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1.1Origin of the Report
This report is originated as the graduation requirement of BBA program of Northern
University, Bangladesh. The topic was assigned by Mr. Fikret CICEK, Senior Vice
President (Sales & Marketing), Everest Rug Production Ltd., the external supervisor of
internship program and approved by my internal supervisorMd. Monirul Islam, Lecturer in
marketing, Department of Business Administration Northern University Bangladesh. My
survey was conducted on effective sales & marketing strategy of Everest Rug Production
Ltd and also on various Manufacturer and wholesalers of Rug & Floor covering market.
1.2Objective of the study
The report has been done to fulfill several objectives that are depicted below:
To gather technical and competitive information about Sole distributors of Rug &
Floor covering markets in the world.
Bile companies in our country.
To know the internal workflow of this company
To know the product line & product range of this company
To know the sales procedures of this company
To work with sales executive and gather practical experiences for further career
development.
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1.3Methodology
Before going into an in-depth research, a conceptual structure was visualized under which the
whole study was conducted. Hence the research is a descriptive type of research. Research
methodology for that matter, is the combination of tools techniques and approaches through
which a scientifically designed research is carried out. No research is complete unless a
correct methodology is followed. Any inquiry or research will definitely probe to be negative
if it is not done along certain methodology.
a) For the procedure of different marketing activities, I had observed the operations and
worked with the officers at the same time. I had interviewed the Everest Rug Production Ltd.
officially for getting more information.
b) For the analysis part, data have been collected from different statements and the documents
of the company also collected by the surveying market of Carpet manufacturing industry.
1.3.1Data collection Process
Primary data collection through depth interview
Primary data collection through Questionnaire survey
Secondary data collection through text theories, cases, brochure and internet browse
1.3.2Data Analysis Process
Data analysis by using Table & chart
1.4 Sources of data
The report is based on primary and secondary sources of information. Interviewing the
managers and officers of the company, employees of its competitors & customers has
provided the primary sources of information. Further more the secondary sources of
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information are the different published documents, Market survey, journals, official files,
printed forms, documents kept in the company.
1.5 Limitation of StudyAt the time of my research work I faced several problems:
Time: Time is an important issue in report writing. As I have been given a specific deadline
for submission I could not perform all the researches and visit of Carpet manufacturing
industry. And also its a fact that Internship session is really squeezed and contracted.
Unwillingness to cooperate: There is always a chance that survey like this would not meeta cordial invitation of all the interviewees.
Secrecy of information:Everest Rug Production Limited and other dealers/retailers wanted
to keep some information secret according to their corporate law. Thus it has not been
possible to write about those factors even if I wanted to.
Lack of experience:A comprehensive result of practice of distribution marketing could not
be found as I had some pivotal limitations like inexperience. I am aware that no survey has
been done on Carpet distribution system in Bangladesh. So I could not take a glance and learn
the factors I should be cautious about, which barriers to expect and did not have any forecasts
that could help a lot preparing this report
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2.1 Introduction of the Organization
Everest Rug Production Limited is a limited company. I choose this organization because I am
interested about the Carpet manufacturing industry so I led myself to complete my internship
with Everest Rug Production Ltd I would say, it is really a very good organization for
attachment, as there is ample of opportunities to learn with in hand experience.
2.2 Historical Background of the organization
Everest Rug Production Limited established in 1998 this is a 100% foreign investment
company in Bangladesh. Their Raw-materials to import from abroad (Woolen yarn, Silk yarn
& Cotton yarn) There are 700 workers in this industry there product name is carpet & Flore
covering this product are 100% manually, there is on interesting matter is 100% woman
workers. This Company is 100% Export oriented company. There all productive goods are
sold to abort, Canada, USA, Spain & Turkey. This company is the sister concise of Hadeks
Hali Deari Tekstil Des Tic A.S. They have another three companies in the world. They have
260 show rooms in abroad
With approximately Eleven years of operating experience, Everest Rug Production Limited
has developed a competent sales, engineering and management team to efficiently manage the
affair of the company. Coupled with modern showrooms, an exclusive PDI workshop for
examining new carpet before delivery, trained technicians and 100% customer satisfaction.
Everest Rug Production Limited has carved a niche in the field of Carpet sales and is Export
to the several foreign countries. Today Everest Rug Production is rated as one of the best
Carpet distributor in Asia. Everest Rug Production is selling Carpet of Turkey origin as of
date. Currently Carpet is the market leader by providing better quality, competitive pricing.
The reasons behind the phenomenal growth of Everest Rug Production Limited and thegrowth in the market share of Carpet as a brand in Bangladesh over the last four years can be
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attributed to a number of factors. Firstly, Everest Rug Production Limited does not market any
products from carpet that have not been manufactured in Bangladesh itself.
Various innovations in sales techniques including finance assistance have helped to boost the
sales of Rug Production carpets. Finally, the product mix of Rug Production offered in
Bangladesh is more diversified than any other manufacturers currently selling in the country.
2.3 EVEREST RUG PRODUCTION LIMITED
2.3.1 Offered products & services
Everest Rug Production Limited offer brand new carpets.
Sale best quality products as much as possible.
Provide 20 years guarantee.
2.3.2 Value added services
Solve the customers problem timely.
Provide consulting services.
Always keep contact with customers.
2.3.3 Competitors of EVEREST RUG PRODUCTION LIMITED
Top Competitor
IMA RUGS LIMITED.
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2.4 Company profile
EVERESTRUG PRODUCTIONLIMITED
Company Name: Everest Rug Production Ltd.
Address: 20/C Navana Tower
45, Gulshan Avenue
Gulshan-1, Dhaka-1212.,
Bangladesh.
Auditors: M. N. Islam & Company
Chartered Accountants
123/4 Tejkunipara, Tejgaon,
Dhaka-1212.
Bankers of the Group: Southeast Bank Limited.
Standard Chattered Bank Limited.
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2.5 Product line-up
2.6 The Vision & Mission of Everest Rug Production Ltd.
Vision
To become the preferred choice the design of carpet buyers across all segment in the world.
Mission
To be uncompromising in the quality of products and services provided to its valued clientele
while increasing the companys market share in Bangladesh.
2.7 Culture
Everest Rug Production Limited is driven by dynamic, active, flexible culture radically
opposed to fixed bureaucratic management structures, allowing it to swiftly cut through any
barriers that stand in the way of its growth.
Everest Rug Production Limited fosters creativity and entrepreneurship by creating a work
environment where ideas coming from any member of the organization are encouraged, no
matter how small.
If people were to describe Everest Rug Production Limited as a person theyd use words
like innovation, self-motivated, ambitious and initiative-taker.
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Carpet Floor covering
EVEREST RUG PRODUCTION LIMITED
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2.8 The management philosophy or corporate culture
Team work
It is sales based organization so teamwork can bring great success. Activities are like
Multi product offerings
Personalized service
Team is responsible for full delivery
Each team has its own cycle
Developing people
It includes:
Opportunities for students
Chances for fresh graduate
Promotion from within
People are allowed to do what is best for the company, they encouraged being
entrepreneurial and taking risk within a big rules and regulations that expected to follow.
Everest Rug Production Limited also believes that if we dont taker of our customer, some
body else will
2.9 The Departments name of Everest Rug Production Limited.
Sales Department
Accounts Department
Administration
Brand & marketing Department
Training Department
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2.10 Branches of Everest Rug Production Limited
Everest Rug Production Limited, Bangladesh.
Modern Rugs Limited, Srilanka
2.11 Function of the Department
2.11.1Sales Department
This department is divided into three sections like
Private & corporate
Government & tender
Defense
There are some sales team consists of sale remembers in the sales department.
They always try to full fill the target of sales.
2.11.2Accounts Department
All Payable and receivable must approve by the head of the accounted. Company makes an
agreement with the Buyer and in that agreement all things about credit facility, transaction
system of chargeable amount determined. Department head and all this controlled by account
manager must approve so all type transaction agreement.
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2.11.3Design & marketing Department
This department regulated under the supervision of design manager.
Activities are like
Increase the Design image
Overcome the Design parity.
Place the Design name in the right position.
Make easy to recognize it
Some promotional activities like
Advertising: it may electronic media add, Printing media add, which country there doing
marketing.
Sales promotion
Public relations
Personal selling
Direct marketing
2.11.4Training Department
There dose exist a complete training program for Everest Rug Production Limited employee.
If any Department head thinks that the particular employee needs training, then he sent that
employee for training. Besides this when company offer new product then to give ideas to the
sales member it is organized.
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Believing its people are its most valuable asset, Everest Rug Production Limited invests in
building knowledge workers rather than employees. Everest Rug Production Limited train and
empowers its people and prepare them to act as creative solution provider, as entrepreneurs in
their own right. Upon joining the Everest Rug Production Limited team, employees undergo
extensive orientations that familiarize them with the companys business and corporate culture
before they proceed to training in their own department.
Throughout the courser of your employment you will receive a number of internal and
external training courses to polish existing skills and gain new ones. The request for such
training is either initiated by Everest Rug Production Limited or by employees themselves.
2.11.5 Administration
All administrative actives of Everest rug production Limited supervised by the head of the
administration. The administration of the company takes care about all kind of administrative
operation and activities with efficiency. There is an administrative head and some other staffs
to maintain the administrative works.
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2.12 Organization structure of Everest Rug Production limited
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Chairman
Managing Director
Director
Executive vice president
Senior vice president
Vice president
Sales Account Design Commercial
Assistant vice president
Private & Corporate, Sales Tender & Govt. Sales Account & Finance
Senior Executive
Private & Corporate, Sales Tender & Govt. Sales Defense, Sales Commercial
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3.1The Internship Position and Duties
3.1.1: The working area:
My department of internship program is under sales department. So I am fully involved in
sales department. My position was as a sales executive. Every day I have to go office at 9:00
am like all other employees and stay up to 5:30pm. I was attached with Private and corporate
sales of this company. So, the internal workflow of private and corporate sales are describing
as below:
3.2 Work in the Organization:
3.2.1 Incase of individual Sales:
Greet the customer cordially and try to come across the requirement of the customer based
on his emphasize on
Price
Options
Luxury/comfort
o Determine the appropriate Rug for the customer from the product line up:
Entry level, Luxury level, Medium Size Luxury
o Familiarization of the preferred product through catalog/brochure and by physical
demonstration.
o While physical demonstration
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Options
Product Performance
Guaranty
After Sales Service etc. are described.
o If agreed to the price placed by the buyer, collect a formal work order with advance stating
all facts.
o In case of bank (or other types of financial institutions) financing, a quotation is given to
the institution as per discussion and the institution stating all facts provides a formal work
order.
o Registration of the Rug is completed. They dont want to pay any kinds of tax to the
government.
o Physical delivery of the Rug is arranged.
o Submission of performance guarantee and to sign contact if needed.
o Signed the delivery Challan.
3.3 Customer Create:
I have learned how to create a customer and the process like that: This is the first step of a
sales person. At first Sales person gather information about the prospect customer. Then sales
person give him an offer letter which contains all business needed condition and rules and
regulations.
Before giving him an offer letter the rate and all other factors are discussed with customer.
That offer letter contains Different features of the carpet.
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3.4 Customer follow-up:
Sales man always have to follow up the existing customer, always have to take care customer,
because Everest Rug Production Limited believe If we dont Take Care of Our Customer,
Somebody Else Will
I have visited many customers with other sales persons and which I have seen that is Follow-
up means Marking Good Relationship with Customer and exist that good relation with
customer so that he will not diversify to other competitor.
Everest Rug Production Limited fined out the problems that their customers are facing
through the Internet.
I have seen that sales person made as like good relationship with the customer that through the
customer is facing any problem but customer is not going to or diversify to other competitor
but telling about the problem to sales person so that sales person solved the problem. So
follow-up means building the relationship with customer.
3.5 Problem solving:
Some times customer faces various kinds of problem with carpet. Everest Rug Production
Limited has own Service center. Different types of services are provided from the service
center. I have learned how to advise when customer comes with problem.
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3.6 Learning Point:
From Everest Rug Production Limited I have learned many things about official work,
behavior and how to deal with customer. I have learned how to solve a customers problem.
Suppose a customer are facing a problem or wants to know his products present situation then
what I have to do that is, I have to inform it to our customer care division and give
information about product to customer as soon as possible. And I also learn some sales related
rules and techniques and how to make sales. I learn that a sales person always have to be
polite and sincere.
I also learned how to offer to a new client and create new client. This process like this: First a
sales person targets a new client and goes to that person and get information about that target
customer.
This called prospect customer and this information called the prospect information. Sales
person after getting this information make decision about the offer, that means what price or
discount sales will offer to that customer and after deciding sales person take permission from
sales Manager and give offer to that customer.
3.6.1Sales call:
I have learned how to make a customer.
3.6.2Attend show room customer:
I have learned how attend show room customer. Since Everest Rug Production Limited has
own sales point so, different customer come to show room for purchasing carpet. A sales
person should talk with the customer smartly and give information of the product that the
customer will be convinced. It is very important to present him properly.
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3.7 Some things those I have learned from my Internship program:
How to behave in an official environment.
Proper use of time and go with time to time.
To take responsibility.
Banking activities.
Learned value, norms, attitude, and culture, of the Organization.
How to face critical situation.
How to behave with the customer.
How to solve customers problem.
Presentations of own self.
Vast knowledge about different Rug.
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4.1 marketing strategy and its evaluation
Marketing Strategy:
Marketing involves satisfying consumers needs and wants. The task of any business is to
deliver customer value at a profit. In a hyper competitive econo0my with increasingly rational
buyers faced with abundant choices, a company can win only by fine-tuning the value deliveryprocess and choosing, providing, and communicating superior value.
Everest Rug production Ltd always tries to satisfy customers according to there needs and
wants. Now the value delivery process of Everest Rug production Ltd is as follows-
4.2 The value delivery process:
The traditional view of marketing is that the firm makes something and then sells it
(According to figure). In this view, marketing takes place in the second half of the process.
The Everest Rug production Ltd Company knows what to make and the market will buy
enough units to produce profits. Companies that subscribe to this view have then best chance
of succeeding economies marked by goods shortages where consumers are not fussy about
quality, features, or style.
Value creation and delivery sequence:
Choose the value Provide the value Communicate the
valueCustomer
segmentation
Market
selection
/
Value
Product
development
Service
development
Pricing
Sourcing
Making
Distributing
Servicing
Salesforce
Sales
promotion
Strategic marketing Tactical marketing
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As the figure shows the value delivery process begins before there is a product and continues
while it is being developed and after it becomes available. The Everest Rug production Ltd
has further refined this view with the following concepts:
Zero customer feedback time: The Everest Rug production Ltd provides zero
Customer feedback time continuously after purchase to learn how to improve the
product and its marketing.
Zero product improvement time: The Everest Rug production Ltd evaluate all
improvement ideas and introduce the most valued and feasible improvements ads soon
as possible
Zero purchasing time:The Everest Rug production Ltd receives the required parts
and supplies continuously through just-in-time arrangements with suppliers. By
lowering its inventories, the company can reduce its cost.
Zero setup time:The Everest Rug production Ltd is able to manufacture any of its
products as soon as they are ordered, without facing high setup time or cost.
Zero defects:The product of Everest Rug production Ltd is of high quality and free
of flaws.
4.3 The value chain:
The Everest Rug production Ltd examines its cost and performance in each value creating
activity and to look for ways to improve it. The Everest Rug production Ltd estimates its
competitors cost and performance as benchmarks against which to compeer its own cost and
performance.
The Everest Rug production Ltd Companys success depends not only on how well each
department performs its work, but also on how well the various departmental activities are
Coordinated to conduct core business process. This core business process include:
The market sensing process: All the activities involved in gathering market
intelligence, disseminating it within the organization, and acting on the information.
The new offering realization process: All the activities involved in researching,
developing, and launching new high-quality offering quickly and within budget.
The customer acquisition process: All the activities involved in defining target markets
and prospecting for new customers.
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The customer relationship management process: All the activities involved in building
deeper understanding, relationships, and offerings to individual customers.
The fulfillment management process: All the activities involved in receiving and
approving orders, shipping the goods on time and collecting payment.
The Everest Rug production Ltd also follows some strategies, which are followed by
different companies. This are-
4.4 Making Marketing plan:
The present document continuous the basic principles of crises procedures as included in
the Everest Rug Production Limited employers guide and some crises communication andmedia relations guidelines aimed at helping Everest Rug Production Limited employers
unexpected crises.
The guideline explains the public relation department procedures for handling media and
internal contacts during. Fooling sequential had to do.
4.5 Brand positioning: Advertisement in the news paper
Advertisement in the media and news
Advertisement in to out door signs
Direct Marketing-distribution of stickers etc.
4.6 To build Revenue:
Projects and programs
Special discounts offer
Distribution of gives away to customer/linkage industry customer/reception
4.7 To make public relation:
Press relies
Sponsoring national events
Display signboard in national events
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Sponsoring different publication for different charitable organization
4.8 Marketing intelligence:
Customer satisfaction survey
Customer comments
Market information through different publication on macro micro label industry.
4.9 Advertisement
This is prepared by a business to disseminate information about product or service to be sold.
The message is controlled by the business space is paid for. A relatively new phenomenon is a
cross breed of news story and advertisement. Businesses buys space in a supplement or in the
general publications in return, articles are prepare that highlight a product or service or
industry. Or an advertisement is designed to look like articles but is usually labeled as an
advertisement to alert readers that it is espousing a certain issue or product and it is not
journalistically objective. The message are controlled and published.
4.10 Delivering message:
A companys message can be delivered to the media in a verity way there are some common:
Phone calls
Interviews
Internal luncheon/briefing
Press release or press kit
Press conference
Latter to editor
Each of these methods is appropriate at different time and for different purpose.
4.11 The workflow of the Marketing Department is following:
Developing marketing plans and strategies to maximize Everest Rug Production
Limited brand awareness and visibilities in foreign countries.
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Take care of Everest Rug Production Limited brand promotional activities.
Carry out market research, customer satisfaction survey.
Collect and review information on market, top competitors.
Develop and distribute marketing handout, promotional items.
Proper budget and arrange expenses.
Complete product and report when required.
4.12 Marketing objectives:
To increase sale by specific within one year.
To offer the highest customer service in the industry.
Analysis of SOWT for service marketing.
Developing specific marketing strategies.
Developing implementation program from marketing strategy.
Devising control of marketing plan.
Analysis of the internal source and capabilities.
Analysis of the capabilities of external forces and their effect on the services
marketing.
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4.13 The four Ps of the marketing mix
Target
Customers
Intended
Positioning
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Product
Variety
Quality
Design
Features
Brand name
PackagingServices
Price
List price
Discounts
Allowances
Payment period
Credit terms
Promotion
Advertisement
Personal selling
Sales promotion
Public relations
Place
Channels
Coverage
Assortments
LocationsTransportation
Logistic
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From the buyers viewpoint, in this age of customer relationships, the four Ps might be better
describe as the four Cs
Customer solution
Customer cost
Convenience
Communication
Customer solution: The Everest Rug production Ltd solute customers problems
instantly and take care of the problems with responsibilities. When any customer complainsabout any product the company within a short time tries to solve the problem.
Customer cost: The Everest Rug production Ltd values the customer cost. The company
determines their goods with such price that fulfill the values of the customers.
Convenience: The Everest Rug production Ltd always makes products, which are
convenient for their customers.
Communication: The Everest Rug production Ltd looks after the availability of
transportation for the customers.
4.14 SWOT Analysis ofThe Everest Rug production Ltd:
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The SWOT analysis comprises of the analysis of the organizations internal strength and
weakness and the external opportunities and threats. Such an analysis gives an organization an
insight of what they do in future and how they can compete with their existing competitors.
This tool is very important to identify the current position of the organization relative to
others, who are involved in the same kind of business and also widely used in the strategic
analysis of the organization.
The SWOT analysis stands for:
S= Strengths
W= Weaknesses
O= Opportunities
T= Threats
4.14.1 InternalStrengths:
The strong management team and diversified workforce: The Everest Rug
production Ltd has a strong management team and diversified workforce. This is one of the
biggest advantages of The Everest Rug production Ltd.
Environmental facilities available: The Everest Rug production Ltd has a great
environmental facility. As Bangladesh is jute producing country the company gets a great
advantage of low cost raw materials and for over population the labor cost is also very low.
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Ability to make decision quickly: As the company has a strong management team it has
ability to make decision quickly. When any problem occurs the management team very
rapidly can solve it through strong management skill.
Globally Recognized Brand: The Everest Rug production Ltd is one of the biggest
organizations in Bangladesh. It has created a great image into peoples mind by producing high
quality of products. Whenever the buyer see that this is a product of The Everest Rug
production Ltd then without further inquiry they buy it. Because it has created a reputation
about the quality of its products to the customers mind. This benefit is directly going to the
Everest Rug production Ltd
100% export oriented company: The Everest Rug production Ltd is a 100% export
oriented company. This is possible sonly for its high quality of jute yarn is produced by it. It
has already established a good reputation to the foreign markets that its produced goods are
international quality standards. Whatever amounts it sales, it is done in advance.
Enough fixed assets: Another comparative advantage ofThe Everest Rug production Ltd
Has enough fixed assets related to its existing competitors. The company currently owns lots
of fixed assets, such as lands, buldings, vehicles and other properties.
Optimum level of production:The Everest Rug production Ltd is able to produce jute
goods of its optimum level of production capacity. 24 hours the mills remain in production.
So, it is in the highest level of production capacity obtained by The Everest Rug production
Ltd.
4.14.2 Internal Weaknesses:
Lack of employees performance monitoring system: The Everest Rug production
Ltd has poor monitoring system whether employees are performing their jobs properly or
not. They may spend their office time in unproductive purposes. Employees are coming to the
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office but the company didnt know what activit6ies they are doing in office. Another thing is
lack of accountability of its employees to management.
Lack of strategy for developing new jute products: The Everest Rug production Ltd
is not trying to develop new jute products. It is producing only its existing product, which is
jute carpet. Since there is a huge demand for different type of jute made product in the world
market. So, The Everest Rug production Ltd should develop different types of jute products.
Loss of potential coverage:As The Everest Rug production Ltd is producing optimum
level of output but the market is demanding more than that level of output. So, The Everest
Rug production Ltd is losing its potential markets and also unable to coverage the most. To
meet up this market demand The Everest Rug production Ltd should increase the level of
output by expanding production capacity and also to setup modern machineries.
Lack of networking and communication system: Lack of networking and
communication system is one of the major weaknesses of The Everest Rug production Ltd.
Strong networking and communication system is a prerequisite for performing jobs efficiently
and effectively. At present, a company has to establish information technology in order to
compete with existing competitors. Because now information is a big strength, which provides
currently updated latest business information to the company bringing from the business
world. In this case, The Everest Rug production Ltd is far behind from the IT. As a result, it
is losing lots of information which maybe helpful to the company.
Low extends of product line:The Everest Rug production Ltd has only produced one
types of product line such as carpet. Whereas other carpet industry is divided into various
lines of product.
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Lack of administrative structure:Lack of administrative structure is another weakness
for The Everest Rug production Ltd. Its administrative department is not highly established.
They need to modernize it. The Everest Rug production Ltd is a big organization in
Bangladesh but its administrative department is not able to do so many works effectively andefficiently. To fulfill this objective, The Everest Rug production Ltd needs to restructure of
its administrative department.
4.14.3 External Opportunities:
Developing new products: ERPL may develop new jute products to capture the world jute
marker. As Bangladesh has the worlds finest quality of jute fibers so ERPL can easily use
these opportunities.
Emerging new modern technology:In the modern world technology is advancing day by
day. ERPL has taken it as an opportunity. Now ERPL has there capability to use any emerging
new technology.
Establish carper-manufacturing plant:another opportunity for ERPL is to establish a
carpet manufacturing plant in Bangladesh. There is a huge demand for carper allover the
world. BJMC is the major carpet manufacturer in Bangladesh. But its carpet doesnt fulfill the
satisfactory level, because of quality like color, design, fabric, sewing and thread not up to the
standard as consumers want. BJMC maid carpet, from jute but its color is not good. Thats
why BJMCs produced carpet didnt get market till now. Except BJMC, there are few carpet
manufacturers who produce carpet, they have same problems as BJMC has. So it is a great
opportunity for ERPL to establish a carpet manufacturing plant by using modern carpet
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making technology, high quality raw materials, and also develop R & D department for carpet
plant.
Source of the best quality of raw jute: as Bangladesh has the finest quality of jute fibersso ERPL has an opportunity to use the best quality of raw jute for the production of highest
grade of jute yarn and twine which will be greater demand in international market. As a result
it can ultimately capture the market share oft jute yarn and twine.
Increase environmental consciousness:Day by day people are become more conscious
about environment. Now they are trying to avoid synthetics uses. As a result ERPL may use
this factor as an opportunity to produce pollution free products.
4.14.4 External threats:
Substitute products of jute: Substitute product of jute like polypropylene is the mainthreat for the jute industry. Because polypropylene looks nice, cheaper and more comfortable
than jute. It is also environmental friendly like jute. As a result, polypropylene taking the
market of jute and becoming more popular to the consumer day by day. Now days,
polypropylene are the largest selling substitute products of jute.
Trade union: Trade union is the second, largest threat for ERPL. New as well existing
entrepreneurs are discouraged to establish industry in our country for the devastating role of
trade union. Because it is a major obstacle for industrialization and sometimes it controls the
industry regulated by the trade union. It is deemed that the main activity of our trade union is
to do strike, block and also engaged in different destructive activities in the industry. So the4
luck of the industry depends on them.
Existing competitors: When large number of company performs their operation in a
specific industry then competition will be very high in that industry. And it is also very
difficult for newly established industry to compete with the existing competitors.
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Political instability: Political instability is another threat to the ERPL. The political teams
are biasing political leaders. Political leaders are very much sensitive against their opposition
parties activities and they have habit to declare strike. This activity damages our propertiesand all industries remain shutdown. As ERPL miss 100% export oriented organization, so
political activities are seriously affects its production and overall activities.
Changes in gove4rnment policy:Science government is doing business in jute sectors, so
any change in the government policy has its impact over the profitability return of the project.
Any government policy that may increase interest rates, Excise duties may affect carpet
industry. So before taking any desition at first ERPL has to consider that government is
involved in this sector.
4.15 Market segment strategy:
A market segment consists of a group of customers who share a similar set of needs and
wants. Market segment can be defined din many different ways. One way to carve up a market
is to identify preference segments. Three different patterns can emerge:
Homogeneous preference: A market where all the consumers have roughly the same
preference. The market shows no natural segments. We would predict that existing
brands would be similar and cluster around the middle of the scale in both sweetness
and creaminess.
Diffused preferences: All the other extreme consumer preference may be scattered
throughout the space, indicating that consumers vary greatly in their preference. The
first brand to enter the market is likely to position itself to appeal to the most people.
A second competitor could locate next to the first brand and fight for market share, or
it could locate in a corner to attract a customer group that was not satisfied with the
center brand. If several brands are in the market there likely to position themselves
throughout the space and show real difference to match difference in consumers
preference.
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Clustered preference: The market might reveal distinct preference clusters, calls
natural market segments.
Homogeneous preference
Creaminess
Sweetness
Diffused preference
Creaminess
Sweetness
Clustered preference
Creaminess
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Sweetness
4.15.1 Niche marketing: A niche is a more narrowly defined customer group seeking a
distinctive mix of benefits. Marketers usually identify niches by dividing a segment into sub
segments. An attractive niche is characterized as follows: The customers in the niche have a
distinct set of needs; they will pay a premium to the firm that based satisfies their needs; the
niche is not likely to attract other competitors; the nicer gains certain economies throughspecialization; and the niche has size, profit and growth potential whereas segments are farley
large and normally attract several competitors. Niches are fairly small and normally attract
only one or two.
4.15.2 Segmenting consumer markets
Two broad groups of variables are used to segment consumer markets. Some researchers try to
from segments by looking at descriptive characteristics: geographic, demographic and
psychographics. Then they examine whether this customer segments exhibit different needs or
product responses.
4.15.3 Geographic segmentation:Geographic segmentation cause for dividing the market
into different geographical units, such as- nations, states, regions, countries, cities or
neibourhoods. The company can operate in on or a few areas or operate in but pay attention to
local variations.
4.15.4 Demographic segmentation: In demographic segmentation, the market is divided
into groups on the basis of variables such as age family size, family life cycle, gender, income,
occupation, education, religion, race, generation, nationality and social class. There are several
reasons for the popularity of demographic variables to distinguish customer groups. One
reason is that consumer needs, wants, and usage rates and product and brand preference are
often associated with demographic variables. Another is that demographic variables are easier
to measure. Even when the target market is described in non-demographic terms (say, a
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personality type), the link back to demographic characteristics may be needed in order to
estimate the size of the market and the media that should be used to reach it efficiently.
4.15.5 Psycho graphic segmentation:Psychographics is the science of using psychologyand demographics to better understand consumers. In psycho graphic segmentation, buyers are
divided into differe4nt groups on the basis of Psychological/ personality trades, life style, or
values. People within the same demographic group can exhibit very different Psycho graphic
profiles.
4.15.6 Behavioral segmentation: In behavioral segmentation, buyers are divided into
groups on the basis of their knowledge of, attitude toward, use of, or response to a product.
Findings
On the basis of exporting business, Everest Rug production Ltd was established in Bangladeshto operate business activities with efficiency. It is not a new business system in Bangladesh.
Everest Rug production Ltd is operated according to Turkish mother factory where carpet is
produced with fine quality. In the modern world people are very much aware of environmental
healthiness. So the activities of the company are done reminding the welfare of the people and
simultaneously the environment. During the internship I have got the following findings of
Everest Rug production Ltd. Those are given bellow:
Strong total quality management
Strong financial strength.
Lack of promotional activities.
Lack of product diversification than competitors.
Lack of monitoring and controlling system.
Reward successful program implementation.
Adopt new design to its manufacturing process.
It produces 100% export oriented carpet.
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Everest Rug production Ltd produces high quality carpets.
It produces optimum level of production.
It has lack of employee performance monitoring system.
Low extent of product line.
Low monitoring capability.
Quality is of international level.
Conclusion
ERPL services for excellence in all endeavors. ERPL sets its goals to achieve customer
satisfaction and to deliver defect free products on time, which service second to none.
Implementation of this policy makes it essential that each person is committed to perform
exactly as required. It is ERPLs basic operating philosophy to concentrate on prevention
methods to make quality a way of life and perpetuate and attitude of Do it right the first
time. With this approach ERPL will continue to demonstrate to its customers that they are
reliable partner.
Analysis of production and exports problems and prospects of carpet is not so sufficient to
measure and express perfectly within this short time of my internship period. But it is a great
opportunity for me to get and use with the operational environment of ERPL. I have tried hard
and soul to incorporate the research report with necessary relevant information.
A number of reasons so far expounded for and against will keep the battle going between jute
and synthetic backing. One fact is very clear that synthetic backing is well established toprovide the total needs of primary backing for the tufted and needle punch carpets. The
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industry is primarily based on agriculture for its raw materials. Another biggest headache of
the industry and an important one has been the price of carpet backing and its changing
pattern necessitated by the factors already started plus the extra cost involved for meeting
maximum price of raw jute, export duty, export inspection fee etc.
On the marketing side, product specifications need to be reexamined and redesigned to take
account of new technology. Production methods and cost need to be reviewed and reduced. To
develop0 new products or alter existing specification demand access to end users their needs
can be recognized. To reduce production expense it is necessary to utilize modern production
methods. To reduce unit labor and energy costs, and to ensure profitable industry into the
future, ERPLshould procure efficient personnel.
During the course of my practical orientation I have tried to learn the strength of ERPL and
what could be the future threats for ERPL. And I have also tried to relate it with my
theoretical knowledge what I have gathered and going to acquire from various academic
courses.
Recommendation
Carpet Industry is fully export oriented agricultural based jute product producing industry.
The role of jute is very important for the economic development of Bangladesh. Although
carpet product export is decreasing relatively, it is deemed the third largest foreign exchange
sector in Bangladesh. For economic development of the country especially development of
rural peoples lifestyle is largely dependent on jute to keep the existence of jute and carpet
industry, government has to come to take the following steps immediately.
To flourish the issue of the jute yarn, I have identified that they have some vacuum in this
industry that need to be fulfill and lead us to find out several recommendation, which could be
effectively give a solution to boost up its existing performance. This recommendation is as
follows:
Determine the interest rate of current capital loan
Distribution assistance or subsidy.
Structuring carpet sector program.
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Diversify jute products
Ensure the use of carpet goods.
Omit pick hour rate of electricity
Enlarge market for carpet in a foreign country
Need for increasing using more domestic jute
Implementation
Implementation entails converting the recommendations into action and then into go for
results. Its a job for the whole management team of private carpet mills as well as
government of Bangladesh and for ERPL. It requires group work to work out the plan
effectively. While ERPLs head of the divitions, and key operating units are ultimately
responsible for seeing that new plan and product has been developed successfully. The
development process typically impacts every part of the organizational structure.
Implementation strategy is fundamentally an action oriented, activity developingcompetencies; capabilities, budgeting, policy making, motivating, culture building and
learning are key parts of the process.
Sizing up a firms resouces, strengths, and weekness and its external opportunities and
threats are commonly known as SWOT analysis that provides me a good overview of
whether ERPLs all departments are efficient enough to expand the market and clutch
huge market shaqre. Implementation or action plans should broadly considered the SWOT
analysis, which is grounded in the basic principle that strategy making efforts must aim at
producing a good fit betweem ERPLs production department and resource capability is
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external situation. Without implementing all these, the task of conceiving a strategy
becomes an uncertain proportion in deed. Following steps can be used to overcome the
problem:
Total quality management. (TQM)
Financial strength
Increase promotional activities
Product diversification from competitors.
Monitoring and controlling.
Reward successful program implementation
Adopt new design to its manufacturing process.
Bibliography
Reference Book:
. Cooper, Donald R. and Pamela S, Schindler (1998). Business Research
Methods, ed. Sixth Boston: MC Graw-Hill.
. Kotler, Philip. (1994). Marketing Management Analysis, ed 8th. New
Delhi: Prentice Hall of India Pvt. Ltd.
. Zikmund William G (2000). Business Research Methods, ed. Sixth.
Philadelphia: The Dryden press Harcourt College Publishers.
Internet:
Web address + Visiting date and time: http://www. koker.com
Visiting Date Visiting time
1 20-11-2008 9 am - 1 pm2 25-11-2008 2 pm 4 pm
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3 10-12-2008 11 am- 3 pm4 22-12-2008 10 am- 1 pm5 07-01-2009 9 am- 12 pm6 19-01-2009 2 pm 4 pm7 26-01-2009 11 am- 3 pm
8 06-02-2009 10 am- 1 pm
Other Reference:
1. Annual Report ofERPL
2. Special workforce of ERPL.