Free Essay

Radhuni

In: Business and Management

Submitted By bristybilashy
Words 3588
Pages 15
Table of Contents

1. Market Description a. Target Market 4 b. Company’s Position 5 c. Major Segmentations 6 d. Why Customers Buy Radhuni Powdered Spices 7

2. Product Review a. Product 8 b. Images of Products 9 c. Prices 11 d. Product Life Cycle 12 e. Implementation of Product 13 f. Brand Share 14

3. Review of Competition a. Major Competitors 15 b. 4 Ps of Competitors 18

4. Review of Distribution 20

5. Threats & Opportunities Analysis a. SWOT Analysis 21 b. Problems 22 c. Solutions 22

6. Objectives & Issues a. Company’s Mission Statement 23 b. Company’s Marketing Objectives 23

7. Conclusion 24

Target Market:
Initially for target the market we will go for women who are living in urban areas. In this case, we followed geographic segmentation and the demographic segmentation as well. They can be either housewives or service holders. The causes behind of targeting urban women are –
First- The price of the product, as the price of this product is a bit high which is only affordable by the urban people. Because we all know that the people of urban are relatively rich then the rural people.
Second- Use of quality product, in this case urban people are more quality conscious then the rural people.
Third- In urban areas generally people are busy with various activities. So they are very much unwilling to buy raw spice and get bored of doing a manual process. In this situation ready mix spice is like a magic for them. Fourth- The people of urban areas are not getting pure and quality powdered spice in the market. So, Radhuni Powdered spices are assuring the people of urban that they are giving them pure and qualified products. In this situation it will be a great way for the urban people of getting fresh and pure powdered spice without any harassment. Fifth - The service holder women are very busy with their jobs and other activities. They have limited time for cooking. So at this moment ready mix spice will be very much attractive and convenient for them. Sixth - Women can easily avoid their physical blending process by using this powdered spice. This will save their energy and time.

Company’s Position:
Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind. This is something about creating awareness about the product or position the brand “RADHUNI” by the desire of the target consumer. SQUARE is the name of quality, where consumers can get pure and quality products without any hesitation. “RADHUNI” is a brand of Square Consumer Products Ltd which is used for cooking. So the consumer might think about the taste and how conveniently it can be used.
Square Consumer Products Limited has accomplished a number of notes worthy feats since its journey began. These are listed below:
Year Introduced Brand
2001 • Square Consumer Products Limited introduced Radhuni and Ruchi in July, 2001 in the market.
• Products at the time of launching were Chili Powder, Turmeric Powder, Coriander Powder and Ruchi Chanachur (Regular).

2002 • Square Consumer Products Limited started exporting to South Korea.
2005 • The company obtained ISO 9001:2000 certifications for its Quality Management System.
• SME Award 2005 for Best Medium / Corporate Management.
2009 • Square Consumer Products Ltd introduced its third brand “Chashi” in July
2010 • The company obtained ISO 22000 certification for its food safety management systems requirement for organization in the food chain.

In this case the difference is clear for RADHUNI brand with the non brand and other brand powdered spice through the value what is providing.

Major Segmentations:
Segmentation means dividing the market into distinctive groups of buyers on the basis of needs characteristics or behaviors of consumers. Segmentation can be done in four ways like –
1. Geographic segmentation,
2. Demographic segmentation,
3. Psychographic segmentation
4. Behavioral approach.
As our chosen product is Radhuni Powdered Spice, our target market belongs to Geographic, Demographic and Psychographic.
1. Geographic segmentation
a. Density: In urban areas, maximum housewives and corporate women want to avoid the manual labor to powder the spices.
2. Demographic segmentation
a. Age: As especially housewives and corporate women want to use powdered spices, it can be assumed that women aged between 25 and 65+ want to use powdered spices.
b. Gender: As it is directly used for cooking purpose and generally the women of our country are involved in cooking.
3. Psychographic segmentation
a. Social Class: Particularly, middle class, upper middle class and upper class people uses powdered spices.

Why Customers Buy Radhuni Powdered Spices:
Radhuni Powdered Spices is such a product that adds a better lifestyle to people. It is a modern product which means it will increase the standard of our lives which means that it will increase the civilization in our lives as modernization brings civilization. Most homemakers in our country are women and as time is passing by homemakers are starting to get busy as they are also getting involved in jobs as well and so they do not have enough time to powder spices by themselves so to save time especially during the rush hour they use Radhuni Powdered Spices. Radhuni Powdered Spices are also very essential for inexperienced homemakers who cannot produce spice powder out of given ingredients. It is said to be cheap and so people buy this product to save money and also time as producing powder is a very time consuming job. It has become a common product and so people do not hesitate to buy it during shopping. It is very available as it can be found in mega shops and even near the local shops near your home. It is very easy to use, all you have to do is open the paper box and tear the packet to use. It has high advertisements which are why you often spot it during the advertisement period, while watching your favorite serial on television. The most important part of this product is that it has the best quality among all the powdered spices in our country which is the main reason for which we, the Bengalis buy, use and rely on this product.

Product:
Till now, Radhuni has been inaugurated diverse products. The list of those products has been given below:
• TURMERIC POWDER
• CHILLI POWDER
• GINGER POWDER
• BORHANI MASALA
• CORIANDER POWDER
• CUMIN POWDER
• MEAT CURRY MASALA
• CURRY POWDER
• FISH CURRY MASALA
• VEGETABLE MASALA
• KABAB MASALA
• BIRYANI MASALA

Images of Products:

CHILLI POWDER TURMERIC POWDER CORIANDER POWDER CUMIN POWDER GINGER POWDER MEAT CURRY MASALA

FISH CURRY MASALA CURRY POWDER

VEGETABLE MASALA KABAB MASALA

BIRYANI MASALA BORHANI MASALA
Prices:

NAME AVAILABLE QUANTITY PRICE
• TURMERIC POWDER 100g, 200g, 400g, 500g & 5000g TK. 27 for 100g; TK. 45 for 200g
• CORIANDER POWDER 100g, 200g, 400g, 500g & 5000g TK. 27 for 100g; TK. 45 for 200g
• CUMIN POWDER 100g, 200g, 400g, 500g & 5000g TK. 27 for 100g; TK. 45 for 200g
• CHILLI POWDER 100g, 200g, 400g, 500g & 5000g TK. 27 for 100g; TK. 45 for 200g
• CURRY POWDER 200g, 400g & 1000g TK. 45 for 200g; TK. 85 for 400g
• MEAT CURRY MASALA 100g & 200g TK. 50 for 100g; TK. 85 for 200g
• FISH CURRY MASALA 100g & 200g TK. 50 for 100g; TK. 85 for 200g
• GINGER POWDER 35g & 100g TK. 20 for 35g; TK. 27 for 100g
• VEGETABLE MASALA 50g TK. 45
• KABAB MASALA 50g TK. 75
• BORHANI MASALA 50g TK. 28
• BIRYANI MASALA 55g TK. 80

Product Life Cycle:
Radhuni has just finished its introduction stage in the product life cycle (PLC) and it is now at the beginning of the growth stage in PLC. The company must spend substantial funds to keep up with high market growth. There are also competitors in the market and it is very important to fight with the competitors to survive in the market. For that, Radhuni has to take the following steps:
1. Radhuni has to keep reminding its potential customers.
2. Radhuni has to make its product available to the customers.
3. Radhuni has to maintain the growing sales of its product.

Figure: The Product Life Cycle (PLC)

Implementation of product:
The position of Radhuni Powdered Spices in the implementation chart is given below:

Market
Penetration Product Development
Market Development
(RADHUNI)
Diversification

Brand Share:
Radhuni is a new brand but people have enough awareness about this brand. We get from a market survey that RADHUNI has got 55% market share. Its relative market share is 55/10 = 5.5 and its growth rate is quite high. RADHUNI is on the star position in the BCG matrix.

Figure: Boston Consulting Group Matrix

Major Competitors:
Today understanding customer is crucial, but it is not enough. Companies gain competitive advantage by satisfying target consumer needs better than competitors do. Therefore it is important to know the competitors, their strengths and weakness and also the strategies of the competitors. At the narrowest level, there are a number of competitors competing in the market these are
• BD
• TIGER
• ARKU
• FRESH
• PRAN
• TATA
• KWALITY
• SHUSHADU
• GRIHINI AND OTHERS
At a wider range of competition, the brand is challenged by local spice shop. It has been found that this type of producers altogether grab a substantial amount of market share. And it has achieved so much market share only on the basis of people’s tradition to consume spicy powder. And people’s attitude toward spicy powder led them to have a strong position in the market. When we asked the general people who usually do not like to have spicy powder, “what do you buy?” They said “vangano masala” When we asked, “Do u ever buy spicy powder?” They said “yes, when we don’t have any vangano masala in hand”. When we asked them to name a brand, with no hesitation they first mentioned the name of “RADHUNI”. Afterwards when they are given the option to name a few they have just added some names whatever came to their mind Based on these findings we can rate “RADHUNI” and its competitors.

This information is given below:

Brand Customer awareness Product quality Product availability Seli8ng staff PROMOTION
Radhuni Excellent Excellent Good Excellent Excellent
Tiger Fair fair Poor Poor Poor
BD Fair Fair Fair Fair Good
Arku Good Fair Good Good Good
Fresh Good Fair Good Good Fair
Pran Fair Fair Fair Fair Good
Tata Poor Poor Poor Poor Poor
Kwality and others Poor Fair Poor Poor poor

Until recently “RADHUNI” has been in the strong versus weak competitive position in the market. But recently few strong brands have entered in the market by which a “RADHUNI” is going to face a bit competitive situation especially from the PRAN group.
A draft will help us to understand it more clearly:

Figure: Position of Radhuni and its competitors

We may have an idea of the mind share, heart share and market share of the company and the industry from the table given below.

Brand Mind share Heart share Market share July 04-dec 05 Jan 05-till now July 04-dec 05 Jan 05-till now July 04-dec 05 Jan 05-till now
Radhuni 93% 90% 84% 81% 50% 55%
Tiger 3% 2% 10% 8% 20% 8%
Arku 1% 2% 2% 3% 8% 10%
Fresh 2% 2.5% 2% 3% 10% 10%
BD 1% 1.5% 2% 2% 12% 9%
Pran 0% 1% 0% 0.5% 0% 4%
Tata 0% .5% 0% 0.5% 0% 1%
Others 0% .5% 0% 2% 0% 3% total 100% 100% 100% 100% 100% 100%

Both low entry and exit barriers encourage companies to start the business. So, there has always been a threat of new entrants and which has made the market competitive.
Exit Barriers low High
Low Low, stable returns Low, risky returns high high, stable returns high, risky returns

Though the market has already got some competitors, “RADHUNI” is doing quite fine in the market. This has been possible through its strong reputation for quality and trust. But the situation has challenged the new entrants while the existing firms are having hardship to increase or grab market share. Many companies are not getting the market share because of their poor distribution coverage, advertising, sales promotion and so on. Competitors pricing are relatively low compare to “RADHUNI”.

4 Ps of Competitors:
Two major competitors of Radhuni are Pran and ACI. The 4 Ps strategies of these major brands have been shown below:

4 Ps/Brand Name Pran Gura Masala ACI Pure Gura Masala
Product PRA N has the variety in the packaging by color and size. Spices products of pran are chili, turmeric, coriander, and cumin seed. On the other hand mix spices are also familiar to the customer like as, Curry Powder, Fish Mix, Haleem Mix, chopati mix,meat masala, chicken masala. All products are different from other company’s product by their quality. ACI focuses on improving the food habit of consumers through providing more ready to cook products and ready to eat. Mix spices include haleem mix, khir mix, and meat curry mix. Pure Kheer Mix is an easy cooking cereal based products. Pure Haleem is very nutritious with a mouth-watering taste. Pure Meat Curry Masala is a flawless blend of different spices like chili, turmeric, coriander, cumin, black pepper, ginger, garlic, cardamom, cinnamon, clove and bay leaf to reduce the cooking hassle while providing the mouth-watering taste of ethnic meat curry.
Price Comparatively PRA N product has a little bit lower price than others. Because their large target market is rural people/village people. In the target market of PRA N most customers are price sensitive; so a small decrease in price can do many change in market share and sell has been increase. At the same time, small increase of price can do many customer falls and hamper in profit margin. PRAN often offered discounts by price to get more attention. ACI Pure products price not so much high but a little bit higher for their quality and packaging. So village people use less ACI Pure products. But they have a good image and a strong market share in the market. In terms of discount and credit items, retailer get more benefits then the common buyers. , like: 10 taka off with a1 dozen product. Normal buyer doesn’t buy so many products at a time, but retailer do.

Place PRAN uses all the media like television advertisement, newspaper, billboards, radio advertise for marketing. Using the common people psychology PRAN is in the mind of many customers. Today, consumers not only value PRAN for its authentic refreshing juice drinks products , but also for its mouth watering quality confectionery products with high visual appeal and exciting texture. They intend to expand their presence to every corner of the world and strive to make PRAN a truly international brand to be recognized globally. ACI pure is not so much popular in rural market. But it has the strong market in town or city market. They have turned out International market label product .As a result they are exporting their products in foreign market. Sell abroad Countries are United Kingdom(UK),Kuwait, Bahrain etc

Promotion PRAN has already reached their goal by advertising on television, newspaper, billboards etc. Various types of traditional occasion is the main time of making and publishing new advertisement and promotion. (Like: in the EID time, pohela boishakh etc). ACI pure has a strong market in urban area comparing to the village market. They also have all types of media advertisement.

In this section marketers list the most important channels provide an overview of each channel arrangement and mention any new developments or trends. Radhuni Powdered Spices are distributed through a network of retailers in the top high sellable markets. Sellable product means main packing products which are divided into some group. Firstly if the products are made, it is shown in the wave page. Its price and all other necessary information will be included there. Each group has five or six members and it has only one manager. The manager maintains all things. He or she then observes and declares that to what place the products will go. If there is any lacking, manager takes necessary steps.
From the factory, the intermediaries buy the products. Intermediaries mean retailer, wholesaler, agent or broker etc. generally wholesalers buy products from factory at a high quantity and they get this at a very little price. Then they sell those products to retailers at a little bit higher price, so that after selling they can have profit. Usually then the retailers sell these to customers who finally consume the products.
A diagram will help to understand the distribution process:

SWOT Analysis:
Strengths:
o “RADHUNI” has a strong team for Research and Development. The members consistently seek opportunities to find the new demands and meet them by launching new products. o “RADHUNI” has a strong financial condition and support from its parent company. o “RADHUNI” has achieved a strong brand image. It has selected a good relevant brand name for its products whereas other firms suffering from it. o “RADHUNI” talks quality and gives quality to its customers. o “RADHUNI” has updated manufacturing plant with the capacity to meet the demand. o “RADHUNI” has a wide variety of products which others do not have. o “RADHUNI” has achieved a good competitive advantage through its distribution coverage system.

Weakness o It charges a bit high price than that of its competitors. o Though they have good distribution coverage system, products are always available in posh urban areas but in some urban places they fail to provide the product in time, as a result they are losing a potential market share

Opportunity o The culture of eating foods encourages the opportunity of expanding the market. o The market is large in this business. o There is a huge prospect in this business; a small number of populations have become aware of the advantages of adopting the spicy powder but huge population is there to adopt it. o A number of competitors are there in the market but they are relatively weak in terms of financial condition, company size and management. o Few firms are following the promotion mix, especially they are lacking in sales promotion but in this case RADHUNI is strongly following this strategy.

Threats o The market has become competitive in terms of number of competitors as well as possible entrants of some new companies. o Consumers are exposed to ads given by some companies. o People of our country still think that this type of ready mix spice will not give them that taste what they could have from the powdered spice which they make manually.

Problems:
There is some lacking of RADHUNI brand which is creating barriers to grab a substantial market share for this brand. These problems are –

o People of our country still think that this type of ready mix spice will not give them that taste what could have from the powdered spice which makes manually. o The Consumers are exposed to ads given by some other companies

Solution: o In resolving this problem RADHUNI need to develop a creative and effective ad which should be focusing on the attitude of the consumers and change it accordingly by assuring more benefit from that of traditional VANGANO MASALA. If RADHUNII can build an advertisement which contains a massage, through that people can understand this product will meet their demand and this brand will give them more than what can get from the traditional VANGANO MASALA. o RADHUNI have to make an ad which must be more creative and more effective then the competitors. In this way RADHUNI can attract our target consumers and make them aware about our brand.

Company’s Mission Statement:

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

Company’s Marketing Objectives:

There are some objectives of Square Consumer Products td. These are:

General Objectives • To continue to provide the very best of what the consumer wants
• To explore new segments of market and to cater to it
• To continue to assure intrinsic quality of hygienic food products
• To enhance consumers' standard of food habit
• To ensure that the products are available at consumers' doorsteps
• To enhance the strength and skill of the organization that will contribute to company's increasing growth both in domestic and global markets.

Marketing Objectives:
• To provide the very best of what the consumer wants
• Maintain positive steady growth each month.
• Increase market penetration every quarter.
• Generate increased brand awareness quantified by reactions/feedback of customers at the trade shows.

Financial Objectives:

• Decrease customer acquisition costs by 1% a quarter.
• Continue to decrease variable costs through efficiencies gained from experience.
• Increase profit margins by 0.5% per quarter.

The above research describes us that how company can create a potential campaign for the brand RADHUNI. It also defines us the market and product description of Radhuni Powdered Spices. This report also shows how Radhuni targets its market and distributes its products to them. Besides, we can come to know about the competitors of Radhuni Powdered Spices in our country. Though Radhuni has some problems, we have discussed here how it can come up with the solutions. Moreover, Radhuni has some objectives and issues where it gives main priority to its customers. Its main purpose is to make its target consumers to start using this brand and become loyal to this brand. Because, Radhuni serves its best. This is why, it says, “খাঁটি মানের নিশ্চয়তা।”

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