The four Ps of Marketing Mix:

Product -models -features -product life cycle

price -Target Customers -Intended positioning

promotion

place

Product and price of different models of RAHIMAFROOZ IPS: Warranty IPS Model BCK-UP time Watt Total price with VAT 38, 800 tk. General consumption pattern 4 tube+ 2 local fan+ 1TV 21 or alternative combinations 2 tube+ 2local fan 4 tube+ 2 local fan+ 1TV 21 or alternative combinations 2 tube+ 2local fan 3 tube+ 3 local fan 4 tube+ 2 local fan+ 1CRT TV 21 or alternative combinations 4 tube+ 3 local fan+ 1CRT TV 21 or alternative combinations 9 tube+ 7 local fan+ 1CRT TV 21 or alternative combinations 16 tube+ 15 local fan+ 1CRT TV 21 or alternative combinations as per load survey one 1.5 TON AC+ 15 tube+ 15 local fan or alternative combinations as per load survey one 2 TON AC+ 1 standard size refrigerator+ 12 tube+ 10 local fan + 2 CRT TVor alternative

24 Month warranty

COMPUVERTER 2 hours VLX- 600 premium RADIANT 350 2 hours plus COMPUVERTER 2 hours VLX- 600 plus

500

18 month warranty

280 500

19,990 tk. 35150 tk.

12 month warranty

RADIANT 350

2 hours

280 400 500

17990 tk. 24990 tk. 30950 tk.

RADIANT 550 2 hours COMPUVERTER 2 hours VLX- 600

DB Sinewave 800

2 hours

600

39350 tk.

ION 1500 VA

2 hours

1200

61,200

ION 3 KVA

2 hours

2300

1,23,300

JUMBO 6 KVA

2 hours

4500

2,89,900

JUMBO 10 KVA

2 hours

7500

4,41,800

combinations as per load survey Features: RAHIMAFROOZ IPS contain some special features. They are stated below:

The IPS are completely automated. There is no need to switch it on when load shedding happens. It takes only 12 microseconds to (0.12 seconds) start providing electricity after load shedding. Free from any types of sound and air pollution. It also provides safety against and high voltage and low voltage.

Product life cycle:

Sales and profit (in crore)

90 Sales

o
Product Development Losses/ investment Introduction Growth Maturity Decline

Time

Figure: RAHIMAFROOZ IPS life- cycle

Product development: In 1993, RAHIMAFROOZ had battery and UPS (uninterrupted power supply). The electricity situation of Bangladesh was poor. The technical employees of RAHIMAFROOZ first tried to solve the problem. They assembled the two vital parts, inverter and battery, and found a temporary solution to the load shedding problem. They gave a completely new name, IPS (instant power supply) to that assembled product and decided to lunch it to the Bangladeshs market. Introduction: In 1993, RAHIMAFROOZ first introduced IPS in Bangladesh. The word IPS was entirely new to the people of this country. It grasped the market easily as there was no easy solution to the electricity problem at that time. Growth: Now this product is in growth stage. At this stage: o Market acceptance is increasing. o Market size is also increasing. o More competitors are entering in the market. o Product is more developed o Product is more differentiated. o Revenue is increasing. Maturity: There is a possibility that in two years time, the product might reach its maturity stage and then decline. Government has declared its policy regarding electricity of the urban area of Bangladesh where the goal is to gain 0 (zero) electricity by 2014. The main stimulation to buy IPS is the poor electricity situation in Bangladesh. If our government can really achieve its goal then the demand for IPS will die eventually. But if it is viewed from another angle, the situation might be different. Population of Bangladesh is increasing and so are the house and the demand for electricity. The government policy only includes the urban area. The income of the people is also increasing. So, considering these factors, we can say that it will take much more than two years to reach the product to the maturity stage.

Decline: in decline stage: o Sales fall off o Profit drops o Demand for the product die away o New powerful substitute product arrives o The manufacturer stops producing eventually. RAHIMAFROOZ IPS will take a much longer time to reach that stage.

Product market expansion grid:

Existing Products

New Products

Existing Markets

Market Penitration

Product Development

New Markets

Market Development

Diversification

Figure: Product/ Market expansion Grid

Market Penetration: It is a strategy of increasing sales by using the same products in the existing market. RAHIMAFROOZ has taken some steps to penetrate the market more deeply though it dominants 60% of the IPS market. It has used some promotional offers to penetrate the market. For example:

a sms contest where the winning prizes

were Bangladesh cricket teams jersey and RAHIMAFROOZ IPS. RAHIMAFROOZ also undertook various occasional offers and promotional activities. For instance; they published leaflets in the holy month of Ramadan titled

and with the time schedule of

fasting and spread it among the people in front of the Masjids. According to the product manager, these promotional activities really helped RAHIMAFROOZ to penetrate the IPS market more deeply and though in the previous year/ 2011, because of prolonged rainy season and improved electricity situation, the IPS market has nt increased or increased so little that is negligent, the sales and market of RAHIMAFROOZ IPS has increased in expected rate.

Product Development: Offering modified or new product to the existing market is product development. RAHIMAFROOZ is doing their best to offer modified or more improved product/ IPS to the market. When they have first lunched this IPS to the market, it didnt have all those pre sent features which now make the use of IPS easier than before. It means they are continuously improving their product value, size and shape. Market development: Market development means offering the same product to the new market. Though RAHIMAFROOZ isnt working to achieve market development, this idea could be a future strategy for them and this idea is a very powerful and feasible in the perspective of RAHIMAFROOZ. For instance; RAHIMAFROOZ has only 4 outlets for IPS outside Dhaka from where they sell IPS as well as gives after sale services. Those are Chittagong, Sylhet, Bogra and Jessore. But the electricity situation is far worse in the other places of this country than those areas, especially in Dhaka. Even in those districts/ regions where they have sales outlets, they cant meet the demand completely because of transportation and other causes. Bangladesh government has taken policy to reduce electricity problem to 0 (zero) in the next two years but only/ mainly in urban areas. But there is nothing said specifically for rural areas. RAHIMAFROOZ can try to capture those markets where electricity situation is promising and favorable for their product. It will be a must strategy for RAHIMAFROOZ if the government does implement their plans regarding electricity situation in Bangladesh. Diversification: In fact, diversification is the only strategy which will have no effect should the company try to acquire growth by starting up new business in the new market, because RAHIMAFROOZ already has a diversified product line. The IPS business of RAHIMAFROOZ is kind of a by-product business to them. Their main businesses are of battery, retail shop, UPS, Inverter etc. IPS is sort of an assembled by-product of battery and inverter. So there is nothing to diversify.