Team Members :
Khalid Hossain - ID 1220807090
Sajia Sharmeen - ID 1220808690
Zabin Khan - ID 1211019090
Faishal Chowdhury - ID 1220649090
Musabbir Ahmed - ID1220938090
Mosfequl Hassan - ID 072334090
Since 1954, The ACME Laboratories Ltd. has been doing their operation in Bangladesh and today, it is one of the most successful business conglomerates having sister concerns and investments in various sectors in lot other areas in Bangladesh.
This paper is written on a new product “Choco-Drink ” ,manufactured by the ACME Agrovet and Beverages Ltd., a sister concern of The ACME Laboratories Ltd. In addition to the overall analysis, this paper also provides us with a brief set of recommendations on marketing plan and promotion for positioning of the product .The ACME Agrovet and Beverages Ltd can launch this product to increase their product line, and with existing distribution network and sales force, they can come up with profitability. During the initial year on the market, we are aiming for unit sales volume 300,000 units for 250 ml Choco-Drink.
Current Market Situation
The Chocolate milk market in Bangladesh is not as huge as the other FMCG products’ market. But figures show that it is still a handy one and is worth investing in order to increase product line. There are three main players in the market Starship, Aarong and RD etc. The market is not very big. The demand of the products fluctuates according to the economic and market conditions because these are not necessary products. The Chocolate Milk segment is characterized by the presence of players each having a number of offerings in terms of platform and/or benefit offered. Brand| Packaging| Quantity| MRP| Trade Price|
Starship| Tetra Pak| 125 ml| 15 Tk| 13 Tk/13.5 Tk|
Aarong| Tetra Pak| 200 ml| 25Tk| 20 Tk to 23 Tk|
RD| SDP| 200 ml| 20 Tk| 11 Tk/11.5 Tk|
Benefit Propositions of the Major Players
The players play in the industry by price and coverage. The packaging is good for Starship and Aarong. For Milk Vita, the packaging is not the issue. The costs of packaging for Milk Vita are lower compared to the other two. That is why the pricing varies as such. We can see in the above pricing column that Aarong is targeting more premium segment and starship is just competing with it. Milk Vita is targeting popularized segment. This may be the reason as Milk Vita is a more non-profit making organization. Their main distribution relies on the distribution plan that they have for their other products like juice and milk. They use the same sales force to communicate with the retailers and distribute the products. The production facilities are the same. The choice remains that whether they use their production capacity to manufacture the other products which have demand, for example juice or they manufacture this product which have lower demand. The benefit propositions being offered by the major players in the market are as follows: Brand| Benefit|
Starship| Taste, Quality, Packaging and Price|
Aarong| Taste, Quality, Packaging|
RD| Quality and Price|
In order to strengthen their distribution strategy, the players provide incentive for the retailers in order to shelve and promote their products to the consumers. These strategies help them to persuade the retailers so that they can offer and these products. The retailers even persuade the consumers to buy these products of companies whose offers satisfy those most. The benefit segment is dominated by major players and their respective value share in the market is as follows:
Brand| Trade Offer|
Starship| They offer a margin of 2 tk to the retailers with occasional gifts like wall clock, wrist watch or show pieces. |
Aarong| They offer the highest trade margin ranging from 4 tk to 2 tk. They too provide the same...