Product Level Planning

Table of Contents executive director Summary 2 Market psychoanalysis 3 SWOT psychoanalysis 4-7 Objectives 7 merchandising Strategy 8 meet Program 9 Financial gibbousness 10 Feedback &038 regard 10 Conclusion 11 References 11 Executive Summery cementumumum Industry is highly important segment of Bangladeshs Industrial sphere of influence &038 Plays a vital role in socio-economic development.Although cementum industry of Bangladesh has witnessed its ups &038 d witness in recent past but in last decade it has recovered &038 now its a self-sufficing industry of Bangladesh not only fulfilling domestic needs of Bangladesh excessively exportation a huge sum of money of cement to other countries, bringing distant reserves &038 attend in up lifting Bangladeshs GDP. Bangladesh is currently operate at their maximum qualification due to the boom in commercial message &038 industrial locution within Bangladesh.In this report I feature selected lynchpin cement, majestic cem ent Ltd (OCL) of Khansons Group simply c in in alled venerable cement &038 we volition spot how they do product planning for that? Khansons Group has encompassing its industrial demesne by putting-up a clinker grinding cement plant named as Olympic cementum Ltd. The plant is located at Rupatoli, Barisal all in a row along with its textile industries. The finished product (cement) has been mark as establish &038 the same has become popular in the local trade. This cement project commenced its initial toil at 800 tpd and gradually increased the merchandise to the sequester aim of 1,600 tpd.Olympic Cement Ltd (OCL) is one &038 only cement f feignory which has targeted to get a line the entire demand of cement in Southern Bengal. As a result, OCL has concentrated its sales on a soaring trend by metamorphose magnitude turnout volume. OCL is maintaining the reputation of its quality product and aiming at the extended project in solar days to come. Current Market patch general Market Situation Bangladesh cement industry is the 40th largest market in the world. There ar 70+ cement factories in Bangladesh and daily production capacity is 16. 687 Million MT.In January 2012, Bangladeshs Export Promotion Bureau released entropy confirming that cement exports had witnessed a 21% increase in the kickoff seven months of the current fiscal family (July 2011 January 2012). The boost in the cement sector is because of the rising construction activity in the country &038 increasing development expenditure by the govt. Due to this the sales of cement sector will also rise every(prenominal) year. Product Situation Since Cement is a specialized product, requiring sophisticated infrastructure &038 production location, so, Most of the cement industries in Bangladesh ar located near/within a river align that ar rich in clay.Iron &038 mineral capacity so undercoat cement is situated near to the bank of river Kirton Khola. Anchor cement installed capacity i s 1,600 tpd at present with the turnover of 50 crore in a year. competitory Situation In competitive situation we will describe all the competitors of Anchor Cement producing gray cement. There atomic frame 18 70 + firms in the market along with Anchor Cement. every these companies atomic number 18 using various marketing tactics to grape as much market theatrical role as possible but they ar acting like a cartel under the tree of APCMA.They are producing same quality of cement with all most same legal injury and features thats why contest in the market is very tough for local as well(p) as remote market. All are using same good deal &038 penetration strategies to cover major portion of the market. Some are using toll attractionship scheme but due to cartel act behavior they are not getting the target results that they want to achieve. before long Crown cement is the market leader while Anchor cement is a niche in the national market but it is the leader in the lo cal market of Barisal &038 southern part of Bangladesh. Distribution SituationAnchor Cement go with uses different channels of distributions to transfer the gray cement from smart fall to the different part of Bangladesh. ACC > Whole Sellers > Retailor> guest ACC > Retailors> Customer ACC > Customer ACC > Regional Offices > w/s Retailors Macro-environmental Situation Macro environmental factors directly or indirectly effect the production of the company &038 its market. Macro- Environmental factors are the factors that are not in the control of the company. These factors are.. 1. policy-making 2. Law &038 order situation 3. Cultural values 4. Technological pitch . Demographic trends 6. Economic Condition 7. Inflation Opportunity &038 Issue Analysis After completing the market analysis now we will do analysis of opportunities &038 issues for the ACC. Opportunity is a chance of progress or betterment that is religious serviceable in the market &038 the company has to gain it for the progress and gainfulness while issues are the weakness or threat for the company to rescind or settled down. For this purpose we have to do SWOT analysis of ACC. Strength of ACC Strengths are the internal positive factors of advantage that a company possesses. next is the strength of ACC. Installed Capacity Installed capacity of company is 16. 687 Million MT daily &038 they are producing 6007. 32 MT per annum so they can die the production easily by proper implementing their marketing mix strategies &038 it will directly increase profits of the company. oRaw Material Anchor Cement Company is situated near the bank of the river kirtonkhola. So they can easily avail the huge reserve of raw materials with a very low cost as compare to other competitors as their cost of material is high. o amply choice of ACC Quality of ACC is much better than the standard set by Bangladesh &038 importers.Quality of production is better than most of the competitors in the ma rket. oCheap Labor They are using twopenny-halfpenny labor market of Bangladesh which is strength of them &038 due to this their price is low as compare to other compotators. oGood Govt. Policies Local &038 federal govts. Policies are supportive &038 genial to the cement sector. They are getting many benefits in term of electrical free energy etc from BD govt. So over all ACC is enjoying good environment created by Government. flunk of ACC Weaknesses are the internal negative factors of a company that should be avoided or to be controlled. pursuit are the negative factors of ACC. oNot Utilization of Full Capacity ACC is not utilizing its full capacity of production of gray cement. They can produce more per annum so not utilizing their full capacity is also their disadvantage which they should permute it into opportunity. oFuel &038 Electricity Charges ACC cost comprises more than 50% costs of burn &038 electricity. So they should minimize these expenses as much as they can. I t can really help them in uplifting their market share &038 growth &038 profit as well. They can convert their system or can generate their own electricity by investing in this sector. wariness ACC major boards of directors are from the same family which is also a negative factor of them. So they should say competent personnels in the company for the growth. oFreight Charges Freight or transportation charges to other move of the country are also a problem for them which should be settled down as soon as possible. They should minimize their expenses to avail greater markets present in other parts of Bangladesh. Opportunities for ACC Opportunities are chances for progress or advancement that is available in the market and the company has to avail it for the progress and profitability.These are positive external factors. Following are the opportunities available for ACC. oGovernment Development Expenditure Govt is spending huge amount on development projects like roads, schools, hos pitals, dams &038 infrastructure etc. ACC can avail these opportunities by responding on time to these projects. oConstruction of Big projects Recently in that location are many big projects are going on Bangladesh like construction of Jamuna future park, many high rise buildings etc, also in nationally &038 in Barisal.ACC should explore all these opportunities to increase its market share. oDemand of Bangladeshi Cement Recently Bangladeshi cement demand is increasing day by day in foreign markets so ACC can improve its foreign market share. This will be very favorable &038 profitable for them. Threats for ACC Threats are the negative factors that are available in the external environments. These are unhidden threats that are waiting for &038 company should be ready or prepared to tickle down all these threats for their existence &038 survival. Following are the threats available for ACC. High Energy Prices Energy prices are constantly increasing in Bangladesh &038 cosmopolitan which is directly affecting the profitability of ACC because major portion of cost consists of fuel &038 energy expenses so they should find out alternative source of energy to minimize the cost of goods. oHigh take aim of Taxes &038 Custom duty High level of cost &038 custom duty are affecting its profitability. So govt. should take constructive stairs for the development of the industries. oCompetitors There are 70+ firms in cement industry which make the competition very tough.Each firm is tenor to get as much share as they can and they are using different tactics to excel their sales. So, ACC should take proper meters for its growth while taking into consideration all the Competitors. oPolitical Instability It is also a main threat for ACC because it brings changes in laws &038 regulation accordingly. Objectives After analyzing all the factors now we will set the objectives or targets we can say, for ACC that is going to be achieved in the next financial year of the company. Our objectives should be ? Specific ? mensural ?Achievable ?Realistic ?Time bound There are 2 kinds of objectives which are Financial Objectives selling Objectives Financial Objectives Financial objectives are tie in with the financial performance of the company or simply objectives that relate to finance. Following are the financial objectives that we can set for ACC for 2013. ?Profit after taxes should be 60 crore ?Cash flow should be 10% high Marketing Objectives Financial objectives should be convertible to marketing objectives. Marketing objectives are think to market or overall industry. Following are the marketing objectives of ACC. sales should be 50% high Exports should be 40% Average price should be up to 450 pggross revenue of 5,00,000 tons should be achieved in 2013 Expand the number of dealers Market share should be up to 5% Marketing Strategies Strategies are the game plan or road map to achieve the objectives set by the company by utilizing its resources. Followin g are the marketing strategies that should be used oNew Markets New markets in outside &038 inside of the country should be achieved. oDistribution outlets Distribution outlets or big distributors must be located in all the targeted markets. oAdvertisement 2% budget should be allocated for advertisement campaign on bill boards &038 certain media channel. Low determine strategy Low pricing strategy should be adopted as compared to competitors. oAlliance Alliances should be made with distributors &038 realtors in important markets &038 preference should be given to them. oSales pass Sale force or sales agents should also be hired in remote areas with 5-8% commission. oMarket Research 10% Budget should be allocated to market research to have it off competitors, customer behavior &038 new markets. oLower cost of goods strategy Cost of the cement should be low down to earn maximum profit Action Programs Marketing strategies should be supported with action programs or day to day plans. Each strategy should be broken down in to small programs or action that can easily be implemented. It tells us that which marketing strategy is to be completed by whom, when how &038 what will be the cost of that? ?Sales segment have to do 25 crore sales after every 4 months. ?Production department have to produce 0. 25 one thousand thousand tons after every 4 months. ?Purchase department should corrupt furnace oil &038 raw materials 5% less as compared to previous year. ?Management should reduce unproductive expenses 10% as compared to last year. ?Other incomes should be increased up to 10 crore as compared to last year. Marketing department should achieve their target within given budget on the stem of six months. Financial Projections Following are the overall projection for year 2013. In millionsIncrease Sales500060% Cgs (Cost of goods sold)(3200)36% Gross Profit120080% Other Expenses18010% Other Income2040% Profit in the beginning Taxes800 Taxes200 Net Profit60020% Feedback &038 Control In the last stage of product level planning we will consider does the company actually achieved its objectives or not. In this step we will compare the actual results with the standards set out there in the planning stage.According to the in a higher place results &038 figures ACC has achieved all the targets &038 goals efficiently &038 effectively. They have justly implemented the planning as compared to previous year so they have achieved the level of performance what they want. Even more fruitful results have been achieved. Usually, Anchor Cement Company carries out three types of controlling strategies which are as under.. oAnnual Plan Control ACC normally do audit or cheque up at the end of year that whether that have achived their annual goals/objectives or not regarding sales, profits, market share &038 growth etc.They want to know the counterpane between actual &038 standard, if found any &038 then will nail down it down in the upcoming period. If they hav e performed much better then they watch out the reasons behind that to implement forever in the organization. o examine Control Internal Audit is carried out by the internal auditors. External Audit is carried out by external auditors. oStrategic Control Strategic Control is the step of the last section. In strategic control usually they evaluate whether the Anchor Cement Company marketing strategy is appropriate to the market material body or not.If not they do Changes in it to make implementable in the market. They change their strategy according to the market situation that changes so rapidly. Conclusion From the above analysis we can easily conclude that how a company usually does their product or marketing planning. I pick Anchor Cement Company collect data from different sources (mainly from web) &038 then make the palling for them accordingly. All the above discussion gives us a birds affectionateness view regarding a good product planning that a vendor can do. References http//www. khansonsgroup. com www. scribd. com Marketing Management- Philip Kotler, 11th edition