Factors Affecting on Promotional Mix Strategy: A Study on ... · Factors Affecting on ... promotional mix (PM), influential factors (IF), mix strategy (MS), industrial buyers

© 2018. Abdulla Al-Towfiq Hasan. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/), permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Global Journal of Management and Business Research: E Marketing Volume 18 Issue 4 Version 1.0 Year 2018 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals

Online ISSN: 2249-4588 & Print ISSN: 0975-5853

Factors Affecting on Promotional Mix Strategy: A Study on Unique Cement Industries Limited

By Abdulla Al-Towfiq Hasan Z. H. Sikder University of Science & Technology

Abstract- Promotional mix is the good combination of Advertising, sales promotion, personal selling, public relation and direct marketing. And these tools are used co-coordinately to attract customers to sell products in a competitive market. Cement companies in Bangladesh use Promotional mix strategies to stimulate customers and industrial Buyers. There is very few studies have been done on “promotional mix strategy of cement industries”. In the systematic review of literature there will be discussed about, what is promotional mix, what is called promotional mix strategy, reasons and importance for using promotional mix strategy in Cement companies in our country, why promotional mix strategies are necessary, use of depth interview, and conceptual frame work and potentiality of future research.

Keywords: promotional mix (PM), influential factors (IF), mix strategy (MS), industrial buyers, mix strategies.

GJMBR-E Classification: JEL Code: M30

FactorsAffectingonPromotionalMixStrategyAStudyonUniqueCementIndustriesLimited

Strictly as per the compliance and regulations of:


Abdulla Al-Towfiq Hasan

Abstract- Promotional mix is the good combination of Advertising, sales promotion, personal selling, public relation and direct marketing. And these tools are used co-coordinately to attract customers to sell products in a competitive market. Cement companies in Bangladesh use Promotional mix strategies to stimulate customers and industrial Buyers. There is very few studies have been done on “promotional mix strategy of cement industries”. In the systematic review of literature there will be discussed about, what is promotional mix, what is called promotional mix strategy, reasons and importance for using promotional mix strategy in Cement companies in our country, why promotional mix strategies are necessary, use of depth interview, and conceptual frame work and potentiality of future research. Keywords: promotional mix (PM), influential factors (IF), mix strategy (MS), industrial buyers, mix strategies.

I. Introduction

or the study, author took an opportunity to work with the topic of ‘‘factors affecting on promotional mix strategy: A Study on Unique Cement

Industries Ltd.’’ Simply Promotional mix strategy is an approach to achieving the objectives of marketing campaign, though a well coordination of different promotional tools. The success of an organization depends on balanced promotional mix strategy. The factors of promotional mix strategy such as advertising, Personal selling, Direct marketing, Interactive marketing, publicity and public relation, Brand equity etc. plays important roles in acquire customer and satisfy customer . Author has studied three months on Unique Cement Industries Ltd. which brand name is called Fresh cement in Dhaka region, which helped a lot to understand the real-life situation of Cement Industry and marketing strategy of established cement company. Author observes customers mentality and customer’s needs and want and that influence on promotional tools that affects customer’s purchase behavior in a great deal. Author also visits different construction area and meeting with contractors who makes building and roads by using cement. Premier cement is a leading manufacturer of cement in Bangladesh. The products are providing strength and durability to buildings of soaring dimensions, in infrastructure that speeds the lines of commerce, and for housing that provides Author: Lecturer, Department of Business Administration, Z. H. Sikder University of Science & Technology, Bangladesh. e-mail: [email protected]

comfort and security to families across Bangladesh. Bangladesh is a developing country and cement industry could be very prospective sector. But for some reasons and problem in communication for that reasons this industry becoming saturated day by day. So the main concentration of this study is Promotional mix Strategy of Cement Industry in Bangladesh. For this study author select Dhaka region because the most marketing activities of cement industry run in Dhaka region and Dhaka region is most competitive cement market in Bangladesh.

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II. Conceptual Framework

Figure: Effective Promotion and high profits

III. Literature Review

a) Introduction Promotional mix is the part and parcel of

business to attract customers and sell products to their customers in very much competitive market (Frain, 2006). So, the use of promotional mix for companies has been being challenging day by day to attract customers in great scale. And use of promotional mix gains some positive returns to its own company (Williams, 2014). Shaw (2007) reviewed that promotional mix strategy highly affects company’s success factors when market is highly saturated. Kotler (2014) argued that the main focal point and main focal interests of this study is to identify how different promotional mix’s tools

are used for different products and different companies by their nature and systematic application of promotional mix to carry more and more market share competing with competitors. Best (2010) said that there has been studied on the effects of promotional mix strategies on mobile operators, industrial goods producers, and Different cement companies that shows that use of promotional mix in specific product category improves product attraction in competitive market (Eunice, 2006). But, in use of promotion strategically is dependent on some criteria of products and nature of industry. Kotler (2014) reviewed that first, nature of products is very much important for using which promotional tools are applicable or not. For example; when industrial products are promoted then personal

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selling, corporate advertising, and public relations are very much important. On the other hand, Aluko (2012) found that when consumer products are promoted, then advertising, sales promotion is very much effective. Second, company budget is very much influential to choose which promotional tools are to be used. For example; in the case of big company, adverting, corporate advertising and public relations are highly effective. But, on the other hand, Crimp (2005) found that when company is small and capital investment is low then sales promotion, publicity, personal selling are highly effective. In searching some studies there are found some positive contributions of promotional mix strategies that contribute 70 percent plus more profits after using promotional tools strategically by Unique Cement Mills Ltd and 60 % more sales by Holcim BD Ltd. This study is done by personal interview, corporate personnel asking questions, going through different article to know about their past studies about this topic on different companies and different products. “Promotional mix strategy: A Study on Unique Cement Industries Ltd.”

b) Review of Literature in a Systematic Way The main systematic review of literature consists

of different publications of articles that are directly or indirectly related to the study topic. Only relevant sources are included and all manifests of information are not counted to consider as a study sources. So, there are some review methods that help to conduct study with high quality data and high speed of data collection. These are given to below.

Exploratory research: There are found few specific publications on the “Factors influencing the promotional mix strategy of cement”.

The key words are used to easily communicate with other researchers and potential researchers to know the meaning easily. These key words are included in Bangladeshi Cement companies, promotional mix, influential factors, and mix strategy.

There are 750 articles are reviewed (by title and abstract) according to three categories such as journal quality, article published (before 2005 publication is rejected) and publications type (Books reviewed are accepted). Based on these criteria 700 articles are excluded and only 50 articles are accepted for next stage of proceed.

Most authors don’t agree on the 50 articles to be selected for judgment whether FI is strong influences on PM. so, there are 13 articles are rejected and 37 articles are accepted to assess and work on review of literature. 37 articles are used to find out the following questions that are- How BdCC is defined in literature? What are roles for Promotional mix? What are the factors that influence promotional mix? Why promotional mix is necessary for cement companies? How nature of company and product affects PM? What are

consequences of PM are mentioned? What remedies of Cost to promote cement in Market?

c) Bangladeshi Cement Companies There are different cement companies in

Bangladesh that works for decades. These companies’ name is given to the bellow according to their ranking in cement industry. o Unique Cement Industries Ltd. (Fresh Cement) o Heidelberg Cement (Ruby) o Meghna Cement Mills (Bashundhara Group) o Holcim BD Ltd o Seven Circles Cement Ltd o Unique Cement Ltd o M.I Cement Factory o Lafarge Cement (BD) o Premier Cement Mills Ltd o Akij Cement Ltd

d) Background of Cement Industries in Bangladesh Adebisi (2006) found that Cement industries are

established more than fifty years ago in our country. But, recently development of this industry is becoming boom for last few decades because of highly industrialization. And Bangladesh has been developed industrially for last one decade that’s why last five years cement consumption has been increased more and more. Bangladesh government permitted national production of cement in 1995 fiscal year. Zhang, T. & Zhang D. (2007) argued that in the very much inception of cement industry in

Bangladesh there was not any analysis of demand and supply of the cement need for future consumption. But, now a day cement industry is becoming more and more profitable and for these reasons cement companies are analyzing future demand and current demand to know about the actual and potential usage of cement in our country. And for this supply and demand analysis cement industry has been interested in promotional activities of cement industry in a great scale. Now Zhang, T. & Zhang D. (2007) argued that in our country there are 123 companies are listed as cement manufacturers and among them 63 have actual production capacity and 32 are in operation. The current installed capacity of the industry is 20.0mn MT.

e) Current scenario of cement industry in Bangladesh In our country there are some multinational and

national companies facing intensive competition with local companies (Ross, 2011). Lafarge, CEMEX, Holcim are top most companies in the world. But, in our country there is only 27% contribution of multinational cement companies and rest of the portion is come from national cement companies in a great scale. There is a big cement company named scan cement that has only 9.3 % contribution of total cement consumption in our country. Adeniyi (2009) Indicated that second large

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company is Holcim Cement Company that has 6.4% market share in our country. Lafarge and CEMEX cement companies are also struggling to be top in our cement industry for last decades.

Wuyts, S., Stremersch, S., Van den Bulte, C. & Franses, P. H. (2008) defined that Local companies are struggling in our country more and more to maintain backward linkages with production facilities for cost minimization and more promotional activities to gain success in a competitive market in a larger scale. Local cement companies now are focusing on quality of cement and promotional activities more than multinational companies. On the other hand, Zhang, T. & Zhang D. (2007) argued that multinational companies concentrate on only high products quality rather than products cost consideration. And local companies also offer quality products with additional services such as home delivery system, rebate, gifts, etc. Mecnaghan, T (2011) reviewed that multinational cement companies are focusing on only catering specific group of customer by charging high price, on the other hand, local cement companies try to use economies of scale to produce more products and sell them to customers in convenient way to more and more per unit cost minimization like Tiger cement, Premier cement etc.

f) Promotional Mix Defined Promotional mix is the combination of

promotional vehicles to promote companies products and services to customers. Borden, Neil H & M. V. Marshall (2009) found that PM is the combination of promotional elements that help cement company’s sales boost up in a competitive market on a great scale. Promotional tools ultimately gain the marketing objectives by selling products more and more to customers by convincing and giving them time oriented offers (Schewe, 2007). So, promotional mix is the combination of five vehicles that’s given to below.

Advertising: Illinois Anderson F. et al (1992) argued that Advertising is used for pull strategy for products sold pulled by customers by seeing products features and qualities trough non-personal presentation by identified sponsor in a specific competitive market in a great scale. Rasmussen et al (2007) indicated that through the advertising products are presented to the customers through non-personal presentation by identified sponsor.

Personal Selling: Bennet (2005) said that Personal selling is making personal relationship with customers to make known customers about products and services offered by companies. Aleck P.L and Settle G.L (1985) found that Personal selling is called push promotion strategy to sell products through the middlemen to customers. Sales Promotion: Sales promotion is called short-term incentives for more products sold to customers for specified period (Cotton, 2008). Sales promotion is

actually used to give customers incentives to purchase same products more than before.

Public Relations and Publicity: When products are gone after maturity stage, then public reactions and publicity is used with very much effectively (Fischer, 2005). When at least minimum customers know about the products name and brand name then actually public relation is used. It consists of newsletters, leaflets, corporate advertising etc.

Direct Marketing: Keegan (2009) agreed that direct marketing is called one to one marketing and it is more CRM centric marketing orientation. Through displays ads, email, interactive customer-centric websites, catalogs, online displays ads are used for direct marketing.

g) Roles of Promotional Mix Kotler (2010) said that Customers are the king

of the market. So, if customers don’t know about the products and services, then no business can survive in today’s competitive marketplace. So, effective communication is very much important with customers that are called promotion to customers. Kotler (2010) said that there is to use promotional mix that helps the companies to make aware of customers about their products and services. There are some other importances of the promotional mix that are given to below.

Keegan (2009) agreed that Promotional mix helps to make products or services together to provide products and service to customers according to customers’ needs and interests.

Magid (2010) found that for Promotional mix implementation first is to decide what the target audiences are and how target audiences are captured through using of what kinds of promotional vehicles. Different vehicles are used for different products and different stage of products life cycle.

Kivuva (2005) found that to make aware about customers, there is need message to deliver to customers about products and services. So, there is need to know what message is useful for specific situations that are known from usages of promotional mix elements in very much competitive market.

Magid (2010) found that for national companies and international companies and for multinational companies there are different budgets to spend on promotion. So, promotional mix helps to decide what messages and vehicles are used to deliver information and offers to customers. If budget is high then advertising, corporate advertising, public relations are used. On the other hand if budget is small then personal selling, sales promotion, leaflets and some other low-cost vehicles are used very much (Cotton, 2008).

Through the use of promotional mix vehicles, there is possible to know about the audience’s responses in greater scale (Kotler, 2011).

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h) Factors Influencing Promotional Mix There are some factors that affect promotional

mix in the competitive market that’s given to below.

i. Push and Pull Promotional Strategies When a company wants to sell products though

middleman and give incentives to middleman for selling products more and more called push promotion strategy. For example, Cement Companies in the very beginning in our country used to sell products through only middleman two decades ago. Here personal selling and sales promotions are given more than that of other elements of promotional mix (Kotler, 2011).

Ndambuki (2009) indicated that on the other hand when customers are made aware about the products through advertising and made them influenced to purchase particular products is called pull promotion strategy. Here advertising is the most vital part of promotional mix elements. For example, consumer’s goods are sold through the pull promotional strategies more and more.

In the below there is given both figure of push and pull promotion strategies with very much effective way that’s are

Figure: Push and Pull Promotion Strategies

Now a day, maximum companies use both push and pull promotion strategies to combat the competitors in a given market and in competitive way to gain success in grate scale. For example, most of the Bangladeshi cement companies now use both push and pull promotional strategies.

ii. Product’s Features Promotional mix depends on the products

feature and nature of product nature and feature in competitive market. Crimp (2005) found that when products are industrial products, then personal selling, sales promotion, public relation, etc are very much important to attract and retain customers. For example, cement can be used as industrial products. So, for the case of cement industry personal selling, sales promotion etc is highly applicable.

Rasmussen, Andrea, Carolyn Ude, and Edward Landry (2007) indicated that on the other hand if products are consumer goods then, advertising, sales promotion, discounts, and other promotional strategies are more effective than personal selling. For example;

Unilever sells its products through advertising and discounts more and more in the competitive market

iii. Product Life Cycle Stages By product life cycle, promotional tools are

used differently that’s given to below.

Figure: Product life cycle stage (source: Kotler, 2011)

Introduction Stage: when products are launched, then advertising is necessary to make known about marketed new products and services in a great scale. It is the first

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stages of products life cycle and there is little profit and little sales are made (Kotler, 2011).

Growth Stage: After introduction products start to grow and customers start to purchase little and little. In this stage, sales promotions are done to make sales boost up in the competitive market. It is very crucial stage to gain more and more profits in the competitive market environment (Kotler, 2011).

Maturity Stage: It is the larger stage in the product life cycle; most of the products that we use come from maturity stages. In the maturity stages, there are used more and more public relations, publicity, corporate advertising to remind about products and services in the competitive market (Kotler, 2011).

Decline Stage: When products are becoming diminished, then it is called decline stage in the competitive market. In this stage, sales promotion and little advertising is used to restart the products from declining and attract customers to gain profits more and more in competitive market (Kotler, 2011).

iv. Buyer Readiness Stage Magid (2010) found that when customers know

about products and service, then customers purchase products by evaluating among alternative products. So, in what stages buyer is right now is called the buyer readiness stage in the competitive market in great scale. For example, when customers are unaware about products then, advertising is applicable. And when, customers knows something about company’s products and customers are bragging about products price then, sales promotion strategies are very much important.

v. Types of Buyers Kivuva (2005) found that by buyers promotional

mix strategies are different in the competitive market environment. When customers are business buyers, then personal selling, public relations, publicity are very much effective than advertising. On the other hand, when customers are consumers then advertising is essential and personal products demonstration is also essential in the competitive market environment to sustain and get profits in long run.

vi. Nature of Distribution When products are distributed intensively then,

customer’s goods and industrial goods are distributed through the advertising more and more. Aluko (2012) suggested that on the other hand, when selective distribution is done then, personal selling, and public relations are used more and more in the competitive market situation.

vii. Nature of Company Objectives Aluko (2012) suggested that if company wants

to sell products in short-term then products use personal selling, sales promotions to sell products in the competitive market environment. On the other hand, if company wants long-term benefits from promotional mix

then company uses advertising, corporate advertising, publicity etc.

viii. Complexity of Products When, products usages are more complex to

use, then personal demonstration is very much essential. Aluko (2012) suggested that in this case personal selling is more important than advertising and sale promotion. On the other hand, when products usages is very much easy, then products are advertised and customers are attracted to purchase products in the competitive market environment.

ix. Purchase Frequency and Quantity Ray (2012) found that when products are

purchased more and more, then these products are advertised through TV, Radio, etc to attract customers in great scale. And when, products are purchased very rare then, personal selling and sales promotion is preferred. For example; in the case of luxury products and cement, personal selling, and sales promotion are very much essential than advertising in the competitive market environment.

x. Characteristics of Customers Ndambuki (2009) indicated that by customer’s

characters such as age, gender, sex, education, languages, promotional mix are selected. For example, in the case of high educated society corporate advertising is used. On the other hand, in the low educated society direct products advertising is used more and more in the competitive market environment.

xi. Level of Competition By competitor’s promotional strategies, a

company takes strategies to capture and retain customers in the competitive market environment in a great scale. When, competitors use advertising more and more then, a company also uses advertising to counter competitor’s strategy (Kotler, 2011).

xii. Type of Market Promotion mix depends by market. There are

different types of markets that are given to below. Pure Competition Market: when, a company starts business in the perfectly competitive market, then that company is to follow competitive promotion strategy such as giving more and more advertising, personal selling and public relations are very much essential to sustain in the market (Kotler, 2011). The Oligopolistic Market: In the case of the oligopolistic market there are few sellers and huge buyers. So, there is relatively low expenditure on promotion and here is to give little advertising and in this case, sales promotion is more and more prevalent to capture higher market share (Kotler, 2011). Pure Monopoly Market: Ray (2012) reviewed that in the case of monopoly Market Company normally don’t give advertising to sell their products rather than company use personal selling in the forms of buzz market, and

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word of mouth influence to capture more and more customers and market share in the competitive market.

xiii. Price of Products Magid (2010) found that when, product’s price

is larger than other competitors in the competitive market, then company is to promote its products in all medium such as advertising, sale promotion, personal selling corporate advertising etc to make aware customers about the products and capture more and more market share by making product differentiation relative to competitors. That’s means when promotion cost is high then ultimately products price is becoming high. On the other hand, when a company wants to make low price relative to other companies then, company doesn’t use advertising, rather use personal selling and sales promotion to make products more attractive to customers relative to competitors.

xiv. Cost of Media Different media has different cost for companies

to advertise their products in the competitive market. Berkowitz et al (2007) found that When, a company has huge budget to promote its products then this company use advertising, corporate advertising, social advertising. On the other hand, when a company has little budget to promote its products then, this company use only sales promotion and trade promotion and personal selling to convince resellers to purchase more and more products in the competitive market.

xv. Level of Market Penetration When a company wants to penetrate into the

market very short time, then company is to give promotion about its products over advertising to make customers more aware about its products. On the other hand, when, a company wants slow penetration into the market, then a company only use personal selling to company’s middlemen to customers. For example, cement companies in the very beginning in our country used to promote only through the middlemen, but now promote both advertising and personal selling to capture market more rapidly (Stanton, 2014).

xvi. Degree of Product Differentiation

Ondiri (2008) agreed that Product differentiation comes through promotion strategies. When a company uses more than one channel of promotional strategy then products are better known to customers than single promotion strategy usages. In this case company uses advertising, sales promotion, public relations etc. On the other hand, where there is little products differentiation, then there is more applicable personal selling, especially trade promotion, sales promotion, and use of buzz marketing.

xvii. Availability of Funds of the Company

By company fund, promotion strategy differs in great scale. When, a company has huge fund then, company uses advertising to make customers aware

about products. On the other hand when, company has little money then company normally gives personal selling and sales promotion such as trade promotion, discounts etc (Stanton, 2014).

xviii. Use of Marketing Channel Ray (2012) reviewed that by use of marketing

channel usages, promotion mix depends. When, a company uses only sales personnel to sell products to customers then company is to use personal selling. On the other hand, when a company wants to contact with customers directly or indirectly, then that company uses advertising, sales promotion, and public relation etc.

i) Necessity of Promotional Mix for Cement Companies Cement companies are not only selling

consumer goods but also selling cement to other industries for further production of other substances in our country as well in the world. Ndambuki (2009) indicated that cement companies don’t follow only the consumer goods promotional strategy rather it follows industrial goods promotional strategies.

Ndambuki (2009) indicated that a Cement company in our county is becoming more prevalent nowadays because of industrial and infrastructure development in our country for last five years very much. For this high need of cement in our country, there is emerged more and more cement factories in competitive market very much. That’s why Ndambuki (2009) indicated that promotional activities and competition among the cement companies are growing more and more in a good manner. Now competitions are not only among the companies but also among the different company’s promotional tools (Fischer, 2005). And for these reasons wise use of promotional mix is very much important in our country and the world.

j) Nature of Companies and Products Affecting PM Ondiri (2008) agreed that According to the

nature of company and nature of products promotional vehicles are determined. For example, when there are large cement companies then there is used more and more advertising; corporate advertising, public relations etc are used. On the other hand, Ray (2012) said that when company is small, then sales promotion, publicity, direct marketing are used most. Berkowitz et all (2007) found that when industrial products are sold then, personal selling, and sales promotion is used more and more. On the other hand, when consumer goods are sold then advertising, sales promotion are used more and more in the competitive market in a greater scale.

k) Consequences of PM Mentioned Ray (2012) found that Promotional mix is used

to increase sales and aware of customers about products and services to customers in cement companies in Bangladesh. When promotional mix is sued by any company then this company gets some benefits from competitive market that is given to below.

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Ray (2012) found that Co-ordination of promotion is possible, through the use of perfectly promotional mix strategies for Easy understanding of customers and market to capture in a very efficiently (Stanton, 2014). And when cement companies use promotional mix then it can easily identify target market and target audience (Fischer, 2005).

Through the use of PM, targeted customers are treated differently according its individual needs and wants. Cement companies can customize their offers to satisfy their customers and make them loyal to companies (Stanton, 2014).

Ray (2012) reviewed that Sales boost up is done through the use of planned promotional mix vehicles. Cement companies use planned promotional mix vehicles according to their company’s budget and target.

l) Remedies of Cost for promotion of cement in Market Stanton F. et all (2014) said that Cement

companies are now competing with each other. So, to sustain in market there is need to be planned promotional mix vehicles usages and proper measurement of vehicles cost to promote company’s products and services to customers. PM saves Cement Company’s cost of promotion in some ways that’s given to below.

Stanton F. et all (2014) said that use of vehicles of PM according to the company’s budget and capacity makes company more profitable and attractive to customers.

Promotional costs can be easily budgeted and reinforced to save miss match costs of promotion.

Ray (2012) reviewed that through the use of PM, person to person communication is possible. So, there is no need to mass marketing and mass promotion if need.

Customization is very much effective and possible through using of promotional mix strategies. Customization always saves cost of promotion to customers by delivering products and services according to customers’ needs (Stanton, 2014).

When PM is used, then single promotional vehicle can be used according to customer’s nature and company nature. So, costs can be reduced easily.

IV. Problem Definition

There are many factors which Influence Promotional Mix Strategy of Cement Industry in Bangladesh. In this study, author has tried to found which factors are most effective in Influencing Promotional mix strategy. This study shows the factors of influencing Promotional mix Strategy.

a) Background of the Problem Bangladesh is a developing country and

cement industries of Bangladesh could be a very prospective sector. The success of this industry

depends on Promotional mix strategy. In Cement industry influencing mason is important because they spread brand name by word mouth communication. To communicate with them is quite difficult because most of them are poor and illiterate. On the other side in Cement Industry influence engineer also need. They are highly educated and opinion leader in cement industry. For influencing them company use many promotional tools factors such as personal selling, advertising, sales promotion direct marketing etc. There are so many factors which influencing Promotional mix strategies to attract mason, engineers, and investors so on. In this report author tried to find out that factors that influence them.

b) Statement of the Problem The main problem of the study is to identify

“Promotional mix strategy: A Study on Unique Cement Industries Ltd”. This study is a requirement of the knowledge dissemination among the learners of marketing as well as owner of business organizations. Cement industry is one of the most competitive industries in our country. Many Cement companies fail due to failing of selecting effective Promotional mix strategies. Author tried best for identify factors Influencing Promotional mix Strategy of Cement Industry in Bangladesh and try to give some suggestions for making promotional mix strategies more effectively. Author used latest data, information, research study experience and survey to identify those factors.

c) Origin of the report This study is the accomplishment of the author

to disseminate marketing knowledge among marketing students and owner who are interested in marketing knowledge of business organizations. Unique Cement Industries Ltd, a cistern concern of Meghna Group. The author researched the study by survey.

d) Scope of the Report

This report renders a close analytical look at the cement sector of Bangladesh with identifying factors which influencing Promotional mix strategy practiced in overall Cement industry as well as the organization of concentration also will be covered in this report. And finally after the drawbacks, this report will propose some suggestion for more effective Promotional mix strategies for the organization Unique Cement Industries Ltd.

e) Report Objectives

The objectives of the report are divided into two parts; broader objectives and specific objectives. These are:

i. Broader Objective

Identification of Factors that Influence Promotional mix strategy of cement Industry in Bangladesh.

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ii. Specific Objectives

o To know insights about Promotional mix strategies and its application in a company.

o To know the effectiveness of promotional mix strategy tools in Business.

o To know about competitive environment for cement company.

o To know the promotion strategy of Cement Industry in Bangladesh.

o To prepare a report based on research experience that author gain.

o To describe the procedure of managing promotional tools.

o To identify reasons of failing Marketing Communications.

o To identify solution of failing Marketing Communications.

o To know the promotional mix of the company. o To know the process of maintaining

communications in market. o To know about Cement industry in Bangladesh. o To gain knowledge about distribution network of

Cement industry. o To know marketing strategy of famous company. o To identify the problems of selecting promotional

tools of Unique Cement Industry Ltd. o To make some recommendations to overcome the

problems.

V. Research Design

A research design is the "blue print" of the study. A detailed outline of how an investigation will take place. A research design will typically include how data is to be collected, what instruments will be employed, how the instruments will be used and the intended means for analyzing data collected.

a) Types of Research Design There are several types of research for

conducting research. The main types are exploratory, descriptive and casual research.

Among that author selected Qualitative/ exploratory research for conducting research about factors influencing promotional mix strategies in Bangladeshi cement companies based on unique cement limited (fresh Cement). Exploratory research is research conducted for a problem that has not been clearly defined. It often occurs before we know enough to make conceptual distinctions or to posit an explanatory relationship. Exploratory research helps determine the best research design, data-collection method and selection of subjects.

b) Data Collection For conducting report author used basically

questionnaire and collected data from survey. But for making report more meaningful author collected data

from both primary and secondary sources. Now discuss about sources and collected of data

i. Primary Source of Data Primary data is raw fact which collected for a

specific topic in just now. For conducting author research effectively, author collected data by personal survey in construction area with constructors and investors, and land owner who want to build their home about factors influencing promotional mix in the perspective of Unique Cement Industries (fresh Cement). Author also collected data from personal observation, and judgmental about Unique Cement Industries.

ii. Secondary Sources of Data Secondary indicates the data which collected

for another purpose and readily available now. For necessity of research author collect and use secondary data from secondary sources-annual report, prospectus websites and other.

c) Questionnaire Development and Pretesting Questionnaire is a set of questions for obtaining

statistically useful or personal information from individuals, a written or printed questionnaire often with spaces for answerers, a survey made by the use of a questionnaire. Questionnaire construction regards questionnaires. It is a series of questions asked to individuals to obtain statistically useful information about

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a given topic. When properly constructed and responsibly administered, questionnaires become a vital instrument by which statements can be made about specific groups, or people, or entire populations. Author use multiple choices questions, yes-no questions and open ended questions for knowing about insight of respondents.

d) Data Analysis Data analysis is the process of extracting,

compiling, and modeling raw data for purposes of obtaining constructive information that can be applied to formulating conclusions, predicting outcomes or supporting decisions in business, scientific and social science settings.

e) Data Presentation Data presentation is presenting data in table or

graphs, the creative researcher can increase the effectiveness of particular presentation. Charts, tables, and description of the data are used to know about the responses of respondents in detailed.

f) Fieldwork Author select total 50 respondents to collect

response from them. After then author started to collect data from them. It took several days to collect information from them. After collecting information from them author check validity and consistency of that information and finally author used it for research.

g) Sampling Technique Sampling is a process used in statistical

analysis in which a predetermined number of observations will be taken from a larger population. There are several types of sampling such as Random, Systematic, Convenience, Cluster, Stratified, Judgment etc.

For conducting this survey author used judgment sampling. Judgment sampling is a non-probability sampling method and it occurs when elements selected for the sample are chosen by the judgment of the researcher. Researchers often believe that they can obtain a representative sample by using a sound judgment, which will result in saving time and money.

The author conducted this survey on total 50 respondents and data analyzed by responses provided by total 50 respondents. Author given enough effort for collecting data and when respondent face any problem to fulfill questionnaire. For specifying opinion author use structured questionnaire. Sample Size

In this part of survey author select total 50 respondents. Author selects both male and female for running survey. o Male - 39 o Female - 11

Population A research population is generally a large

collection of individuals or objects that is the main focus of a scientific query. For this survey the populations are mason, engineers, investors, land owners and employees of Unique Cement Industries Ltd.

Location The survey was located Dhaka region in

Bangladesh. Author select Dhaka region for survey because author got opportunities to complete the study in Dhaka. The most activities run in Dhaka. Dhaka is a city where main marketing activities of any company occur. Author surveys Dhaka metro and it near area such as Purbachal new Town, Boshundhara Residential Area, Dhanmondi Residential Area etc. Author Selects sample from this area.

h) Limitation of the Study While working and preparing this report author

faced some limitations. These are: 1. Resources Constraint: Efforts have been made to

accomplish the project according to objectives. But topics information is not quite available; the sources of information are not available and as the study of financial limitation also exist. So, it was difficult to cover areas in detailed. Moreover there was constraint of other resources also.

2. Time Limitation: The type of study required a detailed interview of company employees, customers and retailers. Difficulty was faced in getting access to this different group people because of limited time. Because of Research is done within three months.

3. Manpower Limitation: Due to lack of adequate manpower it was difficult to work with large population and large sample. Because of limited manpower the author became unable to emphasis in detailed.

4. Limited Area: This research runs in only Dhaka city and its nearest area. Because of time and financial limitation author could not able to consider whole country. But because of geographical variance result can be some changed.

5. Other Limitations: Difficulty in having access of information and getting data because of company confidentiality since author worked there as an intern. There are lack of market data available (journal, publications, company magazines etc.) related to my topic regarding cement company.

VI. Company Overview

a) Parent Company Overview Meghna Group of Industries (MGI) is one of the

biggest and leading conglomerates of Bangladesh. With a turnover of USD 2 billion and asset of USD 1 billion,

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MGI is currently operating in 32 companies, 30 industries with more than 15000 employees, 3000 distributors and 1000 suppliers across the country. The history of Meghna Group of Industries dates back to 1976 when its predecessor Kamal Trading Company was born, the group‘s humble debut occurred with the inception of Meghna Vegetable Oil Industries Ltd. in 1989 on a small chunk of land at Meghnaghat in Narayanganj.(Company Website: www.meghnagroup.biz)

Now the group is running 30 industrial units on more than 350 acres of land. Meghna Group of Industries has been marketing cement, commodities, chemical, fish and poultry feeds, power plant, other bulk and industrial product under the brand name ‗Fresh‘, ‗Number One‘, and ‗Pure‘. The group also owns ship building dockyards, shipping company, securities, general insurance, media, aviation company and many other businesses, The group has more than 35 years of national and global experience. In Bangladesh, one in every three households use MGI brands and products, MGI has started to spread its footprints outside Bangladesh, especially in the Middle East, Southeast Asia, Europe, North and South America through exporting its various products(Company prospectus).

MGI has been very aggressive in its expansion plans and emerged as one of the largest investors in industrial development of Bangladesh. Meghna Group‘s presence in this ambitious business expansion plans is designed and driven by a visionary and very humble person Mr. Mostofa towards development of industrial, health, education ,sports, social welfare as well as various other sectors. His philanthropy, honesty, sincerity and dedication fetched the group today‘s lofty achievements. Meghna Group has already invested USD 1 billion for setting up new lines of business and great expansion programs such as chemical complex, power, salt, cement and media. Meghna group has contributed almost 75 million US Dollars as tax to the state exchequers in fiscal year 2012-2013. This is undoubtedly a glaring example of passionate initiative and a pioneer leadership role by a private sector investor in country‘s economic and industrial development. (Company Website: www.meghnagroup.biz) b) Company Overview

Unique cement Industries is a sister concern of Meghna Group of Industries. Meghna Group of Industries had ventured into cement business to contribute towards the economic growth of Bangladesh by providing consistent & best quality cement to the consumers. Since the beginning, the group has been continuously investing in the latest technology & continuously upgrading the existing manufacturing facilities to keep pace with the changing competitive environment, which makes them stand out of the crowd of the cement manufacturers in Bangladesh. As a result

of continuous efforts towards becoming the leader in the business, Meghna Group of Industries is the second largest cement producer in Bangladesh.

Plant Profile: The group started cement business with two closed-circuit ball mills. Subsequently the production capacity was boosted with addition of 3rd Chinese closed-circuit ball mill. Later on all the 3 manufacturing lines were upgraded with VEGA mill internals. The combined production capacity is 4000 TPD. The existing cement manufacturing capacity is 12000 TPD with the addition of the latest technology, state-of-the-art & the most energy efficient closed-circuit ball mill & polycom grinding facility from ThyssenKrupp, Germany. The two grinding circuits can be operated in single as well as in combi mode. The strength of the business is its technology very well supported by the committed team of professionals. The company is not only caters the domestic demand but also exports to neighboring countries.

c) Mission Unique cement industry ltd. aims to provide

good, quality full and cost-effective product to the people in Bangladesh.

o To participate the development of Bangladesh and try to increase the living standard of Bangladesh.

o Be recognized as an employer of first choice. o Selectively grow our presence in Bangladesh. o Long-term financial performance and to be the most

recommended investment opportunity in our industry. (Source: Company website)

d) Vision To be a leading provider in the cement industry

in Bangladesh with satisfied customers, shareholders and enthusiastic employees. (Source: Company website)

e) Objective & Strategies Good development, Good Business, Unique

cement industry ltd. its basic strategy distributes the cement both urban and rural areas. Provide the product to mass market is one of the UCIL‘s primary goals. On the other hand the company plans to achieve economic of scale and healthy profit. (Source: Company website)

f) Goals Continually set the highest standards of

customer satisfaction in our industry-through innovative products and services. Secure the strongest competitive position in our relevant market places through creative product design and operational excellence. (Source: Company website)

g) Uniqueness o Precise H&B and EEL electronic packers o One of the best quality control & quality assurance

facility o Pneumatic fly ash un-loading& conveying system

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o Automatic Barge Loaders and Independent storage facilities

o Brand Promise: Uncompromised quality, one could trust Sources blindly: www.meghnagroup.biz

h) Employees of Unique Cement Industry Ltd More than 600 skilled workers and casual

workers are employed to its force. Employees are distributed at different divisions as follows-

i) Business Partners

j) Position in the Life Cycle Stage Unique Cement Industries Limited is

established in 2001. So it is now in growth stage.

k) Brand and Brand Image of Unique Cement

Industries (UCIL) i. Brand Name of (UCIL)

ii. Brand Image of Unique Cement Industries

In the Cement Industries, Unique cement is most powerful Brand and the number two position in the Cement market. A good name can add greatly to a product‘s success. It should suggest something about the product‘s benefits and quality. It should be easy to pronounce, recognize and remember. In addition to design or a combination of these, that identifies the Market or seller of a product or service. Unique Cement is a product of Meghna Group of Industries, Fresh Brand.

l) The Concept of promotional mix strategy of Unique Cement Industries

Modern marketing calls for more than developing a good product, pricing it attractively and making it accessible. Companies must also communicate with present and potential stakeholders and the general public. Therefore, the question is not whether to communicate but rather what to say, how and when to say it, to whom, and how often. To effectively reach and influence target markets, marketers are creatively employing multiple forms of promotional mix to attract customers effectively. Before going to the analysis how Unique Cement Industries Limited deploying promotional mix strategy to develop their brand, the theoretical aspects of Promotional mix strategies.

m) Promotional Mix Strategy Development of UCIL There are certain steps for promotional mix

strategy development that firm follows. Unique Cement Industries These steps to develop effective communication are:

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Unique Cement Industries is preparing promotional mix; the marketers ‘first task is to identify the target audience and its characteristics. Next, the marketers’ must have to determine the promotional objectives and define the response sought, whether it is awareness, knowledge, liking, preference, conviction or purchase. Then, a massage should be constructed with an effective content and structure. Media must be selected, both the personal and non-personal communication. The marketers must find highly credible sources to deliver massages. Finally, the marketers must collect feedback by watching how much of the market becomes aware, tries the product, and is satisfied in the process.

n)

Current Promotional Tools of UCIL

To establish their brand Unique Cement Industries is currently

using some promotional mix. They are conducting few consumer promotions and few trade promotions. The activities that Unique Cement Industries has taken are following:

i.

Advertising

An identified sponsor defines advertising as any paid form of non-personal communication that says something about an organization, product, service or idea. Unique Cement Industries Ltd is used following tools for advertising.

Bill Board:

UCIL normally uses some billboards for their advertisement mainly. In various conspicuous places in the country eye-catching Bill Boards brandishing the name of the product are installed which have exceeded 50 in number.

Neon Sign:

In some important point‘s decorative neon-sign board are placed to attach public view.

Shop Sign:

The telling outlets are scattered all over the country. Shop sign with attractive painting of shop advertising Unique Cement Industries Limited is a common feature.

Conference and Meeting:

Meet of the construction engineers and also different parts of the country are held, assembled them in discussion meeting to inculcate in them the specialty of Unique Cement Industries Limited and having its high quality as construction material.

Newspaper Advertising: Besides some sporadic advertisement in printing media, paper ads are specially published in some special occasions such as Eid festival, Puja festival, Independence Day, Victory Day etc.

ii.

Sales Promotion

Sales promotion include consume

promotion and trade promotion. Unique Cement Industries follow these-

Consumer Promotion:

To promote sale the company has credit facilities for its distributors. Unique Cement Industries give short-term incentives (during the off-peak season) to their customers. They give a gold card on cement purchase where certain cash is given back to the customer from their purchase. Besides this the company also provides some gifts to its retailers and distributors. They also provides-

o

T-Shirt

o

Slip Pad

o

Pen

o

Cup-Price

o

Mug

o

Umbrella etc.

Trade Promotion: Unique Cement Industries provides certain benefits to its distributors and retailers. The Eid 2 Eid offer is basically for the retailers. They give coupons to its retailers and provide some incentives by their sales. Besides this the company arranges yearly conference with the dealer in a 5-star restaurant where special gift items is given to them with free vacation package or tour.

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Identify Target

Determine

Design

Select ChannelsCommunications

Objective

Audience

iii. Personal Selling It is a person to person communication in which

a seller attempts to assist and or persuade prospective buyers to purchase the company‘s products. This interaction gives the marketer communication flexibility: the seller can see and hear the potential buyers and modify the message accordingly. In corporate marketing it is use because the marketing people or concern person comes to interact with the corporate clients.

iv. Corporate Social Responsibility Every year, during the flood it helps the sufferer

by relief. It helps by supplying foods, pure water, money etc. In winter UCIL arrange collecting and delivering warm clothes for the poor people. Even during Sidr, UCIL team worked physically by going there, Manager of marketing and sales went there. They have supplied money, food, and drinking water to the supplier poor people.

v. Coloring It gives importance very much to their

distributors and retailers, even may be more than its end customers. It does coloring in the shop of the distributors or retailers in free of cost. The coloring content is mainly the logo of Fresh cement, the brand name-Fresh Cement‖ and the name of the shop or show room. Sometimes it colors inside the shop also.

vi. Publicity or Public Relations Unique Cement Industries expense a lot in

company publicity and public relations. For publicity they have company brochure, leaflet, banner, festoon etc. and they provide these to the cement shops all over the country. Also company has publications, community relations in the industry. In maintaining public relations company provides T-shirt, mug, dinner set, note book, calendar, slip pads, umbrella, shopping bags and other stuff to company publics. Company organizes mason meeting, dealer meeting, and engineer meeting in every month at different districts. Company arranges workshop on house building, other different programs that helps to increase the bondage within company various publics.

Development Activities: The Company has a development department. They are doing such type of activities which creating position image especially among the corporate market about the brand Unique Cement Industries Limited. They arrange seminar with engineers, consultants and developer in various places.

Participation in Various Fairs: Show-rooms are set-up in different fairs with posting representative to answer different quires of the intending customers.

Documentary Film Exhibition: Though renowned media agents documentary films featuring various aspects of Unique Cement Industries Limited are prepared and projection them in public gathering, meets and conference.

o) Identifying Competitors and Market Share of Unique Cement Industries Ltd

p) Quality Standards The quality of Fresh cement is tested by many

renowned organizations like BUET. It quality is high standards. For its quality the demand is increasing though UCL does not do marketing much which expensive like TV ad or sponsoring any festival or economy. Clinker is used more than 85% in the cement. At every step of its production the quality is maintained. There is a quality controller in production cell. He monitoring all-time for best quality. Quality is never compromised here. Even the delivery of cement to the buyers is maintained by a delivery in charge. So that, there is no complaint comes for delay delivery.

VII. Analysis of the Study Author have surveyed on 50 respondents by 25

questions on “Factors influencing promotional strategy on Bangladeshi cement company: A Study on Unique Cement Industries

a) Do you hear the name of Fresh Cement?

Figure 1

100%100%

Do you hear the name of Fresh Cement?

Survey Respondents

Answered the questions

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On the studied 100% respondents answered yes. And then they started the next question

sequentially. Respondents are selected those who know about fresh cement for study convenience.

b) Which Promotional tools used by Fresh cement Attracts You?

Figure 2

Among the 50 respondents only 82% respondents answered the question. (Fig-1)They mostly answered about advertising. Now I have shown the detailed answered of them

Advertising: 27% respondents answered about this tool are effective.

Sales Promotion: 15% people about this tool.

Public Relations: 20% respondents answered about this tool.

Publicity: 8% respondent answered that is effective.

Direct Marketing: 12% respondents answered this can be effective.

c) Which promotional tool is effective for customer awareness stage?

Figure 3

When I studied some respondents did not understand about the effect of customer answered for products, then I clarified it and out of 100% respondent 77% respondents answered that question. And the results (Fig-3) are given below.


Sales Promotion: 20% people answered about this tool.


Publicity: 4% respondent answered that is effective.


27%

15%20%

8%

12%

Promotional tools used by Fresh cement

Advertising:

Sales promotion

Public relations

Publicity

Direct marketing

37%

20%

10%

4% 6%

Advertising: Sales promotion

Public relations Publicity Direct marketing

0%5%

10%15%20%25%30%35%40%

Promotional tool is effective for customer awareness stage

Series1

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d) Which promotional tool is effective for customer Knowledge stage?

Figure 4

It is very interesting question for customers and most of the customers answered that question. Out of 100% respondents answered 100% respondents and the result (Fig-4) is given to below.




Publicity: 4% respondents answered that is effective.


e) Which promotional tool is effective for customer liking stage?

Figure 5

Customers get knowledge then they are being affectionate about the products. So customers liking depends on products features and products performance also. 90% respondents answered the questions out of 100% respondents and the result (Fig-5) is given to below.




Publicity: 4% respondents answered that is effective. Direct Marketing: 6% respondents answered this can be effective.


Public relations Publicity Direct

marketing

Series1 40% 16% 20% 4% 20%

40% 16% 20% 4% 20%0%

20%

40%

60%

80%

100%

Promotional tool is effective for customer Knowledge stage

Series1

20%

56%4% 4%

6%

10%

Promotional tool is effective for customer liking stage

Advertising: Sales promotion Public relations Publicity Direct marketing

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f) Which promotional tool is effective for customer preference stage?

Figure 6

This is very much crucial questions for the customers to answer because customers preference and customers choice is not permanent, it can be changed in nay time for any reasons. 100% respondents answered the question out of 100% respondents that results (Fig-6) are given to below.






g) Which promotional tool is effective for customer conviction stage?

Figure 7

At the very end of the customer’s purchase decision it works more and more effectively. So, here is the most critical decision customers takes in the competitive products offerings in the market. 100% respondents out of 100% answered the questions and these results ((Fig-7) are given to below.

Advertising: 34% respondents answered about this tool is effective.





26%

34%

10%

20%

10%

30%

Promotional tool is effective for customer preference stage

Advertising:

Sales promotion

Public relations

Publicity

Direct marketing

0% 10% 20% 30% 40%

Advertising:

Sales promotion

Public relations

Publicity

Direct marketing

34%

26%

20%

10%

10%


Public relations Publicity Direct

marketing

Promotional tool is effective for customer conviction stage

Series1

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h) Which promotional tool is effective for customer purchase stage?

Figure 8

At the time of purchase customers get the decisions. So customer’s convincing depends on store atmosphere and pre perception about the product. I have asked 100% respondents and they all answered this questions and the result (Fig-8) is given to below. Advertising: 16% respondents answered about this tool is effective.





i) Which promotional tool is effective in Market introduction stage?

Figure 9

In the very much beginning of the product customer’s knowledge is zero in this respect. So, customer’s knowledge making effort here is more effective. I studied on 100% respondents and answered these question only 90% respondents these results (Fig-9) are given to below.

Advertising: 70% respondents answered about this tool is effective.

Sales Promotion: 4% respondents answered about this tool.



Direct Marketing: 4% respondents answered this is effective.

16%

44%20%

10% 10%

Promotional tool is effective for customer purchase stage

Advertising: Sales promotion Public relations

Publicity Direct marketing

70%

4% 6% 6% 4%0%

10%20%30%40%50%60%70%80%

Advertising: Sales promotion Public relations Publicity Direct marketing

Promotional tool is effective in Market introduction stage

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j) Which promotional tool is effective in Growth stage?

Figure 10

After products come into market then products are becoming popular among the customers is called growth stage. On the study 100% respondents out of 100% answered (Fig-10) the question and answered are given to the below.






k) Which promotional tool is effective in maturity stage?

Figure 11

Customer’s purchase products when a product goes on the maturity stage. In this stage proportionately all tools are used. Studied on 100% respondents and they all answered the question. These results (Fig-11) are given to below.






10%

50%20%

10%

10%

Promotional tool is effective in Growth stage

Advertising:

Sales promotion

Public relations

Publicity

Direct marketing

20%

20%

20%

26%14%40%

Promotional tool is effective in maturity stage

Advertising:

Sales promotion

Public relations

Publicity

Direct marketing

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l) Which promotional tool is effective in decline stage?

Figure 12

When products are becoming declined from the market, then there are need some promotional tools that helps customers to purchase products and company making products. Studied on 100% respondents and 86% respondents answered the question. The results (Fig-12) of the question is given to the below.






m) Which consumer promotional tool is effective?

Figure 13

Consumer’s promotional tools affect company promotional strategy in a great scale. Studied on 100 respondents and them 92% answered the questions. And the results (Fig-13) are given to the below.

Discounts: 26% respondents answered this option.

Sampling: 22% respondents like that answered.

Coupon: 16% respondents answered this option.

Sweepstakes: 22% respondents answered this one.

Contests: 6% answered this option.

40%

20% 10%

6%

10%16%

Promotional tool is effective in decline stage

Advertising: Sales promotion Public relations

Publicity Direct marketing

26%

22%

16%

22%

6%

Discounts

Sampling

Coupon

Sweepstakes

Contests

0% 5% 10% 15% 20% 25% 30%

Consumer promotional tool is effective

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n) Which Trade promotional tools are effective?

Figure 14

Trade promotional tools are used for industrial products promotion. Studied on 100% respondents all respondents answered this question. And the results (Fig-14) are given to below.

Temporary Price Reductions (TPR): 20% respondents answered this option.

Rebates: 28% respondents like that answered. Coupon: 16% respondents answered this option.

Sweepstakes: 22% respondents answered this one. Contests: 6% answered this option.

Premium: 8% respondents answered this option.

o) Which content promotion tools is effective?

Figure 15

Media of promotion is very much influencing for customers. Studied on the 100% respondents and all answered the question. The results (Fig-15) are given to below.

Social Networks: 30% respondents answered this option.

Paid Promotion tools: 32% respondents like that answered.

Distribution Tools: 28% respondents answered this option.

Advocacy Tools: 10% respondents answered this one.

26%

22%

16%

22%

6%

8%

Trade promotional tools are effective

Temporary Price Reductions (TPR)

Rebates

Coupon

Sweepstakes

Contests

Premium

30%

32%

28%

10%

Content promotion tools is effective

Social networks

Paid promotion tools

Distribution tools

Advocacy tools

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p) Which pricing strategy is effective?

Figure 16

Customer’s purchases depend on some specific tools. Price is one of these tools that affect company’s promotional strategy. Studied on 100% respondents all respondents answered the question results (Fig-16) are given below.

Penetration Pricing: 30% respondents answered this option.

Skimming Pricing: 20% respondents like that answered.

Everyday Low Pricing: 28% respondents answered this option. Dynamic Pricing: 10% respondents answered this one.

Flat Rate Pricing: 12% respondents answered this option.

q) Which promotional strategy is effective?

Figure 17

For market access, there are different types of promotional strategy that helps to determine a company promotional mix strategy. Studied on 100% respondents and all answered the question. Results (Fig-17) are given to below.

Push Promotion: 34% respondents answered this option.

Pull Promotion: 66% respondents like that answered.

30%

20%

28%

10%

12%

0% 5% 10% 15% 20% 25% 30% 35%

Penetration pricing

Skimming pricing

Everyday low pricing

Dynamic pricing

Flat rate pricing

Penetration pricing

Skimming pricing

Everyday low pricing Dynamic pricing Flat rate pricing

Series1 30% 20% 28% 10% 12%

Pricing strategy is effective

Series1

34%

66%

Promotional strategy is effective

Push promotion

Pull promotion

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r) Which marketing strategy is effective?

Figure 18

Some factors that affects promotional strategy in the competitive market environment. Studied on 100% respondents and all answered the questions. These results (Fig-18) are given to below.

Undifferentiated: 34% respondents answered this option.

Differentiated: 66% respondents like that answered.

s) How types of buyers influence on promotional tools?

Figure 19

Studied on 100% respondents and answered (Fig-19) only 20% respondents. And most of the respondents answered about the complexity of buyer behavior. Most respondents indicated that industrial

buyers and ultimate buyer differ and their expectations are also different such as industrial buyer wants rebates and consumer buyers want sampling distribution.

t) How types of market affect promotional mix?

Figure 20

34% 66%66%

Marketing strategy is effective

Undifferentiated

Differentiated

100%

20%0%

20%

40%

60%

80%

100%

120%

Survey Respondents Answered the questions

Types of buyers influence on promotional tools

Series1

100%

38%

0%

20%

40%

60%

80%

100%

120%


Types of market affect promotional mix

Series1

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Studied on 100% respondents 38% answered the questions. And most of respondents answered (Fig-20) about the structure of market such as

monopolistic market, pure competitive market, pure monopoly market and oligopolistic market influences on promotional mix strategy.

u) How nature of product affects promotional mix?

Figure 21

Studied on 100% respondents, only 46% respondents answered this question. Most of the respondents (Fig-21) indicated that Products

promotional strategy depends on products nature such as perish ability, quality, and color of packages, terms and conditions of sales.

v) How level of competition affects promotional mix?

Figure 22

Only 66% respondents out of 100% respondents answered (Fig-22) this question. Most of the respondents indicated that company promotional strategy heavily affected by competitors used

promotional tools such as when competitors raise prices company raises prices and when company decreases also is to decreases price to sustain in the market.

w) How product differentiation affects promotional tools?

Figure 23

100%

46%

0% 20% 40% 60% 80% 100% 120%

Survey Respondents


Nature of product affects promotional mix

Series1

100%

66%

Level of competition affects promotional mix

Survey Respondents


100%

40%

Product differentiation affects promotional tools

Survey Respondents


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Studied on 100% respondents, only 40% respondents answered this question. Most of the respondents (Fig-23) indicated that unique selling

promotional tools affects company gain more success in the market such as home delivery facilities, coupon system, products return facilities etc.

x) How cost of media influence on selecting promotional tools?

Figure 24

Studied on 100% respondents, 90% respondents answered this question. Most of the respondents answered (Fig-24) that according to

company capacity promotional tools should be used and this can help for further company promotion.

y) How quality of products influence on promotional tools?

Figure 25

Studied on 100% respondents, 80% respondents answered this question. Most of the respondents (Fig-25) answered that quality is the most effective tools of promotion. When a customer’s purchased good quality products then she or he influenced others to purchase those products.

z) Findings of the Study

The main findings of this research are that Factors which influence Promotional mix strategy of Cement Industry in Bangladesh. After completing a comprehensive survey and study author enables to understand the factors which influence promotional mix strategy of Cement Industries. The survey`s major findings are given below:

i. Factors affecting on buyer readiness stage

According to the survey and study it is found that in the different stages of buyer readiness they are affected by different tools of promotion that’s are given to below.

1. Customer Awareness Stage: In customer awareness stages customers are more affected by the products advertisement, than other tools of promotion.

2. Customer Knowledge Stage: In customer knowledge stage, customers try to contract with companies. In this stage personal selling, direct marketing is very much effective.

3. Liking Stage: In the liking stage customers moderately determined about the products. So, in these stage public relations is more effective.

4. Customer Preference Stage: In the customer preference stage customers wants getting support about their perception of products. In this case word of mouth influence is more effective.

5.

Conviction Stage: This is called trial stage. So in this stage online product features and online advertisement is more effective.

Survey Respondents


80%90%

100%

100%

90%

Cost of media influence on selecting promotional tools

Series1

100%

80%


0%

20%

40%

60%

80%

100%

120%Quality of products influence on promotional tools

Series1

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6. Purchase Stage: In the last stage, customer’s ultimate decisions take in the shop. So, in this stage sales promotion is very much effective.

ii. Factors affecting of product life cycle stage In different stages of products introduction to

decline customers are affected by different promotional tools that are given to below.

1. Introduction Stage: On the introduction stages product advertisement is more effective than other tools.

2. Growth Stage: In growth sate sales promotion is more effective than other tools. Unique cement is now in growth stage. It uses Advertising and sales promotions more and more.

3. Maturity Stage: In the maturity stage public relations publicity is more effective.

4. Decline Stage: In the decline stage products advertising and limited sales promotion works very effectively.

iii. Push Promotional Strategy When products are unknown and very much

new in the market, then it is very more effective. And in the case of industrial goods it works well.

iv. Pull Promotional Strategy When products are little bit familiar then it is

effective. And in the case of consumer goods pull promotional strategy is very much effective. In the case of fresh cement pull promotion is more effective.

v. Undifferentiated Marketing If company was mass marketing then

advertising, public relations and publicity are more effective than other promotional tools.

vi. Differentiated Marketing When company wants to penetrate only one or

two markets then, sales promotion, personal selling and direct marketing is very much effective.

vii. Miscellaneous Factors By products quality, products nature,

promotional media, and level of competitions promotional tools vary.

1. Market Structure: In perfectly competition adverting is effective. On the other hand in the monopolistic and oligopolistic market personal selling is more effective than other tools.

2. Nature of Products: By products nature promotional tools vary such as for consumer products advertising is effective and for industrial goods sales promotion and personal selling is effective.

VIII. Recommendations

At present the Promotional mix strategy is playing a great role to increase the sales and to get the customer acceptance. Because the present media are

so much influential that it can easily influence the customers to purchase any product. So the company should emphasis on Promotional mix strategies and factors which influence it. Basing upon the survey result, here are some of the recommendation for marketing department of Unique Cement Industries Limited to making promotional mix strategy more effective:

Develop TV and Radio Ads: Though Unique Cement Industries is established company in cement industry but it has no TV and Radio ads. But competitors develop TV and Radio ads and take place in consumer mind. So Unique Cement Industries should TV and Radio as soon as possible.

Improve Pull Promotion: Cement is consumer goods. So, by customer’s expectations products are sold. So, company should more invest for the pull promotional factors rather than push promotional factors.

Emphasis on Online Marketing: Unique Cement Industries Limited should develop online selling system. Company should develop their page in social media such as Face book. It will help customer to know about Fresh Cement and spread brand image.

Increasing Number of Sales Centre: Sales Centre helps to know about the product and buy product in low-cost. So Customer come sales center to buy and know about product. But Unique Cement industries Limited have only one Sales Centre in Meghnaghat, Naraongonj. So it should establish sales center in Dhaka, Comilla and other locations.

Increasing Corporate Social Responsibilities: The corporate social responsibilities of Unique Cement Industries are not satisfied. It may do more CRS works like Tree plantation, giving scholarship to the poor students, giving compensation to mason who face accident

Increasing Commission for Executive Sales: Unique Cement Industries Limited should increase executive sales commission based on performance. The company should also provide increment and increase salary based on performance. So they try heartily to increase sales volume

Properly Aware Dealers and Customers about Sales Promotion: To give the end customer and dealer benefits the company should have to improve their current market communication so that the customers are aware of the cash discount offer and demand it to the retailers.

Develop Sales Promotional Tools: Sales promotion gets more customer attitude changed in the store and it is more effective for customer retention as well. Compared with other promotional tools it is very much lucrative to customers who physically purchase products. Improve Customer Awareness Vehicles: When customers are not cognizant about the products then no

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promotional tools and no products quality will be effective. So, promotional tools such as wall advertisement, news paper advertisement, and local leaf late advertisement will be very much effective in this case.

Create Customer Information Centre: Through the customer information centre customers can easily get information about products, and prices. So, it will be helpful for the company as well as for customers.

Appointing Customer Counselors in Big Cities: Sometimes customers don’t understand what they will do and they try to locate someone who can give him/her decision. In this case customer counselors play good roles to change motive of the customers.

Improve Distribution Facilities: Sometimes customers want that products should come in their home without any extra charge. So, distribution facilities work in two ways first it is one kind of promotion and another it is one kind of services.

Develop Discounts Plan for Customers: Discounts is very much effective for any company to sustain in the competitive market. Company should make a plan for the discounts all the year round and there should be big discounts for special events.

Involve in Public Relations and Publicity: Fresh cement somehow known to customers. So, it should go for public relations and publicity for retaining customers and attracting more customers.

Develop of Product Quality: Product is one kind of advertisement. So, product quality should be improved to sustain in the competitive market environment with coping with competitors.

Change Pricing Strategy: Fresh cement uses flat rate prices for everywhere in the country. But it should be changed. In the industrial area products rate should be low

than another area. And fresh cement should accept

dynamic pricing strategies and physical pricing strategy also.

Follow Differentiated Marketing Strategy: Fresh cement follows undifferentiated strategy to cover all over the country. But it should take differentiated marketing strategies that will help companies to get more profits in the competitive market environment.

Improve Social Marketing: Social media is now very much popular and all customers normally get information through social media. So, company should look at social networking development side.

Improve Products Packaging: Product’s packages are one kinds of advertisement. So, when customers look at the very lucrative packages then they may be more attractive to those products. So fresh cement company should improve packaging quality and packaging color also.

Increase Coloring: The Company should coloring dealers and retailers shop. By coloring, customer can know and remember brand name. The company should increase coloring.

Create Positive Word-of-Mouth Communication: The Company should encourage Mason to create positive word-of-mouth communication. The company should maintain good relation with engineer. Because they suggest customer to buy cement and if say good customer also say it good.

IX. Conclusion Promotional mix strategy influenced by

advertising, brand name, distribution facilities, sales promotions, pricing strategies, online marketing, quality, sales center etc. For making success on promotional mix strategy, marketing department of Unique Cement Industries should increase Advertisement quality, improve product quality, develop TV and Radio advertisement frequency, credit facilities, new efficiencies, channel cooperation and reduced competition because of an established powerful brand and influence customer purchase and create positive word-of-mouth communication. As such the cement market is becoming more and more complicated, creative and attractive promotional strategies are considered as the key to staying in the competition and for sustainable growth in this industry.

As Unique Cement Industries Limited is still growth stage in PLC in the industry and they are gaining the momentum day by day, so there is a good opportunity ahead for the company to establish their brand and become the ultimate choice for the customers though making good Promotional mix strategy.

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Factors Affecting on Promotional Mix Strategy: A Study on ... · Factors Affecting on ... promotional mix (PM), influential factors (IF), mix strategy (MS), industrial buyers