Mkt Term Paper- Final

8/17/2019 Mkt Term Paper- Final

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MARKETING TERM PAPER ON ITALIANO

Prepared for:

Mr. Khaled Mahmud

Assistant Professor

Course Instructor: Marketing Theory and Practices

Prepared by:

roup !"

Tan#ir $ossain% &' (&)*+

,.m. Aminur -ahim% !) (&)+

Parag Pal% !/ (&)+

Mohammad Mushfi0ur -ahman Khan% 1! (&)+

aif $asan% )1 (&/*+

Institute of 2usiness Administration

3ni#ersity of *haka

4o#ember 5"% 5!1&

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Table of Contents

6ecuti#e ummary...................................................................................................................#

Introduction................................................................................................................................1

-eason....................................................................................................................................1

Product *escription................................................................................................................1

Company Profile of Pran7-89 roup........................................................................................5

8inancial trength..................................................................................................................5

Target Market.............................................................................................................................)

Product Position ith -ationale.................................................................................................)

Pricing trategy Analysis...........................................................................................................&

*istribution trategy..................................................................................................................'

IMC trategy..............................................................................................................................;

Product 9ife Cycle.................................................................................................................;

Marketing Communication chedule...........................................................................................?

trategy > -ationale..............................................................................................................?

Competitors..............................................................................................................................11

harif Melamine...................................................................................................................11

*iamond Melamine..............................................................................................................11

2angladesh Melamine..........................................................................................................11

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Champion Marketing trategy.................................................................................................15

ur#ey 8indings...................................................................................................................15

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6ecuti#e ummary

• Italiano Melamine is a brand of -89 Plastics% hich is a sister concern of the Pran7

-89 group• Italiano is the first to use full color melamine instead of the cream7hite color of its

competitors. Italiano differs in terms of health and hygiene as 1!!B food grade

poder used to make the products

• Target Market: Age group75&7&! Family Role7*ecision maker Social Class7Middle

Class% 3pper Middle Class Touch Poins7uper7shops% 4e Market% chools

• The market share for Italiano is around )&B7/!B. It is on e#en ground ith harif

Melamine% ho is the market leader ith /!B

•The product is positioned as a somehat delu6e brand in the melamine products

category. The rationale being that this melamine brand gi#es you a more elegant

design and ceramic look than that of its main competitor (harif+ at the same price

• The pricing strategy of -89 regarding Italiano can be described as competiti#e

pricing. Italiano tries to match the prices of its products ith the one of its primary

competitor% harif Melamine

• The main distribution dri#ers from the depots are the ales -epresentati#es. The -s

create the demand for the product and maintain supply. All transport is handled

internally

• The IMC strategy for Italiano is centered holly around its tag line% Pure Art. The

message is that Italiano as a melamine brand is so sophisticated that it can be

described as an art form

• Italiano has launched in 5!15 and has gained significant ground on the market leader.

o from that can infer that it is in its groth stage

• Any and all communications regarding Italiano is focused on portraying the brand as

melamine in art form. This can be considered as the primary ob=ecti#e for all

communication

• The company is focusing more on marketing in recent times

• Tools used in for ad#ertisement are7TD% 2illboards% 4espaper% 8acebook Page

• The rationale is that melamine sculptures ill make the Italiano brand synonymous

ith art.

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• The direct and only competitor of Italiano ould ha#e to be harif Melamine. harif

MelamineEs push strategy has been orking. Their market presence is significant and

name recognition is high due to their longe#ity

• Srenghs!trong% uni0ue #alue proposition% significant market share "ea#nesses!

9oer brand aareness compared to the main competitor% ocial media presence is

almost non7e6istent% 4o eb presence Opporuniies!Melamine market is large%

Ceramic market e6ists that can be taken o#er% People are more open to the idea of

using melamine than before Threas!harif are using an effecti#e push strategy using

the channel members

• To broaden ItalianoEs horiFon% the company can book an ad#ertising spotG sponsoring

deal ith the $indi72angla Channels (Hee 2angla% tar ,olsha+. An e6ample of such

e6posure can be that a contestant ins an Italiano gift hamper for hisGher efforts in a

reality TD sho

• To target the upper class of the society% Italiano needs to branch out further. The

hygienic ad#antage of Italiano can be highlighted in the 9ifestyle section of Prothom

Alo or *aily tar.

• A simple yet effecti#e campaign to launch on 8acebook could be to share photos of

created art using the Italiano dishes. The e6amples are already there on their on page

in the form of a bird and floers. 9et the customers create their on art by arranging

Italiano melamine

• Customer promotional acti#ities can be accomplished through sponsoring school

e#ents or ha#ing some kind of competition during tiffin hours

• 8or trade promotions% dedicated shel#es and special focus on supermarkets% like

Meena 2aFaar% 3nimart can be an option. Alternati#ely% -89 2est 2uy can be better

ad#ertised to meet the same goal.

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Introduction

The product chosen for this report is the Italiano Melamine. It is a brand of -89 Plastics%

hich is a sister concern of the Pran7-89 group. The Pran7-89 group is one of the longest

ser#ing local company in 2angladesh% hile the Italiano is its first #enture in the Melamine

Products sector.

-eason

Italiano Melamine Crockeries is trying to bring a re#olution in 2angladeshi Crockeries

Market. ince its launch in 5!15% through e6ponential groth% Italiano is no in a neck and

neck position ith the market leader harif Melamine. 2efore its launch% there as almost a

monopoly in the melamine market of 2angladesh. harif Melamine as taking the ad#antage

of lack of competition in the market. They kept on producing the same traditional products

ithout any kind of #ariation or product de#elopment. Italiano ha#e actually redefined the

idea of melamine products in the consumerEs mindset ith its sophisticated design.

Italiano is also relati#ely ne in the marketplace. It as launched in 5!15 and has been in the

market for about ) years.


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Company Profile of Pran7-89 roup

Pran7-89 roup is the 2angladeshi food7products corporation based in *haka% 2angladesh.%

founded in 1?"1. It is the largest food and nutrition company of 2angladesh% It is the largest

e6porter of processed agro products ith the compliance of $A9A9 > $ACCP to more than

1!! countries. Pran started in 1?"1 as a processors of fruits and #egetables in 2angladesh.

Pran e6ports to more than 1!! countries. -89 di#ersified its operation into the PDC category

in 1??' and the plastic sector in 5!1&.

Mission$ Impro#ing 9i#elihood

%ision$ Po#erty > $unger are Curses

Aim$ To enerate mployment and arn *ignity > elf -espect for #egetables in 2angladesh• -89 is the market leader in cast iron% PDC > plastic items

• Pran (AMC9+ is listed in the * as an AE category company

• P of Pran (AMC9+ for the last year as '.?)

• PG of Pran (AMC9+ for the least year as )1.??

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Target Market

@e can segregate the market for Italiano using the folloing #ariables7

• Area: 3rban% uburban

• Age group: 5&7&!

• 8amily -ole: *ecision maker

• ocial Class: Middle Class% 3pper Middle Class

• Touch Points: uper7shops% 4e Market% chools

Italiano is targeted mainly at the market hich is already buying melamine products.

According to the representati#e at Pran7-89% the market siFe is &!7'! crore. ItalianoEs highest

sales come from the suburban area.

Product Position ith -ationale

The market share for Italiano is around )&B7/!B. It is on e#en ground ith harif

Melamine% ho is the market leader ith /!B. The rest of the market belongs to #arious

other brands% such as *iamond Melamine and 2angladesh Melamine. These brands do not

offer a direct competition to Italiano. It is to be noted that this data comes from our inter#ie

ith the representati#e of Italiano. *uring the inter#ie% they concede that harif is the

market leader but not by much and 0uote an e#en market share for both of them. Their

reasoning as that sometimes harif comes out on top in monthly sales and sometimes they

do% so they ha#e no definite number that they can put forard.

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Italiano; 40%

Sharif; 40%

Others (Diamond, Bangladesh etc.); 20%

Maret Share

Italiano Sharif

Others (Diamond, Bangladesh etc.)

8igure 1: Market hare of Italiano

The product is positioned as a somehat delu6e brand in the melamine products category.

The rationale being that this melamine brand gi#es you a more elegant design and ceramic

look than that of its main competitor (harif+ at the same price. 2ut compared to other brands

(*iamond% 2angladesh+ the price is higher% so it feels more #aluable. o the customers think

that they are getting a product due to it being more costly% along ith getting better #alue due

to it being more contemporary in designs and health #alue.

The rational positioning for the product is that Italiano pro#ides a sophisticated melamine

brand ith ne% e#er updating% contemporary designs at a competiti#e price.

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Pricing trategy Analysis

The pricing strategy of Pran7-89 regarding Italiano can be described as competiti#e pricing.

Italiano tries to match the prices of its products ith the one of its primary competitor% harif

Melamine.

The dealerEs profit margin is less compared to that of its lesser competitors% say for e6ample%

*iamond Melamine. o% neither harif nor Italiano can afford to go into a price ar. If they

increase their price to increase their percei#ed #alue% the dealers ill flock to the other. If they

decrease their price to start a price ar% the dealers ill =ust prefer the other brands as they

can get more margin from them. A comparison beteen Italiano and harif Melamine pricesis shon belo7

Ialiano Shari&

11 inch 0uare Plate 11& 15 inch tar *ish 15!

1!.& inch round plate 11! 11 inch -ound Plate 1!&

-ice poon )' -ice poon )"

In terms of pricing to across channel le#els% the margin goes from "B to 1"B. 8or e6ample% if

the dealer buys at Tk. 1!!% the retailers buys at Tk. 1!" and sells it to the customers at an

M-P of Tk. 11" or Tk. 15!% hich is set by Pran7-89.

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*istribution trategy

Italiano uses a simple distribution strategy to reach the consumers. -a materials used in

production are imported. The machinery and printing paper are also foreign in nature. The

production factories are located in Kaligan=% $abigan= and 4arsingdi. 8rom there large

transportation trucks are used to distribute the products to depots in #arious areas of the

country.

The depots act as money depositories as ell as product depositories. The main distribution

dri#ers from this stage are the ales -epresentati#es. The -s create the demand for the

product by maintaining communications ith the retailers and informing them of any trade or retail sales promotions. The -s also make sure supply is met. The retailers directly contact

the -s to order the product by 0uantity and the -s make sure the products are distributed

among the retailers accordingly.

It is to be noted that all the transportation is handled internally by Pran7-89 group. 4o

outsourcing is used for transport of the products or any other factors in#ol#ed. Also% 2est 2uy

outlets throughout 2angladesh also acts as personal retail houses for the company.

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!rod"ction #o"se

$%a& Materials$Machiner'

De(ots

$ )rans(ortation )r"cs

%etailers$Sales %e(resentati*es hel( &ith demand and s"((l'

+"stomers

8igure 5: *istribution 4etork of Italiano

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IMC trategy

The IMC strategy for Italiano is centered holly around its tag line% Pure Art. The message is

that Italiano as a melamine brand is so sophisticated that it can be described as an art form.

8igure ): Tagline of Italiano

Product 9ife Cycle

Italiano has launched in 5!15 and has gained significant ground on the market leader. o

from that can infer that it is in its groth stage. The company hopes to catch and perhaps

e#en surpass the market leader ithin the ne6t ) years.

Marketing Communication


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8igure /: 6pense Allocation of 8 5!1571)

8igure &: 6pense Allocation of 8 5!1)71/

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Ad#ertisement Time > chedule

@hile e do not ha#e concrete timings of the ad#ertising schedule% hen asked the

representati#es from the company said that they try to run ads during the e#enings hen the

heads of the family are home. Tools used in for ad#ertisement are7

• Tele#ision

• 2illboards

• 4espaper

• 8acebook Page

trategy > -ationale

ItalianoEs strategy is focused on to things7design and hygiene. The to #alue propositions

that Italiano brand are7

• The first color melamine of the country% has modern designs

• Is more hygienic% uses 1!!B food grade

8olloing this rationale% Italiano has used its melamine in #arious shapes to ad#ertise its

artistic beauty. The first instance can be found in its logo itself.

8igure ': Italiano 9ogo

The middle IE of the logo is using different colors to gi#e attention to the fact that this is a

color melamine. To con#ey its message about its design% Italiano uses its products to create

#arious pictures7like floers or birds. The rationale is that these melamine sculptures illmake the Italiano brand synonymous ith art.

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8igure ;: Italiano melamine used to create 8loers

@e ha#e tried to =udge their IMC strategy through a fe attributes

• Coherence$ The message is simple. Pure ArtE focuses solely on the beauty and

design aspect of Italiano. Italiano is not =ust a melamine% it is something that ele#ates

hate#er you are ser#ing in the product to higher form. #en the brand name itself%

ItalianoE tries to be artistic as e often e0uate Italy as a country of art and beauty.

• Consisency: The Pure Art tag is consistently used in all its packaging% its ad#ertising

through commercials and print media.

• E&&eci'eness$ The fact that Italiano has reached almost e0ui#alent market share ith

harif Melamine ould gi#e credence to the fact that their strategy is orking. They

ha#e also had great sales in the *haka International Trade 8air.

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Competitors

There are a fe players in the melamine market. The market leader is harif Melamine ith

Italiano as its closest competitor.


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2angladesh Melamine

2angladesh Melamine is the cheapest among the brands. It has moderate sales. 2ut brand

aareness seems loer.

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Champion Marketing trategy

2efore del#ing into creating a marketing strategy for Italiano% e need to identify hat the

brand lacks. To determine that% e made a simple @


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• Melamine market is large

• Ceramic market e6ists that can be taken o#er

• People are more open to the idea of using melamine than before

Threas

• harif are using an effecti#e push strategy using the channel members

Ad#ertising trategy

Tele#ision is still the go to medium for mass marketing and should be a focus for Italiano.

4o7a7days the popularity on Indian 2angla TD Channels such as Hee 2angla% tar ,olshaetc. ha#e reached an all7time high. The heads of the household are more inclined to atch an

ad#ertisement on these channels during prime time (?pm711pm+ here the dramas and reality

shos are usually broadcast. Pran is already using their financial position to ad#ertise in these

channels% and e#en sponsoring a fe programs. If they ant to broaden ItalianoEs horiFon%

then they can book am ad#ertising spotG sponsoring deal. An e6ample of such e6posure can

be that a contestant ins an Italiano gift hamper for hisGher efforts in a reality TD sho.

8or nespaper% Italiano can distribute catalogues or coupons through the hakers. This can

be a good ay to reach a large number of the urban population. If Italiano ants to target the

upper class of the society% it needs to branch out further. The hygienic ad#antage of Italiano

can be highlighted in the 9ifestyle section of Prothom Alo or *aily tar.

ocial Media Campaign

This is an area here Italiano needs the most impro#ement. The 8acebook page has a measly

5;; likes and the last post (at the time of riting+ is from eptember of last year. It is ob#ious

that the page had started ith ell intentions% but since then has become a tick7in7the7bo6

item for the marketing department. If Italiano ants to capture the social media users% they

need to be serious about their presence on 8acebook.

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8igure ": Italiano Melamine used to create a 2ird

A simple yet effecti#e campaign to launch on 8acebook could be to share photos of created

art using the Italiano dishes. The e6amples are already there on their on page in the form of

a bird and floers. 9et the customers create their on art by arranging Italiano melamine

crockeries and post them on 8acebook ith an accompanying hashtag. The best pictures can

be determined by popularity (no. of likes% comments% shares+ and the top 1! can be featured

in a nespaper adGbillboard. There can e#en be a priFe like a trip to Co6sE 2aFar for the

family of the inner.

Promotional Acti#ities

Customer promotional acti#ities can be accomplished through sponsoring school e#ents or

ha#ing some kind of competition during tiffin hours. They can start buyer reards programthey can gi#e free MugsGpoons for e#ery bulk purchase. Italiano can run a promotion here

they guarantee that their product ill not get discolored and if it does ithin a timeframe%

they can be returned. They can also partner ith a dishashing brand as a complimentary

product. 8or sales promotions% dedicated shel#es and special focus on supermarkets% like

Meena 2aFaar% 3nimart can be an option. Alternati#ely% -89 2est 2uy can be better

ad#ertised to meet the same goal. Italiano can also increase their presence in online grocery

stores such as Chaldal.com.

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Appendi6

ur#ey on Italiano: Consumer Aareness

This sur#ey is initiated ith a #ie to crafting a champion marketing strategy for Italiano% the

first e#er colored melamine brand in 2angladesh% from the Pran7-89 roup 7 one of the

biggest local conglomerates% to ser#e the purpose of the Term7Paper on Market Theory and

Practices course under M2A Program at Institute of 2usiness Administration% 3ni#ersity of

*haka. The responses ill solely be used on academic purposes only.

*isclaimer: 4either the Pran7-89 roup nor the Institute of 2usiness Administration%

3ni#ersity of *haka is associated ith this sur#ey.

1. *o you kno about Italiano7es% 4o

5. $o do you come to kno about it7TD% -adio% ocial Media% 2illboard% tore% 4GA

). $a#e you e#er seen its TDC7es% 4o

/. If yes% ho often ha#e you seen7Dery often% 8re0uently% eldom% 4e#er (sa only once+

&. *id you e#er #isit ItalianoEs 8acebook page7es% 4o

'. If yes% ho often did you #isit7Dery often% 8re0uently% eldom% 4e#er (sa only once+

;. $a#e you e#er used Italiano7es% 4o

". @hat do you think about ItalianoEs 0uality > design76cellent% Dery good% ood%

A#erage% 2ad% 4GA

?. @hat about ItalianoLs a#ailability in the market7A#ailable% A#erage% 4ot A#ailable

1!. @hat do you think of ItalianoLs pricing7$igh% Medium% 9o% 4GA

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11. $o much do you bank on the loyalty of Pran7-89 roup7Completely% Partially% 4ot at

all

15. @hat measures should be taken to reach you7TD% -adio% *esign% 9ack of Promotion

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Mkt Term Paper- Final