marketing strategy of partex furniture

PARTEX GROUP

Report on

Marketing Strategy of Partex Furniture

A Study on Partex Furniture Industries Limited

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PARTEX GROUP

Table of ContentSl Subject1 Letter of Transmittal 2 Certificate of Supervisor3 Acknowledgement4 Executive Summery 5 Introduction:

a. Origin of the reportb. Problem & Purposec. Historyd. Scopee. Limitationsf. Sources and Methods of collect g. Initialize and acronyms

6 Company Overview:a. How to startedb. Visionc. Values

7 Main Furniture Companies in Bangladesh a. Name of the Companies

8 Segmention, Targeting & Positioning (STP) of Partex Furniture9 Summary of Marketing strategies10 Internal Analysis of Partex Furniture: Assessing Strength and

Weakness for PARTEX11 External Analysis of Partex Furniture: Assessing Strength and

Weakness for PARTEX

12 Business Level Strategy

13 Functional Level Strategies

14 Corporate Strategy

15 Strategy in Global Environment for the Company

16 Problems finding

17 Recommendation 18 Conclusion19 Bibliography


PARTEX GROUP

Executive Summary

Partex furniture Industries Limited is a growing company in furniture industries of Bangladesh, it almost has gone the market leader position in Partex board and upper class wooden furniture. Its mother concern is star particle board supplies the product all over the country.Partex furniture produces two types of board such as; laminated board and Partex board.

Laminated board: The raw material of LB is cheeps of wood. The lamination paper (melamine paper, pvc and normal paper) which imports from abroad is attached into upward and backward both side of the board and the bits of this board are covered by edging. Partex board: Raw material of this board is cheeps of solid timber. It is made high technological machineries.

Wooden furniture: The wooden furniture is made by Furnitex board which is attached with the veneer. The whole frame of the product is wood and the body is made by Furnitex board besides many wooden furniture are made by traditional way which is made by pure wood.

This report is divided into three parts, the introduction part, organization part and conclusion. The introduction part discusses origin of the report, history, Vision, Mission, Values, etc. the organizational part describes the corporate structure of Partex Furniture Indus. Ltd. and the Conclusion part discussed over all findings, recommendation.


PARTEX GROUP

Introduction:

a. Origin of the report: this report is development as a course of the MBA program. When I have presented my report to my supervisor, he will authorize my report. This report is written by me under the supervisor Md. Shahin Ahamed Chowdhury.

b. Problem and Purpose: My corporate purpose is state that to succeed the problems and pattern statement of Partex Furniture. But the whole information about Partex Furniture as like what is working system how is its management system and etc. are not clearly given on its website.

c. History: Partex Furniture is a leading manufacturing furniture, brought revolutionary changes in the furniture market in our country since its start 2000 and owned by Mr. Aziz Al Kaiser. First it had started in a small scale, but today Partex Furniture is fully equipped with latest technologies.

h. Scope: Partex Furniture is a world class furniture providing company, has a big functioning network of its business in our country and other country. It has several Gallery and Branches. I have tried to cover about marketing strategy of Partex Furniture.

i. Limitations: For the want of the proper data and reliable resources I can not include the financial information in this report.

j. Sources and Methods of collect: I have collect the information from the Secondary data, such as: Companies journal, brochure, articles, websites and Monipuripara Gallery.

How to started:


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PARTEX GROUP

combination of special imported

laminated board, stainless steel

accessories and high standard plywood offers

the best quality and cost effective substitute for

natural timber for custom-made innovative,

modern and stylish furniture. PARTEX Furniture

produces a diversity of products maximizing the

use of timber-substitutes as well as

products of solid timber. Within a short span

of time laminated board furniture has been able

to claim a sizable portion of the market. This is

a commitment of PARTEX GROUP to use eco-

friendly materials, as much as possible.

Currently, we are providing an ever-increasing

range of products to meet the greater than ever

demand of furniture for households, offices and

educational institutions.

A

________Partex Furniture’s Vision


PARTEX GROUP

VISIONe are the leading furniture solution provider in Bangladesh achieving our business vision through growth in market reach, increasing operation size,

international distribution, total service and consistent branding activities by the being most customer focused & Innovative, cost effective & efficient, environmentally responsible & quality concerned company in the business.

W

MISSION

o be the most consumer-focused, competitive, efficient, innovative, and environmentally responsible and quality concerned leading market oriented furniture manufacturer, sales and distributor of Bangladesh.

Values______________________

CUSTOMER FOCUSED & INNOVATIVE

We believe our success depends on our customers. Thus, our primary value is fulfillment of our customer's needs. Our manner of achieving this success is to include value for money, different price ranged functional products, complete solutions, free technical consultancy services, after sales support, efficient delivery, and above all quality products that exceeds expectations. We believe in providing our customers new and innovative products with international standards to match wit the changing lifestyle of today.

COMPETITIVE & EFFICIENT

We believe our competitive nature thoroughly ensured as when we provide highest quality products in the most perceived prices. We are committed to our value in relationship with our stakeholders where our core product is associated with efficient and reliable services.

ENVIRONMENTAL STEWARDSHIP & EXCELLENCE IN QUALITY

We believe in maintaining, operating our business in such a manner so that it is sustainable for the future. We want to combine economic use


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PARTEX GROUP

of wood and create wood substitute products for our furnishing needs and constantly devote our production, research & development to remain environmentally responsible. We are committed to find new methods and technologies to improve our services. We believe excellence is our only standard for all our approaches.

INTEGRITY

We are committed to conduct our business in such a way that demonstrates highest ethical standards. We believe integrity is our imperative utility to succeed in what we do.

Main Furniture Companies in Bangladesh:

1. Name of the Companies:a. OTOBI Ltd.b. Partex Furniturec. HATIL


44

PARTEX GROUP

d. Navana Furnituree. Akhter Furnituref. Brothers Furnitureg. Legacy

Source: Bangladesh Furniture Indus. Owners Association Report -2010.

Segmentation, Targeting & Positioning (STP) of Partex Furniture:

Segmentation: PARTEX Furniture Industries Ltd products international quality furniture. A combination of special imported laminated board, stainless steel accessories and high standard plywood offers the best quality and cost effective substitute for natural timber foe custom made innovative, modern and stylish furniture. PARTEX Furniture produces a diversity of products maximizing the use timber substitutes as well as products of solid timber. Partex Furniture segregates its product with individual care wise. Such as:


PARTEX GROUP

Targeting: The Sky is not the limit for Furniture Market but expectation is within limits. Therefore, our imagination soars beyond conventional barriers. We share or destiny with our beloved motherland. We want to serve her in the greater quest for national uplift. Partex Group is committed to the prosperity of Bangladesh. Our enterprises play a positive role in alleviating poverty and generating employment an important objective of our country. This has been possibly through continuous customer support and loyalty which we are proud. We endeavor to reach our products and services at the client's doorstep through a network of sales and distribution outlets. Human resources is our key asset, who translate the group's objectives into realistic performance. We are committed to have the best people and train them to get the best from them. Ours is a free market economy, where private sector


PARTEX GROUP

plays a key role in establishing an industrial base. We believe in new ideas and technology which the road to the future. We shall travel this road hand in hand with our customers and our employees to seek and find prosperity for the Group and the country. We are the leading furniture solution provider in Bangladesh achieving our business vision through growth in market reach, increasing operation size, international distribution, total service and consistent branding activities by the being most customers focused & Innovative, cost effective & efficient, environmentally responsible & quality concerned company in the business. To be the most consumer-focused, competitive, efficient, innovative, and environmentally responsible and quality concerned leading market oriented furniture manufacturer, sales and distributor of Bangladesh.

Positioning: Positioning or Market Share: Per year:

a. OTOBI Ltd. – 500 Crore/ Yearb. Partex Furniture - 100c. Hatil Furniture - 45d. Navana Furniture - 40e. Akhter Furniture - 20f. Brothers Furniture - 15g. Legacy - 10

It is clear that Partex Furniture is in the second position in the Furniture market of Bangladesh.

Summary of

Marketing strategies


PARTEX GROUP

Marketing Mix


StrategyDistribution

Promotion

Pricing

‘The set of controllable tactical marketing tools-product, price, place and

promotion.’

Developing Quality of a

product

PARTEX GROUP

The Process of Marketing


4P’s 4C’s

Product Customer solution

Price Customer cost

Place Convenience

Promotion communication

Build profitable relationship

Construct as integrated marketing

program

Understanding the market place needs

the wants

Designing a customer driven marketing

strategy

Capture value from customer in

return

PARTEX GROUP


PARTEX GROUP

Corporate-Level strategy

Partex has vertically integrated both into the Panel-based and timber-based furniture

industry because of their strength in raw material supply.

Because of vertical integration, Partex enjoys some competitive advantage compared

to its competitors.

Partex has invested Tk.100 crore in the furniture industry and this huge

investment acts as an entry barrier to its potential new entrant.

Partex will also be able to realize Economies of scope since they are fully

integrated in the furniture industry i.e. from producing raw materials to

distributing them.

Thus the two SBUs in the furniture industry: one is timber based furniture and the

other is panel based furniture

Business-level Strategy:

Interestingly enough the generic strategy for Partex is not ‘Cost Leadership and

Differentiation’ rather it is differentiation (not pure differentiation) backed up by

absolute cost advantage. The result is Premium price charged for products similar to

the competitors and obtaining lower cost than pure differentiators and higher levels

of profits than firms pursuing only one of the generic strategies.

Functional-Level Strategies

1. MARKETING


PARTEX GROUP

Always tries to pursue new product development focusing on quality, design and

customer needs, providing feedback to both customers and specialized functions, in

order to expand their market.

2. RESEARCH & DEVELOPMENT

Depends mainly on customer feedback for new product development and

communicates this to other functional areas, such as production

3. PRODUCTION

Concentrating on reaping most benefits out of panel based furniture due to low lead-

time, automation and sound vertical integration. At the same time, inefficiencies in

timber-based furniture are attempted to be countered with high design and

craftsmanship quality and doing batch processing to minimize costs.

Global-Level Strategies

It is not planning to put any manufacturing set up in the host country. Partex will

manufacture its products exclusively in the home country. As Partex’s current

targeted foreign market is UAE it has low pressures for Cost Reductions.

Pressures for Local Responsiveness are low as well.

Internal Analysis – Summary


PARTEX GROUP

Administration

Corporate Structure

Strengths Weaknesses

Top level Decision Making with

vast information seeking from low

level managers (take inputs)

Complex structure- difficult to

understand

Centralized DM

Poor understanding of the

structure by the mid level managers

Present structure hampers

successful growth in the future

Corporate Culture


Consistent culture Family Owned business concept

very prominent

Emphasis on quality,

craftsmanship and design and

integrity is maintained about this

Promotion only up to a certain

position, which may be de-motivating

to the employees. Short corporate

ladder

Customers are not refused, with a

certain limitation of the company


PARTEX GROUP

Marketing

Wide range of customer base

The corresponding strategy is to

focus on quality first and then

respond to demand

Planning many programs for

growth

Planning many programs but not

clearly stated, merely implied

Programs consistent with

corporate mission

Positioning by high quality product

at affordable prices. Therefore

product mx needs to be suited for

each income group

No past trends to base its

judgments or strategy formulation –

but can be countered with good

research and forecasting

Business Development


Technologically advanced in terms

of developing new products

Research is mainly observational

and participatory

Cost and quality can be controlled

as they are already in the supply side

Consistent with mission and

values


PARTEX GROUP

Operations


capability to produce imported RM

for panel-based furniture currently

imported

initial research suggested that

there is demand in this business but

partex did not plan its entry to take

advantage of its full potential.

BMRE Programs and plans merely

implied and not clearly stated

automated system for CKD

approach

current situation is not consistent

with missions, objective etc.

vertical integration gives

competitive advantage

Capacity planning possible in

panel based furniture

own supply channel ensures

smooth flow of RM

labour and technical teams ensure

quality and design

forecasting can be done in

relation to the followng factors about

the demand cycles

demand fluctuations have been

taken as a problem factor preventing

capacity planning

Human Resource


consistent with missions, as

employment is generated

These policies are not stated

clearly only merely implied

Training provided in a regular

basis

Low employee turnover

External Analysis – Summary


PARTEX GROUP

Five factor model

Opportunities Threats

Intensity of Rivalry

Due to the size of Partex, the

business can expect lower intensity of

rivalry

Brand image pioneered by Hatil and

Otobi – Partex not the pioneer

Currently in an oligopoly Timber based furniture industry is in

mature stage

possibility for being highly

consolidated in the future due to its

size, investment and integration

High capital investement leading to

high exit barriers

The brand furniture is growing

Demand is increasing every year by 15%.

The main forces in the market are

differentiated

No prominent labour union leading to

low exit barriers

Layoff cost is low leading to low exit

barriers

The group is not so dependent in the

furniture business leading to low

barriers to entry

Threat of potential competitors

Partex already has a brand image Otobi and Hatil already have brand

loyalty in panel based furniture

Absolute cost advantages

Advantage over economies of scale

and experience curve effects in panel

based furniture

Economies of scale and experience

curve effects are not present in timber

based furniture

High capital requirements for entry


PARTEX GROUP

Chairman being the member of the

Parliament can forecast regulatory

changes better than competitors.

The market is a free market and open

to any new entrants.

The current differentiation strategy of

Partex strong enough to bar both new

and existing competition.

Partex gauges expected retaliation

Threat of substitutes

Close substitutes are not performing

in the same market segment

Business-Level Strategy

Principal Issues


PARTEX GROUP

Partex’s Strategic managers plan of action for using the company's resources and

distinctive competencies to gain a competitive advantage over its rivals in the local

market is based mostly on its cost advantage over the competitors. At the heart of

the generic business-level strategy for the company lie the choices concerning

product differentiation, market segmentation, and distinctive competency. These

issues of Business level strategy formulation according to Partex are discussed

below:

The differentiation of furniture according to the need:

The study on Partex’s product offerings connote that the company follows two

different strategies for both Panel-based (Knockdown) furniture and Timber-based

furniture. These current strategies are as below:

Current Product Differentiation Issues:

Types of Furniture Issues for product differentiation

Panel-based This type of furniture is targeted to satisfy special

category of needs: office furnishing, kitchen and

home appliance, lower middle class home furnishing

by offering low-priced products.

However, selected customization of these products is

also offered allowing minor differentiation for upper

middle to higher economic classes in the local

market.

Timber This type of furniture offers uniqueness through the

product’s appeal to the consumers’ psychological

needs: such as brand image and perception of Partex

furniture being high-end product.

Recommended Differentiation Issue:

The capacity and the market forces suggest that the current strategy is sufficient for

Partex to continue in the industry.

The Segmentation of the furniture market:

Partex management grouped their consumer in terms of the income-based

classification and preferences. The segmentation is unusually large and looks

apparently unrealistic to allow Partex to gain competitive advantage. However, due

to the nature of the business of two types of furniture, the target group is bound to

be relatively larger. The current segmentation strategy is followed for both panel and

timber based furniture market.

Current Segmentation Issue:


PARTEX GROUP

The current segmentation strategy of Partex for both of its product line: Panel-based

and timber-based is a broad range – ‘Lower middle’ class to the ‘upper upper’ class of

the economic division of the Bangladeshi market.

Recommended Segmentation Strategy:

Types of Furniture Issues for segmentation

Panel-based ‘Lower middle’ to ‘Upper upper’ class as panel based

furniture consumer can be targeted for:

Office furnishing.

Kitchen furnishing with customization.

Home furnishing for ‘lower middle’ class.

Timber Timber based furniture with the new conception of

brand furniture is suitable for the ‘upper middle’ to

the upper end market with focus on appeal.

Distinctive competency for the business-level strategy:

As previously discussed Partex current distinctive competency is focused on:

Current Distinctive Issue:

Focused on continual product quality Partex strives to reach for better customer

responsiveness through a clear focus of the market trends and new product

innovation by newer designs. This organization of distinctive competencies includes

superior efficiency in production for the panel-based furniture but does not entail for

the timber-based furniture. This is however not a weakness, rather a characteristics

for the timber-furniture industry.

Recommended Distinctive Issues:

Since Costs-Leadership is followed is Panel-based furniture the corresponding

distinctive competencies should ideally be in the field of manufacturing and material

management. Similarly, for timber-based furniture following a differentiation strategy

should ideally have R&D sales and marketing as its distinctive competency. Partex

fulfills both these criteria.

The choice of the Generic Business-level strategy

Partex enjoys a distinctive production development within the system as the raw

materials for its panel and timber-based furniture both come from the single source.

As a result the company manages to reap gains from cost advantage as well as brand

image and appeal, leading to differentiation strategy.

Current Business-level Strategy:


PARTEX GROUP

Interestingly enough the generic strategy for Partex is not ‘Cost Leadership and

Differentiation’ rather it is differentiation (not pure differentiation) backed up by

absolute cost advantage. The result is Premium price charged for products similar to

the competitors and obtaining lower cost than pure differentiators and higher levels

of profits than firms pursuing only one of the generic strategies.

Recommended Business-level Strategy:

Outwardly, the Generic Strategy for Partex may seem to be a stuck in the middle as

no pure strategy is followed and as a result wrong resource allocation decision may occur

leading to a loss of control in the generic strategy. However, the cost advantage achieved

by vertical integration and the image of Partex brand helps the company to be in a

position where it can charge premium price for the product, which has differentiation

ability. Thus, the recommended strategy should be:

Types of Furniture Generic Strategies

Panel-based Cost Leadership and Differentiation as competitors

(OTOBI) follows Differentiation strategy as well.

Timber Differentiation (not pure differentiation) Strategy with

absolute cost advantage gained from production

development and vertical integration.

The choice of Investment Strategy

The appropriate strategy in the growth stage is to provide base to face the shakeout

period. For Partex having a strong competitive position in the market the investment

strategy should be to expand or growth.

Current Investment Strategy:

Partex is investing resources to develop new sales and marketing strategy. The new

show room (Partex Gallery) and the plan to employ architects in the sales force is an

example to this strategy implementation. Also the investment of TK 100 crore is a

strategy to build resources that the company is following now.

Recommended Investment Strategy:

Aside from following the current strategy Partex should also engage in R&D to

maintain their lead as a differentiator and introduce newer designs to capture more

market share.

The Recommended Business-Level Strategy


PARTEX GROUP

Partex should follow two different Business-Level strategies for Panel and Timber

furniture market. More narrow Segmentation should be focused with differentiation

Strategy (not pure differentiation) for Timber furniture and Cost Leadership in Panel

Furniture backed up by the cost advantage achieved from vertical integration in both

the fields. Finally, investment should be made to capture more market share by

innovation and further growth. This will increase the profit margin in even higher

extent.

Functional Level Strategies

1. MARKETING

Marketing & efficiency Pursuing quality, customer needs and design


PARTEX GROUP

research

Showroom situated at a poor location

TV media not yet utilized

Only one outlet as of now

Pricing strategy inconsistent with stated objectives

and actual implementation

Marketing & quality Very customer focused

Provides customer feedback on quality

Marketing & innovation Provides results of research to business

development function

Always pursuing new products

Marketing & customer

responsiveness

Customer focused (knows customer needs etc.)

Communicated customer feedback to appropriate

functions

CURRENT STRATEGY:

Always tries to pursue new product development focusing on quality, design and

customer needs, providing feedback to both customers and specialized functions, in

order to expand their market.

RECOMMENDATION:

Enhance aggressive marketing through consistent pricing perceptions within

customers, having more outlets, and pursuing other media to promote

Demand forecast

2. RESEARCH & DEVELOPMENT

R & D and efficiency Focusing only on new products which are not


PARTEX GROUP

necessarily easy to produce

R&D and quality Product design based on what is wanted by

customers – not based on manufacturing ease

R&D and innovation Develops new products but process innovations low

Cooperation with other functions done

R&D and customer

responsiveness

Involves customers in identifying their needs

CURRENT STRATEGY:

Depends mainly on customer feedback for new product development and

communicates this to other functional areas, such as production

RECOMMENDATION: include example

Develop products that are needed by consumers but focusing mainly on

manufacturing ease and process innovation.


PARTEX GROUP

3. PRODUCTION

Production &

efficiency

Flexible manufacturing already done for Panel-based furniture

No optimal capacity allocation done for timber based furniture

Presence of vertical integration (having own supplier and

distributor) enables efficiency

Production &

quality

Long production runs for panel based furniture – making it

difficult to judge source of defects

Production &

innovation

Ease of manufacturing considered – timber based batch

processing

Some innovation in process both for panel and timber furniture

Production &

customer

responsivenes

s

Customization done but not always with flexible manufacturing

Response time good for panel based furniture b/c lead time low

Response time bad for timber based furniture b/c lead time

high

CURRENT STRATEGY:

Concentrating on reaping most benefits out of panel based furniture due to low lead-

time, automation and sound vertical integration. At the same time, inefficiencies in

timber-based furniture are attempted to be countered with high design and

craftsmanship quality and doing batch processing to minimize costs.

RECOMMENDATION:

While concentrating on efficiency the company needs to create task forces to enable

flexible manufacturing for timber based furniture.

Corporate Strategy


PARTEX GROUP

Current Strategy

Partex has vertically integrated into the furniture industry. Partex had the upper

hand in producing the particle board which is the raw material to produce furniture

and they used to supply this particle board to other furniture-making companies to

produce furniture. But the corporate managers decided that they could vertically

integrate into the furniture industry since they would be producing their own raw

material. They also came up with an innovative idea of making use of the unused

part of the log which they use for making particle boards. Partex also has a

widespread distribution network which it can use for the furniture as well.

It may be added that Partex has vertically integrated in other businesses as well

apart from the furniture industry. For example, under Complex-II Partex had Danish

Condensed Milk (BD) Ltd., Danish Food Products, Danish Milk Mills Ltd. Then Partex

vertically integrated and came up with Danish Distribution Network Ltd.

Because of vertical integration, Partex enjoys some competitive advantage compared

to its competitors.

Partex has invested Tk.100 crore in the furniture industry and this huge

investment acts as an entry barrier to its potential new entrant.

Partex will also be able to realize Economies of scope since they are fully

integrated in the furniture industry i.e. from producing raw materials to

distributing them.

SBUs

They have two SBUs in the furniture industry: one is timber based furniture and the

other is panel based furniture

Timber Based: This SBU is considered as a Question Mark since the relative market

share is low, but there is tremendous potential for growth in this industry. This SBU

needs a lot of cash injection which Partex has already done and plans to do the same

in future.


PARTEX GROUP

Panel Based: This is considered to be a Cash Cow. They have a high market share

and they are generating positive cash flow for Partex.

Drawback of the Current Strategy

Partex is finding it very difficult to integrate all their businesses in the industry. In

addition, Partex has a very complex structure. Thus their bureaucratic cost is very

high.

Recommended Strategy

Partex should change its current organization structure and make it more simple so

that their bureaucratic cost can be lowered which will give them a competitive

advantage.


PARTEX GROUP

Strategy in Global Environment for Partex:

Choice of Entry Mode Exporting It is not planning to put

any manufacturing set

up in the host country.

Partex will manufacture

its products exclusively

in the home country

Strategic Choice International Strategy As Partex’s current

targeted foreign market

is UAE it has low

pressures for Cost

Reductions.

Pressures for Local

Responsiveness are low

as well (why???).

Current Situation:

At present Partex furniture is targeting UAE as their foreign market.

Cost of establishing manufacturing operations in foreign country is being

avoided.

Manufacturing only in home country will enable the company to realize

substantial economies of scale with added global sales volume (experience-

curve cost economies and location economies).

Moreover, Bangladesh being the home country Partex has the advantage of

cheap labor and cheap raw materials (in terms of scrap wood and jute stalk).

Recommendations:

Should calculate regarding the pros and cons that will be associated with

trade barriers of the foreign (host) country.

The company should also carefully verify the transportation costs associated with exporting, and then compare it with possible profit gains.


PARTEX GROUP

Buyer Power

The buyer is the next person downstream in the channel of distribution. Thus the

buyer for the subject firm in our case was previously the manufacturer (e.g. OTOBI)

while now it is the wholesaler and the final consumer.

The factors that increase a buyer's power are the mirror image of those that increase

a supplier's power. Thus buyers have enhanced power:

When they are concentrated and buy in volume. These conditions give buyers

power over small, fragmented suppliers. However, in Partex’s case their Major

buyer was OTOBI at a certain level. Now, as Partex is going vertically integrated

the buyers’ power is getting reduced as no individual buyer is the prime

consumer for the subject company’s product.

However furniture buyers can integrate backward if suppliers cannot offer

satisfactory prices. Examples: often consumers chose designs of furniture from

galleries and produce them through individual Wood craftsmen.


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

PARTEX GROUP

(Macro) General Environment

The general environment is composed of five sectors:

Socio-cultural: Society's traditions, values, attitudes, beliefs, tastes, and patterns of

behavior, and how they are changing effects the operation of any business. Partex is

no exception in this regard. A few variables in General environment is provided

below:

Technological Environment Macroeconomic Environment

Biotechnology Interest rates

Consumer electronics Exchange rates

Superconductivity Rotation rates

High-definition television technology Savings rates

Process innovations (e.g., robotics and minimills) Trade deficit/surplus

Industrial disasters Budget deficit/surplus

Political/Legal Environment Sociocultural Environment

Deregulation Women in the work force

Relaxed antitrust enforcement Health and fitness awareness

Environmental protection laws Erosion of educational standards

Similarity in consumer tastes and preferences Spread of addictive drugs

Powerful economic alliances Concern for the environment

Opening of eastern bloc countries Aging of the population

Third world debt problems Ethnic composition

Maturing of the baby boom generation

Regional changes in population growth and decline

Political-Legal Forces: The government of Bangladesh according to the policy it

follows allowed an open market scenario in the furniture industry where foreign

companies and their products compete side by side. There are no subsidies or cartel

on local or foreign products. As a result of this competitive market not many local

firms exist in the market. On the contrary, PARTEX being a large conglomerate could

thrive even in this market due to its strength in production.


PARTEX GROUP

There is also a protection law for wood logging here in Bangladesh. In addition to this,

PARTEX itself is an environment-concerned organization that uses less wood to

produce more substitute products. As a result of this, production increment for the

furniture industry for PARTEX is not to leap-frog in any one nights stand.

Technological Forces: In Bangladesh the use of technologically advanced wood

framing equipment is not present. This is primarily because of the nature of the

business: wood crafting is highly customized and depends on craftsmanship. Thus

over the years skilled craftsman with individualized catering towards a small group of

customers have shaped the consumer behavior as well as the nature of the business.

The result is technologically not advanced procedure of making wood furniture.

However, the production of Particleboards is possible to make in a mass volume. As a

result, technological advancement was possible in this sector. Today, PARTEX

produces laminated board furniture in a mass volume with high standardization. Also,

the technology used in terms of machinery and equipments the company is ahead of

its competition, according to the deputy General Managers information.


PARTEX GROUP

Problems Finding:

1. Production: Production capacity of Modanpur Factory is more than the

market demand.

2. Technology: Technology used for the production is not fully automatic,

some are semi-automatic.

3. Production Personnel: They have some lack of knowledge about the

use of machine.

4. Marketing Reporting: Marketing intelligence report are not systematic

and well organized.

5. Sales Analysis: The sales analysis of each product life-cycle is absent;

6. Marketing Research: Marketing research for each product has not been

done.

7. Dealer Promoting: Dealer promotion only at commission level has been

done;

8. Dealer: Number of dealer is not up to the mark and still so many

district are still untapped.

9. Brand Management: Complete brand management is absent for

individual brand;

10. Distribution: The distribution process is not Systematic. Flow of

distribution is not clear.

11. Outdoor Marketing: There is no plan for outdoor marketing, which is

very effective for competitive market.

12. Advertising and Promotion: Advertising and Promotion plan is not well

enough for find out untapped market.

13. Information Flow: Information flow between department to department

and people to people is very slow.

14. MIS: Management information system is not up to date.

15. Budget: The budget of this company is not enough.


PARTEX GROUP

Recommendation:

1. After Sales Service: After Sales Service should be provided at all

the Show-room. It will save time and effort of the people.

2. Design of some Furniture: Some product design of the company

are very traditional. There are so many product similar to our

design are now available to our competitor.

3. Drop out slow moving product:

4. More Advertising: To increase the sales advertising on Print

media, Electronic media should be increase.

5. Dealer increasing: Dealer should be available in all district. Then

I have to find out according to the market potentiality for more

than one dealer in the same market.

6. Marketing Plan for Slow Moving Product: Plan for slow moving

product such as; Hospital furniture.

7. More Tanning for the officer Level: At present more training is

needed about the salesmanship. Market research for find out

the target market, dealing product knowledge, product

development, marketing product etc. for the salesman and

sales personnel.

8. Marketing Research: Market research for each brand has to be

done for getting the clear picture for product positioning against

the competitor products and finding out furniture.

9. Budget: The budget will be required to upgrade as its targeted

future.

Conclusion:


PARTEX GROUP

It is impossible to have a clear-cut idea of a big company within a short time. But

according to my observation this company is suffering from a tremendous problem in

following areas, which are the main obstacle for the company optimum growth:

There is a clear gap between Production and Marketing.

Company sales and marketing people have a package of their action plan.

Company do not giving its effort in marketing research, market development,

product development, product positioning, un-trapped market, business plan,

marketing plan, product planning, and an effective advertising and

promotional planning.

Company did much promotional campaign but never try to figure out the

reason for success and failure.

Individual job responsibility should be very specific.

Company is in developing stage. Gradually it is trying to figure out its system fall and

week corner. In spite of many problems, it is the pioneer in furniture industry in our

country. Hope it will be a systemic and standard organization.


marketing strategy of partex furniture

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