A Study on Danish Biscuits ltd: A Partex Group Product
1.1 Introduction of the Organization
“Danish Biscuits Ltd” is the member concern of “Partex Group” is one of the leading biscuit companies of this country. It produced various types and flavors of biscuits. Although the market is very competitive, but ‘Danish’ create its own market position consumer preference in the market, by providing best quality in an attractive low price. From the very beginning ‘Danish’ tried to maintain its high quality and much more concuss about the consumer health and taste.
2.1 Background of the Organization
Partex Group is among the large Bangladesh private sector manufacturing and service based enterprises, owning and operating over twenty units giving value for money to all customers.
The group started modestly in 1959 in tobacco trading and with prudent entrepreneurship of our Founder Chairman Mr. M.A. Hashem today we have a stake in tobacco, food, water, soft drinks, steel container, edible oil, wooden board, furniture, cotton yarn and the IT sector. After Bangladesh was established our Chairman set up M/S Hashem Corporation (Pvt) Ltd. in Chittagong city meeting the large demand of food and materials needed for sustaining the needs of a new nation through imports. From importing to import substitution was the next logical step and the stepping stone into the manufacturing sector, which has matured to the multi million dollar diverse investment of the Partex Group today. A dedicated work force and committed board members led by our Chairman and backed by a market oriented corporate strategy has been the cornerstone of our success. Today the group has over twenty family owned private limited companies with a sizable turnover. Ours is a dynamic organization always exploring new ideas and avenues to expand and grow further.
2.2 Structure and Culture of the Organization
Danish Biscuits Ltd appears in below figure:
|Mr. M. A. Hashem||Chairman|
|Mr. Aziz Al-Kaiser||Vice Chairman|
|Mrs. Sultana Hashem||Director|
|Mr. Aziz Al-Mahmood||Director|
|Mr. Aziz Al-Masud||Director|
|Mr. Showkat Aziz Russell||Director|
|Mr. Rubel Aziz||Director|
At present Danish Biscuits Ltd operates with full time employees in only essentials positions. It now augments its full-time staff with key advisor, consultants, and sub-contractors. As the firm grows, people will special expertise will be added to the staff.
Director Director Director
2.3 Mission statement
The Sky is not the limit for us, but our 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.
To sincere travelers, the way is never too long. We believe in “progress in diversity and service through entrepreneur”. We are, merchants and missionaries, doers and dreamers, entrepreneurs and professionals. We are futuristic with emphasis on creating thinking and dynamic action.
2.4 Vision of the company:
Enterprise is our spirit. We manufacture superior import-substitute consumer and industrial products. Our cutting edge precision leads to greater public utility and hygiene, with a great care for the environment and human inhabitation. It is the very ingredient that gives our organization the integrity upon which our reputation is built and we zealously guard it everyday.
Many a thousand minds of our group contributed their gathered knowledge to keep the wheels rolling that in turn leads us to our goal. This cumulative strength of knowledge is required, today, to find new solutions for the manifold problems of fast- changing economic cultural and ecological milieu.
Finding and Analysis
3.0 Internship position and duties:
In my 3 month internship I work in the field. My duties were in the field. In my 3 month internship I work under the four dealers. I went to the many outlets in the city. Every day I went to the dealer points and worked full day with them.
3.1 Learning point
There are many of biscuit company have in this Dhaka city. Some of are big company there reputation are very high. These types of company produce many types biscuit, They are provide better service, good quality, low price. They are export there biscuit foreign country. Like alamin, Olympic, haque. The haque biscuit export 38 countries all over the world. Some of companies are not very big. Write down the company name.
11) One food
3.1.2 Brand name
Danish Biscuits Ltd. has different types of biscuits. From Danish Biscuits Ltd we introduce primarily the types of biscuits in the market are:
In the business market any company who faces the competitor market also face the competitive position. In this situation one company try to develops their product in terms of another company. People or consumer must be using those products which are very quality full or familiar. So we must be follow our competitor and try to create the best one. So, to compete with they and we have to ensure the quality of our product. The competitor companies and their brands are follows:-
1) Olympic– Energy, Tip, Milk Marie, Queen Marie.
2) Nabisco– Glucose, Milk Cream, Crunchi, Elachi.
3) Novelty– Chocolate & Milk Marie, Bit N Joy, Tea time.
4) Bengal– Orange Cake, Big Bite.
5) Bangas– Pineapple.
6) Pran– Orange, Pineapple.
7) Multi- Marie Gold, Nimki.
8) Haque– Digestive, Mr. Cookie, Ding Dong.
9) Al-amin– Orbit, Cosmos, Deena, Pineapple, Racie.
There are many biscuits company exists in this country. They produce various types and flavors of biscuits. The price of these different types of biscuits is differing to one company to another company with a very competitive way. ‘Danish Pineapple biscuits’ sale 114tk per carton with a free pack. If the retailer don’t aspect the free one then 1 carton sale at tk102. The prices of the biscuits are always changing. For example:
1) The X Company provides a biscuits 30tk price rate to the retailer.
2) Another new company came into the market and the provide same type of biscuits in tk29 to the retailer price.
3) Now the ‘X’ company reduced their price. They sell their biscuits to the retailer at tk28 per pack.
4) The different type of biscuits price are given bellow
Company Name Brand Name Retailer Price Consumer Price
Al-amin Milk crackers………..7.50/1………………………..10
Novelty Bite N joy……………..150/5………………………..30
Haque Mr. Cookie……………..18/1………………………20
Bangas Chocolate orange………..12/1……………………….15
The Distribution system is the heard of the company. The distribution system are weak the company are not get success and they are not take any position on the market. Day by day they are out of the market. The distribution system are very important each and every company. Every company distribution system are same but some of different.
Olympic distribution system:
Olympic are the bigger biscuit company in this country. The Olympic biscuit company provides better or good distribution system. Each and every dealer are divided within there area. The company first sells the biscuit to their dealer. The dealer sells the biscuit to the retailer. In this process the dealer uses many rickshaw van or pickup van to sell the biscuit on the market. The dealer need active, energetic, motivate sells man. The sells man work full day on the field. The sells man play important role to increase the sells volume. But the company provide the sells officer, sells supervisor, regional manager. The company gives salary to this employ. The sells officer sells supervisor, regional manager they are all work on the field.4 to 5 sells officer work under a sells supervisor or 2 to 3 supervisor work under a regional manager.
Another company distribution system is same. Every bigger company uses the same distribution system as well as Olympic. But many of area I see them Alamin provide only one man, this person also van driver or sells man. Because they are order cut frist and they give the product on the shop.
Danish Biscuits Distribution Network
Danish Biscuits Ltd. is distributed in its present markets through the local distributors, for the each of the products. Distributing the products to the mass consumer we use the electronic media (Internet, TV, and Radio) and as well as use posturing method for advertising. The company provides two or three sales officer to the every dealer to help them increase their sales. These sales officers are works under the regional manager. In the whole Dhaka city the company provides four regional managers. Each and every dealer divided within their area. For example Tongi dealer ‘Nowakhali Bannizo Bitan’ is divided in 28 outlets. Under the each and every outlet the sales man cover 30 to 50 shop everyday.
We show our distribution channel in chart below:
Whole Seller Agent
Business to Business (B2B)
Whole Seller Agent
Business to Consumer (B2C)
3.1.5Market position and ranking
For convincing this target marketers Danish has some key points of difference, which may Danish unique relative to competitors. These are:
v Price competitive
v Quality assurance
v Double offer
v Customize quantity
v Cost effective
v Various flavors
After a general survey we prepared a ranking for the existing biscuits company in this city, which is given bellow:
Position No- 1) Al-amin
Source: Field Survey
As can be seen in the figure: 1, Alamin number one position in the Dhaka city. All of the area and all kind shops in Dhaka city I find out the alamin biscuit. The Olympic biscuit is in the number 2 position in the city. There Energy or Tip biscuit are high selling biscuit. Olympic Energy or Tip biscuit I find out all kinds of shop. Number 3rd poison is Danish. The Danish pineapple or F orange takes a good position on the market. Danish G are high selling biscuit. You are thing why haque are not any position. Because few of area I found the haque biscuit. They provide high quality, high price. In this reasons haque biscuit sells in modern area.
The promotion discussion consists of a description and justification of the planned promotion mix. It is useful to explain the theme of the promotion and to include some examples of potential ads as well as the nature of the sales force if one is to be used. For mass-marketed consumer goods, promotion cost can be larger and need to be considered explicitly in the marketing plan.
v In-store Demonstrations
In store demonstration, will be conducted to give consumers a chance to try Danish Biscuits Ltd products and learn about their unique taste. Demos will be conducted regularly in all markets to increase awareness and trial purchases. On the other hand the other companies like Alamin Cosmos provide 1 free packet to the retailer with the purchasing of 1 carton biscuits, if a retailer buy 5 carton biscuits then the companies provide 5 taka less commission. Buy one carton alamin pineapple the company one pack pineapple free. The Olympic biscuit company gives the promotion. Olympic company gives the shop board with Olympic biscuit brand name or picture. Danish give some types of promotion. Buy one carton pineapple the company give one pack free. Another biscuit company is not any types of promotion.
Each and every company needs advertisement. If they are not show the advertisement the consumer not know there brands. If they are provide any types of advertisement. Television advertisement is most important. Also u is providing bill board, shop board, magazine, newspaper, advertisement. In my opinion, I provide you is show the brand wise advertisement. Because you are showing particular brand advertisement, the consumer particularly know about your brand.
In January 2008 the Olympic biscuit company provides the TV advertisement. They are made brand wise advertisements. They are made an advertisement plan.
3.2 SWOT Analysis of Danish Biscuits Ltd
and entrepreneurial management are board.
|Small size which is restricted for us.|
|Offerings||Unique, high quality, reasonable price products.||Lower price competitors.|
|Personnel||Active work force.||Big gap if key employee leaves.|
|Finance||Sales revenues growth is satisfied.||Limited resources compare to competitor.|
|Manufacturing||Raw materials supplier unique quality.||Huge competitors create lacking of our economic side.|
|Research & development||Always ensure exceptional products.|
|Customer/social||Satisfied market, we thought our product standard are likely to be Olympic and Nabisco||Reasonable price its must be lack to other competitors which product price is low.|
|Competitive||Name and attractive packaging in its markets.||Competitors can create to duplicate product.|
|Technological||Technical break troughs enable smaller biscuits producers to achieve many economics available to large competitors.|
|Economic||Consumer income is certain level.||They use local products as well as foreign products.|
|Legal/regulatory||High standard Biscuits quality is ensure 100% halal.|
Source: Performance Evaluation of Danish Biscuits and other Companies
As can be shown in the figure: 2, Danish Biscuits Ltd internal factors have strengths and weaknesses. Strengths is much more, skills and entrepreneurial management are board, unique high-quality, reasonable price, active work force, sales revenues growth is satisfied, raw materials supplier unique quality, ensure quality in delivered products when continuing efforts is done or always ensure exceptional products . We also follow weaknesses small size which is restricted for us, lower price competitors, and big gap if key employee leaves, limited resources compared to competitor, huge competitors create lacking of our economic side.
Threats include the reasonable price its must be lack to other competitors which product price is low, they use local products as well as foreign products.
We think in this time, the world is first going on the business. For now these times establish a business is a best opportunity. That’s why we think to create or form a company which is Danish Biscuits Ltd . The main objective is quality ensure within reasonable price and also earning profit. Our company size is obviously better size when we think the other competitive company in our country.
The company now uses a single outside producer with which it works closely to maintain the consistently high quality required in its products. The greater volume has increased production efficiencies, resulting in a steady decrease in the cost of goods sold.
3.3.2 Customer analysis
Mainly our customers in middle class and also lower middle class people. Which is captured our product in maximum percentage and some percentage of our customers, are working class people. Middle class people income is 15-18 thousands, lower middle class people’s income is 10-12 thousands and working class people’s income is 3-5 thousand. Primarily we expected that these types of customer use our products. After passing many years when we will ensure the best quality of our products, then the people who are stay in upper level class; we target them as the consumer of our products.
At the time of producing our product, we also keep in mind the Health factor of our customer. When a new brand comes in the market consumer first use it and follow that it is good or bad for their health. As we are new company that’s why we belief production concept, in this reason we follow the customers health.
The Danish companies every product name are sweet. Its packaging and color combination are very nice. The consumer like package of milk Marie, they told packet color is very nice.
But Danish main problem are pricing. Few days ago the provide milk Marie biscuit. Its consumer price or retailer price are 35tk per pack, its problem. Because novelty milk Marie biscuit are high selling biscuit among the other Marie biscuit on the market. Novelty milk Marie retailer price is 35tk per pack. So novelty or Danish price is same. But novelty have good brand reputation on the market, they are sell the milk Marie last 3 to 4 year. The Consumer like novelty milk Marie biscuit. So Danish biscuit less the price of milk Marie 1 or 2tk per pack and more price benefit to the retailer.
In the Distribution system Danish biscuits face some problem. Most of the company takes order first and after 1 or 2 day they give the product. But Danish are sells the products hand to hand, its problem. Because many of retailers told they have no money at that time, they are not buy biscuit that time. Some shop employ says the shop keeper is not available in the shop at this time, which is the most visible problem at this time.
Danish cookie is good biscuit, but they are not taken any position on the market. Because cosmos dealer price are 80tk per 12pc and Danish price are 78tk per 12pc .Retailer price are same 8tk per pack. The cosmos give the promotion. Any retailer buy 5 carton they give 5tk commission. If your company wants to achieve the best position on the cookie biscuit market, then you must reduce the price and provide the best promotional activities.
In advertisement department must of the company provided huge campaign about there product. For example haque biscuit company provide the TV advertisement. Olympic provide the shop board. Advertisement is more important to a product. You are made brand wise advertisement. Than every body know the particular brand of your biscuits.
The multi Marie gold biscuit its high selling biscuit of area, all kinds of shop I find out the multi Marie gold biscuit, because the Maries gold price are 20taka per pack. But all of the companies Marie biscuit price are up to 30 taka per packs. I provide u is produce 15 to 20taka Marie pack.
Consumerism is an organized social movement intended to strengthen the rights and power of consumer relative to sellers. Alert market view it is an opportunity to serve consumer better by providing more consumer information, On the other hand environment is an organized social movement seeking to minimize the herm done to the environment and quality of life by marketing practice. It calls for curbing consumer wants when their satisfaction would create too much environment cost. Citizen action has led to the passage of many laws of protect consumer in the area of product safety, truth in packaging, truth bin leading, truth in advertising. The company needs to be much alert about all these factors marketing and selling the product. If the company could keep mutuality between the consumer’s satisfaction and their profit, it would lead the product to climb the highest acme of the success of the marketing environment.
1) Web Address
1) Company Broachers
Business Research Methods
By, William G. Zikmund.