Strategic Marketing

Course Code: MKT 460

Section: 6

MID #1

Submitted To: Submitted By:

Sherina Idrish (SEH) Nafis Faisal Choudhury 1632855030

32855030

Senior Lecturer

North South University

Submission Date: 16/ August/2020

1)
Bargaining power of suppliers Value Competitive rivalry
Switching costs is high. The products 3
of Haque industry such as Mr Energy
require basic ingredients, such as
flour, sugar and butter. Consumers
tend to demand for high quality
products at lower costs. Most of the
ingredients are locally produced,
which means there are higher number
of suppliers and supplies can be
managed easily for production. This
makes switching cost easy for them
and the means the power of the
supplier is relatively low.
Differentiation of inputs is high. 3
Among many suppliers, Haque
industry company has established
relationship with their suppliers. That
is a differentiation as they can get
basic ingredients like sugar, flour
from their supplier at a cheaper price.
Having a good relationship gives both
sides the incentive that they can agree
to a price range that benefits both.
Importance of volume to the buyer is 2
moderate: Since Haque industry
produces huge volume of product they
require a lot of ingredients from their
suppliers. Suppliers tend to produce in
bulk and need to sell everything.
Since Haque is a higher volume buyer
they have a good bargaining power.
Presence of substitute input is 2
moderate: Haque industry could work
with another supplier, who can also
switch to close substitute for
ingredients. If they can find a supplier
with better substitute ingredients for
their products they can easily switch.
The buyer will have more power in
value
Industry growth is low since other 1
brands such as Nabisco and Olympics
,is a meta market that have vastly
consumed the food industry, with
similar range of products. Haque
brand has increased its food product
line from chocolates and chips but
competitors are not far behind
(Shehab, 2019).
Intermittent overcapacity is moderate 2
During certain times of the year the
government supplies students with Mr
energy biscuits to help malnourished
children. Recently given to school
children by the government for corona
virus lockdown (Thapa , 2020).
Product difference is low since 1
competitors like Nabisco and
Olympics have a a similar range of
product like as Haque (Shehab, 2019).
Brand Identity is low since their 1
product packaging is very similar to
competitors, there is not much
difference (Shehab, 2019).
this case.
Average:
Significance/meaning: The overall
situation with porters supplier force is
in moderately favourable position,
with this brand.
2.5 Average: 1.25
Significance/meaning: As competitors
have replicated similar products, so
the lack of brand identity puts the
brand in an unfavourable low position.

2. Growth strategies Haque industry can implement include Diversification and concentration

Concentric diversification will allow Haque industry to add a wide range of products like chips
and chocolates. As they are part of the same Meta market. This will allow Haque to expand its
product line and grow overall as an industry. If they are able to implement this growth strategy it
will help them in the long run. As we know this industry uses its resources wisely. They can use
organic and affordable ingredients to make their products (Shehab, 2019). For example: A new
line of chips that is high in protein and offers energy and other nutritional value like their already
existing product Mr Energy does.

Vertical integration will also enhance the brand partner with other brands of the same caliber and
decide to work with them. This will make them less reliable and equally accountable with the
partner brand. Partnering with Olympics for example will also help lower their costs, and
ultimately the value of the brand Haque will increase.

 Here is a picture of MR. ENERGY one of the most popular products of Haque.

 Info graphics showing the growth in this industry.

 3.

Full throttle will allow new

High customer acquisition to increase.
If we target our market, people SLINGSHOT
in rural area, with the help of
Marketing promotional activities
Retention Give them a positive message
Profit and creating a lifetime value
Potential with those customers. This
initial investment will bring high
return and low risk.

Pay as you go We must restructure after

Low observing the feedback and see
if there is enough new entry of
loyal customers. The feedback
received from them will help
up comprehend the market gap
and find ways to lower the risk
and profit on investment.

Short Long

Acquisition investment recovery time

Example:
ROI for Haque: Amount gained through new customers: 90,000 tk, Amount spent: 20000

Return on Investment: ( 90000-20000) = 3.5% ROI

20000

b) We must establish trust among our target audience, which includes investing in promotional
activities. For example going to rural area engaging with the target market. Also engaging with
children who are also our target market. Introduce the brand and the products value to them in a
way they can get a positive impression of the brand and what it’s trying to promote. Educate
them about the nutritional value and quality. Haque must also emphasize on customer equity.
The brand has to find different ways to reduce acquisition costs and find new ways to retain loyal
customers through implementing better marketing mix strategies.
4. a)
Demographic segmentation Geographic segmentation

Age: People of all age, especially children.
Gender: Both male and female
Income range: lower class people
Area: Haque products would benefit those in
rural areas. People can enjoy their snacks as it
is a tasty and nutritional treat at a low price.
Children and adults who are malnourished can
enjoy.

Family size: All Location: Affordable products to be distributed

throughout all divisions of Bangladesh.
Occupation: Middle income to lowest class.

b)
Functional Benefits Emotional Benefits
Helps you become healthier: Haque products The taste of their product like Mr energy is so good
have high nutritional value and helps people that people savor it. The flavor is unique which leaves
become healthier. Example: Mr energy biscuit people a positive impression of the product.
has energizes people and there is good amount
of carbohydrates that can be beneficial. People are happy regarding the fact that the products
. are highly affordable. Mr energy is being sold for only
Saves you money: The products sold by the 12 taka.
brand like biscuit, chips and cookies are highly
affordable, with most products costing below 50
taka which is highly affordable by people of all
classes.

c) Unique selling point attributes: Price: Haque offers a better price than its competitors like
Olympics and Nabisco. For example Olympics sell their Olympics sell their energy biscuit at a
slightly higher price at 38 taka while Mr Energy is being sold for 12tk. The products are similar
but the price and quality Olympics offer is much different with makes it a tough competitor in
the market. Haque brand is offering better quality and price than Olympic.

d) The positioning statement of Haque brand is for lower class people and children looking for
affordable snacks. Our products like Mr Energy are both affordable and contain nutritional value
needed for all, to savor and energize them after a hard day of work.
 Work Cited

1) Thapa . S, (19, May, 2020), WFP and Government of Bangladesh deliver high-energy
biscuits to school children affected by COVID-19 school closures. Retrieved from
Shttps://reliefweb.int/report/bangladesh/wfp-and-government-bangladesh-deliver-high-
energy-biscuits-school-children?fbclid=IwAR0EjXti8eH8gHMsv-
N4QcW1Imw_uMMw1eqjWkRDLKEQgsU4gUKrsIrn_80

2) Shehab . M. (10, April, 2019), Biscuits and Confectioneries Industry of Bangladesh.

Retrieved from https://www.lightcastlebd.com/insights/2019/04/10/biscuits-and-
confectioneries-industry-of-bangladesh.

3) Pictures and info graphics retrieved from Google images:

https://www.google.com/search?q=mr+energy+by+haque&biw=2049&bih=897&tbm=is
ch&source=lnms&sa=X&ved=0ahUKEwip9-
bF7Z7rAhV7yzgGHbd6B9gQ_AUICygC#imgrc=O9FkIbAtv0FRnM.