Background of consumer Products (Snacks) Prior to 1990s small enterprise or house holds were engaged in production of such products.

They produced the products. Badam vaga, chanachur, Dal vaza etc at their home manually and soled to the local market, but in 1991. Pran group, the first and largest agro-based industry, started to produce these products using modern machinery and marketwise following modern marketing strategies and policies through out the country. Their success alered others to come up with the business and market interssed many large corparies coming into the market with different agro based products: these companies mainly include Dandy Foods, Al-Amin foods, BD foods, Arku foods, Shah foods etc. These companies try to buy the farming products from the local market but because of limited production they are to import from different countries. In recent days these companies are engaged in cut throat competition. A huge amount of capital has been invested in this industry by this time. So it production of farming can be increased and congenial business environment good prevails in the country, there is huge prospects of this industry.

Chapter two Abul Khair Consumer Products (snacks) come into being Abul Khair Consumer Products Ltd. Is a sisters concern of Abul Khair Group. It started its journey in the first part of June in 2004. It lounched some products like shah Dal vaga, Shah chanachus, shah Badam vaga etc. On trial basis in July of the same year. And finally it went for mass production and mass marketing in August in 2004. Location: Abul Khair Consumer Products (snacks) Ltd. Located at 277, Baized Bostani Raod, Nasirabad Industrial Area Chittagong Considering all thing it is one of the best industrial areas of the country.

Total Area of the factory Abul Khair Consumer Products (snacks) Ltd. Own and operates its factory in a plot of land measuring 3 areas (approximately). There are two units where different products are produced in semi-auto production process. Country of origin of machinery Abul Khair Consumer Products Ltd. Imports necessary machineries for smooth and efficient production from India and Jarman. Manpower: For smooth and round the clock operation Abul Khair has 15 staff and 150 workers. There markers and staffs and markers mark in 3 shits by rotation. They do not have any expatriate executive or staff. Environment concern:

They have no recycling process or wastage management process. But they seriously concern about the health of the employee. They try to keep hygienic marketing environment and ensure medical check before and post appointment of employee. Moreover they try to produce un hygienic products.

Risk Management: Abul Khair Consumer (Snacks) ltd. Purchases insurance policy against all types of probable risks. They seek advices from different exparts to minimize unexpected losses. Moreover they ensure easy access to fires services and law enforcing agencies to keep the probable loss securing easy entrance.
Organizational Structure
Factory Manager

Production Manager

General Manager

Production Supervisor

Production Supervisor

Accounce Executive

Personnel Executive

Workers

Workers

Infrastructural facilities: Abul Khair Consumer Products (snacks) Ltd. Being set up in an ideal industrial area in commercial capital city of Bangladesh enjoys all infrastructural facilities including natural gas, electricity, water supply transportation and communication facilities. Natural Gas Because of nature of industry it needs uninterrupted gas supply. To meet the intense demand the factory is linked to natural gas supply network. Electricity The factory is connected with high power electricity line and gets mostly unintrupted electricity. The factory own a 50 kw stand by Desil generator to ensure instant power supply when the above mentioned source is disconnected. Water Supply The factory is connected with city water supply line moreover it has its own deep tube-well which is sufficient to keep the factory running. Transportation facility: Abul Kahir consumers Ltd is located in Baized Bostami industrial area which is 15 km distant from Chittagong Port. Chittagong Rangamati interdestrict road has passed may in forul of the factory. So it has easy access to transportation network for both import and consignment to any other part of the country or world.

Communication facility: The factory has BTTB connection and it is connected with its corporate office and all other departments with in the factory through LAN. PRODUCTION PROCESS Production process is not full automatic. It consists of different manual and auto stages. Clean up stage: It is the first stage of production process. Here pulses, nut, are husked and cleaned up. Mix up stage: In the second stage different types of spices and colors are mixed with cleaned pulses and nuts. Incase of fired gram salted and spiced pulses are powdered and mixed with different types of species and colors. Frying stage: Here colored and spiced pulses are powdered and mixed with different types of species and colors. Frying stage: Here colored and spied pulses and nuts are tried in automatic machine. Packaging stage In this stage fired snacks are packed up in different sizes of packet and of different with the bhelp of automatic machine.

CHAPTER THREE PRODUCT STRATEGY Meaning of product A product is any thing that is offered to a market for attention, acquisition, use or consumption that can satisfy a want or need. Snacks is basically impulse goods people do not think of buying, just after seeing they by this type of products.

Types of product Products can be devided into two broas groups based on the types of consumers which are1. Consumer product 2. Industrial product Snacks are consumer products because these are directly bought and consumed by the customers. Consumers of the products Children to youth group mainly buy and consume the products. No special class of consumers ranging from rich to poor all people consume the products. Types of raw materials The following raw materials are used in production of snacks. i. ii. iii. iv. v. Pulses Flaner Different colors Different spices Small.

Sources of raw materials Raw materials are basically collected from domestic and international market. Abul Khair consumers Ltd. Mainly import from Australia Canada India

 European countries (Color and smell). PACKAGING STRATEGY Size of packet These products are packed in different sizes of packet

Weight of packet
400 GM 200 GM 100 GM 50 GM Packaging

Moster bag packet (40 Pices) 16 KG 16 KG 10 KG 10 KG

Packaging is very important for maintaining quality and attracting the customers. Sometimes good looking and attracting packet ensures market success of a product. Abul Khair consumers (Snacks) Ltd. uses High Density Polithin (HDP) for maintaining quality. Quality maintaining Abul Khair Consumers (Snaks) Ltd keep vigilant eye upon all thins and every stage of production. They examine quality at the following stages. 1. Collection of raw materials 2. Different stages of production 3. Hygienic production environment 4. Healthy workers. 5. Packaging (High Density Polithen) Branding

Rerhaps the most distinctive skill of professional marketers are their ability to create, maintain protect and enhance brands of its products and services. A brand name is a name, term, sign, system or design or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. Abul Khair Consumers (Snacks) Ltd. has developed brand name with their logo of group of companies in the following names. i. ii. iii. iv. Shaad Canachur Shadd Dalvaza Shad Badam vaza Shaad Potato creakers (in the pipeline)

Positioning Positioning is the act of designing the companys offering and image to occupy a distinctive place in the target markets mind. Abul Khair Consumers (Snacks) Ltd. launched its products into the market in August of to 2004. From the every start it has been facing tough competion because some other companies are operating in the market for long time. But since Abul Khair Group is a renowned group so it holds a strong position in the markets mind. More over Abul Khair Consumers (Snacks) Ltd. highly emphasizes on quality and charges comparatively less price than others. And as a result of their things it has been able to create a position in the market by they time. Position of Abul Khair Consumers (Snacks) Ltd.

They think they belong to the middle position in the market. But they observe their development rate is higher than that of others and they are hopeful to be market leaders in the coming future. Resource and Development Abul Khair Consumers (Snacks) Ltd. has a separate department with responsible people for continuing; reasurce and development nork. They are continually collecting market information and examining the competitors condition. They try to know whether the consumers are satisfied on not.

Chapter 4 Pricing strategy Introduction The amount of money charged for a product or services or sum of the values that consumers exchange for the benefits or having or using the products or services is price. Price is the marketing mix element that produces revenue but other produce costs. Price is also one of the most flexible elements. Prices are often set by the company boss. Factors effecting pricing decision A companys pricing decisions are affected by both internal and external factors which are given below: i ii iii iv Internal factors Marketing objective Marketing mix strategy Costs Others External factors Nature of market and demand Competition Other environmental factors (economy, government)

Abul khair consumer (Snacks) Ltd. Considers almost all the above mentioned factors in setting price. AKC mainly focuses on competitors costs, offers, prices AKC do not fluctuate prices with the change in demand. Since some other competitors are operating for longtime so pricing too much sensitive. But AKC does not compromise quality reducing price. AKC thinks if necessary price will be higher but quality can not be compromised AKC also considers the internal factors like companys profit, different costs which are completely controllable by the top management.

Pricing approaches AKC mainly following competition based pricing though a new company has few options to follow another pricing method except cost based pricing method but since some other companies are operating in the market AKC has to follow competition based pricing method. Despite these things it thinks of its costs and profits. Pricing strategy There are some widely exercised price quality strategy which are shown in a graph
Product Quality High 1. Premium strategy 4. Over charging strategy 7. Rip-off strategy Price Medium 2. High value strategy 5. Medium value strategy 8. False economy strategy Low 3. Super value strategy 6. Good value strategy 9. Economy strategy

High Medium Low

AKC adopts High value strategy. Because it does not compromise quality but change medium price. Pricing objectives: Pricing decisions are often affected by some objective set up earlier by the top management. A company can persue any of five following major objectives through pricing: i. ii. iii. iv. v. Survival Maximum profit Maximum market share Maximum market skimming Product quality leadership.

AKC has set up price of its products keeping the following objectives in view: i. ii. Survival Product-quality leadership.

Price adjustment Strategy A company follows different price adjustment strategies for various customer differences and changing situations. The main strategies are: I. Geographical pricing Geographical pricing means how the company price its products to different customers indifferent locations and countries. II. Discount pricing Reducing prices to reward responses such as early payment, purchase volume, and off season buying. III. Discriminatory pricing Adjusting prices to accommodate differences in customers, products, locations, and soon. IV. Promotional pricing Company can & use several pricing techniques such as loos-leader pricing, special event pricing, cash rebates, low-interest financing, longer payment terms, warranties and service contracts, and psychological discounting to stimulate early purchase or more purchase. V. Psychological pricing Adjusting prices for psychological affects. Price says some things about the product. For example, many customers use price to judge quality.

At present AKC does not exercise any of the price adjustment strategies mentioned above. Its pricing strategy is same for all sorts of customers and for all areas of the country but AKA is thinking following geographical pricing technique for exporting to middlest market.

Chapter five Distribution strategy In today, economy most producers do not sell their goods directly to the final users. Between them standers a set of intermediaries performing a variety of functions. Marketing channel consists of some interdependent organizations involved in the process of marking a product or service available for use or consumption. There are two broad categories of distribution channel direct and indirect. AKC uses only indirect channel of distribution to make the product available for use. Types of channel First : Zero level channel Manufacturer Manufacturer Third: Two level channel Manufacturer ------> Dealer -------->Retailer--->Customer Fourth: Three level channel Manufacturer--> Dealer-->Whole seller -->Retailer-->Customer ---------------------------------------> Customer ------> Dealer/Retailer -------->Customer Second: One level channel

Diagram of channel of distribution is as under

Manufacturer

Dealer

Customer

Whole seller

Retailer

AKC uses one level channel of distribution Manufacturer --------> Retailer -------->Customer AKC has huge number of sales representatives performing the activities of order taking product delivering and market promotion through out the country under the supervision of area sales manager, regional sales manager and general manager sales. These sales representatives sale the products to the retailers. Factors to be considered in selective channel of distribution. 1. End-user considerations 2. Product characteristics 3. Capabilities and resources 4. Functions that need to be performed. 5. Availability and capabilities of intermediaries.

Since AKC use one level distribution channel and it mantstomake its products available every where and sales in small lit and in chash so it does not considers the things scrutinizely. Channel objective The amin channel objective of Abul kahir Consumers Ltd is to made the products available every where in the country and maximize sales volume. Channel functions A distribution channel moves from producers to customers. It overcomes the major time, place and possession gaps that separate goods and services from those who would use them. The channel member of AKC perform the following functions. 1. Distribution: Retailers distribute the products to the final customers. 2. Information: Retailers some times give important information about the market conditions. 3. Promotion: channel members sometimes help AKC to promote its sales volume and build up market image through the participation of many promotional activities. 4. Matching: Retailers often match the markets needs with the company, offerings. Channel management decision Abul Khair Consumers Ltd. Thinks that channel of distribution plays a very vital role between producers and customers and perform a variety of

functions. So channel management decision is very important. Channel management decisions include three things: 1. Selecting channel members 2. Motivating channel members 3. Evaluating channel members. The channel management decision is taken by top management. AKC sells its products to the retailers directly. This company maintain close relation with the retailers through continuous communication. Since there retailer is

Questionnaire
Questions about manufacturing Plant 1. Could you tell about the short history of your factory? 2. Could you tell us about ownership of the plant? 3. Where is your factory located? 4. What is the total area of the Plant? 5. What is the organ gram of the plant? 6. How many units and machineries in it? What in the country of origin of the machineries? 7. How many employees (executive & staff) work here? 8. Do you have any expatriate executive? 9. Do you think that Abul Khair Tobacco is the leading factory in this line? 10. What are the sources of raw materials? 11. Do you have any wastage processing arrangement for the protection of environments? 12. Do you ensure hygienic environment for the market? 13. Do you have any policy to cover losses occurred by any kind of accident? 14. What are the steps in manufacturing process? 15. Where do you cheek quality of the product? Questionnaire about UPS QUESTIONS ABOUT PRODUCT: 1. What is the concept of your product? 2. What types of raw materials are used in 3. What are the brand names of your product?

4. Do you think your product is market leader/ 5. Who are the users of your product? 6. What are the different sizes and shapes of your product? 7. Do you have R & D Department? 8. What are the sizes of packet of your products? 9. Do not you think that your production plant in polluting the environment? 10. What are the process to justify the comparative standard of your product? 11. Do you maintain separate department in the factory? 12. How cereld you measure the quality of your product? 13. Are your customer satisfied having your products? 14. How do you collect information about customer satisfaction?