A product development

research on SHOB AEROSOL

Faculty: Md. Anwar Sadat Shimul (AwS)

Course Title: Introduction to Marketing

Course Number: MKT202

Section: 1

University: North South University

Semester: Spring Fall, 2013.

Group Members: Jobayer Bin Hasnat

ID: 1220494030

Md. Habibul Hasan Patwary

ID: 1221069030

Afnan Ahmed
ID: 1220496630

Khandokar Ashif uz Zaman

ID: 1210239030

Raian Ahmed Prantic

ID: 1320427030

Md. Wasif Alam

ID: 1220558030

Date of Submission: 4th January, 2014.

Introduction
Bangladesh is a place with high humidity levels due to its location under the equator, for which it
is a perfect breeding ground for mosquitos. There is a great demand for mosquito repellants here,
especially during the winter seasons, and the whole market is literally ruled by a few big
companies like ACI’s Aerosol, Square’s Xpel, Mortein’s Mosquito Repellent, etc.

These companies target their product to the general people, without any specific group in mind.
Sometimes, there are segmentations in their target markets which are usually based on the
product’s usage (behavioral segmentation) or where its customers are (geographical
segmentation). But these are with just minor changes in the product, like in its sizes or
sometimes in their product itself, like favored Aerosol, Odorless Aerosol, etc., which people of
other groups can easily buy as well. In a nutshell, there is no strong segmentation strategies
visible which makes much of a difference for the Aerosol products already in the market.

The Aerosol companies of the Bangladeshi market each own a significant aerosol-based
mosquito repellent market share, achieved by providing their products mostly through
wholesalers to ordinary retail stores. They each have a strong distribution strategy and their
product is available in almost all the locations. But, ACI is clearly the strongest one in the
market, as informed by some certain retailers upon research.

Strangely though, all these producers follow, more or less, similar marketing strategies. There is
little or no visible competition between them. The promotional strategies they use are mostly
remainders of their existence and sometimes use informative advertisements to introduce some
new features of their product, which is quite rare. And from what it seems, all the present
products in the market are in their early maturely stage with no or any significant growth in their
market share.

We believe, taking these generalized characteristics of the market into our favor and specializing
only for a specific group of customers, we can make our aerosol into a successful product and
achieve a significant untapped market share.

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Description of the Product
The name of the product will be “Shob Aerosol”. The strategy behind the name is mostly related
to the people whom we will be targeting. “Shob” is a Bangla word which means total or all. This
will have a positive impact on the customer’s mind as they might interpreted it as an “all-in-one
solution” to mosquito repellent. Also the later part of the name, Aerosol, will have to be
mentioned as these target market will mostly be of uneducated or mildly educated people. They
will not understand mosquito repellent or any other such explanations. Therefore, Aerosol is the
best option to go with, as a market giant (ACI) has already positioned itself with that name. So
every time people hear the name Aerosol, they will know it’s a mosquito repellent.

There will only be one type of this product with a suitable set of features that will be provide the
most convenient experience to our customers. Some of the features are like it will be made using
it will have a 250ml container, materials that doesn’t harm the human body, bio-plastic bottles
that will be easily disposable, a good quality repellent with a pleasant fragrance, etc.

It will be directly competing with its close substitutes, which are coils and some other
inexpensive aerosol-based mosquito repellents, for only a minor market segment at the beginning
of its business life cycle. The distribution & promotional strategies will also be made with means
that best suits their purpose of selling to our target customers. And the price tag will be
competitive, yet profitable when sold in mass numbers.

All these strategies and planning will be discussed in further details on the following pages under
appropriate titles.

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Segmentation, Targeting & Positioning
In the aerosol-based mosquito repellent market of Bangladesh, there is an ignored market
segment and that is the village or the rural people, or the lowest end of the social class people.
Due to the standardized nature of such aerosol product, companies such as ACI or Square, only
provide products that are meant for “everyone”. But we, on the other hand, will only be focusing
on a certain group of customers. Using a mixture of demographic segmentation (income level)
and psychographic segmentation (social class), we will divide up the market and choose the
segments with the lowest income and of the lower social classes.

Our aim is to do niche marketing by providing just one kind of budget product. Hence, we will
be targeting these people as our target market. Two major characteristics of these targeted
segments are that the people there will have low income, hence will want to buy low priced
product, but which will also have to be good and effective; and most importantly, they are mostly
using the traditional mosquito repellent coils which produce smokes that causes irritations, and
sometimes are also harmful to one’s health. These coils don’t have a long lasting product life,
lacks user-friendly use and is not portable at all. But still, they will be one of our close
competitors as our product will be an easy substitute to them.

So, among many of our goals, to position our product as a viable substitute to these coils is very
important. We would like to create an image in our target market’s mind that “Shob Aerosol” is
an absolute substitute for these coils and a much better choice. Basically, our aim is to win the
market share as well as the mind share of our target customers.

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Product Strategies
Core value: What our target market need is a good mosquito repellent which is not only
affordable but also available in their locality. And this is exactly what we are going to provide,
satisfying all the customers as much as possible.

Actual product: The core value by itself is not enough to get the attention of the prospective
consumers. So there must be sufficient planning regarding various aspects of the product in order
to effectively penetrate the market. The most common areas of consideration which we would
like to focus are:

Brand name: “Shob Aerosol”, which actually suits the target market as explained before.

Product quality: The existing mosquito repellents are similar and fairly effective. This means
the quality level of our product needs to be higher or equal in order to “earn” the conquered
market share. But will have to be made within the budget so that it doesn’t become too expensive
and ends up repelling the customers themselves.

Product features: The following are the few features we will be highlighting in our product that
will make “Shob Aerosol” an attractive choice to our targeted market:

1. Economic nature of our product. Our target market cannot or don’t want to afford the
existing mosquito repellents, so our inexpensive aerosol will provide them the means to satisfy
their needs.

2. Effective mosquito repellent in a mini container. We will be making our product in

250ml containers with fixed nozzles and an easy to use trigger system, perfect to hold in the
hands of an average man or woman.

3. The product container will be made from bio-plastic, which are eco-friendly and
stress resistant. It will be designed in such a way that it will emphasis on user friendliness,
portability, usability, and will ensure unhazardous situations.

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 4. The aerosol itself will be make from non-toxic natural materials, mostly a mixture of
peppermint; a natural mosquito repellent, and others to make it more effective and efficient to
kill mosquitos or repel them.

5. The aerosol will be liquid based so that only a little amount is used on every press, yet
provide the same effectiveness as other brands provide.

Design: The repellents will be sold in small bottled containers containing 250ml of the aerosol
and will be shaped in the simple traditional cylindrical shape so that it provides an easy grip. The
container will stand 15 centimeters tall and will have a horizontal diameter of 5.5 centimeters,
shorter than a 400ml Sprite plastic bottle by the “The CocaCola Company” but of the same
width. On the top of it will be a sealed trigger and a nozzle (strategically covered by the trigger
system to avoid misuse), also made from plastic which will be able to endure thousands of
continuous presses, giving the user an easy use of the product.

The plastics that will be used in the product’s construction will be bio-plastic mixed with a
formula that will also make the container strong and durable and will not be prone to leakage (a
major concern by the people found upon research).

The container will be painted with an elegant grass green over the clear plastic, mentally giving
the user a sense of health care or clinic and there will be a narrow transparent strip vertically on
its side to let the user know how much of the aerosol is left and when to get a new one; which
will be market by red at the bottom.

We prefer this strategy of making the product mainly because the small size will allow the user
to carry it with themselves in their bags, cars, etc. and also enable us to sell it at a lower price
than its competitors which makes it affordable and a better choice to our customers. This is
basically the initial design we have in mind, but some minor changes can be made later on, if
only necessary, as the design itself is quite versatile.

Packaging: There will be no specialized packaging for one single product. But for bulk buying,
it will be discussed under the distribution strategies for convenience as it will differ depending
on the means of distribution.

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Pricing Strategies
We will try to set the price based on the customer’s perception of the good. The production and
administrative costs will obviously play a role in determining the cost of the product, but it is the
customer’s perceived value that we will try to match when setting our target price.

“Shob Aerosol” will have the right combination of quality and price (good-value pricing) that
will help us to penetrate the market and earn the mind share we are hoping for. The price will be
low which will act as an incentive for our target market i.e. people of limited means. Since the
profit on marginal product will be very low as well, we will rely on volume driven business, that
is, our large number of sales will ensure our existence and survival in the market.

Based on the above theory and strategies, we are expecting the initial price of the product to be
50 taka (all expenses and profit margin included) and the market price to be 60 taka, which will
be imprinted on the skin of the product. We will divide up the remaining 10 taka between the
intermediates which will be explained under distribution strategies. This is just a preliminary
estimate based on what we have gathered talking with reverent parties, and we believe we will be
able to deliver our product within this estimation.

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Distribution Strategies
For our products, we will have to have a good distribution strategy so that it is available
whenever and wherever the consumer needs or wants our product. We will be using an ordinary
chain of distribution where we will provide the product to the customers through various
wholesalers and retailers throughout the segmented markets. Doing this we will significantly
decrease the pressure on our part and we will be able to concentrate on making the product as it
was meant to be.

After we have achieved the requited number of products based on orders, our transportation
system (the most viable method will be decided later on in accordance to the situations) will
deliver the product to the wholesalers scattered among the selected areas. And while distributing
them, we have to keep the channel behavior in check, so that there is no conflict among the
intermediaries and they get exactly what they have ordered.

Wholesalers: The first to get the product and to deliver it to the next intermediary is the
wholesalers. Our product category is mosquito repellent (aerosol based) and our target market is
the mildly educated or uneducated people in our country as specified earlier. We will select
wholesalers in some of the selective areas as it wouldn’t be wise to have a wide distribution in
the introduction stage. We will select just 100 areas and there will be an estimate of 500
wholesalers who will distribute our product to the retailers. We will sell 2500 taka per lot
(containing 50 cans each costing 50 taka) to the wholesalers in a large cardboard box packaging,
properly secured and strategically packed.

Transporting the product to these wholesalers can be easily outsourced. But we can also do it
ourselves, if the cost seems to be in our favor. If we do take on the transportation services, we
can do it by only road, piggybacking, fishybacking or trainshiping (whichever seems most
suitable based on the geographic segmentation) to deliver our product in time.

If the product is a success, in some remote places we plan to build warehouses to store our
product. It will act like a hub to ensure continuous flow of products to the distribution channels.
And from time to time, we will compensate the wholesalers with discounts and credit allowance
as it will be up to them to forward our product to the next chain in command.

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Retailers: They will get our product from the wholesalers and interact with the customers
directly. So, retailers will have more control in terms of customer relationship. We expect one
wholesaler to provide “Shob Aerosol” at least to 200 retailers. So, according our calculations,
approximately 100,000 retailers will get our product. The retailers will most probably buy a can
of “Shob Aerosol” from the wholesalers at the rate of 56 taka and sell at 60 taka. But that is not
up to us as the wholesaler may sell it to the retailers at whatever price he/she may see fit.

We have set the product MRP (maximum retail price) 60 taka, quite low compared to other
aerosol companies and enough to compete against the coils. As our target market is that of
people with low income, we expect to get a good response from the wholesaler, retailers, and as
well as the customers.

Although, following this strategy will take the control out of our hands, and the customers might
not be getting the product like we wanted to. As a result, the company’s name might get
damaged. For which, we will be hiring some field officers who will keep the quality of our
product in check and see that the market price is maintained as imprinted.

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Promotion Strategies
To promote our product, we will be using the blend of traditional and unorthodox promotional
tools. In the business’s early stage, we will have to spend heavily on promotion, but just on the
sectors we will be targeting, to let people know about the new product. We don’t want to attract
the attention of the big companies by excessive promotions as we won’t be able to compete
against them at such an initial stage, and hence our strategy to do niche marketing or be the
market nichers.

Firstly, as we will be targeting a segment of the market, advertising in mass media like
newspapers, tv channels and radio would be unwise. And due to the characteristics of our market
segments, advertisements in internet would be out of the question. It doesn’t leave us with much
options to reach the consumers and the customers. But we believe that is a good thing.

Hence, we will go with printed advertising, mostly on large paper posters and water proof plastic
posters with attractive and informative texts along with pictures, which will be handed out to the
retailers or pasted over suitable places. We will also hand out the plastic posters to the local tea
stalls to hang over their walls. This will create awareness for our product in the mind of the
potential customers and hopefully position “Shob Aerosol”.

But gradually we will decrease our expenditure on such promotions and use it to give our
intermediaries more discounts and allowances. We will first try to win the wholesalers, retailers
and then ask them to convince the customers to buy our product; push strategy. Our dynamic
promotion strategies will make a clear impression in the mind of our target markets, and the
advertisements will convince the people that “Shob Aerosol” will solve all their mosquito
problems.

Good public relation is also essential for the survival of the company. We will spread our
officers and make them tell people or advertise about our product. We will even offer money
back guarantee to the customers if they think our aerosol isn’t better than the one they are
already using. Through these, we believe people in rural areas or people in such segments will be
convinced and hopefully, we will have a good work relationship with our customers.

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Competitive Advantage
To get away from irritations and to avoid diseases like malaria or dengue, “Shob Aerosol”
provides some extra ordinary advantages as a mosquito repellent.

 Fragrance: “Shob Aerosol” has a pleasant smell, and consumers do not need to leave their
room after spraying the aerosol. They can just stay put and do whatever they were doing.
 Water based: Increase the durability, so the aerosol will last longer, and also there will
not be any stains in your walls, souvenirs, etc. after every spray.
 The Trigger: “Shob aerosol” also has one feature called the Trigger. It allows you to
spray much easily and it is fixed with every 250ml container. So, you can spray more
conveniently and safely.
 Shob nozzle: This nozzle is something made to let you spray at places where it is hard to
spray. Mosquitoes do not only live or breed in large places but also where it is hard to
reach. Like the trigger, it is fixed with the each and every bottle unlike its competitors.
 Upon research, we found out that there isn’t much direct competition at this price, but
some indirect competitions like coils are there. To compete against them, our product will
be sold at very low prices as we will be going for minimum profit margin to gain the
market share and the mind share.
 Our product is not harmful to the human body as they are mostly made from natural
ingredient. Even the container will be made from bio-plastic which is eco-friendly.
 “Shob aerosols” are portable and its size is convenient. Anyone can take it anywhere.
 And if customers do not like our product, they can return it with their money return to
them right away. Complete money back guarantee.

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Conclusion
“Shob Aerosol” has a lot of potential to succeed if proper fund is available for the product’s
development and marketing. It has an untapped market in Bangladesh and the sooner it is dealt
with, the better. Because such markets doesn’t take long to be captured by other competitors. But
on the other hand, in businesses there are a lot of variability. Anything can happen and can make
the product unsuccessful. So it needs to be monitored carefully and any if change are needed to
suit the market’s environments, needs, or if there are any unexpected factors, then proper
decisions need to be made and initiated with precision.

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