): we are proving the benefit to the rural area people who
belongs to section D and E class. And ordinary rural life style and economic lifestyle.
Emotional modifier (How): the coil provides the benefit of protecting the target
consumers by killing the mosquitoes faster and better. Associations are
Stronger, faster and better coil protection from Mosquitoes by killing mosquitoes.
Emotional modifier
Descriptive modifier
Brand function
Kills mosquitoes faster and Rural people belonging Protects from mosquitoes
better
socio economic class sec D
&E
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Different levels of our product: To start with the different level of our product,
first of all, the actual product of our brand is mosquito coil and the core value that our brand
will provide is protection from mosquito and mosquito related diseases. As for the
augmented product level, which are the additional services provided by a company, our
coils will have beautiful lavender fragrance which will lessen the original strong smell of an
ordinary coil, it will start working faster, and will be strong enough. From the consumer
perspective, the expected level can include a mosquito coil which will not break so easily and
work effectively. Our potential level could be even better quality unbreakable coils for
future.
Non-durable product: Our product is mosquito coils and will be classified as nondurable products as one coil will not last for multiple usages.
Convenience product: Among the basic four types of consumer goods, our brand falls
under the category of convenience product. This is because mosquito coils does not cost
much; people buy mosquito coils frequently with minimal purchasing effort and comparison.
So, basically it is kind of a product for which the cost is low and there are only few
differences among the brands.
For mosquito coils, the consumers are most likely to possess a habitual buying behavior.
So, basically it is kind of a product for which the customer involvement is low and there are
only few differences among the brands. Therefore, our task is to build a strong brand image
with promised quality product and mass promotion so that consumers get habituated to our
products and we secure good profits. However, this will be a challenge for us as there are
already competitors in the market and consumers are already habituated to their brand.
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The packaging also facilitates the transportation and protection of the coil. It is
designed in such way that in retail stores the retailer can easily store it without
breaking the coils or damaging.
As our providing it in mini packets so we are using plastic packets but we deliver it to
retailer in a box packaging so that coils dont break down during movement .
We have made our package and then set the logo in a manner that the consumer can
understand which brand product it is and respond.
The package is an aluminum foil which is very attractive to look. In comparative to
our competitor, our packaging is up to mark and really gives a good impression about
our product.
In the top, there is a line drawn, and sign is also given. The consumer just has to
stretch it. It is really very easy to open. This facilitates to use the coil.
Labelling
Labeling of a product is very important as it content information about the product and also
gives information about the product. It also includes the main benefit of the product and
brand positioning. The labeling also includes the batch no., manufacturing date and expiring
date.
Our product includes the product logo in the center of the packet.
In the bottom on right side we have mentioned the service time of the coil.
In the back side we have written about the ingredients that we have used to make the
coil and the address of our factory and office.
In the back on centre we have printed the batch no. price, manufacturing date,
expiring date.
Pricing Strategy:
For Xpel coil, our pricing objective will be to maximize market share (setting a price at
which we can grab more market share). This is because we are planning to cover a wide
market in the rural Bangladesh as we believe higher sales volume would lead to lower cost
per unit and secure higher long run profits.
Our product is designed to basically serve the people from bottom of the pyramid of our
countrywhere the customers are very budget conscious or in other words, very price sensitive.
So we will try our best to serve them with mosquito coil at the reasonable price which will
allow us to grab more market share. Price is the only revenue generating marketing mix, so
setting the right price with appropriate strategies is very crucial. By setting a reasonable price
and providing quality product, we can grab market share from our competitors and also make
consumers who uses other coils and othercategory like dhoop to shift to our brand as it will
not cost them much to move to a better category then dhoop.
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By careful analysis of customers and competitors we decided that we will come up with minipack coils (2 coils in a packet) as rural people will not be able to buy many coils at a once
which most of the other brands offer and for this our prices will be:
We believe this is reasonable enough price to make our target consumers to buy our brand
and also the retailers will have Tk.1 profit only for two coils.
For fulfilling our objectives, i.e. to maximize market share, we decided to use market
penetration pricing strategy as our pricing method. By setting up a large enough production
plant, pricing the product as low and selling it to wide rural markets, we will be able to enjoy
economies of scale and enjoy higher profits in the long run. This method will cause quick
adaption of our brand due to affordable price and discourage new companies to enter in to
this market in the future.
Promotional pricing is very important nowadays to stand out in such a competitive market.
For our brand we decided to undertake special event pricing among the promotional pricing
method. We will set special prices during certain special events like different festivals to
draw in more customers. Also we can provide with
Cash rebates of Tk.2 to consumers if they get any broken coil. These are the only
good promotional pricing methods we find for Xpel Coil because most of the others are not
appropriate for such a low involvement convenience good.
Apart from this we will also provide with promotional allowances to retailers if they support
to promote our product across the rural market. Time-pricing differentiation is also
appropriate Xpel coil. We will sometimes give discounts during the winter and rainy season
when people mostly buys coil. Hence by charging different prices in different times we can
make more profit.
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Channel Strategy:
Square companys factory is situated in pabna .The company
has 170 distributors which are actually third party
distributors. So, company is using indirect channel. From
factory trucks are used to carry all kinds of products to the
distributors all around Bangladesh. .This is the first phase of
the distribution. The company has 400 people in sales force
(which includes sales manager ,sales representatives ,sales
supervisors ,sales people , area manager ).among this sales
force there are sales representatives .They go from one retail
shop to another retail shop. They take orders from the
retails shops , super stores, grocery stores, mudi dokan etc.
first they know the amount of product theses shops need ,
Then these sales representative go to the nearest distributors
to place the order . Then the distributors with the help of
small trucks send these products to those shops and the
deliver those products and take the money for the ordered
amount . .Then the consumers buy the products from retail
shop/grocery store /mudi dokan etc..Among these sales
representatives distributors hire some company sales
representative to make the sales more effective .they are
called dsr/ distributor sales representative. They have a deal with the company that 50% of
the salary of DSR will be paid by the company and rest 50% salary will be paid by the
distributors. Some sales force go to the organizations / institutions for sales purpose (direct
channel ).So this is how the companys distribution channel is very strong .we will use the
existing distribution channel to reduce our cost. Square uses both direct channel and indirect
channel.
Manufacturer
Wholesaler
Retailer
Consumer
We will use squares exiting distribution channel but only indirect channels (selling through
third party intermediaries such as wholesalers and retailers) for distributing mosquito coils in
the rural area. So we are going to use Conventional Marketing Channel system because by
this way will be able to distribute mosquito coil which is a Fast Moving Consumer Good
(FMCG) to rural areas without any problems. We will directly sell our product to the whole
sellers; whole sellers will sell our product to the retailersand finally the retailers will sell the
product to the consumers.
As the mosquito coils are convenience products (Convenience goods are products that are
purchased frequently, immediately, and with minimal purchasing effort and comparison
shopping) we will be using intensive/ widespread/mass distribution in the rural areasso that
rural people can easily access the product and get it easily.
We are going to use pull and push strategies together .During winter/ other seasons when
mosquito increases, our imc campaign will increase which will create demand from
consumers end (pull strategy). But we will make sure that our product is available in those
retail stores of the rural areas during those times. For this we are going to use push strategy
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that is we will give incentives (like reducing the trade price, giving free packs of coils if they
buy in bulk, even giving rewards for buying our products in bulk) for channel members to
stock/shelve the product and sell to consumers
SR
Distributer
Wholesaler
Distributer
Pabna
Factory
Retailer
Distributer
Wholesaler
Distributer
Genera
store
Grocery
shop
Tea
shop
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Message Strategy:
Affective message strategy: in our TVC and RDC we showing a father was
sitting alone tensed and his friend asked him what happened and he replied that his
worried about his children as they are facing mosquito related problem then his friend
take him to shop and shop keeper gives him Xpel coil is strong kills mosquitoes faster
and better so she starts using it. Thus we showing the feeling and emotion of parents
connecting it with our product that after using our coil their family member wont
face problems like before and they will enjoy the lavender fragrance of Xpel coil.
Slice of life: in out TVC and RDC we will show that a father was worried
because of his children due to mosquitoes and his friend meets him and after knowing
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the problem, takes him to the shop and sshop keeper suggests him Xpel. When he
questioned that what is so special about Xpel, the reply was because Xplel coils are
Stronger, Faster and Better and also comes in mini-packs.
Encounter
(Father
worried)
Interaction
(His friend
takes him to
the shop where
Xpel coil was
suggested)
Problem(mosq
uitoes were
causing harm
to his children)
Solution
(xpel coil kills
mosquitoes
faster and better)
Message source:
Credibility of the spoke person or message source affects the receivers acceptance of the
message. Among the five parameters of credibility of the spoke person we are utilizing the
similarity.
Similarity:we will be using a popular model/ celebrity. Thus when consumers will
see that their favorite character is in a similar situation as they are consumers will
remember Xpel brand their favorite spoke person is endorsing.
However, we are not going to stop by only utilizing ATL communication. We will also
utilize Below the Line (BTL) communication. In that case, we can exclusively promote
ourselves to our target consumers only which is rural people. We can do BTL communication
in different ways. We are planning to do sampling to our target market by providing them
free mini packets of our coil. Besides, we will do some PR related marketing and will give
some incentives to our marketing intermediaries and customers.
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3. Advertising:This is a very crucial part of our IMC campaign. Even though advertising is
the traditional way of communication and is exposed to people who are not our target market, still
it is very important to create brand awareness and brand feelings. We will utilize different types
of advertising media for our coil brand Xpel. These are discussed below:
TVC:
Television Commercials are very important because it is the only type of advertising
which has sight, sound and motion altogether. Through TVC, consumers understand the
message very well. As I said earlier about our TVC that we will use cognitive and
affective strategy and executive slice of life which will grab the attention of our target
market and they will also understand our message that Xpel mosquito coil is the cheapest
coil in the market but quality is equal as competitors. Utilizing a good TVC has other
benefits too and that is we will have vast reach and will reach to the knowledge of
millions of customers with one TVC. And as our target customers are rural people so we
will be showing our TVC only in BTV. Also in cinema halls of rural areas during the
breaks we will show our TVC.
RDC:
We will also develop a very catchy Radio Commercial for our brand. Our main focus
while preparing the RDC will be to create an intention for our target customer to know
that our brand is the cheapest brand but quality is equal as our competitors so they will
the benefits of using our product at the cheapest price. So in our RDC we will make sure
that the Brand Name Xpel is mentioned quite a few times and the benefit like it is
stronger and kills mosquioes faster and better is discussed clearly. And will be broad
casting our RDC in Bangladesh Betar only as we are targeting the rural people they only
listen to this radio channel.
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3.Sales Promotions:Among the BTL activities we will also peruse sales promotions,
i.e. short term incentives to encourage purchase of our product. We will do sales promotion
along with advertising because advertisements provide a reason to buy a product where as
sales promotions provides incentives to buy. So, both are very important for success of our
brand. We will provide with promotions to both consumers and retailers.
Trade promotion:
We will provide our retailers with incentives so that they stock more of our product. For this,
we will sometimes offer free packets like but 6 packets (2 coils in each packet) and get one
packet free. Also, occasionally we might reduce a bit the Trade price so encourage retailers
purchase our coils.
Consumer Promotion:
We will also provide consumers with consumer promotions to encourage them to buy our
brand for the first time or more often. For this, we can provide customers with discounts or
very occasionally give one coil extra at the same price, etc. we will distribute free samples in
slum areas and rural areas
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4. Buzz Marketing:
In order to make our consumers more aware of our product which is new and make our brand
popular, we will do buzz marketing with three stages: inoculation, incubation, infection. Buzz
can ideally occur when consumers will truly like our brand and spread positive Word of
Mouth.
Apart from that we will sponsor individuals to promote our brand. We will offer those
individuals with incentives/rewards for the support of our brand. These individuals will be
basically those who are influential in the rural areas and with strong social circles, so that
people get convinced and buy our coils.
Also, we will ask our own employees to spread positive word of mouth about our produt by
posing as a consumer. However, while doing this we will make sure tat we abide to the
WOMMA guidelines, hence be honest.
We are quite hopeful regarding buzz marketing, as it has been seen that people trust the
opinions of someone rather than paid advertisements so the demand and purchase of our
brand may be higher through buzz marketing.
5. Sponsoring the sign boards: Apart from other BTL activities, we will sponsor
the signboards of small roadside general stores with the picture and logo of our brand along
with the name of the store. By doing this we will make sure that they stock more of our
product so consumers will be bound to buy them and also the signboards will increase
awareness of our coils.
6. Publicity: We will try to educate our rural consumers about how mosquitoes are
harmful for them and to fight with mosquito we are better than other coils and dhoop. So by
educating them we will try to convert the consumer from using dhoop and other coils to our
coil.
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Reference:
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Appendix
Q.1 Do you feel mosquito problem everyday while sleeping?
Q.2 Which thing is more effective against mosquito?
Aerosol
Mosquito coil
Mosquito net
Others
Mosquito coil
Mosquito net
Q.5 How much are you ready to pay for mosquito coils?
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