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MARKETING TERM PAPER ON ITALIANO

Prepared for:
Mr. Khaled Mahmud
Assistant Professor
Course Instructor: Marketing Theory and Practices

Prepared by:
Group 08
Tanvir Hossain, 56 (53D)
J.m. Aminur Rahim, 03 (53E)
Parag Pal, 04 (53E)
Mohammad Mushfiqur Rahman Khan, 10 (53E)
Saif Hasan, 31 (54D)

Institute of Business Administration

University of Dhaka
November 28, 2015
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Table of Contents
Executive Summary...................................................................................................................v
Introduction................................................................................................................................1
Reason....................................................................................................................................1
Product Description................................................................................................................1
Company Profile of Pran-RFL Group........................................................................................2
Financial Strength..................................................................................................................2
Target Market.............................................................................................................................3
Product Position with Rationale.................................................................................................3
Pricing Strategy Analysis...........................................................................................................5
Distribution Strategy..................................................................................................................6
IMC Strategy..............................................................................................................................7
Product Life Cycle.................................................................................................................7
Marketing Communication Objective....................................................................................7
Budget....................................................................................................................................7
Advertisement Time & Schedule...........................................................................................9
Strategy & Rationale..............................................................................................................9
Competitors..............................................................................................................................11
Sharif Melamine...................................................................................................................11
Diamond Melamine..............................................................................................................11
Bangladesh Melamine..........................................................................................................11

Champion Marketing Strategy.................................................................................................12

Survey Findings...................................................................................................................12
SWOT Analysis....................................................................................................................12
Advertising Strategy.............................................................................................................13
Social Media Campaign.......................................................................................................13
Promotional Activities..........................................................................................................14
Appendix..................................................................................................................................15

Table of Figure

Figure 1: Market Share of Italiano.............................................................................................4

Figure 2: Distribution Network of Italiano................................................................................6
Figure 3: Tagline of Italiano.......................................................................................................7
Figure 4: Expense Allocation of FY 2012-13............................................................................8
Figure 5: Expense Allocation of FY 2013-14............................................................................8
Figure 6: Italiano Logo...............................................................................................................9
Figure 7: Italiano melamine used to create Flowers................................................................10
Figure 8: Italiano Melamine used to create a Bird...................................................................14

Executive Summary

Italiano Melamine is a brand of RFL Plastics, which is a sister concern of the Pran-

RFL group
Italiano is the first to use full color melamine instead of the cream-white color of its
competitors. Italiano differs in terms of health and hygiene as 100% food grade

powder used to make the products

Target Market: Age group-25-50; Family Role-Decision maker; Social Class-Middle

Class, Upper Middle Class; Touch Points-Super-shops, New Market, Schools

The market share for Italiano is around 35%-40%. It is on even ground with Sharif

Melamine, who is the market leader with 40%

The product is positioned as a somewhat deluxe brand in the melamine products
category. The rationale being that this melamine brand gives you a more elegant

design and ceramic look than that of its main competitor (Sharif) at the same price
The pricing strategy of RFL regarding Italiano can be described as competitive
pricing. Italiano tries to match the prices of its products with the one of its primary

competitor, Sharif Melamine

The main distribution drivers from the depots are the Sales Representatives. The SRs
create the demand for the product and maintain supply. All transport is handled

internally
The IMC strategy for Italiano is centered wholly around its tag line, Pure Art. The
message is that Italiano as a melamine brand is so sophisticated that it can be

described as an art form

Italiano has launched in 2012 and has gained significant ground on the market leader.

So from that can infer that it is in its growth stage

Any and all communications regarding Italiano is focused on portraying the brand as
melamine in art form. This can be considered as the primary objective for all
communication

The company is focusing more on marketing in recent times

Tools used in for advertisement are-TV, Billboards, Newspaper, Facebook Page

The rationale is that melamine sculptures will make the Italiano brand synonymous
with art.

The direct and only competitor of Italiano would have to be Sharif Melamine. Sharif
Melamines push strategy has been working. Their market presence is significant and
name recognition is high due to their longevity

Strengths-Strong, unique value proposition, significant market share; WeaknessesLower brand awareness compared to the main competitor, Social media presence is
almost non-existent, No web presence; Opportunities-Melamine market is large,
Ceramic market exists that can be taken over, People are more open to the idea of
using melamine than before; Threats-Sharif are using an effective push strategy using
the channel members

To broaden Italianos horizon, the company can book an advertising spot/ sponsoring
deal with the Hindi-Bangla Channels (Zee Bangla, Star Jolsha). An example of such
exposure can be that a contestant wins an Italiano gift hamper for his/her efforts in a
reality TV show

To target the upper class of the society, Italiano needs to branch out further. The
hygienic advantage of Italiano can be highlighted in the Lifestyle section of Prothom
Alo or Daily Star.

A simple yet effective campaign to launch on Facebook could be to share photos of

created art using the Italiano dishes. The examples are already there on their own page
in the form of a bird and flowers. Let the customers create their own art by arranging
Italiano melamine

Customer promotional activities can be accomplished through sponsoring school

events or having some kind of competition during tiffin hours

For trade promotions, dedicated shelves and special focus on supermarkets, like
Meena Bazaar, Unimart can be an option. Alternatively, RFL Best Buy can be better
advertised to meet the same goal.

Introduction
The product chosen for this report is the Italiano Melamine. It is a brand of RFL Plastics,
which is a sister concern of the Pran-RFL group. The Pran-RFL group is one of the longest
serving local company in Bangladesh, while the Italiano is its first venture in the Melamine
Products sector.

Reason
Italiano Melamine Crockeries is trying to bring a revolution in Bangladeshi Crockeries
Market. Since its launch in 2012, through exponential growth, Italiano is now in a neck and
neck position with the market leader Sharif Melamine. Before its launch, there was almost a
monopoly in the melamine market of Bangladesh. Sharif Melamine was taking the advantage
of lack of competition in the market. They kept on producing the same traditional products
without any kind of variation or product development. Italiano have actually redefined the
idea of melamine products in the consumers mindset with its sophisticated design.
Italiano is also relatively new in the marketplace. It was launched in 2012 and has been in the
market for about 3 years. Our hope was that due its recent market entry, the marketing efforts
for this product will be more in line with the recent marketing techniques that are taught in
our course.

Product Description
Apart from offering the customers a distinct brand, the Italiano focuses primarily on design
quality. The design quality of the melamine products are more contemporary. It is the first to
use full color melamine instead of the cream-white color of its competitors. Italiano differs in
terms of health and hygiene. No Urea is used in its production and the 100% food grade
powder used to make the products are more hygienic compared to its competitors. The
ultimate aim for Italiano is to be an alternative to ceramic, which has an advantage over
melamine with its longer lasting white color. Italiano wants to use its full white color to
achieve that.

Company Profile of Pran-RFL Group

Pran-RFL Group is the Bangladeshi food-products corporation based in Dhaka, Bangladesh.,
founded in 1981. It is the largest food and nutrition company of Bangladesh, It is the largest
exporter of processed agro products with the compliance of HALAL & HACCP to more than
100 countries. Pran started in 1981 as a processors of fruits and vegetables in Bangladesh.
Pran exports to more than 100 countries. RFL diversified its operation into the PVC category
in 1996 and the plastic sector in 2015.
Mission: Improving Livelihood
Vision: Poverty & Hunger are Curses
Aim: To Generate Employment and Earn Dignity & Self Respect for Our Compatriots
through Profitable Enterprises

Financial Strength

Pran is the largest processors of fruits & vegetables in Bangladesh

RFL is the market leader in cast iron, PVC & plastic items
Pran (AMCL) is listed in the DSE as an A category company
EPS of Pran (AMCL) for the last year was 6.93
P/E of Pran (AMCL) for the least year was 31.99

Target Market
We can segregate the market for Italiano using the following variables

Area: Urban, Suburban

Age group: 25-50
Family Role: Decision maker
Social Class: Middle Class, Upper Middle Class
Touch Points: Super-shops, New Market, Schools

Italiano is targeted mainly at the market which is already buying melamine products.
According to the representative at Pran-RFL, the market size is 50-60 crore. Italianos highest
sales come from the suburban area.

Product Position with Rationale

The market share for Italiano is around 35%-40%. It is on even ground with Sharif
Melamine, who is the market leader with 40%. The rest of the market belongs to various
other brands, such as Diamond Melamine and Bangladesh Melamine. These brands do not
offer a direct competition to Italiano. It is to be noted that this data comes from our interview
with the representative of Italiano. During the interview, they concede that Sharif is the
market leader but not by much and quote an even market share for both of them. Their
reasoning was that sometimes Sharif comes out on top in monthly sales and sometimes they
do, so they have no definite number that they can put forward.

Market Share
Others (Diamond, Bangladesh etc.); 20%

Italiano; 40%

Sharif; 40%
Italiano

Sharif

Others (Diamond, Bangladesh etc.)

Figure 1: Market Share of Italiano

The product is positioned as a somewhat deluxe brand in the melamine products category.
The rationale being that this melamine brand gives you a more elegant design and ceramic
look than that of its main competitor (Sharif) at the same price. But compared to other brands
(Diamond, Bangladesh) the price is higher, so it feels more valuable. So the customers think
that they are getting a product due to it being more costly, along with getting better value due
to it being more contemporary in designs and health value.
The rational positioning for the product is that Italiano provides a sophisticated melamine
brand with new, ever updating, contemporary designs at a competitive price.

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Pricing Strategy Analysis

The pricing strategy of Pran-RFL regarding Italiano can be described as competitive pricing.
Italiano tries to match the prices of its products with the one of its primary competitor, Sharif
Melamine.
The dealers profit margin is less compared to that of its lesser competitors, say for example,
Diamond Melamine. So, neither Sharif nor Italiano can afford to go into a price war. If they
increase their price to increase their perceived value, the dealers will flock to the other. If they
decrease their price to start a price war, the dealers will just prefer the other brands as they
can get more margin from them. A comparison between Italiano and Sharif Melamine prices
is shown below-

Italiano

Sharif

11 inch Square Plate

115

12 inch Star Dish

120

10.5 inch round plate

110

11 inch Round Plate

105

Rice Spoon

36

Rice Spoon

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In terms of pricing to across channel levels, the margin goes from 8% to 18%. For example, if
the dealer buys at Tk. 100, the retailers buys at Tk. 108 and sells it to the customers at an
MRP of Tk. 118 or Tk. 120, which is set by Pran-RFL.

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Distribution Strategy
Italiano uses a simple distribution strategy to reach the consumers. Raw materials used in
production are imported. The machinery and printing paper are also foreign in nature. The
production factories are located in Kaliganj, Habiganj and Narsingdi. From there large
transportation trucks are used to distribute the products to depots in various areas of the
country.
The depots act as money depositories as well as product depositories. The main distribution
drivers from this stage are the Sales Representatives. The SRs create the demand for the
product by maintaining communications with the retailers and informing them of any trade or
retail sales promotions. The SRs also make sure supply is met. The retailers directly contact
the SRs to order the product by quantity and the SRs make sure the products are distributed
among the retailers accordingly.
It is to be noted that all the transportation is handled internally by Pran-RFL group. No
outsourcing is used for transport of the products or any other factors involved. Also, Best Buy
outlets throughout Bangladesh also acts as personal retail houses for the company.

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Production House
Raw Materials
Machinery

Depots
Transportation Trucks

Retailers
Sales Representatives help with demand and supply

Customers

Figure 2: Distribution Network of Italiano

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IMC Strategy
The IMC strategy for Italiano is centered wholly around its tag line, Pure Art. The message is
that Italiano as a melamine brand is so sophisticated that it can be described as an art form.

Figure 3: Tagline of Italiano

Product Life Cycle

Italiano has launched in 2012 and has gained significant ground on the market leader. So
from that can infer that it is in its growth stage. The company hopes to catch and perhaps
even surpass the market leader within the next 3 years.

Marketing Communication Objective

Any and all communications regarding Italiano is focused on portraying the brand as
melamine in art form. This can be considered as the primary objective for all communication.
For secondary objectives, we can point out that it aims to create a ceramic replacement in the
mind of the consumer.

Budget
The budget for advertising and marketing for the company as a whole is increasing. In
Financial Year 2012-2013, 18% and 21% of total expense allocation was for Marketing
Expenses and Selling & Distribution Expenses respectively. In the following year, 27% and
23% of total expense allocation was for Marketing Expenses and Selling & Distribution
Expenses respectively. This means that the company is focusing more on marketing in recent
times.

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Figure 4: Expense Allocation of FY 2012-13

Figure 5: Expense Allocation of FY 2013-14

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Advertisement Time & Schedule

While we do not have concrete timings of the advertising schedule, when asked the
representatives from the company said that they try to run ads during the evenings when the
heads of the family are home. Tools used in for advertisement are

Television

Billboards

Newspaper

Facebook Page

Strategy & Rationale

Italianos strategy is focused on two things-design and hygiene. The two value propositions
that Italiano brand are

The first color melamine of the country, has modern designs

Is more hygienic, uses 100% food grade

Following this rationale, Italiano has used its melamine in various shapes to advertise its
artistic beauty. The first instance can be found in its logo itself.

Figure 6: Italiano Logo

The middle I of the logo is using different colors to give attention to the fact that this is a
color melamine. To convey its message about its design, Italiano uses its products to create
various pictures-like flowers or birds. The rationale is that these melamine sculptures will
make the Italiano brand synonymous with art.
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Figure 7: Italiano melamine used to create Flowers

We have tried to judge their IMC strategy through a few attributes

Coherence: The message is simple. Pure Art focuses solely on the beauty and
design aspect of Italiano. Italiano is not just a melamine, it is something that elevates
whatever you are serving in the product to higher form. Even the brand name itself,
Italiano tries to be artistic as we often equate Italy as a country of art and beauty.

Consistency: The Pure Art tag is consistently used in all its packaging, its advertising
through commercials and print media.

Effectiveness: The fact that Italiano has reached almost equivalent market share with
Sharif Melamine would give credence to the fact that their strategy is working. They
have also had great sales in the Dhaka International Trade Fair.
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Competitors
There are a few players in the melamine market. The market leader is Sharif Melamine with
Italiano as its closest competitor. Other companies in the mix include Diamond Melamine and
Bangladesh Melamine. But they are very small in stature compared to the top two players.
So, the direct and only competitor of Italiano would have to be Sharif Melamine.

Sharif Melamine
Sharif Melamine has been the market leader for quite some time and have a good relationship
with the wholesale dealers and retailers. They have roughly over 40% of the market share.
Their main competitive advantage is that they are very well known in the market and the
general populace. But they are not innovative in their design and they do not have a distinct
brand, just Sharif Melamine. While the Sharif Melamine name alone has been enough for
the market, Italianos entry meant that Sharif has had to change its strategies. While Italiano
has been focused on offering end customers the modernization of its melamine products,
Sharif has focused on its channels. They have been giving discounts to the wholesalers to
make their product more attractive to them. They are also selling on credit much more than
before to make sure the market is filled with their product.
Sharif Melamines push strategy has been working. Their market presence is significant and
name recognition is high due to their longevity. Italiano hopes that their own significant
financial power combined with their design driven, innovation based strategy will give them
the edge over Sharif.

Diamond Melamine
Diamond Melamine has started its business in 2003. It is a bit pricey compared to the other
two and has low sales. It should be noted that internet presence of Diamond is much higher
than that of Italiano.

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Bangladesh Melamine
Bangladesh Melamine is the cheapest among the brands. It has moderate sales. But brand
awareness seems lower.

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Champion Marketing Strategy

Before delving into creating a marketing strategy for Italiano, we need to identify what the
brand lacks. To determine that, we made a simple SWOT analysis and a consumer survey
regarding awareness.

Survey Findings
The consumer survey in its entirety can be founded in the appendix section. The main
summarized findings are

Respondents are willing to use melamine in their households (71%)

Attributes that the respondents prefer in the product are Quality (74%), Price (51%)

and Design (45%)-in that order

Respondents prefer to be reached by the social media (56%) and Television (31%)
A miniscule portion (9.7%) of the respondents have seen Italianos Facebook page

Based on our observations and the findings from the survey, we have prepared a simple
SWOT analysis to help us identify potential areas of focus.

SWOT Analysis
Strengths

Strong, unique value proposition

Significant market share

Weaknesses

Lower brand awareness compared to the main competitor

Social media presence is almost non-existent
No web presence

Opportunities
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Melamine market is large

Ceramic market exists that can be taken over
People are more open to the idea of using melamine than before

Threats

Sharif are using an effective push strategy using the channel members

Advertising Strategy
Television is still the go to medium for mass marketing and should be a focus for Italiano.
Now-a-days the popularity on Indian Bangla TV Channels such as Zee Bangla, Star Jolsha
etc. have reached an all-time high. The heads of the household are more inclined to watch an
advertisement on these channels during prime time (9pm-11pm) where the dramas and reality
shows are usually broadcast. Pran is already using their financial position to advertise in these
channels, and even sponsoring a few programs. If they want to broaden Italianos horizon,
then they can book am advertising spot/ sponsoring deal. An example of such exposure can
be that a contestant wins an Italiano gift hamper for his/her efforts in a reality TV show.
For newspaper, Italiano can distribute catalogues or coupons through the hawkers. This can
be a good way to reach a large number of the urban population. If Italiano wants to target the
upper class of the society, it needs to branch out further. The hygienic advantage of Italiano
can be highlighted in the Lifestyle section of Prothom Alo or Daily Star.

Social Media Campaign

This is an area where Italiano needs the most improvement. The Facebook page has a measly
277 likes and the last post (at the time of writing) is from September of last year. It is obvious
that the page had started with well intentions, but since then has become a tick-in-the-box
item for the marketing department. If Italiano wants to capture the social media users, they
need to be serious about their presence on Facebook.

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Figure 8: Italiano Melamine used to create a Bird

A simple yet effective campaign to launch on Facebook could be to share photos of created
art using the Italiano dishes. The examples are already there on their own page in the form of
a bird and flowers. Let the customers create their own art by arranging Italiano melamine
crockeries and post them on Facebook with an accompanying hashtag. The best pictures can
be determined by popularity (no. of likes, comments, shares) and the top 10 can be featured
in a newspaper ad/billboard. There can even be a prize like a trip to Coxs Bazar for the
family of the winner.

Promotional Activities
Customer promotional activities can be accomplished through sponsoring school events or
having some kind of competition during tiffin hours. They can start buyer rewards program
they can give free Mugs/Spoons for every bulk purchase. Italiano can run a promotion where
they guarantee that their product will not get discolored and if it does within a timeframe,
they can be returned. They can also partner with a dishwashing brand as a complimentary
product. For sales promotions, dedicated shelves and special focus on supermarkets, like
Meena Bazaar, Unimart can be an option. Alternatively, RFL Best Buy can be better
advertised to meet the same goal. Italiano can also increase their presence in online grocery
stores such as Chaldal.com.

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Appendix
Survey on Italiano: Consumer Awareness
This survey is initiated with a view to crafting a champion marketing strategy for Italiano, the
first ever colored melamine brand in Bangladesh, from the Pran-RFL Group - one of the
biggest local conglomerates, to serve the purpose of the Term-Paper on Market Theory and
Practices course under MBA Program at Institute of Business Administration, University of
Dhaka. The responses will solely be used on academic purposes only.
Disclaimer: Neither the Pran-RFL Group nor the Institute of Business Administration,
University of Dhaka is associated with this survey.
1. Do you know about Italiano?-Yes, No
2. How do you come to know about it?-TV, Radio, Social Media, Billboard, Store, N/A
3. Have you ever seen its TVC?-Yes, No
4. If yes, how often have you seen?-Very often, Frequently, Seldom, Never (saw only once)
5. Did you ever visit Italianos Facebook page?-Yes, No
6. If yes, how often did you visit?-Very often, Frequently, Seldom, Never (saw only once)
7. Have you ever used Italiano?-Yes, No
8. What do you think about Italianos quality & design?-Excellent, Very good, Good,
Average, Bad, N/A
9. What about Italiano's availability in the market?-Available, Average, Not Available
10. What do you think of Italiano's pricing?-High, Medium, Low, N/A

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11. How much do you bank on the loyalty of Pran-RFL Group?-Completely, Partially, Not at
all
12. What measures should be taken to reach you?-TV, Radio, Online Marketing Platform,
Campaign, Social Media
13. Are you willing to use melamine in your daily life?-Yes, No
14. What will be your order of priority in that case (Health Consciousness is the first
priority, apart from that)?-Product Range, Color, Quality, Price, Design
15. The constraints against usage of melamine, arrange in descending order?-Perception,
Price, Status related issue, Quality & Design, Lack of Promotion

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