MKT-202

SECTION-16

PREPARED BY:

SUMANA AKTER ID:1712730030

TAMANNA ISLAM TAYABA ID:1712188630

ISLAM TAHLIN ID:1612605630

MOHAMMAD AZRAF ALI ID:1713119630

HASIBUL HASAN ID:1631805630

CHOWDHURY PRAPTI LUBABA ID:1711892630

 PREPARED FOR:

MR. MAHAFUZ MANNAN [MM1]

LECTURER; MAR4KETING DEPT.

NORTH SOUTH UNIVERSITY

LETTER OF TRANSMITTAL:

AUGUST,10,2017

MR. MAHAFUZ MANNAN

LECTURER

DEPARTMENT OF MARKETING

NORTH SOUTH UNIVERSITY, DHAKA

SUBJECT:SUBMISSION OF REPORT ON “AIR CONDITIONER AS

NAVANA’S NEW PRODUCT LINE”

CONTENTS

Acknowledgement

Background

SWOT and PEST Analysis

STP( Segmentation,Targeting and Positioning)

Objectives

The Marketing Mix (4 Ps including strategies)

Implementation

List of References
 Acknowledgement
First we would like to extend our sincere gratude towards Almighty for providing us with
the strength and ability to understand,learn and gather the sound knowledge required to complete
this report. We would like to take this opportunity to thank our parents who always stood by us
through thick and thin in the face of adversities.

We would like to convey our immense gratitude towards our honorable faculty Mr.
Mahafuz Mannan without his guidance and support this report would not have happened in the
first place.The knowledge delivered to us by our honorable faculty has helped greatly in the
completition of the report.We have tried our best to utilize his guidelines while working on our
report.

In order to complete this report we gathered information from the web and library,took
suggestions from our faculty and ended up with a profound understanding of the courcse as a
whole.

Finally, we would like to thank all those who supported and inspired us to turn this report
into reality
 THE BACKGROUND OF NAVANA

There are only a few group in Bangladesh which are as large

asanavana and it has a long business history.In 1953 Alhaj. Jahurul Islam, a dynamic business
man of country selected his target establishment of company, name was Bengal Development
Corporation (BDC) and in early time success his business into realestate and new companies
setting up automobile sector, i.e., Eastern Housing Limited and Navana Limited respectively.
After the inception of Navana Limited in 1964, Islam Group took place throve rapidly and
formation of the business under Chairmanship of Alhaj. Jahurul Islam. 

Mr. Shafiul Islam Kamal joined Islam Group as a Director in 1976 for his Riveting leadership
and vast knowledge. He had effective idea for the business development of Islam Group and
helped it to grow more bigger.

The group entered into an exclusive distributor franchise with HINO Motors of Japan and was
able to buy alots market share in transportation sector of commercial. Aftab Automobiles Ltd
set up in 80’s. Toyota and HINO assemble vehicles for market in Bangladesh. Which was the
largest private sector automobile assembling plant in country.

Mr. Jahurul Islam decease in 1995, in 1996 Mr. Shafiul Islam Kamal separate business entity
from Islam Group and start a new group [Navana Group] taking the Navana Limited and
Aftab Automobiles Limited as its strategic business unit. Navana Group was born and
chairman is Mr. Shafiul Islam Kamal. 

1964

 Establishment of
 Toyota Sales 
 Hino Commercial Vehicle Sales
 After Sales Department (Service)
 After Sales Department (Spare Parts) 

1988

 Establishment of

 Hino Commercial Vehicle Service Center

1995

 Expire of

Al Haj Jahurul Islam, Chairman. Islam Group

1996

 Took over Operations by

 Shafiul Islam Kamal, Chairman. Navana Group

Establishment of

 Navana Real Estate Limited

 Navana Construction Limited
 Navana Building Product Limited

1998
  Establishment of

 Navana Interlinks Limited

2000

 Establishment of

 Biponon Limited

2002

 Establishment of

 Navana Furniture Limited

 Navana Batteries Limited

2003

 Establishment of

 Hino Body Fabrication Unit

 Hino Assembly Unit

2004

 Establishment of

 Navana CNG Limited

2006
  Establishment of

 Navana Logistics Limited

 Navana Petroleum Limited

2010

 Establishment of

 Navana Engineering Limited

2012

 Establishment of

 Navana Foods Limited

 Navana Welding Electrode Limited

2013

 Establishment of

 Mahindra Two Wheelers

2014

 Establishment of

 Toyota Industrial Equipment

 Navana Renewable Energy Limited

2015
  Establishment of

 Navana Digital Equipment Limited

SWOT Analysis

SWOT Analysis identifies and analyses the internal strengths and weaknesses and external
opportunities and threats that influences the future success of a business.

Strengths:

 Renowned local company

 Specialist marketing expertise
 Highly experienced and qualified employees
 Loyal customer base
 Highly skilled professionals
 High quality products
 Brand reputation
 Expert management
 Strong financial support
 Reasonable product price
Weaknesses:

 Low employee satisfaction

 Lack of advanced technology
 Lack of experience in making house appliances
 High employee turnover rate
 Slow decision making

Opportunities:

 High market share

 High profits
 Government support
 Customers prefer brand
 High demand
 Loans from banks
 Consumers prefer a good lifestyle
 Establishing a new product sector

Threats:

 Competition
 Price wars with competitors
 Taxation of product

Expensive, so sales will not be high

PEST analysis

PEST Analysis is another form of strategic analysis which needs to be undertaken for our
product. It includes the political, economic, social and technological factors.

Political: The political forces include laws and government policies that influence various
organizations and individuals. There are lots of rules and regulations created by the government
to protect companies from each other, consumers from unfair business practices and to protect
the interest of the society. The political condition of Bangladesh is very unstable. The cold war
between the political parties and the hustle between them will have an adverse effect on our
product. The standards set by the government and the rules and regulations of launching and
making a product should be met. The tax rate is also very important, as it will affect the pricing
of the product. Due to unstable political conditions, the completion of products takes more time
than usual which increases the overall production costs. Prices charged will be higher if the
production cost increases. Another major problem is whenever a new Government comes, there
is a change in interest rates of deposit, loans, etc.

Economic: Economic forces are the factors that affect the consumer buying power and spending
patterns. People with high income and high level of savings can think about purchasing an AC
for a better lifestyle and comfort. AC is quite expensive and not everyone can afford to buy it.
The pricing, promotion, distribution and product policies of competitors should be taken into
account. Costs however increase during recession. Unemployment in Bangladesh is very high,
which may lead to a fall in the future sales of the product. However, a growing economy can also
increase the demand for AC as there will be higher incomes. On the other hand, unstable policies
such as interest rises may instigate people to put their money on the bank rather than spend it on
an AC now, leading to a decrease in sales.
Social: Social factors are related to the basic values, perception, and behavior of the society.
The ageing of the population influences the development of the products and the distribution
channels used to deliver them to the customers. Sales of the product will differ, like there will be
more sales in the urban areas than in the rural areas. People are nowadays more conscious about
the environment, so they will prefer an eco-friendly one.

Technological: It is a very important factor and plays a very important role in the production
process. Changes in technology affects marketing plans in a variety of ways. The use of
technology has increased very much in all business sectors of Bangladesh. Advanced technology
makes it possible to manufacture products at a cheaper price that would have previously been
very costly. New technological developments also brings a change in the promotional methods,
which will be helpful for promotion or advertising of the AC. Latest technology gives a
competitive advantage over the competitors. Technology helps to reach the customers easily,
through e- commerce etc. Technology would help the company for further research and
development and also to be updated so that the competitors do not get the advantage.


 More innovative product from competitors
 High raw material costs
 Unstable political condition
 Not everyone can afford an ac
 Changes in government economic policy
COMPETITION
We know that Navana is an big and concord company in our country. This company is started a
few years ago but they developed a lot .the founder of the company Saiful Islam Kamal. He is
the chairman and the the managing director. There are many company’s of Navana group. They
importing and exporting many prouduct’s in our country. Its head quatar is in Dhaka
,Bangladesh. Now the company is launching a new product, Ac(air condition). They want to
import devices and make Ac in Bangldesh. It is a challenging product for them because there are
a lot of company who produce Ac in Bangladesh. Some of them are very popular too.So if they
want to launch air conditioner, they must have to make the product in good quality. Because a
good quality product runs well. On the other hand they also have to increase the warranty level.
At first they need to list some of the products which are very popular in Bangladesh as like
LG,GENERAL, ALUX, SUMSUNG etc. there are also some foreign products also being
exported in our country. So if they want to remark in our country it will be not be an easy task.
My idea will be for them will be to produce good and comfortable price products . If not they
will not be able tp taste early success. Now a days people are using AC increasingly. So we need
a lot of Ac every year . It will be a good opportunity fot them to sell their products in low price
because when people get a good quality products in low price they buy it. To build up a good
and preferable product they need to increase their show rooms and products showing quality,
when people can know about the products they will be interested to buy . I think they also need
to broadcast their products in tv channels and billboards. When people see their products in tv
channels they come to know about the product . Sometimes people buy products by preference
of the colour of the products. They have to be careful in this site. They needs some good and
quality knowing who will help to go through. At last, my advise to them is if they maintain these
rules they might succeed . They can launch the products also.
 S.T.P ANALYSIS
The S.T.P analysis is a method of dividing the market into different segments and analyzing the
segments, targeting groups from each segment to serve and make a good position in their mind.
The process includes:

Segmentation

Based on our public survey and other out knowledge’s, we have segmented for our NAVANA
market into 4 main categories. They are:

Demographic: Geographic: Behavioristic:

 Age  Dhaka  Loyalty
 Occupation  Chittago  Usage
 Income ng  User
 Sylhet
 Gender Status

Benefit
Segmentation:
The preliminary point for explaining market segmentation is mass-marketing. For any product
the market usually has different segments. Above all, a market is the sum of consumers of a
particular product. There are various part availing for dissimilar mind set of consumers. It is a
common fact that there are many different parts of a market.

Navana Company offers best quality Air conditioner with various bunches to customers at a very
competitive price.
 Targeting

Based on our segmentation, we have targeted the segments to enter and they are:

Demographic Geographic Behavioristic

Lifestyle Dhaka Usage

Age Loyalty
Income
Benefit

Attributes

 We have targeted lifestyle, occupation and income because our targeted customer
lifestyle level is higher middle class and minor part of the higher class of the society. Age
is the main outline of targeting the consumers but in this case for NAVANA AC
customers are all the different age of people especially for Old’s and children’s. People
from almost high incomes and richest usually use the air conditioner at home and office.

 We have targeted Dhaka for the launching of our product because it’s a big city with a lot
of population with exclusive lifestyle. We can get attention of the people easily because
here situated many multinational companies and residential areas. We will spread our
business to other cities if we get a good response from Dhaka.
  We have targeted usage because there are people who usually use air condition and
loyalty because there are still few NAVANA brand loyal customers in the market

 We have targeted attributes because people always seek for new benefits and new
designed.

Positioning

Navana Air Conditioner – Keep It Cool

Electronics
NAVAN
A
 Our Air conditioner is very durable and tough as compared to other air conditioner.
 It is very much flexible and contains more power full connector with no moving parts.

 It is highly resistance against corrosion and weather. It is Small size with a very small
designed.

 Will cost only 44,990 taka for a 1.5 TON and 35,990 taka for a 1 TON while the other
brands charge more for 1.5 and 1 TON AC .
 This allow you to accommodate other appliance in your room too.

 Other air conditioner normally want outsized the room or it might vary with future of
your rooms.

 It is very much comfortable for the kids, teenagers and especially for older and sick
patients because the most important thing they need pure fresh air because we are
surrounding mostly polluted air especially in Dhaka city.

 Our Air conditioner will provide them with high fresh components.

 It will give you peaceful sleep because it is noiseless. The level of noise is exceptionally
reduced by using efficient diagonal propeller fans.

 We assure superior value to our customers and our brand is our promise.
 Objectives:
Implement Design:
The implement designs are as follow:
1.Secondary data.
2.The sampling plan,
The data collection method:there is no data collection processes i.e.
3.The data research instruments.
4.The data collection methods.

The secondary data: International bodies are regularly collected and dissemination by a great
deal of data, Census Commission, Government and its many agencies including Planning
Commission , International Monetary Fund, World Bank, international Labor organization,
Central Statistical Organization, Private research organization, trade association and this kinds
of data which has already been collected by another organization and not by us is known as
secondary data.
Research Instrument: In this observation method, the researcher may used a camera, tape
recorder or tally sheet (a sheet in which the number of times an event occurs is recorded).
Whatever the instrument used, the researcher must ensure that the instrument is appropriate to
the occasion and is reliable.
The sampling plan:
There are four aspects of the sampling plan:
 How are they to be reached (Sampling media)
 How are they to be selected (Sampling procedure )
 Who is to be surveyed (Sampling units)
 How many are to be surveyed (Sample size)
 Summation of the information:
Experiment of Information:
 There are four aspects of experiment the data-
a) Applying analytical methods to manipulate the data to highlight their interrelationship and
quantitative significance.
b)  Classification the raw data in more orderly manner    
c)   Summarizing the data;

a) Selecting analytical methods:

There are two steps process:
 Correlation
 Regression analysis
 Multiple regression analysis
 Discriminate analysis
 Factor analysis
b) Classification the raw data: The most commonly used classification in marketing research
is quantitative, qualitative, chronological and geographical.

C) Summarizing the data:

 There are several steps in this summarizing data process.
 Frequency distribution.
 Mode.
 Median.
 Mean.
 Variance and standard deviation.
 Range.
Report Presentation & Implementation
The final step is the preparation, presentation and implementation of a report giving the major
findings and recommendations.
  Limitations:
The limitations are as follows:
 Availability problem of primary and secondary data collection
 Time barrier.
 In most cases, present data are not available.
 Every office executive are not easily disclosed the available data.
 In some cases cost involvement is so high.
 Practical Infeasibility of complete Enumeration.
 Enough Reliability of Inference based on sampling.
 Quality of data collected is very difficult
 Physical Impossibility of complete Enumeration

THE MARKETING MIX[4PS]

PRODUCT MIX
 PRODUCT LINE [ AIR
COCONDITIONER]

PRODUCT TYPE PRODUCT TYPE PRODUCT TYPE PRODUCT TYPE

[PORTABLE AIR PRODUCT TYPE
[WINDOW AIR [SPLIT AIR [THROUGH THE
CONDITIONER] CONDITIONER] CONDITIONER] WALL AIR [CENTRAL AIR
CONDITIONER CONDITIONER]

8oooBTU NAVANA 12OOOBTU 12OOOBTU NAVANA

Portable Air NAVANA Window Split Air CONDITIONER 10000BTU NAVANA
Conditioner Air Conditioner 36000BTU NAVANA
NAVANA Through The Wall
10200BTU NAVANA 18500BTU Central Air
18000BTU Dual Invertor Air Conditioner
Portable Air NAVANA Window Conditioner
NAVANA Cooling Only 11200BTU NAVANA
Conditioner Air Conditioner 48000BTU NAVANA
with Mosquito Away Through The Wall
12000BTU NAVANA Central Air
18000BTU Split Air Air Conditioner
Portable Air Conditioner
Conditioner cooling only
Conditioner 24000BTU Dual Invertor
14000BTU NAVANA cooling only NAVANA AC
Portable Air
Conditioner

From the above chart of it can be seen that our proposed product line to NAVANA which is air
conditioner is going to have a product mix of-

Product mix LENGTH-14

Product mix WIDTH-1
Product mix DEPTH-4 in portable air conditioner,3 in window air acentral air conditioner.
 NAVANA as a reputable brand is known for its fidelity towards its consumers by serving
the consumers with high end sophisticated products. The products are designed and styled in
such a manner that they are well composed in sizes to consume less space and easy to operate as
they are armed with latest technologies. Consumers who are going to buy our new product [air
conditioners] should not expect anything less. Our air conditioners are built to satisfy consumers
needs and demands.

NAVANA is renowned for its work with reputable brands in the production of cars.
Therefore the production of these air conditions are no exception; NAVANA will work with
multiple brands to come up with these fifteen exclusive air conditioners. Starting from 8000BTU
to 48OOO BTU air conditioners we will have it all. This will go out to prove that we are capable
of providing air conditioners to all demographic segments. Be it a small store or a big office we
will develop air conditioners for all type of rooms. NAVANA is going to be the first Bangladeshi
company to supply 48000BTU air conditioners.

Besides these being eco-friendly NAVANA is also going to provide a handful of

service options to its treasured customers. All the air conditioners come with an estimated
warranty and at least one-year services free option. Our customers will also be able to go for a
maintenance contact annually.

All the NAVANA air conditions is going to come with a unique FAQ booklet that
provides product related information. If customers face any difficulties , they will be able to
contact the company right away ; the company has a customer care helpline where users will be
able to call for a technician for solving a problem. One of the various products which is most
credited and which are driving the brand equity of NAVANAs cars which is loved and trusted by
our customers. Our air conditioners are set to give the same kind or if possible even more brand
equity to our company.
AIR CONDITIONER
 PRICING STRATEGIES

NAVANA has been a brand that has long earned the trust of its targeted consumers
through product and policies. Amongst them are our pricing policies. A characteristics of a true
pricing policy is that it is supposed to be a gray area that lingers between the maximizing of
profits and the costs undertaken without exceeding the market expectations.

In order to achieve a precise strategy the company can set up a unit that decides and
scrutinizes the varied expenses that is incurred during the production and hold of the goods by
the consumer. This knowledge pedals with the pricing policies of the rival business firms and is
helpful in determining actual pricing policy of the brand. With the help of its tidy distribution
channels and ingenious warehouses, will be able to cut loose of the costs of its products by a
margin.

Consequently, we have decided on a competitive pricing policy for the air conditioners
and thereby we will look forward to build a consumer base for our air conditioners. The
competition from Walton and other multinational companies is high but we have done enough
research to counter them scheme by scheme .In products for example- the 48000BTU air
conditioner, where the competition is not high yet ,we are willing to go for penetration pricing.

The company might also go for value-added pricing strategies, because it is inevitable that
changing times will result in a new breed of customers that realize the significance of branded
and high qualitative products. The overall pricing strategy or the new product will stay the same;
but some minimal changes may occur within the different product outlets as they may resolve to
allocate added benefits to the consumers to garner further customers to enlarge the profits.

It is not feasible for a large firm like NAVANA which is working in consumer niches
and have a number of rivals, to work with one single pricing policy.
 We will charge good-value pricing on targeted customers. We are willing to fix a
standard price that resonates with product quality so that our brand value increases. Our ultimate
goal is to set an unbiased price for our oriented customers.

We will set the prices of our products as follows-

PRODUCTS PRICE[Tk.]
8oooBTU NAVANA portable air TK 27000
conditioner
12000BTU NAVANA portable air TK32OOO
conditioner
14000BTU NAVANA portable air TK37000
conditioner
18500BTU NAVANA window air TK425OO
conditioner
21000BTU NAVANA window air TK499OO
conditioner
12OOOBTU NAVANA SPLIT AIR TK36000
CONDITIONER

18500BTU NAVANA dual invertor TK50000

NAVANA cooling only with mosquito
away
21000BTU NAVANA deluxe split air TK54600
conditioner

24000BTU NAVANA dual invertor cooling TK56900

only split air conditioner
10000BTU NAVANA through the wall air TK29000
conditioner
11200BTU NAVANA through the wall air TK31000
conditioner
36000BTU NAVANA central air TK85400
conditioner
48000BTU NAVANA central air TK113800
conditioner
 Placing

Placing or distribution is a vital part of the whole product mix decision. We will have to
concentrate on where our target consumers are and supply our products to the stores closest to
our target consumers.As mentioned earlier in positioning we will be launching the air
conditioners in Dhaka and if e get a good response we will extend our market to include Sylhet
and Chittagong.We are also setting online stores which some of our competitors are yet to
achieve.These online stores will reduce our consumers transection costs and encourage them to
buy our products. We will design a strong sales force that is capable of delivering customer
satisfactory service..We will also attend the trade fairs to raise awareness for this new product
line.
 PROMOTION MIX

NAVANA has a very consumer amiable promotional policy. The company is determined to
serve its every consumer with special care and so in order build and perceive their consumer
base., therefore we have planned for the company to execute a standardized innovative and
visionary promotional strategy.

Choosing the right media platforms for advertising-

In the case of choosing media platforms, we have decided to go with both the personal and non-
personal media to promote our product.

Personal media-

We will communicate with our targeted customers directly through various social media
platforms for example- Facebook, Twitter, YouTube by arranging exclusive q and a sessions and
by delivering short advertising clips on this user friendly apps .On another note another effective
way to raise awareness of the product is through social media contests. Social media contests and
giveaways are a very new and crowd-pleasing method used by top quality marketers of
today.Social media contests are an entertaining way of getting in touch with customers and
garnering more followers for social media platforms.Therefore NAVANA is going to make use
of this easy process to gain new customers. Iphone uses this giveaway technique and has
benefitted from it.

Before launching we can create a teaser campaign on Facebook before the real
conception of our products .A teaser campaign will send a message in social media that
something exciting is coming.This will create the intended buzz and hype around our air
conditioners.As a result as soon as our air conditioners are available in market people will want
to be the first customers to buy them
Non-personal Media-

We plan on using the following mediums as our non personal media-

TV- We will broadcast our ads on various popular channels like NTV,Channel I,ATN.

Radio- We are looking forward to sign Radio Foorti as our radio partner .We will broadcast our
ads on other radio stations as well.

Newspaper- We will be looking forward to cover a large portion of front and back pages of
renowned newspapers from time to time to inform people about our NAVANA air conditioners
and upcoming offers.
We will advertise our product with the help of frequent billboards.
Trade shows which are a part of personal selling will aso be very effective for our product line
SALES PROMOTION
Sales promotion can be done by adding discount to our products since the market of air
conditioners is highly competitive setting discounts will encourage consumers to buy our product
it will also help us decide the permanent price of our products co-ordinating with wants and
demands of our customers.We will put our focus on sending our loyal customers of other product
lines virtual coupons which will make the promotion more unique and will give our customer a
pull to visit our stores .We will work on making the promotion seem exclusive while keeping the
customers happy .

Implementation Timeframe
We plan on taking roughly six months time to implement our process.

TIME MONTH OF ACTION FOR TASK ASSIGNED

Aug Sept Oct Nov Dec Jan

Finalize
V
planning
permission
Apply for
finance
X V
Finalize
suppliers X V

Make deal
with local air X V
conditioner
building
inspectors
 Gather
information X V

Supervise
Builders X X X V V V

Plan shop
and interior X X X X V V
design
Marketing
materials X X X X X X
created and
distribut

KEY- “X” turns to “V” once the task is completed

CONCLUSION-

In conclusion I think AC will be an excellent new product for NAVANA to launch

in Bangladesh due to global warming the temperature have been rising ever since therefore very
soon the demand for AC in Bangladesh will be at an all time high.

APPENDIX

Financial plan assumption

Survey done on other similar product
Survey done on other similar product
Sales assumption
Breakeven analysis
Reference
Marketing Mix Definition-4Ps and 7Ps of the Marketing Mix[http://marketingmix.co.uk/]
The Top 10 Most Popular Types of Sales Promotions[www.sparkpay.com]
Navana Group[www.navana.com]