Internship report on Emerald Oil Industries Ltd.

7/22/2019 Internship report on Emerald Oil Industries Ltd.

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INTERNSHIP REPORT

ON

Marketing Practices of Emerald Oil Industries Ltd.

Submitted in partial fulfillment of the requirement for the award of Bachelor of

Business Administration (B.B.A), Major in Marketing.

Submitted to:

Farhana Yesmin Liza

Lecturer

Department of Business Administration

Asian University of Bangladesh

Submitted by:

Md. Hasibul Hossain

ID: 201010314

Batch: 38th

Major: Marketing

Department Of Business Administration


ASIAN UNIVERSITY OF BANGLADESH


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Letter of Transmittal

September 18.2014

Farhana Yesmin Liza

Lecturer

Asian University of Bangladesh,

Uttara, Dhaka.

Subject: Marketing Practices of Emerald Oil Industries Ltd.

Dear Sir,

With due respect, I would like to submit an exclusive Internship Reporton MarketingPractices of Emerald Oil Industries Ltd. as a part of my BBA program. The report

deals with whole activities of this Fast Food chain. I tried my level best to make the

report meaningful and informative.

As the time was limited, the report could not be done more comprehensively and

analytical. However, I expect that you would enjoy the report.

Sincerely Yours,

............................

Md. Hasibul Hossain

ID: 201010314

Batch: 38th

Subject: Marketing (Major)




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Students Declaration

Im Md. Hasibul Hossain student of Bachelor of Business Administration (B.B.A), 38th

Batch, ID: 201010314, (B.B.A), from Asian University of Bangladesh, declare that this

Internship on Marketing Practices of Emerald Oil Industries Ltd.is completely of

my own work. References are provided as it is free of plagiarism.

Md. Hasibul Hossain

ID: 201010314

Batch: 38th

Subject: Marketing (Major)




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Supervisors Certificate

I hereby certify that Md. Hasibul Hossain, student of B.B.A, ID:201010314 for under

graduates (38th Batch), major in Marketing of Asian University of Bangladesh, has

successfully completed his internship for 3month and his Internship Report entitled

Marketing Practices of Emerald Oil Industries Ltd.He works under my guidelines

and supervision.

I wish very success in his life.

...

Farhana Yesmin Liza

Lecturer

Department of Business Administration



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Acknowledgement

First of all I would like to express my heartiest gratefulness to the almighty Allah. The

topic of Internship report assigned to me is Marketing Practices: Emerald Oil

Industries Ltd.I am very glad to do this study & enormous debts are accumulated on

the way to complete this report. This report is prepared as a partial fulfillment of BBA

degree in the Department of Marketing Studies.

I am especially grateful to Farhana Yesmin Liza, Lecturer, Asian University ofBangladesh for giving me chance for do my internship report.

I would like to thanks from the core of my heart to Md. Abul Kalam Azad (Factory

Manager, Emerald Oil Industries Ltd). For his unconditional support, when assisted me to

complete my internship program successfully. I like to offer my thanks to Md. Abul

Hasnat (Territory Sales Officer) and Md.Nazrul Islam (Divisional Sales Manager) who

helped me a lot by giving his valuable responses during my internship period.

Md. Hasibul Hossain

ID: 201010314

Batch: 38th

Major: Marketing




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Executive Summary

Rice bran oil is theoil extracted from the hard outer brown layer ofrice after chaff (rice

husk). It is notable for its highsmoke point of 232 C (450 F) and its mild flavor,

making it suitable for high-temperature cooking methods such asstir frying anddeep

frying. It is popular as a cooking oil in several Asian countries,

includingJapan andChina.

Emerald Oil Industries Ltd. is an International Standard high quality oil manufacturer. It

is a Public Limited Company which was established in 2008 with a mission to produce

edible oil which is a common item for preparation of daily food of human being.

The main objective of the study is to give an overview of the marketing practices of

Emerald Oil Industries Ltd. and identify the strength, weakness and critical risk factor of

its product Spondon Rice Bran Oil .

Data collected for the study in two different modes namely primary and secondary. Face

to face conversation through questionnaire from the students, service holders, teachers

and housewives from metro area to collect primary data and for secondary data various

publications and related body are observed.

The main limitation of the study was short time limit and authenticated data

insufficiency.

The synergy of dedicated manpower, technology, and market opportunity can lead the

organization to achieve the goal; an oil manufacturer must establish and hold fast to

adequate policies, practices and procedures for evaluating the quality of oil and the

adequacy of customer satisfaction.
http://en.wikipedia.org/wiki/Vegetable_oilhttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Smoke_pointhttp://en.wikipedia.org/wiki/Stir_fryinghttp://en.wikipedia.org/wiki/Deep_fryinghttp://en.wikipedia.org/wiki/Deep_fryinghttp://en.wikipedia.org/wiki/Cooking_oilhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Cooking_oilhttp://en.wikipedia.org/wiki/Deep_fryinghttp://en.wikipedia.org/wiki/Deep_fryinghttp://en.wikipedia.org/wiki/Stir_fryinghttp://en.wikipedia.org/wiki/Smoke_pointhttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Vegetable_oil


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Table of contents

Particulars Page

NoLetter of Transmittal

Students Declaration

Supervisors Certificate

Acknowledgement

Executive Summary

Chapter One: Introduction

1.1 Introduction

1.2 Rationale of the study

1.3 Objectives of this report

1.4 Methodology of the study

1.5 Research problem

1.6 Scope of the study

1.7 Limitations of the study

Chapter Two: Marketing Practices of Emerald Oil

Industries Ltd.

2.1 Marketing practices of Emerald Oil Industries Ltd.

2.2 Description

2.3 Product name selection

2.4 Product positioning

2.5 Concept development

2.6 Concept Management

Chapter Three: Price

3.1 Price


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3.2 Brand wise price record

3.3 Pricing objective

3.4 Marketing strategy & price

3.5 Pricing decision

3.6 Factors of pricing decision

3.7 Corporate pricing & price discount

Chapter Four: Overview of Distribution Channel

4.1 Overview of distribution channel

4.2 Distribution system of Emerald Oil Industries Ltd.

4.3 ProcessChapter Five: Promotion

5.1 Promotion

5.2 Advertising

5.3 Corporate client management

5.4 Corporate client management systems

5.5 Managing ordinary customers

5.6 Advertising media

5.7 Monthly cost advertising in RTV

Chapter Six: Presentation of Data

6.1 Presentation of data

Chapter Seven: Problems

7.1 Problems

Chapter Eight: Recommendation and Conclusion

8.1 Recommendations

8.2 Conclusion

BIBLIOGRAPHY


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1.1 Introduction

Marketing plays a vital organizational role for a Firm. A company expands their product

line on base of its marketing performance. As it helps to achieve the out comes of the

company the more efficient a company in marketing, the more efficient in performance

marketing is related with profit. If the product can fulfill the expectation of the consumer,

it will be able to earn more profit. If it cannot fulfill the expectation of the consumers, it

wills loss the share in the market. For this reason, the firms always try to ensure better

marketing management of the operation to create a competitive advantage in the market.

Emerald Group of Industries is one of the largest companies in Bangladesh. At the

present time it has a rich business portfolio and except some products in all products of

the business portfolio Spondon Rice Bran Oil is holding leading position. This group

plays an important role in our national economy and creates a huge number of

employment opportunities.

After all, the marketing performance of the company is better than other competitors. I

have performed my duties in the Emerald Oil Industries Ltd. sector during internship

period. I personally surveyed different areas, meet different classes peoples and collected

date from them about my concerning activities. So, Data has been collected using case

method of study.

1.2 Rationale of the study

In harmony with the objective of the study of marketing practices of Spondon Rice Bran

Oil, the rationale of this report encompasses feasibility and appraisal of marketing


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practices of Spondon Rice Bran Oil, based on realistic survey, analysis and assessment of

customers reaction about marketing practices of Spondon Rice Bran Oil. This report also

focuses on specific purpose of marketing practices such as product, price, distribution and

promotion.

1.3 Objective of this report

Objectives setup for any analysis is more important for the smooth and fruitful of this

analysis. Also the objectives of this report boosting and reaping optimum benefit of the

study.

1. To know whether theproductSpondon Rice Bran Oil is maintaining desired

qualityor not based on customer response.

2. To understand Pricing objective and customer reactionin the existing pricing

structure about Spondon Rice Bran Oil.

3. To analyze marketing problems and provide recommendation for Spondon Rice

Bran Oil.

4. To understand promotional, specifically advertising Objective of Spondon Rice

Bran Oil and customers response to the advertising in making purchase.

5. To gain information about customers reaction in purchasing Spondon Rice Bran

Oil.

1.4 Methodology of the Study

This report is based on realistic field survey of customers reaction on marketing

practices of Spondon Rice Bran Oil. For preparing this report data have been collected in

the following way:


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Sources of Data:

Primary Data: Primary data for the study have been collected through

questionnaire from the students , service holders, teachers and housewives from

metro area.

Questionnaire: formal questionnaires were provided to the respondents on

structural pre determined purpose. The answers from the respondents were asked

to be direct and real time based.

Secondary Data: Secondary data were collected from the company and its

previous years sheets, the marketing and sales department of the company and

theoretical knowledge from book on Principles of Marketing by Philip kotler and

web sources specially company website.

1.5 Research Problem

The research problem of the study is to find out marketing problems of Spondon Rice

Bran Oil. Although it is a very generalized and broad interpretation , the researcher has

tried his best to sort out the marketing problems based on statistical analysis. The

researcher , for the feasibility of the report has gone through field survey for avoiding

biasness of manipulation.

1.6 Scope of the study

The scope of the study was limited up to the oil industry of Bangladesh. As this oil industry is

very vast & as there is a huge customer base in oil industry, the scope of working in this industry

is up to the expectation. The researcher is supervised to work in a particular enterprise named

Spondon Rice Bran Oil. As particular side of research is on the marketing practices of

Spondon Rice Bran Oil, the researcher has tried his best to figure out the details of the

marketing problems of Spondon Rice Bran Oil. As far as possible, researcher has tried all out


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effort in gathering data related to the subject matter of the study including primary & secondary

data. My internship programme started from 1st march,2012 up to 31

stmay,2012.

1.7 Limitations of the study

Any report is not out of limitation. While conducting my study in various places , faced

some limitations. These are as follows:

Biasness of the customers while providing data in making survey, is an

unavoidable limitation.

Inadequacy of awareness of customers while providing data is also a limitation.

Application of Perfect statistical measurement was also not possible because of theabove two limitations.

Insufficient data also a limitation.

Arrangement of data is also not 100% accurate.


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2.1 Marketing Practices of Emerald Oil Industries

Ltd.

We all know that Marketing Practices is the set of controllable, tactical marketing tools

that the firm blends to produce the response it wants in the target market. The Marketing

Practices consists of everything the firm can do to influence the demand for the product

which have to be carefully managed and must meet the needs of the defined target group.

The many possibilities can be collected into four groups of variables known as the four

Ps: Product, Price, place, Promotion.

2.2 Description

Product means the goods and services combination the company offers to the target

market. In general, the product is defined as a "thing produced by labor or effort"

or the"result of an act or a process.

Spondon Rice Bran Oil is Nutritionally Superior,

Heart Friendly Cooking Oil for Every Happy Home!

With that motto, Emerald Oil Industries Ltd. continued its triumph to produce refined

Rice Bran oil which is right for human consumption. Their product offering is- Refined

Rice Bran Oil.

Under the Rice Bran Oil offering, Emerald Oil Industries Ltd. set its Products

Segmentation according to-


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a. 1 Liter Bottle

b. 2 Liter Bottle

c. 5 Liter Bottled. 8 Liter Tin

e. 10 Liter Tin

Emerald Oil Industries Ltd. is a Public Limited Company was established in 2008 with a

mission to produce edible oil which is a common item for preparation of daily food of

human being. Emerald Oil Industries Ltd. has grown up as one of the largest national

private company being registered under the Joint Stock Company & has able to get the

quality standard of ISO-9001: 2008. Now company has been producing hygienic,

nutritious and quality refined rice bran edible oil-Spondonfrom 2011 by its skilled and

committed staffs. Rice bran, which is the main raw material for the project is available all

over the country.

2.3 Product Name Selection

We select names from three vantage points. Once we are confident that our teams have

created broad ranges of potential solutions, we review each candidate from three distinct

vantage points:

Strategic Impact: This is the ability of a new name to get attention (within a category),

generate interest, and deliver a new message.

Semantic Value: Too often a name is selected simply by its literal meaning or rejected

because of a few personal associations. In our selection process, we look beyond a

words literal meaning and analyze other possible associations that the name might

suggest. Is the name multifaceted? Can it deliver new energy to the category?


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Phonetic Structure: Does the name look and sound natural or artificial? Does it offer a

pleasing, rhythmic quality? Is it constructed to create a balance between vowels and

consonants? Is it likely to be memorable because of its stress patterns? Does it help to

convey the right tone?

2.4 Product Positioning

Identifying a market niche for a brand, product or service utilizing traditional marketing

placement strategies (price, promotion, distribution, packaging, and competition). A

company, a brand or a brand must have positioning concept in order to survive in the

competitive marketplace.

Product posit ioning process:

Effective Brand Positioning is contingent upon identifying and communicating a brand's

uniqueness, differentiation and verifiable value. It is important to note that "me too"

brand positioning contradicts the notion of differentiation and should be avoided at all

costs. This type of copycat brand positioning only works if the business offers its

solutions at a significant discount over the other competitor(s)

Generally, the brand positioning process involves:

1. Identifying the domestic Edible Oils markets direct competition: Bangladesh is a big

market for Edible Oil companies both Domestic & Foreign. Competitors of this

industry took places in a competitive market. Emerald Oil Industries Ltd entered in

market early in 2008. Its strategic aim is

1. Provide Quality products &

2. Low price operation.


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2. Understanding how each competitor is positioning their business today (e.g. claiming

to be the fastest, cheapest, largest, the #1 provider, etc.).

3. Documenting the provider's own positioning as it exists today. Emerald Oil Industries

Ltd. employed Mr. Kazi Motaher Uddinto manage the documentations of branding

& legal affairs.

4. Comparing the company's positioning to its competitors' to identify viable areas for

differentiation. Emerald Oil Industries Ltd. differentiated its product according to

market competition. Its remains its low price operations through own support on

packaging, transport, research & development.

5. Developed a distinctive, differentiated and value-based positioning concept. E.g.

Corporate dealings, Availability of product, Value added offeringsetc.

6. Creating a positioning statement with key messages and customer value propositions

to be used for communications development across the variety of target audience

touch points e.g. advertising, media, PR, website, etc.

2.5 Concept DevelopmentThough brand development is by no means a new idea, today our domestic Edible Oil

consumers have more access to information and more choices than ever before. The

result is higher expectations, and the brands message must captivate the consumer

immediately. Edible oil companies seeking to experience long-term success will have to


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create the most compelling, relevant, and consistent brand experiences for their

customers.

A Promise Is a Promise

Emerald Oil Industries Ltd. providing a Brand Proposition that is engaging, is easily

understood, and offers an emotionally positive solution to needs and desires only serves

to enhance the current customers perception. The company ensures & remaining the

product quality, delivery & customers expectations.

Deliver the Unexpected

When developing a brand proposition, never let your brands promise be one that is

already expected; this is a sure way to NOT stand out from your competitors. Advertising

efforts that utilize adjectives like good, or nice are sure to fail when seeking to be

both engaging and unique. The company offers value added products e.g. a bundle mix

of Emerald Oil I ndustri es L td.with Radhuni Spices(turmeric powder, chili powder

etc) 100 grams pack.

Winning their Hearts and Minds

An important aspect of brand development is to create a positive emotional attachment to

the brand which creates a response in its audience without the audience seeing the

product or directly experiencing the service. The Emerald Oil Industries Ltd. selected the

brand name as its easy to listen & to remember. The peoples of Bangladesh like to buy a

domestic product which has a flavor of its origin. The Company participates on socio-

cultural & welfare programs with their Brand & Logo.


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2.6 Concept Management

Brand managing, it includes developing a promise, making that promise and maintaining

it. It means defining the brand, positioning the brand, and delivering the brand. Brand

management is nothing but an art of creating and sustaining the brand. Branding makes

customers committed to your business. A strong brand differentiates your products from

the competitors. It gives a quality image to your business.

In case of Edible Oil brands, the tangibles include the product itself, price, packaging,

etc. While in case of service brands, the tangibles include the customers experience. The

intangibles include emotional connections with the product.

Branding is assembling of various Marketing Practices medium into a whole so as to give

you an identity. It is nothing but capturing your customers mind with Spondon Rice Bran

oils brand name. It gives an image of an experienced, huge and reliable business.


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3.1 Price

One of the four major elements of the Marketing Practices is price. Pricing is an

important strategic issue because it is related to product positioning. Furthermore, pricing

affects other Marketing Practices elements such as product features, channel decisions,

and promotion. Price is the quantity of payment or compensation given by consumers to

the company in return for goods. As the market of Rice Bran Oil is unpredictable

sometimes it needs to lower the prices and sometimes it needs to be rationalized. So price

of Rice Bran Oil doesnt remain constant due to lack of stability of economical

environment, change at exchange rate, high interest and political unrest. Facing these

complexities, Emerald Oil Industries Ltd. tries to continually examine and reexamine the

prices to make affordable price for the target customers.

Competitive Pricing environment in Edible Oil Industry:

In recent age, the market of edible oil is very competitive. Its made the pricing

environment hard to set a flexible price for any short of products (edible oil). Setting the

price of a product based on what the competition is charging. Competitive pricing is used

more often by businesses selling similar products (soya bean, vanaspati, palm etc.),

since services can vary from business to business while the attributes of a product remain

similar. This type of pricing strategy is generally used once a price for a product or

service has reached a level of equilibrium, which often occurs when a product has been

on the market for a long time and there are many substitutes for the product.


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3.2 Brand wise Price Record

Position in PET (Rice Bran Oil)

Brand Taka/Liter

2012

Taka/Liter

2013

Taka/Liter

2014

Spondon

(Rice Bran)

125.00 131.00 140.00

Shwarna

(Rice Bran)

123.00 130.00 137.00

White Gold

(Rice Bran)

127.00 135.00 150.00

Figure: Price Records of Edible OIL Companies in Last 3 Years.

3.3 Pricing Objective

Pricing objectives or goals give direction to the whole pricing process. Determining

what your objectives are is the first step in pricing. Emerald Oil Industries Ltd. pricing

objectives must be identified in order to determine the optimal pricing. Common

objectives include the following:

Current profit maximization - seeks to maximize current profit, taking into

account revenue and costs. Current profit maximization may not be the best

objective if it results in lower long-term profits.
http://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Pricing


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Maximize quantity- seeks to maximize the number of units sold or the number of

customers served in order to decrease long-term costs as predicted by the

experience curve.

Maximize profit margin - attempts to maximize the unit profit margin,recognizing that quantities will be low.

Quality leadership- use price to signal high quality in an attempt to position the

product as the quality leader.

Partial cost recovery- an organization that has other revenue sources may seek

only partial cost recovery.

Pricing Strategy:

An organization in a competitive market, can adopt a number of pricing strategies. The

pricing strategies are based much on what objectives the company has set itself to

achieve. Emerald Oil Industries Ltd screened its pricing objectives according to its

business operations & values.

3.4 Marketing Strategy and Price

Before the product is developed, the marketing strategy is formulated, including target

market (Bangladesh) selection and product positioning. There usually is a trade off

between product quality and price, so price is an important variable in positioning.
http://www.netmba.com/strategy/experience-curve/http://www.netmba.com/strategy/experience-curve/


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Because of inherent trade offs between Marketing Practices elements, pricing will

depend on other product, distribution, and promotion decisions.

Estimate the Demand

The country (Bangladesh) has huge market for Edible Oil Industries. Its potential

demand & supply can make it rich for investors to compete with Price. Because there is a

relationship between price and quantity demanded, it is important to understand the

impact of pricing on sales by estimating thedemand for the product.

Calculate Costs

If the firm has decided to launch the product, there likely is at least a basic understanding

of the costs involved; otherwise, there might be no profit to be made. The unit cost of the

product sets the lower limit of what the firm might charge, and determines the profit

margin at higher prices.

The total unit cost of a producing a product is composed of the variable cost of producingeach additional unit and fixed costs that are incurred regardless of the quantity produced.

The pricing policy should consider both types of costs.

Cost to Satisfy (Price)

Every company has to realize that price is one part of the cost to satisfy. One of the most

difficult places to be in the business world is the retailers selling at the lowest possible

price. If company relies strictly on price to compete then company is vulnerable to

competition- in the long term. So Emerald Oil Industries Ltd prioritizes to concentrate on

premium pricing considering premium image at consumers mind. If consumer is

satisfied then he/she becomes loyal customer which results in more benefits to the

company.
http://www.netmba.com/marketing/mix/http://www.netmba.com/econ/micro/demand/curve/http://www.netmba.com/econ/micro/demand/curve/http://www.netmba.com/marketing/mix/


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Environmental Factors

Pricing must take into account the competitive and legal environment in which the

company operates. From a competitive standpoint, the firm must consider the

implications of its pricing on the pricing decisions of competitors. For example, setting

the price too low may risk a price war that may not be in the best interest of either side.

Setting the price too high may attract a large number of competitors who want to share in

the profits.

From a legal standpoint, a firm is not free to price its products at any level it chooses. For

example, there may be price controls that prohibit pricing a product too high. Pricing it

too low may be considered predatory pricing or "dumping" in the case of international

trade. Offering a different price for different consumers may violate laws against price

discrimination. Finally, collusion with competitors to fix prices at an agreed level is

illegal in many countries.

3.5 Pricing Decision

The pricing decision is a critical one for most marketers, yet the amount of

attention given to this key area is often much less than is given to other marketing

decisions. One reason for the lack of attention is that many believe price setting is

a mechanical process requiring the marketer to utilize financial tools, such as

spreadsheets, to build their case for setting price levels. While financial tools are

widely used to assist in setting price, marketers must consider many other factors

when arriving at the price for which their product will sell.

When setting price, marketers must take into consideration several factors which

are the result of company decisions and actions.Emerald Oil Industries Ltd.followed


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& considered some common factors to make a decision about its price which will

better match with market & its competitors.

3.6 Factors of Pricing Decision:

Internal Factors:

To a large extent these factors are controllable by the company and, if necessary,

can be altered. However, while the Emerald Oil Industries Ltd. may have control

over these factors making a quick change is not always realistic. For instance,

product pricing may depend heavily on the productivity of the refining facility. The

marketer knows that increasing productivity can reduce the cost of producing each

product and thus allow the marketer to potentially lower the products price. But

increasing productivity may require major changes at the manufacturing facility

that will take time and will not translate into lower price products for a

considerable period of time.

External Factors:There are a number of influencing factors which are not controlled by Emerald Oil

Industries Ltd. but will impact pricing decisions. Understanding these factors

requires the marketer conduct research to monitor what is happening in each

market the company serves since the effect of these factors can vary by market.

Elasticity of Demand

Customer Expectations

Competitive and Other Products

Government Regulation

Segment Pricing of Emerald Oil Industries Ltd
http://www.knowthis.com/principles-of-marketing-tutorials/pricing-decisions/external-factors-elasticity-of-demand/http://www.knowthis.com/principles-of-marketing-tutorials/pricing-decisions/external-factors-customer-expectations/http://www.knowthis.com/principles-of-marketing-tutorials/pricing-decisions/external-factors-competitive-and-related-products/http://www.knowthis.com/principles-of-marketing-tutorials/pricing-decisions/external-factors-government-regulation/http://www.knowthis.com/principles-of-marketing-tutorials/pricing-decisions/external-factors-government-regulation/http://www.knowthis.com/principles-of-marketing-tutorials/pricing-decisions/external-factors-competitive-and-related-products/http://www.knowthis.com/principles-of-marketing-tutorials/pricing-decisions/external-factors-customer-expectations/http://www.knowthis.com/principles-of-marketing-tutorials/pricing-decisions/external-factors-elasticity-of-demand/


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Sl. Segments Price in Taka

A 1 Liter Bottle 140.00

B 2 Liter Bottle 280.00

C 5 Liter Bottle 700.00

D 8 Liter Tin 1080.00

G 10 Liter Tin 1320.00

3.7 Corporate Pricing & Price Discount

Emerald Oil Industries Ltd. is incorporated with some reputated corporate houses.

Most of them are consumer retailer, resturent, international hotel, tourist spot,

chain resturent etc.They are in corporated under law of in corporation. Their

corporate relation maintain a special price for its corporate customers under some

conditions as the contractual agreement containing.


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Corporate Clients:

Corporate clients get 7% price discount, credit facility & product delivery services.


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4.1 Overview of Distribution Channel

Place includes company activities that make the product available to target customers.

Emerald Oil Industries Ltd. distributes the product to the user at the right place at the

right time by establishing a strong dealer network. Emerald Oil Industries Ltd. has Sole

agent at six division of country who distribute the product to distributors. Sales

representative are scattered around the market to direct contact with retailer and

customers. However, this company tries to available its product every nearest local shop

to or target customer through following way-

Figure- Distribution Channel

4.2 Distribution system of Emerald Oil Industries Ltd.Emerald Oil Industries Ltd. is maintaining a strong distribution network in the country to

make available its product to every nearest local shop and target customer. Highly

experienced distributors and engaged for distributing various products throughout the

country. Marketing department is monitoring and supervising their sales representative,

sole agent, dealer and retailer to reach our product to the end customer so that people can

easily get our product.

Emerald Oil Industries Ltd. has already set up their distribution channel and they follow

level 3 distribution channels for ensuring the effective distribution of product for the

ultimate customer.

Manufacturer Sole Agent Distributor Retaile

Customer


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Figure: Diagram of Distribution System of Emerald Oil Industries Ltd.

4.3. Process

Distribution process that is to use the marketing channel for ensuring the effective

distribution of product for the ultimate customer. We can say that the way be which we

can give the product to the hand of ultimate customer. There is some level of marketingcontrol channels which are follows:

Emerald Oil Industries Ltd

Central Depotompany Distributor Area Depots

Whole Sellers

Retailers

Consumer


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0Level

1Level

2Level

3Level

Manufacturer

Customer

Manufacturer

Retailer

Customer

Customer

Manufacturer

Wholesaler

Retailer

CustomerManufacturer

RetaileristributorWholesaler


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5.1 Promotion

Promotion means activities that communicate the merits of the product and persuade

target customers to buy it.

Emerald Oil Industries Ltd. firmly believes that It is only when we aim for the Heaven;

we shall reach the stars, thats why Emerald Oil Industries Ltd. adopted a credible and

extensive promotional plan to run a thematic and aggressive promotional campaign.

According to promotional plan this company normally conducts following promotional

activities.

Emerald Oil Industries Ltd. adopts direct and indirect promotional activities

through following media like TV Channel, Newspaper, Bill boards, Posters,

Magazines, new plan upcoming for Web advertising etc to create and keep brand

awareness and to explore exciting ways to emphasize on hygienic service.

Sales promotion is crucial in attracting consumer. It can be of directly or via the

intermediaries. Emerald Oil Industries Ltd. contracted with third party named

DRIK (Advertizing agency) to conduct their print and electrical media compaign

on behalf of Emerald Oil Industries Ltd..

TV is more important for any company to reach our target market at the same time

to fulfill our objective. So Emerald Oil Industries Ltd. mainly uses this strong

media to promote their brands among consumer through peak our , off-peak or

advertisement. During special occasion like Eid, Pahala Falgun, Pahela Baishakh


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Emerald Oil Industries Ltd. arranges special musical program under the brand

name of Emerald Oil Industries Ltd. like Spondon Studio Concert at Channeli.

Most recently, at 14thFebruary on the occasion of Valentines Day, Emerald Oil

Industries Ltd. sponsored a program named Spondon Grand Music at NTVforits brand promotion.

To aware and educate the customers, Emerald Oil Industries Ltd. sponsored in

various events related to the product and its image through sponsoring different

sports event, arts, entertainment, exhibition, fair and festivals, cause-related

events. Most recently it sponsored Bijoy Mela at Shahid Darug Ali Park in

Sherpur for the reminiscence of the inspiration of our victory. And also, lately

Banglalink organized a 2 days music festival under the banner of Banglalink

Desh Music Festival at Fantasy Kingdom to help the flood victims.

In todays time, there are too many radio listeners. Radio channels are famous

media for entertainment. Considering this factor Emerald Oil Industries Ltd. is

planning a design to create awareness to target customer through using this media

like popular radio channels Radio Furti, Radio Tuday, and Radio 2 Fun etc.

5.2 Advertising :

Purpose :1. To create awareness among the people through brand marketing.

2. Through Billboard, TV, Emerald Oil Industries Ltd., Persuades people

to buy their oil.

5.3 Corporate client management

Basically Emerald Oil Industries Ltd. manages the demand supply of oils among the

corporate clients.


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Corporate clients of Emarald group :

1. The Pan Pacific Sonargaon, Dhaka.

2. Westin Hotels & Resorts.

3. The Peninsula Chittagong.4. Biman Bangladesh Airlines.

5. Lab-Aid

6. Apollo Hospitals, Dhaka.

7. Pizza Hut.

8. KFC

9. Mr. Baker

10. Mr. Baker Canadian Food Center

11. Golden Harvest

12. Coopers

13. Baton Rouge

14. Well Mart Super store.

15. White Hen

16. Koyla.

5.4 Corporate Clint management systems:

a) Credit facilities.

b) 7% commission per litre than marlcet price.

c) One year agreement to buy Spondon Rice Bran Oil for mandatory.

Advertising budget : Dimensions of Yearly advertising Cost :

i. Magazine = 6,00,000 (5 meganim)

ii. TV ad = 4,80,00000.

iii. Newspaper = 1,00,000 to more.

iv. Bill Board = City Corporation receives 25,00,000.

v. Cultural program = 30,00,000.


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5.5 Managing ordinary customers :

Advertising frequency :

o Per advertisement in TV 30 seconds.

o Monthly basis ads.

Advertising media management :

Media agency takes 7% commission.

Event marking (sponsorship) :

1. Fashion show organized by prothona 2011.

2. Spondon rondhon shoili on RTV.

3. Grand Music at Sherpur stadium organized by Sherpur Police.

4. Sponsors NTV Grand Music.

5.6 Advertising Media :

1. ATN Bangla.

2. RTV.

3. Bangla Vision.

4. News Paper.

5.7 Monthly Cost Advertising in RTV

Tk. (In Word) Four Lac Ninety Two Thousand Sixty Five only

Date Bill No.

19.01.12 NG-NSO-RTV


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Particular Period Time Spot

Location

Spot

Duration

Rate Per

min.

Rate Per

spot

Airing Spot Total

(Tk.)

Pick

Before

Drama/News

30 Second

5500 2750 71 Spot 2,03,50

Mid Break of

Drama News

7500 3750 56 Spot 2,10,00

Off

Pick

Before mid

break of

Drama

Bonus Bonus 130 Spot

260 Spot 4,13,50Add : 15% Vat on Tk. 4,13,500 62,025

Total 47,525

Less 3% Atton T/C 413500 12,405

Sub Total 4,63,12

Add: 7% Agency commission on 413500 28,985

Grand Total 4,92,06


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6.1 Presentation of Data

1. You are getting the desired quality for the given price:

# Total No. of respondents = 49

Yes = 26=53%

No = 23=47%

Findings :The survey shows that 53%of the buyer said that Emerald Oil Industries Ltd.

is providing the desired quality for the given price, while 47%disagreed.

2. Emerald Oil Industries Ltd. is making enough advertisements to promote its brand

image:

# Total no. of respondents = 45

Yes = 27=60%

No = 18 = 40%

53%

47% YesNo


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Findings: The survey shows that 60%of the buyer said that Emerald Oil Industries Ltd.

is making enough advertisements to promote its brand image while 40%disagreed with

is statement.

Findings: The survey shows that 63% of the buyers said that price of Emerald Oil

Industries Ltd. is reasonable in comparison with other competitive brands while 37%disagreed.

63%

37% Ye

s

No

3. Price of Emerald Oil Industries Ltd. is reasonable in comparison with

competitive brands:


Yes = 30=63%

No = 17 = 37%


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5. Which cooking oil brand do you buy monthly?


Rupchanda = 59%

Nurjahan = 15%

Fresh = 10%

White Gold = 15%

Shwarna = 10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Spondon White Gold Shwarna

Series 1

Series 1

0%

10%

20%

30%

40%

50%

60%

Rupchanda Nurjahan Fresh Dada Muskan

Series1

5. Which cooking oil brand do you buy monthly?# Total no. of respondents = 39

Rupchanda = 59%Nurjahan = 15%Fresh = 10%

4. Which of the following marketing strategies do you think Emerald Oil

Industries Ltd. should Change?

# No. of respondents = 46

Product = 28%

Price = 20%

Findings:The survey shows that 52%of the buyers said that price of Emerald OilIndustries Ltd. should change product strategy while 37% suggested that it should

change its pricing strategy and 11% suggested change of distribution or placing

strategy.

Place = 6%Advertisement and promotion = 46%


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Findings:The survey shows that 75%of the buyers buy Spondon oil, 15%of the buyers

buy White Gold oil, 10%of the buyers buy Shwarna oil.

6. Do you want any discount?# Total no. of respondents = 48

Cash Discount = 41%

Quantity Discount = 31%

No Discount = 27%

Findings: The survey shows that 41% of the buyers want cash discount, 31% of the

buyers want Quantity discount,27%of the buyers want Quantity discount.


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7.1 Problems

Product quality of Spondon Rice Bran Oil is not upto the expectation or desire

of customers.

Responsibility of pricing of Spondon Rice Bran Oil is also debatable that is

price is not in harmony with quality.

Advertisement and sales promotion is not sufficient. An important portion of

customers claim that Spondon Rice Bran Oil is not making enough

advertisement and sales promotion.

Overall marketing practices of Spondon Rice Bran Oil are not good enough to

fit competition.

Spondon Rice Bran Oil is not successful in retailing customers.


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8.1 Recommendations

Spondon Rice Bran Oil should ensure better quality to satisfy and

retain current customer base.

It should ensure reasonable price considering quality and competition.

Overall marketing practices should be improved.

It should increase advertisement and promotion in such way that it

increases companys customer base.

It should revise it loyalty programme and provide more benefit to the

corporate client.

Assessment and evaluation of marketing practices should be made on

regular basis and revised.

8.2 Conclusion

Emerald Oil Industries Ltd. is a new comer in the Oil market in Bangladesh but

they have experience in their other business sectors. Emerald Group of Companies

a leading corporate house in business arena in Bangladesh. They try to contribute

our county GDP by serving their group of industries. Emerald Oil Industries Ltd. is

one of them.


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Emerald Oil Industries Ltd. needs to conduct more marketing research to find out

the actual market position. Customers or end users are the main strength for any

company, so company need to evaluate the customer response about their product.

Then company can adopt the appropriate marketing strategies. As the tea market is

becoming competitive day-by-day, company needs to take challenging strategies to

gain competitive advantage.

Based on the study few possible recommendations have been made for the

betterment of the company. If these recommendations can be followed it can be

expected that in future all plans are successfully run and they will reach their

targeted position.

In this report I confess that mistakes may take place in my report because of

various limitations and also my limited knowledge. But I have tried to my best to

avoid or minimize mistake in my report. I have presented situation analysis, market

summary, market share analysis, demand, supply & gap analysis, feasibility test,

monthly consumption pattern, SWOT analysis, marketing strategy, Marketing

Practices, promotion, marketing expected budget, sales forecast and many other

things.

I think my included tools and suggestion will be to increase the profitability of the

company. If any producer of edible oil wants to capture the whole market then they

should understand the consumers demand


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Bibliography

Company profile of Emerald Group of Industries.

Kotler, Philip, Marketing Management, Prentice Hall of India, 11 th

edition, 1998, pp 541, 473

Principles of Marketing by Philip Kotler

www.google.com

www.googlescholar.com

Companys statistical data
http://www.google.com/http://www.google.com/http://www.googlescholar.com/http://www.googlescholar.com/http://www.googlescholar.com/http://www.google.com/

Internship report on Emerald Oil Industries Ltd.

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