Report on

An Analysis of Marketing Strategy Practiced by O’Potato in Bangladesh:

In Context of Akij Food & Beverage Limited.

Prepared for:
Naiem Jalal Uddin Ahamed
Assistant Professor
Department of Business Administration (Marketing)
Stamford University Bangladesh

Prepared by:
Nahidul Haque
B.B.A. 47th batch
ID NO - 047 14753
Major in Marketing

Date of Submission

28th October 2015

1
 Letter of Transmittal

Date: July 11, 2013

Naiem Jalal Uddin Ahamed

Assistant Professor
Department of Business Administration (Marketing)
Stamford University Bangladesh

Sub: Submission of Report titled “An Analysis of Marketing Strategy Practiced by

O’Potato in Bangladesh: In Context of Akij Food & Beverage Limited.”

Sir,

This is informing you that I have done “An Analysis of Marketing Strategy Practiced by
O’Potato in Bangladesh: In Context of Akij Food & Beverage Limited.” It is a great
pleasure for me to present you such type of report.

It was an enormous opportunity to me to gather knowledge how an Industry analysis can

be conducted on the basis of porter’s five forces model and I am able to know the
competitive scenario of chips market and also the perception of O’Potato of consumers.

Through this report any one can measure who is our potential threat, what is the
substitute product of our company, whether we contain bargaining power of buyer or
supplier, and how perception of a particular product or brand can be measured.

I do believe this report will definitely help me in future. Because of the little length of
time I faced a lot of problems in preparing the assignment. Even then, I tried my best to
prepare my report successfully. Crossing all the challenges I am finally able to submit my
report on due time. I will be grateful if you accept my report with the care of limitations.

I express our gratitude to you for giving us the opportunity to making this report. I would
be obliged if you kindly call me for any explanation or any query about the report as and
when necessary.

Sincerely Yours,

………………..
Nahidul Haque

2
B.B.A. 47th Batch
Id No: 047 14753
Stamford University Bangladesh

Student’s Declaration

I Nahidul Haque, student Id: BBA 047 14753, student of Bachelor of Business
Administration (BBA) major in Marketing, Stamford University Bangladesh do hereby
declared that this report entitled on “An Analysis of Marketing Strategy Practiced by
O’Potato in Bangladesh: In Context of Akij Food & Beverage Limited” prepared and
submitted by me to Stamford University Bangladesh for the partial fulfillment of B.B.A
(Bachelor of Business Administration) degree is of my own.

………………..

Nahidul Haque
B.B.A. 47th Batch
Id No: 047 14753
Stamford University Bangladesh

3
 Supervisor’s Declaration

This is to certify that the Dissertation report on “An Analysis of Marketing

Strategy Practiced by O’Potato in Bangladesh: In Context of Akij Food &
Beverage Limited”. For the degree Bachelor of Business Administration (BBA)
major in Marketing from Stamford University Bangladesh carried out by Nahidul
Haque, Student ID: 04714753 under my supervision.

I wish him every success in life.

………………………………..

Naiem Jalal Uddin Ahamed

Assistant professor
Department of Business Administration
Stamford University Bangladesh

4
 ACKNOWLEDGEMENT

I am highly grateful & like to express my sincere thanks to Honorable Director of Akij
Food & Beverage Limited who permitted me in such a prestigious organization.

Working at a renowned FMCG producing company AFBL with such a challenging

research scheme was a unique familiarity and opportunity for me. The experience is
thrilling and first of this kind. Lots of people deserve credit in this regard. This
performance will be supportive in my practical life, by this time it will improve my
ability, increase my knowledge and develop my efficiency as well as experience. It also
introduces me with real work field.

Very first of all I would like to thank the Almighty Allah for his kind creation and giving
me strength, intelligence enough to solve the assignment in time.

I do hereby express my deepest thanks and appreciation to Naiem Jalal Uddin Ahamed,
Assistant Professor, Department of Business Administration (Marketing), Stamford
University Bangladesh, who is my honorable supervisor, for giving me valuable time and
sincere guidance during the study period, which has inspired me in preparing this report.
He supervised me and my work and gave necessary corrections to me time to time and
his passionate guidance and critical command during the entire phase of study, and
valuable suggestions to prepare this report. I pray to almighty Allah for his good health &
long life.

My whole hearted thanks will go to Mr. Md. Shafiqul Islam Tushar (DGM, Brand
Marketing), Jamal Uddin Ahammad ( Manager Event & Activation), Mahidul Islam
( Brand Manager, Speed, Frutika& spa), Nurul Haq porosh (Brand Manager, Mojo,
clemon, twing ), A N Zahid – Al – Mahmud (Asst Manager - RnD) and Md. Abdullah –
Al – Mamun (officer - RnD), of Akij Food and Beverage Ltd. for providing me enough
support and guidance to enrich my report, who afford me all the access and working
environment.

I am also very much thankful to AFBL family to ensure me access with them and
dedicative attitude to help me to realize the brand promotion activities and policy of
AFBL.

My last but not least; gratitude again goes to Naiem Jalal Uddin Ahamed, who in all steps
was with me and guided to the end in every possible doubt with every possible means. He
was the supervisor of all necessary co-ordination and preparation for doing the research.
It would have been an impossible task for me without the help of them to compel the
report in to a fit to be seen.

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 Executive Summary

Akij Food & Beverage Limited has been operating its business in Bangladesh for a long
time with an admirable reputation. With intent to provide high quality food products at
competitive price Akij Food & Beverage Limited was added to the company line of this
conglomerate. Akij Food & Beverage Limited launched O’Potato Chips and considering
the popularity of fast food items.

Chips are a popular snacks item in our country. Within a short time this product has
ensured its position both in urban and rural area. The market size is fairly large and it is
expanding day by day. From upper class to lower class, people of all strata of the society
have demand for this food. In general, people of middle class to upper class are the major
consumer of this product.

Bombay Sweets is the pioneer in the packet chips industry in Bangladesh. They launched
Bombay Sweets Potato Crackers in 1985. At that time there was no other competitors for
packet chips. Through their widespread network they have made the products available in
all over the country. Gradually the market has been expanded and now there are as long
as more than eighth competitors in the market. There are more than twenty brands in the
market with three international competitors.

Besides packet chips there is a huge market of homemade chips. Though they are the
players of chips industry, are not direct competitors of Akij Food & Beverage Limited.
Akij Food & Beverage Limited distributes chips through their own distribution channel.
Usually small enterprises or wholesalers are selected as distributors considering some
criteria like capital, risk bearing capacity, network in the market, previous track record
etc.

For the purpose of this study it has been conducted surveys by questionnaire method.
Consumer of age ranging from ten to thirty was surveyed to know their daily routing,
how to spend their leisure time, favorite program, favorite channel, favorite paper or
periodic etc. People of different area have different idea about the media and their
different point of view depends on their demographic status and knowledge about the
product.

6
During the short working period at Akij Food & Beverage Limited, it has been tried to
gather information by communicating from lower to higher level of organization
employees and other sources. But the sources of information are limited.

First of all to make a report it has been set an objective on which segment of the market it
will conduct my research so that it has been chosen chips industry to perceive the
perception of consumers about chips and also evolution of marketing strategy followed
by O’Potato through which can predict the present situation of chips industry and also
can have a good glance on other chips manufacturing companies as well as the
positioning strategy of O’Potato. This dissertation research report highlights on practical
experience in Akij Food & Beverage Limited based on brand promotion strategy in
Bangladesh.

For conducting this assignment successfully it has been interviewed Ahammad Ali Hasan
(Brand Manager) to know what their company think about target market and threats of
substitute product of chips companies, which company contain highest potential entrance
in the field of chips industry of Bangladesh, whether they have bargaining power or the
supplier have the bargaining power and the current condition of the chips producing
industry.

After that it has been prepared for questionnaire to make a fruitful research and conduct
my research on 50 respondents and also visited 15 shops to get the closest picture of the
chips market. After gathering information through research it has been visited various
websites of chips Companies to congregate information.

After visiting the website it has been devoted into analyzing the respond which have been
found through the research to portray findings which given later in this report.

In during of my working period there found that Akij Food & Beverage Limited is one of
the prominent native companies among the fast moving consumer goods producer which
has several product line and many more in pipe line to introduce. So in term of consumer
perception and positioning they should make in mind the some recommendations.

Throughout working period gained a lot of valuable knowledge regarding the operation
of the entire food & beverage industry. The company Akij Food & Beverage Limited
(AFBL) lately came in the business and has already achieved flourishing state with some
of its brands. It has been highly obliged for being a part of this venture, and
understanding their business policies, operational structure, strategy formulation and

7
implementations. The comprehension gained from the marketing activities of Akij Food
& Beverage Limited enhanced my knowledge portfolio to a greater extent.

To successfully conduct the study it has been also involved in a brainstorming session
with Ahammad Ali Hasan (Brand Manager) on the basis of the information that gather
from interview, web address and text book to complete the report in a most creative and
distinctive way.

Through piloting this project successfully got extreme result that chips industry of
Bangladesh is able to create a significant position in our economy and try to boost up the
economy of Bangladesh. It has been strongly predict that Potato chips contains a great
future ahead, this product is really enclose optimum quality and want to deliver quality
also towards its consumers.

Every organizations has its positives as well as negatives sites and in case of FMCG, the
later one is less than the earlier one and as the management is determined to reach the
pick of success it seems that in near future the negatives will be eliminated. To keep on
number one positions in Bangladesh Akij Food & Beverage Limited should fear highly
about their marketing strategy and other related activities.

The study has been conducted as structured questionnaire survey on clients in

Bangladesh, in order to perceive the service potential in the market. The study brings out
the truth that consultancy seemed to have a good potentiality in the whole market of
Bangladesh. At last it has been want to about that sales promotion play an important role
in the total marketing mix. To use it well or successive way Akij Food & Beverage
Limited must define the sales promotion objective, select best tools, design the sales
promotion program, implement the program, and evaluated the result.

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 Table of Contents

S/L Main headline S/L Sub headline Page

01 Introduction 12-13
(a) Problem statement 12
(b) Origin of the study 12
(c) Study objective 13
(d) Need and purpose of the study 13
02 Methodology of the 15-19
Study (a) Hypothesis formulation 15
(b) Description of research design 15-16
(c) Data sources 16
(d) Methodological assumptions (hypothesis) 18
(e) Scope of the study 18
(f) Limitations 18
(g) Study background 19
03 Profile of the 21-29
Organization (a) Company Profile 21-25
(b) Product of AFBL 25-26
(c) Business Philosophy 27
(d) Employees 28-29
04 Study of the Report 30-35
(a) History of potato-Chis 31-32
(b) Potato Chips Processing Line 32-34
(c) Benefits of Potato chips 34
05 Study on O’Potato 35-38
(a) O’Potato launching 36
(b) O’Potato launching budget 36
(c) O’Potato Activation 37
(d) Ingredient of O’Potato 38
06 Study of Text 39-51
(a) Literature Review 40-41
(b) Diagram of Porter's 5 Forces 42
(c) The risk of new entry by potential 43-45
competitors
(d) Rivalry among Established Companies 45-48

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 (e) The Bargaining Power of Buyers 48-49
(f) The Bargaining power of supplier 49-51
07 Report’s Body 52-54
(a) Body of the Report 53
(b) Factors of perception of Consumers and 44
Customers
08 Industry Analysis 55-62
(a) The risk of new entry by potential 56-59
competitors
(b) Absolute Cost Advantage 59-61
(c) Rivalry among Established Companies 61
(d) The Bargaining Power of Buyers 61-62
(e) The Bargaining Power of Suppliers 62
(f) Threat of Substitute Product 62
09 Study on Marketing 63-69
Strategy (a) Marketing 64
(b) Positioning 64-65
(c) Product positioning process 65
(d) Positioning concepts 66
(e) Measuring the positioning 66
(f) Positioning Strategy 66-67
(g) Using an effective positioning strategy 67
(h) Markets Positioning Strategies 68
(i) Developing a positioning strategy 68
(j) Product positioning strategy 68-69
10 Discussion on 70-84
Findings (a) Classification of data 71
(b) Tabulation of data 71
(c) Analysis and interpretation of data 71-78
(d) Hypothesis test 78-80
(e) Interpretation 80-84
11 Conclusion and 85-87
Recommendation (a) Conclusion 86
(b) Recommendation 87
12 Appendix 88
(a) Two different pack of O’Potato, with two 88
different taste and color
(b) Reference 89
(c) Sample copy on Questionnaire 90-94

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Chapter

1
Introduction

Problem statement
11
 Origin of the study
Study objective
Need and purpose of the study
1.1: Problem Statement

All most 50 percent people of Bangladesh are illiterate. Those who are educated they do
not have much more practical and analytical awareness to make better prospect of their
life. In this case people need to get involved to do the productive work and getting job in
the native company to improve our local productivity.

First part of the report is focused on the organization of AFBL and other part is based on
the schedule of twelve weeks commitment assigned by actual working environment and
to find out the process and prospects of promotional strategy of AFBL. Both of these
study exposures the major of this report.

As a local company Akij food and beverage is doing potential accomplishment in our
country where more than thousand employees working whole around the Bangladesh and
its first priority is to establish a strong demand from their new launched chips O’Potato in
our own country.

1.2: Origin of the Study

Doing thesis report under any organization is a requirement of MBA program. The thesis
program is designed to have the real life working experience in a well-established reputed
organization to satisfy the core requirements of the post-graduation program. As a
professional degree it is vital to fulfill all, the requirements the program require. Merely
after preparing & submitting the report this program becomes completed. Ascertainment
of the Dean, Department of Business Administration, Stamford University Bangladesh, it
has been compare this report from my practical experience earned at the time in Akij
Food & Beverage Ltd. at 13/1/Ka, Panthapath, Dhaka-1215.

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1.3: Study Objective

1.3.1: Broad Objective

The eventual purpose of the study is to increase real life experience in any kind of service
sector get a clear idea about Consumer perception and marketing strategy. To study the
Customer Touch Point (CTP) activities, observe and the relationship of AFBL with his
prospect.

1.3.2: Specific Objectives

 Get idea about various consumer perception about O’potato

 Different positioning strategy of O’Potato
 Market monitoring of O’Potato launching program
 To determine the origin of consumer perception & positioning strategy in terms of
FMCG organizations in Bangladesh.
 Informative advertisement to inform consumer about the product.
 About the Communication of different media.
 Identifying the brand promotion strategy of AFBL
 To observe what method and how actually they applied as a marketing tool to satisfy
their customer.
 To observe how marketing tool use for establishing brand value or position in
customer mind.

1.4: Need and Purpose of the Study

The intention of the study is to contemplate the knowledge and experience accumulated
from the internship program in accordance with the guidelines. This study comprises of
an organization part and a project part. First parts view is to study and analyze the
organization with special emphasis on its back ground. On the other hand the project part

13
enables the intern to study a problem and to arise at a realistic and implemental solution
with the help of different analytical tools.

Chapter

2
Methodology of the Study

14
 Hypothesis formulation
Description of research design
Data sources
Methodological assumptions (hypothesis)
Scope of the study
Limitations
Study background

2.1: Hypothesis Formulation

Hypothesis is a tentative proposition formulated for imperial testing. It is a declarative

statement combining concepts. It is a tentative answer to a research question. It is
tentative because its varsity can be evaluated only after it has been tested imperial.

Lund Berg has defined hypothesis as, “A declarative generalization, the validity of
which remains to be tested.” And as an assumption or statement which may or may not
be true, about a population on equivalent about the probability distribution characterizing
the given population which we want to test on the basis of evidence from the random
sampling. If the hypothesis complexity specifies the population, then it is known as
composite hypothesis.

Hence basically two types of test normally are testing hypothesis. Such as:

 Null hypothesis
 Alternative hypothesis

2.2: Description of Research Design

A research design is nothing but a logical and systematic plan prepared for accomplishing
a research study. A research design usually specifies the objectives of the study and the
methodology and technique are adopted for achieving the objectives.

15
It constitutes the blue print for the collection measurement and analysis of data. A
research design is the key that guides the investigator in the process of gathering,
analyzing, and interpreting observations. It ensures the systematic way of procedure for
the research to do.

Central part of any research action is for shift an effective research strategy on design.
After identification of marketing research process, this will detail the most suitable
methods of investigation, the life on the research instrument, the sampling method and
the types of data quantitative on qualitative or both. A research forms of framework of
the entire research process.

A good design, will answer that the information obtained is returned to the research
problem and that it was collected by objective and economic procedure.

Market survey is an example of research process; data collection is the groundwork of all
marketing research. For any market research and collecting data various instrument
implied for gathering require data and information.
Questionnaire is the example of research instrument. On the purpose for which the
research is conducted mainly determine the research design. The depth and extent of the
data require the costs and benefits of the research, the urgency of the work and the time
available for completing it will decide while designing the research.

Thus the research has to be great to the availability of data and the cooperation of the
informants. So that research basically will be conclusive are nature and a comprehensive
study will be made to make the hypothesis of value.

On the basis of fundamental objective of the research marketing research project can be
classified. Consideration of the deferent types, their applicability, their strength and their
weakness will help the project worker or student to select the type best suited to a specific
problem.

The two general types of research are:

 Exploratory Research
 Conclusive Research

Exploratory research seeks to discover new relationship while conclusive research is

designed to help executives choosing various possible courses of action that is to make
decision.

16
In this project work the research was to follow the conclusive research, because the topic
was to “Consumer perception & Product marketing strategy followed by O’Potato.” So
that it was need to collect primary data to find out the present market position of
consultancy firms in Bangladesh.

2.3: Data Sources

2.3.1: Sources data

Most of the marketing information are collected either from the internal sources of the
firm or from external sources.

During the project period, research should take help mainly from primary data which
collected through questionnaire and conducting different survey like interview method,
observation method, and questionnaire method.
2.3.2: Tools of data collection

 Primary Data
Primary data originally collected through an investigation. Those data are
unique in character and are generated in large number of surveys by some
individual institutions.

 Secondary Data
Which Data are collected earlier for some research work and are applicable or
useable in the study. I have presently undertaken that the secondary data can be
divided into two types. Such as –

 Internal Secondary Data

 Annual Report 2010
 Corporate documents

 External Secondary Data

 Customer Survey
 Trade publication

Secondary data are obtained by visiting competition offices and is the report of the
company. Both primary and secondary sources of data were explored for the study.

 Primary Sources
 AFBL, Official records.
 Face to face interview with the AFBL officials

17
  Secondary Sources
 AFBL Annual report.
 Resume of the activities of the international institutions
 Through different E-mail address.
 Other published materials
 Company record book.
 Other published materials

2.4: Methodological Assumptions (Hypothesis)

The hypothesis for the alarming study is as below:

 It is assumed that the consumers (potential students) of Bangladesh are extremely

satisfied with the AFBL products as well as O’Potato.

 It is for assuming that the market value of AFBL is growing day after day.
 It is assumed that the acceptance of AFBL to the consumer is satisfactory.

2.5: Scope of the Study

The scope of the report based on research work is covering the whole country, because all
prospective and average people are the customer of AFBL. Akij Food and Beverage Ltd
is the most prominent native corporate in Bangladesh. The scope of the report is limited
to the overall description of the company, its sale and service, and its position in the
market and its marketing strategy. It is limited to organizational arrangement, purpose,
and performance.

2.6: Limitations

I tried my level best to include all necessary information about Akij Food and Beverage
Ltd provide by the brand manager, sales manager, employees and internet best abilities;
but due to the exhaustive nature of this study most secret and strategic ethics could not be
brought in this report.

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 Sample size was less whereas actual figure of clients are very large. It is not possible
to sketch appropriate picture from this sample size. Since customer’ figure is very
large, consumer perception & positioning strategy to capture the whole market as
well.
Getting relevant papers and documents were strictly prohibited.
The information regarding the competitors is difficult.
Getting and acquaint information was very restricted.
Information gathering sources were few.
Collecting information was so difficult.
To meet with top management was so difficult.
Lack of skill and knowledge over the research process has been noted as well.

2.7: Study Background

2.7.1: Organizational Background of the study

Only understanding the customers behavior is not enough; today’s companies are starting
to pay as much attention as possible to track their competitors target customers. Any
company must have continues compare its services, price channels and promotion
campaign with those of its close competitions. Like other number and profitable FMCG
firm AFBL also consider competition carefully. Quality is extremely measured in case of
overseas marketing as well as in case of home marketing. It is in different at present, need
to bring out or telecast habitual attractive and informative commercial in the newspapers
and satellite channels.

2.7.2: Theoretical Background of the study

Akij food and Beverage Ltd is one of the most promising local corporate in Bangladesh.
The recent launching of the Akij Groups beverage line has been gaining popularity
among all carbonated water lovers. It gained popularity particularly among young people
and children.

Its recent product in chips category is O’Potato which is about my report named
consumer perception and marketing strategy.

19
Chapter

3
20
 Profile of the Organization

Company Profile
Product of AFBL
Business Philosophy
Employees

3.1: Company Profile (AKIJ GROUP)

21
 Reaching escalating heights in Bangladesh and beyond.

Enlightening the past history of the business world in Bangladesh, AKIJ GROUP OF
INDUSTRIES is considered to be one of most profound and aged industries that is still
sustaining with great success and prosperity. It was more than fifty years ago the
company emerged into the market, and it was as small-time jute traders.

Entrepreneur, Founder and life time Chairman Late Mr. Sheikh Akij Uddin then initiated
the business in 1950s with a single product of cigarette naming Akij Biri. This brand is
one of the biggest and well known unit of Akij Group and it is considered to be one of the
oldest and most well-known product across the country and in the few international
market as well. Then in the late 70s Dhaka Tobacco Industries came to the fold of Akij
Group when government decided to disinvest and hand over the factory to the private
sector from the nationalized sector. It was the first booming stage of Akij Group and from
then onwards this entity diversified its business in various product line and engrave the
peak of success.

From such small beginnings, it has expanded into one of the top corporations in
Bangladesh, and not only in size. Akij Group is proud of its infallible quality and
excellent service by valuing its consumers as unique individuals and trying best to
provide merchandise to suit the needs of each distinct consumer group. AKIJ group has
never limited its aims to profit making. Besides playing a part in developing the country

commercially, it has also worked hard to preserve its environment and culture. The
company is proud to say that the word wastage means little to them; all their factories
have been constructed with recycling and the environment in mind. The non-profit
making concerns of the Group are involved directly in sustaining the progress of
Bangladesh. A large number of people are employed by them, and cared for as members
of the AKIJ family.

AKIJ group copes with the present versatile market by being flexible. Creative new
ventures are the secret of our accomplishments. Portfolios of their ventures are enlisted in
the following page:

Year of the
SL Name of the Company Product
Establishment
NO.
01. Akij BIDI Factory Ltd. Hand Made Cigarettes 1950

22
02. Akij Transport Agency Ltd. Transport 1950

03. SAF Industries Ltd. Crust & finished Leather 1960

Dhaka Tobacco Industries
04. Cigarettes 1966
Ltd.
Printing & Packaging
05. Akij Printing & Packages Ltd. 1974
factory
Dhaka Tobacco Industries Tobacco Leaf Processing
06. 1981
Leaf Processing Plant. Plant
07. Akij Corporation Ltd. Trading House 1983
08. Akij Housing Ltd. Housing 1987

09. Akij Match factory Ltd. Match 1992

10. Akij Jute Mills Ltd. Jute Yarn & Twine 1994

11. Akij Cement Company Ltd. Cement 1995

12. Akij Textile Mills Ltd. Cotton Yarn 1995

13. Akij Pharmaceuticals Ltd. Medicine 1996

14. Akij Particle Board Mills Ltd. Particle & Hardboard 1996

15. Akij Computer Ltd. Hardware & Software 1997

16. Sonar Bangla Cement Ltd. Cement 1998

17. Akij Online Ltd. Internet Service Provider 2000

18. Akij Food & beverage Ltd. Food & beverage 2006
Flavored Chewing
19. Akij Zarda Factory Ltd. 2000
Tobacco
20. Nebula Ink Ltd. Ink 2001
Akij Institute of Technology
21. IT Education & Training 2001
Ltd.
22. Savar Industries (Pvt.) Ltd. 2001

23. Afil Toiletries Ltd. Toiletries 2003

24 Akij Power Ltd. CNG 2008

25 Akij Poly Fiber Ind. Ltd. Poly Fiber 2008

23
 26. Addin Hospital Health care 1985
Corporate share broker
27. Akij Securities 2008
house

Each of the ventures of AKIJ Group is entitled to be profitable and this aspect makes
them extremely financially strong in the market. Among all the ventures or units of Akij
Group, Dhaka tobacco industry is the most profitable one which compiles of the products
like Akij Biri, Dolphin match, Firefox match and other shown below:

 Mission (Akij Group)

Core mission: “Reaching escalating heights in Bangladesh and beyond.”

AKIJ GROUP is committed to provide the best product/service quality to their targeted
consumers and this commitment enhances them to accomplish their goal. Consumer
satisfaction from their quality products is one of their major goals and thus sustainable
product quality is the key concern of this company.

The 4ps of Product, Price, Place, and Promotion are subjected to their mission and to
execute and co-ordinate them properly in order to sustain and enhance consumer
satisfaction and also encounter proper profitability.

About AFBL
Akij Food and Beverage Limited

24
 “Brings Quality in Life”

The history of Akij Group stretches back to later part of the forties. In its infancy, the
Group started in humble way with jute trading which was known as the golden fiber of
the country, earning highest amount of foreign exchange. Akij Group's ceaseless efforts
with dynamic management and support from our numerous clients have led our Group in
diversifying its business activities. In the second phase, the Group went into
manufacturing handmade cigarettes popularly known as “Biris”. This sector gave a real
boost to the revenue earning of the Group as well as making a substantial contribution to
government exchequer. With the passage of time, the Group undertook new ventures and
presently there are 15 units of industries under its umbrella like cigarettes, handmade
cigarettes, printing & packaging, jute mills, textiles, Hand board, Particle boards,

Matches, Zarda, Cement, pharmaceutical, leather processing and real-estate business are
in operation, catering jobs for more than 32,000 people in various categories.

Akij Food & Beverage Ltd. has been established at a beautiful site Krishnapura, Dhamrai
of Dhaka. It has come with the best food & beverage in Bangladesh.

There are various types of drink. Mojo is the brand name of cola, Lemu is the brand name
of Lemon and Speed is the brand name of energy drink. Immediately after the
introduction of the brand it became very popular among its consumer because of the high
quality and intensive distribution in every nook and corner of the country.

Cheeky Monkey is the brand name of banana chips produced from this factory. It also is
becoming popular chips in Bangladesh. Most of Raw materials come from various
foreign countries. The quality is very strictly controlled. At every stage, non standard
products are rejected. The Group has plans for setting up more projects. The projects are

25
 already in pipeline. Foreign investors have shown keen interest in joining with Akij group
for joint ventures.

I hope that the matter is under our active consideration and will soon mature. This will
also help the national economic growth and will crezate job opportunities to various
professionals.

3.2: Product of AFBL

The recent launching of the Akij Groups beverage line has been gaining fame among all
carbonated water lovers. It gained popularity particularly among young people and kids.
The favorite brand name Mojo gained popularity within a short period. Presently the
company able to introduce new types of product which increase the depth of the category
of AFBL. Akij Food & Beverage limited started their journey officially on July 2006
with three products but within this seven year company able to add lot of products on its
rosters. The products which are already been introduced by the company are given below:

Product line1 Product line- Product line- Product Product line-5 Product Product line-7
(CSD) 2 3 line-4 (Juice) line-6 (Dairy
(Energy (Non- (Mineral (Snacks) Products)
Drink) Alcoholic Water)
Malt
Beverage)

 MOJO  SPEED  WILD  SPA  FRUTIKA  CHEEK  FARM

(Bottle- (Bottle-250ml, BREW (Bottle- MANGO (Bottle-250, Y FRESH
250,500, Can-250ml) ( Can-250ml) 500ml, 1000ml) MONK UHT
1000, 2000 ml, 1500ml) EY (500ml)
Can-250ml)  FRUTIKA  CHEES
 LEMU GRAPE E PUFF  FIRM
(Bottle- (Bottle-250 1000ml)  O’POT FRESH
250,500, ATO Pasteurized
1000, 2000 ml,  FRUTIKA (500ml)
Can-250ml) RED ORANGE
 CLEMON (Bottle-250 1000ml)  FIRM

26
(Bottle- FRESH
250,500,  FRUTIKA Butter,
1000, 2000 ml, MIXED FRUIT Ghee
Can-250ml) (Bottle-250 1000ml)

 MOJO  FRUTIKA
LIGHT GREEN MANGO
(250ml, 500 (Bottle-250 1000ml)
ml)
 CLEAR  SHAKE-- Mango
UP Milk (upcoming)
(upcoming)  AafiI-
(250ml, 2Litar)

3.4: Business Philosophy

Akij Group diversified their business in Food & Beverage industry because in
Bangladesh there is a large potential local market included 140 millions of people. It is
large market size to serve and food is required continually for the population. Akij food
& beverage wish for to serve quality food for their target market.

In soft drink industry, there are many local & foreign companies. Akij food & beverage
desire to be a unique local FMCG producer with the same quality of foreign company.
For this purpose AFBL produces CSD, Snacks, Milk, and Juice for young target group
who love to lead stylist life. Main slogan of AFBL is:

“Brings Quality in Life”.

AFBL has its own marketing & sales department in 13/1/Ka, Panthapath, Dhaka-1215.
This department is very wide and dynamic where the employees are working without any
tired. Some important functions are performed by the department as below:

27
  Research & Product development.
 Raw material sourcing.
 Identify or create potential prospect for its product.
 Packaging design & development.
 Planning commuznication strategy and developing.
 Preparing sales forecast.
 Keeping sales force management muscular in the field.
 Maintain FIFO method for keeping record of sales and stock.
 Collecting & analyzing the competitor’s information.
 Informing the present market condition to the top management.

Except these, it performs a number of activities to conduct their day-to-day business.

Under marketing & sales department, a Brand team performs the key role of real
marketing.

3.5: Employees

In AFBL there are mainly two departments. Those 1) Marketing & Sales force
management. 2) Brand development management. Marketing and sales department are
work directly under Executive Director (Marketing & Sales). And numbers of employees
are working under the supervision of Brand manager at brand development section. The
hierarchies of employee according to the designation are like below:

28
 Executive
Executive
Director
Director

Deputy
Deputy Deputy
Deputy
General
General General
General
Manager
Manager Manager
Manager
(Sales)
(Sales) (Brand)
(Brand)

National
National Market
Market Institution
Institution Event
Event& & Outdoor
Outdoor&& Senior
Senior
Brand
Brand
Sales
Sales Development
Development Sales
Sales Activation
Activation Media
Media Research
Research
Manager Manager
Manager
Manager
Manager Manager Manager
Manager Manager
Manager Manager
Manager Officer
Officer

Regional
Regional Asst.
Asst. Event
Event Research
Research
Sales
Sales Brand
Brand Executive
Executive Officer
Officer
Manager
Manager Manager
Manager

Brand
Brand Event
Event
Executive
Executive Officer
Officer

Figure- 1: Hierarchy of employees.

Beside these employees, AFBL has a Sales team working in the field across the whole
country. Regional sales managers are controlling these sales forces. An area sales
manager & a territory sales officer is engaged to conduct regular sales management for
each sales area. They work at the retail outlet with the authorized distributors.

RSM

ASM

TSM
29

SPO
 Figure- 4C: Hierarchy of employees working outside of the organization.
RSM:-Regional sales manager

ASM:-Area sales manager

TSM:-Territory sales manager

SPO:- Sales promotional offices

The actual marketing activities of AFBL are performed by the Brand office under
Marketing and sales department. In this above figure represent hierarchy of employees
working outside of the organization. TSO are the officer whose duty is making
relationship with the retailer and wholesaler. Accept this he also monitor the sales
condition about his own product and collect information about competitors’ products.
ASM are the boss of TSO, he give the instruction to TSO how they can achieve their
sales target. He also make lesion among organization, wholesaler and retailer. He also
provides daily sales report to the company. ASM are the subordinate of RSM. RSM’s
main duty is monitoring the regional sales achievement and giving directions to his
subordinates.

Chapter
30
 4
Study of the Report

History of potato-Chips
Potato Chips Processing Line
Benefits of Potato chips

31
4.1: History of potato-Chips

At a Glance

While it is not exactly geography and really not something for an atlas, I have to discuss
the story. Like many of the individual inventor stories, there is little that we really know
and a lot that is embellished to meet the needs of the writers and the perceived needs of
the reader. So what follows is a small summary and analysis of the various telling of the
tale.

Period of Invention

The summer of 1853 is clearly the approximate time period. One completely
undocumented source I found on the web boldly states it was Aug. 24, 1853 (D.T.
1997) but no one else seems to be so certain. 1853 is the year, however, but you will
occasionally see a mixed up date of 1835.

In the summer of 1853, Native American George Crum was employed as a chef at an
elegant resort in Saratoga Springs, New York. One dinner guest found Crum's
French .fries too thick for his liking and rejected the order. Crum decided to rile the guest
by producing fries too thin and crisp to skewer with a fork. The plan backfired. The guest
was ecstatic over the browned, paper-thin potatoes, and other diners began requesting
Crum's potato chips

Invention: Potato Chips in 1853

Definition: noun / potato chips
Snack food made of a thin slice of white potato that has
Function: been cooked until crisp and then usually salted. Also
known as Saratoga Chips or potato crisps.
Patent: Never patented.
.
Inventor: George Crum (a.k.a. George Speck*)
Criteria: First to invent.
Birth: 1822 Saratoga Lake, New York
Death: 1914 Saratoga Lake, New York
Nationality: Narive American

32
 Table-3: “Summary of the potato chips invention history”

Inventor of chips

Most writers agree that the inventor was a cook named George Crum. A local Saratoga
Springs historian, however, says that it may have been his sister, Kate Wicks (Fitzgerald,
quoted in Crowe 2006) for many brief telling that is all you find out about the man. But
other sources mention his racial background, e.g. "Crum was part Indian, part black, a
former guide in the Adirondacks and in his own way a rather colorful figure in this area"
(Grib 1975). Other times only his Indian heritage is mentioned (Snack Food Association
1987; Barrett 1941). He is occasionally mentioned in histories of significant African-
American figures but not as often in collections dealing with Native Americans. There
appears little doubt that he actually existed, was a cook at Moon's Lake House on
Saratoga Lake and later purchased his own restaurant on the lake.

What Kind of Person Was He

Most of the stories, when they discuss what kind of person Crum was, refer to him as a
character. His return of the original fried potatoes (whoever ordered them) was a
"sarcastic reply" (Snack Food Association 1987) and that he had an "irascible nature"
(Grib 1975) or was "a tough old codger who had once been an Indian trapper" (Barrett
1941, 186). They sometimes mention his multiple wives, usually 5, who supplied
inexpensive labor when he finally opened his own restaurant at the south end of the lake
(Barrett 1941). His character figures heavily in the answers to the question

4.2: Potato Chips Processing Line

In earlier period of chips producing there was no way to use modern technology, on that
occasion it was totally hand making process. But the situation has been changed. Modern
technology is invented. Chips are producing by using new invented machine with a view
to do business. There are various types of chips producing equipment. Like manual, semi-
automatic, full- automatic etc.

33
 Picture-1: Chips processing plant.

The inflating foodstuffs of the MEC21are another high-quality snacks on the basis of
the second generation.Com powder and potato search are the major materials of the proce
ssing line.

Picture-2: Chips processing procedure.

This equipment uses potato starch, flour power, tapioca starch to produce popular potato
chips etch leisure foodstuff. This kind of food looks very siender and tenses very crispy.
It is in customer’s good graces.

Picture-3: Flavor and oil spray machine.

34
This machine including oil sprayer.
Material sprayer that can operate by rolling themselves and come after and adjust the spe
ed and flux of flavoring and oil spraying. It ensures oil and flavoring onto the surface equ
ally and improves the consistency of flavoring cover of different products.

Picture-4: Packaging machine

4.3: Benefits of Potato chips

Potato chips are becoming increasingly popular, in the world they are the number one
snack with hundreds of bags of potato chips consumed per person each year. There are
new potato chip flavors coming out frequently to try to grab our taste buds. It’s safe to
say that potato chips contribute a small percentage to the growing weight problem. The
trouble with potato chips is most brands are high in calories and fat in comparison to the
weight of the product. Their lightness means it’s possible to eat much more than we
should or another negative way is they don't fill the stomach enough to limit the amount
foods eaten during the same meal or snack. The result is the possibility to consume many
more calories than the body requires.Better made potato chips are the ones low in fat and
calories. There are many low fat potato chips varieties available on the market however;
low fat potato chips may encourage some people to consume more for the same number
of calories.

Potato chips also contain large amounts of sodium in the form of salt. The salt gives these
chips the flavor and taste which many people find addictive in potato chips. Many
processed foods contain high levels of sodium to help preserve the food as well as for
taste. The problem for the dieter is it causes the body to hold water. Some research
suggests that many people may be carrying up to 5 pounds of excess water weight just
through high levels of sodium intake. High sodium intakes have also been linked to an
increase in blood pressure. Plus potato chips also contain very little water. Many people

35
don't drink enough water from the glass, instead relying on fluid intake through the food
eaten each day. Consuming potato chips while on a diet further reduces consumption of
water. Some research suggests that sufficient water intake can help reduce appetite and
cause weight loss. Potato chips don't have much in the way of nutritional value either.
Normally natural potatoes help contribute to a person's vitamin C intake, mainly due to
the volume of potato portions eaten. The way potato chips are prepared causes most
vitamin C destroyed, plus eating more to achieve good vitamin C intake will only result
in excess calories.

Chapter

36
 Study on O’Potato

O’Potato launching
O’Potato launching budget
O’Potato Activation
Ingredient of O’Potato

5.1: O’Potato launching

Akij Food and Beverage Limited (AFBL) have introduced O'Potato Chips, its own
variety of potato chips in the local market recently. The brand new potato chips which
comes in two distinct flavors, is the latest in line of AFBL's processed food ranges whose
brand names include Mojo, Clemon, Frutika and Spa. "Our O' Potato Chips' dual variants
of Magic Masala and Vegetable Masala will now be available in the 15 gram packets at
outlets all over the country at a price of Tk. 8.00 each," Sk. Jamil Uddin; Director of
AFBL said at a press conference Wednesday. "The highly nutritious and delicious chips;
which is made from the finest potato ingredients imported from Europe is made to suit
the local taste," he added. However, explaining the reason for using foreign grown
potatoes as ingredients, the AFBL Director informed that the homegrown potatoes, due to
having a higher sugar concentration turn black when processed as chips and therefore is
not highly marketable.

"All the AFBL products are manufactured at the highly automated factory located at
Dhamrai and using state-of-the-art German technologies available only in only two other

37
Asian countries," Jamil Uddin said while assuring about the quality of the product.
"The local market for potato chips or similar products worth around Tk. 3 billion and we
are looking to grab a substantial share of that market thanks to the unique taste of our
product and the competitive price we are offering," he said.

5.2: O’Potato launching budget

Cost Head Cost Amount

Press Ad 5,00,000 BDT
Magazine ad & supplemental 2,00,000 BDT
RJ endorsement at 3 radio stations 2,45,000 BDT
TV commercial on-air 16,45,000 BDT
POS 11,37,000 BDT
Shop Sign 2,00,000 BDT
Bill Board 1,30,000 BDT
Activation 8,60,000 BDT
TOTAL 49,17,000 BDT

Table-4: O’Potato launching budget.

5.3: O’Potato Activation

Objective: Is to create hype among the target group.

Date: 1st February, 2015

Duration: 9.30 am to 5 pm

Location: Mirpur 1, Mirpur 10 & Motijheel (In front of Ideal School)

Main Attraction: Dummy Potatoes

Activation Mechanism

There were three dummy potatoes. Among them one was big in size than other two.
There was an arrangement to enter into the big potato dummy. Before starting the
activation, promoters kept real potato, spice pack, instruction note for the participants

38
inside the dummy potato. One promoter entered inside the big dummy potato. Then he
took a potato in one hand and spice pack and instruction note in another hand and gave it
to the people through the holes. One promoter was assigned for making understand the
participants to receive the strange things from the dummy potato. The participants then
gave the real potato, spice & instruction note to another promoter waiting outside &
finally the participants have been offered O’Potato Pack.

Started our activation from Mirpur 1 Circle. Lots of people gathered around the big
dummy potato. Out of three promoters, one went inside the big dummy potato. A large
number of people made a queue to enjoy the activities. After 3 hours of activation we
went to Mirpur 10 (In front of Ideal School) & started activation there. All aged of school
going kids gathered around the dummy potatoes & enjoyed the activation.
Despite of all these, O’Potato Activation had some disadvantages also-

 People on the roadside could not recognize it as a Potato. Some thought it was
Peanut.
 Many persons thought, magic was running inside the dummy potato.
 A huge number of beggars, rickshaw pullers gathered in front of the dummy potato &
they also demanded products. For this reason many school going kids, young boys
& girls did not participate in the activation. To many persons, it was nothing but
irritating.

5.4: Ingredient of O’Potato

Name Of Nutrition Amount of Nutrition/100gm

Energy 530Kcl

Protein 403gm

Carbohydrate 60.5gm

Cholesterol 0.0gm

Sodium 180mg

Fat 20gms

39
Table- 5: The Ingredients Are in O’Potato /1000 gm

Chapter

40
 6
Study of Text

Literature Review
The Threat of Substitute Products
The risk of new entry by potential competitors
Rivalry among Established Companies
The Bargaining Power of Buyers
The Bargaining power of supplier

6.1: Literature Review

6.1.1: Perception

In a word perception is nothing but a individuals won thinking about something.

Perception can be defined as the practice by which an individual selects, organizes and
interprets stimuli into a consequential and coherent picture of the world. It can be
described as “how we see the world around us.”

41
6.1.2: Elements of Perception

Sensation

Sensation is the immediate and direct response of the sensory organs to stimuli. A
stimulus is any unit of input to any of the senses. Examples of stimuli include products,
packages, brand names, advertisements and commercials.

The unconditional threshold

The lowest level at which and individual can experience a sensation is called the
unconditional threshold. The point at which a person can detect a difference between
something and nothing is that person’s absolute threshold for that stimulus.

The Differential Threshold

The minimal dissimilarity that can be detected between two similar stimuli is called the
differential threshold or the just noticeable difference. Manufacturers and marketers try to
determine the relevant J.N.D for their products for two different reasons:

 So that negative Changes (reduction in product size or quality, increase in product

price).

 So that product improvements (such as improved or updated packaging, larger size, or

lower price)

Research Process

The process of Research is a series of actions or steps necessary to effectively carry out
research and the desired sequencing of these steps, are given below:

 Formulate the research problem

 Extensive literature survey
 Developing the hypothesis
 Preparing the research design

42
  Determining the sample design
 Collecting the data
 Execution of the project
 Analysis of data
 Hypothesis testing
 Generalizations and interpretation
 Preparation of the report or presentation of the results

Managers have to analyze competitive forces in an industry’s environment in order to

identify the opportunities and threats that confronting a company. Michael E. Porter of
Harvard School of Business Administration has developed a framework that helps
managers in this analysis. Porter’s framework, which is known as the five forces model
and this model focuses on five forces that shape competition within industry:

 The risk of new entry by potential competitors.

 The degree of rivalry among established companies within an industry.
 The bargaining power of buyers.
 The bargaining power of suppliers.
 The threat of substitute products.

Diagram of Porter's 5 Forces

SUPPLIER POWER
Supplier concentration
Importance of volume to supplier
Differentiation of inputs
Impact of inputs on cost or
differentiation
Switching costs of firms in the

43
 industry
Presence of substitute inputs
Threat of forward integration
Cost relative to total purchases in
industry
BARRIERS
TO ENTRY
Absolute cost advantages
Proprietary learning curve THREAT OF
Access to inputs SUBSTITUTES
Government policy -Switching costs
Economies of scale -Buyer inclination to
Capital requirements substitute
Brand identity -Price-performance
Switching costs trade-off of substitutes
Access to distribution
Expected retaliation
Proprietary products
BUYER POWER DEGREE OF
Bargaining leverage RIVALRY
Buyer volume -Exit barriers
Buyer information -Industry concentration
Brand identity -Fixed costs/Value added
Price sensitivity -Industry growth
Threat of backward integration -Intermittent overcapacity
Product differentiation
Buyer concentration vs. industry -Product differences
Substitutes available -Switching costs
Buyers' incentives -Brand identity
-Diversity of rivals
-Corporate stakes
Figure-2: Porter’s five forces model Source: An exhibit from “How Competence Forces
Shape Strategy” by Michael E. Porte.
6.2: The risk of new entry by potential competitors

It is not only incumbent rivals that pose a threat to firms in an industry; the possibility
that new firms may enter the industry also affects competition. In theory, any firm should
be able to enter and exit a market, and if free entry and exit exists, then profits always
should be nominal. In reality, however, industries possess characteristics that protect the
high profit levels of firms in the market and inhibit additional rivals from entering the
market. These are barriers to entry.

44
Barriers to entry are more than the normal equilibrium adjustments that markets typically
make. For example, when industry profits increase, we would expect additional firms to
enter the market to take advantage of the high profit levels, over time driving down
profits for all firms in the industry. When profits decrease, we would expect some firms
to exit the market thus restoring market equilibrium. Falling prices, or the expectation
that future prices will fall, deters rivals from entering a market. Firms also may be
reluctant to enter markets that are extremely uncertain, especially if entering involves
expensive start-up costs. These are normal accommodations to market conditions. But if
firms individually (collective action would be illegal collusion) keep prices artificially
low as a strategy to prevent potential entrants from entering the market, such entry-
deterring pricing establishes a barrier.

Barriers to entry are unique industry characteristics that define the industry. Barriers
reduce the rate of entry of new firms, thus maintaining a level of profits for those already
in the industry. From a strategic perspective, barriers can be created or exploited to
enhance a firm's competitive advantage. Barriers to entry arise from several sources:

 Government creates barriers

Although the principal role of the government in a market is to preserve competition

through anti-trust actions, government also restricts competition through the granting of
monopolies and through regulation. Industries such as utilities are considered natural
monopolies because it has been more efficient to have one electric company provide
power to a locality than to permit many electric companies to compete in a local market.
To restrain utilities from exploiting this advantage, government permits a monopoly, but
regulates the industry. Illustrative of this kind of barrier to entry is the local cable
company. The franchise to a cable provider may be granted by competitive bidding, but
once the franchise is awarded by a community a monopoly is created. Local governments
were not effective in monitoring price gouging by cable operators, so the federal
government has enacted legislation to review and restrict prices.
The regulatory authority of the government in restricting competition is historically
evident in the banking industry.
Until the 1970's, the markets that banks could enter were limited by state governments.
As a result, most banks were local commercial and retail banking facilities. Banks
competed through strategies that emphasized simple marketing devices such as awarding
toasters to new customers for opening a checking account. When banks were deregulated,
banks were permitted to cross state boundaries and expand their markets. Deregulation of
banks intensified rivalry and created uncertainty for banks as they attempted to maintain
market share. In the late 1970's, the strategy of banks shifted from simple marketing
tactics to mergers and geographic expansion as rivals attempted to expand markets.

45
 Patents and proprietary knowledge serve to restrict entry into an industry

Ideas and knowledge that provide competitive advantages are treated as private property
when patented, preventing others from using the knowledge and thus creating a barrier to
entry. Edwin Land introduced the Polaroid camera in 1947 and held a monopoly in the
instant photography industry. In 1975, Kodak attempted to enter the instant camera
market and sold a comparable camera. Polaroid sued for patent infringement and won,
keeping Kodak out of the instant camera industry.

 Asset specificity inhibits entry into an industry

Asset specificity is the extent to which the firm's assets can be utilized to produce a
different product. When an industry requires highly specialized technology or plants and
equipment, potential entrants are reluctant to commit to acquiring specialized assets that
cannot be sold or converted into other uses if the venture fails. Asset specificity provides
a barrier to entry for two reasons: First, when firms already hold specialized assets they
fiercely resist efforts by others from taking their market share. New entrants can
anticipate aggressive rivalry. For example, Kodak had much capital invested in its
photographic equipment business and aggressively resisted efforts by Fuji to intrude in its
market. These assets are both large and industry specific. The second reason is that
potential entrants are reluctant to make investments in highly specialized assets.

 Organizational (Internal) Economies of Scale

The most cost efficient level of production is termed Minimum Efficient Scale (MES).
This is the point at which unit costs for production are at minimum - i.e., the most cost
efficient level of production. If MES for firms in an industry is known, then we can
determine the amount of market share necessary for low cost entry or cost parity with
rivals.
For example, in long distance communications roughly 10% of the market is necessary
for MES. If sales for a long distance operator fail to reach 10% of the market, the firm is
not competitive.

The existence of such an economy of scale creates a barrier to entry. The greater the
difference between industry MES and entry unit costs, the greater the barrier to entry. So,
industries with high MES deter entry of small, start-up businesses. To operate at less than
MES there must be a consideration that permits the firm to sell at a premium price - such
as product differentiation or local monopoly.

46
Barriers to exit work similarly to barriers to entry. Exit barriers limit the ability of a firm
to leave the market and can exacerbate rivalry - unable to leave the industry, a firm must
compete. Some of an industry's entry and exit barriers can be summarized as follows:

Easy to Enter if there is: Difficult to Enter if there is:

 Common technology
 Little brand franchise
 Access to distribution channels
 Low scale threshold
Easy to Exit if there are:
 Salable assets
 Low exit costs
 Independent businesses
 Patented or proprietary know-how
 Difficulty in brand switching
 Restricted distribution channels
 High scale threshold
Difficult to Exit if there are:
 Specialized assets
 High exit costs
 Interrelated businesses

Table-6: an industry's entry and exit barriers.

Potential competitors are companies that are not currently competing in an industry but
have the capability to do so if they choose. Incumbent companies try to discourage
potential competitors from entering the industry, the more companies enter, the more
difficult it becomes for established companies to hold their share of the market and
generate profits. A high risk of entry by potential competitors represents a threat to the
profitability of established companies. On the other hand the risk of new entry are low,
incumbent companies can take advantage of this opportunity to raise prices and earn
greater returns? Barriers to entry→ it means to those factor that make costly for
companies to enter in an industry.

6.3: Rivalry among Established Companies

In the traditional economic model, competition among rival firms drives profits to zero.
But competition is not perfect and firms are not unsophisticated passive price takers.
Rather, firms strive for a competitive advantage over their rivals. The intensity of rivalry
among firms varies across industries, and strategic analysts are interested in these
differences.

Economists measure rivalry by indicators of industry concentration. The Concentration

Ratio (CR) is one such measure. The Bureau of Census periodically reports the CR for
major Standard Industrial Classifications (SIC's). The CR indicates the percent of market
share held by the four largest firms (CR's for the largest 8, 25, and 50 firms in an industry
also are available). A high concentration ratio indicates that a high concentration of
market share is held by the largest firms - the industry is concentrated. With only a few

47
firms holding a large market share, the competitive landscape is less competitive (closer
to a monopoly). A low concentration ratio indicates that the industry is characterized by
many rivals, none of which has a significant market share. These fragmented markets are
said to be competitive. The concentration ratio is not the only available measure; the
trend is to define industries in terms that convey more information than distribution of
market share.

If rivalry among firms in an industry is low, the industry is considered to be disciplined.

This discipline may result from the industry's history of competition, the role of a leading
firm, or informal compliance with a generally understood code of conduct.

Explicit collusion generally is illegal and not an option; in low-rivalry industries

competitive moves must be constrained informally. However, a maverick firm seeking a
competitive advantage can displace the otherwise disciplined market.

When a rival acts in a way that elicits a counter-response by other firms, rivalry
intensifies. The intensity of rivalry commonly is referred to as being cutthroat, intense,
moderate, or weak, based on the firms' aggressiveness in attempting to gain an advantage.
In pursuing an advantage over its rivals, a firm can choose from several competitive
moves:
 Changing prices - raising or lowering prices to gain a temporary advantage.
 Improving product differentiation - improving features, implementing innovations
in the manufacturing process and in the product itself.
 Creatively using channels of distribution - using vertical integration or using a
distribution channel that is novel to the industry. For example, with high-end
jewelry stores reluctant to carry its watches, Timex moved into drugstores and other
non-traditional outlets and cornered the low to mid-price watch market.
 Exploiting relationships with suppliers - for example, from the 1950's to the 1970's
Sears, Roebuck and Co. dominated the retail household appliance market. Sears set
high quality standards and required suppliers to meet its demands for product
specifications and price.

The intensity of rivalry is influenced by the following industry characteristics:

 A larger number of firms increase rivalry because more firms must compete for the
same customers and resources. The rivalry intensifies if the firms have similar market
share, leading to a struggle for market leadership.
 Slow market growth causes firms to fight for market share. In a growing market,
firms are able to improve revenues simply because of the expanding market.
 High fixed costs result in an economy of scale effect that increases rivalry. When
total costs are mostly fixed costs, the firm must produce near capacity to attain the

48
 lowest unit costs. Since the firm must sell this large quantity of product, high levels of
production lead to a fight for market share and results in increased rivalry.
 High storage costs or highly perishable products cause a producer to sell goods as
soon as possible. If other producers are attempting to unload at the same time,
competition for customers intensifies.
 Low switching costs increases rivalry. When a customer can freely switch from one
product to another there is a greater struggle to capture customers.
 A low level of product differentiation is associated with higher levels of rivalry.
Brand identification, on the other hand, tends to constrain rivalry.
 Strategic stakes are high when a firm is losing market position or has potential for
great gains. This intensifies rivalry.
 High exit barriers place a high cost on abandoning the product. The firm must
compete. High exit barriers cause a firm to remain in an industry, even when the
venture is not profitable. A common exit barrier is asset specificity. When the plant
and equipment required for manufacturing a product is highly specialized, these
assets cannot easily be sold to other buyers in another industry. Litton Industries'
acquisition of In galls Shipbuilding facilities illustrates this concept. Litton was
successful in the 1960's with its contracts to build Navy ships. But when the Vietnam
War ended, defense spending declined and Litton saw a sudden decline in its
earnings. As the firm restructured, divesting from the shipbuilding plant was not
feasible since such a large and highly specialized investment could not be sold easily,
and Litton was forced to stay in a declining shipbuilding market.
 A diversity of rivals with different cultures, histories, and philosophies make an
industry unstable. There is greater possibility for mavericks and for misjudging rival's
moves. Rivalry is volatile and can be intense. The hospital industry, for example, is
populated by hospitals that historically are community or charitable institutions, by
hospitals that are associated with religious organizations or universities, and by
hospitals that are for-profit enterprises. This mix of philosophies about mission has
lead occasionally to fierce local struggles by hospitals over who will get expensive
diagnostic and therapeutic services. At other times, local hospitals are highly
cooperative with one another on issues such as community disaster planning.
 Industry Shakeout. A growing market and the potential for high profits induce new
firms to enter a market and incumbent firms to increase production. A point is
reached where the industry becomes crowded with competitors, and demand cannot
support the new entrants and the resulting increased supply.
The industry may become crowded if its growth rate slows and the market becomes
saturated, creating a situation of excess capacity with too many goods chasing too few
buyers. A shakeout ensues, with intense competition, price wars, and company failures.
BCG founder Bruce Henderson generalized this observation as the Rule of Three and
Four: a stable market will not have more than three significant competitors, and the

49
largest competitor will have no more than four times the market share of the smallest. If
this rule is true, it implies that:

 If there is a larger number of competitors, a shakeout is inevitable

 Surviving rivals will have to grow faster than the market
 Eventual losers will have a negative cash flow if they attempt to grow
 All except the two largest rivals will be losers
 The definition of what constitutes the "market" is strategically important.

Whatever the merits of this rule for stable markets, it is clear that market stability and
changes in supply and demand affect rivalry. Cyclical demand tends to create cutthroat
competition. This is true in the disposable diaper industry in which demand fluctuates
with birth rates, and in the greeting card industry in which there are more predictable
business cycles.

6.4: The Bargaining Power of Buyers

The power of buyers is the impact that customers have on a producing industry. In
general, when buyer power is strong, the relationship to the producing industry is near to
what an economist terms a monophony - a market in which there are many suppliers and
one buyer. Under such market conditions, the buyer sets the price.

In reality few pure monopolies exist, but frequently there is some asymmetry between a
producing industry and buyers.

Buyers are Powerful if: Example

Buyers are concentrated - there are a few
buyers with significant market share
Buyers purchase a significant proportion
of output - distribution of purchases or if
the product is standardized
Buyers possess a credible backward
integration threat - can threaten to buy
producing firm or rival
DOD purchases from defense contractors
Circuit City and Sears' large retail market
provides power over appliance
manufacturers
Large auto manufacturers' purchases of
tires

50
 Buyers are Weak if: Example
Producers threaten forward integration - Movie-producing companies have
producer can take over own integrated forward to acquire theaters
distribution/retailing
Significant buyer switching costs - IBM's 360 system strategy in the 1960's
products not standardized and buyer
cannot easily switch to another product
Buyers are fragmented (many, different) - Most consumer products
no buyer has any particular influence on
product or price
Producers supply critical portions of
Intel's relationship with PC manufacturers
buyers' input - distribution of purchases

Table-6: Some factors that determine buyer power.

6.5: The Bargaining power of supplier

A producing industry requires raw materials - labor, components, and other supplies. This
requirement leads to buyer-supplier relationships between the industry and the firms that
provide it the raw materials used to create products. Suppliers, if powerful, can exert an
influence on the producing industry, such as selling raw materials at a high price to
capture some of the industry's profits.

Suppliers are Powerful if: Example

Credible forward integration threat by
suppliers
Suppliers concentrated
Significant cost to switch suppliers
Baxter International, manufacturer of hospital
supplies, acquired American Hospital Supply, a
distributor
Drug industry's relationship to hospitals
Microsoft's relationship with PC manufacturers

Customers Powerful Boycott of grocery stores selling non-union

picked grapes

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 Suppliers are Weak if:
Many competitive suppliers - product is
standardized
Purchase commodity products
Credible backward integration threat by
purchasers
Concentrated purchasers
Customers Weak
Example
Tire industry relationship to automobile
manufacturers
Grocery store brand label products
Timber producers relationship to paper
companies
Garment industry relationship to major
department stores
Travel agents' relationship to airlines

Table-6: Some factors that determine supplier power.

6.6: The Threat of Substitute Products

The final force in porter’s model is the threat of substitute producers. In Porter's model,
substitute products refer to products in other industries. To the economist, a threat of
substitutes exists when a product's demand is affected by the price change of a substitute
product. A product's price elasticity is affected by substitute products - as more
substitutes become available, the demand becomes more elastic since customers have
more alternatives. A close substitute product constrains the ability of firms in an industry
to raise prices.
The competition engendered by a Threat of Substitute comes from products outside the
industry. The price of aluminum beverage cans is constrained by the price of glass
bottles, steel cans, and plastic containers. These containers are substitutes, yet they are
not rivals in the aluminum can industry. To the manufacturer of automobile tires, tire
retreads are a substitute. Today, new tires are not so expensive that car owners give much
consideration to rethreading old tires. But in the trucking industry new tires are expensive
and tires must be replaced often. In the truck tire market, rethreading remains a viable
substitute industry. In the disposable diaper industry, cloth diapers are a substitute and
their prices constrain the price of disposables.
While the threat of substitutes typically impacts an industry through price competition,
there can be other concerns in assessing the threat of substitutes. Consider the
substitutability of different types of TV transmission: local station transmission to home
TV antennas via the airways versus transmission via cable, satellite, and telephone lines.
The new technologies available and the changing structure of the entertainment media are
contributing to competition among these substitute means of connecting the home to
entertainment. Except in remote areas it is unlikely that cable TV could compete with
free TV from an aerial without the greater diversity of entertainment that it affords the
customer.

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6.7: Brand Loyalty

Brand loyalty is nothing but buyer’s preferences to a product of particular companies. A

company can create brand loyalty by adding new value to the consumer demand. Value
can be added through continuous advertising of brand & company names, patent
protection of products, product innovation achieved through its research and development
programs, an emphasis on high product quality and good after sales service. Now some
other techniques of brand loyalty are given below:

 Quality product and services provide.

 Value adds service..
 Establishing strong customer relationship in the long run.
 Warranties & Guaranties.
 Advertising Continuously.

6.8: Absolute Cost Advantages

Absolute cost advantages usually arise from three main sources; such as:

 Superior production operations due to past experience, patents or secret process.

 Control of particular inputs required for production such as labor, materials,
equipment or management skills.
 Access to cheaper fund.

If cost advantage is significant, a new entrant faces the dilemma of either entering on
small scale and suffering a significant cost disadvantage or entering on large scale and
bearing the large risk of significant capital costs.

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 Chapter

7
Report’s Body

Body of the Report

Factors of perception of Consumers and Customers

54
7.1: Body of the Report

In the part of literature review I gave a standard of research process through which
booming research can be done. So to conduct my research completely I also followed that
research method in the following way:

7.1.1: Plan the research problem

This is the initial stage of the research process and here it has been identified for what
purpose or for what problem has to conduct the research. So in this case it has been make
myself clear that it has been going to conduct my research on “An Analysis of Marketing
Strategy Practiced by O’Potato”

7.1.2: Shaping the sampling

Conducting my research successfully I should determine both the sample size and a
particular sample design. There are various ways to determine the sample design those
are: Simple random sampling, Quota sampling, Convenient sampling, Cluster sampling,
etc. For conducting research it has been chosen random sampling cause through this
sample design it can choose the sample design in accordance with my convenience. To
make this research productive I took 50 respondents from my three convenient areas such
as: Wari, Dhanmondi, and Siddeswari. And I also visited 18 departmental stores of the
areas which I mentioned above.

7.1.3: Gathering the data

There are several ways of collection data such as: Personal interview, Telephone
interview, Observation and E-mail, etc. Here in this research I have been used both
observation and personal interview to collect valuable data from the consumer and all of
this data is also entitled as primary data.

7.1.4: Analysis of data

After collecting data I have to analyze it to find out the actual picture that is hidden
within the respondent’s answers of my questions. For analyze the data I used MS Excel
and SPSS, because through this application I can perform my analysis accurately and
also can present out comes in graph design and all of these things can be done very
easily.

55
7.2: Factors of perception of Consumers and Customers

By conducting the research, I found some important factors that affect the perception of
both the consumers and customers also.

7.2.1: From the seller point of view

 We sell potato crackers because maximum number of consumer demands that.

 We sell potato crackers because number kids prefer the product.
 We don’t sell O’Potato because few consumers demand that brand.
 We don’t sell O’Potato because supply of the chips is not available.

7.2.2: From the consumer point of view

In terms of questionnaire my respondents provided some major clues regarding O’Potato

chips, those are:

 Try to make an interesting advertisement.

 Try to arrange awareness program, where people gather most.
 Influence celebrity to endorse your brand

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 Chapter

8
Industry Analysis

The risk of new entry by potential competitors:

Rivalry among Established Companies
The Bargaining Power of Buyers
The Bargaining Power of Suppliers
Threat of Substitute Product

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8.1: The risk of new entry by potential competitors

8.1.1: Threat of New Entrants depends on the following criteria

 Economies of scale.
 Capital / investment requirements.
 Customer switching costs.
 Access to industry distribution channels.
 Access to technology.
 Brand loyalty. Are customers loyal?
 The likelihood of retaliation from existing industry players.
 Government regulations. Can new entrants get subsidies?

Potential competitors of the industry of potato chips

 Pran
 Haque Brothers
 Lays
 Alamin food products
 Bombay sweets. etc.

Above companies successfully penetrated in many countries Potato chips industry as well
as home country and make the market more competitive for others. These are
international competitors but in local the industry’s companies may also face strong
competition from local companies.

When O’Potato chips intern in the market of Bangladesh then they got strong competition
from other existing companies. Because on that occasion the Potato crackers, Lays,
Pran chips and others are the establish brand in our country. On that time they were
doing their business in their way and something like O’Potato need to penetrate the
market to capture. So O’Potato price is 8tk which is low compare to other brand.

8.1.2: Brand Loyalty

Under brand loyalty there are several point need to be covered, they are given below:

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8.1.3: Quality product and service

Providing quality product and service is very important to attract consumer. Whenever a
new company wants to get into the market of potato chips of Bangladesh then they
should think very much cautiously about their quality of product.
8.1.4: Warranty & Guarantee
If a company wants to add with the Bangladesh’s potato chips industry then first they
must cautious very much that the consumers can find the manufacture and expire date of
the product. Company also have to provide batch no BSTI seal and also provide the list
and amount of ingredients which have been used to make the product.

8.1.5: Value Add Service

Value added services are a term that is used to refer to service options that are
complimentary to but also ancillary to a core service offering. The term is utilized widely
in a number of industries, most notably telecommunications. Value added services are
often introduced to customers after the client has purchased the core service that these
ancillary offerings center around.
In some instances, a value added service is something extra that is provided to a customer
at no additional charge. At other times, the ancillary service is offered to an existing
customer as an added service that is available for a modest additional fee. The actual
pricing structure for value added services will usually depend on whether the providers
sees the services as amenities The Company who are operating within the Potato chips
industry of Bangladesh currently providing following value add services, they are:
8.1.6: Pack Design
In a time that calls for more effective marketing strategies, Packaging is fast-becoming a
brand marketer’s most-favored marketing tool. Bringing together retail executives and
consumer packaged goods marketers, along with their package design and development
teams, to offer real-world examples of the powerful influence packaging has on consumer
buying decisions—a critical objective in today’s tight economy. Companies are now also
making creative and unique pack design to differentiate their product from their
competitors.

8.1.7: Colorful Packaging

Outlook is an important thing to gain customers first attention. Recently companies are
also care about their product outlook for that reason they are providing top class color
combination for packaging.

8.1.8: List of Ingredients

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Consumer are very careful, they want to know what has been used to produce the
product. Now days both consumers and Govt. are conscious about the public health so
now all the companies providing the list and also the amount which they used to prepare
the product.

8.1.9: Transparent Pack design

This latest innovation from Transparent Packaging aims to bring the smell of products
out of the packaging without resorting to unsightly ‘scratch and sniff stickers’. David
Dennison, president of Transparent Packaging, told Cosmetics Design, “The selling
feature of a perfume is the fragrance itself and normally customers have to open the
bottle or use a scratch and sniff card to smell the fragrance. With this innovation
companies can show off the fragrance on the packaging without affecting the graphics.”
It is also a value add service through which consumers can have a crystal clear view
what’s the product actually look like.

8.1.10: Consumer promotion Program

For creating awareness and make product more accepted to the customer companies run
consumer promotion program on a particular product that means if a consumer buy that
he or she will get a certain gift, price off, coupons, free additional product , etc.

8.1.11: Trade Promotion Program

Trade promotion is given to the business person usually (retailer, wholesaler) to increase
the sake volume. It just opposite of consumer promotion cause here the target people to
promote is the shop owners, companies run this program to available their product into
the market means want to increase the market share rather than their competitors.

8.1.12: Event sponsor

Event sponsor refers to the patronizing the national event or local cultural activities.
Sometime companies arrange event to promote people through concert, d j party, hosting
a program or fair, celebrate our cultural as well as independence, 31st night program etc.

So for a new chips company entry into the market of Bangladesh then the company has to
ensure all of the value added service that we mentioned above because all of these are
successfully provided by the existing companies including Potato crackers, Al-Amin
foods Pran potato crackers and others.

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8.1.13: Continuous Advertisement

The paid, public, non-personal announcement of a persuasive message by an identified

sponsor; the non-personal presentation or promotion by a firm of its products to its
existing and potential customers. The companies which are now operating business in the
industry of potato chips have ensured unremitting advertisement in both electronic media
and print media. They also provide advertisement on billboard to remind their consumers
that they are always connect with them. So that if any new company wants to enter into
the industry of chips than they have to ensured that they provide continuous
advertisement and for these they have to face strong competition from existing
companies.

8.1.14: Strong Customer relationship

We hear a lot about public relations in the marketing and advertising world, but what the
true benefits of public relation are. It is important to have a solid understanding of how
the press works. Use these resources to learn how to leverage public relations and make it
work for you. All the companies which are currently operating business in Bangladesh
have successfully ensured that they are capable of providing strong customer relationship
through their advertisement and quality product.

8.2: Absolute Cost Advantage

The cost advantage one company has over another if it has a cheaper source of raw
materials, control of superior knowledge through patents, cheaper manufacturing or
assembly costs, or similar benefit.

8.2.1: The Absolute cost advantages depend on the following criteria

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8.2.1.1: Efficient production process

The raw materials and goods obtained are manufactured into the final product. Value is
added to the product at this stage as it moves through the production line. The fact is that
these companies are providing quality product to their customers so that they are able to
maintain effective production process which means they are generating new products
increasing both the product line and product depth to hold and promote existing as well
as potential users. That means new potato chips Company must contain the capability to
introduce new types of product and must have well sours of raw materials on continuous
basis.

8.2.1.2: Patents

The legal right of exclusive use and license granted by a government to the person who
invents something. Patents aren't the only barriers to entry, requirements for the
investment extremely high up-front capital costs or the need for expert skills that are in
very short supply would also be barriers to entry. They have to make patents to protect
their logo, symbol, tune etc. So that other company cannot make copy of it. So the new
company has to ensure that they make patent before entering into the potato chips
industry of Bangladesh.

8.2.1.3: Good relationship with supplier

The malt beverage companies have to maintain a good relationship with their supplier
such as: Sky pet, LG, Vessel, etc. Because if one of the company are unable to maintain
good relationship with its supplier than it will open an opportunity for rival companies to
take away the supplier and gain competitive advantage. So the new company has to
ensure that they maintain a good relationship with its supplier companies.

8.2.1.4: Management skills

In new businesses, "management" is often considered "whatever needs to be done just to

keep things afloat". However, for your business to grow and remain healthy, you must
master certain basic skills in management and leadership -- skills that will help you avoid
the crisis situations where you have to do "whatever it takes to stay afloat". The basic

62
skills include problem solving and decision making, planning, meeting management,
delegation, and communications and managing yourself. So that new entrance company
has to ensure that their management is capable enough to complete the existing
companies and also have to make very important contribution to the economy of
Bangladesh.

8.2.1.5: Govt. regulation

There are some Govt. rules and regulations are imposed towards FMCG producing
companies among them which are most important are listed below:

 A company must have to use BSTI logo to their product.

 Company has to provide the list and amount of ingredients.
 Company have to give manufacture date and also expire date printed on the product
package.
 Every food production company should recollect his date expired product from the
market place.
8.2.1.6: Barriers to Entry and Competition
The existing situation of the FMCG industry is extremely sensitive and there is a still
chance for a new company to tap into market and get a handsome market share cause the
market contain a large number of FMCG producing companies who serving quality
product but still have to struggle hard to hang on their market share along with their
competitors.

8.3: Rivalry among Established Companies

Here are some basic criteria to prove the rivalry among established chips producing
companies in Bangladesh.

8.3.1: Competitive Structure

The actual picture of the competition of the Industry is fragmented, because no company
is driving though there are large numbers of companies in the market.

8.3.2: Demand conditions

The condition of demand in the industry is dramatically growing up since these

companies are dealing with the fundamental need of a human being. Presently these
companies are going to produce new types of chips with different flavored which will
also added value and quality towards consumer of Bangladesh.

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8.3.3: Exit Barriers

 Chips producing companies cannot exit because of high competition.

 At a standstill chips industry is one of the most uniquely profitable industries of the
Bangladesh economy, so Govt. will provide all sorts of necessary service to
embrace this industry.
 Such an industry, it can provide a large amount of foreign remittance, if government
extends his hand with a view to help for going international.

8.4: The Bargaining Power of Buyers

According to the chips companies of Bangladesh the bargaining power of buyers is high
because of many competitors. By interviewing of Mr. Shafiqul Islam Tushar (DGM,
Brand Marketing) it has been discovered that buyers are basically performed for their
own benefit. Outsourcing activities as well as make agreement on a particular company to
accumulate their required resources though some buyer contain the capability to make
vertical integration with supplier or may have the power to establish a supplier company
by itself. But in general it does not happen because making vertical integration or
establish a supply company will make the development of the company too much
complex to handle.

8.5: The Bargaining Power of Suppliers

A producing industry requires raw materials - labor, components, and other supplies. This
requirement leads to buyer-supplier relationships between the industry and the firms that
provide it the raw materials used to create products. Suppliers, if powerful, can exert an
influence on the producing industry, such as selling raw materials at a high price to
capture some of the industry's profits. I found that there are large numbers of suppliers
who provide necessary raw materials to the buyers. But now the problem all of these
supplier unable to provide high class raw material rather than most of them are able to
provide standard raw materials. So there few suppliers company whose contain the
capability to provide high class raw materials. For color design they contact with other
companies such as, color matrix and for pack design these companies contact with
advertising firm such as Adcomm, Grey, etc.

8.6: Threat of Substitute Product

As earlier I said that Bangladesh has a large FMCG producing company. Among whom
most companies are producing chips. So a huge number of substitute brand are available
in the market against food and beverage. Such as:

64
  Local potato chips – Potato crackers, Keen potato chips, Bombay ring chips.
 Imported foreign chips- Lays.
 Fast food- Burger, Hot Dog, Pizza. French fry .etc.
 Local handmade paper.
 Homemade cake.
 Homemade chips.

From the above list of substitute product we see that there is a strong competitive threat
for chips producing industry. But so far these companies are competent enough to hold a
good market share and the market share of these companies are increasing because they
are able to produce new value added product continuously. O’Potato producing company
has introduced 2 different color packs with two different tests in the market. So it is
matter of joy companies are very much aware of their substitute product and that’s why
these companies always try to bring some quality to their target customer with new look
and shape so that there customer not move towards to their competitors’ products.

Chapter

9
Study on Marketing Strategy

65
 Marketing
Positioning
Product Positioning Strategies
Product positioning process
Positioning concepts
Measuring the positioning
Positioning Strategy:
Using an effective positioning strategy
Markets Positioning Strategies
Developing a positioning strategy

9.1: Marketing

A social and managerial process by which individuals and groups obtain what they need
and want through creating exchanging products and value with others. It is the 'relative
competitive comparison' their product occupies in a given market as perceived by the
target market.

Although marketing is a social and managerial process but there are some way to develop
the process. For achieving the actual marketing any company should follow the system.
A company should do the followings:

 Analyze the marketing opportunities.

 Selecting target market.
 Developing the marketing MIX.
 Managing the marketing effort.

66
A company must have to find out its marketing opportunities to move with a high
potentiality. After finding Opportunities Company should select the targeted customer.
Then marketing MIX has to be developed and marketing effort will have to be managed
well. All the marketing activities are done only for making position in the customer mind.

9.2: Positioning

Positioning refers to the arrangement for a product to occupy a liar, distinctive and
desirable place relative to competing products in the mind of target consumer. There are
different definitions of Positioning, probably the most common is: "A product's position
is how potential buyers see the product", and is expressed relative to the position of
competitors.

Positioning is a concept in marketing which was first popularized by Al Rise and Jack
Trout in their bestseller book “Positioning - a battle for your mind".

This differs slightly from the context in which the term was first published in 1969 by
Jack Trout in the paper "Positioning" is a game people play in today’s me-too market
place" in the publication Industrial Marketing, in which the case is made that the typical
consumer is overwhelmed with unwanted advertising, and has a natural tendency to
discard all information that does not immediately find a comfortable (and empty) slot in
the consumers mind. It was then expanded into their ground-breaking first book,
"Positioning: the Battle for Your Mind", in which they define Positioning as "an
organized system for finding a window in the mind. It is based on the concept that
communication can only take place at the right time and under the right circumstances."

Positioning is important, but for that every company need to select their target customer,
because a targeted customer segment will direct the total marketing strategy well.
Company set its marketing program according to the targeted customer behavior. It is the
aggregate perception the market has of a particular company, product or service in
relation to their perceptions of the competitors in the same category. It will happen
whether or not a company's management is proactive, reactive or passive about the on-
going process of evolving a position. But a company can positively influence the
perceptions through enlightened strategic actions.

9.3: Product positioning process

Usually, the product positioning process involves:

 Defining the market in which the product or brand will compete (who the relevant
buyers are)

67
  Identifying the attributes (also called dimensions) that define the product 'space'
 Collecting information from a sample of customers about their perceptions of each
product on the relevant attributes.
 Determine each product's share of mind.
 Determine each product's current location in the product space.
 Determine the target market's preferred combination of attributes (referred to as an
ideal vector)
 Examine the fit between:
 The position of your product
 The position of the ideal vector
 Position.

The process is similar for positioning your company's services. Services, however, don't
have the physical attributes of products - that is, we can't feel them or touch them or show
nice product pictures. So you need to ask first your customers and then yourself, what
value do clients get from my services? How are they better off from doing business with
me? Also ask: is there a characteristic that makes my services different?

Write out the value customers derive and the attributes your services offer to create the
first draft of your positioning. Test it on people who don't really know what you do or
what you sell, watch their facial expressions and listen for their response. When they
want to know more because you've piqued their interest and started a conversation, you'll
know you're on the right track.
9.4: Positioning concepts

More generally, there are three types of positioning concepts:

 Functional positions
 Solve problems
 Provide benefits to customers
 Get favorable perception by investors (stock profile) and lenders

 Symbolic positions
 Self-image enhancement
 Ego identification
 Belongingness and social meaningfulness
 Affective fulfillment

 Experiential positions
 Provide sensory stimulation
 Provide cognitive stimulation

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9.5: Measuring the positioning

Positioning is facilitated by a graphical technique called perceptual mapping, various

survey techniques, and statistical techniques like multi-dimensional scaling, factor
analysis, conjoint analysis, and logic analysis.

9.6: Positioning Strategy

Marketers can follow several positioning strategy. They can position their product
according to the product attributes, usage occasion, against a competitor, away from
competitor or for different product class. A Positioning plan results in the image you
want to draw in the mind of prospect, the picture you want him/her to visualize of you
what you offer, in relation to the market circumstances, and any competition you may
have".

The positioning task consists of three steps

 Identifying a set of possible competitive advantage on which to build a position.

 Selecting the right competitive advantage , and
 Effectively communicating and delivering the chosen position to the market.

Marks a positioning testimonial should not be a difficult assignment. For starting

off, first we must fix on the following:
 Your purchaser: The type of customer we target.
 The benefits: What you can do for our customers.
 The method: How you do it.
 The USP: Why we do it better than the competitors. (As we may know, USP stands
for "unique selling proposition".)

We enclose a positioning strategy, we can't use it to sell your manufactured goods, which
require a far more multifaceted process, and so what is the strategy for?

We will use our positioning strategy to design all our marketing communications, and put
together it with every aspect of our marketing program. Any and everything will do as a
part of our marketing program, from web site design to product packaging and
advertising, should aim mostly at convincing customers of the points contained in our
positioning declaration. Our positioning statement reflects what we need to communicate
about a specific product, and to whom, so we will always hit the right key,
communicating the right message to the right prospect at the right occasion. It must stress

69
here, the most significant purpose for having a positioning statement, is to make sure that
all our communications are consistent with its content. There is no point in having so
many different messages for the same product, that lake consistency. That is what it has
wanted to say, company must integrate their positioning statement with their marketing
program, in all aspects.

Every marketing program should cover only one product hence must not reflect more
than one clearly stated positioning strategy, so:

1 product = 1 marketing program = 1 positioning statement

One last point to ensure the effectiveness of strategy, which may seem too obvious yet
often ignored: Customer must also get the message are conveying, the way organization
meant it to be.

9.7: Using an effective positioning strategy

It is not a matter what business’s product or service is an effective positioning strategy is
key to success. Let’s assume you are selling rain barrels in a period when we have not
experienced a lot of rain for a while. You could make the outrageous guarantee that if it
rains so many inches by a certain date, which you’ll give away the rain barrels for free -
this is a part of your positioning strategy. Or another slant to the strategy could see you
suggesting that you’ll celebrate by giving customers who bought rain barrels a weed
trimmer for free, or some other product you are selling.
9.8: Markets Positioning Strategies

After selecting its target market, by the organization, the next phase is to make a decision
how it wants to position itself within that chosen segment. Positioning refers to ‘how
organizations want their consumers to see their product’. What message about the
product or service is the company trying to place in the mind of consumers?

9.9: Developing a positioning strategy

Developing a positioning strategy depends much on how competitors position

themselves. Do organizations want to develop ‘a me too’ strategy and position
themselves close to their competitors so consumers can make a direct comparison when
they purchase. Or does the organization want to develop a strategy which positions
themselves away from their competitors? Offering a benefit which is superior depends
much on the marketing mix strategy the organization adopts. The pricing strategy must
reflect the benefit offered and the promotion strategy must communicate this benefit.
Eventually positioning is about how you want consumers to distinguish your products

70
and services and what strategies you would adopt to reach this perceptual goal. For more
information please read Perceptual.

9.10: Product Positioning Strategies

Positioning is what the customer believes about your product’s value, features, and
benefits; it is a evaluation to the other available alternatives offered by the competition.
These beliefs have a propensity to base on customer experiences and evidence, rather
than awareness created by advertising or promotion. Marketers manage product
positioning by focusing their marketing activities on a positioning strategy. Pricing,
promotion, channels of distribution, and advertising all are geared to maximize the
chosen positioning strategy.
In general, there are six basic strategies for product positioning

 By attribute or benefit- It is the most often used positioning strategy. For a light
beer, it might be that it tastes great or that it is less filling. For toothpaste, it might be
the mint taste or tartar control.

 By use or application- The users of micro-soft operating system in decks-top

computer is much easy than Linux or Mackintosh operating system. Apple positions
its computers based on how the computer will be used.

 By user- JobsA1 is a largest job site used exclusively by job sicker .Facebook is a
social networking site used exclusively by college students. Facebook is too cool for
My Space and serves a smaller, more sophisticated cohort. Only college students
may participate with their campus e-mail IDs.

 By product or service class- Margarine competes as an alternative to butter.

Margarine is positioned as a lower cost and healthier alternative to butter, while
butter provides better taste and wholesome ingredients.

 By competitor- BMW and Mercedes often compare themselves to each other

segmenting the market to just the crème de la crème of the automobile market. Ford
and Chevy need not apply.

 By price or quality- McDonalds and Domino’s pizza both sell Fast-food. Domino’s
pizza wants us to believe that their foods are of the highest quality, while McDonalds
tells us that we can provide quality with cooperative low price.

Positioning is what the customer believes and not what the provider requirements them to
believe. Positioning can change due the counter actions taken at the competition.

71
Managing product positioning requires that you know your customer and that you
understand your competition; normally, this is the job of market research not just what
the industrialist thinks is true.

John Bradley Jackson brings street-savvy sales and marketing knowledge from Silicon
Valley and Wall Street. His resume also includes entrepreneur, angel investor, corporate
trainer, philanthropist, and consultant. His book is called “First, Best, or Different: What
Every Entrepreneur Needs to Know about Niche Marketing”

Chapter

72
 10
Discussion on Findings

Classification of data
Tabulation of data
Analysis and interpretation of data
Hypothesis test
Interpretation

10.1 Classifications of data

The process of arranging the data in to groups or classes according to correspondence and
similarities in technically called classification. Classification is the process of arranging
data in to sequences and groups according to their universal characteristics or separating
them in to different related parts.

Mostly, the data can be classified on the following four bases –

 Quantitative – According to magnitudes

73
  Geographical – According to cities & districts
 Qualitative – According to attributes
 Chronological – According to occurrence of events in time
The classification adopted for this study is quantitative and geographical classification.

10.2 Tabulation of data

Tabulation of data is one of the most important strategies of presenting the data in a
reduced and readily comprehensible form and attempts to finish the maximum possible
space, without sacrificing the quality and usefulness of the data.

According to ‘Prof. Owlet’ tabulation is the intermediate process between the

accumulation of data whatever form they are obtained and the final reasoned account of
the result shown by the statistics.

So tabulation refers to the systematic arrangement of the information contained in the

data in row and columns in accordance with some silent features or personality.

These may generally be classified in to two categories –

 Simple and complex tables
 General purpose and special purpose tables

10.3 Analysis and interpretation of data

After tabulation the data must be analyzed researcher often use statistical interpretation,
which concentrates or what is average or what deviates from average. Statistical
interpretation shows how widely responses vary and how they are distributed in relation
to the variable being measured. Statistics, marketers relay on estimates of expected error
or deviation from the true values of population. The analysis and interpretation of data
may lead researchers to accept or reject the hypothesis being selected.

Actual respondent from Sample

Particulars Respondent Percent

Respondent 50 31.25%
Total asking
160 100.0%
person

Graph 1:- Actual respondent from Sample.

74
From the above chart we can see that the actual respondent was 50 persons. Actually it
has been was bound to get at least 50 persons answer. But it was not an easy as easy to
say. It has been need to ask approximately 160 people for finding out the actual 50
respondents who are aware about the O’Potato. So if we turn it into the percentage we
can see that which about 31% is. So we can say that O’Potato has covered 30 (+/-)
percent market.

Classification of gender among respondent

Gender Respondent Percent

male 34 68%
female 16 32%
Total 50 100.0

Graph 2: Classification of gender among respondent

In my survey I tried to collect both male and female’s opinion. But it was tough to make
conversation with the female. In my project I was able to rich 32 percent female
respondent when male respondent was 68%.

Profession of the respondent

Profession Respondent Percent

Student 32 64%
Service 11 22%
Business 7 14%
Other 0 0%

Graph 3:- Profession of the respondent.

Among the 50 respondent most of them were student and others were business person or
service man. From the graph is easy to understand that 32 people are student when only 7
persons are business man. Rest 11 persons are service holder. So we can see that 62
percent of respondent are student and 22 percent are service person.

Age of the respondent

Responden Percen
Age limit
t t

75
 10-15 3 6%
16-21 37 74%
22-26 5 10%
27-32 3 6%
33-37 2 4%
Above 37 0 0%

Graph 4:- Age limit of the respondent.

As because O’Potato is a product basically for the teenagers, so I tried my level best to
ask the people who are in-between 15 to 35 of age. But the teenagers are not only the
customer. Sometime some aged people also purchase chips for various reasons. So
sometime I need to ask some aged people as well as young to find out the fruitful result.
Hence more than 35 people are in-between 16 to 21 when other respondent are 5 or less
than 5.So it is clear that 74% of my responder are in between 16 to 21 years, who are
considerate as teenagers according to the declaration of united nation.

Preference level of Consumer

Particulars Respondent Percent

Potato crackers 21 42%
O’potato 10 20%
Lays 13 26%
Piallo chocolate 3 6%
Others 3 6%

Graph: 5- Preference level of consumer on potato chips.

In the graph we see that the preference level of consumer on potato crackers are very high
almost 42 %.when the preference for of O’Potato is 20% and for lays is 26% percent. In
case of pillow chocolate and others are not significant one.

Source, how consumer known about O’Potato

Particulars Respondent Percent

TV AD 19 38%
Friends 7 14%
News Paper 12 24%
Others 12 24%

76
 total 50 100.0%

Graph 6:- Source, how consumer known about O;Potato.

Graph is showing that 38% of respondents here about O’Potato from the TV
advertisement, and 24 % are applicable for both newspaper and other source like bill-
board, poster, branded car. But amazingly, have seen that only 17% of people know about
O’Potato from his friends.

Purchase Habit

Shop Respondent Percent

Shop near home 14 28%
Super store 11 22%
Fast-food shop 7 14%
Departmental store 18 36%
Total 50 100%

Graph 7:- Consumer love to purchase from.

Though I thought that fast-food shop will get the most preference but I was absolutely
wrong. Responders usually prefer to purchase potato chips from departmental store. Here
we can see that 18 people among 50 people love to purchase from departmental when 14
people buy from shop near by the home. And only 11 people purchase from the super
store.

Reason behind choosing

Attributes Respondent Percent

Price 2 4%
Availability 25 50%
Test 13 26%
Pack Design 4 8%
AD 6 12%
Other 0 0%
Total 50 100%

Graph 8:- Reason behind choosing and purchasing the product.

77
Here we can find an interesting thing that people are giving priority to the availability in
making his or her purchase decision. People love to purchase the product which is
available in the market. After availability they think about the test of the product. Only 12
percent respondents says that advertisement influence them to purchase a particular
potato chips. Price has an insignificant role in purchasing.

Pack Design

Particulars Respondent Percent

Below average 0 0%
Average 11 22%
Above average 9 18%
Very good 8 16%
Good 17 34%
Excellent 5 10%
Total 50 100%

Fig 9:- Consumers judgment on the pack design of O’Potato.

In my questioner there was a question about the pack design of O’Potato. Respondent
were asked to put tick in the 5point scale. So from the graph we can see that only 10%
respondent think that it is excellent but all most 35% respondent responder saying this is
good, when 22% believe that pack design of O’Potato is average. Beside this 18% people
is saying above average.

Consumer’s attitude

Scale Respondent Percent

Below average 0 0%
Average 6 12%
Above average 21 42%
Very good 7 14%
Good 12 24%
Excellent 4 8%
Total 50 100%

Graph 10:- Consumers attitude about the quality of O’Potato.

78
 Quality is main factor of any product. A low quality product does not exist in market for
long time. So responder was asked about the O’Potato chips. For this sample product
were provided to test. Above 20 people give it above average when les than 5 people are
giving it excellent. In case of god and very good it is only 12 and 7 persons.

The Table of the Statistical Overview of Likert Scale (Percentage)

Determina Strongl Disagree Somewhat Neither Somewhat Agree Strongly

nts of y Disagree disagree Disagree Agree
Positioning Disagre nor
e agree
Advertisem
ent of
O’Potato is
comparative
ly better 6% 0% 60% 14% 12% 8% 0%
than other
chips
advertiseme
nt.
Its packet is
attractive to 0% 10% 6% 50% 24% 6% 4%
look
Packet size
10% 30% 0% 20% 24% 16% 4%
is quite ok
Its packet
color can
easily
14% 0% 2% 16% 2% 56% 10%
attract
consumer in
its first look
I can
quickly
recall the
16% 10% 20% 10% 32% 0% 12%
symbol or
logo of
O’Potato
O’Potato
has strong 12% 0% 18% 20% 18% 24% 8%
personality
O’Potato is 4% 6% 10% 14% 4% 56% 6%

79
different
from its
competing
brand
O’Potato
has
undoubtedl
y the best 10% 0% 16% 40% 30% 0% 4%
quality in
the
marketplace
I can
always trust
on O’Potato
6% 10% 10% 26% 28% 18% 2%
if I want a
product of
high quality
The quality
of O’Potato
0% 0% 34% 12% 0% 44% 10%
o is very
high
I consider
myself to be
0% 14% 32% 20% 26% 6% 2%
loyal to
O’Potato
I always
buy 10% 0% 22% 54% 6% 2% 6%
O’Potato
If I were
asked for a
recommend
ation, I
2% 0% 62% 6% 0% 18% 12%
would
suggest to
buy
O’Potato
I
recommend
O’Potato 10% 0% 18% 44% 16% 10% 2%
whenever I
can

80
It makes
sense to buy
O’Potato
instead of
any other
0% 14% 0% 24% 36% 16% 10%
brand, even
if they are
in the same
in quality or
price
Even if
another
brand has
the same
features as
0% 12% 8% 10% 20% 46% 4%
O’Potato, I
would
prefer to
buy
O’Potato
If there is
another
brand as
good as
6% 8% 20% 14% 0% 34% 18%
O’Potato, I
prefer to
buy
O’Potato
If another
brand is not
different
from
O’Potato in
8% 0% 10% 6% 46% 20% 10%
any way, it
seems
smarter to
purchase
O’Potato

10.4: Hypothesis Test

From the above study the testing of hypothesis is shown below –

81
SPSS output Cross tabulation on Pack size and Prefer to Buy
Case Processing Summary

Cases
Valid Missing Total
Percen Percen
N Percent N N
t t
Pack size 100.0
50 100.0% 0 .0% 50
* Prefer %

Pack size * Prefer Cross tabulation

Prefer Total
nighte
some
r somew
disa what strongl
disagr hat agree
gree disag y agree
ee nor agree
ree
agree
Pac
strongly
k Count 5 0 0 0 0 0 5
disagree
size
%
83.3
within .0% .0% .0% .0% .0% 10.0%
%
Prefer
disagree Count 1 4 5 5 0 0 15
%
16.7 100.0 100.0
within 50.0% .0% .0% 30.0%
% % %
Prefer
nighter
disagree Count 0 0 0 5 5 0 10
nor agree
%
21.7
within .0% .0% .0% 50.0% .0% 20.0%
%
Prefer
somewhat
Count 0 0 0 0 12 0 12
agree
%
52.2
within .0% .0% .0% .0% .0% 24.0%
%
Prefer
agree Count 0 0 0 0 6 0 6

82
 %
26.1
within .0% .0% .0% .0% .0% 12.0%
%
Prefer
strongly
Count 0 0 0 0 0 2 2
agree
%
100.0
within .0% .0% .0% .0% .0% 4.0%
%
Prefer
Total Count 6 4 5 10 23 2 50
%
100. 100.0 100.0 100. 100.0
within 100.0% 100.0%
0% % % 0% %
Prefer

Chi-Square Tests

Asymp.
Sig.
Value df
(2-
sided)
Pearson Chi- 137.621
25 .000
Square (a)
Likelihood
97.634 25 .000
Ratio
Linear-by-
Linear 37.511 1 .000
Association

83
 N of Valid
50
Cases

a. 34 cells (94.4%) have expected count less than 5. The minimum expected count is .08.

Symmetric Measures

Va Appr
lu ox.
e Sig.
Nominal 1.
by Phi 65 .000
Nominal 9
Crame .7
.000
r's V 42
Contin
gency .8
.000
Coeffi 56
cient
N of Valid Cases 50

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

Interpretation

 To get the relationship, here a cross tabulation analysis has been done. This analysis
has been done on the basis of ‘pack size’ and ‘Prefer to buy’ category.

 The null hypothesis (Ho) taken by the researchers was that, there is no relationship
between pack size’ and prefer.

84
 On the other hand, the alternate hypothesis (H1) was that, there is a relationship
between pack size’ and prefer.

 On a .05 level of significance, with 25 degrees of freedom, the critical value derives
as 37.652s, where the chi-square value calculated by the SPSS output is, 137.621.

 Thus the Ho is rejected and alternative H1 is accepted, So it shows that there is a

relationship between pack size’ and prefer.
 For measurement the relationship we can see that Phi & Contingency Coefficient
shows the strong relationship whereas Cramer's V shows the weak relationship
between the pack size’ and prefer.

SPSS output cross tabulation on Age and Brand

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Age *
50 100.0% 0 .0% 50 100.0%
Brand

Age * Brand Cross tabulation

Brand Total
Pillow
choco Potato
O'potato chips Lays crackers others
Age 10- Count
3 7 0 0 0 10
15
%
within 100.0% 18.9% .0% .0% .0% 20.0%
Brand
16- Count
0 3 0 0 0 3
21
%
within .0% 8.1% .0% .0% .0% 6.0%
Brand
22- Count
0 13 0 0 0 13
26
% .0% 35.1% .0% .0% .0% 26.0%

85
 within
Brand
27- Count
0 14 5 2 0 21
32
%
within .0% 37.8% 100.0% 66.7% .0% 42.0%
Brand
33- Count
0 0 0 1 2 3
37
%
100.0
within .0% .0% .0% 33.3% 6.0%
%
Brand
Total Count 3 37 5 3 2 50
%
100.0 100.0
within 100.0% 100.0% 100.0% 100.0%
% %
Brand
Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-
59.824(a) 16 .000
Square
Likelihood Ratio 40.798 16 .001
Linear-by-Linear
16.962 1 .000
Association
N of Valid Cases 50

a. 22 cells (88.0%) have expected count less than 5. The minimum expected count is .12.
Symmetric Measures

Value Approx. Sig.

Nominal by
Phi 1.094 .000
Nominal
Cramer's V .547 .000
Contingency
.738 .000
Coefficient
N of Valid Cases 50

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

86
 Interpretation

 For getting the relationship, here a cross tabulation analysis has been done. This
analysis has been done on the basis of ‘AGE and ‘BRAND’ category.

 The null hypothesis (Ho) taken by the researchers was that, there is no relationship
between pack size’ and prefer.

 On the other hand, the alternate hypothesis (H1) was that, there is a relationship
between pack size’ and prefer.

 On a .05 level of significance, with 16 degrees of freedom, the critical value derives
as 26.296, where the chi-square value calculated by the SPSS output is, 59.824.

For measurement the relationship we can see that Phi & Contingency Coefficient
shows the strong relationship whereas Cramer's V shows the weak relationship
between the pack size’ and prefer

Correlations between Quality and Purchase

Descriptive Statistics

Mean Std. Deviation N

Quality 4.84 1.530 50
Purchase 4.82 1.535 50

Correlations

Quality Purchase
Quality Pearson Correlation 1 .752(**)
Sig. (1-tailed) . .000
Sum of Squares and Cross-products 114.720 86.560
Covariance 2.341 1.767
N 50 50
Purchase Pearson Correlation .752(**) 1
Sig. (1-tailed) .000 .
Sum of Squares and Cross-products 86.560 115.380
Covariance 1.767 2.355

87
 N 50 50
** Correlation is significant at the 0.01 level (1-tailed).
Interpretation
 To get the association measurement, here a Correlations analysis has been done. This
analysis has been done on the basis of ‘Quality and purchase’ category.
 The Correlations value calculated by the SPSS output is, .752 what is not so close to
1.0 which means that Quality is lightly association with purchase.

Correlations between Attributes and Purchase

Correlations

Attribute Purchase
Attribute Pearson Correlation 1 .691(**)
Sig. (1-tailed) . .000
N 50 50
Purchase Pearson Correlation .691(**) 1
Sig. (1-tailed) .000 .
N 50 50
** Correlation is significant at the 0.01 level (1-tailed).
Interpretation

 To get the association measurement, here a Correlations analysis has been done. This
analysis has been done on the basis of ‘Attributes and purchase’ category.

 The Correlations value calculated by the SPSS output is, .691 what is not extremely
close to 1.0 which means that Attributes is not strongly association with the purchase.

Chapter
88
 11
Conclusion
and
Recommendation

CONCLUSION
SUGGESTION/RECOMMENDATION

89
 11.1: CONCLUSION

Throughout my working period, I gained a lot of valuable knowledge regarding the

operation of the entire beverage industry. The company AKIJ FOOD & BEVERAGE LTD
(AFBL) lately came in the business, and has already achieved a flourishing state with
some of its brands. I am highly obliged for being a part of this venture, and understanding
their business policies, operational structure, strategy formulation and implementations.
The comprehension gained from the marketing activities of AFBL enhanced my
knowledge portfolio to a greater extent. The Brand department of AFBL contributes
intensive effort regarding the brand building of the products. The reflection of the efforts
could be seen from the strategic marketing communicational theme and USPs of brands
like MOJO, SPEED, FRUTIKA, CLEMON etc. The pace at which AFBL is currently
accelerating, will undoubtedly lead the company to the peak of success where majority of
the market shares will be withhold by the brands of AFBL. I will be concluding my
research report by stating that, being able to work with a company which is in the growth
stage of the organizational life cycle (OLC), enabled me to captivated a bundle of
practical knowledge which will turn out to be a great support for my future strategy
formulations and implementations achievements.

90
 11.2: Recommendation

In during of my working it has been found that Akij Food & Beverage Limited is one of
the prominent native companies among the fast moving consumer goods producer which
has several product line and many more in pipe line to introduce. So in term of consumer
perception and positioning they should make in mind the following recommendation–

 Sales force should be more trained up and proactive to make awareness of the
consumer in the market of chips.

 Product availability should be maintained by the company.

 Production should be as per demand of the customer.

 Products flavor and test should be in accordance of consumer demand.

 Pack size and design might be usual.

 It is recommended that certain promotional activities to be undertaken in order to

effective the program like TV/Newspapers/Radio etc.

 The concerned sales & marketing executive should occasionally visit the remote
markets to encourage the customers.

 It is recommended that AFBL should arrange for training program of all the
employee, sales personnel and executives.

 Regular observation into the market and collect report that should be made
accurately.

 It is necessary to maintain a recovery team for the proper investigation instead of

doing the chips sales by sales people or employees.

 Proper utilization of the employee skilled in all scopes should be established.

91
 APPENDIX

Two different pack of O’Potato with two different taste and color

Vegetable Masala

Magic Masala

92
 Reference

 Principle of Marketing
Philip Kotler and Gary Armstrong.
 Advertising and Promotion
George E. Belch and Michael A. Belch.
 Sales Management
Gerald L. Manning and Barry L. Reece.
 Marketing Research
Naresh K. Malhotra.
 Consumer Behavior
Schiffman Leon G. Kanuk Leslie Lazar.
 Circulation papers and document from CTP.
 Several Daily Newspapers.
 Other Internet web site.
 Other CTP document and paper.
 www.google.com

 www.akij.net

 www.akijfood.com

 www.wikipedia.com

93
Sample copy of
Questionnaire

94
 A Concern of Akij Group

Dear Respondents,
As a student of M.B.A (Masters in Business Administration) at Stamford University
Bangladesh, doing specializing in marketing it has been given a project on “An Analysis
of Marketing Strategy Practiced by O’Potato in Bangladesh”

So I will request you to kindly spend a few minutes from your busy timetable to fill up
the questionnaire and make research a fruit full one.

Gender:
 Male  Female
Age between:
 10-15  16-21  22-26
 27-32  33-37  37 +

Education:
 Doctorate  Postgraduate  Undergraduate

 H. S. C  S.S.C  Below S. S. C

Profession:
 Student  Service holder  Businessman
 Other (please specify)………………………

Which chips is the most preferable to you?

95
  O’Potato
 Potato Crackers
 Pillow chocolate chips
 Lays
 Other (please specify)……………………
Did you hear the name of O’Potato?
 Yes
 No

If yes, please mention how you hear the name?

 From friends
 From TV advertisement
 From newspaper
 Others (please specify)………………………

In terms of Chips, which brand name comes first in your mind?

 O’potato
 Potato Crackers
 Pillow chocolate chips
 Lays
 Other (please specify)………………………

You purchase chips usually from…………..

 Shop near by the home
 From a superstore
 From a fast-food shop
 From a departmental store

Please mention the cause of that.

 Price
 Availability
 Pack Design
 Taste
 Advertisement
 Other (please specify)……………………

Have you tested O’potato?

 YES
 NO

96
If yes, how much you will give to its test?
 1 on 7 1=poor
 3 on 7 3=average
 5 on 7 5=good
 7 on 7 7=excellent
The pack design of O’potato is………………..
 Below average
 Average
 Above average
 Good
 Very Good
 Excellent

What do you think about the quality of O’potato?

 Below average
 Average
 Above average
 Good
 Very Good
 Excellent

What do you think about the pricing of O’Potato?

 Can be increased
 Reasonable
 Should decreased

Please rate the followings

(Strongly agree-7, 6-Agree, 5- Somewhat agree, 4- Neither disagree nor agree, 3-

Somewhat disagree, 2-Disagree, 1-Strongly disagree)

Determinants of Positioning 1 2 3 4 5 6 7
Advertisement of O’Potato is comparatively better than other
chips advertisement.
Its packet is attractive to look
Packet size is quite ok

97
Its packet color can easily attract consumer in its first look
I can quickly recall the symbol or logo of O’Potato
O’Potato has strong personality
O’Potato is different from its competing brand
O’Potato has undoubtedly the best quality in the marketplace
I can always trust on O’Potato if I want a product of high
quality
The quality of O’Potato is very high
I consider myself to be loyal to O’Potato
I always buy O’Potato
If I were asked for a recommendation, I would suggest to buy
O’Potato
I recommend O’Potato whenever I can
It makes sense to buy O’Potato instead of any other brand,
even if they are in the same in quality or price
Determinants of Positioning 1 2 3 4 5 6 7

Even if another brand has the same features as O’Potato, I

would prefer to buy O’Potato
If there is another brand as good as O’Potato, I prefer to buy
O’potato
If another brand is not different from O’Potato in any way, it
seems smarter to purchase O’Potato

Please provide your valuable Suggestions in terms of O’Potato

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Thank you once again for your kind help and co-operation

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