DISTRIBUTION CHANNEL OF KING BRAND CEMENT 2

Chapter 01

1. Executive Summary

The topic of the report is “Distribution Channel of King Brand Cement.”

This report is broadly categorized in three parts. In part one is Introduction. In this part purpose of the study, statement of the problem, products components, price components, place components and objectives of the study are discussed. Part two is about background of Bashundhara Group, mission statement and the group’s efforts. In part three is discussed about Bashundhara Group (MCML). In this part product components, current distribution network in Dhaka city, dealers list at Dhaka zone of the Meghna Cement Mills Ltd., discussion regarding place components are discussed. And part four is about Conclusion and Bibliography.

1.1 Purpose of the Study:

The main purpose of the study is to fulfill the requirement of 3 credits course.. It will help students to have the practical idea about working in corporate environment. This report is a requirement of the Business Communication. Program. But at the same time it is a great opportunity for the students to share the practical experience in the market. A theory and short-term experience doesn’t fulfill the necessity of requiring a quality of jumping in the practical job market, where it is competitive and deserve more.

1.2 Statement of the Problem:

King Brand Cement used to be very popular in the Dhaka Market as local cement company. The management of Meghna Cement wants to know, distribution channel needs to change or not for the Dhaka market. Therefore as a researcher, do not have enough understanding to proceed with the research project. Thus need to explore or identify the problems in current distribution channel of Meghan Cement.

1.3 Product Components:

• From dept interview, it is explored that end user purchase their cement based on recommendation of the architect’s opinion, retailer’s pushing and some others factors including weight, price depend on use and loyalty towards the particular brand. It also indicates that King Brand Cement has a lack of brand image.
• Some other findings is that quality of King Brand Cement is better but  price is so much high. And for the high price it lost its market value.
• Here, it is explored that product is not available, price is high compared to competitors price, is fluctuating every day. There is no credit facility from the company, company can not deliver product on time and factory location is so much far from the Dhaka city.
• In context of packaging, it is explored that development of the packaging system is essential. For some reason end user think that retailers mix less quality cement with that bag and sometimes end user also think that cement weight is not accurate. It means that 50 kg cement is not there. Another problem is paper sack during rainy season cement looses its quality.

1.4 Objectives of the study:

The main objectives of the study are to determine distribution channel of MCML. Therefore, following issues are considered as broad objectives:

• To find out the current problems with the products components.
• To find out the current problems with the price components.
• To find out the current problems with the place components.
• To find out the current problems with the promotion components.

To address the board objectives some specific objectives have been developed. They are as follow-

• To know the effects of board name in selling products. Therefore, it will help to take decision for the management regarding brand image.
• To know current packaging situation, explore problems if any. It will help to know whether the current strategy should be changed or not.
• To know problem of the pricing policy of the product and try to find out whether it needs to be changed or not.
• To know the approach of the sales representative towards the retailers. It will help to increase the efficiency of the sales representative.
• To identify the problem of the existing sales promotion campaign, it will help to take necessary steps for the future promotions.
• To know the problems of the running distribution network.

Chapter 02

2. Background of the Bashundhara Group

The Bashundhara Group of Companies started off as a real-estate venture known as “Bashundhara” under the aegis of the Group’s first concern The East-West Property Development (Pvt.) Ltd. This project turned out to be very successful and had helped foster the growth of trust and confidence of the urban people in “Bashundhara”. Dhaka’s burgeoning population combined with a conspicuously slow growth of housing- led to the landmark success of Bashundhara.

Driven by the ramifications of this success, Bashundhara geared up to invest in new fields, including manufacturing and trading. More enterprises were established in the early 1990s, covering diverse activities involving the production of cement, paper and pulp, tissue paper, steel, LPG bottling and distribution and a trading company among others. All these had happened in a span of less than 10 years. During this period, additional schemes on land development and real estate were lunched and these focused more sharply on increasing responsiveness to client needs. At present, the group employees are over 3500 people. The group’s first publicity-traded company, Meghna Cement Mills Limited, is currently listed on the two stock Exchanges of Bangladesh.

The Group now has 14 major concerns located in different areas of the country. The most-recent addition to the Group is a multi-faceted shopping mall-cum-recreation centre called the Bashundhara City (BCDL). The BCDL is one further step in our longstanding effort to strengthen our links with the general public through the unique offering of commercial operations and recreation facilities under one roof. It houses theme parks, food courts, multi-screen cinemas, fitness centers, space for over 2800 shops, basement-level parking for over a thousand vehicles, skating and bowling rinks, a supermarket and office space spread over several floors.

The Group has come a long way in reaching these goals by listening to client needs, learning real-time lessons from past projects, innovating and partnering. Through major investment undertakings, Bashundhara has meaningfully contributed to the economy’s stability in financial and capital markets. Underlying all of the Group’s activities are the common threads of change, flexibility and fostering closer ties with the Government, the City Corporation and our clients. Most of its projects have been success stories – this fact alone is enough to justify a sense of confidence in the Group’s future.

2.1 Mission Statement:

Bashundhara Group (BG) is a leading private-sector industrial conglomerate in Bangladesh. It currently has 14 on-going concerns, ranging from real estate development and management to manufacturing and services. The BG strives to work in partnership with the Government for promoting sustainable development, environment preservation, and employment-generation and poverty reduction. The BG has a particular focus on urban housing, recreation centers, and commercial ventures. Thus, the motto of the Group is “For the People, for the Country”. At the crux of all industrial processes deployed at the Group’s enterprises stands the need to ensure environmental stability. As a result, conscious efforts are made to use re-cycled material as industrial input.

2.2 The Group’s Efforts seek to:

• Create affordable housing (developed land & homes) for people.
• Foster better living environments and pleasant surroundings.
• Ensure environmental balance and sustainability.
• Use re-cycled raw materials in industrial production.
• Treat industrial effluents.
• Establish recreational and shopping facilities for people.
• Develop a meaningful partnership with others for development.
• Provide better working conditions for its staff members.

The BG works in close partnership with the City Corporations, the Government of Bangladesh, other private sector companies, multilateral institutions, the environment department and myriad financial institutions.

The BG has its headquarters in Dhaka, Bangladesh. Its Chairman and a Board of Directors frame the Group’s policies. The Managing Director acts as the Chief Executive Officer.

2.3 Projects of Bashundhara Group:

2.3.1 East West Property Development Ltd.:

The EWPD has two core on-going projects at this time: the Bashundhara Baridhara Land Project and the Riverview Land Project. The Baridhara Project is a sprawling residential complex covering over 3500 acres and 25,000 plots. The plots come in the following sizes: 3, 4, 5, 7.5 and 10 kathas. At the present time, the Company is offering plots in Blocks – M, N, and P (shown on map) with a very competitive pricing schemes and easy repayment methods. Most of these plots are now ready for immediate home-construction.

After a successful take-off of the Baridhara land project, Bashundhara took the added initiative of developing an apartment project within the complex itself. This venture focuses particularly on fixed-income urban groups. Pricing and payment options are flexible and can be attuned to the financial circumstances of particular buyers. The Baridhara Apartment Project is now accepting bookings from the general public and expatriate Bangladeshis for allotment of apartments located in Blocks- A, E, G and I of the Baridhara land project. Floor measurements of these apartments range from 1100 to 2600 square-feet. It is expected that these apartments will be ready for hand-over to their owners within three years. In close proximity to these apartment blocks, construction has begun for the establishment of the following facilities: a modern hospital, an international school, two well-known universities, a super market, a sports zone, parks and a mosque. An impressive range of sizes and designs are being offered and prices range from Taka 1350 to Taka 1625 per square-feet.

(i) Layout Map of Riverview Land Project:

The Riverview Land Project is located by the side of the scenic River Buriganga. It is conveniently located in close proximity to the China-Bangladesh Joint Venture Bridge-1 (also known as the Buriganga Bridge-1). Thus, it is very well linked to the major roads that connect with the Dhaka city. The main business hub of Dhaka, the Motijheel Commercial Area, is no more than 3 kilometres away from the Project site, as is the popular junction the Babu Bazaar Bridge. This is a mammoth project where it is expected that vital services will be available including schools, colleges, a private university, shopping centres, a mosque and a hospital. The Project is constituted with six blocks – A, B, C, D, E, and F. The sizes of individual plots are: 3, 3.5, 4, 5, 7.5 and 10 kathas (One Katha = 66.91 square metres). This project comes as a fulfillment of a long-standing desire of the residents of “old” Dhaka City to establish a well-structured and modern residential complex, in close proximity to the river and some heritage sites of “old” Dhaka. Experts have carried out the Project’s layout and regional in-site planning. The site is now poised for rapid growth and planned habitation – at very affordable prices.

The contact details of the Corporate Office are shown below-

Bashundhara Group,

Corporate Office,

Bashundhara City

13/ka/1 Panthapath

Dhaka-1205

Bangladesh

Phone: (880-2)8158025- 34

Fax: 880-2-9128319

Web Site: www.bashundharagroup.com

E-mail: bgc@bdcom.com

Chapter 03

3. Over View of The Bashundhara Group (MCML)

3.1 Meghna Cement Mills Ltd.:

The Meghna Cement Mills Limited (MCML) was the first undertaking of Bashundhara Group in the manufacturing sector. This enterprise produces world-class cement and as a testimony to this, stands the fact that the concern has been awarded the ISO-9001 certification for sustainable quality control effort. The Company markets its cement under the registered trademark of “King brand”.

The factory of this Company is located in the south-western part of Bangladesh at Mongla Port Industrial Area, in Mongla, Bagerhat under the Khulna Division. The Mongla Port is the second-largest seaport of Bangladesh. The Jetty of this Company is situated on the eastern side of the river ‘Possur’. This river is also connected with many other rivers of the country. Given this favorable geographical scenario, it is easy to implement a year-round delivery and raw material transportation to and from the MCML factory site to remote corners of Bangladesh. The factory stands close to the Mongla-Khulna Highway as well.

The Meghana Cement Mills Ltd. is the largest domestic cement-producing unit in Bangladesh. Its excellent quality-control standards have helped the Company acquire the ISO-9001 certification. The product of the Mill is being marketed under the trademark of ‘King Brand Cement’. This brand now has a steady market share, thanks to its consistently high quality. The Mill was set up in 1995 on 10.5 acres of land and went into commercial production in January 1996.

It has two computerized production units and two automated packaging plants. The mill has its own jetty with facilities for speedy unloading of raw materials from ships. In addition, the unique barge loaders are capable of quick loading (capacity of 5,600 bags per hour) of the finished and bagged cement for delivery to the buyers. There are six silos within the mill premises to store clinker. These units are equipped with control elements to regulate humidity and temperature, which are vital for the shelf life of stored cement and cement-making ingredients. The Mill has two stand-by generators to provide electric power during phases of power supply failure of the national power grid. The Plant also has a well-equipped quality assurance and testing laboratory.

Bashundhara’s “King Brand Cement” is well-known throughout Bangladesh. The weight of each marketed bag is always perfect due to the adoption of an automated packaging system. There is a laboratory, equipped with modern equipment within the Mill premises to conduct tests at each hour for every shift covering every stage of the production process. The most recent quality standards, namely BS and ASTM, have also been incorporated in this brand of cement. The factory’s environmental standards are high, thanks to regular inspections by the Company’s senior scientific staff members.

The Company has been awarded the coveted ISO-9001 Certification in the year 2000 by the National Quality Assurance (NQA), registered by the National Accreditation of Certificate Boards, UK.

3.2 Sales and Marketing:

Bashundhara City, Level-16

13/ka/1 Panthapath, Dhaka-1205, Bangladesh

Phone : 880-2-8158025-34

Fax : 880-2-9128319

E-mail : bgc@bdcom.com

3.3 Bashundhara Cement Sack Plant:

In the 1970s, Bangladeshi cement producers had been using simple multi-wall paper sacks for packaging cement. Scarcity of basic raw materials for manufacturing cement such as lime stone, gypsum and inadequate industrial infrastructure had forced the country to import almost 90% of its requirement of cement till the late nineties, most of which used to come in paper sacks. With the commissioning of Meghna Cement Mills Ltd., a concern of the Bashundhara Group, the largest domestic cement plant in the country in January 1996, the nation’s cement industry leaped into a new era of self-sufficiency.

An accelerated economy, spurred by a booming construction and housing industry, had made Bangladesh one of the most popular destinations for cement producers. With the arrival of several local companies and a few international cement giants in the field of cement production, there occurred a spectacular growth of output over the last 5 years. Coupled with it, the demand for cement packaging bags went up by mammoth proportions. At the peak of this demand cycle, Bashundhara’s paper sack manufacturing unit went into production in June 2000. At the beginning, this plant received orders from about 50 different cement producers, local and international.

In June 2000, the first ever-pasted paper sack manufacturing unit was established within the premises of Hazrat Shahjalal Newsprint Industries Ltd., an enterprise of Bashundhara Group, situated at Meghnaghat  about 28 kms from the capital city of Dhaka. Windmill & Holsters of Germany – a world leader in the field, supplied the paper sack converting line. The high-speed sack line for manufacturing multi-wall cement sacks makes use of a strong plastic-type additional wall for added strength and prevention of moisture seepage. The manufacturing capacity of this unit is over 60 million multi-wall paper sacks per annum.

Bashundhara Group takes pride in being instrumental in making Bangladesh self sufficient in the production of paper sacks so that the import of paper sacks comes to a halt. The buzzword was “Quality & Service” on which the entire manufacturing & marketing policy of the Bashundhara Group is based.

The paper grade/quality of raw material is vital for bag performance. Experimental work has confirmed the fact that tensile energy absorption (TEA) of the paper can be used to predict bag performance. Bags, when dropped, are subjected to impact loads far to excess of their ultimate tensile strength. Only by dissipating this energy over a period of time can these tensile forces be contained. Therefore, the distance through which the tensile force acts is stretch and the total time must also be taken into account. The Swedish Kraft paper used by Bashundhara for making sacks gives a very high energy absorbing capacity. The adhesive used for pasting the sacks is a specially-developed modified potato starch imported from Holland to make room for firm bonding, even at high humidity levels. It is due to the factors noted above that the Bashundhara sacks performed better than most bags imported earlier in monsoon-prone hot and humid environment. Due to the excellent product quality, Bashundhara’s cement sacks are still in high demand and many cement manufacturers of the country have orders lined up with this plant. The plant is capable of printing any kind of logo/labels on the bags and there is a choice of several color combinations.

3.4 Bashundhara Trading Company Ltd:

The BTCL serves as the general trading arm of the Group. It supports the import, export, sales and marketing endeavors of the Group’s many enterprises.

It helps develop marketing channels and methods. This unit also operates as a private trading company engaged in the acquisition of basic raw materials and finished products for private buyers- outside the domain of the Bashundhara Group. It was launched in the year 1993, initially to support backward linkages and marketing strategies for the Group.

3.5 Bashundhara Industrial Complex Ltd:

The Bashundhara Industrial Complex Limited was set up in the year 2000 as the second plant of Bashundhara’s cement producing concern, the Meghna Cement Mills Limited. It began production in 2002 and is now a profitable and viable enterprise of the Bashundhara family. It has immediate plans also to deal in trading, clearing & forwarding and shipping-related business. The BICL is now engaged in carrying out studies on a proposed project that will enable the Company to set up its own dockyards and shipyards in Chittagong, Bangladesh. At a later stage, the BICL has plans to get more intricately involved in inland water transport for movement of passengers and cargo within the country.

3.6 Bashundhara Communication & Networks Ltd:

Bashundhara Communication & Networks Limited (BCNL) is the telecom services provider arm of the Bashundhara Group. BCNL’s vision is “To Provide Quality Telecom Services at affordable cost to the people of Bangladesh”. BCNL proposes to build high-bandwidth networks to provide the various telecom services that are now in shortfall. BCNL seeks to provide a wide array of telecom services across Bangladesh that include Fixed Wireless Access (basic services), Mobile and Data over optical backbone in the medium term and to build its own International Gateway over the long term. BCNL would like to position itself as a convergent telecom services provider, with initial entry into Fixed Wireless Services and expanding into Mobile over the medium haul.

3.7 Marketing Planning for 2005 of King Brand Cement:

A target has been prepared of 2, 40, 00,000 Bags (1, 00,000 MT Per month) for 2005. The value of this target is Tk. 528, 00, 00,000. An expenditure budget has been calculated of Tk. 5, 28, 00,000, which is 1.00% of total sale. Growth has been taken over 115.50 % last year. Details planning and data are appended bellow.

Sale in 2004:

Quantity	Daily	Monthly	Yearly
In MT	1,546	46,405	5,56,863
In Bags	30,936	9,28,105	11137260
In Taka	68,06,103	20,41,83,100	245,01,97,200

Target for 2005:

Quantity	Daily	Monthly	Yearly
In MT	3,333	1,00,000	12,00,000
In Bags	66,660	20,00,000	2,40,00,000
In Taka	1,46,65,200	44,00,00,000	528,00,00,000

Growth taken over 2004 (In Taka):

2005	528,00,00,000
2004	245,01,97,200
Deference	282,98,02,800
Ratio	115.50 %

Expenditure Budget for 2005:

Sp. Commission(65% of Total Target = 1,56,00,000 Bags. X Tk. 2)	3,12,00,000
Sales Promotion/Scheme(Ad, Gift, Conf.)	1,00,00,000
Sign Board(100 x Tk. 10,000)	10,00,000
Ad. On Double Decker	50,00,000
Others	56,00,000
Total Expenditure	5,28,00,000
Exp. Ratio	1.00%Tk. 2.20 Per Bag

3.8 Objectives:

• To achieve this target will make us profit.
• We will regain our market share gradually.
• Growths will be 132.59 % over last year.
• Program to be taken in two spells. In 1^st spell 60% & in 2^nd spell 40%.
• We have to give benefits to our Dealers silently. (Gifts through Scheme & Sp. Commission)
• It will not create under rating problem in the market.
• Target has been taken total 1, 44, 00,000 Bags in 6 months (60% of total target).
• Value of this target is Tk.316, 80, 00,000.
• The budget of this scheme is Tk.52, 97,200
• Ratio of budget is 0.16 % of sales.
• Each Dealer will get 01 scratch card for each 5000 Bags lifting in each month.
• Every Dealer will get maximum gifts & Sp. Commission.
• The prize will distribute through a program at 5 stars Hotel.
• It will create our image.

3.9 Strategy:

(i) Quality:

• Needed quality product.

(ii) Price fixation:

• To be given us the price calculation reports on each LC.
• To be given us prior information, before declaration of price enhancement or decrease.
• Needed to sale in Dhaka at break-even price.
• There may be a price fixation committee. GM and I will be the member of the committee.
• We want to make profit at western zone.

(iii) Outstanding:

• No further credit facility to anyone up to June’05. We will reduce at 50% of previous outstanding up to June’05.
• It will require to sale on credit from July’05.
• We need delivery, remittance and outstanding report on daily basis from accounts department.

(iv) Problems & Suggestions:

• Needed five Cargo Vessels as chartered.
• Needed one more Bashundhara Cargo for Western Zone.
• We will give 115.50% growth over 2004. (Except on institutional sales)
• If anybody contributes in sales from any institutions that may not be included in our sales, but to be made through sales & marketing department.
• No interference of other department/ persons.
• After each quarter, management will take feedback from us.
• Facility of each member of S&M department will be increased like salary, D.A., mobile phone ceiling, incentives.
•  Need four more field-forces.
• Need one asst. officer & one peon.
• Need 100% expenditure of annual sales to achieve the target for 2005.
• Need non-ceiling mobile phone & direct T&T phone.
• Need full time car with driver & maintenance for extensive tour to achieve the target of Tk. 528, 00, 00,000 for 2005.
• Needed to give incentives to Field Forces.

(v) Promotional Expenses / Schemes:

Target has been taken total 1, 44, 00,000 bags in 6 months (60% of total target). Value of this target is Tk. 316, 80, 00,000, the budget of this scheme is Tk.52, 97,200 and ratio is 0.16 %. Each Dealer will get 01 scratch card for each 5000 bags in a month. The prize will be distributed through a program.

Sl.No	Name of Gifts	Price	Quantity.	Value	Remarks
01	Car (Station Wagon)	5,00,000	2	10,00,000
02	Motor Cycle	70,000	5	3,50,000
03	Fridge	25,000	6	1,50,000
04	Washing Machine	10,000	10	1,00,000
05	Color TV	10,000	10	1,00,000
06	Micro Woven	10,000	10	1,00,000
07	DVD Player	4,000	25	1,00,000
08	Box Fan	1,500	100	1,50,000
09	Charger Light	1,000	100	1,00,000
10	Wrist Watch	1,000	500	5,00,000
11	Iron	500	965	4,82,500
12	Prize Bond	100	1147	1,14,700
	Total Scratch Card		2880	32,47,200	2880 x 5000 Bags=1,44,00,000 Bags
	Expenses for Program(Dinner)	1000	250 Per	2,50,000
	Other Expenses for program (Artist ,Hotel Rent for Dealers)			3,00,000
	Paper Ad	75,000	24 insert	18,00,000
	Total Expenses in Jan – Jun’05			52,97,200
	Total Expenses in July – Dec’05			47,02,800	T-Shirt,Cap,Def. Gifts,Mason Conf. to be done.

3.10 Marketing Mix:

Marketing Mix is the set of controllable, technical marketing tools that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything that the firm can do to influence the demand for its product. Marketing mix is the set of marketing tools that the firm uses to persuade its marketing objectives in the target market.

McCarthy classified these tools into four groups that he called the four P’s of marketing. The main possibilities can be collected into four groups of variables known the four P’s. These are given bellow:

Marketing Mix:

Direct mail, Telemarketing and Internet Public Relations Sales Fours Advertising Sales Promotion Promotion mix Offering mix ProductService Price Distribution Channels Company Marketing Mix Strategy Distribution Channels

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Marketing Mix, a basic tool for marketing managers, is defined by Microsoft Encarta World Dictionary as, “Marketing mix is a mixture of marketing techniques, the particular mixture of marketing techniques, for example pricing, packaging and advertising, used to promote the sale of a product” (2000). Marketing mix is also known as the Four P’s. The Four P’s stand for Product, Price, Place and Promotion. This paper will look at the Marketing Mix by explaining what the Four P’s are and show how a business would use the mix to market a product or service. The Marketing Mix is used to market a product or service to establish what the Product, Price, Place and Promotion is. Marketing managers bring the elements of the Four P’s together, combining them to achieve a greater result from their combination and each of the individual effects of the Four P’s (Anderson, Vincze 2000).

The Marketing Mix model (also known as the 4 P’s) can be used by marketers as a tool to assist in implementing the marketing strategy. Marketing managers use this method to attempt to generate the optimal response in the target market by blending 4 (or 5, or 7) variables in an optimal way. It is important to understand that the Marketing Mix principles are controllable variables. The Marketing Mix can be adjusted on a frequent basis to meet the changing needs of the target group and the other dynamics of the marketing environment.

The Four P’s consist of the following:

(i) Product:

Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need is called Product. In includes physical objects, services, persons, places, organizations and ideas. “Historically, the thinking was: a good product will sell itself”. However there are no bad products anymore in today’s highly competitive markets. Plus there are many laws giving customers the right to send back products that he perceives as bad. Therefore the question on product has become: “Does the organization create what its intended customers want”? Define the characteristics of your product or service that meets the needs of your customers such as Functionality, Quality, Appearance, Packaging, Brand, Service, Support, Warranty.

(ii) Price:

The amount of money charged for a product or service or the sum of the values that consumers exchange for the benefits of having or using the product or service is known as Price. How much are the intended customers willing to pay? Here we decide on a pricing strategy – Do not let it just happen! Even if you decide not to ask (enough) money for a product or service, you must realize that this is a conscious decision and forms part of the pricing strategy. Although competing on price is as old as mankind, the consumer is often still sensitive for price discounts and special offers. Price has also an irrational side: something that is expensive must be good. Permanently competing on price is for many companies not a very sensible approach.

(iii) Place:

All the company activities that make the product or service available to target customers is known as Place. Available at the right place, at the right time, in the right quantities. Some of the recent major changes in business have come about by changing Place. Think of the Internet and Mobile telephones, Locations, Logistics, Channel members, Channel Motivation, Market Coverage, Service Levels.

(iv) Promotion:

Activities that communicate the product or service and its merits to target customers and persuade them to buy is known as Promotion. How are the chosen target groups informed or educated about the organization and its products? This includes all the weapons in the marketing armory – advertising, selling, sales promotions, public relations, etc. While the other three P’s have lost much of their meanings in today’s markets, Promotion has become the most important P to focus on. Advertising,Public Relations, Message, Direct Sales, Sales, Media, Budget etc. are part of the Promotion programme.

The function of the Marketing Mix is to help develop a package (mix) that will not only satisfy the needs of the customers within the target markets but simultaneously to maximize the performance of the organization. There have been many attempts to increase the number of P’s from 4 to 5 P’s in the Marketing Mix model. The most frequently mentioned one being People or Personnel.

Many people have already heard about the “4 P’s of Marketing”. Generally speaking, the so-called “Marketing Mix” is a framework which acts as a guideline for marketers to implement a marketing concept. It consists of a set of major decision areas that a company needs to manage in order to at least satisfy consumer needs. According to Kotler (1999) “The Mix is a set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market”. Hence, in an effective marketing programme all of those elements are “mixed” to successfully achieve the company’s marketing objectives.

However, the 4 P’s approach has often been criticised in the past. Some critics for example argue that “It oversimplifies the reality of marketing management” (quoted in Jobber 1998).

Furthermore, in the context of relationship marketing (to consumers) or key-account management (in industrial marketing), it could be argued to add “Partnerships” as an additional “P” to the marketing mix as well. Main reason for this addition would be the growing focus in marketing towards long-term orientation that needs to be considered in most marketing concepts.

As one can observe from various marketing related discussion boards on the net (or from the marketing literature), there is no clear “yes” or “no” regarding the usefulness of any possible extension to the traditional 4 P’s approach in marketing.

The biggest advantage of this discussion however is probably that those who discuss it deepen their own knowledge – not only about the marketing mix in particular but also about marketing in general.

Note that four P’s represent the seller’s view of the marketing tools available for influencing buyers. From a buyer’s point of view, each marketing tools is designed to deliver a customer benefit. Robert F. Lauterborn suggested that the seller’s four P’s correspond to the customer’s four C’s.

 

 

 

 

3.11 The Reasons of Buying:

Sr.No.	Particular	% of Cases
1	Brand Loyalty	10%
2	Reasonable Price	5%
3	Customer Demand	25%
4	High Quality	60%

 

 

 

3.13.12 Price Components:

Sr. No.	Name of the Brand	Commission	Rate with Carrying cost in the Dhaka city
1	King Brand	No	274 Tk.
2	Holcim Black	5 Tk.	285 Tk.
3	Holcim Red	5 Tk.	301 Tk.
4	Holcim Black	Developer	266 Tk.
5	Holcim Red	Developer	288 Tk.
6	Scan	5 Tk.	286 Tk.
7	Cemex super Shakti	5 Tk.	254 Tk.
8	Anwar cement	6 Tk.	254. Tk.
9	Saven Rings	2 Tk .	256 Tk.
10	Tigeer	5 Tk.	258 Tk.
11	Crown	4 Tk.	265 Tk.
12	Shah	3 Tk.	258 Tk.
13	Mir	2 Tk	257 Tk.
14	Fresh	2 Tk.	255 Tk
15	Akij	–	267
16	Primer	6 Tk.	255

3.13 Place Components:

Sr. No.	Name of the factory	P.Capacity Million M.T.	Locatiom
1	Akij Cement	.333	Nabinagar, N. Gonj
2	Aman Cement	.210	Ullaphara, Sirahgonj
3	Anwar Cement	.500	Gazaria. Munshigonj
4	Bangla Cement	.030	Mahmudnagar, N.Gonj
5	Bangal Tiger Cement	.210	Palash, Nr shindig Dhaka
6	Cemex(BD) Ltd.	.450	Madangonj, Dhaka
7	Hedielbarg(Scan= Rubi)	1.85	katchpur
8	Metropalitan Cement	.80	Mukterpur, Dhaka
9	M.I Cement	.420	Mukterpur, Dhaka
10	Mir Cement	.100	Murapara Rupgonj
11	Modern Cement	.210	Meghna Bridge, Dhaka
12	M.T.C. Cement	.450	Meghnaghat, Dhaka
13	Padma Cement	.180	Sahjadpur, Sirajgonj
14	Premeier Cement	.600	Mukthpur, Dhaka
15	Rowsaan Cement	.100	B.C.C Ind. Sirajgong
16	Salam Cement	.050	B.C.C Ind. Sirajgong
17	S.C.O Cement	.120	Gajaria, Munshigonj
18	Seven Circles Cement	.390	Kaligonj, G Pur Dhaka
19	Shah Cement	1.200	Mukthpur, Dhaka
20	Sirajgong Cemenrt	.100	Bhelkuchi, Sirajgong
21	Unique Cement	.300	Meghnaghat, Dhaka

 

 

 

 

 

 

3.14 The Reasons of Not Buying:

Sr. No.	Particular	% of Cases
1	Lack of Advertisements	10%
2	Lack of Distribution	5%
3	Doubt About Quality	20%
4	High Price	65%

Sr. No.	Particular	% of Cases
1	Strongly Agree	10%
2	Agree	60%
3	Disagree	20%
4	Strongly disagree	65%

Sr. No.	Particular	% of Cases
1	Excellent	25%
2	Satisfactory	45%
3	Average	25%
4	Below Average	5%

Sr. No.	Particular	% of Cases
1	Strongly agree	25%
2	Agree	60%
3	Disagree	10%
4	Strongly disagree	5%

Sr. No.	Particular	% of Cases
1	Very High	60%
2	High	25%
3	Reasonable	10%
4	Very Cheap	5%

Sr. No.	Particular	% of Cases
1	Strongly Agree	20%
2	Agree	55%
3	Disagree	20%
4	Strongly disagree	5%

Sr. No.	Particular	% of Cases
1	Agree	25%
2	Disagree	65%
3	Strongly disagree	10%

Sr. No.	Particular	% of Cases
1	Strongly Agree	20%
2	Agree	55%
3	Disagree	20%
4	Strongly disagree	5%

1	Strongly Agree	25%
2	Agree	55%
3	Disagree	10%
4	Strongly disagree	10%

3.15 Discussion regarding Product Components:

From dept interview, it is explored that end user purchase their cement based on recommendation of the Architect’s opinion, retailer’s pushing and some other factors including weight, price, depend on use and loyalty towards the particular brand. It also indicates that Meghna Cement has a lack of brand image.

Some other findings are that quality of King Brand Cement is better but the price is so much high and for the high price it lost its market value.

Here, it is explored that product is not available, price is high compared to that of competitors is fluctuating every day. There is no credit facility from the company. The company can not deliver product on time and factory location is so much far from the Dhaka city.

In context of packaging, it is explored that the development of the packaging system is essential. For some reasons end user think that retailers mix less quality cement with the bag and sometimes end user also think that cement weight is not accurate. It means that 50 kegs cement is not there. Another problem is paper sack- during rainy season cement looses its quality.

3.16 Current Distribution Network in Dhaka city:

After producing the cement from the factory dealers purchase the product from the company to sale to the retailers and their customers. And dealer can always sell the product to the retailer and developer by the direction of companie’s sales officer. After purchasing the product, retailer sells to the developer and end-users. Dealer also sells the product individually to any kinds of customer. On the other hand company’s sales officer can direct sell to the dealer, retailer, developer and the end-user. Companie’s sales officer also can sell the product directly from the factory. The Current Distribution Network in Dhaka city of King Brand Cement is done by above maintaining procedure.

3.17 Dealers list at Dhaka Zone of the Meghna Cement Mills Ltd.:

S.N.	Name of the Dealer	Area	Contact No
1.	Dhaka Builders	Mirpur	8010054
2.	United Brothers	Pagla	7415276	7415191
3.	Dhaka Builders	Pagla	7604560	7415035
4.	Sheema trading	Pagla	7604263	7415100
5.	Mintu Enterprise	Pagla	7415112	7415722
6.	Madina Trading	Pagla	7415116	7604425-26
7.	Rita Traders	Pagla	7604771
8.	Mollah & Brothers	Pagla	7415166	7604273-74
9.	Masud Trading	Pagla	7415282	9337311

3.18 Discussion Regarding Place Components:

After analyzing the secondary data, it revealed that 21 cement factories are near the Dhaka city and it is also mentionable that the market leader of Dhaka Shah Cement locates near Dhaka city.

In dept interview, retailers have said that they are not getting cement on time in the cement sector. On time delivery is important, for example, a builder wants to mould a roof on Friday,therefore, he informes to the retailer on Wednesday or Thursday for a particular brand. Then retailer contacts with dealer or company to get the product. If company or dealer fails to supply the product just in time, then retailer has to supply the product which is available on that time.

After analyzing the current distribution network it is found that, at first dealer gets the product from factory and sells to the retailer, developers and end user.

Another findings is that company’s sales representatives  collect order from the developers and retailers. They place those order to the dealers then the dealer acquires some amount of profit, but if it sells on credit that time risk is totally on company. Therefore, it is clear that, current distribution channel has created problem.

Chapter 04

4.Conclusion

King Brand Cement of Bashundhara Group was a pleasant experience while doing a research on identify