Marketing Report on SQUARE CONSUMER PRODUCTS LTD

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1.1 Introduction

Spices are the imperative ingredient to make food tasty and delicious. It is the most common and important ingredient for food items of our daily consumption. A Bangladeshi cannot think of a meal without using spices, it is our food habit and tradition.

The history of spice is almost as old as human civilization. It is a history of lands discovered, empires built and brought down, wars won and lost, treaties signed and flouted, flavors sought and offered, and the rise and fall of different religious practices and beliefs. Spices were among the most valuable items of trade in ancient and medieval times.

As long ago as 3500 BC the ancient Egyptians were using various spices for flavoring food, in cosmetics, and for embalming their dead. The use of spices spread through the Middle East to the eastern Mediterranean and Europe. Spices from China, Indonesia, India, and Ceylon (now Sri Lanka) were originally transported overland by donkey or camel caravans. For almost 5000 years, Arab intermediaries controlled the spice trade, until European explorers discovered a sea route to India and other spice producing countries in the East.

1.2 Background of the Study

The report has done to complete the partial fulfillment of Effective Business Communication for

Managers (EMBA_504) course. The entire report is done under close supervision and

instruction of our honorable course instructor Engr. Kamrul Hassan.

We have completed our report based on a comparative study between Open Powder Spice and

Branded Spice taking Spice as generic product in our consideration. We focus on the

consumption pattern of spices, health benefit of spices, spice consumption level in our country,

advantage and disadvantage of open and branded spice. We also focus on consumer trend of

using spices.

Spice as powder form found in open market and in packed condition. These two the available

option for a consumer to purchase powdered spice. We have conducted a consumer survey on

structured questionnaire on brand perception of spice. Finally draw our conclusion on market

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share analysis and marketing strategy of RADHUNI POWDER SPICE - a pioneer and leading

spice brand of our country

In 2001, Square Consumer Products Limited introduced “RADHUNI POWDERED SPICE” with

a vision to provide quality “ready-to-cook” food ingredients for the homemakers. Within a very

short span of time, RADHUNI POWDERED SPICE drew attention of modern homemakers

those who had a strong demand for quality, convenience and timesaving cooking. Dedication to

purity, consistent quality, and authentic taste has given “RADHUNI” unique position in the

market. Within a year Radhuni Spice achieved the crown of brand leader.

1.3 Objective of the Study

1.3.1 Primary objectives:

The primary objective of this report is to analyze a comparative study between open spices and

branded spices and to identify the consumer prection of branded spices.

1.3.2 Secondary objectives:

To explore new segments of market and to cater it.

To analyze the marketing practices of Basic Spices.

To analyze the consumer’s opinion and expectation regarding Basic Spice.

To identify the gaps between the customers’ expectations and existing market scenario of Basic Spice.

To Motivate and convert open spice users to branded spice especially to Radhuni.

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1.4 Methodology

1.4.1 Research Design:

Once the problem is identified, the next step is the research design. Research design is the basic

framework of rest of the study. A research design specifies the methods and procedures for

conducting particular study.

In this project, we are following descriptive research design.

1.4.2 Source of Data

There are two types of data:

1. Primary data

2. Secondary data

Primary Data: The primary data is fresh information collected for a specified study. The

primary data have gathered by observational, experimentation and survey method. Here the

entire scheme of plan started with the definition of various terms used, units to be employed, and

type of enquiry to be conducted, extent of accuracy aimed etc.

The methods commonly used for the collection of primary data are:

1. Direct personal investigation, where the data is collected by the investigator from the sources

concerned.

2. Indirect oral interviews, where the interview is conducted directly or indirectly concerned with

subject matter of the enquiry.

3. Information received through local agencies, which are appointed by the investigator.

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4. Mailed questionnaire method, here the method consists in preparing a questionnaire (a list of

questions relating to the field of enquiry and providing space for the answers to be filled by the

respondents.), which is mailed to the respondents with a request for quick response within the

specified time.

Secondary Data:

The secondary data refers to data, which already exists. The secondary data collect from internal

records, business magazines, company websites and Newspapers.

1.4.3 Research instruments

For the collection of primary data, a structured questionnaire was prepared covering various

aspects of the study. The questionnaire contains closed-ended and dichotomous questions.

Sampling Procedure:

It is a procedure required from defining a population to the actual selection of the sample.

Sample:

A part of a population, which is provided by some process on other, usually by deliberated

selection with the object of investigating the properties of the parent population set. Non

probability sampling method is in deterministic method where the sample size in numerous and

can’t be determined. So for our convenience we take convenience-sampling method where all the

population in sample is given equal opportunity.

Sampling Method: - Convenience sampling method.

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1.4.4 Statistical Tools Used

1. Population: Retailers in Dhaka and Chittagong metro city area.

2. Source of data: The two important sources of data are the primary data and secondary data.

The primary data is collected through survey method with the help of questionnaire and personal

interview. The secondary data is been collected from consumer attitude books.

3. The information is collected through survey done in Dhaka and Chittagong metro city area.

4. Sample unit: The sample unit consists of retailers in Dhaka and Chittagong metro city area.

5. Sample size: The sample size is 200 respondents.

6. The sample taken for the study caters to upper class and middle class of the society.

7. Sample method: the sample method used is non-probability. In non-probability sampling the

chance of any particulars unit in the population being selected unknown.

8. Procedure: the procedure used for sampling is convenient sampling in this method the sample

unit is chosen primarily on the basics of the convenience to the investigator.

9. The survey consists of structured questionnaire.

10. The questionnaire consists of both open and closed-ended questions

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1.5 Scope

The scope of the study is limited. The study is a very minor contribution to the company as it is

only restricted to the twin cities (Dhaka and Chittagong). The study would only be a drop in the

ocean, Can help the marketing and sales in this area. The study can be conducted on a national

basic too with a large sample size and interviewing many numbers of respondents.

The following areas and issues are covered during preparation of the report.

Retailer:

Retailer is a person or business who sells products to the public.

Brand:

Brand refers to the identification of the product given by the manufacturer.

Brand Loyalty:

Brand loyalty refers to the continuous and repeated purchase of a particular brand without any

wavering purchase pattern.

Respondent:

Respondent is a person who is being interviewed for the purpose of conducting the study.

Market share:

The amount that a company sells of its products or services compared with other companies

selling the same things

Promotional Activities:

Promotional activities include advertising, personal selling, sales promotion, and publicity,

which have their own characteristics and cost but have common objectives of achieving high

sales by creating awareness.

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Incentives:

Offer of an article at frees of cost or less price of the market can be termed as incentives.

Interviewer:

A person who is answerable to the interviewer of the proposed questions.

Interviewee:

A person who carries on investigation for the purpose of achieving the objectives of the project.

Sample:

The selection of set of people from the total population for the purchase of carrying on the

investigation.

Survey:

It refers to the questionnaire administered to the subject who is identified from the population

with the help of probability or non probability sampling.

Questionnaire/ Research instrument:

A set of questions that are framed to be answered by the respondents for the purpose of

achieving the research objectives. In questionnaires there are two types structured and

unstructured. There are four types of questions in a questionnaire on open ended questions,

closed ended questions, disguised and interrogative questions.

Brand awareness:

Knowing brand; knowing that particular brand exists and is important; being interested in

particular brand: brand awareness refers to the consumer awareness of the particular brand.

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1.6 Limitation

The study was confined to limited retailers and consumers only

The duration of the study was restricted for 8 weeks only, which is not sufficient to study

the entire consumers and retailers in the market.

The analysis cannot be straight away used in decision making, as simple is very small

when compared to the total consumers retailers in the market.

The survey is conducted only in Dhaka and Chittagong metro city area only. By which it

is very difficult to know the actual market condition.

The present study deals with marketing strategy of Radhuni Brand only.

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2.0 Basic Spice – Nuts & Bolts

Spices are the aromatic parts of tropical plants traditionally used to flavor food, or the dried seeds or fruit of temperate plants used in the same way. Some of the substances we call spices come from the bark or roots of certain plants, but the majority are berries, seeds, or dried fruits.

Bangladeshi cuisine shows an impact of the cuisines of these two countries. However, despite that, Bangladeshi food has its own soul, which ranges between very “spicy” and extremely “sweet.” This difference is created with the help of the top spices of Bangladesh,

Spices are the imperative ingredient to make food tasty and delicious. It is the most common and important ingredient for food items of our daily consumption. Basic Spices refers to four core spices namely Chili, Turmeric, Cumin and Coriander. No other spices or ingredients are needed to mix with these spices. These spices can be use in both raw and in powder form. We are talking about powder form of these four spices.

2.1 Chili

Chilies belong to the potato, tomato, and aubergine family of plants, and have been cultivated for

thousands of years. There are at least 150 different types of chilies, which are the world’s biggest

spice crop. They are now grown in all tropical regions and eaten daily by about a quarter of the

world’s population. Chilies are an excellent source of vitamins A and C, and provide that added

benefit to the millions of people who eat them as a means of pepping up a bland and unvarying

diet.

Native range: Central America, South America, Caribbean Islands

Major producers: India, Thailand, Mexico, USA, South Korea, Turkey, Ethiopia, Uganda,

Kenya, Tanzania

Harvesting: Most chilies are grown as annuals and harvesting occurs about 3 months after

planting. Green chilies are immature fruits and red chilies have been allowed to ripen for a

further 4 weeks. Most of the chili crop is dried, either in the sun or artificially.

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Taste and aroma: Chilies range in taste from mild and tingling to explosively hot. Large, fleshy

varieties tend to be milder than small, thin-skinned ones. The characteristic pungency of chilies

comes from the presence of capsaicin, which stimulates the digestive and circulatory processes.

Culinary uses: Chilies can be used whole (fresh or dried), or in crushed or powdered form. Chili

powders are prepared from a variety of mild to hot chilies, and are typically milder than cayenne

pepper. Crushed chili (or chili flakes) contains both the flesh and seeds from red chilies and can

be used instead of chili powder.

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Health Benefit of Chili:

Vitamin A:

There are about 2,224 IU of vitamin A in a tablespoon of chili powder. That is 44.5 percent of your recommended daily vitamin A intake. According to the University of Maryland Medical Center, your body needs vitamin A for the maintenance of your eyesight as you age as well as to contribute to maintaining the health of your bones, teeth, skin, internal membranes and reproductive systems.

Vitamin C:

One tablespoon of chili powder contains 4.8 mg of vitamin C, which is about 8 percent of your daily recommended vitamin C intake. According to the Office of Dietary Supplements by the National Institutes of Health, vitamin C is an antioxidant. Your body uses antioxidants to fight damage from free radicals, which are unstable molecules created during the energy creation process that can increase your risk of developing harmful health conditions like cancer and heart disease. Vitamin C also helps strengthen your immune system and heal injuries.

Minerals:

Chili powder is also rich in several important minerals. One tablespoon contains 143.7 mg of potassium, or 4.1 percent of your daily recommendation; 22.7 mg of phosphorus, or 2.3 percent of your daily recommendation; 20.9 mg of calcium, or 2.1 percent of your daily recommendation; and 1.1 mg of iron, or 5.9 percent of your daily recommendation. It also contains 0.2 mg each of zinc and manganese and 0.5 mcg of selenium.

Other Nutritional Information:

Each 1-tablespoon serving of chili powder contains 23.6 calories, with 1.3 g of total fat, or about 2 percent of your daily recommendation, and 0.2 g of saturated fat, or about 1 percent of your daily recommendation. It contains no cholesterol, as well as 4.1 g of total carbohydrates, 2.6 g of dietary fiber, 0.5 g of total sugars and 0.9 g of protein

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2.2 Turmeric

Turmeric is a member of the ginger family and consists of a bright, deep yellow rhizome similar

in size and appearance to ginger. It thrives in hot, moist, tropical conditions and is valued more

for its bright yellow color than as a flavoring agent.

Native range: Southern Asia

Major producers: India, China, Haiti, Indonesia, Jamaica, Malaysia, Pakistan, Peru, Sri Lanka,

Vietnam

Harvesting: Turmeric rhizomes are harvested about 9 months after planting. The rhizomes are

then boiled, peeled, and dried in the sun before they are graded for quality. Almost all the

turmeric crop is ground and sold as powder.

Taste and aroma: Fresh turmeric is crunchy and has gingery, citrus aromas. Dried turmeric has

a more complex woody aroma but still with hints of citrus and ginger. The taste is warm, slightly

bitter, and sour.

Culinary uses: In Bangladesh, ground turmeric combined with other spices is the basis of

masalas, curry powders, and pastes. It is also used to impart a warm flavour and yellow colour to

many vegetable, bean, and lentil dishes.

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Health Benefit of Turmeric

In addition, ayurvedic and Chinese medicines utilize turmeric to clear infections and inflammations on the inside and outside of the body. But beyond the holistic health community,

Western medical practitioners have only recently come on board in recognizing the benefits of turmeric.

Blocking Cancer:

Doctors at UCLA recently found that curcumin, the main component in turmeric, appeared to block an enzyme that promotes the growth of head and neck cancer.

Powerful Antioxidant:

The University of Maryland’s Medical Center also states that turmeric’s powerful antioxidant properties fight cancer-causing free radicals, reducing or preventing some of the damage they can cause.

Potent Anti-Inflammatory:

Dr. Randy J. Horwitz, the medical director of the Arizona Center for Integrative Medicine and an assistant professor of clinical medicine at the University of Arizona College of Medicine in Tucson, wrote a paper for the American Academy of Pain Management in which he discussed the health benefits of turmeric.

“Turmeric is one of the most potent natural anti-inflammatories available,” Horwitz states in the paper.

“Raw Is Best”:

Natalie Kling, a Los Angeles-based nutritionist, says she first learned about the benefits of turmeric while getting her degree from the Natural Healing Institute of Neuropathy. “As an anti-inflammatory, antioxidant and antiseptic, it’s a very powerful plant,” she says.

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2.3 Cumin

Cumin or Jeera is a small annual herbaceous plant of the parsley and carrot family, and grows to a height of about 25 cm. Cumin grows best in regions with a sunny climate and some rainfall.

Native range: Egypt, Eastern Mediterranean countries

Major producers: India, China, Morocco, Iran, Turkey, Central America

Harvesting: Cumin stalks are harvested when the plants begin to wither and the seeds turn

brown. They are then threshed and the seeds are dried in the sun. In many countries the harvest is

still done manually.

Taste and aroma: Cumin has a strong, spicy, sweet aroma. The taste is rich, slightly bitter, and

warm. The pungency and taste are particularly noticeable in the ground spice.

Culinary uses: Because of its strong flavor, ground cumin is popular in cuisines which are

generally highly spiced such as many Indian and Bangladeshi, Middle Eastern, North African,

and Mexican dishes. Cumin is an essential ingredient in curry powders and masalas. The aroma

of cumin is enhanced if the seeds are dry roasted before they are ground.

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Well Known Health Benefits of Cumin:

For Blood: Cumin helps to lower blood sugar levels and thus helps in maintaining proper blood content levels in the body. This is a great boon for people suffering from Diabetes.

For Iron:

These seeds are very rich in Iron, which makes it an essential natural health ingredient. This iron content helps to treat anaemia, makes blood rich in haemoglobin content and helps in acting as a carrier of oxygen to the cells in the body.

Fights Asthma:

Cumin seeds contain Thymoquinone, which reduces inflammatory processes and other mediators that cause asthma. They also act as a bronchodilator.

Anaemia:

Cumin seeds are rich in Iron which is necessary for the formation of hemoglobin in the blood. This inturn is required for the transportation of Oxygen in the body. Thus, Cumin protects us from Anaemia.

Menstrual Cycle:

Cumin is healthy for women of all age groups and is known to influence healthy menstrual cycle in them.

Cancer:

Cumin is helpful in treating colon and breast cancer due to the presence of thymoquinone, dithymoquinone, thymohydroquinone and thymol, which are anti-carcinogenic agents.

Cold and Respiration:

Cumin is rich in Vitamin C and anti fungal properties, which helps it cure Cold and other respiratory problems. Cumin seeds are also suggested for kidney health.

Digestion:

Enzymes present in Cumin helps to breakdown foods and thus aids in digestion.

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2.4 Coriander

Coriander is a slender, solid-stemmed plant belonging to the carrot and parsley family, growing

to a height of about 0.6 m. It is used as both an herb (the leaves) and a spice (the dried fruits or

seeds). Coriander (Coriandrum sativum), also known as dhania.

Native range: Mediterranean Region, Middle East

Major producers: Eastern Europe, India, Morocco, USA, Central America, Brazil

Harvesting: The seeds are harvested when they change color from green to light brown, then

threshed and dried in partial shade. In some regions the seeds are dried artificially.

Taste and aroma: Coriander seeds have a sweet, woody fragrance with peppery and floral notes.

The taste is sweet, mellow, and warm with a clear hint of orange peel.

Culinary uses: Coriander is generally used in larger amounts than other spices because its flavor

is mild. After dry roasting, coriander forms the basis of many curry powders and masalas. Whole

coriander may be added to chicken and pork casseroles, and it is one of the ingredients in

pickling spice. It is also used in condiments, seasonings, and as an ingredient in sweet spice

mixtures for cakes and biscuits.

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Health benefits of coriander

Skin inflammation: Cineole, one of the 11 components of the essential oils, and linoleic acid, are both present in coriander, and they possess antirheumatic and antiarthritic properties. Some of the components in coriander help the induce urination and the release of excess water from the body.

Skin disorders:

The disinfectant, detoxifying, antiseptic, antifungal and antioxidant properties of coriander are ideal for clearing up skin disorders such as eczema, dryness and fungal infections.

Low cholesterol levels:

Some of the acids present in coriander, like linoleic acid, oleic acid, palmitic acid, stearic acid and ascorbic acid (vitamin-C) are very effective in reducing the cholesterol levels in the blood. They also reduce the level of bad cholesterol (LDL) deposition. More importantly, coriander helps to raise the levels of healthy cholesterol (HDL).

Diarrhea:

Some of the components of essential oils found in coriander such as Borneol and Linalool, aid in digestion, proper functioning of the liver and bonding of bowels, while also helping to reduce diarrhea.

Blood pressure:

Consuming coriander has been shown to positively reduce blood pressure in many patients suffering from hypertension.

Mouth Ulcers:

Citronelol, a component of essential oils in coriander, is an excellent antiseptic. Additionally, other components have antimicrobial and healing effects, which keep wounds and ulcers in the mouth from worsening.

Anemia:

Coriander is high in iron content, which directly helps people who suffer from anemia. Iron also benefits proper functions of other organ systems, increases energy and strength, and promote the health of bones.

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Bone health:

As a rich source of calcium, coriander is of great value for people who want to protect the integrity of their bones. Calcium and other essential minerals found in coriander are integral components of bone re-growth and durability, as well as in the prevention of bone degradation so commonly associated with debilitating diseases like osteoporosis.

2.5 Available Sources of Basic Spice in Bangladeshi Market

In case of powdered spice, consumers have two options to purchase Basic Spices.

Open Market

Branded Spice.

Open Spice: The sources of open is main the bazaars, grocery shops. Tendency of using open spices is high in the rural areas.

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Branded Spice: Branded spice are basically the packed spiced that are available in our country. Major brnads in our country are Radhuni, PRAN, BD, Pure, Arku etc. Brnaded spices claim themselves pure and hygienic.

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2.6 Consumption Level of Basic Spice in Bangladesh*

Chili MT

Open Market++ 68392

Brand 3349

Turmeric MT

Open Market++ 102,060

Brand 2938

Coriander MT

Open Market++ 6052

Brand 1704

Cumin MT

Open Market++ 5134

Brand 294

*Data Source: Bangladesh Bureau of Statistics, 2012

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2.7 Market Trend

Consumers are transforming from basic to value added products or services

Branded products are taking places of traditional consumption patterns

Consumers are becoming more conscious about health and ensuring real food value

People are more convenient seeking, quality oriented, speedy and variety tasting

Delivering the right message to the targeted audience is becoming difficult

2.8 Adulterations of Open Market Spice

Sl.No Spice Adulteration Test

1 Chili PowderBrick powder grit, sand, dirt, filth, etc.

Pour the sample in a beaker containing a mixture of chloroform and carbon tetrachloride. Brick powder

and grit will settle at the bottom.

2 Turmeric PowderStarch of maize,

wheat, tapioca, rice powder and color

A microscopic study reveals that only pure turmeric is yellow colored, big in size and has an angular

structure. While foreign/added starches are colorless and small in size as compared to pure turmeric

starch.

3 Cumin PowderGrass seeds colored with charcoal dust

Rub the cumin seeds on palms. If palms turn black adulteration in indicated

4Coriander Powder

Powdered bran and saw dust, Dung

powder

. Sprinkle on water surface. Powdered bran and sawdust float on the surface. Soak in water. Dung

will float and can be easily detected by its foul smell.

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2.9 The Main Reason for Using Branded Spices

Quality remains same and Ease of carrying

Special Taste in Crushed Spices

Less Wastage and Quality Remains OK

Dust free and so Its Healthy

Saves Time & Healthy

Hassle Free & Time Saving

Easy to Use

Facilitate Fast Cooking

Hygienic

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3.1 Square Consumer Products Ltd

We, SQUARE CONSUMER PRODUCTS LTD. have started producing and marketing intrinsic quality of powdered spices (Like chilli, turmeric,cumin and coriander), mixed spices and some ethnic snacks (Like Meat Curry Masala, Fish Curry Masala, Garam Masala, Haleem Mix, Chatpati Mix, Chanachur etc.) in terms of taste, flavor & texture. Beside these, our plan is manufacture and market various food & beverage items very shortly.

3.1.1 Mission Statement

We want to be the world class food products manufacturer in Bangladesh by ensuring intrinsic quality products and customer service with state of the art technology and motivated employees.

3.1.2 Vision Statements

To continue to provide the very best of what the consumer wants

To explore new segments of market and to cater to it

To identify what the consumer needs and providing it to them

To continue to assure intrinsic quality of hygienic food products with authentic taste

To enhance customers' standard of food habit

To expand distribution network to make the products available at customers' doorsteps

To enhance the strength and skill of the organization that will contribute to company's increasing growth both in domestic and global markets

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3.2 Functions of Different Departments

3.2.1 Manufacturing Unit

SQUARE CONSUMER PRODUCTS LTD.’s manufacturing Unit is located at Pabna, the northern part of Bangladesh, which is prominent for agricultural products with a view to source specific variety of raw materials. Our manufacturing unit is equipped with modern machinery. Our technical capabilities in processing, post-harvest handling, maintaining Good Manufacturing Practice (GMP) and modern grinding technology have given us decisive edge in the industry. Sourcing of high-quality raw materials is conducted mainly from different parts of Bangladesh for ensuring the right variety with highest quality.

The raw materials are preserved in a well-organized storage facility with ensures proper ventilation. SQUARE CONSUMER PRODUCTS LTD. are in the process of achieving ISO-9001:2000 and HACCP certification to follow strict quality policies as per CODEX.

3.2.2 Distribution

We are maintaining a strong distribution network in the country. At present a total no. of 232 (Two Hundred Thirty Two) highly experienced Distributors are engaged to market our products throughout the country.

3.2.3 Export Market

SQUARE CONSUMER PRODUCTS LTD. widened its horizon by exporting and marketing its products abroad within one year from the date of its inception. SQUARE CONSUMER PRODUCTS LTD. is now strengthening its export operations on its way to becoming a high-performance global competitor by supplying quality food products at competitive price. Its products comply with international phyto-sanitaion requirements. Starting its first export to South Korea in 2002, the company is currently exporting to several countries to Europe, Far East, Middle East and countries like USA, Canada, Australia and Japan.

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3.2.4 Countries, where we are exportingSquare Consumer Products Limited is strengthening its export operations to become a high performing global player by supplying quality food products at reasonable price. Its products comply with international phyto-sanitary requirements. Starting its first export to South Korea in 2002, the company is currently exporting the products with international standards in more than 22 countries around the world, which includes Europe Germany, Spain, Italy, Cyprus, North America, Africa, South Korea, Japan, Bhutan, Australia, Middle East and East Asia.

Technical capabilities in processing, post-harvest handling, maintaining Good Manufacturing Practice (GMP) and modern grinding technology have given Square Consumer Products Limited a strong competitive edge in the industry.

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3.3 Products profile: Basic Spice Range

In 2001, Square Consumer Products Limited introduced “RADHUNI POWDERED SPICE” with a vision to provide quality “ready-to-cook” food ingredients for the homemakers. Within a very short span of time, RADHUNI POWDERED SPICE drew attention of modern homemakers those who had a strong demand for quality, convenience and timesaving cooking. Dedication to purity, consistent quality, and authentic taste has given “RADHUNI” unique position in the market. Within a year, Radhuni Spice achieved the crown of brand leader.

3.3.1 Chili:

Radhuni powdered Chilli is vivid in color, precious in flavor. Best variety of red chilli provides more hotness.

Price list of Radhuni Chili Powder

S.L Product NamePack Size

Current CurrentT.P. M.R.P

1 Radhuni Chilli Powder 15gm 5.18 6.002 Radhuni Chilli Powder 50gm 15.80 18.003 Radhuni Chilli Powder 100gm 31.00 35.004 Radhuni Chilli Powder 200gm 59.50 66.005 Radhuni Chilli Powder 500gm 136.00 150.006 Radhuni Chilli Powder 1000gm 263.00 285.00

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3.3.2 Turmeric:

Apart from having excellent antiseptic and antibacterial properties, it has a brilliant golden yellow color.

Price list of Radhuni Turmeric Powder

S.L Product Name Pack SizeCurrent Current

T.P. M.R.P

1 Radhuni Turmeric Powder 15gm 4.25 5.00






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3.3.3 Coriander:

Providing a fragrant flavor Radhuni Powdered Coriander is high in food value.

Price list of Radhuni Coriander Powder


T.P. M.R.P

1 Radhuni Coriander Powder 15gm 2.40 3.00






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3.3.4 Cumin:

Provide the fresh aroma.

Price list of Radhuni Cumin Powder


T.P. M.R.P

1 Radhuni Cumin Powder 15gm 13.25 15.00






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3.4 SWOT Analysis of Radhuni Basic Spices

Strengths: Weakness:

Coming from the house of “ SQUARE”

SQUARE has the reputation in producing hygienic and superior quality products.

RADHUNI has established itself as a household name

Strong brand presence in the mind of the consumers

Some consumers perceive our products to be of high price

Retailers are not happy with the benefits that we offer

Price gap with the open market is very noticeable.

Opportunities: Threats:

Rise in middle class population

Consumers have more disposable income

Consumers are saying YES to good life styles.

People are more brand conscious

Consumers are now becoming conscious about their well being.

No entry barrier

The consumers are heavily influenced by Indian Culture, if a reputed Indian company partners with a local company, the consumers will shift to the Indian Branded products

Political Instability

Natural disasters

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3.5 Market Share Analysis

CompetitorMarket

share (%)Strengths Weaknesses

Radhuni 64%SQUARE has the reputation in

producing hygienic and superior quality products.

Some consumers perceive our products to be of high price

Pran 15 %Established itself as household brand.

Strong distribution network. More than 250 products. Separate sales force

Considered as cheap products, Made headlines for adulteration

Tiger 7%Popular in the Sylhet Region

Strong distribution in Sylhet

Lack of national availability, Consumer cannot recall the brand, Established itself as a

regional brand, No presence in any communication

RANI 4%Coming from the house of Partex,

which is popular in the Particle Board & Condensed Milk category.

Customers lack awareness and lack of availability

ACI Pure 3%ACI Pure Atta, Moida and Suzi is a household name. The brand value of ACI is positive among the consumers

Limited presence in the media, lack of awareness in the mind of

consumers

Others 6% -- --

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3.6 Sales Analysis of Radhuni

3.6.1 Chili:

Chart: Sales of Radhuni Chili (2009 – 2013)

3.6.2 Turmeric:

Chart: Sales of Radhuni Turmeric (2009 – 2013)

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3.6.3 Coriander:

Chart: Sales of Radhuni Coriander (2009 – 2013)

3.6.4 Cumin:

Chart: Sales of Radhuni Cumin (2009 – 2013)

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4.0 Consumer Perception: Concrete Findings

4.1 Gender of the respondents

As branded spice consumer is both the male and female, so we decided to conduct our survey on

both male and female consumers. There for we need to identify the frequency of male and

female of our survey. From our survey we find the following result.

Frequency Percent

Valid Percent Cumulative Percent

Valid

Male 156 78 78 78

Female 44 22 22 100

Total 200 100 100

Table 1: Gender of the respondents

From the table we find that among 200 respondents, 78% of were male and the rest 22% were

female. If we graphically represent the information, we for the following chart.

Chart 1: Gender of the respondents

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4.2 Age of the respondents

As we have surveyed 200 people for our research findings. We divide the age limit of our

respondents into four groups. In this regard age is important because whenever it is the matter of

judgment ethics, age is important factor. So it is important for us to conduct the survey in certain

age limit. The following table shows the frequency of our survey findings regarding age of the

respondents.

Frequency Percent Valid Percent Cumulative Percent

Valid 20-29 30 15 15 15

30-39 110 55 55 70

40-49 40 20 20 90

Above 50 20 10 10 100

Total 200 100 100

Table 2: Age of the respondents

15% respondents belong to age group 20 to 29; 55% respondents belong to age group 30 to 39;

20% respondents belong to age group 40 to 49; rest 10% respondents are above 50 age. If we

graphically represent the above table it will looks like the following chart.

Chart 2: Age of the respondents

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4.3 Occupation of the respondents

Occupation is a very important factor in our survey because some classes of people think about

packet spice. Obviously they are educated and have judgmental quality. I surveyed on following

sector. Note that others occupation refers to student, educated homemaker and old people.


Valid

Service 104 52 52 52

Business 40 20 20 72

Others 56 28 28 100

Total 200 100 100

Table 3: Occupation of the respondents

The following chart shows the graphical picture of the above table. We see that 52% respondents

were various services, 20% respondents from business sector. Rest 28% respondents came from

others sector.

Chart 3: Occupation of the respondents

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4.4 Income level of the respondents

Income level of the respondents is important to purchase the banded spice. As our target

customer is high profile people so income level is an important factor. We get the following

result from our 200 randomly selected respondents.


Valid

10000 - 19000 20 10 10 10

20000 - 29000 44 22 22 32

30000 - 39000 96 48 48 80

Above 40000 40 20 20 100

Total 200 100 100

Table 4: Income level of the respondents

We see that out of 200 respondents, 48% respondents belongs to monthly income level of Tk.

30000- Tk. 39000, 22%respondents belongs to Tk. 20000- Tk. 29000. Almost 20% respondents

belong to above Tk. 40000 income level per month. So we see that, our target customer is mostly

high income group who can easily effort branded spice. As branded spice is comparatively costly

than the open spices. The below graph will make the result more clear.

Chart 4: Income level of the respondents

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4.5 Type of Spice Consumed

To make the report fruitful l and effective we needed to know what type of spices is used by our

target customer. Because customer mainly used branded spices or open spices. Some people still

tend to use spices managed by their own. Among the 200 respondent, our observation is as

follows.


Valid Branded Spice 130 65 65 65

Open Spice 44 22 22 87

Other 26 13 13 100

Total 200 100 100

Table 5: Type of spice consumed

We found that, maximum 65% respondent use branded spice and 22% respondent use open

spices. 13% people still manage spices by their own. They basically collect the raw spices and

make the powder through local mill. They believe only in this process the can get the original

taste, flavor of spices. Graphical representation of the data is as follows.

Chart 5: Type of spice consumed

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4.6 Preferred Brand for respondents

We needed to identify which brand our respondent mostly consumed. We asked this question to

identify the market share of our Radhuni brand. In our question we named four top brand and

other options indicates brands such as Tiger, ACI, Rupchada, Fresh etc.


Valid Radhuni 132 66 66 66

PRAN 38 19 19 85

BD 14 7 7 92

Arku 6 3 3 95

Others 10 5 5 100

Total 200 100 100

Table 6: Preferred brand of the respondents

We found that 132 respondents out of 200 are use Radhuni branded spice.38 respondents is use

PRAN spice. 18 respondents say that they use BD, 6 respondents say use Arku, 10 respondents

use others spice.

Chart 6: Preferred brand of the respondents

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4.7 Which Matter Influences You Most When Purchasing Packet Spices?

As the spice is a sensitive product for

the cooking of daily food, people do

not take the risk about quality and so

they give concentration on the

previous experience of using specific

brand.

Chart 7: Influencing factor to purchase basic spice

4.8 Which Issue You Give Most Importance For Defining Quality Spices?

For the Product category basic spice,

the taste, color & aroma all are

important simultaneously. Therefore,

every part has equal role for cooking

perfect food.

Chart 8: Important factor to define quality spice

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4.9 Does Brand name is important to the respondents

We needed to know how important the brand name is. What they feel regarding the brand name

against the question we get the following result from our 200 respondent.

Frequency PercentValid

PercentCumulative Percent

Valid

Strongly Agree 28 14 14 14

Agree 104 52 52 66

Neutral 14 7 7 73

Disagree 38 19 19 92

Strongly Disagree 16 8 8 100

Total 200 100 100

Table 7: Brand name is important for respondents

We found that 52% respondent think that brand name is important to them. 19% respondent

thinks that brand name is not important for them, 14% respondent is strongly agreed about brand

name. 8% respondent is strongly disagree that brand name is not important at all.

Chart 9: Brand name is important for respondents

4.10 Availability of the products is important for respondents

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Customers want the product available within their reach availability of the Product is important

to them. We asked this question to our respondent and get the following response.


Percent

Cumulative

Percent

Valid


Agree 44 22 22 100

Total 200 100 100

Table 8: Product availability is important for respondents

78% respondent thinks that the products should be available within their reach. The need the

demanded products right after they feel the need of the products where ever the stay. Whereas

only 22% respondent thinks they would give extra effort to get their desire product if that is not

that available surround them. Because they will not accept any alternative of that products.

Chart 10: Product availability is important for respondents

4.11 Emphasis on quality of branded spice

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We needed to identify the consumer perception of the branded spice quality. Usually people

demand the quality products for their daily consumption. Response from our 200 respondent is

as follows.


PercentCumulative Percent

Valid


Agree 18 9 9 98

Disagree 4 2 2 100

Total 200 100 100

Table 9: Emphasize on quality of branded spice

Among the respondent, 89% is not agreed to compromise with the quality of the branded spice.

They need the quality products at any cost. They strongly agreed that quality issue is most

important factor where 9% only agreed with them. Rest 2% disagrees with this opinion. They

think branded spice usually quality products. So they really don’t think about quality issue

regarding branded spice.

Chart 11: Emphasize on quality of branded spice

4.12 Branded spice is costly compare than the quality

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What is the perception regarding the price of branded spice what they think about cost of

branded spice. Does the price is higher compare to quality. We asked the question and get the

following response.


Percent

Cumulative

Percent

Valid


Agree 40 20 20 80

Disagree 40 20 20 100

Total 200 100 100

Table 10: Branded spice is costly compare than the quality

We found that 60% respondent strongly agreed that price of branded spice is higher is compare

to its quality. 20% respondents simply agree with this. Rest 20% disagreed with this statement.

Chart 12: Branded spice is costly compare than the quality

4.13 Branded spice is hassle free & time saving

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Does branded spice hassle free to use and time saving? We ask this question to our respondent

and get the following response from the respondent.


Percent

Cumulative

Percent

Valid


Agree 30 15 15 93

Neutral 6 3 3 96

Disagree 8 4 4 100

Total 200 100 100

Table 11: Branded spice is hassle free & time saving

78% respondent strongly agreed that using braded spice is time saving and hassle free. Branded

spice is easy to use. 15% respondent agreed that branded spice is time saving. Only 4% disagreed

with this.

Chart 13: Branded spice is hassle free & time saving

4.14 Hygiene factor is important for respondents

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How much the hygiene factor is important to the consumer? What the

consumer really think regarding the hygiene on branded spice. We

needed to know the perception regarding the hygiene factor of branded

spice.


Percent

Cumulative

Percent

Valid


Agree 24 12 12 100

Total 200 100 100

Table 12: Hygiene factor is important for respondents

88% strongly agreed that hygiene is very much important to them. They prioritize the health

issue on consumer products. In addition, they are not agreed to compromise with hygiene issue.

Chart 14: Hygiene factor is important for respondents

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4.15 I think smell & test remain ok in branded spice

All brands usually claims that smell and taste remain same in branded packed spice. However,

what the customer’s opinion regarding this issue? Does smell and taste really remain ok in

branded spice? We get the following response from the respondent.


Percent

Cumulative

Percent

Valid


Agree 126 63 63 75

Disagree 36 18 18 93

Strongly

Disagree14 7 7 100

Total 200 100 100

Table 13: Smell & test remain ok in branded spice

12% respondent strongly agrees that test and smell agreed remain same in branded spice. While

63% respondent agreed with this. 18% respondents do not think that, taste and smell remain

same in branded spice. They think some sort of chemical is mixed with the packed spice which

decreases the quality, taste and original smell.

Chart 15: Smell & test remain ok in branded spice

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5.0 Marketing Strategy to Overcome Problem

5.1 Target Customer Profile

Positioning Statement: Assurance of purity

Target Market of Spice:

Geographic Location: Urban, sub-urban

Demographic:

Age: 25-40

Gender: Female

Education:

HSC/SSC: 34%

Graduate: 33%

Postgraduate/Vocational: 17%

Degree/Diploma: 14%

Income Level:

Tk. 20,000 and above: 48%

Tk. 10,000-20,000: 47%

Tk. 10,000 and less: 5%

Household Member:

3-5: 66%

6-8: 20%

1-2: 12%

More than 8: 2%

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Social Stratification: Middle to Upper class

Buying Habit : Frequent

Psychographics: Look for Purity with authentic taste

Wants care & tenderness for the family

Sensible and conscious

Seek convenience in cooking

5.2 Consumer Trend & Outlook

Food product development needs to be based on consumers' needs and wants to be successful. Like mass-individualization, globalization and an altered interpretation of the food quality concept by consumers. Radhuni Powdered Spice has become relevant in this respect.

Female lifestyle scenario changed then one decade before. At that time, maximum female was homemaker, stay all day at house, gossiping with neighbor, watch TV, supervise maidservant, pass time to collect whole spices from market and prepare food dishes. These days unprecedented numbers of women are invading in different professions, they are well educated, concern about quality and nutritional value of product. Women also show greater concern about issues that directly affect the family and home life. They left at morning and return home at evening yet they want to take proper care of their family. Maidservants are not available like before so every work accomplished by their own. Therefore, Consumers’ these days are more dependent on powdered ready spice. Since consumer have many options for branded powdered spice they want the one which assures the purity and deliver authentic taste and color.

Key consumer insights to Powder Spices

Easy & fast cooking ensuring delicious aroma & flavor while cooking & eating.

Want to save time in cooking to give more time for kids, family & entertainment.

Want to cook with powder spice and expect traditional authentic taste and color.

More concern about the bout the food quality and well-being of the family members and intend to take quality product.

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5.3 Benefits from Radhuni Powder Spices

Selected from best verities of quality raw materials from grower level

Strictly maintain international quality standard.

Assurance of quality, taste, and flavor of home –ground spice.

Ensures delicious aroma & flavor while cooking & eating of different curries.

Product Strengths:

Original and authentic taste & fresh aroma.

Finely pulverized and not musty.

100% free from adulteration.

Full release of flavor during cooking.

Grinding procedure retain essential volatile oil.

Grinded from selected crops.

Produced from modern spice processing plant.

Strong brand image.

5.4 Radhuni Strategy

5.4.1 Product Strategy

Radhuni Powdered Spice ensures purity. In the year 2012 we want to maintain this consistency of quality and deliver best quality spice to the consumer to satisfy their need and want. Besides basic spice is a product that have hardly any scope to add extra value to the product. Therefore we will add value through packaging by launching a different SKU in convenient Jar. Also we will add new variant of basic spice in the basic spice product range and that is ''Pasted spice''.

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5.4.2 Pricing strategy

In the year 2013 our objective is to maintain competitive and stable price. We will not give competitors any scope to gain big price advantage. We will also maintain the price at an acceptable range compare to open spice. Because consumers very easily compare the price with the open spice and tend to switch from branded spice to open spice. We will maintain the competitive price by taking following steps.

Effective inventory management: To achieve our objective we will manage our inventory effectively. We will collect maximum RM during the harvesting season when the prices are low. So when the prices of RM high we can use up our low priced RM to gain advantage over competitors. Besides we will constantly monitor the market scenario of RM throughout the year and maintain inventory of RM as accordingly.

5.4.3 Distribution Strategy

We will follow the existing distribution strategy and network. Currently we are using separate distribution channels for retailers, different institution, and bulk buyers like super shop, hospital, canteen etc.

To reach the above organization we have the following distribution system-

To reach all over the country we have the following distribution system-

To meet the objective of 2013 we need to take following steps regarding the distribution strategy.

Improve the outlet reach especially in the north and south region.

Explore the new organization for sale including outside Dhaka like number of large hotel In Chittagong, Sylhet, Cox's Bazaar and other Divisional cities.

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5.4.4 Promotional Strategy

Since there are few differentiating factors in the existing brands, we have to use combination of rational & emotional strategy to communicate with the consumers. So far, we have taken the position of quality product and communicated with the consumers in the same line. Radhuni already won the credibility of high quality product from the consumers. Up to 2008, we have communicated the authentic taste of Radhuni powdered spice and its pure quality. In 2008 on our communication campaign we focused on creating awareness among consumers about not to compromise with the quality of daily food of the family as there is family health issue is concern. In 2009 we have re-enforced & further strengthen our on going quality issue in spice consumption by launching endorsement campaign by Siddika Kabir in all media including ATL and BTL. For 2010 to 2012 we concentrated our promotional campaign on the uncompromising stand regarding finding the best quality food ingredients for family. In the year 2012 we will concentrate on “Radhuni gives assurance of purity that delivers desired taste and color”.

Promotional objective:

A safe & quality assured food ingredient that will give you the feel of traditional taste with living a healthy life

Motivate consumers relay only on Radhuni because Radhuni gives assurance of purity that delivers desired taste and color.

Motivate target consumers for choosing the pure & quality spice for cooking through rational and emotional appeal.

Create aspiration for using Radhuni Branded Spice in food preparation and attract new consumer.

Create strong emotional bonding with Radhuni Branded powder spice and make it an obvious choice for consumer because Radhuni ensure purity and deliver authentic taste.

Estimated Promotional Budget of 2013:

Estimated budget amount (Tk.)

Percentage against target of 2013

88,013,00.004 3.94%

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Followings are the strategic activity to achieve our objective.

About 40% of the total promotional budget will be spent in electronic media to get maximum reach. Insertion frequency will be high during launching new campaign and festival.

Five new TVC will be made on powdered spice in the year 2013. Two TVC will be on Turmeric and Chilli each and two on whole range. One TVC on CP.

8% of the total budget will be spent on print media to support launch of new campaign.

300 new shop signs and new bazaar branding at Chittagong and Sylhet will be done in 2013.

Shera Radhuni competition and celebration of Naridibosh event will be held in 2013 which will promote the brand among TG.

Consumer Promotion (CP) offer will be given to give consumer extra value for their expenditure. 10% of the total promotional budget will be spent to run CP program.

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5.4.5 Action Plan

Strategy Key Media Type Tactical Plan

Strategic Use: ATL & BTL Media

TV Media

TVC, Pop-up, L-shapeStrategic BrandingStrategic Time slotOwn Program/Reality Show

Radio Media

RDCStrategic BrandingStrategic Time slotCommunity Radio

Print Media

SupplementaryLocal NewspaperConsumer Interaction by MagazineCreative Ad in Magazine

Digital Media

Popular Web Portal AdPresence in the Social MediaE-mail MarketingSMS MarketingOnline Competition

Outdoor Media

Billboard Wall Paint & Wall Hang LCD-LED AdvertisementBazaar Branding, Shop sign Events, ActivationsPOS

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Electronic Media

We will prepare two new TVC for Turmeric and Chilli separately and promote these two products as category leader. In between we will make one TVC on the whole Basic Spice range to promote the whole range. These TVC will communicate the massage that Radhuni ensures purity which will deliver you desired taste and color from generation to generation. Another new TVC will be made during August and will go on air from September 2013. This new TVC will be on the hardship and dedication from Square member to deliver the finest quality spice to the consumers. One TVC will be made for promoting CP program.

Press & Magazine

New press ad design will be developed for supporting new campaign. New press ad design will also be developed for CP program. Major news papers and magazines will be used for press and magazine campaign.

POS/POP

Merchandising is silent sales man- therefore we want to emphasize on proper merchandising of our products at outlets. Besides POS, material will be developed in support of new TVC campaigns and CP program.

Out Door

In 2013, we will install 500 new shop boards. Besides, we will also go for bazaar branding in Chittagong and Sylhet. Few new billboards will be taken in 2013 at Chittagong city; we will also renew the existing billboards, Passenger sheds, Light boxes, Gondolas, Transit ad and Shop Signs.

Events & Activation

In the year 2013 we will execute following event and activation.

Nari Dibosh:

8th March of every year has been celebrated as Nari Dibosh. We will celebrate this day to congratulate the successful women for the year 2012. The objective to celebrate this day is to affiliate Radhuni with the betterment of women.

Shera Radhuni:

To promote traditional cooking of Bangladesh we have been arranging best cook competition ‘Shera Radhuni’ all over Bangladesh.

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Radhuni Cook Show:

This year Square Consumer Products Ltd will make an agreement with Ms. Nahid Osman (renowned cook in Bangladesh) as Brand Ambassador and will prepare cook show round the year which will telecast on Maasranga Television

CP program

Consumer Promotion (CP) program will run for two months from July’13 to August’13. This period is chosen targeting the Ramadan period. The objective is to give consumer extra benefit during Ramadan when maximum consumption of powdered spice is occurred.

Besides this Consumer Promotion (CP) will conducts at different Superstore in Dhaka City to fulfill the same purpose.

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6.0 Recommendations

There are good numbers of brands coming with the same proposition of good quality, so SCPL is

heading towards an immense competition in near future. In the backdrop of the above findings

the following recommendations can be made:

Majority of the consumer believe that the price of Radhuni is high. Because of its quality.

SCPL should consider value based pricing instead of competitive and cost based pricing.

To increase the efficiency of the dealers, SCPL can offer special trade promotions such as

incentive, bonus, foreign tours etc, for the best performers.

The promotional effort of SCPL is satisfactory and it should be continued. At the same

time, they can adopt creative advertising to differentiate their products from others.

To hold and create new customers of Radhuni Basic Spice, SCPL should consider the

following:

Conducting frequent customer survey

Developing new user group

Launching new value adding products

Identifying new overseas market for further increase in export

SCPL need to increase their promotional expenses and it should execute the action plan

properly.

SCPL need to increase the media presence to create new customer base and remain in

customer mind

SCPL is holding the maximum market share with Radhuni Basic Spice. It maintains its

leadership through well-planned action program, motivated and trained personnel and by

projecting a favorable company image among the customers. Under intensifying competition in

the market and changing attitudes towards the branded spice powder, SCPL should consider the

above recommendations.

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7. 0 Conclusion

In 2001, Square Consumer Products Limited introduced Radhuni Basic Spice with a vision to

provide quality “ready-to-cook” food ingredients for the housewives. Within a very short span of

time, Radhuni Basic Spice drew attention of modern housewives those who had a latent demand

for convenience and time-saving cooking. Dedication to quality has given Radhuni Basic Spice

unique position in the market.

Radhuni Basic Spice considered as the pioneer in Branded spices. By ensuring taste, quality,

attractive packaging & good coverage throughout the country, Radhuni has been getting a

remarkable response from market. A year after its operation Radhuni Spice achieved the crown

of the leader. Products ranging from Basic spices, mixed spices, Cereal & Pulses to Edible oil are

currently available under the name of Radhuni.

Radhuni Basic Spice has been dominating branded spice market since 2003. Currently in

branded powdered spice category, Radhuni is the brand leader. Radhuni achieved the crown of

brand leader by offering superior quality of powdered spice and authentic taste. So it can be said

that Radhuni has created the branded powder spice market. As consumers are shifting towards

branded powdered spice, the market size of branded powder spice is increasing very fast.

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Bibliography Kotler,Philip. Armstrong, Gary.2008. principles of Marketing, Pearson Prentice Hall,

United State of America

Mallhotra, Naresh.K. 2003. Marketing Research, Prentice Hall International, United State

of America

www.theepicentre.com Crosby, M. R. (2008). "Senna," Microsoft® Encarta® Online Encyclopedia 2008.

Retrieved from http://encarta.msn.com/encyclopedia_761561243/Senna.html

Retrieved from World Wide Web: http://www.celtnet.org.uk/recipes/roman.html?PHPSESSID=26caf3bc35486152e548b7b2dc0eb0bd)

"Spices," Microsoft® Encarta® Online Encyclopedia 2008. Retrieved from World Wide Web: http://encarta.msn.com/encnet/refpages/RefArticle.aspx?refid=761564609 /spices.html on 25.05.2008

Retrieved from World Wide Web : http://www.foodproductdesign.com/articles/herbs-and-spices.html

www.squarefoods.com.bd (official website of SCPL) http://www.google.com Bangladesh Bureau of Statistics

Appendix

A set of blank questionnaire on which the survey was conducted.

http://www.google.com/

http://encarta.msn.com/encyclopedia_761561243/Senna.html