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Analyzing Promotional Strategies of ACI Pure Salt

Prepared by

Jamil Ahmed

ID No. 10113101103

Intake: 25th BBA Program (Major in Marketing)

Bangladesh University of Business & Technology (BUBT)

Introduction of ACI Pure Salt

Promotional tools are a vital part of a marketing strategy. In this report I have discussed about how the organization is using its promotional tools like TVC, RDC, Billboard, Trade offers and so on. Moreover, I have focused on some important strategies that are effective for boosting up the sales.

ObjectivesThe main objective of the report is to analyze the promotional strategy of ACI Pure Salt. The specific objectives are as follows:– To know the promotional tools that ACI Pure Salt is mostly

using – To know which promotional tools are more effective for

ACI Pure Salt – To recommend some measures against major findings.

Methodology Type of research: Descriptive research is used to conduct the study.

Primary Data: Questionnaire survey is used to collect information from the respondents.

Secondary Data: For the completion of the present study, secondary data has been collected. The main sources of secondary data are:

– Annual Report of ACI. – Website of ACI.

Sampling Plan: ● Population: All the customers of ACI Pure Salt in Dhaka city.

● Sampling frame: No well-structured sampling frame is found.

● Sampling elements: Sampling element is the individual customers in Dhaka city.

● Sampling procedure: Non probability convenience sampling technique is used.

● Sampling size: I have selected a sample of 40 respondents.

● Time period and data collection: I take 20 days from 8th February to 28th February to complete this survey.

Limitations I have focused on some important strategies that are effective for boosting up the sales. To make a report various aspects and experiences are needed. But I have faced some barriers for making a complete and perfect report. These barriers or limitations, which hinder my work, are as follows:•Difficulty in accessing data of its internal operation. •Some information was withheld to retain the confidentiality of the organization. •I was placed for only around 3 months of time & working like a regular employee hindered the opportunity to put the effort for the study. The time spent was not sufficient enough to learn all the activities of the organization properly. Therefore, it was very difficult to carry out the whole analysis.

Topics Overview• ACI Historical Background• Nature of the Job• Different aspects of job performance• Advantages of Market Audit• Objectives of the campaign of ACI salt• Promotional Mix• Push or Pull• Promotion through the Product Life Cycle• Achievement• SWOT Analysis• Questionnaire Analyzing• Major Findings• Conclusion• Recommendations• Bibliography

ACI Historical BackgroundACI 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 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 heritage. The company has diversified into three major Strategic Business Units (SBU’s), which are, Healthcare, Consumer Brands and Agribusiness.

Nature of the Job

Mainly I worked at ACI Limited as a Market Auditor of Consumer Brand (ACI Salt). My supervisor was Assistant Brand Manager Md. Reasat Salam. He supervised my auditing. I went to different retail markets to know about the market share of ACI salt and others salt brand. Moreover, I directly communicated with retailers to monitor the trade price and trade offerings as well as stock of the product. Then, I would submit my audit report to my GSM (General Sales Manager) Md. Zahidul Alam. He instantly would take action to improvise the ACI Salt market share. In a nut shell, I would brief the overall scenario of ACI Salt in different retail markets.

Different aspects of job performance

1. Setting the Objectives and Scope

2. Gathering the Data

3. Preparing and Presenting the Report

Advantages of Market Audit ♦ The audit provides the marketers with an in depth view of the marketing activities that are going around in the concern. It brings out a complete picture of the entire operations of the concern. While revealing the various drawbacks the audit process also leads to efficiency. This process can also be used to lay down an improved marketing plan.

♦ A marketing audit can help a company refine its business practices and improve its productivity and profitability.

♦Marketing audit helps to marketing executives, top management and investors to ensure that they are doing the right things to help drive growth for their organizations.

♦ A marketing audit is a careful examination and evaluation of marketing practices and results. It offers a baseline for performance measurements and a framework for effective business planning to maximize positive external perception and demand generation.

♦ An audit helps the company determine the value of a sale and a sales lead.

♦ There are no permanent "right" answers in marketing. Customers' needs and wants are moving targets, and marketing programs require testing and retesting to find the most profitable formula. A marketing audit is the way to achieve success by providing an interim report card to help the company and their staffs tap into inherent resource.

♦Marketing audits often lead to strategic marketing change.

Objectives of the campaign of ACI Pure Salt

Most Preferred Brand: ACI Pure Salt must maintain its position as the most preferred brand and establish itself as the same among a wider range of consumers.

Driving the category: The category size has to be increased by converting normal salt users to 100% pure vacuum salt users.

Market Share: ACI Salt has to gain market share from the existing players in the vacuum salt industry.

Emotional Appeal: The promotional tools like TVC, Bill Board should be relevant and appeal emotionally to the consumers so that they feel connected with the brand.

Promotional Mix

Promotion has been defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. While implicit communication occurs through the various elements of the marketing mix, most of an organization’s communications with the marketplace take place as part of a carefully planned and controlled promotional program. The basic tools used to accomplish an organization’s communication objectives are often referred to as the promotional mix.

Advertising

Advertising is defined as any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor. Mainly, ACI salt uses a few numbers of non- personal components like, TVC, Newspapers. It is the best known and most widely discussed form of promotion, probably because of its pervasiveness. It is also a very important promotional tool, particularly for ACI companies whose products are targeted at mass consumer markets. Furthermore, it is the most cost effective way to reach large numbers of consumers.

Sales promotionSales promotion is generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributor, or the ultimate consumer and can stimulate immediate sales. Sales promotion is generally broken into two major categories: Consumer oriented & Trade oriented activities.

ACI salt mainly uses Trade oriented sales promotion which is targeted toward marketing intermediaries such as wholesalers, distributors, and retailer. Promotional and Merchandising allowances, price deals, sales contests and trade shows are some of the promotional tools used to encourage the trade to stock and promote a company’s product. In recent times salt industries have shifted the emphasis of their promotional strategy from advertising to sales promotion. Reason for the increased emphasis on sales promotion includes declining brand loyalty and increased consumer sensitivity to promotional deals. Another reason is that retailers have become larger and powerful and are demanding more trade promotion support from companies.

Out of home advertising

• Wide coverage of local markets • Frequency • Geographical flexibility • Creativity • Ability to create awareness • Efficiency • Effectiveness • Production capabilities • Timeliness

It includes Billboards, Street furniture, Alternative media and transit. ACI pure salt uses Billboard advertising for some certain reasons.

Push or PullPush

A “push” promotional strategy makes use of ACI Pure Salt's sales force and trade promotion activities to create consumer demand for this product. The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. selling insurance or holidays directly). With this type of strategy, consumer promotions and advertising are the most likely promotional tools.

Pull

A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. ACI Pure Salt did not use this strategy to build its market position.

Promotion through the Product Life Cycle

AchievementACI 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 three times "BEST BRAND OF BANGLADESH AWARD consecutively 2008, 2011 & 2013" for unparalleled customer loyalty beating all the brands in Foods & Beverages category.

SWOT AnalysisStrengths Weakness

- Strong brand image,

- Strong in mass marketing,

- Market leader in big cities & VIP residential areas,

- Easily get distributor as a group of companies,

- Has a strong customer preference in big cities,

- First choice for vacuum salt.

- Irregular delivery system outside the

big cities,

- Conflicts for SBU,

- Weak packaging,

- Weak inventory management system

in depot.

Opportunities Threats

- Opportunity for creating potential markets,

- Introducing new variant of ACI salt,

- Introducing new type of salt.

- Political violence,

- Bargaining power of customer, retailer

is increasing,

- Entry of new competitor.

In purchasing, the consumers use the salt of salt do you use?

Interpretation: From the above graph, it is seen that the various types brand of salt in market. They are- ACI Pure Salt 47%, Molla Super 28%, Confidence Salt 13%, Fresh Salt 9% and Others Salt

9%.

What type of sales promotion is necessary to increase sales volume?

Interpretation: From the above graph. We see that consumer offer 62%, consumer offer 38% and business offer is not

supported.

What type media is necessary for advertising this product?

Interpretation: From the above graph. We see that the advertising media mainly TV 35%, Newspaper 7%, Direct mail 0%, Magazine

12%, Radio 0%, Internet 3% and Outdoor 42%.

Can the promotional activities help to make this brand as number 1 brand?

Interpretation: From the above graph. We see that promotional activities 100% help to make ACI Pure Salt is number 1 brand.

To increase the consumer demand on this product, what kind of development do you suggest?

Interpretation: From the above graph. We see that the performance promotional 52%, sales 26%, distributer 7%,

product quality 0% and pricing 15% need.

Advertising can increase the brand image of ACI Pure Salt

Interpretation: From the above graph, 27% respondents are strongly agreed and 73% respondents are agreed.

Product information is available in online

Interpretation: From the above graph, 60% respondents are strongly agreed and 40% respondents are agreed.

The bill board of this product can easily attract the attention of the customers

Interpretation: From the above graph, 80% respondents are agreed, 12% respondents are neutral and 8% respondents

are disagreed.

The sales people of this product are active to increase sales volume

Interpretation: From the above graph, 5% respondents are strongly agreed, 17% respondents are agreed, 25%

respondents are neutral and 53% respondents are disagreed.

Advertising is the most effective tool to make this brand reputed

Interpretation: From the above graph, 30% respondents are strongly agreed and 70% respondents

are agreed.

I think the brand image of ACI Pure Salt increases day by day using public relation

Interpretation: From the above graph, 57% respondents are strongly agreed and 43% respondents are agreed.

I think the format of packaging is much attractive

Interpretation: From the above graph, 5% respondents are strongly agreed, 65% respondents are agreed, 20% respondents

are neutral and 10% respondents are disagreed.

The brand image of ACI pure salt can easily attract the consumers

Interpretation: From the above graph, 5% respondents are strongly agreed, 58% respondents are agreed, 27%

respondents are neutral and 10% respondents are disagreed.

ACI Pure Salt has developed a good advertising campaign

Interpretation: From the above graph, 20% respondents are agreed, 52 respondents are neutral and 28% respondents are

disagreed.

In maturity stage, the ways of advertising are effective to promote this brand

Interpretation: From the above graph, 75% respondents are agreed, 17% respondents are neutral and 8% respondents are

disagreed.

Media can help to properly use the increase the brand of this salt

Interpretation: From the above graph, 45% respondents are agreed, 35% respondents are neutral and 20% respondents

are disagreed.

The discount offer is made by the company is beneficial for the customers

Interpretation: From the above graph, 20% respondents are agreed, 45% respondents are neutral, 32% respondents are disagreed and 3%

respondents are strongly disagreed.

Social networking websites are helpful to increase the brand image of ACI Pure Salt

Interpretation: From the above graph, 10% respondents are agreed, 77% respondents are neutral and 13% respondents are

disagreed.

Print media advertising is effective to attract the customers

Interpretation: From the above graph, 27% respondents are agreed, 53% respondents are neutral and 20% respondents

are disagreed.

TV advertisements are effective to play an important role in promotional strategy

Interpretation: From the above graph, 40% respondents are agreed, 50% respondents are neutral and 10%

respondents are disagreed.

The free offers is so much effective to increase the sales volume

Interpretation: From the above graph, 12% respondents are strongly agreed, 80% respondents are agreed and 8%

respondents are neutral.

Major Findings• Trade offer is effective to increase the sales volume of ACI Pure Salt. • All the consumers support that the promotional activities help to make this

brand number 1.• Advertising in the main part of promotional strategy to increase the brand

demand of this brand. Because 23% respondents are strongly agreed and 77% agreed with this statement.

• All information of ACI Pure Salt are available in online sector. The respondents are properly agreed with this.

• The customers are so much attractive on billboard presentation. The 80% respondents are agreed with this.

• Most of the consumers support that TV media and outdoor media is most necessary way to promote this product.

• The format of packaging is so much attractive, most of the respondents are agreed.

• I think trade offer is so much effective to increase the sales volume. • The public relation properly depends on the brand image of ACI Pure Salt.• I think the advertising ways of ACI Pure Salt are so much moderate that can

help to increase the market demand of this product.

ConclusionACI was established as the subsidiary of Imperial Chemical Industries (ICI) 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. ACI Limited is one of the leading conglomerates in Bangladesh, with a multinational heritage. ACI Administration Department is the blood circulation for the whole ACI Centre. By this way ACI Administration Department provides all the facilities to the ACI Centre and tries to solve all types of problem that can affect the organization. The company has diversified into four major businesses. FMCG business is one of them. There is innumerous SBU under the FMCG products. ACI pure salt is one of them. It is the first VE salt in Bangladesh. Gradually, VE salt market expanded. It is therefore, Competition became more acute. However, ACI pure salt would keep its brand image and loyalty by assuring its product quality. As a result, it became the market leader in Bangladesh. In a nut shell we can say, If ACI pure salt keep remaining the market leader, its administration system need to be strong at retail markets.

RecommendationsThe analysis marketing strategies require the following recommendations that may help ACI Pure Salt to improve its marketing strategy.

● ACI pure salt is trained the sales people to take a good performance.

● It is necessary to build up Social networking processing for increase the brand popularity.

● It is necessary to advertise on ACI Pure Salt on print media.

● To create a great demand of ACI Pure Salt in market, it is necessary to create discount offer for consumers.

BibliographyBooks•Kotler Philip (2008)-“Principles of Marketing”, 11 th Edition.•Kotler Philip (2011)-“Marketing Management”, 13 th Edition.•Stantion. J. William (1998)-“Fundamental of Marketing”, 3 rd Edition.•Yoram. J. Wind-“Product Policy, Concept, Method and Strategy”.•Boyd Harper. W. Westfall Ralph(1972)-“Marketing Research text and case”, 3rd Edition.•Janis’s.(2007)-“Marketing Planning and Strategy” Published by Thor Son, India.

Annual Reports•Annual Reports of ACI: 2012-2013, 2013-2014.

Others•Google search engine: www.aci-bd,com•Google search engine: www.slideshare.com