Marketing Plan

of

Sulphur 90% 2012

ACI Fertilizer ACI Limited ACI Centre

245 , Tejgaon I/A

Dhaka -1208 , Bangladesh

Tel: 9885694

TABLE OF CONTENTS SL NO Particulars Page No

1.0 Executive Summary

01

2.0 Product Information

02

3.0 Crop Information

03-04

4.0 Sulphur Status

05-06

5.0 Market Analysis

07-08

6.0 Competition Analysis

08-11

7.0 Product Positioning

11

8.0 Pricing

11

9.0 Communication Strategy

12

10.0 SWOT

13

11.0 Target Market

13

12.0 Strategy

13

13.0 Objectives

13

14.0 Sales Projection

14-16

15.0 GP Analysis

17

16.0 Conclusion

17

1.0 Executive Summary: Bangladesh is highly populated country. Its population is increasing day by day. So, crop

production is very much important for Bangladesh as because of food security. Sulphur is an

essential plant nutrient that is of particular importance to crops production. Sulphur deficiency is

common in soils and is increasing. Sulphur deficiency symptoms vary between crops. Symptoms

of sulphur deficiency in crops include leaf cupping, purling undeveloped pods. Fertilizers that

supply sulphur in the sulphate form are immediately available to crops. Elemental sulphur

fertilizers must be surface applied where they can be oxidized to plant available SO4-S. Depending

on soil type and environmental conditions, this conversion can take from less than a year to more

than two years. Sulphur 90% is a very useful fertilizer in soil treatment for our agriculture.

Sulphur 90% demand is very high. So ACI Fertilizer has a great opportunity to lead the market by

the product. Our target is to sale Sulphur 90% more than 400 MT & 32 mio for 2012 which is

growth 250% and market share 80%.

2.0 Product Information:

Brand Name : Bumper Sulphur 90% Pack Size : 1000 gm Formulation : Sulphur 90% is granular form mainly produced. Active Ingredient : Sulphur – 90% Bentonite – 10%

Carrier Materials

Total Sulphur content, percent by weight, Minimum : 90.0 Bentonite, percent by weight, Maximum : 10.0 Cadmium, percent by weight, Maximum : 0.02 mg/kg Lead (Maximum) : 1.3 mg/kg Arsenic (Maximum) : 0.005mg/kg Other properties : Not combustible Type : Fertilizer

Dose:

Name of Crops Dose

Rice, Wheat ,Potato, Pulses, Jute, Cotton, Vegetables, Maize, Mustard, Sunflower, Tobacco, Nut, Onion

3-5 kg/Acre; 8.5kh/Hactre

NB: The doses can be change due to lacking of sulphur in soil. Origin : Saudi Arabia Usefulness: It helps to make Chlorophyll formation It helps to supply protein and minerals for crops It helps to make Amino Acid Sulphur is taken up by plants as Sulphate ion (SO4), which is reduced in the plant and used

in the formation of amino acids, proteins.

Deficiency Symptoms of Sulphur in Crops:

Stunted, thin spindly plants. Slow growth and delay maturity. Initial light green of leaves progressing to yellow leaves and in severe cases, the whole

plant becomes yellowish. Crops may lose their natural colors.

Packing Specification for Sulphur 90%:

Brand Name : Bumper Sulphur 90%.

Packing Materials : 1 kg pack supplied in poly pack.

Product Packing : Ploy Pack Outer Carton : 20 Pcs in a Tube Bag Re- launching Time : February 2012

3.0 Crop Statistics:

3.1 Crop Statistics of Bangladesh:

Oil Crops, 7.38, 4% Pulses, 7.03, 4%

Jute, 4.80, 3%

Spices, 4.99, 3%

Sugarcane,

1.59, 1%

Vegetables, 7.55,

4%

Fruits, 6.00, 4%

Others, 1.00, 1%

Potato, 4.80, 3%

Maize, 2.40, 1%

Wheat, 4.15, 2%Rice, 119.50, 70%

Source: DAE

Crop Statistics :

Crops Name Acreage Mio Hec %

Rice 11.95 70

Vegetables 0.75 4 Potato 0.48 3

Pulse 0.71 4 Fruits 0.60 4

Oil Crops 0.74 4 Jute 0.48 3

Spices 0.50 3 Wheat 0.42 2

Maize 0.24 1 Sugarcane 0.16 1

Other 0.10 1

Total 17.119 100%

Rice is the main crop in Bangladesh covering the total cultivated land. So our main market is rice, potato, vegetables, fruits. Sub-market is maize, wheat, betel leaf, oil crops, flowers and other commercial cultivated crops.

Total Crop Acreage 17.119 Mio Hectare

Acreage: Lac Hectare

3.2 Crop Cycle:

Crop Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Rice (Boro) 118 118 118 118

Rice (Amon) 100 100 100 100

Maize (Rabi) 4.50 4.50 4.50

Maize (Kharif) 1.00 1.00 1.00

Wheat 10.00 10.00 10.00

Potato 11.00 11.00 11.00 11.00

Bettle Leaf 0.25 0.25 0.25

Tobacco 1.30 1.30 1.30 1.30

Water Melon 0.20 0.20 0.20

Chili 3.50 3.50 0.80 0.80 0.80 0.80 0.80 0.80 0.80 3.50 3.50 3.50

Pointed Gourd 0.25 0.25 0.25

Okra 0.50 0.50 0.50 0.50

Bitter Gourd 0.20 0.20 0.20 0.20 0.20 0.20 0.20

Brinjal 0.70 0.70 0.70 0.40 0.40 0.40 0.40 0.40 0.40 0.70 0.70 0.70

Couliflower 0.40 0.40 0.40

Cabbage 0.40 0.40 0.40

Carrot 0.05 0.05 0.05

Tomato 0.50 0.10 0.10 0.10 0.50 0.50

Cucumber 0.20 0.20 0.20 0.20 0.20 0.20

Bean 0.35 0.35 0.35 0.35

Snack Gourd 0.10 0.10 0.10

Mango 0.80 0.80 0.80

Pineapple 0.40 0.40 0.40 0.40 0.40 0.40

Banana 1.20 1.20 1.20 1.20 1.20 1.20

Papaya 0.50 0.50 0.50 0.50 0.50 0.50 0.50

Jujubi 0.10 0.10 0.10

Litchi 0.12 0.12 0.12

Lemon 0.05 0.05 0.05 0.05 0.05 0.05 0.05

Mustard (HYV) 10.00 10.00 10.00

Soyabean 1.20 1.20 1.20

Ginger 0.40 0.40 0.40 0.40 0.40

Turmeric 0.80 0.80 0.80 0.80 0.80

Garlic 1.20 1.20 1.20

Onion 2.50 2.50 1.00 1.00 1.00 2.50 2.50

Acreage 166 138 125 7 7 106 105 105 104 18 37 166

Acreage without

Rice, Wheat38 10 7 7 7 6 5 5 4 18 37 38

4.0 Sulphur Status: 4.1 Sulphur Status in Bangladesh Soil:

Status North Region South Region East Region

Low

Panchagarh, Dinajpur, Rangpur, Gaibandha,

Joypurhat, Bogra, Naogaon, Rajshahi and

Chapai Nawabgonj

Some Part of Chuadanga, Magura and Faridpur

Sherpur, Jamalpur, Gazipur, Tangail, Mymensingh, Moulvibazar, Comilla,

Laxmipur, Chandpur & Chittagong

Medium

Panchagarh, Thakurgaon, Kurigram,

Gaibandha, Bogra, Sirajgonj, Pabna,

Natore, Lalmonirhat

Jessore, Narail, Meherpur, Chuadanga, Jhenaidah, Sariatpur, Madaripur,

Faridpur, Rajbari, Kushtia

Jamalpur, Sherpur, Mymensingh, Netrokona, Kishorgonj, Narshingdi,

Manikgonj, Dhaka, Hobigonj, B-Baria, Comilla Chandpur, Laxmipur, Feni, Noakhali,

Chittagong

High

Khulna, Satkhira, Bagerhat, Pirozpur, Jhalokathi, Barguna,

Patuakhali, Bhola, Gopalgonj, Barisal

Sylhet, Sunamgonj, Tangail, Manikgonj, Dhaka,

Narshingdi, Narayongonj, Part of Laxmipur, Part of

Netrokona

4.2 Geographical status of Sulphur in Bangladesh:

5.0 Market Analysis:

5.1 Usages % of Sulphur in different main crops:

Crop Major used Used %

Paddy For Sulpher deficiency 85

Potato For Sulpher deficiency 4

Soil For Sulpher deficiency 5

Vegetables For Sulpher deficiency & Powdery Mildew 4

Others 2

Total 100

85% is used on paddy. So Paddy is our most important crop for sulphur market

5.2 Sulphur Treatment Situation

Hec in Mio

% of Total Acr

% of BPA

% of EPA

% of ATA

Vol in MT

Total Acre 17.119 145,000

Biological Potential Area 8.2 47.90 70,000

Economical potential Area 5.2 30.38 65.00 45,000

Actual potential Area 1.22 7.13 14.89 23.50 10,500

Basic Treated Area 0.3 1.76 3.71 5.78 24.75 2,600

Basis: Legend:

1. Data source: DAE BPA=Biologically Potential Area

2. Average use 8.65 Kg/Hectare EPA=Economically Potential Area

ATA=Actual Treated Area

BTA = Basic Treated Area

ATA = 0.3 Mio Ha; 2600 MT

which is 3.70% of BPA

& 5.80 % of EPA

BPA=8.2 Mio Ha; 70,000 MT

EPA=5.2 Mio Ha; 45,000MT

which is 65% of BPA

BTA = 0.3 Mio Ha; 2600 MT which is 24.75% of ATA, 5.78% of EPA & 3.71% of BPA

ATA= 1.22 Mio Ha; 10,500MT

which is 23.5% of EPA, 14.88% of BPA

5.3 Location wise Sulphur Market:

Area Volume Location

Rajshahi 1000 Putia, Poba, Nachol, Tanor, Taherpur, Bagmara, Ishardi, Bonpara

Bogra 1750 Noagoan, Nandigram, Mohadevpur, Kalai, Gabindaganj,

Ullahpara, Dupchachia, Adamdighi

Rangpur 700 Nilphamari, Rangpur, Pirganj, Sathibari, Prigacha, Kownia

Dinajpur 750 Fullbari, Ambari, Birampur, Ghoraghat, Dinajpur Sadar,

Thakurgoan Sadar, Pirgonj, Ranisankail

Kushtia 1200 Kushtia Sadar, Jhenaidah,Kaligonj, Coartchadpur, Kanipur,

Boalmari,Rajbari,

Zibonnagar, Chuadanga, Alamdanga, Maherpur

Jessore 2000 All over Jessore and Satkhira

Barisal 400 Barishal , Gopalgonj , Bhola

Dhaka 600 Munshiganj, Tangail, Norsingdi,Gajipur

Mymenshingh 1200 Jamalpur, Mymenshingh, Bokshigonj,Kisorgong

Comilla 600 Comillah Sadar, Lacsum, Chandina, Daudk andi ,all over Majde

Chittagong 300 Chakaria,Putia, Bashkhali, Mithaisora, Chitagonj Sadar

Total 10500

6.0 Competition Analysis:

6.1 Sulphur 90% Market by Volume Fig in MT

Company Average

Value /MT(Mio)

2008 2009 2010 2011 2012 2013 2014 2015

ACI Fertilizer

0.080 440 160 80 190 400 600 750 900

Intefa 0.060 46 38 28 25 40 45 50 55

Eon Agro 0.050 40 45 50 50 50 60 70 80

Map Agro 0.050 24 16 15 20 20 25 30 35

ICI Agri Care

0.050 0 0 0 20 25 30 35 40

Others 0.050 20 7 25 27 35 40 45 50

Tatal 570 266 198 332 570 800 980 1160

Sulphur 90% Sales Trend By Volume:

Figure in MT

Y2008 Y2009 Y2010 Y2011 Y2012 Y2013 Y2014 Y2015

Industry Size 570 266 198 332 570 800 980 1,160

ACI Sales 440 160 80 190 400 600 750 900

Eon Agro 40 45 50 50 50 60 70 80

Intefa 46 38 28 25 40 45 50 55

-53%

-26%

68%

72%

40%

23%

18%

-64%

-50%

138%

111%

50%

25%

20%

13%11%

0% 0% 20% 17% 14%

-17%-26%

-11%60%

13% 11% 10%-

200

400

600

800

1,000

1,200

1,400

Industry Size ACI Sales Eon Agro Intefa

% Indicates Volume Growth

Sulphur 90% Sales Trend By Value:

Figure in Mio

Y2008 Y2009 Y2010 Y2011 Y2012 Y2013 Y2014 Y2015

Industry Size 33 18 12 23 41 59 72 86

ACI Sales 26 12 6 15 32 48 60 72

Eon Agro 2 2.25 2.5 2.5 2.5 3 3.5 4

Intefa 2.3 1.9 1.4 1.5 2.6 2.93 3.25 3.58

-46%

-33%

96%

79%

43%

23%

19%

-53%

-53%

160%

111%

50%

25%

20%

13%11%

0% 0% 20% 17% 14%

-17%-26%

7%73%

13% 11% 10%-

10

20

30

40

50

60

70

80

90

100

Industry Size ACI Sales Eon Agro Intefa

% Indicates Value Growth

Market Share:

Sulphur 90 Market Share

ACI15.266%

Eon Agro2.5,11%

Intefa1.5,6%

Others3.8617%

2011Figure in Mio

Y2008 Y2009 Y2010 Y2011 Y2012 Y2013 Y2014 Y2015

ACI 81 70 50 66 78 82 83 84

Eon Agro 6 13 21 11 6 5 5 5

81

70

50

66

78 82 83 84

6

13

21

11 6 5 5 5

-

10

20

30

40

50

60

70

80

90 ACI Eon Agro

ACI

32,78%

Eon Agro

2.5,6%

Intefa

2.6,6%Others

4.110%

2012

Market Share of Sulphur 90%:

Square, 20, 4%

E-On, 15, 3%

Intefa, 25, 5%

Map, 15, 3%Semco, 10, 2%

Other, 15, 3%

ACI, 400, 80%

Compititors Market Share

Auto

11%

ACI Formu

5%

ACI Fertili

5%

Others

16%

Square

3%SAMP

1%

Corbel

2%

Padma

2%

Syngenta

47%

SPL

5%

Mcdonald

3%

Market Share of Sulphur 80%:

Source: DAE Market Size: 500 MT

7.0 Product Positioning:

1. Easy to apply

2. More Sulphur

3. Quickly degradable

8.0 Pricing:

Price of competitors:

Sulphur 90%:

Sl.No Company Name Brand Name Pack Size TP NSI Bonus MRP

1 ACI Bumper Sulphur 90% 1 KG 100 80 4:1 150

2 SK+F Sornali Sulpher 90% 1 KG 100 80 5% 150

3 Aama Green Care Yielder Plus 1 KG 95 75 6% 150

4 Map Map Sulphur 1 KG 100 90 5% 175

5 Intefa Somur 1 KG 90 60 5% 100

6 Semco Micro- Thail 1 KG 100 85 5:1 150

7 Zenitica Gategrow 1 KG 104 80 5:1, 5% 160

8 Sadik Sadik Sulpur 1 KG 120 95 5% 220

GP Analysis of Sulphur 90%:

Pack Size TP COGS GP GP%Cash

IncentiveNet GP%

1 kg 100.00 51.00 49.00 49.00 20.00 29.00

9.0 Communication Strategy:

To communicate in the field we follow the following strategy:

Main Strategy: To establish strong brand positioning through innovative & extensive

communication.

Sub Strategy: Our sub strategies are as below:

1) To replace Sulphur 80% market with Sulphur 90%

2) To grab the market share of Sulphur 90%

3) To buildup strong brand equity

Action Plan:

To achieve my strategies we have taken some category wise action plan. These are as

below:

Targeted Group Objectives Tools / Media

Distributor & Retailer Product positioning & rep lacement Excellent Coupon program with attractive gifts

Distributor & Retailer Product replacement Sulphur 90% benefits included festoon

Farmers Showing the efficacy of the

product on different crops Result Demonstration & Field Day

Farmers Brand awareness Promo Materials like – Mini Poster, Banner etc.

Selective Farmers,

Stockiest, Retailer

Product information &

technology transfer Train ing Program

Selective Farmers

& Retailers

Product information &

technology transfer Personal Communication

DAE Officials Product information DAE Meeting

Wholesaler & Retailer Increasing sales Cash Incentive, Gift (Bag, Pen, Notebook,

Calculator, T-Shirt)

Result Demonstration is the most effective communication where a farmer can see the difference of yield. Training

program for selective farmer, retailer and stockiest is important for g iving understanding to them about the importance of the

product in the crops. We have to give more concentration on Trade Promotion with selective BCIC Dealer, Stockiest and

retailers for selling the product by using the selling channel.

10. SWOT Analysis:

Strength:

Attractive packaging

Strong image of ACI brand

Strong distribution network

Cheaper RM source compare to 80WDG

Strong promotional campaign

Weakness:

Sales of other products may hamper for using the current resource in the field

It may be difficult to keep expected profit in the long term due to commodity product & high

operational cost

Opportunity:

Large market size

Unorganized competition

Non availability of quality products

Threat:

Easy entry

Price war among competition

11.0 Target Market:

We have focused to those farmers initially who are habituated to use quality full and easy use sulphur in

their land and seek more benefitted & updated product.

12.0 Strategy:

To replace sulphur 80% by Sulphur 90% & establish strong brand positioning through innovative & extensive communication among traders and farmers.

13.0 Objectives:

To grab the market share of Sulphur 80%

To replace & establish the product as an essential input of agriculture to the farmers for more

yield & more benefit

14.0 Sales Projection:

14.1 Sales Projection by Volume of Sulphur 90%: Fig. in MT

Vol

Gr%

Sh

%

Vol

Gr%

Sh

%

Vol

Gr%

Sh

%

Vol

Gr%

Sh

%

Total

Market500 150 *** 850 70 *** 1200 41 *** 1500 25 ***

ACI 400 196 80 700 75 82 1000 43 83 1300 30 87

20142013

Year

2012 2015

14.2 Sales Projection by Value of Sulphur 90%: Figure in Million

Val

Gr%

Sh

%

Val

Gr%

Sh

%

Val

Gr%

Sh

%

Val

Gr%

Sh

%

Total

Market40 186 *** 68 70 *** 96 41 *** 120 25 ***

ACI 32 239 80 56 75 82 80 43 83 104 30 87

20142013

Year

2012 2015

14.3 Month Wise Sales Projection 2012 & Targeted Crop:

Fig in MT

Month Yr: 2012 Target Crops

January 10.00Winter Vegetables + Potato + Oilseed + Mango + Wheat + Water

Melon + Other Fruits + Boro Rice + Maize + Chili

February 70.00Winter Vegetables + Potato + Oilseed + Mango + Wheat + Water

Melon + Other Fruits + Boro Rice + Chili

March 26.00

Boro Rice + Mango + Wheat + Water Melon + Pineapple + Banana +

Papaya + Chili + Maize + Pointed Gourd + Bitter Gourd + Brinjal +

Cucumber

1st Quarter 106.00 *

April 12.00Maize + Chili + Pointed Gourd + Okra + Bitter Gourd + Brinjal +

Cucumber + Pineapple + Banana + Papaya + Onion

May 12.00

Summer Vegetables (e.g. Brinjal, Pointed Gourd, Bitter Gourd, Okra) +

Mungbean + Maize + Chili + Tomato + Cucumber + Pineapple +

Banana + Papaya + Onion

June 60.00Chili + Okra + Bitter Gourd + Brinjal + Tomato + Cucumber +

Pineapple + Banana + Papaya

2nd Quarter 84.00

July 20.00Chili + Bitter Gourd + Brinjal + Cucumber + Bean + Tomato +

Pineapple + Banana + Papaya

August 22.00Chili + Bitter Gourd + Brinjal + Cucumber + Bean + Pineapple +

Banana + Papaya + Amon Rice

September 18.00Chili + Tomato + Couliflower + Cabbage + Bitter Gourd + Bean +

Amon Rice + Papaya

3rd Quarter 60.00

October 30.00 Potato + Couliflower + Cabbage + Chili + Jujubi + Amon Rice

November 50.00Potato + Maize + Chili + Couliflower + Cabbage + Carrot + Oilseed +

Jujubi + Wheat + Water Melon + Other Fruits

December 70.00Tomato + Couliflower + Cabbage + Potato + Maize + Oilseed + Mango

+ Wheat + Water Melon + Jujubi + Other Fruits + Boro Rice

4th Quarter 150.00

Total 400.00 14.4 Customer wise Sulphur 90% Sales plan by customer in 2012:

14.5 Area Wise Sales Projection 2012: Fig. in MT

15.0 GP Analysis of Sulphur 90%

Bumper Sulphur 90% (Powder/Granular) Projection : 400 MT

Sales at TP (Mio) 40.00

COGS (Mio) 20.40

GP 19.60

% of Sales 49.00

Stockiest Incentive (Mio) 8.00

% of Sales 20.00

Retailer Motivational Program (Mio) .00

% of Sales 0.00

FF Incentive ( Mio) .00

% of Sales 0.00

Total Business Promotion 8.00

% of Sales 20.00

GP after Promotion 11.60

% of Sales 29.00

Note

TP/kg 100.00 Tk.

COGS/kg 51.00 Tk.*Business Promotion is calculated as per Targeted Slab

16.0 Conclusion:

Sulphur 90% is very much appropriate to meet the demand of sulphur needs in plants. It provides immediate solutions for plant nutrition. It is very easy to handle and use. The product ha s a high potentiality in Bangladesh. So ACI has a great opportunity to do the business of the product.

Sulphur Strategy at a glance

Ma

rke

t A

na

lysi

sS

tra

teg

yO

bje

cti

ve

sB

usin

ess A

na

lysis

1. Market growth is 6% in 2011 over last year

2. Currently covered 1.67 Mio out of 6 Mio hector of potential land

3. More than 50 companies are in the market

4. Syngenta is the market leader with 52% market share

5. Sulphur 80% dominates the market

6. The market of Sulphur 80% is in maturity stage

7. The pesticide companies dominate the market

1. ACI Fertilizer has 6% market share

2. Portfolio growth is 40% in 2011 over last year

3. Top line Tk.70 million in 2011

4. Gross Profit 35% in 2011

5. Product differentiation

6. Good sourcing of the product

Replace Sulphur 80WDG by Bentonite Sulphur 90% which has higher efficacy, cost

benefit and easy application

(MA: 2,4,5,6; BA: 1, 2,6)

Emphasis on comparative result demonstration & personal communication

to grab the existing ready market

(MA: 1,2,4,5; BA: 1, 2,3,4)

Regular retailer training program to improve knowledge on the benefits of new

technology

(MA: 1,5,6; BA: 1,2,6)

Top line growth 40%

Gross profit 38% Market Share 8%Farmers

awareness increased by 80%

Surface coverage increased by 40%

Su

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ur

(De

f. Co

rrecto

r + F

un

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)