Marketing Plan of

Sulphur 90% 2012

ACI Fertilizer
ACI Limited
ACI Centre 245 , Tejgaon I/A Dhaka -1208 , Bangladesh Tel: 9885694

TABLE OF CONTENTS
SL NO
1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 Executive Summary Product Information Crop Information Sulphur Status Market Analysis Competition Analysis Product Positioning Pricing Communication Strategy SWOT Target Market Strategy Objectives Sales Projection GP Analysis Conclusion

Particulars

Page No
01 02 03-04 05-06 07-08 08-11 11 11 12 13 13 13 13 14-16 17 17

1.0

Executive Summary:

Bangladesh is highly populated country. Its population is increasing day by day. So, crop production is very much important for Bangladesh as because of food security. Sulphur is an essential plant nutrient that is of particular importance to crops production. Sulphur deficiency is common in soils and is increasing. Sulphur deficiency symptoms vary between crops. Symptoms of sulphur deficiency in crops include leaf cupping, purling undeveloped pods. Fertilizers that supply sulphur in the sulphate form are immediately available to crops. Elemental sulphur fertilizers must be surface applied where they can be oxidized to plant available SO4-S. Depending on soil type and environmental conditions, this conversion can take from less than a year to more than two years. Sulphur 90% is a very useful fertilizer in soil treatment for our agriculture. Sulphur 90% demand is very high. So ACI Fertilizer has a great opportunity to lead the market by the product. Our target is to sale Sulphur 90% more than 400 MT & 32 mio for 2012 which is growth 250% and market share 80%.

2.0 Product Information:

Brand Name : Bumper Sulphur 90% Pack Size : 1000 gm Formulation : Sulphur 90% is granular form mainly produced. Active Ingredient : Sulphur 90% Bentonite 10% Carrier Materials
Total Sulphur content, percent by weight, Minimum Bentonite, percent by weight, Maximum Cadmium, percent by weight, Maximum Lead (Maximum) Arsenic (Maximum) Other properties : 90.0 : 10.0 : 0.02 mg/kg : 1.3 mg/kg : 0.005mg/kg : Not combustible

Type Dose: Name of Crops

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

: Fertilizer Dose
3-5 kg/Acre; 8.5kh/Hactre

NB: The doses can be change due to lacking of sulphur in soil. Origin : Saudi Arabia

Usefulness: It helps to make Chlorophyll formation It helps to supply protein and minerals for crops It helps to make Amino Acid Sulphur is taken up by plants as Sulphate ion (SO4), which is reduced in the plant and used in the formation of amino acids, proteins.
Deficiency Symptoms of Sulphur in Crops:

Stunted, thin spindly plants. Slow growth and delay maturity. Initial light green of leaves progressing to yellow leaves and in severe cases, the whole plant becomes yellowish. Crops may lose their natural colors. Packing Specification for Sulphur 90%: Brand Name Packing Materials
Product Packing Outer Carton

: Bumper Sulphur 90%. : 1 kg pack supplied in poly pack.

: Ploy Pack : 20 Pcs in a Tube Bag : February 2012

Re- launching Time

3.0 Crop Statistics:

3.1 Crop Statistics of Bangladesh:
Acreage: Lac Hectare

Oil Crops, 7.38, 4% Vegetables, 7.55, 4% Jute, 4.80, 3% Sugarcane, 1.59, 1%

Pulses, 7.03, 4%

Spices, 4.99, 3%

Fruits, 6.00, 4% Others, 1.00, 1%

Potato, 4.80, 3% Maize, 2.40, 1% Wheat, 4.15, 2%

Total Crop Acreage 17.119 Mi o Hectare

Rice, 119.50, 70%

Source: DAE

Crop Statistics :
Crops Name Rice Vegetables Potato Pulse Fruits Oil Crops Jute Spices Wheat Maize Sugarcane Other Total Acreage Mio Hec 11.95 0.75 0.48 0.71 0.60 0.74 0.48 0.50 0.42 0.24 0.16 0.10 17.119 % 70 4 3 4 4 4 3 3 2 1 1 1 100%

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

3.2 Crop Cycle:

Crop Rice (Boro) Rice (Amon) Maize (Rabi) Maize (Kharif) Wheat Potato Bettle Leaf Tobacco Water Melon Chili Pointed Gourd Okra Bitter Gourd Brinjal Couliflower Cabbage Carrot Tomato Cucumber Bean Snack Gourd Mango Pineapple Banana Papaya Jujubi Litchi Lemon Mustard (HYV) Soyabean Ginger Turmeric Garlic Onion Acreage Acreage without Rice, Wheat Jan 118 4.50 1.00 10.00 11.00 1.30 0.20 3.50 10.00 11.00 0.25 1.30 0.20 3.50 0.25 0.25 1.30 0.80 0.25 0.20 0.70 0.80 0.25 0.50 0.20 0.40 0.80 0.25 0.50 0.20 0.40 0.80 0.50 0.20 0.40 0.80 0.50 0.20 0.40 0.80 0.80 3.50 3.50 1.30 0.20 3.50 11.00 1.00 1.00 10.00 11.00 Feb 118 Mar 118 100 100 100 100 4.50 4.50 Apr May Jun Jul Aug Sep Oct Nov Dec 118

0.70

0.70

0.20 0.40

0.20 0.40

0.70 0.40 0.40

0.05 0.50 0.20 0.20

0.10 0.20 0.10

0.10 0.20 0.10 0.40 1.20 0.50

0.10 0.20 0.35 0.10 0.40 1.20 0.50

0.70 0.40 0.40 0.05 0.50

0.70 0.40 0.40 0.05 0.50

0.20 0.35

0.35

0.35

0.80

0.80

0.80 0.40 1.20 0.50 0.12 0.05 1.20

0.40 1.20 0.50

0.40 1.20 0.50

0.40 1.20 0.50

0.50 0.10 0.10 0.10

0.12 10.00 1.20

0.12

0.05

0.05

0.05

0.05

0.05

0.05 10.00 10.00 0.40 0.80 1.20 2.50 166 38

1.20

0.40 0.80 1.20 2.50 166 38 2.50 138 10 125 7 1.00 7 7 1.00 7 7 1.00 106 6 105 5 105 5

0.40 0.80

0.40 0.80

0.40 0.80 1.20 2.50 37 37

104 4

18 18

4.0 Sulphur Status: 4.1 Sulphur Status in Bangladesh Soil:

Status North Region Panchagarh, Dinajpur, Rangpur, Gaibandha, Joypurhat, Bogra, Naogaon, Rajshahi and Chapai Nawabgonj South Region East Region Sherpur, Jamalpur, Gazipur, Tangail, Mymensingh, Moulvibazar, Comilla, Laxmipur, Chandpur & Chittagong Jamalpur, Sherpur, Mymensingh, Netrokona, Kishorgonj, Narshingdi, Manikgonj, Dhaka, Hobigonj, B-Baria, Comilla Chandpur, Laxmipur, Feni, Noakhali, Chittagong Sylhet, Sunamgonj, Tangail, Manikgonj, Dhaka, Narshingdi, Narayongonj, Part of Laxmipur, Part of Netrokona

Low

Some Part of Chuadanga, Magura and Faridpur

Medium

Panchagarh, Thakurgaon, Kurigram, Gaibandha, Bogra, Sirajgonj, Pabna, Natore, Lalmonirhat

Jessore, Narail, Meherpur, Chuadanga, Jhenaidah, Sariatpur, Madaripur, Faridpur, Rajbari, Kushtia

High

Khulna, Satkhira, Bagerhat, Pirozpur, Jhalokathi, Barguna, Patuakhali, Bhola, Gopalgonj, Barisal

4.2 Geographical status of Sulphur in Bangladesh:

5.0 Market Analysis: 5.1 Usages % of Sulphur in different main crops:

Crop
Paddy Potato Soil Vegetables Others Total

Major used
For Sulpher deficiency For Sulpher deficiency For Sulpher deficiency For Sulpher deficiency & Powdery Mildew

Used %
85 4 5 4 2 100

85% is used on paddy. So Paddy is our most important crop for sulphur market 5.2 Sulphur Treatment Situation
Hec in Mio Total Acre Biological Potential Area Economical potential Area Actual potential Area Basic Treated Area 17.119 8.2 5.2 1.22 0.3 47.90 30.38 7.13 1.76 65.00 14.89 3.71 23.50 5.78 24.75 % of Total Acr % of BPA % of EPA % of ATA Vol in MT 145,000 70,000 45,000 10,500 2,600

BPA=8.2 Mio Ha; 70,000 MT

EPA=5.2 Mio Ha; 45,000 MT which is 65% of BPA ATA= 1.22 Mi o Ha; 10,500MT which is 23.5% of EPA, 14.88% of BPA
BTAATA Mio Ha; 2600 MT 2600 MT = 0.3 = 0.3 Mio Ha; which is 3.70% of BPA which is 24.75% of ATA, 5.78% of EPA & 3.71% of BPA of EPA & 5.80 %

Basis:
1. Data source: DAE 2. Average use 8.65 Kg/Hectare

Legend:
BPA=Biologically Potential Area EPA=Economically Potential Area ATA=Actual Treated Area BTA = Basic Treated Area

5.3 Location wise Sulphur Market:

Area Volume Location

Rajshahi Bogra Rangpur Dinajpur Kushtia Jessore Barisal Dhaka Mymenshingh Comilla Chittagong

1000 1750 700 750 1200 2000 400 600 1200 600 300

Putia, Poba, Nachol, Tanor, Taherpur, Bag mara, Ish ardi, B onpara Noagoan, Nandigram, Mohadevpur, Kalai, Gabindag anj, Ull ahpara, Dupchachi a, Adamdighi Nilphamari, Rang pur, Pirganj, Sathi bari, Prigacha, Kownia Fullbari, Ambari, Birampur, Ghoraghat, Dinajpur Sadar, Thakurgoan Sadar, Pirgonj, Ranisankail Kushtia Sadar, Jhenai dah,Kaligonj, Coartchadpur, Kani pur, Boal mari,Rajbari, Zi bonnagar, Chuadanga, Alamdanga, Maherpur All over Jessore and Satkhira Barishal , Gopalgonj , B hol a Munshiganj, Tangail, Norsing di,Gaji pur Jamal pur, Mymenshingh, B okshigonj,Kisorg ong Comillah Sadar, Lacsum, Chandina, Daudk andi ,all over Majde Chakaria,Puti a, B ashkhali, Mithaisora, Chitagonj Sadar

Total

10500

6.0 Competition Analysis:

6.1 Sulphur 90% Market by Volume

Average Value /MT(Mio) 0.080 0.060 0.050 0.050 0.050 0.050

Fig in MT

Company ACI Fertilizer Intefa Eon Agro Map Agro ICI Agri Care Others Tatal

2008

2009

2010

2011

2012

2013

2014

2015

440 46 40 24 0 20 570

160 38 45 16 0 7 266

80 28 50 15 0 25 198

190 25 50 20 20 27 332

400 40 50 20 25 35 570

600 45 60 25 30 40 800

750 50 70 30 35 45 980

900 55 80 35 40 50 1160

Sulphur 90% Sales Trend By Volume:

Industry Size
1,400

ACI Sales

Eon Agro

Intefa

Figure in MT

% Indicates Volume Growth

1,200
23% 18%

1,000
40%

20% 25% 50%

800
72%

600

111%

400

-53%

68% -26%

200

-64% 13% -17% Y2008 570 440 40 46 Y2009 266 160 45 38

138% 0% -11% Y2011 332 190 50 25 0% 60% Y2012 570 400 50 40 20% 13% Y2013 800 600 60 45 17% 11% Y2014 980 750 70 50 14% 10% Y2015 1,160 900 80 55

-50% 11% -26% Y2010 198 80 50 28

Industry Size ACI Sales Eon Agro Intefa

Sulphur 90% Sales Trend By Value:

Industry Size
100

ACI Sales

Eon Agro

Intefa

Figure in Mio
19%

% Indicates Value Growth

90
80
23%

20%

70
43%

25%

60 50
79%

50%

40
30
-46%

111%
96%

20 10 Industry Size ACI Sales Eon Agro Intefa

-53% 13% -17% Y2009 18 12 2.25 1.9

160%
-33%

-53% 11% -26% Y2010 12 6 2.5 1.4

Y2008 33 26 2 2.3

0% 7% Y2011
23 15 2.5 1.5

0%
73% Y2012 41 32 2.5 2.6

20% 13% Y2013 59 48 3 2.93

17% 11% Y2014 72 60 3.5 3.25

14% 10% Y2015 86 72 4 3.58

Market Share:

Sulphur 90 Market Share

2011
Intefa 1.5,6% Eon Agro 2.5,11% Others 3.86 17%

2012
Eon Agro 2.5,6%

Intefa 2.6,6%

Others 4.1 10%

Figure in Mio

ACI 15.2 66%

ACI 32,78%

90 80 70 60 81 70

ACI

Eon Agro
78 66 50 21 82 83 84

50
40 30 20 10 ACI Eon Agro 6 Y2008 81 6 Y2009 70 13 Y2010 50 21 13

11

6 Y2012 78 6

5 Y2013 82 5

5 Y2014 83 5

5 Y2015 84 5

Y2011 66 11

Market Share of Sulphur 90%:

Map, 15, 3% E-On, 15, 3% Square, 20, 4% Semco, 10, 2% Other, 15, 3%

Intefa, 25, 5%

ACI, 400, 80%

Market Share of Sulphur 80%:

Compititors Market Share
SAMP 1% Corbel 2% Padm a 2% Syngenta 47% Mcdonald 3% Square 3% ACI Form u 5% Auto 11% ACI Fertili 5%

Others 16%

SPL 5%

Source: DAE

Market Size: 500 MT

7.0 Product Positioning:

1. Easy to apply 2. More Sulphur 3. Quickly degradable

8.0 Pricing: Price of competitors:

Sulphur 90%:
Sl.No 1 2 3 4 5 6 7 8 Company Name ACI SK+F Aama Green Care Map Intefa Semco Zenitica Sadik Brand Name Bumper Sulphur 90% Sornali Sulpher 90% Yielder Plus Map Sulphur Somur Micro- Thail Gategrow Sadik Sulpur Pack Size 1 KG 1 KG 1 KG 1 KG 1 KG 1 KG 1 KG 1 KG TP 100 100 95 100 90 100 104 120 NSI 80 80 75 90 60 85 80 95 Bonus 4:1 5% 6% 5% 5% 5:1 5:1, 5% 5% MRP 150 150 150 175 100 150 160 220

GP Analysis of Sulphur 90%:

Pack Size TP COGS GP GP% Cash Incentive Net GP%

1 kg

100.00

51.00

49.00

49.00

20.00

29.00

9.0 Communication Strategy:

To communicate in the field we follow the following strategy: Main Strategy: To establish strong brand positioning through innovative & extensive communication. Sub Strategy: Our sub strategies are as below: 1) To replace Sulphur 80% market with Sulphur 90% 2) To grab the market share of Sulphur 90% 3) To buildup strong brand equity

Action Plan: To achieve my strategies we have taken some category wise action plan. These are as below:
Targeted Group Distributor & Retailer Distributor & Retailer Farmers Farmers Selective Farmers, Stockiest, Retailer Selective Farmers & Retailers DAE Officials Wholesaler & Retailer Objecti ves Product positioning & rep lacement Product replacement Showing the efficacy of the product on different crops Brand awareness Product information & technology transfer Product information & technology transfer Product information Increasing sales Tools / Medi a Excellent Coupon program with attractive gifts Sulphur 90% benefits included festoon Result Demonstration & Field Day Pro mo Materials like M ini Poster, Banner etc. Train ing Program Personal Co mmun ication DAE Meeting Cash Incentive, Gift (Bag, Pen, Notebook, Calculator, T-Sh irt)

Result Demonstrati on is the most effective communication where a farmer can see the difference of yield. Trai ning program for selective farmer, retailer and stockiest is important for g iving underst anding to them about the importance of the product in the crops. We have to give more concentration on Trade Promotion with selective BCIC Dealer, Stockiest and retailers for selling the product by using the selling channel.

10. SWOT Analysis:

Strength: Attractive packaging Strong image of ACI brand Strong distribution network Cheaper RM source compare to 80WDG Strong promotional campaign Weakness: Sales of other products may hamper for using the current resource in the field It may be difficult to keep expected profit in the long term due to commodity product & high operational cost Opportunity: Large market size Unorganized competition Non availability of quality products Threat: Easy entry Price war among competition

11.0 Target Market:

We have focused to those farmers initially who are habituated to use quality full and easy use sulphur in their land and seek more benefitted & updated product.

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

13.0 Objectives:
To grab the market share of Sulphur 80% To replace & establish the product as an essential input of agriculture to the farmers for more yield & more benefit

14.0 Sales Projection:

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

2012
Gr% Sh% Vol Vol

2013
Gr% Sh% Vol

2014
Gr% Sh% Vol

2015
Gr%
2015

T otal Market ACI

500 150 400 196

*** 80

850 700

70 75

*** 82

1200 1000

41 43

*** 83

1500 25 *** 1300 30 87

14.2 Sales Projection by Value of Sulphur 90%:

Figure in Million

2012

2013

2014

Gr%

Gr%

Gr%

Gr%

Sh%

Sh%

Sh%

Total Market ACI

40 186 32 239

*** 80

68 56

70 75

*** 82

96 80

41 43

*** 83

120 25 *** 104 30 87

Sh%

Val

Val

Val

Val

Year

Sh%

Year

14.3 Month Wise Sales Projection 2012 & Targeted Crop:

Fig in MT

Month January February March 1st Quarter April May June 2nd Quarter July August September 3rd Quarter October November December 4th Quarter Total

Yr: 2012 10.00 70.00 26.00 106.00 12.00 12.00 60.00 84.00 20.00 22.00 18.00 60.00 30.00 50.00 70.00 150.00 400.00

Target Crops Winter Vegetables + Potato + Oilseed + Mango + Wheat + Water Melon + Other Fruits + Boro Rice + Maize + Chili Winter Vegetables + Potato + Oilseed + Mango + Wheat + Water Melon + Other Fruits + Boro Rice + Chili Boro Rice + Mango + Wheat + Water Melon + Pineapple + Banana + Papaya + Chili + Maize + Pointed Gourd + Bitter Gourd + Brinjal + Cucumber * Maize + Chili + Pointed Gourd + Okra + Bitter Gourd + Brinjal + Cucumber + Pineapple + Banana + Papaya + Onion Summer Vegetables (e.g. Brinjal, Pointed Gourd, Bitter Gourd, Okra) + Mungbean + Maize + Chili + T omato + Cucumber + Pineapple + Banana + Papaya + Onion Chili + Okra + Bitter Gourd + Brinjal + T omato + Cucumber + Pineapple + Banana + Papaya Chili + Bitter Gourd + Brinjal + Cucumber + Bean + T omato + Pineapple + Banana + Papaya Chili + Bitter Gourd + Brinjal + Cucumber + Bean + Pineapple + Banana + Papaya + Amon Rice Chili + T omato + Couliflower + Cabbage + Bitter Gourd + Bean + Amon Rice + Papaya Potato + Couliflower + Cabbage + Chili + Jujubi + Amon Rice Potato + Maize + Chili + Couliflower + Cabbage + Carrot + Oilseed + Jujubi + Wheat + Water Melon + Other Fruits T omato + Couliflower + Cabbage + Potato + Maize + Oilseed + Mango + Wheat + Water Melon + Jujubi + Other Fruits + Boro Rice

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

14.5 Area Wise Sales Projection 2012:

Fig. in MT

15.0 GP Analysis of Sulphur 90%

Bumper Sulphur 90% (Powder/Granular)
Sales at TP (Mio) COGS (Mio) GP % of Sales Stockiest Incentive (Mio) % of Sales Retailer Motivational Program (Mio) % of Sales FF Incentive ( Mio) % of Sales Total Business Promotion % of Sales GP after Promotion % of Sales Note TP/kg COGS/kg
*Business Promotion is calculated as per Targeted Slab

Projection : 400 40.00 20.40 19.60 49.00 8.00 20.00 .00 0.00 .00 0.00 8.00 20.00 11.60 29.00 100.00 Tk. 51.00 Tk.

MT

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

Sulphur Strategy at a glance

1. Market growth is 6% in 2011 over last year
1. ACI Fertilizer has 6% market share

Business Analysis

Market Analysis

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

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

3. More than 50 companies are in the market

4. Syngenta is the market leader with 52% market share 5. Sulphur 80% dominates the market 6. The market of Sulphur 80% is in maturity stage 7. The pesticide companies dominate the market

3. Top line Tk.70 million in 2011

4. Gross Profit 35% in 2011 5. Product differentiation 6. Good sourcing of the product

Strategy

Replace Sulphur 80WDG by Bentonite Sulphur 90% which has higher efficacy, cost benefit and easy application (MA: 2,4,5,6; BA: 1, 2,6)

Emphasis on comparative result demonstration & personal communication to grab the existing ready market (MA: 1,2,4,5; BA: 1, 2,3,4)

Regular retailer training program to improve knowledge on the benefits of new technology (MA: 1,5,6; BA: 1,2,6)

(Def. Corrector + Fungicide)

Sulphur

Objectives

Top line growth 40%

Gross profit 38%

Market Share 8%

Farmers awareness increased by 80%

Surface coverage increased by 40%