CONTENTS

Executive Summary .......................................................................................................................................................3 Industry Background......................................................................................................................................................4 Product Background: ACI pure salt ................................................................................................................................4 Objectives ......................................................................................................................................................................5 Broad Objective .....................................................................................................................................................5 Specific Objectives .................................................................................................................................................5 Scope .............................................................................................................................................................................5 Methodology .................................................................................................................................................................5 Primary Sources .....................................................................................................................................................5 Secondary Sources .................................................................................................................................................6 Limitations .....................................................................................................................................................................6 Target Market ................................................................................................................................................................6 Cultural Factors..............................................................................................................................................................6 Gender Factors ..............................................................................................................................................................6 Consumers Perception ..................................................................................................................................................7 Exposure: Deliberate .............................................................................................................................................7 Attention: Low Involvement ..................................................................................................................................7 Interpretation: Cognitive .......................................................................................................................................7 Memory: Schematic .......................................................................................................................................................7 Short Term memory ..............................................................................................................................................7 Positive Perception ................................................................................................................................................8 Negative Perception ..............................................................................................................................................8 Learning .........................................................................................................................................................................8 Group Influence .............................................................................................................................................................9 How branding helps on buying behavior .......................................................................................................................9 Branding of ACI pure salt .......................................................................................................................................9 Branding of Necessity Products .............................................................................................................................9 Positioning of Necessity Goods ...........................................................................................................................10 Branding as ‘Iodized Salt’ .....................................................................................................................................10

Branding as ‘Vacuum Evaporated Salt’ ................................................................................................................10 How Branding Beats Competition for ACI pure salt.............................................................................................10 How ACI pure salt Measures Brand Performance ...............................................................................................11 Current Shelf Coverage and Current Sales ..........................................................................................................11 Long Term Brand Vision .......................................................................................................................................12 Bridge between Consumers’ Needs and Product Benefits ..........................................................................................12 Motives for Choosing ACI Pure salt .............................................................................................................................12 Situational Influence ....................................................................................................................................................12 Temporal Perspective ..........................................................................................................................................12 Task Definition .....................................................................................................................................................12 Ritual Situations ...................................................................................................................................................13 Emotional Appeal ........................................................................................................................................................13 ACI Pure Salt as a Lifestyle Brand ................................................................................................................................13 What advertising and promotional programs can positively influence consumer behavior Error! defined. Bookmark not

EXECUTIVE SUMMARY .

Currently most prominent salt brands are:       ACI pure salt Fresh Salt Molla salt Teer Salt Meghna Salt Confidence Salt PRODUCT BACKGROUND: ACI PURE SALT In this report we are going to work with ACI pure salt from ACI limited. The project had been undertaken at a cost of approximately taka 32 crores. It launched a Tk 13 million project supplemented by a subsequent UNICEF assisted Tk 22. Production fluctuated from year to year due to natural calamities. the Bangladesh Small and Cottage Industries Corporation took up the task of developing the industry.6 million program. crystallized grains. The salt production.16 million tons of salt were produced until May 18. 2012 at the season end while the target of production was 1. It is also very porous and free flowing. ACI pure salt was launched in August 2005 and marketed and distributed by ACI consumer brands and its network. 2012). on the banks of the Shitalakhya River. (Moni. ACI pure salt is vacuum evaporated. variations in rainfall and changes in the terms of land lease. The plant produces refined iodized salt through Thermal Evaporation System. although the lixiviation technology is also in use to manufacture about 5% of the production. BARISAL and KHULNA districts and the offshore lands. The end product will be high quality. mostly in TANNERY. Iodine is coated in every single grain which makes it an essential product for the children. 80. however. The salt producing areas were in coastal belt of CHITTAGONG. The Malangies were the primary producers of salt from the seawater. 666 tons was for household consumption and the remaining was for industrial purposes. according to the BSCIC. Of the total available quantity of 1.8 million tons including food and industrial purposes. Salt was manufactured in Bengal as an indigenous product along a line of seacoast extending from Cuttock to Chittagong.3% of households ore consuming salt with some iodine (≥5 ppm) and 75. From the preliminary reports of the Bangladesh National Nutrient Survey 2012. free flowing salt with even. Within a very short period it has been enjoying the pride of being the leading brand. (Habibullah) At present yearly salt consumption is more than 1.450 million tons for the fiscal year (2011-12). ACI has used technology from China Heavy Machineries Corporation (CHMC) in establishing the plant. free-flowing and properly iodized. After liberation of Bangladesh in 1971. 57. Some 1.023 tons. The absence of right . ACI has set up its salt refining plant in Rupganj.6% of households are consuming adequately iodized salt (≥15 ppm). The iodine content of ACI pure salt will have a stability of more than 6 months.INDUSTRY BACKGROUND A daily commodity salt produced in Bangladesh mainly by a process of drying up seawater by solar heat. The best in its kind. never reached the pre-independence level and was only 696 tons in 1994 necessitating the import of 328 tons.8% of the households are consuming packet salt.4 million tons according to the BSCIC (Bangladesh Small and Cottage Industries Corporation) data but the actual demand is around 1. NOAKHALI.

ACI pure salt has won the “BEST BRAND OF BANGLADESH AWARD 2008” for unparalleled customer loyalty beating all the brands in Foods and Beverages category. The report will mainly be based on our interviews with industry specialists and will also contain some secondary research. Rubayet Chowdhury who is a Business Manager for Teer Salt in order to gain a better perspective of the industry as well as of the competition. The questionnaire is attached in the appendix section. We also conducted a telephone interview with Mr. METHODOLOGY The information used in this report were collected from both primary and secondary sources. It gives a brief needs assessment of the consumers of salt. a succinct overview of factors affecting consumers of all salt brands. . The report also digs into the competition among the salt brands and the unique positioning of ACI pure salt in order to beat the market. PRIMARY SOURCES The primary research information was collected from our visit and subsequent interview with Mr.quantity of iodine in their food may cause mental disability to them. We conducted a small survey on people in the Aambagan area of Dhaka city among heterogeneous consumers. OBJECTIVES Keeping in mind the instructions for this report. cultural. SPECIFIC OBJECTIVES        To gain an understanding of the industry. company and product To understand the target market along with their social. We conducted an online survey in which we got 88 respondents. we have formulated the following two types of objectives: BROAD O BJECTIVE To understand consumer behavior of Bangladeshi consumers of the edible salt brand ACI pure salt Limited and to create a clear picture of the how this understanding is implemented in the market. psychographic and other features To evaluate customer‟s perception of the ACI pure salt brand To understand the process by which ACI pure salt beats competition To understand how the brand fits into the lifestyle and self-concept of its consumers To see how the understanding of consumer behavior is implemented in branding through advertising and promotion To see how such branding results in positive performance and market leadership SCOPE The report will present an assessment of how the consumers of ACI pure salt respond to various advertising and promotion endeavors of the brand. Quamrul Hasan who is a brand manager of ACI pure salt Limited.

But the purchasing decision is usually made by the male or the female in the house who does the grocery shopping. . In general. It includes previous cases. newspaper articles and reports as well. The bottom of the line is buying a salt brand tends to be a marginal decision making process and is made at the time or grocery shopping. loose packed non iodized salt. The secondary research laid the foundation for us to have a knowledge base strong enough to go into primary research. Lower Middle. in predominant number of households in Bagnladesh it is still the males who carry out the grocery shoppings. Price is a very importan factor for this class. They are farily educated and use iodized salt. there was hardly any secondary information available • Lack of previous knowledge about the salt industry • Limited amount of time available for the completion of report • Busy schedule of interview able executives • Lack of direct links in the salt industry TARGET MARKET Salt is a necessity item. They form roughly 35% of the market. CULTURAL FACTORS The lower class segment usually eat more salt in their curry. GENDER FACTORS All though it is the females who usually cook at home. Middle and Upper class. LIMITATIONS There were several limitations that hindered the smooth completion and effectiveness of the final report: • The company being very specific. In additon to using salt at home. lemonades and baked pithas in addition to regular curry and meal. all socio economic segments use salt also with traditional pickles. They prefer health and well being over price when it comes to purchase of salt. They form 65% of the market. From a market point of view primary target market for ACI pure salt is . So the lower middle class usually goes for cheaper. They also eat extra salt with rice and chilli. Another The market price of iodized salt is more than double that of non-iodized salt. categorically state the need for iodized salt and the brand choice if it is not being used already in the family. However females in families other than in the lower income group. But purchase decision of salt in terms of brand choice and amount is made by female. the large number of restaurants and bachelor living hostels through out the country predominantly use male cook and the grocery purchase is made by the males. and research journals available on the internet.SECONDARY SOURCES The secondary sources included various websites on the internet. A small portion of them use salt to brush their teeth. Broadly everyone is the consumer of salt. Some devout muslims consider eating a pinch of salt befor meal to be sunnah. The trend is high in urban families where females do the grocery shopping. our text book.

Some of their efforts to enhance ACI pure salt‟s exposure are    TVCs Advertisements on first and third page of national dailies (Sample Provided on appendix) Sponsoring different public events like ACI pure salt on appendix) Using social media e. ATTENTION: LOW INVOLVEMENT People usually come to know about salt as a product subtly in a subconscious manner from childhood from their various social intereactions. Iodine. One consumer in our survey said. Affective interpretation is observed to some extent with their emotional appeal pointing towards how ACI pure salt will help to build an intelligent Bangladesh.g. short-term memory will work here.CONSUMERS PERCEPTION EXPOSURE: DELIBERATE Consumers in Bangladesh treat salt to be an indispensable part of their diet. The basic perception of the brand name ACI pure salt specifically related to various concepts such as: Clean. SHORT TERM MEMORY Since ACI pure salt salt is a low-involvement product. Mother company ACI has also a well-established website containing product information. MEMORY: SCHEMATIC The memory building process of ACI pure salt is more schematic rather than episodic or semantic. ACI pure salt puts in a moderate effort to attract new customers and retain the old ones. However they all distinctly remember having seen advertisment for salt and heard of the importance of eating iodized salt. From our survey we found that the recall rate for advertisement and also the influence of advertisement on the pruchase decision of low income consumers is minimal. ‘ Eating meal even with ghee( butter) doesnt taste good if there is no salt. They cannot recall when exactly they recognized salt as a product or saw the first salt advertisement. “clean”.’. Pure.It becomes a habitual process to consume salt. INTERPRETATION: COGNITIVE ACI pure salt emphasizes on their quality. Facebook fan page “ দেশ দে জান া” (Pictures provided All of these are intended to maximize the random exposure to ACI pure salt. To have the brand name in short-term memory following things have to be done: Increase the number of ad insertion and increase product visibility. From our survey we found that most people associate ACI pure salt with semantic meanings such as „Pure‟. They do not relate to specific events or situations. .

But in case of low involvement product that‟s different. They are:  Expensive  No efficient communication LEARNING Usually the buying process of good is exposed to the product then building the attitude about the product. People tends to exposed to the product.FIGURE 1 PERCEPTUAL MAP OF ACI PURE SALT AND ITS COMPETITORS POSITIVE PERCEPTION The positive perception that the consumers have about ACI pure salt are:  Pure  Clean  Good packaging NEGATIVE PERCEPTION On the other hand there is some negative perception among the customers that was found in the consumer survey. Then comes the final purchasing decision. Last step is the attitude building . in second step they buy the product.

So we dug deep into the factors that enabled them to obtain this leadership and become the best brand. From this data.phase. In most of the family females are buying decision makers. Since salt is a low-involvement & necessity product. BRANDING OF NECESSITY PRODUCTS The surprising fact about necessary goods is that branding that is done through TVC and print media has very little and almost negligible effect over current sales. Doctors.g. It only establishes a meaning for the brand to communicate the features and to charge the additional price that they charge for those features. But because of limited information of the consumers regarding the ingredients of salt some reference groups e. it can be concluded that the decision of buying ACI pure salt is totally individualistic decision. reference group will not have influence on the consumers. GROUP INFLUENCE From our survey among 88 respondents 62.57% of the sample population chooses ACI pure salt because of the influence of female member of their family mostly mother. HOW BRANDING HELPS ON BUYING BEHAVIOR BRANDING OF ACI PURE SALT ACI pure salt obtained the BEST BRAND AWARD 2008. The additionally chargable price is also limited for necessary goods due to frequent government pressures to . . They are described as follows. none of responded towards neighbor or friends. On the other hand.

It is a mineral necessary for various physiological activities. which affects two billion people worldwide is the leading preventable cause of mental retardation. Teer positions itself as „healthy‟ for all its categories. They are:   Dealers as a media Retailers as a media . ACI was the first to introduce Iodized Salt branding. you can get „ACI Pure Salt‟ as well as „ACI Pure Gura Moshla‟ in the market. ACI Pharmaceuticals were their predominant industry. iodine is lost. Iodine deficiency. it is unlikely that a consumer will pay a huge margin due to an investment intensive branding endeavour when it comes to necessity products. branding of this feature is only a whitewash on consumers eyes. This means that they create a single positioning strategy for their universal brand name and position all the product categories under that brand name with that strategy.keep prices within limits because commodity prices is one of the biggest political issues of our country. So. However. Before ACI pure salt was introduced. Hence. The benefit from this technology is that it makes the salt capable of being stored for longer amounts of time. ACI claims that every single grain of their salt is covered with a coat of iodine. POSITIONING OF NECESSITY GOODS The salt brands of necessity goods like Teer and ACI use leveraged positioning. BRANDING AS ‘VACUUM EVAPORATED SALT’ Nowadays. Iodine is a micronutrient often present in the food supply of coastal regions. it salt is not covered. HOW BRANDING BEATS C OMPETITION FOR ACI PURE SALT ACI pure salt executives believe that the following factors play a significant role in forcing customers to use ACI pure salt instead of other brands:   Strong predominant image of ACI brand The unique positioning of ACI as „pure‟ product The truth about necessity products however is that only 10% of the market are brand loyal and it is only in posh areas that people actually ask for a specific brand. where the marketing team of ACI is trying to position ACI as a pure alternative. It works to give the impression of usage of state of the art technology and thus adding to their brand equity. Again. Consequently. So this is a scope they can utilize in the future. This is the latest technology available. such a feature is of no major advantage or utility to the consumer. Also. The funny thing about iodized salt is that most of the iodine gets evaporated in the air if it is provided with substantial amount of time in exposure to the atmosphere. ACI salt does not directly say in their communications that they use vacuum evaporation technique. almost all major salt brands of our country use vacuum evaporation methods to manufacture their salts. For example. almost all major salt brands of our country brand their salt as iodized salt. So how does ACI pure salt beat competition? It is by branding in two media which are much more important than print and electronic media when it comes to such products. This is because iodine is a volatile substance. BRANDING AS ‘IODIZED SALT’ Nowadays.

like relationship building. super shop visibility and customer query. These are Current Shelf Coverage and Long Term Branding Vision. ACI Pure Salt has been doing well in almost all categories. negotiations and . HOW ACI PURE SALT MEASURES BRAND PERFORMANCE ACI Pure Salt measures Brand performance based on the following criteria:      Market Share TRP of TV Commercials Retail Shop product visibility Volume of customer query about brand at retail level Super Shop visibility The performance of ACI Pure Salt can be said to be brilliant due to their attainment of market leadership status and achievement of BEST BRAND AWARD 2008.:   Modern Trade with Super Shops Congenial Corporate Relations with Retailers Modern trade is creating visibility and better placement of products in super-shops through negotiation. Retailers are provided with competitive profit margin and encouraged to keep as much stock of ACI Pure Salt as possible.Retailers increase sales by proposing a brand at the time of purchase. when a customer sees a huge stock of this brand in a retail shop. viz. /Corporate relations with retailers are maintained by providing them with Panaplexes at the company‟s cost. They propose those brands which give them higher margins and provide negative information about those brands which give them less profit margin. They barely attract only 10% of customers as loyal customers and customers usually do not ask for a particular brand at the shop. it is branded positively in his mind. Other performance is measured by monitoring customer purchase behaviour say just after a launch of a new marketing campaign. Marketing research teams are regularly sent to the field to monitor retail shop visibility. Super-shops now-a-days position all their products by calculating the maximum margin they can obtain from every inch of their shop. Shelf coverage and sales is thus rather driven by distribution efforts. They are described as follows: CURRENT SHELF C OVERAGE AND CURRENT SALES It is a surprising fact that Integrated Marketing Communications (IMCs) play very little role in the sales of necessity products like salts. Gondola Renting can be done to have dedicated shelves in super-shops. It is done in two ways. So. ACI pure salt gives retailers a competitive profit margin to beat competition. Another important effective branding aspect about retailing is Brand Visibility. Also. So. There are two motives with which ACI pure salt brands itself. etc. They are only usually able to identify between iodized and non-iodized salt based on learning from their communications. relationship building.

they would prefer this brand. ACI pure salt allows consumers to achieve their ultimate motive that is. Retailers play the key role in educating the customer of the brand during this timeframe. without having to compromise on anything else. Consumers believe they can receive a good quality which they value most. Bengali housewives sprinkle their magic(salt) to impress family members. ACI pure salt gives consumers the confidence of knowing that they are making the right choice. providing their family members pure and iodized salt. Other than that. It gives them a greater sense of involvement and control. They provide the sense of pureness among the consumers. According to Maslow‟s hierarchy of needs. Necessity goods are of high demand so IMCs do not need to create demands either. It establishes the brand in the minds of people who are brand conscious and non-buyers now so that when they become regular buyers in the future. Through providing the mothers with these benefits.23% chose it because of “Pureness” and 30. Tasting salt is often used for this purpose. TASK DEFINITION Salt is bought for cooking purposes.incentivization of retailers and dealers. TEMPORAL PERSPECTIVE Consumers spend 0 to 30 seconds at maximum regarding information search on different brands of salt. as well as esteem need (desire for premium and better quality). It does so because of their long term vision.7% because of “Cleanliness” It can be understood that the manifest motive behind the consumers‟ choice of ACI pure salt is the quality. on a regular basis. a product like salt has fewer influences as such since it is a must consume product. ACI pure salt involves fulfilling physiological needs (daily commodity). a question arises that why ACI Pure Salt engages in IMC and incurs such costs. SITUATIONAL INFLUENCE Though situational influences play important roles in consumer buying decision making process. BRIDGE BETWEEN CONSUMERS’ NEEDS AND PRODUCT BENEFITS ACI pure salt provides the target market with simple solutions for their daily need of necessary ingredient for cooking. a formidable 35. They are used to make pickles. which fit with the contemporary culture. salt is . LONG TERM BRAND VISION Since IMCs serve very little purpose in shelf coverage and current sales. Whereas current sales is driven by retailers. as well as guaranteed success and appreciation that ACI provides necessary iodine needed for their family members. When the respondents were asked about the aspects of ACI pure salt that they prefer most. MOTIVES FOR CHOOSING ACI PURE SALT 85% of the respondents in the primary survey said they consumed ACI pure salt.

ACI PURE SALT AS A LIFESTYLE BRAND AND SELF-CONCEPT A product often takes a part in the lifestyle of the consumers as an essential. Fresh salt and confidence salt. EMOTIONAL APPEAL ACI pure salt does not appeal to the emotions of the target market rather lets the customers decide and gather cognitive knowledge about their quality and then make a choice. The target market.also used for brushing of teeth by consumers in rural areas. ACI pure salt emphasizes on quality from the very beginning. ACI pure salt being at the core of the daily needs for the consumers does exactly the same to the cooks or the eaters as a Ferrari would do to a car lover. The cleanliness and pureness is satisfactory. . ALTERNATE EVALUATION AND SELECTION • • • • • choice usually There are other competitive brands in the market like Molla salt. Choosing ACI pure salt is more of an Brand extension to rural market Free Offer Packaging Field Activation Push Sale Strategy than an attitude based choice. The self-concept that they believe in is highly influenced through the essentials they use. The first being the dominant. the other task definitions are negligible.this involves whether the quality of salt reflects the desired outcome of the customers. The target market that ACI pure salt holds on not just consume it through a prepared recipe but also views it as the brand which suits their value and needs. tradition has an influence on the volume/frequency of purchase. considers the following evaluation criteria: Quality . An everyday necessity doesn‟t just fill in the lifestyle as a nutrient value but has a knack of being the image of the lifestyle too. despite having different importance factors. RITUAL SITUATIONS Salt consumption increases during the Ramadan season where various spicy and salty snacks are prepared everyday for iftar. the task definition communicated in the TVCs of ACI Pure Salt is the maintenance of stable intelligence through salt consumption. ACI pure salt being the top of the brands serves as a premium material for cooking and food products. Although the price is higher than the other existing brands target market usually go for quality over price. Thus. However. Thus t hey don‟t resort to emotional appeal by showing an ad of sick person and try to state that without ACI pure salt someone will be sick. ACI promotes itself as a brand creating people‟s concept a bit better for salts and relating the image of its premium product to consumer‟s lifestyle.

A majority of consumers simply purchase the salt brand/type suggested by the grocery. ACI pure salt and consumer behavior. For a rural household a spoon can be a high impact show of gesture and is a needy item. Since salt low involvement purchase behavior Push sale strategy should be deployed. The interviews with the past consumers helped us in understanding the weaknesses of the brand. Packaging: Extend the benefit chain. 2. Hence groceries must be given an additional commission to vouch for the product. 3. Free Offer: To create a purchase drive offers a steel spoon free with every pack. Introduce low priced brand extensions for rural market.RECOMMENDATIONS More than 35% of households in Bangladesh still do not use iodized salt. Lastly we were able to use our own judgment and knowledge gained throughout the course to understand the current condition and also provide some feedbacks. 4. . we were exposed to a wide array of information regarding ACI. This undertaking of ours helped us understand how marketers are applying the concepts of consumer behavior every day in every way. Our interviews with the customers helped us understand their expectations from a Salt. Also. Such models have been carried out by Bangladesh government successfully to propagate female education in rural areas. group influences and other psychological factors which influence their behavior. To get them started to using ACI Pure iodized salt. Salt is a daily commodity. the following activities are suggested: 1. we were able to analyze their motives. Finally we come to the main objective of this term paper: understanding consumer behavior. We have it every day. Price is the most important criteria in their purchasing decision calculus. They belong to the low income rural class. but we had no idea that so much thought went into the making of a single product. CONCLUSION TAKEAWAYS EXPERIENCE RECAP While working for this term paper. Field activation: Execute publicity stunts in village school playgrounds with projectors projecting a entertainment fiction where Bangla cinema celebrities through the story endorse using the iodized salt brand. 5. Package the salt in plastic container which rural households can later use to store other edibles. buying behavior.

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(2012. Moni. Retrieved from Financial Express.). H.org/HT/S_0045.org.php?news_id=133150&date=2012-06-16. (n.BIBLIOGRAPHY Habibullah.com/more.HTM. S. M. http://www. 06 16). http://www. Retrieved from Bangladpedia.d. .thefinancialexpress-bd.banglapedia.

APPENDIX PROMOTIONAL ACTIVITIES OF ACI PURE SALT .

surveymonkey.CONSUMER SURVEY SURVEY QUESTION Here is the consumer survey that we carried out in http://www.com/s/W7TPNPX .

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SURVEY RESULTS .

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