ACI Biscuit

1) INTRODUCTION:

1.1 ORGANIZATION’S DESCRIPTION:

ICI Plc of UK had a pharmaceutical business in

Bangladesh. In 1992 the business was sold to management and the name of the Company
changed to Advanced Chemical Industries (ACI) Limited. ACI inherited the rich ICI
culture of product quality, customer service and social responsibility and continues to
nurture.

ACI is the first company in Bangladesh to obtain

certification of ISO 9001 Quality Management System in 1995. ACI is also the first
Company in Bangladesh to get certification of ISO 14001 Environmental Management
System in 2000. ACI employees are proud of their work culture, business ethics and
environmental consciousness.

1.2 Strategic Business Units:

Pharmaceuticals
Consumer brands
Agri business:-
Crop care public health
Animal health
Seeds
ACI has the following subsidiaries

 ACI Formulations Ltd.

 ACI Trading Ltd.
 ACI Salt Limited
 Apex Leather Craft Limited

1
 ACI Biscuit

1.3 Company Mission:

ACI’s mission is to enrich the quality of life of people through

responsible application of knowledge, skills and technology. ACI is committed to the
pursuit of excellence through world-class products, innovative processes and empowered
employees to provide the highest level of satisfaction to its customers.

1.4 Company Vision:

 Endeavour to attain a position of leadership in each category of its businesses.

 Attain a high level of productivity in all its operations through effective and
efficient use of resources, adoption of appropriate technology and alignment with
our core competencies.
 Develop its employees by encouraging empowerment and rewarding innovation.
 Promote an environment for learning and personal growth of its employees.
 Provide products and services of high and consistent quality, ensuring value for
money to its customers.
 Encourage and assist in the qualitative improvement of the services of its
suppliers and distributors.
 Establish harmonious relationship with the community and promote greater
environmental responsibility within its sphere of influence.

2
 ACI Biscuit

1.5 VALUE OF THE COMPANY:

 Quality
 Customer Focus
 Fairness
 Transparency
 Continuous Improvement

2) Company’s Major Products and Services:

Aci is a very Big Company. It Has Many Strategic

Business Units, subsidiaries, Joint ventures and also they are Diversification into New
Industries. This Business Units and Subsidiaries have many Products and Services and
The Products and Services are:

2.1) Strategic Business Units:-

2.1.1Pharmaceuticals:
In 2004, ACI Pharmaceuticals ranked 11th in the
Bangladesh Pharmaceuticals Industry. And It’s Products and Services Are:-
Wide selection
of drugs, all major therapeutic classes, and also some specialty medicines.

2.1.2 Consumer brands:

ACI Consumer Brands is a leading Fast Moving Consumer
Goods (FMCG) company in Bangladesh. And It’s Products and Services Are:-
Liquid
antiseptic and mosquito repellant, Godrej Consumer Products (for hair care

3
 ACI Biscuit

And skin care products), Parle Group (for Parle G biscuits), Beiersdorf, Germany (for
Nivea range of products) and Colgate Palmolive.

2.2) Subsidiaries: -
2.2.1) ACI Formulations Ltd.:
ACI Formulations Limited (ACI FL) is a
subsidiary of ACI Limited, located at Gazipur, in the outskirt of Dhaka. And it’s
Products and Services Are:-
The product range manufactured at ACI FL include Crop
Protection Chemicals like insecticides, herbicides and fungicides in granular, powder and
liquid forms, Mosquito Pesticides in the forms of aerosols, vaporizers and coils; and
household chemicals like toile cleaners and hand wash.

2.2.2ACI Trading Ltd.:

ACI Trading Ltd is one of the leading Trading Houses in
Bangladesh. And it’s Products and Services Are: -
The Company is mainly involved in marketing and sales of various Industrial
Chemicals, Petrochemicals, Plastics, Pharmaceuticals, Leather & Shoe finishes,
Textile Dyes & Auxiliaries through Indent sales.

2.3) Joint ventures:-

2.3.1) Asian Consumer Care Private Limited:
Joint venture of ACI and Redrock Limited,
For distribution of various ranges of Dabur products in Bangladesh. ACI holds 50% stake
in the venture.

4
 ACI Biscuit

2.3.2) Tetley ACI Bangladesh Limited:

Joint venture of ACI and Tetley Group of United
Kingdom for distribution of Tetley products in Bangladesh, with ACI having 50%
shareholding.

2.4) Diversification into New Industries:-

2.4.1ACI Salt Limited:

ACI has set up its salt refining plant in Rupganj, on
the banks of the Shitalakhya River. The plant will produce refined iodized salt
through Thermal Evaporation System. ACI has used technology from China
Heavy Machineries Corporation (CHMC) in establishing the plant. The end
product will be of high quality, free-flowing salt with even, crystallized
grains.

2.4.2ACI Godrej Agrovet Private Limited:

Godrej is a pioneer in the
packaged meat business in India. It is also the market leader in the poultry
industry, and the owner of ‘Real Good’ brand. ACI and Godrej have a joint
venture in Bangladesh to set up an Integrated Poultry Project. Under this
project, ACI Godrej Agrovet has already set up a feed mill at Sirajganj.

3) Major Customer and Consumer of the Company:

3.1 Major Customer:

ACI Ltd. Company is a Big Company. It Has Many Sister
Company. And Those Companies Produced Many Products and Give many services.
We Know That the Customer buying and selling product. So the Customer of
Pharmaceuticals, Consumer brands, ACI Salt Limited, and Apex Leather Craft

5
 ACI Biscuit

Limited are Whole seller, Retailer, Distributors and All the Middle man who are
between Company and Consumer. There is different between ACI Formulations Ltd.
to all other ACI‘s sister company. Because ACI Formulations Ltd. Company
Produced Raw material for ACI’s All Other Company, so the customers of ACI
Formulations Ltd. are all other SUB of ACI.

3.2 Major Consumer:

We know ACI is a Big Company. We also Know That Consumer
are the ultimate user. Because ACI is Big Company and they produced many
Products and services they have. Lots Consumer. ACI produced Pharmaceuticals/
medicines category’s product. It means when a Man is sick and wants to a medicines
store to buy medicines. That man considers being Consumer of Aci Pharmaceuticals.
ACI also have Consumer brands. In Consumer brands there are many Products if any
Body Need that Kind of Products That Persons considers as the Consumer of
Consumer brands.

4) Analysis of the Marketing Environment:

4.1) Micro Environment:

The actors close to the Company that affect its
ability to serve its customers-the company, suppliers, marketing intermediaries,
customer market competitors, and New entrants.

4.1.1 Suppliers:
Suppliers from an important link in the company’s overall
customer value delivery system. They provide the resources needed by the
company to produce its goods and services. In ACI Company They have an
other company the company name is ACI Formulations Ltd. Who produced raw
material for Aci Company,

6
 ACI Biscuit

4.1.2 Rivals:
Rivals are those who serve a target market with similar products and services
against whom a company must gain strategic advantage. Aci is a very big
company so it has many Rivals. In Pharmaceuticals areas there many
Pharmaceuticals company such as Beximco Pharma, Square, Aventis Limited,
Acme they are the leading company Pharmaceuticals, they are the main rivals
of ACI in Pharmaceuticals. Aci also have Consumer brands. In Consumer
brands Aci also have Rivals Such as Unilever Bangladesh Limited, Square,
Lipton and many other companies.

4.1.3 Marketing Intermediaries:

Marketing Intermediaries help the company to
promote sell, and distribute its goods to final buyers. They include resellers,
physical distribution firms marketing services agencies, and financial
intermediaries. Aci Company has maintains strategically located sales centers
in nineteen different locations across the country. It has developed an
advanced distribution system through its more than 300 skilled and trained
manpower and a large fleet over eighty vehicles. The distribution system is
capable of handling continuing volume of diverse range of products from the
various businesses.

4.1.4 Buyers:
Buyers are that kind of People who Buy Products and Services to
Consume or Buy Products and Services to sell .We know Aci is a very big
Company so it has So Many Buyers.

4.1.5 New Entrants:

This is a competing world .Every company competing with each
other, and many other companies willing to enter in the industry. So in

7
 ACI Biscuit

Bangladesh many other stronger and big company willing to enter in the many
industry of Bangladesh. In Aci Company’s point of view all other new
company are there friends.

4.2) Macro Environment:

The most general environment; include governments,
economic conditions, and other fundamental factors that generally affect all
organizations.

4.2.1) Demographic forces:

Demographic Measures of various characteristics of the
people who comprise groups of other social units .In Bangladesh there is over population
so this huge population affected all the company. So it is also affected Aci Company.

4.2.2) Economic forces:

Economic is a factors that affect consumer purchasing
power and spending patterns. We Knows that Bangladesh is a very poor country, and its
Economy is not so good. So it’s affected all the company. In Aci Company’s point of
view it contributions of national Economy is 112,270,813 crore taka and given tax is
56,804,522 crore taka.

4.2.3) Natural forces:

Natural resources needed as inputs by marketers or that
are affected by marketing activities. Aci Company’s has it own a raw material

8
 ACI Biscuit

Produced company and its name is ACI Formulations Ltd. It Produced Raw
material for the company, and its use Natural forces. It don’t ruin the
environment because the company use a particular type of plant that reduce
the wastes. And it doesn’t pollute the air or rivers.

4.2.4) Technological forces:

Technological Forces that create new technologies,
Creating new product and market opportunities. In Aci Company’s point of
View they use Advances Technology, Advances production techniques.

4.2.5) Political forces:

Political forces include laws, agencies and pressure
groups that influence and limit organizations and individuals in a given society. Now in
Bangladesh Political environments are much stable. So it affected good impacted on Aci
Company.

4.2.6) Cultural forces:

Institutions and other forces that affect a society’s basic
values, perceptions, preferences, and behaviors. In Aci Company’s point of view Aci Do
not doing any thing wrongs that affect Bangladeshi people’s values. They are working to
improve Bangladeshi People’s values.

5) SWOT analysis of the company:-

The overall evaluation of a company’s strings, weakness, opportunities and threats is
called SWOT analysis.
S =Strength
W= Weakness

9
 ACI Biscuit

O =Opportunity
T = Threats.
SWOT analysis helps to explore the areas of possible changes in marketing activities. To
SWOT analysis we have to divide the environment into two kinds – internal environment
and external environment. Internal environment consists of strengths and weaknesses. On
the other hand, external environment consists of opportunities and threats.

5.1) Internal environment analysis:

5.1.1 Strengths: ACI Company has much strength such as –

 ACI has great company reputation.
 Domestically brand image.
 Customer loyalty.
 Availability of capital.
 Use of modern technology.

5.1.2 Weakness: ACI Company has some weaknesses such as –

 Lack of brand awareness and image.
 The channel of distribution is not strong like competitors.
 Insufficiency in information system for efficient supply chain
management.
 Lack of promotional programs.
 ACI Company may suffer from geographical coverage.

5.2) External environment analysis:

5.2.1 Opportunities: ACI Company has many opportunities such as –

 Increasing demand.

10
 ACI Biscuit

 Increasing rate of population.

 Mature retail market in Bangladesh.
 Expanding awareness of people towards quality foods.
 Availability of raw materials.

5.2.2 Threats: ACI Company has some threats such as-

 Too many company manufacturers in the rural and urban areas.
 Introduction of advance technology.
 Imposition of higher tax rate on small business enterprise.
 Possibility of economic depression.

6) The Boston Consulting group (BCG) Growth-Share Matrix Analysis Of

Company:
The growth share matrix is a chart created by the Boston consulting group in
1970. BCG analysis is a technical term which help a company decide what products to
add to its product portfolio to use the chart we would plot a scatter graph of ACI’s
business unit. Ranking their market share and the growth rate of their respective
industries. On the horizontal axis: relative market share- this serves as a measure of SBU
strength in the market on the vertical axis: market growth rate this provides a measure of
market attractiveness. By dividing the matrix in to four areas four type of SBU can be
distinguished.

11
 ACI Biscuit

BCG Matrix
Relative Market Share Position
High Medium Low
1.0 0.50 0.0
Industry Sales Growth Rate

High
+20
Stars Question Marks
II I

Med
0

Cash Cows Dogs

III IV
Low
-20

Actually it is very difficult to analyze this type of big company in BCG matrix. What
ever, we tried in here to analyze this company with the help of several documents and
various view. ACI Consumer Brands was initiated in 1995 with two major brands of the
company – ACI Aerosol and Savlon and also other brands. After that, the sells of this
brands is huge and company earned a lot amount of money. We can define it a CASH
COW. ACI Trading Limited of ACI Company has a high market share with a high
growth rate. And it’s the STAR in the Company. Aci Pharmaceutical is an old company
when it started it business it becomes a star in the company but now there is a lot
Pharmaceutical company in Bangladesh. And they also contribute the Pharmaceutical
industry. That’s why Aci Pharmaceutical is now QUESTION MARK of the company.
Its growth rate is high, customers purchase it more and more but in the total market share
it has a little place. The last one is Tetley ACI Bangladesh Limited. It’s new in market no
one know about this tea brands, that’s why its sales is lowest. So we can define it as
DOG. Now company thinking to modify this product and reduce its price to achieve high
market share.

12
 ACI Biscuit

Now we have performed our analysis of our chosen

company now we have develop a new product for Aci
Company.

Our Chosen Product is ACI Biscuit.

7) Why we chosen ACI Biscuit: ACI Biscuit is much different than

traditional biscuit in which Spirulina powder will be mixed in addition to
other ingredients. Spirulina is one kind of lichen or alga which is found in
sea. It is full of different kind of vitamins, protein and minerals which are
helpful for our human body that protects our body from different kinds of
diseases.
Bangladesh is a very small country, but its population is very large. Most of
the people of our country are poor. So, they do not have the capability to eat,
egg, and milk and meat regularly which are the main source of protein.
Therefore, if the consumers consume ACI biscuit, they will get vitamins,
proteins and minerals without having egg, meat and milk in cheap rate.

8) Target market / market Segmentation strategy: In Bangladesh there

are two types of biscuit producer. One type of producers is producing quality
products considering the demand of upper class people of the society. On the
other hand there are some other types of products which are located in the
local areas of Bangladesh considering the demand of the rural area’s low-
income people.

13
 ACI Biscuit

But the products that are produced for rural area’s low-income people are
low- quality product. Sometimes they are produced with the adulterate
materials. Therefore, observing picture of the current market, ACI Company
Ltd. has targeted the people who have low- capacity to purchase eat, meat
and milk and all kinds of people in our society.

Market segment

Urban Rural

High level Upper Middle Working

lowers class class

Upper Working Lower Upper

uppers class Lowers lowers

Target
marketing

14
 ACI Biscuit

9) Product/ Market Expansion Grid:

Product/ Market Expansion Grid

Existing New
Products Products

Existing 1. Market 3. Product

Markets Penetration Development

New 2. Market
4. Diversification
Markets Development

Market Penetration: A strategy for company growth by increasing sales of current

products to current market segments without changing the product.

Market development: A strategy for company growth by identifying and developing new
market segments for current company products.

Product development: A strategy for company growth by offering modified or new

products to current market segment.

Diversification: A strategy for company growth through up or acquiring businesses

outside the company’s current products and markets.

15
 ACI Biscuit

We know ACI Company is pharmaceutical based company. Now they are Diversified
their business into new products and markets which is called ACI biscuit. And it’s called
Diversification.

10) Developing A marketing Mix (4ps) for the ACI biscuit:

10.1) Product: Characteristics of ACI Biscuit :-

1) Size- a) Small packet
b) Medium packet
c) Large packet

2) Quantity: - a) 8 peace, 30gm

b) 14 peace, 90gm
c) 20 peace, 140gm
3) Ingredients: - a) Flour
b) Sugar
c) Salt
d) Spirulina powder
e) Sodium Benzoate
f) Butter Oil
g) Water

10.2) Price / Pricing strategy: - For pricing strategy we followed (Market

Pricing strategy.)

Penetration pricing involves the setting of lower, rather higher prices in order
to achieve a large, if not dominate market share. For entering the new market this strategy
is most often used by marketers. That why we have took this pricing strategy.

For example Olympic Biscuits Company provides 4 peace biscuits in one packet
which cost 2 taka; we will provide 8 peaces at same price and higher quality.

We will launch 3 different types of package;

16
 ACI Biscuit

Package details Price

Package -1 8 peace , 30gm 2 taka
Package- 2 14 peace, 90gm 5 taka
Package -3 20 peace, 140gm 8 taka

10.3) Place/Distribution strategy: -ACI will use marketing

intermediaries to bring ACI Biscuit to market. It will use a distribution channel like:

Manufacturer Retailer Consumer

In the city areas ACI will sell ACI Biscuit by using small rickshaw ban in shop to shop
for commission basis. Major marketing will be conducted through newspaper, magazine
advertisements and local retail shop distribution during the first three months of
operation.

10.4) Promotion: - ACI Biscuit will carry out its marketing strategy and
achieve its objectives through a variety of scheduled programs. At the beginning stage
ACI plans to initiate a TK 500000 trade sales promotion to educate dealers generate
excitement for the product launch in the next year. As part of this trade promotions ACI
takes following initiatives

1. Leaflet distribution to consumers' homes.

2. Newspaper advertisements will be purchased during the first three months of
business until a image is built.
3. ACI will offer discounts to recreational groups such as children/adult baseball and
football teams who play in nearby facilities.
4. Promoting products for an introductory price at its Grand Opening.

5. ACI will "adopt a school" and provide ACI Biscuit to individuals who are selected

17
 ACI Biscuit

for having excellent attendance, good grades, and good citizenship. Other
incentives will include sponsoring a good attendance program by purchasing a
bike and raffling it to students with the best attendance. This will be a promotional
strategy to encourage business.

10.5) Branding/ Branding strategy: - Aci is a successful brand so we use

brand extension strategy like ACI Biscuits. We launch a new brand in favor of ACI
company.
We think for this branding strategy. Our new product will be instant
recognition and faster acceptance. And one of the main reasons its same because the high
advertising cost.

Four brand strategies:

Product Category
Existing New

Existing Line Extension Brand Extension

B ra n d N a m e

Aci biscuit

Multi brands
New New Brands

11. Conclusion:
As we analysis the ACI company, we have collect information about their company. The
ACI Company is well-established in their products. The qualities of the products are also
standard especially in Pharmaceuticals items. Hope in future the company will increase
their production both in the sister company they have.

18
 ACI Biscuit

Appendices
1) Principles of Marketing 11th edition By Philip Kotler, Gary Armstrong.
2) Annual Reports of ACI Company.
3) www.aci-bd.com

19