1

2009

Company:

RahimAfrooz

New product:

RahimAfrooz super cool Air Conditioner

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Submitted To:

Submitted By:

Group REFLECTIONS

Member’s Name Member’s ID & Work %

Abir Rahman 181 100%

Jannatul Ferdous 192 100%

Sabiha Sultana 201 100%

Shibbir Ahmed 223 100%

Mafru Alam 225 100%

Pavel 176 100%

Saloa Fahmin 205 100%

DDATEATE OFOF SUBMISSIONSUBMISSION:: 2020 THTH N NOVEMBEROVEMBER, 2009, 2009

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LETTER OF TRANSMITTAL

Ms. Sayeda Ferdous Lusanta

Lecturer, BBA department

Dhaka City College,

Dhanmondi, Dhaka.

Subject: Prayer for submission of a Marketing Plan.

Madam,

We have the honor to state that, we are the member of ‘Reflections’ group have prepared this ‘Marketing Plan’ on Rahimafrooz company’s new product line as AC as a course requirement of your course ‘Marketing Management’. We are requesting you to receive the report.

We have done our level best to complete the report with our little experience and knowledge. We are apologizing for any kinds of errors and mistakes. We will be delighted to clarify any queries regarding the report.

Yours faithfully

On behalf of the group

Abir Rahman, ID. 181

Sabiha Sultana, ID. 201

Sec. C (8th batch)

Dhaka City College

Signature

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TTABLEABLE OFOF C CONTENTONTENT

Topics Page no.

Executive summery 7

Part1Current Market Situation :1.1 Sales1.2 Channel1.3 Forces of Macro Environment

8-11

Part2New Product Development:2.1 Idea Generation2.2 Idea screening2.3 Concept Development And Testing2.4 Marketing Strategy Development2.5 Financial Analysis2.6 Product Development2.7 Commercialization

Part3Opportunity And Issue Analysis:3.1 SWOT analysis

12-14

15-17

Part 5 Marketing Strategy:4.1 Segmentation4.2 Targeting4.3 Positioning4.4 Pricing4.5 Distribution4.6 Marketing communication (promotional tools)4.7 Marketing research

18-24

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Part5Financial Projection:6.1 Revenue and Expense Side 5

25-27

Part6 Action Programs :1. What will be done?5.2 When will be done?5.3 who will do it?5.4 How will progress be measured?

29-29

Part7 Implementation control: 30-31

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EEXECUTIVEXECUTIVE S SUMMERYUMMERY

RAHIMAFROOZ SUPER COOL AIR CONDITIONER :

Rahimafrooz, founded in 1954 by Late A. C. Abdur Rahim as a trading company, is one of the largest business groups in Bangladesh. It consists of seven SBUs and several other affiliations. The Group's Chairman is Mr. Afroz Rahim and the Managing Director is Mr. Feroz Rahim

Rahimafrooz operates in three broad domains: automotive aftermarket, power and energy, and retail chain. It sells tyres, batteries, lubricants, emergency power products, diesel as well as gas generators, lighting products, electrical accessories, solar systems, energy solutions using compressed natural gas, and power rectifiers.

This is a marketing plan based on a sub brand of Rahimafrooz, Rahimafrooz Super Cool Air conditioner stands for “Shoto klantir majhe shantir avash" to stand against their biggest competitors Career, General, American Air, National with its magnificent features that it will remain on for at most one hour after power failure at normal mode. Now at this time to enrich our product line we have tried to assess the customers’ quality conscious attitudes & their demand . Therefore our company is trying to introduce its new product--“RAHIMAFROOZ SUPER COOL AIR CONDITIONER”.

We are always committed to maintain our quality & therefore ensuring the quality product at reasonable price is our company Mission.

The Company Slogan for the product- "SHOTO KLANTIR MAJHE SHANTIR AVAS".".

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Part— 1

Situation analysis

Part— 1

Situation analysis

Current Marketing Situation

Sales :

It sells tyres, batteries, lubricants, emergency power products, diesel as well as gas generators, lighting products, electrical accessories, solar systems, energy solutions using compressed natural gas, and power rectifiers.

The total sales volume for current year is $100million

Distribution Channels:

With a country-wide distribution network of 173 Dealers, 275 Retailers and 101 Lubricant Dealers, Rahimafrooz Distribution Limited (RDL) is the foremost consumer facing SBU of the Group that carries more than ten national and international brands. RDL is the clear leader in its automotive aftermarket and emergency power product categories.

Macro environment:

Legal situation: Legal situation means the rules and laws of a country. This situation influences each and every

business sector. The legal threats will be-

1 Taxation policy: Taxation affects the pricing strategy. Though government imposed high

tax on luxurious products so the price of the product rises.

2 Increase of vat on the product: Imposes vat also increases price.

Government’s regulation: Sometimes government ban importing and exporting some products, which affect the business firms.

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Economical situation: The economical threat which will influenced our business sector –

1 Inflation situation: Inflation means an increase in the amount of money or credit

available in relation to the amount of goods or services available, which causes an

increase in the general price level of goods and services. Over time, inflation reduces the

purchasing power of money, makes it worth less. So inflation increases the price. We

will try to control the minimum production cost from the very beginning of our business.

Income of the people: The demand of the product depends on the income of the people. If the income is high then people wants to buy luxurious products.

Political situation:Political situation is another important macro-environment factor that influences the

investment of business.

1 Political stability: For any business, political stability is the most important factor.

Foreign investment depends on the political stability. If the political situation is not

stable it affects badly on the business firm.

2 War: if there is any war situation then the business and industries face losses and

sometimes industry collapse.

Poverty: Insatiable political situation increases poverty and from the business perspective it is not profitable in any way.

Ecological situation:It is the geographical environment, which has a great effect on the business.

1 Earthquake.

2 Drought.

3 Flood.

4 Cyclone

5 Famine

Our country is a tropical country and also surrounded by rivers. Almost every year flood occurs in our country. In the time of flood the transportation and communication systems are

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hampered. So considering the situation we increase or lower the supply and also we store as the situation demand.

Technological situation:

Technology is one of the important facts for achieving success in the business.

1 Follow the traditional way.

2 Adopt new technology.

We use both traditional and modern technology to produce our product, for the advertising and for keeping the records.

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Part— 2

New Product Development

Part— 2

New Product Development

NEW PRODUCT DEVELOPMENT

New product development is the term used to illustrate the entree technique of launching a new product or service to market place and promoting the product.

It is the systematic search of ideas. An idea can be generated either internally or externally from research and Development department or from the company employees or by just analyzing the competition. Rahimafrooz has this concept called, Air conditioner concept which is not officially an existing product of Rahimafrooz. But we can say it is one of the most competitive products.

2.1 Idea Generation: New product ideas can come from interacting with various groups and from using creativity greeting techniques. There are many successes. Where the new product ideas come, such as: scientists, competitors, employees, channel member and top management. Rahimafrooz came to this new idea because of extending their product line.

2.2 Idea screening: This is where the idea is taken into standard format and we verified for technical and financial viability and market ability. This concept is an Air condition which has the ability to give the service properly. When load shedding will happen it will give service one hour perfectly. This might sure not be easy to produce with the existing technology we have now. So the product should be technically tested to see whether they are financially in a good position to invest and them how the technology supports the new idea.

2.3 Concept Development and testing:

In this stage all the concept and ideas are placed with other similar concepts. Here the chosen idea is tasted whether it take actual form or not.

2.4 Marketing strategy development:

At this stage among various marketing strategies the most effective strategy is taken for better marketing forces. Here Rahimafrooz will take competitive marketing strategy.

2.5 Financial analysis:

Here it is analyzed whether the taken concept matches the company’s cost, sales and profit or not. This match can be seen after the financial forecast.

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2.6 Product development:

Here the product is given actual shape to see that whether the concept of the product can be given the projected form or not.

2.7 Commercialization:

This is where we go to the full length of the product. Here the decision to launch the product is taken and the 7p’s of marketing is applied. When, where, to whom, how etc..... like of Rahimafrooz make Air Conditioner a reality also the product will be targeted for the higher middle class prospects due to estimated higher medium cost of production.

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Part— 3 Opportunity and Issue

Analysis

Part— 3 Opportunity and Issue

Analysis

OPPORTUNITY AND ISSUE ANALYSIS

SWOT analysis:

SWOT analysis is the overall evaluation of a company’s strengths, weaknesses, opportunities and threats.

The SWOT analysis of the Rahimafrooz Company regarding marketing of AC is as follows—

Strengths:

Strength is totally related with internal environment of the company. At this case the strengths of Rhimafrooz are –

Huge capital. Experience in previous product line. Organized business structure. Efficient management. The cheap labor force. The highly experience management team.

Weaknesses:

It’s an internal weakness of the company. The weaknesses of Rahimafrooz regarding the production of AC are —

Difficulties in developing the brand as a start up in AC product. Lack of experience in production of AC. The used technology is as average one. Limited resource

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Opportunities:

It is the evaluation of the company’s external opportunities.

Opportunity to grow in future. Ability to get the customer’s trust. Opportunity of market expansion. Development of the product. Many out late opportunity. Huge market need The scope to expand the business in overseas The income level of consumers are increasing The brand name

Threats:

Threats are the challenges posed by an unfavorable trend or development that would lead.

The threats of Rahimafrooz regarding the new product line(AC) are as follows—

Potential competitors. The low priced, low quality competitor A slump in the economy that could have negative effect. Natural disaster. Major change in the world’s climate. Competitor’s given facilities to the customer. Fall in customer’s income level. Risk of duplicating the product by the competitor. Political unrest.

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Part— 4

Marketing Strategy

Part— 4

Marketing Strategy

MARKETING STRATEGY

4.1 Market Segmentation:-

A market segment consists of a group of customers who share a similar set of needs and wants. The marketing does not curate the segments; the marketing task is to identify the segments and deride which one (s) to target.

In market segmentation research and development department identify two parts. Such as:-

a) Segmenting customer markets.

Segmenting consumer markets:

In commuter markets some researchers try to form segments some characteristics. These are

Geographical segmentation, which calls for dividing the market into different geographical units, such as:- states, cities, region etc.

Demographic segmentation, where the market is divided into groups on the basis of variables, such as: family lifecycle, income, occupation, social class.

Psychographic segmentation, where buglers are divided into different groups on the basis of life-cycle or values.

Behavioral segmentation, where buyers are divided into groups on the basis of the attained, toward, use of, or response to a product.

In our marketing plan we will segment our customer market in the following ways—

Geographic:

Our immediate geographic area is the Dhaka zone. Primarily the target customer is all most 1000.

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Demographic:

Age Income level Combined working family Occupation

Psychographic:

Social class Lifestyle Personality

Behavioral:

Benefits User status Attitude toward product

Loyalty segments:

Individual Customer One -to-one profitable growth through

Customer Needs and Marketing capturing customer share,

Values integration loyalty, and lifetime

and chain value

4.2 Targeting:

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Starting focus means ends

Point

The target marketing is the part of the qualified available market the company decides to peruse. The company much decides to concentrate its marketing and distribution effort. The company will end up selling to a certain number of buyers/ users/ customers in its target markets.

To launch a new Air Conditioner by the Rahimafrooz we mainly select our largest customer, the higher middle class people. Because, the availability to buy the Air Conditioner of the higher class peoples are high than the higher middle class people. The higher middle class people also want to use the Air Conditioner. That’s why, now our target customer is the higher middle class people.

4.3 Positioning:-

Market positioning requires the determination of a frame of reference- by identifying the target market and the nature of the competition and the ideal points-of-parity and points-of-difference brand association.

To capture the customer/ user easily, we develop some positioning strategy. Because without applying positioning strategy, we cannot capture the customer perfectly.

There are some requirements how we capture the customer value. These are given below:

i) By proper offerings.ii) To show the importance of the product.iii) By preemptive and then other competitors can`t copy this product and its services.iv) By creating product superior valve.v) By advertising vi) To know about the customary satisfaction.vii) To deliver the better service.

Company and product

Target customer

Benefits Price Value proposition

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Rahimafrooz Company Limited.

Product: Air

conditioner

The higher middle class people

In Summer people full cool. when load shedding will happen, this product will give service one hour

20% premium

A good quality.

The higher medium price.

Delivered to the customer door with 30 minutes of ordering

4.4 Pricing:

Price is the amount of money customer wish to pay to obtain the product. Necessary strategies pertain to the locations of customer price flexibility related item within a product line and terms of ale.

Under pricing we take some steps. Such as:-

1. We may give 10% - 20% discount and allowances.

2. At a decline stage, we will charge low price.

3. We many use going rate pricing that means, our company charge the same, more or less than major competitors.

4. We product our product within and outside the Dhaka. That’s why, we decide geographical pricing that means we select price to the customers in the different location.

4.5 Distribution:

Under distribution system, we decide sometimes we distribute the Air condition directly to the customer at a moderate price. Sometime we distribute air conditioner to the customer to the different intermediaries such as wholesaler, distributor and retailers.

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Consumer Marketing:

O level 1 Level 2 Level 3 Level

Industrial Marketing:

O level 1 Level 2 Level 3 Level

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Manufacture Manufacture Manufacture Manufacture

Customer Retailer

Customer

Wholesaler

Retailer

Customer

Wholesaler

Distributor

RetailerCustomer

Manufacture Manufacture Manufacture Manufacture

Manufacture representative

Manufacture representative

Industrial Customer

Industrial Customer

Industrial Customer

Industrial Customer

Industrial Distributor

4.6 Marketing communication:

Good promotion program is the most important ingredient in marketing. It means activities that communication the merrily of the product and persuade target customer to being it. Strategies decisions must also be made regarding each individual mentioned of promotion.

As a manager for the marketing we identify some tools such as:

Warranty Low interest load facility Langue payment term Cash discount After sales service Sales forces Public relations Direct marketing Sales promotion

4.7 Marketing Research:

Marketing research is a systematic design, collection analysis and reputing data findings relevant to a specific marketing situation facing a company.

When attempting to implement a new marketing a business must address its target and conduct the relevant information to ensure the new marketing plan

Both differs from the old and is better for the business. When conducting market research a business must first define the problem and then gather the appropriate information a business can gather to solve it problems these are given below:

Exploratory research, which clarifies the problem and searches for ways to address it. Descriptive research is used to measure and describe things like the market potential

for a product and characteristics of the target market. Casual research is used to test a hypothesis about a cause and effect.

Rahimafrooz through its market research has addressed all three types of research to define the problem raised by shareholder are gathered information to serve their needs.

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Action Program

Part— 4

Action Program

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Part— 5

Financial Projection

Part— 5

Financial ProjectionPart— 5

Financial Projection

Part— 5

Financial Projection

Financial Projection:

Revenue side:

Financial Year

2010 2011 2012

1 ton 1.5 ton 1ton 1.5ton 1 ton 1.5 tonPrice per Unit

42000 52000 42000 52000 42000 52000

Sales Volume

650 300 1000 500 1400 600

Sales Revenues

27300000 15600000 42000000 26000000 58800000 31200000

Total Variable Costs

20580000 11920000 29400000 18200000 29500000 18300000

Gross Margin

6720000 3680000 12600000 7800000 29300000 12900000

Expense 7300000 4000000 8950000 4800000 9050000 5200000Net Profit (580000) (320000) 3650000 3000000 20250000 7700000

(900000) 6650000 27950000

Here fixed cost= Tk. 50000000

Expenditure projection side:

Financial Year

2010 2011 2012

Rent 600000 600000 600000Salary 200000 2250000 2250000Promotion

2100000 3400000 3900000

Interest 7500000 7500000 7500000Total 10400000 13750000 14250000

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Part— 6

Action Program

Part— 6

Action Program

ACTION PROGRAMS

5.1 What will be done?

At first the potential long run opportunities will be identified.

5.2 When will be done?

Rahimafrooz will have to do it at the very beginning. Because identification of the potential long run opportunities will allow them to develop concrete marketing plans that specify the marketing strategy and tactics going forward.

5.3 Who will do it?

The research and development department will do the job of identification opportunities.

5.4 How will progress be measured?

The progress can be measured by observing the product and the competitor’s responses towards the company’s strategy and plan.

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Part— 7

Implementation And Control

Part— 7

Implementation And Control

Implementation and Control:

In this stage we show how we implement the plan. We want a very smooth start of our product in the market. As it is a new product and it has a very complex process for Rahimafrooz so we need to provide or create many promotional and creative campaign.

Market Coverage: Three Year Plan

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