final main file updated 17-08-2016
TRANSCRIPT
1 | P a g e
CHAPTER ONE
INTRODUCTION
1.1 Introduction
Marketing is very important to the success of a business. Before people can
buy a product or service they have to know about it. However, marketing
entails more than just letting people know what your company has to offer.
Throughout this paper, I will define marketing, offering my personal
definition as well as more formal definitions from other sources.
Furthermore, I will explain to the reader the importance of marketing to
organizational success giving real world examples in support of this
explanation. The field of marketing can include many things. I believe,
however, the most important thing which it should include is communication
with customers as to the value and benefits of using that particular
company's products and services. It should help to establish the business's
niche in the industry and distinguish it from other such businesses.
Companies in this industry make paper and converted paper products,
including paperboard, corrugated and paperboard containers, coated papers,
and paper bags. Major companies include Georgia-Pacific, International
Paper, Kimberly-Clark, Neenah Paper, and West Rock (all based in the US), as
well as Domtar (Canada), Oji Holdings (Japan), and Stora Enso (Finland).
Bashundhara Group. (The "Company") was incorporated in Bangladesh as a
Public Limited Company with limited liability on 8, March 1994 and
commenced commercial operation in 1995 and also went into the public
issue of shares and debentures in the same year. The shares of the Company
are listed in the Dhaka and Chittagong Stock Exchanges of Bangladesh.
2 | P a g e
1.2 IMPORTANCE OF THE STUDY
Many valuable opinion and feedback have been came out through the survey. If
company gives emphasis on the opinions and feedback received from the
customers, customer will stay satisfied and become loyal to Bashundhara Group.
Society can be aware regarding product, price and marketing strategies of
Bashundhara Group
Target customer can be more aware regarding of Bashundhara Brands.
Target customer will be aware regarding the available promotional activities
regarding Bashundhara.
1.3 OBJECTIVES OF THE STUDY
The main objective of this thesis is to analyse the marketing mix of Bashundhara
paper products to achieve the main objective, the study covers the following
specific objectives:
To identify and analyze marketing mix aspects of Bashundhara paper
products
To highlight the company profile of Bashundhara paper products to identify
the strength and weakness of the marketing of Bashundhara paper products.
To reveal the position of customer view on Bashundhara paper products in
Bangladesh.
To find the problem and make the recommendations for solving the problems.
3 | P a g e
1.4 METHODOLOGY OF THE STUDY
• Source of Information:
A) Primary sources
Primary data have been collected by interviewing the Dealers and Sales Executives by questionnaire & oral conversation with the respective personnel’s of distribution.
B) Secondary sources
Secondary data have been collected from the previous studies on distribution channel of the company, different texts, research findings, magazines, articles etc.
The Research Methodology: In the procedure of primary data collection three approaches were used and these are:
•Questionnaire
•Personal interview
•Observation method
While collecting the primary data the instant response were found and it was possible for me to observe the real situation.
Analysis: The collected data were they analyzed and findings were placed in different chapters.
1.5 SCOPE OF THE STUDY
4 | P a g e
Masters of Business Administration (MBA) is a professional course. The
course is designed with an excellent contribution of both theoretical and
practical aspect- After completion of the theoretical course a student is
required to work for gathering practical knowledge to anywhere base on
his/her major area so that it can be aware of that one. According to choice I
was in marketing.
During the period of MBA program I have communicated with all person of
the entire firm. That is why in short I can say that I had a great competency to
have an in depth knowledge of the overall operational activities and
functions practices by marketing.
1.6 Limitation of the Study
Marketing department is very sensitive area and it has a very few scope for
the internship student to do work. Most of the works area based on online
and software system for that data collected from face to face conversion and
some hand out provided by the investment officer.
Limitations of the thesis are as follows:
Limitation of time was one of the most important factors for collecting data. A longer time period would have ensured to collect more information in details.
Information secrecy is one of the most critical problems. Disclosing of information in a marketing institution is highly restricted. This hinders to describe the divisional activities in details.
Due to lack of experience, there is a chance of having some mistake in the thesis but Best effort has been applied to avoid any kind of mistake.
Bashundhara Group is not furnished with adequate written document related to this thesis.
5 | P a g e
2.1 Background of the company
The Bashundhara Group has started operation as a real estate venture
known as “Bashundhara” under the tutelage of the Group’s first concern- The
6 | P a g e
CHAPTER TWO
OVERVIEW OF BASHUNDARA GROUP
East West Property Development (Pvt) Ltd in 1987. This project turned out
to be a very successful one and had helped to grow the trust and confidence
of the urban people in “Bashundhara”. Dhaka’s soaring population, coupled
with a visibly slow growth of housing led to the landmark success of
Bashundhara. Driven by the upshots of this success, Bashundhara geared up
to invest in new fields, including manufacturing and trading. More
enterprises were established in the early 1990s, covering diverse activities
involving the production cement, paper and pulp, tissue paper, steel, LP Gas
bottling and distribution, and a trading company, among others. The group
experienced this tremendous growth in a span of less than 10 years. During
this period, additional schemes on land development and real estate were
launched and those projects focused more sharply on increasing
responsiveness to client needs. The Group’s first publicly-traded company,
the Meghna Cement Mills Limited, is currently listed on the two stock
exchanges of Bangladesh. The Group has over 20 major concerns located in
different areas of the country. The multi-faceted shopping mall and
recreation center called the Bashundhara City has added splendor to the
growth of the group. The Bashundhara City Development Ltd is one step
ahead in the longstanding growth to strengthen links with the general people
through the unique offering of commercial operations and recreation
facilities under single roof. East West Media Group Ltd is the mass media
enterprise of the Bashundhara Group that was established in 2009. It now
owns Bangla dailies- “The KalerKontho” and “The Bangladesh Pratidin”,
English newspaper the “Daily sun” and bilingual online portal
“Banglanews24.com”. The media house is also planning to launch aFm Radio
and a television channel soon. The group has come a long way in reaching
these goals by listening to client needs, learning real-time lessons from past
projects, innovating and partnering. Through major investment
undertakings, Bashundhara has meaningfully contributed to the economy’s
stability in financial and capital markets. Underlying all of the group’s
activities are the common threads of change, flexibility and fostering closer
ties with the Government, the City Corporation and their clients. Most of its
projects have been success stories- this fact alone is enough to justify a sense
of confidence in the Group’s future.
7 | P a g e
2.2 Mission and VisionThe era of information and communication technology has changed the
world with a fraction and now communication has emerged as the key to
trade and development. The rapid development of information and
communication technology has turned the world into a global village.
Moreover globalization and its all universal impacts on stated and their
economics have made life more competitive, compels and technology driven.
Proximity has turned meaningless as the world is now on the tip of a finger
and economy is the ultimate focus of a nation. Inter-state trading
dependence, investment potentials and free flow of information and raw
materials have made the world thriving on the edge of competitiveness. Now
‘staying competitive’ is the key to survival in today’s world of business where
quality rules and standard products and services sneak in shedding physical
boundaries. Now, the recent global recession and its impacts have shown yet
another challenge and the bitter side of the globalization. But despite the
global challenges and its impacts on local economy, Bashundhara Group has
kept on its forward march with visionary goal, best use of its human
resources and meticulous planning. Varied range of products with ensured
standard, quality services and most effective managerial efficiencies have
made the company a market leader in the respective sectors of its operation.
Keeping main focus on business expansion and growth in the most
prospective sectors, the group is continuously taking up projects to make it
the largest conglomerate in the business arena of Bangladesh despite fast-
changing business trend and tricky situation. The company’s aims and
objectives have always remained the same- to serve people with maximum
satisfaction and keep on working for the greater welfare of the people and
the country. Still each and every Bashundhara Group companies care for
their clients as their obligation and customer satisfaction remains the key to
their success. The established mission and visions of Bashundhara group are
so far like this-
Creating affordable housing for the people.
Fostering better living environment and pleasant surroundings
Ensuring environmental balance and sustainability
8 | P a g e
Using re-cycled raw materials in industry
Developing a meaningful partnership with others for development
Providing a better work condition for the staff members.
2.3 Organogram of the organization
9 | P a g e
2.4 Major Concerns
10 | P a g e
Chairman
Vice chairmanVice-ChairmanVice-ChairmanVice-Chairman
Managing Director
Assistant Managing Director
Sr. DY Managing Director
DY Managing Director
Director
Co-Chairman
The Group now has over sixteen major concerns. These enterprises are-1. East West Property Development Ltd
2. Meghna Cement Mills Ltd
3. Bashundhara paper Mills Ltd
4. Bashundhara LP Gas Ltd
5. Bashundhara City Development Ltd
6. Bashundhara Steel Complex Ltd
7. Bashundhara Industrial Complex Ltd
8. Bashundhara Steel and Engineering Ltd
9. Bashundhara Logistics Ltd
10. Bashundhara Foundation
11. Bashundhara Convention Center
12. Bashundhara Dredging Co. Ltd
13. Bashundhara Technical Institute
14. Bashundhara Food and Beverage Industries Ltd
15. Sundarban Industrial Complex Ltd
16. Bashundhara Cement Industries Ltd
17. East West Media Group
2.5 Employment The Group has currently 8100 employees. Besides direct employment they
are going to generate some new system of employments.
2.6 Wealth
Current value of the total assets of the enterprises of Bashundhara Group
would be about Tk 15000 million which is equivalent to approximately US
$300 million. Total turnover of the business amounts to around Tk 16000
million equivalent to US $ 325 million.
11 | P a g e
12 | P a g e
CHAPTER THREE
MARKETING ASPECTS OF BASHUNDHARA GROUP
Sources of raw materials:
In Bangladesh, three main sources raw materials are used to manufacture
paper are Wood account for 30%, Waste Paper 39% and Agro based Raw
Materials 31%. The current Global requirement is to protect the environment
and saving of trees to control Global warming which is the threat to mankind.
Khanna Paper Mill is responding to this call of the day and using Paper
recycling process to cater the need of paper. Paper recycling is the process of
turning waste paper into new paper products. There are three categories of
paper that can be used as feedstocks for making recycled paper: mill broke,
pre-consumer waste, and post-consumer waste. Mill broke is paper
trimmings and other paper scrap from the manufacture of paper, and is recycled
internally in a paper mill. Pre-consumer waste is material which left the paper mill
but was discarded before it was ready for consumer use. Post-consumer waste is
material discarded after consumer use, such as old corrugated containers (OCC), old
magazines, old newspapers (ONP), office paper, old telephone directories, and
residential mixed paper (RMP). At Khanna Paper Mills we produce the finest quality
wood free and chlorine free paper with state of art technology and machines. The
Paper products can be used for making Note Books ,Text Books, Novels,
Examination Material, Envelopes, Computer Stationery, Annual Reports, Journals,
Diaries, Leaflets / Mailers, Calendars, Writing pads, Photocopying etc.
A lot of papers disintegrate when put in water. For some papers this is not a
problem. For hygienic papers that would be a disaster. Certain papers are therefore
treated with wet strength agents, for instance so that a paper handkerchief does not
break just after you sneeze your nose into it (imagine what could happen in the
toilet).
Following raw materials used in papermaking will be described
Fibres
Water
Fillers
Retention aids
Dyes
13 | P a g e
Fluorescent whitening agents (FWA) Sizing agent
Starch
Wet strength agent
Other auxiliary chemicals used to influence paper properties
Product:
Bashundhara paper is a product which promises to provide its customer the best
experience of having virgin pulp all through the year.
The Bashundhara A4 Paper ( Glossy wrapper )/Demy printing paper/Exercise
book(bound binding) is fulfilling the need of customers by providing a Superior
quality for daily Official activity and Educational activity.
(b) Product Quality:
A quality product is difficult to define as it will mean different things to each
consumer. The challenge for all firms is to set their quality level and ensure that it
meets the expectations of their target market. In general quality is made up of
tangible features (features that can be seen) e.g. performance, appearance, strength
and intangible features such as reputation and exclusivity. In all circumstances a
product's quality should be consistent with other elements of the marketing mix.
For example a premium based pricing strategy will require a quality product to
support the price tag.
Examples of Tangible Quality Features:
Reliability
Performance
Durability and strength
Appearance and finish
Longevity
Examples of Intangible Quality Features:
Product reputation
Celebrity Endorsement
Public image of the product, brand or company producing it
The product is viewed as an exclusive item, difficult for most people to
access or buy
14 | P a g e
Benefits of Quality:
There are many benefits of having procedures that produce quality goods
and services, including:
Increase in sales
Good business reputation
An advantage over competitor's products
Option to charge a higher price than competitors with "lower" quality
products
Reduction in overall business costs due to less wastage and rectification
(c) Product Packaging:
Packing refers to the designing and the container or wrapper for a product. It is one
of the tools that can attract consumers to buy the product. BASHUNDHARA also do
their packaging very well. The Bashundhara A4 paper page color is blu, pink,
yellow, green and packaged in such a way that it looks attractive to the consumers
and Bashundhara also ensures the safety of this product by packaging it.
Bashundhara paper products information
15 | P a g e
(Source of interviewing dealer by questionnaire)
No.
Name Quantity
Basic Raw Materials.
Carton size
Price Gem MRP
1. Bashundhara A4 paper(8.25”*11.75”)
100 sheet500 sheet
100% virgin pulp
Glossy WrapperMaster carton( 5 Rim)
270/-, 250/-,185/-
80,70,65
-
2. Bashundhara legal paper(8.5”*14”)
500 Sheet
100% virgin pulp
Glossy WrapperMaster carton( 5 Rim)
250/- 70,65 -
3. Demy white printing paper(10.5”*17”) (11”*17.5”)
500 sheet
100%virgin pulp
- 290/-,185/-
- -
4. Exercise Book(small)
BDK 100
100%virgin pulp
144p 19.36
- 25/-
5. Exe.Book(medium)
124p 100%virgin pulp
72p 32.67
- 42/-
16 | P a g e
6. Exe.Book(medium)
164p 100%virgin pulp
72p 36.59
- 48/-
7. Sperial 164,200p
100%virgin pulp
72p 41.8251.82
- 55/-65/-
8. Kids 124,204p
100%virgin pulp
144p 15.4219.32
- 20/-25/-
This is Bashundhara multi paper industries ltd (BPIL).commences its
commercial operation in july,2015.to meet the increasing demand of paper
product both in domestic and international market .Bashundara Group
installs the 2 paper machines with a capacity per year 2.1 million tons .about
50%(1million tons) outcomes of the whole production capacity of the is
printing unit and A4 paper and the rest is coated and lightweight coated
paper. the unit will run the own power generation support of 25.5 megs watt
capacity.to produce the quality paper with competitive price, wet ground and
precipitated calcium carbonate .year of inception 1993(production
started 1997) yearly production capacity 35000mt.Location
Meghnaghat,sonargaon,Narayangonj.products
All kinds of paper products has also be installs .the contemporary unit added.
Another one was install year of inception 1995 ,unit-3 in munshigonj district
This table shown only for A4 paper, demy paper, All khata SKU.
Table: Sales records of Bashundhara paper products:
(Source of interviewing regional sales manager by questionnaire)
(Sales flow over the year)
17 | P a g e
Year Domestic sales Overseas sales
2011-2012 58500MT 20000MT
2012-2013 65700MT 31100MT
2013-2014 75000MT 42500MT
2014-201580000MT 50000MT
Total Sales record
Name Production capacity Domestic sales(yearly)
Overseas sales(yearly)
Bashundhara paper mills-1 35000MT
80000MT 50000MT
Bashundhara paper mills-3 100000MT
(Source of interviewing regional sales manager by questionnaire)
*Bashundhara Group has been exporting over the 19 countries around of the
world" With its products of international standards, BPML has already made
a mark on the overseas markets in exporting paper and paper-made
products, alongside catering to the domestic demand," says a news release.
18 | P a g e
Presently, BPML exports paper and paper-based products to some Asian and
African countries like India, Sri Lanka, the UAE, Mauritius and Tunisia.
"Initially, Dynamics Gulf of the UAE will take minimum 500 tonnes of
Bashundhara tissues from us. It will be a big attainment of our economy,"
says MostafizurRahman, deputy managing director of Bashundhara Group.
"We hope that the export volume will increase further," he added.
.Bashundhara Paper Mills Ltd (BPML), a concern of Bashundhara Group, one of the largest business conglomerates of the country, will export at least 500 tonnes of tissues to theUnited Arab Emirates per month in spreading the company's wings far wider.Bashundhara Group has recently exported its colour paper, carbonless paper, linear paper and craft paper as well as tissue products to Sri Lanka.Bashundhara Group is exporting 48 metric tonnes of carbonless paper to the printing department of Sri Lankan government in the opening consignment.Even, it has succeeded in exporting paper under public procurement to Sri Lanka only because of its paper quality.Bashundhara Group is trying to enter the African destinations as the region is considered as a potential global market.The company hopes to strengthen the country's economy by investing a great deal of effort in exporting its products to the international market.PriceAt first Bashundhara paper products introduces itself to the market they set market skimming pricing because they had the quality product. They set high price for Bashundhara paper product. till now they are following skimming pricing strategy then other existing brands As everyone knows that the market is price sensitive that’s why Bashundhara paper products should
19 | P a g e
set the price as reasonable as possible. For this reason consumers are not also satisfied with their price. If we give a look at the survey data we will see that most of respondents also said that
it’s pricing is not excellent. Not only this but also most of Paper brands
almost set the reasonable price then Bashundhara paper for paper product.
In this case consumers are getting more benefit from Bashundhara paper
products by giving the similar amount such as high quality, assurance of
quality etc. their quality perception is good enough that’s why they are doing
charge the high price for their product.
Discount and Allowance Pricing:
Discount is a straight reduction in price on purchases during a stated period
of time or of larger quantities. Discount can be available in various forms-
cash discount, quantity discount, functional discount, seasonal discount.
Although cash discount for their consumer like, per rim A4 paper has 20tk
scratch card .it has ensured tk20 off upon purchase of any tk270 or tk250
pac. Allowance is promotional money paid by manufacturers to retailer in
return for an agreement to feature the manufacturer's products in some way.
Allowances are of two types: trade in allowances and promotional
allowances. Bashundhara provides promotional allowances in some cases.
Psychological Pricing:
A psychological pricing strategy relies on the nature of human psychology to
make prices appear more attractive to consumers.
For example: A Bashundhara A4 paper is available at taka 270tk in the
market. Double A paper is 340taka. As Bashundhara has a well established
reputation for its quality people are going to buy a Bashundhara paper,
because at a lower price thenDoubble AA A4 paper. they are getting quality
for that is the strategy Bashundhara follows. Bashundhra Exercise book is
20 | P a g e
available at tk25 which a part of pricing cues that sets in a way as if it ranges
among tk20, so psychological pricing exists.
Promotional Pricing:
Promotional pricing is temporarily pricing products below the list price, and sometimes even below cost, to increase short run sales.
Table 01: Price comparison of Bashundhara A4 paper.
(Source of interviewing dealer by questionnaire)
Name Double A Idea Bashundhara
A4
paper(80Gsm)
340 260 270
A4
paper(65Gsm)
275 175 185
Table 02: Price comparison of Bashundhara Demy Paper.
Name Karnafuli T.K Bashundhara
Demy
paper(55Gsm)
240 220 290
Demy
paper(42Gsm)
160 150 185
Table 03: Price comparison of Exercise Book.
Name Bashundhara Others
21 | P a g e
(Local Brand)
BDK100 25 20
Small 124 32 25
Small 164 42 32
Medium124 37 28
Medium164 48 38
Medium204 60 50
Sparil 200 65 55
Sparil164 55 47
Kids 124 18 16
Kids 164 25 22
: Changing price of Bashundhara paper products.
Name present previous Variation
A4
paper(80Gsm)
270 260 10
Demy
paper(55Gsm)
290 280 10
BDK 100 25 20 5
Small124 32 28 4
Small164 42 36 6
Medium 124 37 32 5
Medium164 48 42 6
Medium204 60 50 10
22 | P a g e
Spiral164 55 45 10
Sparil200 65 55 10
it has been found that Frequent changing price of Bashundhara
paper product for some reason
Hartal/Strike.
Transportation cost.
Taxation.
Increasing Supplier bargaining power.
Weather problem.
Sometime government imposes various policies in business. And
businessmen are to abide by those policies carefully .
Increasing price of Raw materials
In all of this products in which we have done market research, it is evident that Bashundhara paper product is providing the consumers with the best product. It is vital for Bashundhara paper product as quality&Brand, is the only tool where they have a superior advantage over other brands. But it must be noted that consumers are want to get superior products at reasonable price. So Bashundhara needs to find a fine balance between price and quality as they move forward in the coming years.
PlaceThe Bashundhara has already captured all over the country.
It has distributed it’s product from urban to rural area. All people are also habituated with that product. As it is a consumer products so every people needs it. From child to old, each person feels its necessity. So it’s coverage all over the country and all kinds of people. And finally it has also enabled to do that. Almost it follows mass segmentation.The company has vast distribution channel .they maintain different type of distribution channel for different product. As they think Bashundhara paper products convenient good, we will go for intensive marketing for this product.they will distribute it through our authorized dealers of their target market, who will sell it to as much retailer as they can. This distribution
23 | P a g e
policy will help to make our product available at everywhere in their target market Bashundhara Group distribute their product from their warehouse which is situated in Meghnaghat ,sonargaon ,Narayangonj .they have no region wise dipu
:Distribution system of Bashundhara Paper Products
MANUFACTURER
WHOLESALER
RETAILER
CONSUMER
Companies spend considerable time in planning such activities. However, in order to enhance the effectiveness of these activities, manufacturers should understand consumer and retailer interpretations of their promotional activities. The study here pertains to consumer’s perceptions regarding sales promotion. Some past researches have suggested that promotion itself has an effect on the perceived value of the brand. This is because promotions provide utilitarian benefits such as monetary savings, added value, increased quality and convenience as well as hedonic benefits such as entertainment, exploration and self-expression
PromotionBashundhara paper products does have a lot of TV advertisements but with catchy and ineffective tagline such as ‘For the people, For the country ‘. They also used emotional and rational appeal to strike the audience and create demand. . Their social media presence is strongly. However they give very limited and frequent print media ads on newspapers.
24 | P a g e
Promotional Tools:Advertising is the paid presentation and promotion of ideas, goods, or services by an identified sponsor in a mass medium. Examples include print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, mobile apps, motion pictures, web pages, banner ads, emails.
Sales Promotion is media and non-media marketing communication used for a pre-determined limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.
Public relations or publicity is information about a firm's products and services carried by a third party in an indirect way. This includes free publicity as well as paid efforts to stimulate discussion and interest. It can be accomplished by planting a significant news story indirectly in the media, or presenting it favorably through press releases or corporate anniversary parties. Examples include newspaper and magazine articles, TVs and radio presentations, charitable contributions, speeches, issue advertising,
seminars.
Direct Marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate directly to the customer, with methods such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.
BASHUNDHARA uses Advertisements, publicity programs and sales promotional programmers as well. For example: they use Social media, television and radio to promote their product.
.
Radio: For the purpose of business, this channel is the best because of Bashundhara budget limitations. Promoting through radio have the lowest cost-per-contact of all channels and the highest reach as well.Radio channels like “Radio Foorti” & “Radio Today” in Bangladesh are evolving and trying to providing more and more rich entertainment to the audience. Radio is accessible to places even with no electricity in the furthest rural areas of Bangladesh.
25 | P a g e
Newspaper: This channel for promotion also has relatively low cost-per-contact and is a very good way to reach large number of audience within short time and little effort. During the first few months of business of BASHUNDHARA print ads on the front pages of newspapers and eventually after public awareness has been created,Bashundhara slowly move to the later pages and later stop putting print ads. Future print ads in the newspapers will only be provided for price changes
and new product notifications.
Pamphlets & Leaflets: Bashundhara plan is to hire freelancers and send them to popular schools and collages to hand out leaflets after school ends. The leaflets will contain Bashundhara product offerings and price.
Allowance: Promotional money paid by the manufacturers to retailers in return for an agreement to feature the manufacturer products in some way.recently it has been found that Bashundhara group is practices such way
Promotional Budget:
Methods for setting Total budget:
Promotional budgets are often determined using a more simplistic approach, such as determining how much money is available or basing promotional expenditures on a percentage of a company's or brand's sales revenue. At this stage, the budget is often only tentative and may not be finalized until specific promotional mix strategies are developed. Four common methods are used to set the total budget for advertising:
1. Affordable method: Companies use this method, at the level of their affordability. Small businesses often use this method with the logic that the company cannot spend more on advertising than the amount it has left after the other expenses.
2. Percentage of Sales method: In this method, companies set their budget at a certain percentage of current or forecasted sales. The percentage
26 | P a g e
of sales method is simple to use and helps management think about the relationships between promotion spending, selling price, and profit per unit.
3. Competitive Parity method: Setting budgets to match competitors' outlays and funds. They monitor competitors’ advertising and follow it. 4. Objective and Task method: The most logical budget setting method is the objective and task method whereby the company sets its promotion budget based on what it wants to accomplish with promotion. This method entails defining specific promotion objectives, the tasks needed to achieve these objectives and estimating the costs of performing these tasks.
27 | P a g e
CHAPTER FOUR
BASHUNDHARA PAPER IN THE BANGLADESH MARKET
5.1 BASHUNDHARA PAPER PRODUCT IN THE BANGLADESH
MARKET
In the survey on the dealers OF Bashundhara paper product IN Dhaka, I have
taken the opinion of respondents about the market position Bashundhara
paper product. Most of the respondents said Bashundhara paper Product is
in the First or second position in the market. Only a few of them said
Bashundhara paper product is in the second position.
Demand For paper in Dhaka based on Brand.
28 | P a g e
Bashundhara paper 58%Karnafuli 16%T.K 13%Ambor 8%
Others 5%
Bashundhara- 58%
Karnafuli-16%
T.K- 13%
Ambor- 8%
OTHERS- 5%
(Source: Cyber
Media)
Comments:
According to the opinion of most of the dealers, it is assumed Bashundhara paper product is in the second or First position in the market. So in order to exist in the market for a long time and to Grab the first position Bashundhara paper should take some pragmatic steps. Quality products have to be introduced, good relation should be maintained with the dealers, continuous monitoring system should be initiated, “made in” should be inscribed on the products, price should be same everywhere, one dealer should be employed at a particular region; effective promotional plan must be taken.
4.3 Current Market Status:
Although Bashundhara Paper is a growing brand, it is yet to establish itself as
the market leader. In fact it still has a long way to go.
Table: Market Comparison
: (Source of field survey)
29 | P a g e
Name Price Quality Variety Distribution Scope for
growth
Bashundhara
Paper
High High High Very good Moderate
Karnafuli Moderate Moderat
e
Low Low Moderate
T.K Low Moderate Low Low Low
We can see from the above table that clearly overall Bashundhara leads and
have a significant lead when it comes to these values. They have been in the
market for years and have done remarkably to capture nearly one-fourth of
the total home appliance market.
Information about Dealer network:
Exclusive dealer: Those who distributor only sale Bashundhara paper
product they are known as exclusive dealer. They are get extra 2%
commission
Non exclusive dealer: Those who distributor sale different product with
paperproduct they are known as non exclusive dealer. They cannot get any
extra commission
Number of total dealer:
In Bangladesh Bashundhara group have total 395 Dealer. 150 dealer is
exclusive &245 is non exclusive dealer. Area wise they allocated their
distributor channel In 11 zone.
Zone area of distributors:
Zone area of distributors:
30 | P a g e
SL Zone Name District
01 Dhaka North Dhaka North, Gazipur
02 Dhaka South & East Dhaka South &East,Munshigonj
03 Dhaka West Dhaka West, Manikgonj
04 Bogora Sirajgonj,Rongpur,kurigram
05 Rajshahi Pabna,Natore,Dinajpur
06 Jossore Rajbari,Kustia,Magura,Khulna
07 Mymensingh Sherpur,Jamalpur,Tangail
08 Sylhet Sunamgonj,Moulovibazar,Hobigonj
09 Chittagong Cox’s Bazar,Rangamati,Feni
10 Comilla B.Baria,Chandpur,Noakhali
11 Borishal Faridpur,Bhola,barguna
31 | P a g e
CHAPTER FIVE
SWOT ANALYSIS OF BASHUNDHARA GROUP
5.1 SWOT ANALYSIS OF BASHUNDHARA PAPER
PRODUCT:Strengths:
Strengths are attributes that are unique to the company, product or division in
question. Some examples of strengths would be having a key scientist on your
team that has a unique skill set or knowledge that will make your new product a
success.
The strength points of products are given below-
1. We are strong enough with technological skill.
2. Our existing company is one of the best leading brands in the country.
3. We are offering the best quality product in the current market.
4. Higher qualified personnel lead management.
32 | P a g e
5. We have strong distribution channel which helps to deliver from
manufacturer to customers.
Weaknesses
Weaknesses are just the opposite – some examples include lack of a patent or
relying on unpatented discoveries, having no clear manufacturing process or
significant process issues, or not having talent specific to the area you are moving
towards.
The weakness points are mentioned below-
1. It is a matter of weakness as ours is a new product.
2. We have to bear huge money to promote Paper product
Opportunities:
Opportunities would include an increase in the disease group that your new
product is expected to address, the opening of a new global market that the
product can fulfill , or a new federal grant to help subsidize the cost of your new
drug or treatment. Once opportunities are identified, a plan to take advantage of
them should be created.
Our opportunities are pointed out below-
1. It’s a great opportunity to introduce Paper product in national and
international markets.
2. We can utilize our huge population.
3. The changing behavior of consumers may affect our sale as they want to try
new products.
Threats:
Threats could include corporate trials in this area by other competing companies,
new regulations that would make it difficult to get approval, adverse press
garnered by any preannouncements of what you are working on, or a loss of any
type of funding for the project.
The threats points are mentioned below-
1. Our sells may decrease in the occasionally for insufficient raw materials
33 | P a g e
2. If we cannot go to the rural sector it will stable our sell as well as
production.
3. Foreign competitors/local competitors.
The diagram of our SWOT analysis:
Competitor analysis:
Competitor analysis in marketing and strategic management is an assessment of
the strengths and weaknesses of current and potential competitors. This analysis
provides both an offensive and defensive strategic context through which to
identify opportunities and threats. Competitor profiling coalesces all of the
relevant sources of competitor analysis into one framework in the support of
efficient and effective strategy formulation, implementation, monitoring and
adjustment. We have an existing competitor and some potential competitors.
There are also some foreign competitors. Our some existing competitor is –
“Karnafuli “and other potential competitors are:
A T.K and
b) Amgbor
We hope we can provide the best quality product than our competitors and we
will capture the largest portion of Paper market.
34 | P a g e
35 | P a g e
6.1 Findings of survey:
Position of the Customer Service Of Bashundhara Paper Products
Table-2: Bashundhara raters perform evaluation task neutrally and in an unbiased way.
Particulars Total Respondents No of Respondents Percentage of TotalHighly Agree 50 15 30%Agree 50 10 20%
36 | P a g e
CHAPTER SIX
CUSTOMERS VIEW REGARDING BASHUNDHARA PAPER PRODUCTS
Neutral 50 10 20%Disagree 50 10 20%Highly Disagree 50 5 10%Total 50 50 100%(Source-Field Survey)
From the table-2: It is found that 30% of the respondents highly agree that Bashundhara paper
products raters perform evaluation task neutrally and in an unbiased way.20% respondents are
agreed,20% are Natural,20% are disagree,10% are highly disagree
Table-3: How satisfied are you with Bashundhara paper’s product?
Particulars Total Respondents No of Respondents Percentage of TotalHighly Satisfied 50 15 30%Very Good 50 08 16%Moderately Satisfied 50 10 20%Satisfied 50 07 14%Not Satisfied 50 10 20%Total 50 50 100%(Source-Field Survey)
From the table-3: It is found that 30% of the respondents highly satisfied with the product.20%
respondents are not satisfied,16% are very good,20% are moderately satisfied and 14% are satisfied.
Table–6 Indicate your level of satisfaction on the Price of Bashundhara paper product.
Particulars Total Respondents No of Respondents Percentage of TotalHighly Satisfied 50 05 10%Very Good 50 05 10%Moderately Satisfied 50 15 30%Satisfied 50 05 10%Not Satisfied 50 20 40%Total 50 50 100%(Source-Field Survey)
From the table-6: It is found that 10% of the respondents highly satisfied with the Price activity of
Bashundhara paper product.40% respondents are not satisfied,10% are very good,30% are
moderately satisfied and 10% are satisfied.
Table – 5 Are you satisfied with the present distribution system of Bashundhara paper
product?
Particulars Total Respondents No of Respondents Percentage of Total
Highly Satisfied 50 08 16%
Very Good 50 08 16%
Moderately Satisfied 50 15 30%
Satisfied 50 09 18%
37 | P a g e
Not Satisfied 50 10 20%
Total 50 50 100%
(Source-Field Survey)
From the table-5: It is found that 16% of the respondents highly satisfied with the present
distribution system Bashundhara paper product.20% respondents are not satisfied,16% are
very good,30% are moderately satisfied and 18% are satisfied
respondeTable–6 Indicate your level of satisfaction on the promotional activities of
Bashundhara paper product.
Particulars Total Respondents No of Respondents Percentage of Total
Highly Satisfied 50 05 10%
Very Good 50 05 10%
Moderately Satisfied 50 10 20%
Satisfied 50 05 10%
Not Satisfied 50 25 50%
Total 50 50 100%
(Source-Field Survey)
From the table-6: It is found that 10% of the respondents highly satisfied with the promotional
activities of Bashundhara paper product.50% respondents are not satisfied,10% are very
good,20% are moderately satisfied and 10% are satisfied.
38 | P a g e
CHAPTER SEVEN
PROBLEMS, RECOMMENDATIONS & CONCLUSION
5.1 Problems
Following problems of the Study have been identified:
Most of the Respondent believes that Better quality paper is more considerable in paper industry and other preferred to the clients than others.
39 | P a g e
CHAPTER SEVEN
PROBLEMS, RECOMMENDATIONS & CONCLUSION
Prices of BP papers are not reasonable as of majority’s opinion where its competitors are offering with a reasonable price to their customers.
Bashundhara papers quality is better than other existing paper product brands.
Most of the respondents are remaining before buying ensure quality of paper product and other of them preferred another thing.
Majority of total respondent are agree with that promotional activities acting very important part.
Most of the customers are satisfied using BP Paper.
Most of the customers are not highly satisfied with Bashundhara ‘s distribution system.
5.2 Recommendations :
Government should impose restriction on importing Paper.
Packaging must be rich and language of packaging will be as per respective countries language.
40 | P a g e
Continuing participate to the international trade fair.
Employees should be communicated properly about different program.
Bashundhara Group showed use the efficient promotional tools for buyer awareness about their Paper product.
Top level management should provide feedback on the performance of employees for improvement.
Bashundhara Group should be more concerned about their pricing strategy to capture all the buyers.
Bashundhara Group should improve their controlling and monitoring so that they can delivery product in time to the consumer.
Sales should be established on a weekly basis instead of months basis to proving flexibility in stock management.
To ensure a high level of products acceptance, the company should provide adequate training to the managers and workers and guide them toward the right objectives. Also, they should be given a sufficient knowledge about stock management.
5.3 Conclusion
Bangladesh has a huge market for consumer products and market is introducing new brands gradually. Consumer products are common here for a long time. Some of the aspects of behavioral pattern of consumers have been highlighted here. This study is mainly focus on some different aspects of market; consumer behavior and future trend.
We can see dynamic aspects of this topic after this analysis. So many finding are available now. Here, only the product quality is not everything. Along with product quality, promotional tools and consumers‟ mentality and their belief are responsible in decision making and preferences in selecting their required products.
Bashundhara Group of Industries carries good branding image over the country. Their brand building strategies are well defined. To enhance the market share and create a market leadership, the company should focus on the above-mentioned issues. If the business can utilize such contents, then it is going to become an uncontained category in the most diversified FMCG of Bangladesh. The quality of product must be maintained and promotional strategies must be modifying day by day.
41 | P a g e
References
Text Books
Kortler, P & Armstrong, G (2009) Principles of Marketing: Marketing
Mix, 13th Edition, pp 52-54.
Kortler, P & Armstrong, G (2009) Principles of Marketing:
Convenience product, 13th edition, pp 226-227
Kortler, P & Armstrong, G (2009) Principles of Marketing: Pricing
Strategy, 13th Edition, pp 290-291.
Kortler, P & Armstrong, G (2009) Principles of Marketing: Marketing
Segmentation, 13th Edition, pp 192-201.
Kortler, P & Armstrong, G (2009) Principles of Marketing:
Distribution Channel, 13th Edition, pp 339-346.
Kortler, P & Armstrong, G (2009) Principles of Marketing: Promotion
Mix, 13th Edition, pp 418.
Kortler, P & Armstrong, G (2009) Principles of Marketing: SWOT
Analysis, 13th Edition, pp 53-54.
Articles
Porter, Michel E (2008) Harvard Business Review : Five Forces of Model,
pp- 1.
Website:
www.Bashundharagroup.com www.wikipedia.org http://mdrkarim.weebly.com/business-policy--strategy.html
07:14 am, 04/07/2016
AnnexureQUESTIONNAIRE
Q-1 Bashundhara paper products raters perform evaluation task neutraly and in an
unbiased way.
a) Highly Disagree
42 | P a g e
b)Disagree
c) Neutral
d) Agree
e) Highly Agree
Q-2 How satisfied are you with Bashundhara paper product?
a) Very Satisfied
b) Satisfied
c) Neither
d) Unsatisfied
e) Very Unsatisfied
Q-3 How do you feel about Bashundhara paper product?
a) Good
b) Excellent
c) Fair
d) Superb
e) No Idea
Q-4 Are you satisfied with the product design of Bashundhara Group?
a) Very Satisfied
b) Satisfied
c) Neither
d) Unsatisfied
e) Very Unsatisfied
Q-5 Are you satisfied with the price of Bashundhara paper product?
a) Very Satisfied
b) Satisfied
c) Neither
d) Unsatisfied
43 | P a g e
e) Very Unsatisfied
Q-6 Does Bashundhara operate a formal performance management system?
a) Yes
b) No
Q-7 Are you satisfied with the present distribution system of Bashundhara Paper
product?
a) Very Satisfied
b) Satisfied
c) Neither
d) Unsatisfied
e) Very Unsatisfied
Q-8 Indicate your level of satisfaction on the promotional activities of
Bashundhara paper product.
a) Very Satisfied
b) Satisfied
c) Neither
d) Unsatisfied
e) Very Unsatisfied
Appendax
44 | P a g e
45 | P a g e