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Executive Summary: Orion Salt Limited Is The Company Engaged in Manufacturing and Supplying Premium
Executive Summary: Orion Salt Limited Is The Company Engaged in Manufacturing and Supplying Premium
Executive Summary: Orion Salt Limited Is The Company Engaged in Manufacturing and Supplying Premium
Orion Salt Limited is the company engaged in manufacturing and supplying premium
quality range of iodized salt, common salt and other forms of salts that have industrial as well
as domestic applications.
There is a big iodized salt market in our economy, and this market is growing at an annual
rate of 8%. As the demand for non-branding salts is converting to branded salts, there is a
great opportunity for the branded companies to capture the market with their brand image.
The total yearly market of iodized branded salt is over 500 core Tk. So the company has
decided to capture only 9% of this market for the fiscal year 2008-09. The company has
targeted its markets, branded its products and differentiated its products as per the customers’
demand so that it can satisfy their needs and wants. The company has segmented its salt to
reach the customer affinity group and considered their values, psychograph and their
demands in setting the target market strategies. It has designed its marketing mix exclusively
so that it can compete in the market. Orion salt will implement these marketing strategies into
two processes, the ATL and BTL process.
We are hopeful that if the plan is implemented step by step correctly we are sure that we will
be successful in achieving our goal.
Table of Contents
Page No.
Title page i
Letter of Transmittal ii
Acknowledgement iii
Executive summary IV
Table of Contents V
Chapter One
1.1Introduction 1
1.2 Objective of the study 2
1.3 Methodology 3
1.4Limitation 3
Chapter Two: Situation Analysis
2.1 Situation Analysis 4-5
2.2 ORION Salt 6
2.3 Current Situation: Macro environment 7
2.4 Target Market 8
2.5 PROFILE OF THE TARGET CONSUMER 8-9
2.6 Market Trend 9
2.7 Company Overview 10-12
2.8 Product offering 12
2.9 Positioning 13
2.10 ANALYSIS OF THE COMPETITIVE STRATEGY 13-15
2.11 SWOT ANALYSIS OF ORION SALT 16
Chapter Three: Marketing
Strategy
3.1Marketing Strategy 17
3.2 Value Proposition 18
2
4.3 Marketing Expense Budget 28
Chapter Five
5.1 Controls 29
Chapter -One
1.1Introduction
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Common salt is chemically known as Sodium Chloride (NaCl). The salt is normally
extracted by two methods one most commonly used is by evaporating seawater
and second is through mining. The salt extracted from the second method is
known as mineral rock salt.
Salt carries a long history, in ancient African used cakes of salt as mode of
payment. The World "Salary" has been derived from the Latin world "Salarium"
which originally referred to the direct payment of salt as wages to solders in
Roman Army.
Next to water, salt is the most essential item in human diet. Salt consumption
depends on a variety of factors, e.g. type of staple food consumed by mass
population, dietary habit and climatic conditions etc. In Bangladesh ideal salt
consumption is set by UNICEF at 15g/day/person.
Salt exist on earth in almost unlimited quantities. The ocean alone contain about
40 quadrillion (Million billion) tons. This quantity would suffice to cover the whole
globe with a 36-meter thick salt coat. The salt of underground caverns and the
rock salt in the mountains also stem from the sea. Only a small percentage of
the total quantity of salt produced is processed to table salt.
As said above salt can be obtained from sea, underground or mountains. In cold
country with brief summer, solar evaporation of sea water is not possible. These
countries are therefore mainly depends on rock or underground salt deposits.
But in tropical countries covering whole of Asia, Middle East, Australia and Africa,
bulk of salt comes from the evaporation of seawater.
In 2004-2005 fiscal year expected salt consumption has been estimated as 8 Lac
MT for human consumption, 1.5 Lac MT for Animal & Poultry feed and 2 Lac MT
for Industrial usage. The crude salt in Bangladesh is mainly produced in Cox’s
bazaar zone. Salt in Bangladesh is an import restricted item, only when the
production is hampered due to natural calamities the government allows the
import on controlled and prior approval basis.
What is iodized salt?
Iodized salt is ordinary course or fine salt, which is fortified with very small
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amounts of iodine. A teaspoon of iodized salt is all a person requires in a lifetime,
but because iodine cannot be stored for long periods by the body, small amounts
are needed regularly. The use of iodized salt in our meals is the most cost
effective way of preventing IDD like Goiter, Mental Retardation, and Stunted
Growth etc.
Therefore, if we point specifically the main purpose of our study are as follows,
1.3 Methodology:
5
When we were given this term paper on marketing plan of a new product, the first question
raised in our mind was from where we should start, which type of data, what type of data we
need and from where we would collect them.
Then we selected the company upon which we will make our term paper and we selected
“Orion Salt Ltd.” as our company.
The report is prepared on the extensive use of secondary data. We gathered most of our data
from the following places
Internet
Local grocery stores
1.4 Limitation:
We have tried our best to make the report perfectly. But there may be
some faults in Data and information. But we try our best to give accurate
oblige us thereby.
Chapter -Two
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2.1 Situation Analysis
Overview of iodized Salt Market
Common salt is chemically known as Sodium Chloride (NaCl). The salt is normally
extracted by two methods one most commonly used is by evaporating sea water
and second is through mining. The salt extracted from the second method is
known as mineral rock salt.
In tropical countries covering whole of Asia, Middle East, Australia and Africa,
bulk of salt comes from the evaporation of sea water.
Iodized salt is ordinary course of fine salt, which is fortified with very small
quantities of iodine. A teaspoon of iodized salt is all a person requires in a
lifetime, but because iodine cannot be stored for long periods by the body, small
amounts are needed regularly. The use of iodized salt in our meals is the most
cost effective way of preventing IDD like Goaitre, Mental Retardation, and
Stunted Growth etc.
7
Recent year was the notable for the country’s Edible Salt market. New refining
process, new technology, new type of salt & new pack has given the market wide
range of choice in quality edible salt category. Mollah has long been the market
leader in the packed salt industry; however it is now losing its market share to
the new brands like ORION & Confidence who are offering better quality salt to
the consumers. Confidence launched their vacuum evaporated brand of salt with
heavy media promotion and was able to create good responses among the
consumers.
Edible salt
Non-edible
salt
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Urban
Consumption
Rural
Consumption
In July 2008, ORION Salt was launched in the market. With world class
technology and most modern machineries, ORION Salt is processed through the
most modern vacuum evaporation system which ensures 100% pure, crystal
white, iodized and free flowing Iodized salt. ORION Salt contains iodine as
embedded in its granules; therefore the iodine remains active for much longer
time than ordinary salts.
The comparative features of ORION Salt and other ordinary salts produced
through washing method are shown below:
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2.3 Current Situation: Macro environment
Legal: Orion salt Ltd is a salt manufacturing company registered under the company act 1994. Our
product “Orion Iodized Salt” is certified by BSTI. As per the company act we are bound to follow all
the government laws and business legislation. Our product is totally free from any kinds of harmful
components. We will not involve in any kinds of anti-government and anti-national interest, anti-
social and anti-environment activities. We are following 3 major business legislation--
Government: One of the main purposes of a business is to support the government and we are
continuously doing that.
Ecological: We are producing iodized salt in such away that does not hazard ecological balance. We
are collecting crude salts from such areas that are situated far away from the farmland so that the
crude salt collecting process does not affect the fertility of the farmlands. We are recycling our
garages to make sure that it does not create ecological imbalance.
Buyer motivation and expectation:
Consumer need: We are tried to fulfill the consumer need or expectation by the following—
Motivational factors:
Iodine does not evaporate during the cooking process.
Availability of iodized salt in mini pack.
Manufactured in vacuum processed, without any kind of human touch.
Availability of your salts in everywhere.
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2.4 Target Market:
We have targeted our market by segmenting the total salt market on the basis of demographics,
psychographics, geographic and purchase criteria. We have targeted the following consumer
market….
b. Home makers:
Our traditional home makers getting more educated and health conscious. They are looking for a
quality salt that does not loose its iodine during the cooking process and on which they can rely for
quality. So we have chosen that homemakers segment as our target market.
c. Restaurants:
Restaurants want to have a salt that requires less in amount for cooking and making food.
d. Industrial users:
Industrial users like pharmaceuticals, food and beverage companies etc. require a great amount of salt
to make and process their products.
Demographic profile
Age : 18 years +
Sex : Unisex
Family Life Cycle : Married/ Single
Income : Tk 8000 + above per month
Occupation : Businessmen and Service Holders
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Education : S.S.C and above
Psychographic Profile:
Social Class :Middle, Upper-Middle and Upper.
Life Style :Health conscious, exposed to newspapers, magazines,
radio and.
Behavioral Profile:
Occasions : Regular
Benefits : Get rid of diseases caused from lack of iodine, super
white, free flowing and hygienic.
User Status : Regular User, Potential User
Salt is an ingredient, which we all need to prepare any kind of food and without salt the life of human
being is not complete. So with the growing rate of population the need for salt is growing day by day
and that ensures the salt market has a high growth rate.
People in the country have got health cautious during the last few years and they are preferring the
branded iodized salt for their everyday use. In the last few years the established salt manufacturers
have lost their market shares to new brands like ACI and Confidence. So people are curious about the
new brands and they prefer these brands in their consumption.
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The salt market is changing from the traditional; manually made salts to salts made by using
automated new technologies. So surely a market with great potentiality exists for a new brand like
Orion salt, which is trying to supply crude salt using new technologies within a reasonable price.
Highly pure in its contents, the range has fine granulated particles that are free
from added preservatives, artificial flavors and colors. Our range includes
common salt, industrial salt, refined free flow industrial salt.
Vision
Enrich the quality of life by offering products and services that meet the essential needs of
people.
Mission
To manufacture and distribute good quality edible and industrial salt at reasonable prices and
to carry out / arrange such developments to maintain a lead combating present and future
challenges. Also to take such steps so as to reduce environmental pollution. We shall be the
most respected company in the businesses and geographies we operate in. Our growth and
success will be achieved by:
Enhancing the value we deliver to our customers
Being globally competitive
Improving shareholder value
Commitment to corporate sustainability
Strengthening stakeholder relationships
Providing new and innovative offerings
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Employees are our strength, and we will create an environment that fosters achievement,
learning and teamwork.
Values
Excellence
Integrity
Innovation
Fairness
Our Range
With the aim to satisfactorily cater to the growing salt requirements in the market, we are
specializing in the manufacture of various types of salts that have industrial as well as
domestic applications. Available in different quantity packs, these salts are pure and have fine
granulated particles that is not affected even by high moisture content. Our range includes:
•Common salt
• Industrial salt
• Refined free flow industrial salt
Infrastructure
Plant capacity
The installed capacity of our salt refinery to produce refined free flow iodized salt
is 6.5 tones per hour
Technologies
The technology for manufacturing of refined free flow iodized salt is based on
Vacuum technology that is controlled by experienced technocrats.
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Warehousing Facility
We have a capacious warehouse that can store bulk consignment at same time.
Our products are kept in a controlled atmosphere that is free from moisture and
extreme temperatures. Further, we regularly fumigate our store house to keep it
in hygienic condition and restrict the entry of rodents, insects etc. Our
streamlined warehouse ensures faster and systematic dispatch process.
Our Team
Our team is comprised of professionals who have valuable industrial expertise in
the field of production of salt and chemicals. Over the years, they have mastered
all the manufacturing techniques and are hence able to produce superior quality
salts at minimal time period. Further, our regular training sessions broadens
their industrial knowledge and motivates them to improve their efficiency thus
making themselves competent enough to face the market challenges.
Clientele
Our organization aims towards achieving total customer satisfaction. We have
the required industrial expertise that helps us to supply our products within the
stipulated time frame, irrespective of the quantity ordered. This has resulted in
long list of satisfied clientele that keeps coming back to us for all their salt
requirements.
Being a quality driven company quality is ensured at every stage of manufacturing process.
Our iodized salt is fortified with iodine at levels above the natural state. Our salt is food grade
salt fit for human consumption and contains the prescribed level of iodine. Our salt is
available in moisture proof packs to ensure salty of the salt. Our team experts maintain a
strict vigil on the manufacturing process to ensure that our salt is high in quality and
nutrients.
i) We have packed our salt in different quantities so that it becomes flexible to the buyers to
buy.
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ii) Our salt is packed in a moisture proof packet and we package our salt in three different
color packages.
iii) Our salt does not loose its iodine with 6 months.
iv) Our salt does not evaporate iodine during the cooking process.
We posses salt of the art production unit which is backed by hi-tech machines and latest
technologies. We incorporate the modern production techniques to offer high quality salt and
to make it available at more competitive prices. Our endeavor is fowsed on keeping abreast
with the latest technologies to manufacture salt that has high nutritive value. Our team of
researchers is engaged in the manufacturing high quality salt that is used for both household
and industrial use.
2.9 Positioning:
Orion salt will position itself as the premiere aftermarket of salt industries. It has uses the best
technology from Europe in making the product and has a lower price. it will sell comparatively lower
price with the best quality. It will try t o become a no 1 competitors in coming years in the salt
industries. Our competitive edge is our dominance of high technology and the components we use in
making crude salts. Although there are many salt manufacturer but we are the first in the country to
bring out low sodium salt. We focus on health conscious people and we will attract people by serving
better quality in reasonable price. We will reach with our easy pack to the people of all economic
level to serve iodine. The Orion salt will position itself as
1. Flexible
2. High quality producer
3. Reliable
ACI Salt:
Positioning: ACI has positioned itself as the present market leader with high
quality product.
Confidence Salt:
Positioning: Confidence Salt has positioned itself as the 100% pure iodized salt.
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Main communicated features: Confidence has created a well known brand
name through heavy promotional activities.
MOLLAH Salt:
FRESH Salt:
Madhumati Salt:
Pubali Salt:
Dolfin Salt:
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Growth and Share
Growth Share
40%
35%
30%
25%
Growth Rate
20%
Market Share
15%
10%
5%
0%
MOLLAH Fresh Salt Pubali Salt Dolfin Salt Confidence ACI salt
Salt salt
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2.11 SWOT ANALYSIS OF ORION SALT
STRENGTH WEAKNESS
OPPORTUNITIES THREATS
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Chapter Three
Marketing Strategy
3.1Marketing Strategy
Our target markets present great opportunities for company growth, as our
niche is not at all saturated at this point. We will dominate the iodized salt
market by stressing the quality, keeping up with and integrating technological
advances in salt manufacturing process, and by increasing our market research
and customer service in order to constantly satisfy our markets' needs.
The key to reaching the target market is to make them aware that our
products are available. We need to convince them of the assurance of
quality in manufacturing and ergonomic design.
Our product has a great opportunity for our company growth because we
use the latest technology and have the best manpower. Our slogan is “no
compromise with the quality.” We will focus on the quality based product
with lower price.
The home maker, travelers, and industrial users will be greatly attracted
by our quality products in terms of, lower price, attractive packaging,
helpful marketing personnel as well as transportation facilities for the
industrial users. The key to reaching this market is to make them aware
that our products are available. We do not need to convince them of
anything but the assurance of quality in manufacturing.
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3.2 Value Proposition
Orion Salt gives the people, who care about quality, purity and iodine, a
combination of highest quality salt and latest technology, at a relatively
reasonable price.
The critical issues emerge from the SWOT analysis and review of the market:
The current consumer behavior, attitude and mindset (key insights towards the category, our brand,
and/or competition)
• Some consumers may think that ORION Salt is required in higher
quantities than regular salt; which is opposite to the truth.
• Salt is rather a commodity than a brand. All the brands are almost the
same.
• Not very much aware of the impurities that come with salts as they are
with other food related items.
1. To grow our sales more than two times over during a five-year period,
from 2008 to 2012.
2. To increase contribution margin.
3. Reduce the variable costs per unit.
4. Continue to decrease the fixed costs.
5. Reduce the transportation costs associated with product delivery by 5% by the end of
the first year.
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that we wish to target. Web presence is a natural objective in reaching
appropriate potential customers. The main marketing objectives are….
Our segment definition is of itself strategic. We are intending to satisfy all our target markets.
We have defined the needs and wants of each target market so that we can satisfy those needs
and wants.
For homemakers we have ensured quality product at a reasonable price. To fulfill their
demand we have used the hi-tech technologies that assures that our salt contains appropriate
amount of iodine and our salt does not looses iodine during cooking process. Our salt is free
from all kind of dirt and it is 100% pure.
Our salt contains high NaCl, that's why it requires less in amount than any other salt. That is
how we will fulfill the demand of the restaurants.
Our main strategy at Orion Salt is to position ourselves at the top of the quality
scale, featuring our combination of superb technology and quality raw materials,
for the buyer who wants the best quality regardless of price.
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3.8 Marketing Mix
Our marketing mix depends mainly on the product and product marketing, but we are also
leveraging a lot more in our presence in channels than on our direct national branding. The
channels are the key to our recent growth and our prospects for additional growth.
Product:
Our company offered to the consumers of different sizes of “Orion salt” . We offered 1 kg , ½ kg and
150 grams of salt packet . Most sophisticated offered of our company is 150 G packets which not
available in the market . By spending Tk 3 anyone can buy this salt and we named this packet is
“Easy Pack” . We also use 3 different and attractive colors for packaging .
Pricing Method: To become a successful businessman we must have a good and effective pricing
method so that we can achieve our organizational goal by meeting the customers’ satisfaction. There
are various types of pricing method (cost plus pricing, demand based pricing, competition indexing
etc). For setting a specific selling price we use cost-plus pricing method. Here prices are based on
total cost plus a desired profit.
In preparing to enter the market with a new product, management must decide whether to adopt a
skimming or a penetration pricing strategy. Our management decided that we would follow the
penetration pricing strategy.
Our primary aim of this strategy is to penetrate the mass market immediately and in doing so,
generate substantial sales volume and a large market share.
Promotion
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• Advertising in trade journals;
• Trade shows and conferences;
• Telemarketing;
• Consumer group;
• Customer referrals.
Distribution:
CUSTOMER
The company has its own distribution channel for supplying its product to the customers. The
products are first supplied to the distributor and the distributor supplies the salt to the retailers. Finally
the customers get the salt from the retailers. But if a customer is an industry then it can purchase salt
directly from the distributor.
3.9 Implementation
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For smooth operation and effective use of marketing fund we will appoint an
advertising agency who will deal with whole marketing, promotional and
communication activity.
Annual Fund available for promotion: 3.5 million, which will cover Through The
Line activities (TTL).
OBJECTIVE:
• To communicate core brand value to the target market
• Effective use of marketing fund with highest reach.
STRATEGY:
• Sharpen the thematic campaign through ATL Above the Line activities to
communicate core brand value.
• Drive awareness retention and imagery through BTL Below the Line
activities.
• Continue exploring exciting ways to highlight “Prestigious brand” status.
KEY ACTION POINT
Objective:
• Support to build brand image, awareness reinforcement and product
convenience in exciting and meaningful way.
Role:
• ATL activities will drive active, fun-loving imageries for the brand, while
ensuring brand awareness, brand presence, premium quality and best
brand in the market.
Key Action Plan
• Stress on TV campaign with branded programs.
• Sponsored programs in Radio mainly to reach rural people.
• Commercials in cinema halls before the movie and during intermission.
• Stress on press ad through leading newspapers and magazines.
• Continue PR activities.
Below the Line
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Objective:
• Support to build brand image, to remained awareness and product
convenience in exciting and meaningful way.
Role:
• Enhance brand’s merchandising quality
• Reinforce prestigious brand feelings in and around key urban outlets.
• Support distribution
Key Action Plan
• Ensure present brand merchandising.
• Acquisition of several highest visual sites for billboard and billboard
banner in Dhaka, Chittagong, Sylhet, Khulna & Bogra.
• Arrangement for Bus Branding (10 No.s) and Exclusive Wall Painting
(30,000 sft).
• Standard in store merchandising items with focus on highlighting brand
imageries (sticker-70 Thousand Pcs, dangler- 10 thousand Pcs, Bunting- 5
thousand Pcs)
• Provide branded T Shirt, Cap and Travel Kit to the distributor field force
• Provide 10 thousand branded Key ring to the retailer
• Develop minimum 2000 branded outlet by providing shop sign (tin) and 50
no. of shop sign backlit.
Milestones
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Total PR Budget 2500000
Direct Marketing
Start Date End Date Budget Manager Department
New Distributor
15/8/2008 8/25/2008 1500000
Md. Ali Tavel
Development of retail
5/7/2008 25/7/2008 500000
channel
Chapter Four
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Financials
The financial sate of the company is satisfactory. The Orion salt has the capital of 65 crore Tk
and presently it is targeting a small portion of the market so it didn’t face any kind of financial
problem until now.
Our break-even analysis is based on running costs, the "burn-rate" costs we incur to keep the
business running, not on theoretical fixed costs that would be relevant only if we were
closing. Between payroll, rent, utilities, and basic marketing costs, salaries we think Tk.
46,00,000.00 is a good estimate of fixed costs.
Our assumptions on average unit sales and average per-unit costs depend on averaging. We
don't really need to calculate an exact average, this is close enough to help us understand
what a real break-even point might be.
The essential insight here is that our sales level seems to be running comfortably above
break-even.
Break-even Analysis
Monthly Units Break-even 5,02,733
Assumptions:
Average Per-Unit Revenue 16.00
Average Per-Unit Variable Cost 6.85
Estimated Monthly Fixed Cost 46,00,000.00
Price
TR
1,34,06,215 TC
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1,07,24,972
80,43,728
53,62,485
FC
26,81,243
Quantity
167578 335155 502733 670311 837890
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Family Pack (1kg) 142680000.00 152702400.00 166751020.8
Medium pack (500gm) 97440000.00 91621440.00 95881836.96
Easy pack (150gm) 45240000.00 57263400.00 66700408.32
Industrial salt (50kg) 59160000.00 80168760.00 87544285.92
Total Sales 3,48,000000.00 381756000.00 416877552.00
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Marketing expense budget
100%
90%
80%
70% 2010-2011
60%
50% 2009-2010
40%
30% 2008-2009
20%
10%
0%
Advertisement
PR
Marketing
Websites
and Marketing
Other
Total Sales
Direct
Chapter Five
5.1 Controls
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• Uncompromising commitment to the quality of the product.
• Successful niche marketing: we need to find the quality-conscious
customer in the right channels, and we need to make sure that customer
can find us.
• Automatic manufacturing process.
Due to the market segmentation that Orion Salt has established, we will require
constant updates in terms of the potential sizes, distributions, and purchasing
patterns of the quality conscious buyers. We will use our database management
system to establish a customer database containing this information. This will
allow Orion Salt to target customers more efficiently as a result of actual
experience. Furthermore, as our customer service and follow-up is key to
establishing retained customers, the marketing database will allow us to divide
the potential buying patterns of customers into categories based on future
needs.
Orion Salt is unique in its discovery and utilization of the high quality
technologies and marketing mix. Therefore, it is possible that with our success
and superior product other competitors may release a competitive product line
too. With this exclusive concentration, Orion Salt can continue to focus its
resources on producing the best quality crude salt available. Another possible
challenge would be the emergence of a new company in our niche. This
however, would not be quite as threatening, as their initial market share would
be minuscule, allowing for us to strategize further for continued success. Finally,
an established salt company may choose to begin marketing to our target
market. This would be overly threatening because then we have to compete with
them in new style.
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5.5 Marketing Organization
Marketing Manager Abdullah Al-Amin will be responsible for all the marketing activities.
Md. Mafi Ullah of advertising department will be responsible for all kind of advertising activities.
Md. Ali of PR department will be responsible for all kind of PR and direct marketing activities.
Md. Sagor will be responsible for all kind of Web development activities.
Md. Fahim will be responsible for all kind of Product Testing activities.
Bibliography:
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