INDUSTRIAL TOUR REPORT

ON

MARKETING PRACTICE OF ABUL

KHAIR CONSUMER PRODUCTS

LTD.

DEPARTMENT OF MARKETING

UNIVERSITY OF CHITTAGONG

INDUSTRIAL TOUR REPORT

ON

MARKETING PRACTICE OF ABUL KHAIR CONSMUMER

PRODUCTS LTD. (SNACKS)

PREPARED FOR:

MR. SAYED AHSANUL ALAM

ASSOCIATE PROFESSOR

DEPARTMENT MARKETING

UNIVERSITY OF CHITTAGONG.

PREPARED BY:

SL NO. NAME EXAM ROLL CLASS ROLL

1 MD. NASIR UDDIN 97/229 4515

2 A.Z.M. ALIMOL RAZI 98/83 4494

DEPARTMENT MARKETING

UNIVERSITY OF CHITTAGONG.

LIST OF CONTENTS

Page No.

CHAPTER ONE

Introduction

Rational of the study

Objective of the study

Research methodology

Limitation of the study

Background of consumer products (Snacks)

Chapter Two

Company Profile

Abul Khair Consumers Ltd. come into being

Location

Total area of the factory

Country of origin of machinery

Manpower

Environment concern

Risk management

Organizational structure

Infrastructural facilities

Production process

CHAPTER THREE

Product Strategy

Meaning of product

Types of product

Consumer of the products

Types of raw materials

Sources of raw materials

Packaging

Size of packet

Weight of packet

Quality maintaining

Branding

Positioning

Positional AKC Ltd.

Resume and development department

CHAPTER FOUR

Pricing Strategy

Introduction

Factors affecting pricing

Pricing approaches

Pricing strategy

Pricing objective

Price adjustment strategy

Positional AKC Ltd.

Resume and development department

CHAPTER FIVE

Distribution Strategy

Introduction

Types of channel

Channel flow

Factors to be considered in selecting channel

Channel objective

Channel function

Channel management decisions

Warehouse facility

Trans partition of goods

CHAPTER SIX

Promotion Strategy

Introduction

Promotional objective

Promotional Tools

Promotional Budget

CHAPTER SEVEN

Prospects, Problems and Recommendations

Prospects

Problems

Recommendations

Conclusion.

CHAPTER EIGHT

Reference

Direct Interviews

Questionnaire.

Letter of Transmittal

Dated: April, 2005

To

Lecturer

Department of Marketing,

University of Chittagong.

Chittagong.

Dear Sir,

It is pleasure on our part to submit our industrial tour report on

“Marketing Practice of Abul Khair Consumer Products Ltd.” as a part of

our BBA final examination. Though it is a new experience, we have tried

our level best to gather information through direct visit and interviewing

relevant authorities and to translate our knowledge into writing this

report. Without sincere cooperation and proper guidance of you it was not

possible for us to prepare this report. For this act of kindness we are

greateful to you. Our all effort will be remanded only it could satiety you.

We sincerely hope this report will receive your approval.

Thanking you,

Sincerely yours.

Md. Nasir Uddin

Exam.Roll-97/229

A.Z.M. Alimol Razi

Exam.Roll-98/83

Department of Marketing,

University of Chittagong, Chittagong.

Preface:

Trade and commerce is pivotal point recently incorporated globalization

and liberalization trend. To cope with this increased diversification of

world economy practical knowledge is since-qua-non for a business

learner. With this moto in view the incorporation of industrial tour as a

part of our BBA course has been definitely providing us an extensive

clear idea of a particular field embracing industrial sector. The main

purpose of this industrial tour is to gather practical knowledge on the

systems, procedurey and techniques used in performing jobs related to

different factors of marketing.

The capital under which the tour was made is “Marketing practice of

Abul Khair Consumer Products Ltd.”

During this visit we have tried our best to get knowledge about the

production process and marketing mix functions.

We hope this type of study will contribute to the development of

marketing practices in the market and ensuring quality learning of

marketing.

Acknowledgement:

It is almighty Allah who has enabled us to successfully complete the tour

and make a report. Secondly, we would especially like to express our

gratitude to lecturer, Department of Marketing, University of

Chittagong, who has given us adequate time, valuable suggestions and

guidance for completing the tour and making the report. It is to be

confessed that without her active and cordial co-operation, the

preparation of this report could not have been possible.

Then we would like to extend thanks to lecturer Md. Nasiruddin,

Department of Marketing, University of Chittagong. Shafiul Alam, Sr.

Management traince of Abul Khair group, Imting Alam, Accounts

Manager of Abul Khair Consumer Products Ltd. for their valuable

assistance cooperations.

We are very much indebted to Mr. Belal Ahmed Production manager of

Abul Khair Consumer Products Ltd.

Executive Summary:

This report is the out come of an industrial tour to Abul Khair Consumer

Products Ltd. In prior consumer products specially snacks mere mostly

importad but in the last decade Bangladesh experienced a mentionable

development in consumer product (specially in snacks) industry. Now a

good number of industries are producing many items of snacks with

domestic raumaterials thong import of snacks is still continuing

simultaneously. Abul Khair group took an endevoure to establish a

consumer product (snacks) factory in 2003. it is situated at 277 Baized

Bostami Road, Nasirabad Industrial Area, Chittagong.

It launched it product in to the market first in July 2004 on trial basis and

started mass production in August 2004. It now produces and marketwise

different agro based products like Ch Canacurr, Dalvaga. Badam vaga

etc. It’s estimated area is 3.5 acre (approximately). It is suited in a good

location where all public utilities and communication and transportation

facilities are available.

As a concern sister of Abul Khair Group it enjoys a healthy financial

condition. Sicne Abul Khair Group is a big group in Bangladesh market

so it enjoys huge popularity and get advantages of brand loyalty. More

over it applys almost all marketing practices to be as market leader as

they are in some other product lines.

Besides above mentioned things it has some limitations as infant in this

industry. But it is intenssing vigorous growth rate through the alloption

and practicing of different marketing strategies and techniques.

Contents = = = =

RATIONAL OF THE STUDY

In the present era of globalization and liberalization trade and business is

a most important role player. With the development of trade and

commerce throughout the domestic and international market different

threats and opportunities are prevailing side by side. Like other industries

consumer products (snacks) industry is also witnessing tremendous

development and competition. To ensure the best use of these market

opportunities and meet the market challenges business enterprises need

educated and export business people. Keeping it in view universities have

introduced BBA course comprising industrial tour besides of theoretical

knowledge. The main purpose of this study is to grasp detail knowledge

about marketing practices in consumer products market. Through this

study we have tried to took at the real practices of marketing, tutere

prospects of marketing and problems and solutions related to the

consumer products market.

We hope this study will help institutional learness and businessman to

make best use of marketing practices. So for the development of total

marketing practices the study is very needed and trustful.

These are all the rational of the study.

OBJECTIVE OF THE STUDY

The main objective of the study is to get a field based idea and evaluate

the marketing practices of Abul Khair Consumer Products (Snacks) Ltd.

In the Bangladesh market. Some other auxiliary objectives have been

precisely given below:

1. To gather knowledge about marketing practices of Abul Khair

Consumer Products Ltd.

2. To see the production procedure of Abul Khair Consumer Products

Ltd.

3. To know the products strategy adopted by Abul Khair Consumer

Products Ltd.

4. To know the pricing policies of the enterprise.

5. To know the distribution policies of the industry

6. To look into the promotion policies of the Abul Khair Consumer

Products Ltd.

7. To find out problems, problems.

RESEARCH METHODOLOGY

In order to complete this report we proceeded through a work plan. We

physically visited factory plant and interviewed and discussed with

executive of different level.

The details of the norle plan are furnished below:

Data collection method:

Relevant data for this report have been collected primarily through direct

visit and interviewing different concerned personnel. These interview

were administered by formal and informal discussion. A structured

questionnaire has been used for interviewing concerned executives.

Data Sources:

The information and data for this report have been collected from both

the primary and secondary sources.

Data processing:

Data collected from secondary sources have been processed manually and

qualitative approach has been used through out the study.

LIMITATION OF THE STUDY

We have tried our level best to collect all availavail informtions through

direct visit to the Abul Khair Consumer Products (Snacks) Industry and

interviewing the persons responsible for production and marketing.

Despite that this report is not tree from all limitations. While me were

preparing this report we faced some problems. Which are given below:

1. Authorities are not willing to disclose some confidential

information.

2. Time for the visit is not sufficient.

3. Industry concerned people are too much bury. So they could not

give time as needed.

4. This industry is very young so they could not provide all necessary

information.

5. Lastly, our personal limitations as very first in this type of study

and report making.

BACKGROUND OF CONSUMER PRODUCTS (SNACKS)

Prior to 1990s small enterprise or households were engaged in production

of such products. They produced the products such as Badam vaga,

Chanachur, Dalvaza etc at their home manually and soled to the local

markets. But in1991 Pran group, the first and largest agro-based industry,

started to produce these products using modern machinery and marketise

following modern marketing strategies and policies through out the

country. Their success allured others to come up with the business and

maked interested many large companies to come into the market with

different agro based products. These companies mainly include Dandy

Foods, Al-Amin foods, BD foods, Arku foods, Shah foods etc. These

companies try to buy the farming products from the local market but

because of limited production they are to import from different countries.

In recent days these companies are engaged in cutthroat competition. A

huge amount of capital has been invested in this industry by this time. So

if production of farming can be increased and congenial business

environment prevails in the country, there is huge prospects of this

industry.

Chapter – two

Abul Khair Consumer Products (snacks) come into being

Abul Khair Consumer Products Ltd. is a sisters concern of Abul Khair

Group. It started it’s journey in the first part of June in 2004. It lunched

some products like shah Dal vaga, Shah chanachur, Shah badam vaga etc.

on trial basis in July of the same year. And finally it went for mass

production and mass marketing in august in 2004.

Location: Abul Khair Consumer Products (snacks) Ltd. is located at 277, Baized

Bostami Raod, Nasirabad Industrial Area, Chittagong Considering all

things it is one of the best industrial areas of the country.

TOTAL AREA OF THE FACTORY

Abul Khair Consumer Products (snacks) Ltd. owns and operates its

factory in a plot of land measuring 3 acres (approximately). There are two

units where different products are produced in semi-auto production

process.

Country of origin of machinery

Abul Khair Consumer Products Ltd. imports necessary machineries for

smooth and efficient production from India and Jarman.

Manpower

For smooth and round the clock operation Abul Khair has 15 staff and

150 workers. Their workers and staffs and workers work in 3 shits by

rotation. They do not have any expatriate executive or staff.

Environment concern

They have no recycling process or wastage management process. But

they are seriously concern about the health of the employee. They try to

keep hygienic working environment and ensure medical check up before

and post appointment of employee. Moreover they try to produce

hygienic products.

Risk Management

Abul Khair Consumer (Snacks) Ltd. purchases insurance policy against

all types of probable risks. They seek advices from different experts to

minimize unexpected losses. Moreover they ensure easy access to fires

services and law enforcing agencies to keep the probable losses lower

securing easy entrance.

Organizational Structure

Infrastructural facilities

Factory Manager

Production Manager General Manager

Production Supervisor

Production Supervisor

Accounts Executive

Personnel Executive

Workers Workers

Abul Khair Consumer Products (snacks) Ltd. being set up in an ideal

industrial area in commercial capital city of Bangladesh enjoys all

infrastructural facilities including natural gas, electricity, water supply,

transportation and communication facilities.

Natural Gas

Because of nature of industry it needs uninterrupted gas supply. To meet

the intense demand the factory is linked to national gas supply network.

Electricity

The factory is connected with high power electricity line and gets mostly

uninterrupted electricity. The factory owns a 50 kw stand by diesel

generator to ensure instant power supply when the above mentioned

source is disconnected.

WATER SUPPLY

The factory is connected with city water supply line moreover it has its

own deep tube-well which is sufficient to keep the factory running.

Transportation Facility

Abul Kahir Consumers Ltd is located in Baized Bostami Industrial Area,

which is 15 km distant from Chittagong port. Chittagong Rangamati inter

district road has passed way in front of the factory. So it has easy access

to transportation network for both import and consignment to any other

part of the country or world.

Communication facility

The factory has BTTB connection and it is connected with its corporate

office and all other departments with in the factory through LAN.

Production Process

Production process is not full automatic. It consists of different manual

and auto stages.

Clean up stage:

It is the first stage of production process. Here pulses, nuts are washed

and cleaned up.

Mix up stage:

In the second stage different types of spices and colors are mixed with

cleaned pulses and nuts. In case of fried gram salted and spiced pulses are

powdered and mixed with different types of species and colors.

Frying stage:

Here colored and spiced pulses nuts are fried in automatic machine.

Packaging stage:

In this stage fried snacks are packed up in different sizes of packet and of

different weight with the help of automatic machine.

CHAPTER THREE

PRODUCT STRATEGY

Meaning of product

A product is any thing that is offered to a market for attention,

acquisition, use or consumption that can satisfy a want or need. Snacks

are basically impulse goods people do not think before buying, just after

seeing they by this type of products.

Types of product

Products can be divided into two broads groups based on the types of

consumers which are-

1. Consumer product

2. Industrial product

Snacks are consumer products because these are directly bought and

consumed by the customers.

Consumers of the products

From children to youth all aged people buy and consume these products.

There is no special class of consumers rather ranging from rich to poor all

people consume the products.

Types of raw materials

The following raw materials are used in production of snacks.

i. Pulses

ii. Flowers

iii. Different colors

iv. Different spices

v. Smell.

Sources of raw materials

Raw materials are basically collected from domestic and international

market.

Abul Khair consumers Ltd. Mainly import from

Australia

Canada

India

European countries (Color and smell).

PACKAGING STRATEGYPackaging

Packaging is very important for maintaining quality and attracting the

customers. Sometimes good looking and attracting packet ensures market

success of a product. Abul Khair consumers (Snacks) Ltd. uses High

Density Pole thin (HDP) for maintaining quality.

Size of packet

THESE PRODUCTS ARE PACKED IN DIFFERENT SIZES OF

PACKET

WEIGHT OF PACKET Master bag packet

400 GM

200 GM

100 GM

50 GM

(40 Pieces) 16 KG

16 KG

10 KG

10 KG

Quality maintaining

Abul Khair Consumers (Snaks) Ltd keep vigilant eye upon all thins and

every stage of production. They examine quality at the following stages.

1. Collection of raw materials

2. Different stages of production

3. Hygienic production environment

4. Healthy workers.

5. Packaging (High Density Pole then)

Branding

Perhaps the most distinctive skill of professional marketers is their ability

to create, maintain, protect and enhance brands of its products and

services.

A brand name is a name, term, sign, system or design or a combination of

these intended to identify the goods or services of one seller or group of

sellers and to differentiate them from those of competitors. Abul Khair

Consumers (Snacks) Ltd. has developed brand name with their logo of

group of companies in the following names.

i. Shaad Canachur

ii. Shadd Dalvaza

iii. Shad Badam vaza

iv. Shaad Potato creakers (in the pipeline)

Positioning

Positioning is the act of designing the company’s offering and image to

occupy a distinctive place in the target markets mind. Abul Khair

Consumers (Snacks) Ltd. launched its products into the market in August

of to 2004. From the every start it has been facing tough competion

because some other companies are operating in the market for long time.

But since Abul Khair Group is a renowned group so it holds a strong

position in the markets mind. More over Abul Khair Consumers (Snacks)

Ltd. highly emphasizes on quality and charges comparatively less price

than others. And as a result of these things it has been able to create a

position in the market by they time.

Position of Abul Khair Consumers (Snacks) Ltd.

They think they belong to the middle position in the market. But they

observe their development rate is higher than that of others and they are

hopeful to be market leader in the coming future.

Research and Development

Abul Khair Consumers (Snacks) Ltd. has a separate department with

responsible people for continuing, research and development work. They

are continuously collecting market information and examining the

competitors’ condition. They try to know whether the consumers are

satisfied on not.

CHAPTER FOUR

PRICING STRATEGY

Introduction

The amount of money charged for a product or service or sum of the

values that consumers exchange for the benefits or having or using the

products or services is price. Price is the marketing mix element that

produces revenue but other produce costs. Price is also one of the most

flexible elements. The company boss often sets prices.

Factors effecting pricing decision

A company’s pricing decisions are affected by both internal and external

factors, which are given below:

Internal factors External factors

i Marketing objective Nature of market and demand

ii Marketing mix strategy Competition

iii Costs Other environmental factors (economy, government)

iv Others

Abul khair consumer (Snacks) Ltd. Considers almost all the above

mentioned factors in setting price. AKC mainly focuses on competitors

costs, offers, prices AKC do not fluctuate prices with the change in

demand.

Since some other competitors are operating for long time so pricing is too

much sensitive. But AKC does not compromise quality for keeping price

low . AKC thinks if necessary price will be higher but quality can not be

compromised AKC also considers the internal factors like company’s

profit, different costs which are completely controllable by the top

management.

Pricing approaches

AKC mainly follows competition based pricing though a new company

has few options to follow another pricing method except cost based

pricing method but since some other companies are operating in the

market AKC has to follow competition based pricing method. Despite

these things it thinks of its costs and profits.

Pricing strategy

There are some widely exercised price quality strategy which are shown

in a graph

P

rod

uct

Qu

alit

y

Price

High Medium Low

High 1. Premium

strategy

2. High value

strategy

3. Super value

strategy

Medium 4. Over

charging

strategy

5. Medium

value strategy

6. Good value

strategy

Low 7. Rip-off

strategy

8. False

economy

strategy

9. Economy

strategy

AKC adopts High value strategy because it does not compromise quality

but charge medium price.

Pricing objectivesPricing decisions are often affected by some objective set up earlier by

the top management. A company can pursue any of five following major

objectives through pricing:

i. Survival

ii. Maximum profit

iii. Maximum market share

iv. Maximum market skimming

v. Product quality leadership.

AKC has set up price of its products keeping the following objectives in

view:

i. Survival

ii. Product-quality leadership.

Price adjustment Strategy

A company follows different price adjustment strategies for various

customer differences and changing situations. The main strategies are:

I. Geographical pricing

Geographical pricing means how the company prices its products to

different customers in different locations and countries.

II. Discount pricing

Reducing prices to reward responses such as early payment, purchase

volume, and off-season buying.

III. Discriminatory pricing

Adjusting prices to accommodate differences in customers, products,

locations, and so on.

IV. Promotional pricing

Company can & use several pricing techniques such as loss-leader

pricing, special event pricing, cash rebates, low-interest financing, longer

payment terms, warranties and service contracts, and psychological

discounting to stimulate early purchase or more purchase.

V. Psychological pricing

Adjusting prices for psychological affects. Price says some things about

the product. For example, many customers use price to judge quality.

At present AKC does not exercise any of the price adjustment strategies

mentioned above. It’s pricing strategy is same for all sorts of customers

and for all areas of the country but AKC is thinking following

geographical pricing technique for exporting to middleast market.

CHAPTER FIVE

DESTRIBUTION STRATEGY

In today’s economy many producers do not sell their goods directly to the

final users. Between them stands a set of intermediaries performing a

variety of functions. Marketing channel consists of some interdependent

organizations involved in the process of marking a product or service

available for use or consumption. There are two broad categories of

distribution channel direct and indirect.

AKC uses only indirect channel of distribution to make the product

available for use.

Types of channel

FIRST: ZERO LEVEL CHANNEL

Manufacturer ---------------------------------------> Customer

SECOND: ONE LEVEL CHANNEL

Manufacturer ------> Dealer/Retailer -------->Customer

THIRD: TWO LEVEL CHANNEL

Manufacturer ------> Dealer -------->Retailer--->Customer

FOURTH: THREE LEVEL CHANNEL

Manufacturer--> Dealer-->Whole seller -->Retailer-->Customer

Diagram of channel of distribution is as under:

AKC uses one level channel of distribution

Manufacturer --------> Retailer -------->Customer

AKC has huge number of sales representatives performing the activities

of order taking, product delivering and market promotion through out the

country under the supervision of area sales manager, regional sales

manager and general manager sales. These sales representatives sale the

products to the retailers.

Factors to be considered in selective channel of distribution. 1. End-user considerations

2. Product characteristics

3. Capabilities and resources

4. Functions that need to be performed.

5. Availability and capabilities of intermediaries.

Manufacturer

Dealer

Whole seller

Retailer

Customer

Since AKC uses one level distribution channel and it wants to make its

products available everywhere and sales in small lot and in cash so it does

not consider the things seriously.

Channel objective

The main channel objective of Abul kahir Consumers Ltd is to make the

products available everywhere in the country and maximize sales volume.

Channel functions

A distribution channel moves from producers to customers. It overcomes

the major time, place and possession gaps that separate goods and

services from those who would use them. The channel member of AKC

perform the following functions.

1. Distribution: Retailers distribute the products to the final

customers.

2. Information: Retailers sometimes give important information about

the market conditions.

3. Promotion: channel members sometimes help AKC to promote its

sales volume and build up market image through the participation

of many promotional activities.

4. Matching: Retailers often match the markets needs with the

company’s offerings.

Channel management decision

Abul Khair Consumers Ltd. thinks that channel of distribution plays a

very vital role between producers and customers and perform a variety of

functions. So channel management decision is very important. Channel

management decisions include three things:

1. Selecting channel members

2. Motivating channel members

3. Evaluating channel members.

Top management takes the channel management decision. AKC sells its

products to the retailers directly. This company maintains close relation

with the retailers through continuous communication. Since the retailer is

the only member so there is no channel conflict. A satisfactory relation

existing between AKA and retailers.

Ware house facilities:

The main wave house of AKA is situated in the factory premises but to

cater the market demand quickly it maintains a number of small

warehouses in different areas of the country.

Transportation of goods

Abul Khair Consumer Ltd. Carrys it’s goods to the retailers with their

own covered van. That means it is the company who performs the

transportation activities to create place utility to the customers.

Chapter Six

Promotion Strategy

Introduction :

Modern marketing calls for more than developing a good product, pricing

it attractively and marketing it to the accessible target customers.

Companies communicate with their present and potential customers.

Promotional strategy combines advertising, personal selling, sales

promotion, and public relation. Into a coordinated program for

communicating with buyers and others involved in purchasing decision.

Promotion is expensive. Top management desides the size of promotion

budget and allocates it to the different promotional tools. The major

budgeting methods are objective and task, percent of sales, completive

parity and budgeting model.

Promotional objectives:

Promotion is one of the four major elements of the marketing mix. In

modern marketing system it is very important for developing a good

product, pricing it attractively and making it accessible to the target

customers. Go a company adopts promotional strategy in the light of

some objectives. The objectives AKA has set in for promotional strategy

are following:

1. To create demand

2. To face competition

3. To introduce the products to the market

4. To build up good will.

5. To increase sales volume.

Promotional tools

A company can use any of the following elements to accomplishes its

promotional objectives.

1. Advertising

2. Personal selling

3. Sales promotion

4. Publicity

5. Public relation.

Advertising: Advertising is any paid form of non personal presentation

and promotion of ideas, goods or services by an identified sponsor. It is

one of most important elements of promotion. Advertising is used to

build up to introduce the products, to buid up a long term image, to

trigger quick sales, and to reach numerous geographically dispensed

buyers at a low cost per exposure AKC uses the following media to

advertise their products.

1. New paper

2. Magazine

3. Television channels

4. Sign boards

5. Posture, etc.

6. Sponsor different social and cultural programs.

Personal selling:

Personal selling is an oral presentation in conversation with the

prospective buyers. AKC sales its products to retailers only. AKC has a

huge number of sales officer all one the country to sale personally to the

retailers.

Sales promotion:

Sales promotion consists of short term incentives to encourage punchase

of product. Sales promotion tools include the following things. And AKA

uses different tools in different times.

Consumer promotion Trade promotion Sales force promotion

Samples

Coupons

Cash refund offer

Premium

Free trials

Warranties

Contest

Patronage Awards

Price off

Allowance

Free Goods

Trade shows and

conventions

Sales contests

specially advertising.

Public Relation

AKC maintains good relations with its stack holders, and some

components of the society. AKC participates in some social activities

partially as part of the public reation. It sponsors different social and

cultural programs. It maintains good relations with the governments

different bodies through the office of group of companies.

Publication

AKC has some publications moreover different print media give coverage

on AKC products.

Promotion Budget

One of the heardest marketing decisions a company faces is how much to

sepend on promotion. There are four common methods used to set the

total budget for advertising which are given below:

1. Astordable method

2. Percentage of sales method

3. Competitive parity method

4. Objective and task method

AKC does not follow any definite method for making promotional

budget. It spends a lump sum amount that top management approves to

be spent.

Chapter Seven

Prospects, Problems and Recommendations

Prospects:

Going through the ins and outs of AKC we find some prospects that it

can use for a successful jurny. The prospects are mentioned below:

1. This market is increasing at a increasing rate.

2. Bangladesh: farmers produce different types of farming products

that can meet the snacks industry’s demand for raw materials.

3. People of Bangladesh are gradually inclining to the snacks item

day by day.

4. Since AKC is being patronized by a large group of company so it

enjoys financial strength and brand reputation.

5. Since Abul Kahir group of company is operating in the market for

long time and has a strong channel of distribution so AKC can take

help from its patron.

6. AKC has by this time, achieved a mention morthy development so

if it can restor the growth rate then it will experience a great

success.

Problems

Despite AKC is enjoying many facilities it faces some problems. These

problems may be due to younger one or management policy or market

environment. We can define the problems in the following way.

1. It is facing a ct throat completion from the existing some other

companies and small enterprises.

2. It has to import raw materials sometimes North America, Australia

and other Countries.

3. It has no specific policy for fixing budget for promotional

activities.

4. AKC has no wastage processing units.

5. It does not make annual report formally so it is difficult to see the

trend of growth acutely.

6. It spends less on total promotional activities than that competitors

do.

7. It is not being able to use its full capacity of production that causes

more average cost of production.

8. Finally it is facing some problems as a new industry faces.

Recommendations:

Present market is very competitive and this competition is getting new

shaps and being more and more sharp. So management of a company

must be strategic in making decisions and adopt latest marketing

strategies and policies to survive in the face of this cut throat competition.

If a company fails to do that or does anything unwise then it will be

mostly difficult to survive. After evaluating all things we would like to of

offer AKC the following suggestions to overcome existing problems and

group future opportunities.

1. Customers are very concern about quality. So product quality

should not be compromised for any reason.

2. For future sustainability it should be environment friendly in terms

of hygienic factory environment, hygenity of products, health of

workers etc.

3. Ensuring wastage management that can lead to production of

byproducts.

4. Try to reduce production costs and market price but not at the cost

of low quality.

5. More promotional efforts to ensure the availability of the products

every where in the country.

6. Try to explore foreign market.

7. Develop new items and with new taste.

8. Try to make production process full automatic.

9. Strengthing R and D and market observation.

10.Full support of mother company.

Conclusion

Snacks market of Bangladesh is an rapidly expanding market. Abul Khair

Consumers (Snacks) Ltd has come into the market with strengths

inheritedly but it is facing some problems. From our close observation we

have found some problems besides, we have found tremendous prospects.

Finally we have put some recommendations. Finally we have put some

recommendations in this regard and me think if AKC can follow these

then it will survive satisfactorily in the modern and competitive business

arena.

Chapter Eight:

Appendix

References:

1. By- Gary L. Lelion, Philp Kotler, Seventh Edition.

2. Marketing Management

Philp Kotler, The millennium

3. Strategic marketing

R.M.S Wilson

4. Previous Internship Report

Direct Interview

1. MD. Imtiaze Alam

Accounts Manager

Abul Khair Consumers Ltd.

2. Md. Belal Ahmed

Production Manager

Abul Khair Consumers Ltd.

3. Md. Mizanur Rahman

Assistant General Manager

Abul Khair Consumers Ltd.

QUESTIONNAIRE

Questions about manufacturing Plant

1. Could you tell about the short history of your factory?

2. Could you tell us about ownership of the plant?

3. Where is your factory located?

4. What is the total area of the Plant?

5. What is the organogram of the plant?

6. How many units and machineries in it?

7. What in the country of origin of the machineries?

8. How many employees (executive & staff) work here?

9. Do you have any expatriate executive?

10. Do you think that “ ” is the leading factory in

this line?

11. What are the sources of raw materials?

12. Do you have any wastage processing arrangement for the protection

of environments?

13. Do you ensure hygienic environment for the workers?

14. Do you have any policy to cover losses occurred by any kind of

accident?

15. What are the steps in manufacturing process?

15. Where do you cheek quality of the product?

Questionnaire about 4PS

Questions about product:

1. What is the concept of your product?

2. What types of raw materials are used in production?

3. What are the brand names of your product?

4. Do you think your product is market leader?

5. Who are the users of your product?

6. What are the different sizes and shapes of your product?

7. Do you have R & D Department?

8. What are the sizes of packet of your products?

9. Do not you think that your production plant in polluting the

environment?

10. What are the process to justify the comparative standard of your

product?

11. Do you maintain separate department in the factory?

12. How could you measure the quality of your product?

13. Are your customer satisfied having your products?

14. How do you collect information about customer satisfaction?

Questions about price:

1. What factors do you consider in setting prices?

a. Internet factors:

i. Company’s marketing objectives,

ii. Marketing mix strategies,

iii. Cost,

iv. Organizational consideration,

v. Others, if any

b. External factors:

i. Nature of market demand

ii. Competitors, costs, prices and offers

iii. Other factors, if any.

2. What pricing approaches do you follow?

Cost based pricing

Value based pricing

Competition based pricing

3. Would you follow price adjustment strategies for various customer

groups and in and changing situation?

Discount pricing

Segmented pricing

Psychological pricing

Promotional pricing

Geographical pricing

International pricing

4. Do you change higher price than your competitors?

5. Do you change prestigious price?

6. Do you think that the prices of your products are comparatively low in

terms of quality?

7. Are your customers satisfied at your price?

Questions about Place:

1. What types of channels do you use?

-Direct -Indirect

2.How many channel members do you use to distribute your product?

3. What factors do you consider in selecting channels?

4. Do you think your products are readily available every where in the

market?

5. What types of functions are performed by your channel members?

Information

Idea generation

Promotion

Physical distribution

Financing

6. Is there any conflict among your channel levels?

7. Are you satisfied at the behavior of your channels?

8. Do you have any monitoring cell to look after your channel members?

9. Who does mainly perform the physical distribution of your product? Is

it you or your channel members?

10. Which channel do you prefer most?

11. Is your product exported to abroad?

12. How could you get closer to your customers?

13. How do you gather information about customers feed back?

Questions about Promotion:

1. For promotional activities which method do you follow?

Personal selling

Advertising (which media you use and which are you prefer most)

Publicity

Sales promotion

Public relation.

2. Do you have any discount facility, if so what are those?

3. Do you give any short term incentives?

4. Do you have any advertising agency for better promotional activities?

5. How do your set promotional mix for your product?

6. What are purposes of your promotional activities?

7. What factors do you consider in setting promotional budget?

8. Which promotional budgeting method do you follow?

1. % of sales

2. On available funds

3. Competitive parity

4. Budgeting by task and objectives.

9. Are you involved in any social marketing activities? if so, what are

those?

10. Do you think promotion is an important way to reach customer?

11. What do your management thinks about the promotion of your

product, it is an expenses or an investment?

12. Do you think your current promotional activities are sufficient to

reach all sorts of customers?