marketing plan for partex furniture final

June 13, 2012

Mr. Khaled Mahmud

Course Instructor

Institute of Business Administration

University of Dhaka

Sir,

We would like to submit the report ‘Marketing Plan for Nature Series of Partex Furniture Limited’ which was a partial requirement for the course. In this report we mainly focus on the process of making an effective marketing plan for Partex Furniture Limited.

We would like to thank you for giving us the opportunity to do this report.

Sincerely,

Ummay Sumaiya Mutiatur Rasul,

On Behalf of the Group-15

BBA 15th Batch

PARTEX GALLERYTable of Contents

Executive Summary........................................................................................................................IV

1. Introduction.................................................................................................................................1

1.1. Origin.........................................................................................................................................1

1.2. Objectives of the report......................................................................................................1

1.3. Scope of the report...............................................................................................................1

1.4. Methodology of the report.................................................................................................1

1.5. Limitations of the report.....................................................................................................2

2. Overview of furniture industry.............................................................................................3

2.1. History of furniture industry..............................................................................................3

2.2. Review of Partex over the time........................................................................................6

3. The corporate Setting............................................................................................................10

3.1. Mission Statement:.............................................................................................................10

3.2. Values & Corner-stones:...................................................................................................10

4. Segmenting, Targeting & Positioning..............................................................................12

4.1. Variables of segmentation...............................................................................................12

4.2. The segmentation process...............................................................................................12

4.3. Selecting segment..............................................................................................................15

4.4. The final target market.....................................................................................................15

4.5. Positioning Partex in consumers mind.........................................................................15

5. Analyses on “Partex Furniture Limited”..........................................................................17

5.1. The 3C Model........................................................................................................................17

5.2. Internal Analyses on “Partex Furniture Limited”.....................................................19

5.2.1. SW Analysis.......................................................................................................................19

5.2.2. SWOT in 7Ps......................................................................................................................20

5.2.3. GE Model for Partex........................................................................................................22

5.2.4. Extended BCG Matrix for furniture............................................................................24

5.3. External Analysis.................................................................................................................25

5.3.1. OT analyses of Partex and competitors..................................................................25

5.3.2. Wood Substitute-price analysis..................................................................................27

5.3.3. Product Price-Design Analysis....................................................................................27

5.3.4. Product price-durability analyses..............................................................................28

[II]

PARTEX GALLERY5.4. Porter’s five forces model................................................................................................28

5.4.1. Rivalry within firms.........................................................................................................28

5.4.2. Barriers to entry and exit.............................................................................................29

5.4.3. Threat of Substitute products.....................................................................................30

5.4.4. Threat of Supplier Power..............................................................................................30

5.4.5. Threat of Buyer Power...................................................................................................30

6. Overview of product line......................................................................................................32

6.1. Brand personality................................................................................................................32

6.2. Description of sub-categories.........................................................................................33

6.3. Raw materials used............................................................................................................33

7. Price.............................................................................................................................................35

8. Place............................................................................................................................................36

9. Promotion...................................................................................................................................38

9.1. Advertisement......................................................................................................................38

9.2. Sales Promotion...................................................................................................................45

9.3. Direct marketing..................................................................................................................46

10. People......................................................................................................................................46

10.1. Design based informed salesperson for timber furniture.................................47

10.2. Customer need based salesperson...........................................................................47

11. Physical Evidence................................................................................................................48

11.1. Renovating showrooms-...............................................................................................48

11.2. Design based categorization.......................................................................................49

12. Evaluations............................................................................................................................49

[III]

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Executive Summary

It was 1990 when the main revolution of furniture industry started. Before that furniture industry was dominated by local carpenters and some imported furniture. In early 1990s, Otobi comes as a big company of manufacturing furniture. Then comes Hatil, Partex, Navana and legacy along with some other companies. Mainly Otobi manufactures mechanized furniture and it is the market leader in mechanized furniture. Recently Otobi has started making wooden furniture. Hatil and Lagacy make wooden furniture. Partex started their journey through making timber furniture and later they launched mechanized furniture making.

Partex Gallery:

Partex furniture is a company of Partex Groups founded by Mr. M A Hashem. Partex is the most environmently furniture manufacturer maximization wood conservation. Their values are focused on artistic design,integrity and quality orientation.

Target market:

The company’s target market is urban educated females whose ages are within 25-40. The size of final target market is 1580328. The growth expected in the target market: is 10.48% in five years.

The company has several strong point of differentiating it from its competitor. For example they can use their leadership,heritage and the way of making products.

Internal and external analysis:

To have a complete view, some internal analyses have been done. On SW analysis, we have found that Partex is lagging behind to its main competitor Otobi. The average rating of strength variables for Partex is 6.31 on a scale of 10 (less than Otobi’s 6.88). The average rating of weakness variables is 6.81 which is higher than that of competitor Otobi (5.25). The reasons are some undeniable reality. The company has a first mover’s advantage but fail to utilize it. The company does poor in promotional activity. On OT analysis, Partx has more opportunity than its competitor. The main opportunity is the increasing environmental awareness in Bangladesh. Partex is at build selectively stage at GE model.

In terms of 7P’s partex has several weaknesses. There is a lot of chance to make attractive and useful products. In terms of design, Partex is behind Legacy and Hatil. They give a sales discount thrice a year on rgular basis that often hampers their profit and some customers only buy at the discount time. So the sales yearly distribution is not that smooth. The number of outlets are few and most of the showrooms

[IV]

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are inconveniently placed, for example some showrooms lack parking space, some showrooms are at VIP road where rickshaw does not go. The showrooms are clumsily organized. The promotional activity is very few in terms of quality and quantity. The sales persons are not that motivated and they do not have specific task. The whim of owners also discourages executives. The whole process of buying is not that customer experience focused. The delivery system is slow.

the strategies:

partex should increase number and quality of advertisements as it does not reach the mind share of many potential customers. Instead of giving discount,it should give voucher and gifts that would seem more worthy to customers. Miniature display and catalogue should be available to common public place. It should make the showrooms more attractive and resourceful so that the potential customers at least pay a visit to the showroom to see furnitures. Is should classify loyal customers and increase direct marketing. It can differentiate itself as an environment friendly furniture company. It should also announce durability of their furniture by giving warranty.

Evaluation:

The increase of market share is supposed to increase a great deal in regard of costs as calculated. As the ROI is positive and worthtaking, Partex should go for the strategy.

[V]

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1. Introduction

1.1. Origin

This report is prepared as a partial requirement for the course ‘Marketing

Management’ instructed by Professor Syed Ferhat Anwar. This report has

been prepared by group 15, which consists of four members, of BBA 15th

batch.

1.2. Objectives of the report

This report aims at developing a marketing plan for ‘Nature Series’ of Partex

Furniture Limited through doing an internal and external analysis of the

company.

1.3. Scope of the report

The report deals with a special category of furniture called ‘Nature Series’.

The report deals with the bedroom settings. The plan is made for

countrywide operation and we took Dhaka Metropolitan City as a standard to

measure the characteristics of the target market.

1.4. Methodology of the report

The information used in this report is mainly secondary data collected from

| of Partex Furniture Ltd.

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various publications and websites. Academic books are also consulted.

Primary data is collected from interviews, personal observations.

1.5. Limitations of the report

Some internal company information was not available because of

maintaining confidentiality. In those cases, information has been estimated.


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2. Overview of furniture industry

2.1. History of furniture industry

The main revolution of modern furniture in Dhaka city started during the late

1990s. Before 90s furniture industry was in a scattered form and a few

furniture maker shops were here and there in Dhaka city. However, they

were non-united and they did not think it as an industry. They just worked

out as hereditary business.

However, during late 90s, furniture business emerges as an important field

of modern furniture industry.1 It has changed up its traditional materials and

design, many new raw materials being added in furniture industry and many

types of modern shape and new furniture being emerged. Local furniture

manufacturers are meeting a huge local demand while the upper section of

society is also having access to imported furniture. Fortunately, the local

companies have the lion’s share of the market. After meeting the local

demand, furniture industry moves forward and is concentrating on exporting

furniture to neighboring countries specially India. In 2007-08 fiscal years, $

2.44 million worth of furniture was exported, which was 0.02 percent of the

total export earnings.2

Bangladesh has potential in this particular sector both locally and abroad.

The saga of furniture industry in Bangladesh has mainly originated from

normal local carpenters who used to work on small levels. The craft and art

engraved in today’s furniture bears the testimony of their practice. Some

1 Market Potentials of Modern Furniture in Metropolitan Dhaka City, Md. Joynal Abdin (FBCCI)

2www.bdnews24.com/rb/dg/bd/1134h.


3

http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=833631

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local furniture boutiques still are carrying that heritage forward but in a small

level. There are 5,000 registered furniture houses in the country, according

to the Bangladesh Furniture Association. Almost 99 per cent of them are non-

brand operators.1

However, brand furniture has curved out a niche among the people. Some

manufacturers are holding more than 50 per cent of the country’s furniture

market worth about Tk 1,600 crore and the forecasted market growth rate

for 2007-2012 is 23.2%. The overall furniture market of Bangladesh is

forecasted to grow in the following manner2:

2005 2006 2007 2008 2009 2010 2011 20120

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Series 1

Series 1

Figure 1 Market Forecast for 2007-2012 in case of Bangladesh

Otobi is the perceived leader of this branded furniture segment.3Following

the footsteps of Otobi, pioneer in establishing brand name in furniture,

Navana, Partex and Hatil are following same type of strategy and have

1 www.bdnews24.com/rb/dg/bd/1134h.2 Statistical Market Forecast for Furniture in Bangladesh, Gobi International, 20073 www.bdnews24.com/rb/dg/bd/1134h.


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already established their brand names. Besides, the state-owned Bangladesh

Forest Industries Development Corporation, Akhtar and Legacy are the other

major brand names in the local furniture market.

The noteworthy Brand Furniture companies are:

1. Otobi: According to CEO Sabbir Hasan Nasir, Otobi is currently holding

70% of branded furniture segment and its current turnover rate is 500

crore per year. Otobi has 13 showrooms in Dhaka and 300 dealers

across the country. Sector experts, said the main reason behind the

phenomenal rise of Otobi is to deliver attractive furniture through wood

substitutes like particle, plastic and laminated boards. Otobi was quick

in action to conceive the idea of manufacturing furniture items by

wood substitutes and became successful for its aggressive and

integrated marketing strategy.1

2. Hatil: Since its inception in 1989, Hatil has been a trendsetter in

innovation, design, management practices and quality in Bangladesh.

It is the market leader in household wooden and processed wood

furniture segment. In 2005, they had major expansion and are

currently operating around 80 outlets in Bangladesh, 1showroom in

Calcutta and 3 other distribution centers in India. They are looking

forward to exploring the international market with foreign partners.2

3. Navana: Navana is one of the most well known brands in the local

market with a wide variety of products. The inception of Navana Group

in the country’s new generation furniture (wood substitute furniture)

market occurred almost four years ago. Navana furniture

1www.bdnews24.com/rb/dg/bd/1134h.2 ICPAR Mumbai, April 14, 2009


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ergonomically solves to ensure comfort and durability. Navana has 80

showrooms all over the country and has recently started exporting to

Agortola, Calcutta.1

4. Legacy: Like Hatil, legacy concentrates in wooden furniture segment

and targets the higher market segment. It started operating in 19952.

Sharmin Siraj, a designer at Legacy Furniture Ltd, which produces

artistic furniture, said people have now become more conscious about

aesthetic beauty of home furniture, being a bit costly.3

5. Akhtar: Akhtar Furniture is a sister concern of Akhtar Automobile Ltd. It

operates in wrought iron, wooden and other furniture. Akhtar has fame

in the upper segment of the market for its wooden furniture and

operates outside the country especially in Middle East.

2.2. Review of Partex over the time

Invention of particleboard

When renowned scientist Dr. Qudrat-e-khuda invented particleboard from

patkhori, it made a breakthrough as a replacement of wood. It was perceived

to be a solution to the need of timber in different wood-based industries

along with a way to solve alarming rate of wood smuggling. It also proved to

be economical to use particleboard, as “Patkhori” was mainly the wastage of

1 ICPAR Mumbai, April 14, 20092 www.bangladeshinc.com3 Interview at Fourth National Furniture Fair, 2009


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the Adamji Jute mill. The then Pakistan Government took patent of the

formula and first implemented it in the Partex Company, as the company

was a government company that time.

Investment in particleboard

With the help of the Privatization Act, Bangladesh government wanted to

yield the company in private hands to ensure proper use of its resources.

Then, M.A.Hashem came forward to patron this company with a view to

prosper as the finest particleboard manufacturers in the country and if

possible carry this name overseas. With a lump sum of 40 million taka, he

bought it from the government and started its functioning. However, finest

people are needed to improve the condition of this fine company along with

its fine board. So gradually, the company grew up into a first-class

particleboard maker.

Improvised board making

It is a known and agreed fact that there is always room for improvement.

That is why Partex did not stop only with the same particleboard invented

long ago. Many problems arose with that old board. It did not have high

durability, was easily damaged by water or heat, did not have a fashionable

look and it was quite fragile. Therefore, R&D sector started putting their

efforts in it to find out a way to improve. Several upgrading is shown by the

flowchart given below:


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From board to furniture

At the beginning, Partex was just the supplier of particleboard. Later, it

started using boards in door making. However, as the board has a size of 20

feet and only 14 feet is needed to make a door, the remaining 6 feet had no

utility. That is why; the company had to sell it to local manufacturers at a

much lower price, sometimes lower than the landing price. Therefore, the top

management came up with a view to use this remaining part and

concentrate in furniture making.

The furniture village

As said before, finest people are needed to come up with finest work. That is

why; Partex recruited 555 carpenters who have expertise on woodcarving

and furniture making. In order to make them feel homely in factory area

Naryangonj, the company established schools for their children, built up


8

1ParticleboardWood substitute

2Vineer BoardCover & protects particleboard

3Cross vineerReinforcing capability

4Laqur and gratingfulfills varnishing purpose

Figure 2 Transition to modern furniture

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homes and provided job to their spouses. Thus, a whole Partex village came

into form.

Figure 3 History of Partex Furniture

Era of mechanized furniture

Around the year 2003, Partex became interested in making mechanized

furniture as it has growing demand among the consumers. The company

recruited 203 people who were experts in using CDS, CNC and making

mechanized furniture. However, they could not merge with the artisans in

the initial stage and Partex had to go through a cultural dilemma. Therefore,

their production can be time lined as follows:

Position of Partex

Partex is now a quite well known brand as a furniture manufacturer. They are

renowned because of their self-reliance that emphasizes their vertical


9

Traditional furniture(1999)batch productionlittle customization

Mechanized & traditional(2003-05)batch production

Innovative(2006-to date)batch productionrequires proper marketing

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integration. Their forest-friendliness is also a major issue as they do not take

wood from local timber traders but buy from international timber trading

association.


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3. The corporate Setting

3.1. Mission Statement:

“We, through our forest-friendly interior adornment business aim to bring

comfort & style in the lives of the prosperous by making quality-oriented

furniture through blending with traditional and artistic woodcraft.”

3.2. Values & Corner-stones:

Partex perceives four elements as the cornerstones that build up the

business and support the company to move forward. The core value-integrity

of Partex further influences these cornerstones.

Value-Integrity

Partex Furniture values integrity in every sphere of business and emphasize

on maintain high ethical standard in the daily conduct of business. Partex

has adopted integrity as the guiding principle and follows it everywhere:


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Quality-orientation

Art & Innovation

Environment-friendliness

Customer Focus

Integrity

Figure 4 Value & cornerstones of Partex Furniture Ltd.

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Cornerstone 1: Quality orientation

Partex Furniture promises to maintain superb quality of our products

especially regarding raw materials, technology and design. Due to the

relentless effort to uphold this promise, Partex has achieved ISO certification

and made a place of its own in the international market.

Cornerstone 2: Art & Innovation

A piece of furniture is not only a thing for storing things or for sitting or

sleeping on. Partex believes in providing the customers new and innovative

products with international standards to match with the changing lifestyle of

today.

Cornerstone 3: Environment-friendliness

Partex maintains and operates the business for long-term sustainability.

Partex believes that saving the environment is essential for that. To ensure

wood conservation, Partex combines economic use of wood and creates

wood substitute products for furnishing needs.

Cornerstone 4: Customer Focus

Partex focuses on the fulfillment of customers’ needs. To ensure that

fulfillment, Partex tries to offer complete solutions, free technical consultancy

services, after sales support and efficient delivery system. Above all, Partex

wants to deliver quality products that exceed expectations.


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4. Segmenting, Targeting & Positioning

A good market segmentation will result in segment members that are

internally homogenous and externally heterogeneous; that is, as similar as

possible within the segment, and as different as possible between segments.

4.1. Variables of segmentationFor segmenting the overall (existing and potential) market, demographic

variables like age, gender, education were used as the determining factors.

The social factor such as urban area is also taken into account.

Demographic Factors: age, gender and education

Measurable and exact size can be evaluated

The market can be grouped easily

Geographical: urban

Operations and lifestyle remains quite same in a domain

4.2. The segmentation process

To find an appropriate segment it is necessary to remember two things. First,

the needs of a segment we drive to should match the benefits offered by our

product and go according to our value proposition. Second, the benefits we

offer should be grater then other competitors working within the same

industry. Thus, for segmenting the total market, we first need to identify the

needs of different segments and find out the benefits we can provide them.

Thus, we can pick up the segments whose needs we can satisfy most.


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Segmentation step 1: urban people

Needs Benefits offered by Partex

Style in living Designs blends traditional and

modern craft

Easy access for further repair

work

Satisfactory repair service

Easy accommodation in

interior

Convenient design of furniture

Multiple use of commodities Multi functional furniture

Portability Light-weight, disassemble possible

furniture

Flexibility to choose from

different options

Availability of various design

Neat interior Simplicity in designs

Need to keep status within

own circle

Value based pricing

Size of the segment: 1, 89, 28,1841

Segmentation step 02: Female


I. Feel confident about home-

furnishing

Established brand name

II. Comfort for eyes Visually soothing designs for

furniture

1 Statistical Year Book 2006, page-51


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III. Uniqueness Innovative, continuously changing

product design

Size of the segment: 86, 84,0101

Segmentation step 03: Educated


Meet the growing trend of

native art and craft

Creating new designs using mix of

solid wood curving and

particleboard

Depiction of Aestheticism Product blends folk and nobility

Size of the segment:

Total number of urban female* female education rate in urban area

=86, 84,010* 64.67%2

= 56, 15,949

Segmentation step 04: age group (25-40)


Feel up to date Contemporary design and materials

of furniture

1 Statistical Year Book 2006, page-532 Statistical Year Book 2006, page-626


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Show constructive attitude Consciousness regarding wood

conservation

Establish recent changes in

marital/job/residence status

Wide array of furniture targeted

towards families

Size of the segment:

Total number of educated urban female * Rate of female of ages 25-40

=56, 15,949*28.14%1

=15, 80,328

4.3. Selecting segment

As a home-adornment company, we choose to follow concentrated

segmenting. Because,

We will go for large share in one or few market segments

Build and retain position by superior knowledge and reputation in

those few segments

Innovate variety within a few categories and thus market our

products more efficiently.

4.4. The final target market

The size of final target market: 1580328

The growth expected in the target market: 10.48% in five years2

1 Statistical Year Book 2006, page-332 Size of target market in 1996=15203

Size of target market in 2001= 16796So, the growth expected in the target market=1593/15203*100%=10.48%


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4.5. Positioning Partex in consumers mindPartex has several strength points to differentiate their furniture from others.

For example:

a) Attribute ownership: Partex should position their products in a way

that will attach a particular attribute to their products. When people

hear the name Otobi, people think of light and simple design, when

people come to the name of Legacy, exclusive design comes to their

mind. So Partex has to own an attribute different from its competitor.

Hatil is related to ‘solid wood’ furniture and Navana is related to cheap

furniture.1 Partex should choose an appropriate attribute for example

‘innovative design in durable furniture’ and position their products in

consumer minds. If they want to establish the attribute ‘durable’ they

can give written warranty to the customers. This idea will be new in

furniture industry and Partex will gain an advantage.

b) Leadership: Partex is the pioneer in the concept of wood conservation

while making furniture and they should not be afraid to brag about it.

While the recent craze is about environment friendliness, they can take

advantage of it. In their campaign, they should articulate that they are

the leading environment friendly company.

1 ICPAR Mumbai, April 14, 2009


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5. Analyses on “Partex Furniture Limited”

5.1. The 3C Model

The 3C Model is a strategic look at the factors needed for success. Kenichi

Ohmae, a business and corporate strategist, developed it.

The 3C model points out that a strategist should focus on three key factors

for success.1 In the construction of a business strategy, three main players

must be taken into account:

A. The corporation

Selectivity and sequencing:

The corporation does not have to lead in every function to win. If it can gain

decisive edge in one key function, it will eventually be able to improve its

other functions which are now average.

Partex earns more profit margins from timber furniture and a meager profit

margin from mechanized furniture though the sales volumes of mechanized

and timber furniture is almost same. So, Partex Should focus on timber

furniture.

Make or buy:

In case of rapidly rising wage costs, it becomes a critical decision for a

company to subcontract a major share of its assembly operations. Partex has

a very good relationship with the carpenters and suppliers. Most of the

carpenters work there at contract basis. There are some groups of

carpenters who work for Partex on contractual basis. So, Partex should

1 www.wikipedia.org


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continue the current strategy of making the furniture using the vertical

integration.


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Cost-effectiveness:

Partex claimed to have the cost leadership in furniture market. As it ensures

maximum wood preservation and contractual artisanship, it has succeeded

to maintain cost effectiveness.

B. The Customer

Segmenting by objectives:

Partex has segmented its customers by objectives. The company makes

timber furniture, mechanized furniture and office and hospital furniture.

Mainly timber furniture is for upper class people who want elegant design to

decorate their houses, mechanized furniture is for people who want simple

design and durability for low price and office and hospital furniture is for

commercial uses.

Segmenting the market once more:

In fierce competition, competitors are likely to be dissecting the market in

similar ways. Partex has a scope of segmenting the market in a narrower

way. There is a market for selling mechanized furniture in a lot for

commercial use and Partex segmented that market but there is also a

market which will buy high price timber furniture in a bulk for commercial

use (for example, first class hotels, resorts, apartments etc) and Partex has

not segmented that market yet.

C. The Competitor


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These strategies are constructed by looking at possible sources of

differentiation in functions such as: design, engineering, sales and servicing.

In both mechanized and timber furniture, the performance of Partex is not

that much different from the competitors. In mechanized furniture, the main

competitor of Partex is Otobi. In timber furniture, Partex and its competitor

sell through own showrooms. However, Partex has several strengthening

points to differentiate its products from the competitors and the company is

lagging behind to differentiate its products from others.

5.2. Internal Analyses on “Partex Furniture Limited”

5.2.1. SW Analysis

Strength- Weakness analysis of Partex and competitors:

012345678910

0

1

2

3

4

5

6

7

8

9

10

PartexOtobi

Navana Hatil

Akhtar Legacy

Others

Weaknesses

Stre

ngth

s

Strength-weakness analysis of Partex furniture gives a look into the internal

qualities of the company. Though being the first mover in the furniture

business, Partex is lagging behind its main competitor Otobi.

The average rating of strength variables for Partex is 6.31 on a scale of 10

(less than Otobi’s 6.88). Though it is above average, it is not good enough.


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Further look into the strength variables of the company reveals some

inconvenient facts1.

Partex has the first mover’s advantage but they don’t actually use it to

promote their product. Otobi is already established as the generic name for

mechanized furniture. Partex products have long durability but again this

point is never highlighted in their marketing campaigns. They don’t even

provide any kind of warranty which projects an image of nondurable

products in consumers’ minds.

Partex scores very low in some strength variables. It indicates their lack of

initiatives on those spheres. The packaging of the furniture is also very

ordinary and often fails to secure the furniture from scratches and smudges.

Partex doesn’t have any customer hotline or standby helpline (one of the

competitors, Otobi, has already started it).

The average rating of weakness variables is 6.81 which is higher than that of

competitor Otobi (5.25). The reasons are some undeniable reality.2

As Partex Furniture is often treated virtually as a brand extension of the

Partex Particle Boards, the company faces problems to cope up with rest of

the Partex group.

Partex also has a very weak demand forecasting which often results in pile of

products in the showrooms. It is mainly because Partex doesn’t have an

exclusive database of past records to forecast on. Centralized nature of the

company is also responsible for this.

The SW analysis clarifies the internal problems and strengths for Partex

furniture. Steps should be taken to minimize the weaknesses and highlight

the strengths.

1 Appendix-12 Appendix-1


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5.2.2. SWOT in 7PsFrom the SWOT analysis that we have done, it is imminent that Partex has a

lot to improve in its marketing mix. Here we will discuss the SWOT of Partex

in the light of 7Ps.

Product:

Partex has to develop their product. From the SWOT analysis, major

weaknesses for product can be attributed to, unattractive, non-descriptive

and generic packaging and nonflexible space consuming design of the

product.


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Price:

Partex should not give exaggerated sales promotion. Sales promotion often

creates quality dilution in the consumers’ mind. Rather Partex should focus

on value added gifts like vouchers or show pieces. Sales promotion also

increases price sensitivity among the consumers.

Place:

The Partex showrooms are not exactly at hand for most of the people. There

are seven owned showrooms of Partex. The other outlets are dealer based.

Even in Dhaka, their largest showroom is inconveniently placed in Farmgate.

High score in “Unsuitable location of showrooms” denotes that. Moreover,

the showrooms are clumsily decorated, placements of products are not

category based; rather they are rather product based.

Promotion:

Partex has major weaknesses in promotion. They take few promotional

campaigns which are shortly effective but do not create any value in the

mind of customers. Moreover, their billboards and printed ads are often

misplaced which results into low turnover of the advertisements. Partex

should also try to diminish the effect of promotion threats like consumers’

avoidance of ads, low attention span and unexposureable media habit of the

consumers.

People:

Partex has a friendly and active sales force in their showrooms. But, the

problem is that there is no job-specification. Their sales force should be more

motivated. But hasty decision making, de-motivating corporate ladder,

inconsistency of company culture and primarily the rigid structure of Partex

are contributing to the dissatisfaction of the employees.


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Process:

The delivery time of Partex furniture is still high on average. Partex have

shown instant delivery capabilities on special occasions, we propose that this

should be practiced on every purchase. However, the immediate step is to

meet the given deadline. Consumers really do not think high of a company

that breaks its own promise.

Physical Evidence:

The exterior design of the showrooms is such that it is hard for the

customers to identify the showrooms. Like the other papa-mama stores, the

showrooms of Partex are painted in white, blue and red color mainly.

5.2.3. GE Model for Partex

We Identified 16 variables of business strengths for Partex. We assigned

weight to each variable based on their importance. Then, Partex is rated

each variable in a scale of 1-5. After taking the weighted average of the

variables, we got the business strength rating for Partex. 1

11 variables for market attractiveness were selected based on a rough

survey among the prospective and existing buyers of the furniture. The

rating was given by the consumers.2

Business Strength

Mark

et

5 Protect Position Invest to Build Build Selectively



25

PARTEX GALLERY

Att

ract

iveness

3.6

7

Build Selectively

Partex

Selectivity/Manage

for Earnings

Limited Expansions

2.3

3

Protect and

Refocus

Manage for

Earnings

Divest

1 5 3.67 2.33 1

Partex has scored low in Market attractiveness. Partex falls in the ‘build

selectively’ segment. Though they are still in the “favorable” portion of the

GE matrix, they actually need to develop some of their attributes.

To be specific they should

Increase number and quality of advertisements

Make the showrooms more attractive and resourceful

Increase direct marketing

Use environmental awareness as business tool

Announce durability of their furniture

Invest on most attractive market segment

Create the ability to counter the competition in company’s ‘low

market share segments’

Create growth opportunities in untouched market segment


26

PARTEX GALLERY

5.2.4. Extended BCG Matrix for furniture

Mark

et

Gro

wth

5

Stars Question Marks

Timber mid-priced

furniture including

Sofa, Dinning Set,

Beds, Dressing Tables

etc.

Hospital Furniture

Interior Decoration

Computer Furniture

Alternative material Sofa

Alternative material Chairs

Partex Aesthetic

Lister Series

1.5

%

Cash Cows Dogs

Auxiliary Furniture

Alternative material

household furniture

Kitchen Cabinets

-2%

Orphans Dead

Victorian Furniture

5 0.5 0.05

Share


27

PARTEX GALLERY

5.3. External Analysis

5.3.1. OT analyses of Partex and competitors

012345678910

0

1

2

3

4

5

6

7

8

9

10

Partex

Otobi

Navana Hatil

AkhtarLegacy Others

Threats

Opp

ortu

nitie

s

Opportunity-threat analysis of the company gives information about the

external forces acting upon the company. While some of these forces are

favorable for Partex, steps should also be taken to minimize the unfavorable

effects.

The average opportunity score for Partex shows that the company is in a

better position to take advantage of the opportunities than the competitors

are. Environmental awareness is rapidly increasing in Bangladesh. Due to the

fact that Partex has strength in minimization of wood use, Partex can avail

this opportunity. The approval of environmentalists for their products can be

an added advantage for them. The competitors have not started to take

advantage of the awareness; here Partex can make a difference. The overall

preference for brand furniture is also increasing; sufficient awareness about

the company among the customers will cause this preference to increase the

sales.

The current trend of appreciation for folk crafts and traditional motifs is also

an excellent opportunity to promote themed products. Export opportunities

also look promising for furniture sector so that option is worth tapping.


28

PARTEX GALLERY

But on the other hand, Partex is also more sensitive to external threats than

other competitors. A number of external factors seem to be problematic for

Partex. The timber furniture market has exposureed maturity, though it holds

the largest share in the furniture market. Decreasing growth rate of timber

furniture market is decreasing and companies must find other solutions to

survive. High exit barrier in furniture industry also prevents Partex from

experimenting with their products.

Lack of import barriers for foreign furniture import is also creating new

competitors, which, though depending entirely on outside supply, are

capturing a significant portion of market share. Another hidden threat is the

off stream plastic furniture makers. Plastic furniture is becoming popular for

their low price and lower maintenance cost. The consumer’s media habit,

especially avoidance to ads and low attention span often prevents the

company to exposure its target bunch of consumers with the right message.

Partex has to deal with it by carefully designing and placing their ads for

maximum reach.1

1 Appendix-2


29

PARTEX GALLERY

5.3.2. Wood Substitute-price analysis

Price of the ProductM

ater

ials

use

d

High Price

Medium Price

Low Price

Wood Legacy Hatil, Akhter

Infinite

Close to Wood

Fourniture

Boutique

Partex

Wood Substitut

e

Otobi Partex,

Otobi, Infinit

e

5.3.3. Product Price-Design AnalysisDesign

Pri

ce r

an

ge(b

ed

room

set)

In 000’s

Very Attractive

Innovative

Typical +Job shop Typical No exclusive design

120-above

Legacy, Akhtar, Hatil,Imported

90-120

Partex Aesthetic

65-90 Partex (timber)

Otobi (timber)

50-65 Partex(mechanized),


30

PARTEX GALLERY

Otobi(mechanized)

35-50 Partex Lister Navana Local Wood shop

5.3.4. Product price-durability analyses

Price 35-50 50-65 65-90 90-120 120-above

Durabil

ity

Low Local

Carpenters

(mechanize

d)

Mediu

m

Navana,

Partex

Lister,

Local(timbe

r)

Local

Carpenters

(timber)

Partex

(timber)

High Otobi

(mechanized)

Otobi

(timber)

Partex

Aestheti

c

Legacy, Hatil,

Akhtar,

Imported,

Furniture

Boutique


31

PARTEX GALLERY

5.4. Porter’s five forces model

5.4.1. Rivalry within firms

Rivalry among existing Firms in the furniture industry is intensified by the

following factors:

i. It is noteworthy that Hatil and Otobi, the main rivals to Partex came

earlier in the market. As a result, rivalry is intensified among the

established firms because of Partex’s creating the risk of potential

entrant.

ii. The least intense rivalry will prevail in an industry in which one or a

few large firms dominate. Thus, if we look at the Brand Furniture

industry comprising Partex, Hatil and OTOBI there are few companies

with shared dominance. This results in Oligopoly. .

iii.Though Partex had 100 crore taka as investment, the full-scale

operation for Partex is yet to begin and apparently it is following otobi

and hatil. That is how the strategy do not differ much from them and

rivalry increases. In spite of this, the other two company do not

mention having Partex as a noteworthy competitor and continues with

their own strategy.

iv. Furthermore, both the principle competitors, Hatil and OTOBI,

pioneered the concept of Brand Furniture industry, which has

apparently been booming for the past 4 years1. Partex identified this

opportunity in the market and it is not a new entrant. In the end, with

the strength of integration prevailing within Partex, there are

possibilities of the industry becoming highly consolidated.

v. The furniture industry is not a commodity market and each player has

its differential advantages. OTOBI has pioneered panel-based

furniture. Imported-furniture based companies are also coming up.

Hatil has set the tone in brand timber-based furniture and Partex

1 OTOBI introduced brand furniture in the International Trade Fair 1999


32

PARTEX GALLERY

eventually followed that. In this situation, price is not that big a factor

rather it’s the brand image, quality, innovation etc. that create the

difference. Moreover, when the differentiation is well established, each

company has quite a blue ocean of their own and thus the rivalry

becomes less.

5.4.2. Barriers to entry and exit

Exit barriers are economic, strategic and emotional factors that may keep

Partex in the furniture industry even if returns are low. Exit barriers further

create chronic overcapacity and the intense rivalry which accompanies that

condition.

High Exit barriers for Partex:

Since Partex is a relatively new entrant in the home furniture industry and

they have invested Tk 100 crore to establish their stand in the market, it

makes it hard for Partex to leave the industry.


33

PARTEX GALLERY

5.4.3. Threat of Substitute products

Close substitutes for Partex furniture are:

Wrought Iron furniture

Plastic furniture

Solid wooden furniture

These close substitutes are a very potent competitive threat for Partex

furniture concern. Moreover, the Wrought Iron furniture boomed up as a fade

and now lost their attractiveness due to low durability while plastic furniture

is perceived as outdoor furniture and targets to a different market segment.

Thus, the threat for Partex is substantially less.

However, the solid wood made furniture is a big threat for Partex. The

consumer’s perception is that the wood made furniture is more reliable and

that the particleboard is made of jute-stick only. Besides, wood can be

extensively curved but boards cannot be. To cope with this problem Partex

started to integrate solid wood-curving upon their particleboard furniture.

5.4.4. Threat of Supplier Power

For Partex the threat of the bargaining power of the supplier is likely to be

low due to

Vertical integration

Good relation with foreign timber traders


34

PARTEX GALLERY

5.4.5. Threat of Buyer Power

The buyer is the next person downstream in the value chain. The buyers of

Partex are grouped as the following:

General consumers having event-wise demand, buy in small amount

but altogether build a large group providing maximum revenue.

Institutions and organization having bulk demand

Furniture buyers can integrate backward if suppliers cannot offer satisfactory

prices. Often consumers choose designs of furniture from galleries and

produce them through individual wood artisans.


35

PARTEX GALLERY

6. Overview of product line

PARTEX GALLERY has introduced a fundamentally new pattern of furniture by

the end of 2005. This type is based on the philosophy of Pablo Picasso. The

philosophy of Pablo Picasso says that the origination of all creations is

inspired from nature. With an awe-inspiring combination of artistic talent of

Artist Mizanur Rahman (from CTG institute of Fine Arts), and a team of

technical experts led by wood Technologist Abdul Hai (from Kaptai Institute

of Civil Engineering & Wood Technology), these designs have been

introduced.

Previously, the company launched this category under the name ‘Nature

Series’. However, this name is not sufficient to include all the sub-categories.

So, a new name is needed to justify the name according to the product line.

To represent the innovative design of this category, the name ‘Partex

Aesthetic’ is recommended.

6.1. Brand personality

Partex’s different products resemble to different brand personality. For

example, the costly home timber furniture resembles with sophistication

(upper class and charming), the ‘Partex Aesthetic’ furniture, which is timber

furniture with innovative design, resembles with competence (reliable,

successful and intelligent). The mechanized furniture low in price and design

and suitable for rough use resembles with ruggedness (outdoorsy and tough)

Under the ‘Partex Aesthetic’, there are three different subcategories: Nature

Series, Royal Series and Partex Folk. The basic difference between these

three subcategories is the element of design. When an element of nature like


36

PARTEX GALLERY

fish, flying geese etc is engraved on the furniture, it is called ‘Nature Series’.

There are some bedroom sets called ‘prince’,’princess’ etc. which upholds

royalty and hence named as ‘Royal Series’. The bedroom sets which have

embraced the folk designs and crafts like ‘nokshi’, ‘wheel’ etc. are under the

series named ‘Partex Folk’1.

6.2. Description of sub-categories

i. Prince Bedroom Set:

Prince bedroom set, a full line bedroom set, is a feast to see two cultures

mixed in such exciting manner. The headboard of the bed has a Roman pillar

in the left side and floral patterns from the subcontinent engraved on the

right. The excellent 60% gloss lacquer stain feels like muslin.

ii. Evening Bedroom Set:

Evening bedroom set, comprised of bed, dressing table and almirah, upholds

the scenario of the sea beach in the evening. The bed is an excellent

cascade of salty blue water turned mahogany by the setting sun. Palm trees

explode out of the structure like dancing breeze over nature. The footboard

of the bed is slightly carved and simple with the name of ‘Evening’ engraved

on it. The mirror is so large that a girl can see a full size reflection of herself

on the mirror. The almirah has the palm tree and setting sun engraved too.

iii.Heritage Bedroom Set:

Heritage bedroom set is a prominent example of ‘Partex Folk’. The design

upholds the heritage of Bangladesh with the carvings of plough, cart, fence

and hat of the farmer. You can have a bedroom set which talks about your

origin, touches your heart and becomes the soul of Bangladeshis.

1 Detailed list in Appendix -6


37

PARTEX GALLERY

6.3. Raw materials used

Timber is used to make furniture of all these three subcategories. Teak,

Champ wood etc. are used mostly. The logs are stored in sheds to protect

from direct sunlight and rain. Subsequently, logs are sawn to planks well

ahead of time and seasoned to moisture content of 12+2 % in the most

modern seasoning kilns. These are then again sorted out and good portions

are selected for furniture production. The level of formaldehyde emission is

kept to international standard to make the Furniture and wooden materials

fire retardant. Furthermore, water-based adhesive is used in joints furniture.

Strict supervisions in all stages of manufacture are mentioned1.

Australian Lacquering technology is used in all these three categories. This

lacquer is Called ‘NC lacquer’ which is very famous in the furniture world.

This enables a wide diversity (Infinite number of combinations) in the choice

of colors named in dramatic tones such as (1) Sandgold Cherry, (2) Sandgold

milky white, (3) Granite crackle etc. In case of ‘Partex Folk’, sandgold cherry

is used while light to deep mahogany color is mostly used for ‘nature series’

and ‘royal series’.

The touch of craftsmanship and unique design is found here. The trained

craftsmen living in the factory region make this furniture from the core of

their hurt. Even, the wives of the craftsmen work there and design the subtle

and delicate engravings on the furniture.

1Appendix-7


38

PARTEX GALLERY

7. Price

There will not be any change in the current pricing method of the company

for ‘Partex Aesthetic’. Partex is currently focusing on increasing the market

share which can be gained by getting mind share and heart share.

i. Pricing Method: Mark-up pricing

Reason:

To charge a fair price

Consistency in pricing policy

New form of design

As a matter of fact, this product has already been launched in the market

following the mark-up pricing method. So, a change in the pricing strategy

may negatively affect the consumer perception. So, the price will not be

changed.

ii. Strategic choice: It can be seen that in terms of durability, ‘Partex

Aesthetic’ is playing at the same level like Hatil, Legacy and Otobi. All of

them use lacquer technology in case of the timber furniture which helps to

ensure durability. But, ‘Partex Aesthetic’ brings about a new form of design.

So, this innovative design is being offered at a lower price than Legacy and

Hatil.


39

PARTEX GALLERY

8. Place

As furniture is a shopping product and people normally show dissonance-

reducing buying behavior while purchasing furniture, the proper placement

of showrooms and outlets is necessary for a company to be close to

consumers’ mindset.

However, Partex is not the forbearer of furniture industry in Bangladesh so

its proper placement is hampered by lack of suitable locations and silent

management. So far, Partex has only 7 own showrooms and 69 retail outlets

which is negligible compared to what other competitors like Otobi, Hatil has1.

This stands in the way of availability to customers.

To cope up with this situation, Partex is trying to have more dealers that will

eventually disturb revenue, as dealers require a high margin. It is observed

that, these small outlets contribute to the availability but on the other side,

hampers image as the store atmosphere is not properly managed.

The one way to solve this dilemma is to establish mobile information centre,

which will operate in different selective areas and will provide the customers

with all the necessary information they require to make a purchase. These

info-centers will also enquire about customers’ locality and assist them in

ordering from the nearby outlet. This direct marketing strategy will minimize

the need of additional showrooms. However, this strategy will take away the

opportunity of touch-and-feel which is very important for furniture buying.

Therefore, Partex first needs to identify locations near resident areas where

the target market will have more opportunity to pay at least one visit

1 www.partexgroup.com/furniture/contactus


40

http://www.partexgroup.com/furniture/contactus

PARTEX GALLERY

(favorably in a casual manner) and will come back to purchase in their

convenient time. If these places cannot be selected for establishing

showrooms or outlets then Partex should not hastily set up more outlets in

subliminal places rather it should build up direct communication to boost up

the popularity of showroom

Therefore, considering the present scenario ‘Catalogue Marketing’ is more

beneficiary for Partex to leave an impact on consumers mind. The catalogue

marketing strategy is described in the “Direct Marketing” section.


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PARTEX GALLERY

9. Promotion

In furniture industry, common perception is that word of mouth works very

well but in Partex no clear strategy to create positive buzz marketing has yet

been established. The overall Partex group has strong public relation with

press, cricket board, officials but that is not being used to foster furniture.

Sales promotion tools are widely used by the company to foster sales in

special occasions.

The promotion mix of Partex should be a pull strategy that is ads and the

company itself should run sales promotion. In addition, when positive

response is created, channel members can come forward to meet up to the

consumers problem solving.

The objective of the advertisement made for ‘Partex Aesthetic’ is to

persuade potential consumers so they will demand the furniture in their

homes. We can see from the buyer readiness stage that, the market is aware

of our presence but do not have good perception about us. Therefore, first

we need to inform customers through advertising and then persuade them to

buy. We need to increase market share, have strong competitors so large

budget is needed. However, as the product is differentiated, moderate level

of budget can be used but it has to be indicative to overall promotional

campaign.

9.1. AdvertisementPartex normally gives more thought about advertising in printed media

specially newspaper. Past observations done by other company personnel

indicates that, printed media brings more interested customer for them.


42

PARTEX GALLERY


43

PARTEX GALLERY

Choosing media

i. Tri-faced and banners

Benefits of Tri-faced Promotional need of Nature

series

Large reach in one single point Target customers Residence or office

or the road they use

Eye-catching transition Makes people interested to see the

next face of the tri-faced nature

series banner

Three different ads at time

sequence

Promotion of three different products

at same arrangement1

The structured message 2 :

Face 1: An “Almirah” on underwater having a treasure chest beside

it. The tagged line would be “Feel the elegance…”

Face 2: A “Nile Dressing Table” is standing on an ocean surface with

tagged line “Experience the beauty…”

Face 3: A “Sunrise Bed” in front of a mountain plain having a tag line

“Dream the Breeze…”

Strategies undertaken:

1 Marketing Management, Philip Kotler, Page- 5022 Appendix-8


44

PARTEX GALLERY

Tri-faced will be set on the following areas: in front of Sheraton Hotel, in

Gulshan Circle, at Mirpur Road and at Sonargaon Crossing as the reach to the

target market is higher there due to high traffic.

Tri-faced promotion will continue for 1 month in order to remind the

target market of our offerings continuously. A longer period of tri-face

advertising will not be followed, as that will create a sense of boredom

among the consumers.

Total cost for the tri-faced will be 1500tk per sq. feet

*(10’*20’)/12+50000tk tax, in total 75000tk1

ii. Newspaper

Benefits of Newspaper Promotional need of Nature

series

Flexibility Option to disperse information

limitedly

Timeliness Placement of ads on convenient

occasions like Eid, Bangla New Year

etc.

High credibility Popular and politically impartial

image of the newspaper

Good local market coverage2 Circulation exposureing large

percentage of target market

The structured message:

1 Referred to current report, financial statement2 Marketing Management, Philip Kotler, Page- 501


45

PARTEX GALLERY

The message is concentrated into building interest and desire according to

AIDA concept.

a) Appeal: Emotional appeal to motivate purchase

b) Structure:

In printed ads, conclusion will be drawn in a series so

consumers have freedom to draw conclusion at first and

check it afterwards

The strong or main idea is placed at last so it can have the

long-lasting effect1

The news media selected is the “Daily Prothom Alo” due to its high

score in relevancy.2

Effectiveness:

Description Effectiveness Timing



46

Filmstrip1: Arko was praising about the new female designer working with him. His

sister-in-law ridicules him “I can bet that my sister is a far better designer than your

colleague!”

Filmstrip2: Arko opens the bedroom door and gasps, “I am glad to have lost the bet

but how?”

PARTEX GALLERY

Target The target

market Reach Exposure

Frequency Pattern

Media Prothom Alo 24,00,0001 312002 3 Series

of three

adsPosition Last page

Spread 24 column inch

Appear From Tuesday

1 www.eprothom alo.com2 24,00,000*1.3%(target market to total population ratio= 1.3%)


47

PARTEX GALLERY

iii. Electronic media

Benefits of TVC Promotional need of Nature

series

Mass-marketing coverage Making people aware of nature

Low cost/reach ratio Cost effective tool to exposure target

market

Appeal to major senses Showing the beauty and design more

exclusively than other media.

Animated portrayal1 Will create interest about nature

series.

1 Marketing Management, Philip Kotler, Page-503


48

PARTEX GALLERY

Plot of the message

The message is concentrated into building interest and desire according to

AIDA concept

a) Appeal: Rational and emotional together is used to convince

consumers and persuade purchase.

b) Structure

The strong or main idea is placed at last so it can have the

long-lasting effect

Two-sided ad is used first to convince the educated

audience.


49

Scene 1: a young woman is talking to her fiancée as she prepares to go to buy furniture with him. She ends the phone call and while passing the corridor of her house, she peeps into the bedroom of her elder brother's bedroom. There is a large bed with heavy design. But, as the quality of the wood is not that good, part of the bed has become fade and there is a crack on the side of bed. The girl sighed and left.

Scene 2: the man (who is the fiancée of the woman seen in the first scene) passes through his house and peeps into his younger brother's bedroom. The bedroom is full with mechanized furniture. The room is very simple and the border of the mechanized furniture is torn and displaced. The man sighed and left.

Scene 3: the man and the woman entered into the ‘Partex Gallery’ and they were amazed to see the unique design.

Scene 5: then there will be the tagline...now innovative design lasts

PARTEX GALLERY

Among the great number of local satellite channels, ATN and NTV

has been selected for their overall high score.1

Effectiveness:

Description Effectiveness Timing

Targe

t

Reach Frequency Pattern

Media ATN and NTV 46,57,9202 10 per

week

Continuous

on same

schedule

for 1

month

Positi

on

8:15- Houseful at NTV

11:30-Doll’s House at

ATNSprea

d

8:00-12:00

Appea

r

Mid break &

beginning of program

Durati

on

30 Sec.

iv. Miniature display

To maximize the reach to the target customer and to gain favorable

positive attitude from them, a miniature room display having the size of 4

feet by 4 feet will be set on Nondon Park. The miniature will represent a

completely decorated “Evening Bedroom set” made of plaster and

hardboard but colored in the dark chocolate plating to give real feelings.

There will be a “Voucher Corner”. It will offer discount to visitors who are

interested in furniture buying.

1 2 Referred to financial statement


50

PARTEX GALLERY

9.2. Sales Promotion

Objective:

To enhance long-term relation and reinforce position

To induce short-term quick response

To act as a base of future direct marketing and the step to initiate

positive word-of-mouth

Sales promotion Strategy:

Observing from the consumers perspective we can say that so far the sales

promotion given by the companies is, nothing but a discount or rather say,

price cut. This practice is followed commonly by all companies and is mainly

used during national occasions. However, as this has become quite a norm,

none but only the market leader benefits from it. This practice although

works during those occasions, hampers the normal sales all the year round

as consumers only wait for that occasion to come instead of immediate

buying. Furthermore, as all companies offer discount more or less on the

same range the image of brands thriving to be a market challenger from

market follower; becomes more diluted in consumers mind. Therefore, we

came up with strategy that will eliminate the need of providing discount and

will function as an image-building tool.

Gift box on purchase

When the consumer buys furniture, a wooden and carved box will be given.

The box will contain the receipt and warranty card. On the cover of the box,

the logo of the company will be engraved. It will help sustain long-term

relationship.1

1 Appendix 14


51

PARTEX GALLERY

9.3. Direct marketing

In case of Partex, direct marketing should be held in a very limited basis with

an objective to maintain good relation with most preferred consumers aka

the butterflies and to attract the large portion of consumers. The reasons to

choose direct marketing for the above-mentioned conditions are given

below:

Direct marketing counts customer experience and thus make

way for improved relation with the preferred prospects. In other

words, it is the base of customer relationship management.

When communicated directly, consumers perceive extra value of

offerings and in return gives credit to the brand

Saves time and travel of the consumer and provide information

when they are unable to search for it

Catalog marketing in Meena Bazaar, Agora

Will serve the purpose of being an everlasting manual or

guide to which consumers can refer to for future needs for same

category of products

Consumers find time and opportunity of having necessary

information even when they are preoccupied with other shopping

plans

The above-mentioned places are picked due to the common

preference of target market to shop there for grocery items


52

PARTEX GALLERY

10. People

From the SWOT analyses, it is obvious that the salespersons in Partex Gallery

are quite associative and friendly comparing to the competitors. This is really

a strength which can become very valuable if used properly and efficiently.

Partex ensures very friendly and informative approach to highly preferable

consumers who are very likely to buy from them.

At present, Partex do not believe in indulging time to attract customers who

are not ready to buy and quite negative for window-shoppers.

The new strategy will focus on providing organized selling teams in all

showrooms and that process is described below:

10.1. Design based informed salesperson for timber furniture

Better informed about the design and can satisfy the

curiosity of the customer

Can give more attention to individual product

Has more opportunity to demonstrate key features of

a certain category

Can match the key feature to a reason to buy and

provide solution to customers need

To counter the disadvantage the design-based role-play has, the main booth

or transition corners corner will have a few salespersons that will respond

according to customer need and will guide through to the design-based

salesperson.

10.2. Customer need based salesperson set up close relation with every buy


53

PARTEX GALLERY

can react differently to current vs. new, major vs.

regular customers

can make the environment free and friendly for

window shoppers by not bothering with heavy

product jargon thus enhance probability of potential

customers

can refer to category that mostly satisfy the need


54

PARTEX GALLERY

11. Physical EvidenceThe overall environment of showrooms and information giving were regarded

as an extra expenditure. Partex tries to create the simulation of real use of

furniture but spending too much time there is regarded as a drift from

furniture. The reason is that some consumers are found talking about the

cushions more than the furniture1. The outside looks of the showrooms are

being kept as simple as possible. However, the showrooms of Partex are

clumsily decorated. The furniture is not kept in a categorized manner. The

gallery itself does not have an appearance of a furniture store.

The new strategies will strengthen our positioning by image building and

channel renovation.

11.1. Renovating showrooms-

Partex showrooms will be renovated. The whole building will have a theme

that reflects the identity of Partex furniture. The color will be a combination

of dark brown and light brown. Tiles will be used so that the color seems

glossy. The color will represent the elegance of wood. The main exterior

pillar will resemble the design of Nature Series, especially the design of

Prince Bed. On exterior wall there will have green color that will resemble the

nature friendliness.

The indoor pillar will be similar to the trunk of a tree. The wall will have

glossy posters that will portray how a bedroom will look if it has Partex

furniture. The posters of how carefully the furniture is made and how Partex

ensures the quality of wood will be depicted. There will be option of lighting

1 SWOT Analysis, Appendix-13


55

PARTEX GALLERY

so that a customer can watch how the color of furniture changes as the light

changes.2

2 Appendix-10


56

PARTEX GALLERY

11.2. Design based categorization

To develop a faster and more efficient purchase process, the placement of

furniture should be planned and it should be executed in a tactful way. As

“Partex Aesthetic” is the focus of Partex Gallery now, this category needs

special care. Sometimes, target customers cannot pick up or choose bed-set

according to their likings due to untidy decoration. As the whole bed-set

carries different designs, design-based categorization, which will also foster

room-based categorization, is included in the new strategy. Thus, other types

of furniture and “Partex Aesthetic” will not confuse consumers and

consumers will have the delight of seeing a complete bedroom setting.

12. Evaluations

The focus of the marketing campaign is to create a brand image of Partex Furniture. The campaign will have five components, Tri-faced Billboards, Newspaper ads, television ads, miniature display and structural renovation. For their time specific and concentrated focus, Tri-Faced and Miniature Display are evaluated separately. Warranty is also evaluated in terms cost and perceived value.

Campaign Component Taka

Newspaper 7,16,200

TV 9,37,500

Structural Renovation 21,00,000

Total 37,53,700


57

PARTEX GALLERY

Sales Growth 10,97,00,0001

Return on Marketing Investment 2822.45%

Tri-Faced Billboard

Cost 6, 20,000 tk

Sales Growth 5, 75, 70,000 tk2

Return on marketing Investment9185.48%

Miniature Display

Cost 50,000 tk

Sales Growth 8,91,000 tk

Return on Marketing Investment 1682%

Warranty

Cost 20,510 tk3

Warranty contributes to increased brand value. Which in turns helps to achieve the targeted sales.

1 Appendix-142 Appendix-143 Same as above


58

iv

AppendixAppendix-1: Rates of SW analysis

Weakness strength

Partex 6.818181818 6.313432836

Otobi 5.25 6.880597015

Navana 7.15 4.940298507

Hatil 5.684210526 5.029850746

Akhtar 7.055555556 3.089552239

Legacy 6.722222222 3.059701493

Others 5.055555556 1.402985075

Appendix-2: Rates of OT analysis

Threats Opportunities

Partex 7.5 7.8

Otobi 6.714285714 5.7

Navana 7.5 4.8

Hatil 6.571428571 5.4

Akhtar 7.357142857 1.8

Legacy 6.857142857 1

Others 4.428571429 0.777777778

Appendix-3: The GE Matrix (Business Strength)

Sl.

No.

Business Strength Variable Weigh

t

Rating Contributi

on to C.

Rating

1 Exclusive Design 0.11 4 0.44

2 Durability of Products 0.10 5 0.50

3 Relation with foreign timber trade 0.11 5 0.55

4 Own raw material source 0.08 5 0.40

5 Solid wood use minimization 0.09 5 0.45

6 Relationship with advertising agencies 0.08 4 0.32

7 Relationship with press 0.08 4 0.32

8 Consumer friendly sales force 0.03 5 0.15

iv

Appendix9 Spacious Showrooms 0.03 3 0.09

10 Distribution Channel 0.08 3 0.24

11 Useful Website 0.02 4 0.08

12 Multipurpose designed furniture 0.03 4 0.12

13 Categorization of products in the

showrooms

0.03 2 0.06

14 Continuity & concentration of

advertisements

0.08 2 0.16

15 Demonstrative Catalogues 0.02 3 0.06

16 Home delivery service 0.03 2 0.06

Company Rating 4.04

Appendix-4: The GE Matrix (Market Attractiveness)

Sl.

No.

Market Attractiveness Variable Weight Rating Comtributi

on to C.

Rating

1 Environmental awareness .03 3 0.09

2 Brand value .10 4 0.40

3 Approval of artists .07 2 0.14

4 Traditional craftsmanship .07 4 0.28

5 Creative mechanized timber

furniture

.05 4 0.20

6 Attractive design .20 4 0.80

7 Durability .15 3 0.45

8 Helpful sales representative .06 4 0.24

9 Available outlets .10 3 0.30

10 Quick delivery .07 2 0.14

11 Persuasive advertising .10 2 0.20

Rating 3.24

Furniture Industry

Particle Board Based Wood Based / Veneered Boards

- Plain Particle Board- Vinyl Board- Timber Framed Board- Plytex Ply wood- Lacquered- Flush Door- Aperture Door- Louvre Door- Honey Combed Door

- Burma Teak- White Seder - Champ - Chapalish- Garjon- Mehogony- Other commercial Veneer

COMPETITORS (particle market):

Akiz ParticlesStar Particle Board Mills LimitedOTOBIForeign imported furniture.

COMPETITORS (Wood market):

HATILItalian Furniture (imported)PARTEX GroupG-Mart

iv

AppendixAppendix-5: The Furniture Industry

iv

AppendixAppendix 6: Product line of ‘Partex Aesthetic’

Partex Aesthetic

1. Royal Series 1. Prince Bedroom Set

2. Prince Bedroom Set 2

3. Princess Ragini Bedroom

Set

4. Princess-2

5. Mughal Bedroom Set

2. Nature series 6. Evening Bedroom Set

7. Moon Bedroom Set

8. Morning Bell Series

9. Garden Bedroom Set

10. Eagle Bedroom Set

11. Fish Bedroom Set

12. Flying Geese Series

13. Forest Bedroom Set

14. Swan Bedroom Set

15. Paddy Field Bedroom Set

16. Nile Bedroom Set

17. Burning leaves Bedroom

Set

18. Dinosaur Bedroom Set

19. Bamboo Bedroom Set

20. Penguin Bedroom Set

iv

Appendix3. Folk series 21. Nokshi Bedroom Set

22. Heritage Bedroom Set

23. Anchor Bedroom Set

24. Horn Bedroom Set

25. Wheel Bedroom Set

iv

AppendixAppendix 7: Characteristics of wood used in manufacturing

Hard Wood Specification Imported Teak Champ Teak

Density, Kg/m3 560-640 610

Modulus of rupture (n/mm2) 100 65

Shrinkage % radial 105 3.2

Tangential 2.5 5.2

Moisture % 10-14 10-14

Appendix-8: Tri-faced sample

iv

Appendix

Face 1: Almirah

Face 2: Dressing Table

iv

Appendix

Face 3: Bed

iv

AppendixAppendix-9: Newspaper ad sample

Episode 1: How the ad will Look on the paper

iv

Appendix

Episode 2

Episode 3

iv

AppendixAppendix-10:Unweighted scoring on a scale of 1-5

Prothom Alo Jugantor Somokal Daily Star

Total circular 5 2 4 3

Editorial

Quality

5 4 4 5

Attention

creating

5 2 3 5

Targets

media habit

fulfilling

5 3 4 5

Appendix-11: Unweighted scoring 1-5

Ch.I Ch.1 NTV ATN Bangl

a

vision

ETV RTV BTV

Targets

entertainmen

t

4 5 4 4 4 4 4 3

Editorial

Quality

4 4 4 5 3 5 2 2

Ad slot 4 3 4 5 3 4 3 4

Credibility in

info given

3 3 3 3 3 3 3 3

Reach to

target

3 3 4 4 3 3 3 2

iv

AppendixAppendix-12: The showroom pictures

Through Artist's eyes: Renovated Farmgate Gallery

Through Artist's eyes: Renovation of Mirpur showroom

iv

AppendixAppendix-13: The SWOT analysis

Strengths

Variables Partex Otobi Navana Hatil Akhtar Legacy Other

1st movers advantage 9 2 0 10 7 8 6

Comfort in using furnitures 6 9 7 8 4 4 5

Attractiveness of the design 8 7 3 9 6 10 7

Accommodation of the design 8 10 9 9 7 6 10

Multipurpose fulfilling design 6 10 6 8 5 4 6

User-friendliness of the design 8 9 8 8 6 5 2

Design ensures health safety 10 6 6 6 9 9 7

Durability of products 10 5 5 6 8 9 4

Consistent quality 10 9 8 6 4 10 1

Attractive packaging 5 8 7 8 6 5 1

Descriptive packaging 5 7 6 8 4 2 0

Package as recognition of brand 2 9 8 9 2 2 2

Safeness of packaging 0 5 0 5 0 0 0

Environment-friendly packaging materials 9 9 9 9 7 7 0

Label design in accordance with PDT design 5 10 9 8 5 4 0

Label beautifying product 3 6 4 6 3 0 0

Partnership with outside distribution channels 8 10 9 5 0 2 0

Frequency of Buyer-seller interaction 9 10 8 7 6 5 3

Customer-centered sales reps 6 4 5 4 3 3 2

Customer helpline 0 2 0 0 0 0 0

Customer hot line 0 1 0 0 0 0 0

Friendliness of sales reps 8 7 5 6 5 6 2

sales assistance in giving info to customers 8 7 6 5 4 6 7

iv

AppendixCompliance with consumer rights law 7 8 6 7 4 3 2

Compliance with environment law 9 8 8 7 6 5 2

Compliance with safety law 8 9 8 8 6 5 1

Minimization of wood use 10 9 9 8 4 3 2

Relation with foreign timber traders 10 6 6 8 6 4 0

Relation with ad agencies 10 8 9 5 3 2 0

Fast decision making 8 9 7 7 2 3 8

Spaciousness of showrooms 9 10 8 7 6 3 1

PDT-type categorization in showrooms 8 10 5 7 5 2 1

Room-based categorization 6 9 6 7 4 5 0

Design-based categorization 3 9 4 7 1 6 0

Data transaction between stores 6 8 6 3 2 2 0

Selling within stores 8 9 6 2 2 2 0

giving infomercials 10 10 10 8 5 3 0

Continuity of ads 6 8 3 2 0 0 0

Concentration of ads 5 7 2 2 0 0 0

Acceptability of e-cash 10 10 10 10 10 10 0

Acceptability of check money 10 10 10 10 10 10 6

Folding capability of the products 5 10 10 9 1 1 0

Persuasive ads 5 9 4 1 1 1 0

Ads reinforcing buyers purchase decision 6 9 7 3 2 2 0

Decisive ads 6 8 6 3 1 1 0

Vivid demonstration in tv ads 3 8 0 0 0 0 0

Dramatical portrayal in ads 4 9 0 0 0 0 0

Illustrative of printed ads 8 8 5 2 0 0 0Providing PDT to entertainment media to get publicity 1 1 0 0 0 0 0

iv

AppendixIn-store demonstration 8 0 0 10 0 0 0

Art & craft competition 0 9 0 9 0 0 0

Festivity orientation 10 10 10 10 10 8 0

Ability to create own RM 10 5 0 0 0 0 0

Charity show organizing 1 1 0 0 0 0 0

Favorable relation with press 10 6 6 0 0 0 0

Relation with legislators 10 6 0 0 0 0 0

Appreciable logo 3 8 2 7 2 6 2

Informative catalogs 6 9 6 2 2 2 2

Telemarketing 8 6 0 0 0 0 0

Placement of kiosk marketing 0 0 0 0 0 0 0

Eye catching billboards 2 4 0 1 0 0 0

Rich content of web page 7 0 0 10 0 0 0

Sites ability to make interaction among users 5 0 5 0 0 0 0

Easy communication by web page 3 0 3 0 0 0 0

Partnership with other websites 2 0 0 0 0 0 0Salesperson as a solution vendor to customers 10 10 10 0 8 7 0

Fast home delivery 4 6 6 5 3 2 2

Average 6.31 6.88 4.94 5.03 3.09 3.06 1.40

Weakness

Variables Partex Otobi Navana Hatil Akhtar Legacy other

De-motivating corporate ladder 8 6 9 10 10 10 10

Hasty decision making 7 6 9 10 10 10 10

Unavailability of previous data 9 2 4 3 10 10 10

iv

AppendixDelay in planning 7 3 8 9 3 9 9

Owner’s intervention 4 2 9 9 9 9 0Inconsistencyof corporate culture 9 4 9 9 9 9 9Communication gap within management levels 9 7 10

Rigid, old structure 5

Centralization 5 5 9 9 10 10 10

Unfeasible customer base 2 2 2 2 2 2 2

Use of extra brand extension 10 5 6 5

Sales promotion resulting in quality delusion 10 10 10 6 6 6 0

Sales promo increasing price sensitivity 10 10 10 6 6 0 0

Unsuitable location of showrooms 8 6 9 5 10 8 0

Absence of trade allowances 0 0 0 0 10 10 10

Training and development 5 8 0 0 0 0 0

Package vulnerability 8 5 9 7 10 10 10

Weak demand forecasting 8 9 9 5 5 5 0

Intra-group disagreement 8

shortage of skilled craftsman 1 2 2 2 4 1 0

Within store rivalry in making sales 8 9 9 4 3 2 1

Shortage of state-of-the-art machines 9 4 10 7 10 10 10

Average 6.82 5.25 7.15 5.68 7.06 6.72 5.06

Opportunities

Variables Partex Otobi Navana Hatil Akhtar Legacy other

Environmental awareness 10 9 8 8 3 2 1

15% demand increase 7 9 6 9 2 2 2

iv

AppendixGrowth of brand furniture 9 10 9 10 2 2

Government facilities 2 2 2 2 2 2 2

Intro of panel based furniture 10 5 2 0 0 0 0

Approval of famous artists 9 2 2 2 2 2 2

Approval of environmentalists 10 9 9 8 0 0 0

Appreciation of folk crafts 10 0 0 5 7 0 0

Export opportunities 9 9 9 9 0 0 0

Globalization 2 2 1 1 0 0 0

Average 7.80 5.70 4.80 5.40 1.80 1.00 0.78

Threats

Variables Partex Otobi Navana Hatil Akhtar Legacy Other

Dependence on outside supply 3 5 8 9 7 7 10

Maturity of timber furniture 9 5 5 5 9 9 0

High exit barrier 8 10 10 10 10 10 10

Oligopoly market 8 8 8 8 8 8 10

Competitors price leadership 10 10 10 8 10 10 5

Lack of import barriers 8 8 8 7 7 7 10

Rise of plastic furniture 9 5 5 5 9 9 0

Demand of wrought iron furniture 2 2 3 3 4 5 5

Consumers low attention span 8 8 8 7 5 5 0

iv

AppendixConsumers avoidance to ads 8 9 10 10 10 10 0Unexposureable media habit of the consumers 10 10 10 8 8 7 0

Standard are set by mkt leaders 10 2 10 2 6 2 10

Competition clutter in furniture industry 10 10 8 8 8 5 0

Free market to new arrivals 2 2 2 2 2 2 2

Average 7.50 6.71 7.50 6.57 7.36 6.86 4.43

iv

AppendixAppendix-14: Evalution Details

Cost of the prepared marketing campaign:

Campaign

Component

Duratio

n

Possible Reach Cost

(taka)Newspaper 3 Day 24,00,000apprx.1 7,16,2002

TV 1week 46,57,920apprx.3 9,37,5004

Structural

Renovation

10

years

41,85,432apprx5 21,00,00

0Total 1,12,43,352apprx. 37,53,70

0

Exposed target segment among total reach (1,12,43,352*1.3%6) = 1,46,164

Actual purchase maker7 6.15%8 which is 1,46,164*6.15%= 8,990

On average sales of 30,000taka gives total sales of 8,990*30000 = 26,97,00,000tk

1 Circulation of Daily Prothom Alo2 Price of the newspaper ads, for 24column-inch first/last page: (12000|9600)*24*3 total- 8,64,000|691200 tk + design 25,000tk total- 8,89,000|7,16,200tk. Last page of Prothom Alo is selected because to go to the entertainment page directly, you have to go through the last page. Last page is thus more effective on our target segment, Urban educated middle class women. 3 Number of households with TV(‘0000s)= 2485Rate of households having TV= 3.84%Total reach=2485* 3.84% = 95.424(‘0000s)Total population=12130Population watching TV = 95.424*12130/2485= 465.792. (Bangladesh Statistical Yearbook 2006 page 57)4 Price of Advertising:

Making the Ad: 1,50,000On NTV:

1 fixed before programms 10,500*1- 10,500tk2 during the mid break of the program 12,000*2- 24,000tk2 random 9,000*2- 18,000tk

On ATN: 1 fixed before programms 12,000*1- 12,000tk2 during the mid break of the program 13,500*2- 27,000tk2 random 10,500*2- 21,000tk

Total 1,12,500tk 7,87,500tk9,37,500

5 Statistical Yearbook 2001 Community Series Dhaka 2001, Statistical yearbook Bangladesh 20016 Target segment percentage for Bangladesh = target segment population/Bangladesh population as per 2001 census = 1580328/124355263 = 1.3%apprx.7 People who will actually buy.8 From Bangladesh Furniture Fair 50,000 people visited the fair, made purchase from Partex. Target reach 50000*1.3%=650. Actual Purchase was 40. Actual Purchase Maker Percentage 40/650=6.15%

iv

AppendixSales Growth 26,97,00,000-16,00,00,000 = 10,97,00,000tk

Return on Marketing Investment (10,97,00,000-37,53,700)/37,53,700 = 2822.45%

Miniature Display at Nondon Park

Reach 365*100 = 36,500

Target Segment Reach= 36,500*1.3% = 474.5

Actual purchases 474.5*6.15% = 30

10% Concession for Visitors at Nandon

Sales = 30*30,000-30*3000*10%=8,91,000tk

Cost : Miniature making = 15,000

Publicity =35,000

Total = 50,000tk

No cost will incur for the placement, as it will be an agreement with

Nondon.

Return on Marketing Investment = (8,91,000-50,000)/50,000 = 1682%

Tri-faced Billboard

Number of Bill- Board: 4

Position: Kolabagan at Mirpur Road, Gulshan Circle, in front of The

Sheraton Hotel and at Sonargaon crossing.

Time: During Ramadan

Duration : 1 month

Cost : per bill-board

iv

AppendixRent (1500 per sq. feet, 10’*7’) 1,05,000

Tax 50,000

Total 1,55,000tk

For 4 bill boards, the total cost : 1, 55,000*4 = 6, 20,000

Reach:

24, 00,000apprx.1

Target segment reach 24, 00,000*1.3% = 31,200

Actual purchases 31,200*6.15% = 1919

Sales 1,919*30,000 = 5, 75, 70,000 tk

Return on Marketing investment = (5, 75, 70,000-6, 20,000)/ 6, 20,000

= 9185.48%

Warranty

0.5% furniture to repair 32,81,61,000*0.5% = 16,40,805

tk

500 tk repair cost per 40.000 tk furniture amounts to

16,40,805*500*40,000 = 20510

1 Commuters on the roads of DhakaForm Community Series, Dhaka 2006, page- 65,78, 100

iv

AppendixAppendix 15: Gift Box

iv

AppendixApproximate Cost per Box: 350 tk

marketing plan for partex furniture final

Documents

partex furniture limited195

partex furniture limited175

mechanized furniture

wooden furniture

imported furniture

positioning partex

review of partex

ot analyses of partex