1.

Current Marketing Analysis

1.1 Market Description

Bangladesh is a country of 150 million people with a growing economy and a thriving middle
class. The construction boom in Bangladesh over the last 25 years has created a sizable market
for air coolers. Currently, the air cooler market size in Bangladesh is roughly $140 million (per
year) and it is growing at approximately 5% to 10% every year. The future of air cooler market
in Bangladesh appears to be extremely bright and fruitful. According to the Bangladesh
Refrigeration & Air-Conditioning Merchants Association (BRAMA), there are 650 registered
air-cooling equipment businesses currently operating in Bangladesh

Unfortunately, for the most part, do not have access to high standard products or cannot afford.
So, there is a huge demand of Air Coolers for the increasing population .In Bangladesh, more
than 80% Air Coolers are imported which has made the price range vulnerable to be reached by
the general people especially the rural people. About 80% people of our country live in rural
areas, but they cannot afford a Air Cooler due to higher price and lack of electricity.

1.2 Product Review

Our product, eco-cooler, is an air cooler which is different in comparison to others as it serves
the need through the best use of natural resources as well as saving the energy without making
any huge cost. Eco-cooler will provide some benefits that will compel the people to think about
it. The product benefits are given below:

 Eco-friendly
 Zero electricity consumption
 Reduce temperature 5-7c◦
 Lower cost

The raw materials used for eco-coo ler are available and cheap. Besides we are following the
green concept considering waste management through recycling and remanufacturing. The
required raw materials are:

Components
Transparent plastic
Glass
Nut Bolt
Glue

Page | 1
1.3 Competitor Review
Intense competition exists in this market. Though there is no direct competitor in the market at
present. But there remain many indirect but strong competitors. These are given below:

 Fan companies: Fan companies are the toughest competitors. Fan is the mostly used
product for air. It can be used by all people of all classes. As now electricity is reached
everywhere and it is comfortable to use, the usage rate of fan is very high. Moreover, the
price according to quality is affordable approximately by all classes of people.

 Air conditioner: Even a few years ago air conditioner is considered as luxury product
but in recent years the use of air conditioner is increasing rapidly. The reason behind this
is the rising of income level. Besides, many local companies are bringing it in the market
at a reasonable price that leads to capture large market coverage.

 Air-cooler: Electric air-cooler is available in the market at a lower price. So, it is also our
competitor.
 Solar energy: Solar energy is widely used both in rural and urban areas. The use of solar
energy is not only environmentally friendly but also cost effective. It enables people to
enjoy air from fan or electric cooler when there is no electricity. This also increases the
competition level.

1.4 Channels & Logistics Review

For distributing these kinds of products both direct and indirect channels are chosen. In
direct channel, the manufacturers contact with customers without any intermediary and
the electronic media is used like internet, mail. In indirect channel many intermediaries
are also used.
Our business and market nature best suit the indirect channel, not direct channel.

2. Situation Analysis
2.1SWOT Analysis
 Strength
 No need of electricity
 Eco-friendly
 Lower manufacturing cost as remanufacturing is possible
 No overhead of maintenance
 No after sale service is required.

Page | 2
  Weakness
 It covers small area
 Direct channel can’t be used
 Lower acceptance for not being much fashionable

 Opportunity
 Huge market
 Less direct competitor
 Electricity price rise
 Behavioral change

 Threat
 Easy to entry in the market for competitors
 Available substitutes
 Uncertainty of customers adopting the product

2.2PESTLE Analysis
 Political

The political situation of our country is approximately stable and quite favorable to running
business. Moreover, the political influence is very less on our sector as a small business and as
an eco-friendly product we can expect political support.

 Economical

The economic condition is increasing in our country day by day. Besides it’s not an expensive
product so it provides a positive sign for our business.

 Social

Our product has no harmful effect on society. So there is no problem for the social context.

 Technological

We don’t need any sophisticated technology for producing our product.

 Legal

As an environmentally friendly product, there exists no legal barrier. Moreover, getting legal
approval is very easy.

Page | 3
  Environmental

The product itself is an eco-friendly product. So, it is favorable to our business.

3. Objectives and Issues

The Objective is to bring a product which is not only smart in a sense that it do not consume
electricity but in essence it is a way to be eco-friendly through remanufacturing raw material for
sustainable development of our society by reducing environmental pollution as well as reduction
in power usage.

 Vision: Building green Bangladesh

 Mission: To reach all customers with green products.

4. Marketing strategy
Our marketing strategy is based on a positioning of product differentiation. To materialize our
goal of introducing, our green product, eco-cooler in the market and making it successful that is
both beneficial for the customers and the society making a marketing strategy is a must.

4.1 Segmentation
 Geographical: We will consider the regions with more open spaces and winds.
 Demographic: In this case we will consider all age groups, middle and lower income
people.
 Behavioral: The people’s behavior like knowledge, use or response of a product.
 Psychographic: Personality, lifestyle or social class will be considered.

4.2 Targeting
Our main target market is the rural market as here the best use of the product is possible. We are
targeting the customers of lower and middle income group.

We are also considering urban areas as our potential market on the basis of customers’
consciousness about environment.

4.3 Positioning
As its’ an eco-friendly it product already holds a positive view on both consumer and social
context. Besides the benefits like no energy loss, lower cost will pave the way of making a

Page | 4
distinctive place in the customers mind. Our products’ Point of Difference (POD) is “100%
Energy Efficient Cooling System”.

Slogan: ইক ো- ু লোর আকে তোই, বিদ্ুুকতর বিন্তো নোই।

4.4 Product Strategy
 Bringing variety in our products like using glass and transparent plastic as raw material.
 Customization for customers if needed.

4.5 Pricing Strategy

We will actually follow cost based pricing as it’s not a luxury product.

4.6 Distribution Strategy

Our channel strategy is to use selective distribution. Indirect channel will be preferred. In this
case, we will have some outlets and the product will reach to our target customers through
intermediaries like NGO and others.

4.7 Communication Strategy

The prerequisite of becoming successful and sustaining in the market is better communication. In
communication strategy we will consider the media that is suitable for our target market. As the
product is new in the market, the biggest challenge is to educate people regarding the use and
benefit of the product, then the positioning of the product through communicating its point of
difference.

The consideredmedia are radio, exposure in BTV, spokesperson, personal selling, local
newspaper etc.

4.8 Marketing Research

We will do marketing research, through which specific features or benefits that customers’ value
can be identified. Feedback from market tests, surveys and focus groups will help us to bring
modification in the product or communication if needed. We will also analyze customers attitude
toward brand in comparison to the competitors, either they are aware or not etc. finally, customer
satisfaction will be measured.

5. Action Program
We are aiming to introduce our product by January, 2018. Following are the summaries of the
action programs we will use during the first six months of next year to achieve our stated
objectives.

Page | 5
First year

We will invest BDT 50,000 for the communication strategy of our product during the first year.
It includes TV advertising, Newspaper coverage to get vast exposure and public relation
campaign to pursued and establish strong relation with our target customers. We will also crate
buzz by providing samples to selected product reviewers, opinion leaders and spokesperson.
Alongside with them our trained staffs will be responsible for any kind of explanation asked by
the customers and our staffs will visit households to build positive word of mouth.

We will marketing research and test marketing and this time, we will use plastics to build the
board and funnel of our Air Cooler.

Second Year

By the second year we will get our desired exposure. Now, we will expand our business, build
another plant, increase machinery and staffs. We will invest in product development and product
innovation.

We will offer glass-made Air Cooler by this year.

6. Budget& Control
6.1 Budget
Our break-even analysis assumes per unit wholesale revenue BDT 1000 and per unit variable
costs BDT 300and estimated first year fixed cost as BDT 2,50,000. Based on those assumptions
the break-even calculation is-

2,50,000
Break-even Volume= ---------------------
1000-300

= 397 units

6.2 Control
We are planning tight control measures to closely monitor quality and customer service
satisfaction. This will enable us to react very quickly in correcting any problems that may occur.
We will ensure Total Quality Management and Product Re-Manufacturing. Other early warning
signals that will be monitored for signs of deviation from the plan include monthly sales and
monthly expenses. We will also develop contingency plans to address further challenges in the
market environment.

Page | 6
 7. Conclusion
Eco-cooler is a green product. As it is produced with wastage like used glass and bottle and it
helps to keep the environment clean. By using this product, consumers can be benefited in two
ways – one is, they don’t need to pay any electricity bill for it and the second, one is they are
contributing to save the environment. It is the only way to be environment friendly with low cost.
it is the time for thinking future and sustainability of our environment, where a eco product is
going to contribute. The prospect of the eco cooler is providing rural people to have benefits of
high-end product.

Page | 7