Marketing Plan for Partex Furniture Final
description
Transcript of Marketing Plan for Partex Furniture Final
June 13, 2012
Mr. Khaled Mahmud
Course Instructor
Institute of Business Administration
University of Dhaka
Sir,
We would like to submit the report ‘Marketing Plan for Nature Series of Partex Furniture Limited’ which was a partial requirement for the course. In this report we mainly focus on the process of making an effective marketing plan for Partex Furniture Limited.
We would like to thank you for giving us the opportunity to do this report.
Sincerely,
Ummay Sumaiya Mutiatur Rasul,
On Behalf of the Group-15
BBA 15th Batch
PARTEX GALLERYTable of Contents
Executive Summary........................................................................................................................IV
1. Introduction.................................................................................................................................1
1.1. Origin.........................................................................................................................................1
1.2. Objectives of the report......................................................................................................1
1.3. Scope of the report...............................................................................................................1
1.4. Methodology of the report.................................................................................................1
1.5. Limitations of the report.....................................................................................................2
2. Overview of furniture industry.............................................................................................3
2.1. History of furniture industry..............................................................................................3
2.2. Review of Partex over the time........................................................................................6
3. The corporate Setting............................................................................................................10
3.1. Mission Statement:.............................................................................................................10
3.2. Values & Corner-stones:...................................................................................................10
4. Segmenting, Targeting & Positioning..............................................................................12
4.1. Variables of segmentation...............................................................................................12
4.2. The segmentation process...............................................................................................12
4.3. Selecting segment..............................................................................................................15
4.4. The final target market.....................................................................................................15
4.5. Positioning Partex in consumers mind.........................................................................15
5. Analyses on “Partex Furniture Limited”..........................................................................17
5.1. The 3C Model........................................................................................................................17
5.2. Internal Analyses on “Partex Furniture Limited”.....................................................19
5.2.1. SW Analysis.......................................................................................................................19
5.2.2. SWOT in 7Ps......................................................................................................................20
5.2.3. GE Model for Partex........................................................................................................22
5.2.4. Extended BCG Matrix for furniture............................................................................24
5.3. External Analysis.................................................................................................................25
5.3.1. OT analyses of Partex and competitors..................................................................25
5.3.2. Wood Substitute-price analysis..................................................................................27
5.3.3. Product Price-Design Analysis....................................................................................27
5.3.4. Product price-durability analyses..............................................................................28
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PARTEX GALLERY5.4. Porter’s five forces model................................................................................................28
5.4.1. Rivalry within firms.........................................................................................................28
5.4.2. Barriers to entry and exit.............................................................................................29
5.4.3. Threat of Substitute products.....................................................................................30
5.4.4. Threat of Supplier Power..............................................................................................30
5.4.5. Threat of Buyer Power...................................................................................................30
6. Overview of product line......................................................................................................32
6.1. Brand personality................................................................................................................32
6.2. Description of sub-categories.........................................................................................33
6.3. Raw materials used............................................................................................................33
7. Price.............................................................................................................................................35
8. Place............................................................................................................................................36
9. Promotion...................................................................................................................................38
9.1. Advertisement......................................................................................................................38
9.2. Sales Promotion...................................................................................................................45
9.3. Direct marketing..................................................................................................................46
10. People......................................................................................................................................46
10.1. Design based informed salesperson for timber furniture.................................47
10.2. Customer need based salesperson...........................................................................47
11. Physical Evidence................................................................................................................48
11.1. Renovating showrooms-...............................................................................................48
11.2. Design based categorization.......................................................................................49
12. Evaluations............................................................................................................................49
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Executive Summary
It was 1990 when the main revolution of furniture industry started. Before that furniture industry was dominated by local carpenters and some imported furniture. In early 1990s, Otobi comes as a big company of manufacturing furniture. Then comes Hatil, Partex, Navana and legacy along with some other companies. Mainly Otobi manufactures mechanized furniture and it is the market leader in mechanized furniture. Recently Otobi has started making wooden furniture. Hatil and Lagacy make wooden furniture. Partex started their journey through making timber furniture and later they launched mechanized furniture making.
Partex Gallery:
Partex furniture is a company of Partex Groups founded by Mr. M A Hashem. Partex is the most environmently furniture manufacturer maximization wood conservation. Their values are focused on artistic design,integrity and quality orientation.
Target market:
The company’s target market is urban educated females whose ages are within 25-40. The size of final target market is 1580328. The growth expected in the target market: is 10.48% in five years.
The company has several strong point of differentiating it from its competitor. For example they can use their leadership,heritage and the way of making products.
Internal and external analysis:
To have a complete view, some internal analyses have been done. On SW analysis, we have found that Partex is lagging behind to its main competitor Otobi. The average rating of strength variables for Partex is 6.31 on a scale of 10 (less than Otobi’s 6.88). The average rating of weakness variables is 6.81 which is higher than that of competitor Otobi (5.25). The reasons are some undeniable reality. The company has a first mover’s advantage but fail to utilize it. The company does poor in promotional activity. On OT analysis, Partx has more opportunity than its competitor. The main opportunity is the increasing environmental awareness in Bangladesh. Partex is at build selectively stage at GE model.
In terms of 7P’s partex has several weaknesses. There is a lot of chance to make attractive and useful products. In terms of design, Partex is behind Legacy and Hatil. They give a sales discount thrice a year on rgular basis that often hampers their profit and some customers only buy at the discount time. So the sales yearly distribution is not that smooth. The number of outlets are few and most of the showrooms
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are inconveniently placed, for example some showrooms lack parking space, some showrooms are at VIP road where rickshaw does not go. The showrooms are clumsily organized. The promotional activity is very few in terms of quality and quantity. The sales persons are not that motivated and they do not have specific task. The whim of owners also discourages executives. The whole process of buying is not that customer experience focused. The delivery system is slow.
the strategies:
partex should increase number and quality of advertisements as it does not reach the mind share of many potential customers. Instead of giving discount,it should give voucher and gifts that would seem more worthy to customers. Miniature display and catalogue should be available to common public place. It should make the showrooms more attractive and resourceful so that the potential customers at least pay a visit to the showroom to see furnitures. Is should classify loyal customers and increase direct marketing. It can differentiate itself as an environment friendly furniture company. It should also announce durability of their furniture by giving warranty.
Evaluation:
The increase of market share is supposed to increase a great deal in regard of costs as calculated. As the ROI is positive and worthtaking, Partex should go for the strategy.
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1. Introduction
1.1. Origin
This report is prepared as a partial requirement for the course ‘Marketing
Management’ instructed by Professor Syed Ferhat Anwar. This report has
been prepared by group 15, which consists of four members, of BBA 15th
batch.
1.2. Objectives of the report
This report aims at developing a marketing plan for ‘Nature Series’ of Partex
Furniture Limited through doing an internal and external analysis of the
company.
1.3. Scope of the report
The report deals with a special category of furniture called ‘Nature Series’.
The report deals with the bedroom settings. The plan is made for
countrywide operation and we took Dhaka Metropolitan City as a standard to
measure the characteristics of the target market.
1.4. Methodology of the report
The information used in this report is mainly secondary data collected from
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various publications and websites. Academic books are also consulted.
Primary data is collected from interviews, personal observations.
1.5. Limitations of the report
Some internal company information was not available because of
maintaining confidentiality. In those cases, information has been estimated.
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2. Overview of furniture industry
2.1. History of furniture industry
The main revolution of modern furniture in Dhaka city started during the late
1990s. Before 90s furniture industry was in a scattered form and a few
furniture maker shops were here and there in Dhaka city. However, they
were non-united and they did not think it as an industry. They just worked
out as hereditary business.
However, during late 90s, furniture business emerges as an important field
of modern furniture industry.1 It has changed up its traditional materials and
design, many new raw materials being added in furniture industry and many
types of modern shape and new furniture being emerged. Local furniture
manufacturers are meeting a huge local demand while the upper section of
society is also having access to imported furniture. Fortunately, the local
companies have the lion’s share of the market. After meeting the local
demand, furniture industry moves forward and is concentrating on exporting
furniture to neighboring countries specially India. In 2007-08 fiscal years, $
2.44 million worth of furniture was exported, which was 0.02 percent of the
total export earnings.2
Bangladesh has potential in this particular sector both locally and abroad.
The saga of furniture industry in Bangladesh has mainly originated from
normal local carpenters who used to work on small levels. The craft and art
engraved in today’s furniture bears the testimony of their practice. Some
1 Market Potentials of Modern Furniture in Metropolitan Dhaka City, Md. Joynal Abdin (FBCCI)
2www.bdnews24.com/rb/dg/bd/1134h.
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local furniture boutiques still are carrying that heritage forward but in a small
level. There are 5,000 registered furniture houses in the country, according
to the Bangladesh Furniture Association. Almost 99 per cent of them are non-
brand operators.1
However, brand furniture has curved out a niche among the people. Some
manufacturers are holding more than 50 per cent of the country’s furniture
market worth about Tk 1,600 crore and the forecasted market growth rate
for 2007-2012 is 23.2%. The overall furniture market of Bangladesh is
forecasted to grow in the following manner2:
2005 2006 2007 2008 2009 2010 2011 20120
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Series 1
Series 1
Figure 1 Market Forecast for 2007-2012 in case of Bangladesh
Otobi is the perceived leader of this branded furniture segment.3Following
the footsteps of Otobi, pioneer in establishing brand name in furniture,
Navana, Partex and Hatil are following same type of strategy and have
1 www.bdnews24.com/rb/dg/bd/1134h.2 Statistical Market Forecast for Furniture in Bangladesh, Gobi International, 20073 www.bdnews24.com/rb/dg/bd/1134h.
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already established their brand names. Besides, the state-owned Bangladesh
Forest Industries Development Corporation, Akhtar and Legacy are the other
major brand names in the local furniture market.
The noteworthy Brand Furniture companies are:
1. Otobi: According to CEO Sabbir Hasan Nasir, Otobi is currently holding
70% of branded furniture segment and its current turnover rate is 500
crore per year. Otobi has 13 showrooms in Dhaka and 300 dealers
across the country. Sector experts, said the main reason behind the
phenomenal rise of Otobi is to deliver attractive furniture through wood
substitutes like particle, plastic and laminated boards. Otobi was quick
in action to conceive the idea of manufacturing furniture items by
wood substitutes and became successful for its aggressive and
integrated marketing strategy.1
2. Hatil: Since its inception in 1989, Hatil has been a trendsetter in
innovation, design, management practices and quality in Bangladesh.
It is the market leader in household wooden and processed wood
furniture segment. In 2005, they had major expansion and are
currently operating around 80 outlets in Bangladesh, 1showroom in
Calcutta and 3 other distribution centers in India. They are looking
forward to exploring the international market with foreign partners.2
3. Navana: Navana is one of the most well known brands in the local
market with a wide variety of products. The inception of Navana Group
in the country’s new generation furniture (wood substitute furniture)
market occurred almost four years ago. Navana furniture
1www.bdnews24.com/rb/dg/bd/1134h.2 ICPAR Mumbai, April 14, 2009
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ergonomically solves to ensure comfort and durability. Navana has 80
showrooms all over the country and has recently started exporting to
Agortola, Calcutta.1
4. Legacy: Like Hatil, legacy concentrates in wooden furniture segment
and targets the higher market segment. It started operating in 19952.
Sharmin Siraj, a designer at Legacy Furniture Ltd, which produces
artistic furniture, said people have now become more conscious about
aesthetic beauty of home furniture, being a bit costly.3
5. Akhtar: Akhtar Furniture is a sister concern of Akhtar Automobile Ltd. It
operates in wrought iron, wooden and other furniture. Akhtar has fame
in the upper segment of the market for its wooden furniture and
operates outside the country especially in Middle East.
2.2. Review of Partex over the time
Invention of particleboard
When renowned scientist Dr. Qudrat-e-khuda invented particleboard from
patkhori, it made a breakthrough as a replacement of wood. It was perceived
to be a solution to the need of timber in different wood-based industries
along with a way to solve alarming rate of wood smuggling. It also proved to
be economical to use particleboard, as “Patkhori” was mainly the wastage of
1 ICPAR Mumbai, April 14, 20092 www.bangladeshinc.com3 Interview at Fourth National Furniture Fair, 2009
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the Adamji Jute mill. The then Pakistan Government took patent of the
formula and first implemented it in the Partex Company, as the company
was a government company that time.
Investment in particleboard
With the help of the Privatization Act, Bangladesh government wanted to
yield the company in private hands to ensure proper use of its resources.
Then, M.A.Hashem came forward to patron this company with a view to
prosper as the finest particleboard manufacturers in the country and if
possible carry this name overseas. With a lump sum of 40 million taka, he
bought it from the government and started its functioning. However, finest
people are needed to improve the condition of this fine company along with
its fine board. So gradually, the company grew up into a first-class
particleboard maker.
Improvised board making
It is a known and agreed fact that there is always room for improvement.
That is why Partex did not stop only with the same particleboard invented
long ago. Many problems arose with that old board. It did not have high
durability, was easily damaged by water or heat, did not have a fashionable
look and it was quite fragile. Therefore, R&D sector started putting their
efforts in it to find out a way to improve. Several upgrading is shown by the
flowchart given below:
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From board to furniture
At the beginning, Partex was just the supplier of particleboard. Later, it
started using boards in door making. However, as the board has a size of 20
feet and only 14 feet is needed to make a door, the remaining 6 feet had no
utility. That is why; the company had to sell it to local manufacturers at a
much lower price, sometimes lower than the landing price. Therefore, the top
management came up with a view to use this remaining part and
concentrate in furniture making.
The furniture village
As said before, finest people are needed to come up with finest work. That is
why; Partex recruited 555 carpenters who have expertise on woodcarving
and furniture making. In order to make them feel homely in factory area
Naryangonj, the company established schools for their children, built up
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1ParticleboardWood substitute
2Vineer BoardCover & protects particleboard
3Cross vineerReinforcing capability
4Laqur and gratingfulfills varnishing purpose
Figure 2 Transition to modern furniture
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homes and provided job to their spouses. Thus, a whole Partex village came
into form.
Figure 3 History of Partex Furniture
Era of mechanized furniture
Around the year 2003, Partex became interested in making mechanized
furniture as it has growing demand among the consumers. The company
recruited 203 people who were experts in using CDS, CNC and making
mechanized furniture. However, they could not merge with the artisans in
the initial stage and Partex had to go through a cultural dilemma. Therefore,
their production can be time lined as follows:
Position of Partex
Partex is now a quite well known brand as a furniture manufacturer. They are
renowned because of their self-reliance that emphasizes their vertical
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Traditional furniture(1999)batch productionlittle customization
Mechanized & traditional(2003-05)batch production
Innovative(2006-to date)batch productionrequires proper marketing
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integration. Their forest-friendliness is also a major issue as they do not take
wood from local timber traders but buy from international timber trading
association.
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3. The corporate Setting
3.1. Mission Statement:
“We, through our forest-friendly interior adornment business aim to bring
comfort & style in the lives of the prosperous by making quality-oriented
furniture through blending with traditional and artistic woodcraft.”
3.2. Values & Corner-stones:
Partex perceives four elements as the cornerstones that build up the
business and support the company to move forward. The core value-integrity
of Partex further influences these cornerstones.
Value-Integrity
Partex Furniture values integrity in every sphere of business and emphasize
on maintain high ethical standard in the daily conduct of business. Partex
has adopted integrity as the guiding principle and follows it everywhere:
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Quality-orientation
Art & Innovation
Environment-friendliness
Customer Focus
Integrity
Figure 4 Value & cornerstones of Partex Furniture Ltd.
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Cornerstone 1: Quality orientation
Partex Furniture promises to maintain superb quality of our products
especially regarding raw materials, technology and design. Due to the
relentless effort to uphold this promise, Partex has achieved ISO certification
and made a place of its own in the international market.
Cornerstone 2: Art & Innovation
A piece of furniture is not only a thing for storing things or for sitting or
sleeping on. Partex believes in providing the customers new and innovative
products with international standards to match with the changing lifestyle of
today.
Cornerstone 3: Environment-friendliness
Partex maintains and operates the business for long-term sustainability.
Partex believes that saving the environment is essential for that. To ensure
wood conservation, Partex combines economic use of wood and creates
wood substitute products for furnishing needs.
Cornerstone 4: Customer Focus
Partex focuses on the fulfillment of customers’ needs. To ensure that
fulfillment, Partex tries to offer complete solutions, free technical consultancy
services, after sales support and efficient delivery system. Above all, Partex
wants to deliver quality products that exceed expectations.
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4. Segmenting, Targeting & Positioning
A good market segmentation will result in segment members that are
internally homogenous and externally heterogeneous; that is, as similar as
possible within the segment, and as different as possible between segments.
4.1. Variables of segmentationFor segmenting the overall (existing and potential) market, demographic
variables like age, gender, education were used as the determining factors.
The social factor such as urban area is also taken into account.
Demographic Factors: age, gender and education
Measurable and exact size can be evaluated
The market can be grouped easily
Geographical: urban
Operations and lifestyle remains quite same in a domain
4.2. The segmentation process
To find an appropriate segment it is necessary to remember two things. First,
the needs of a segment we drive to should match the benefits offered by our
product and go according to our value proposition. Second, the benefits we
offer should be grater then other competitors working within the same
industry. Thus, for segmenting the total market, we first need to identify the
needs of different segments and find out the benefits we can provide them.
Thus, we can pick up the segments whose needs we can satisfy most.
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Segmentation step 1: urban people
Needs Benefits offered by Partex
Style in living Designs blends traditional and
modern craft
Easy access for further repair
work
Satisfactory repair service
Easy accommodation in
interior
Convenient design of furniture
Multiple use of commodities Multi functional furniture
Portability Light-weight, disassemble possible
furniture
Flexibility to choose from
different options
Availability of various design
Neat interior Simplicity in designs
Need to keep status within
own circle
Value based pricing
Size of the segment: 1, 89, 28,1841
Segmentation step 02: Female
Needs Benefits offered by Partex
I. Feel confident about home-
furnishing
Established brand name
II. Comfort for eyes Visually soothing designs for
furniture
1 Statistical Year Book 2006, page-51
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III. Uniqueness Innovative, continuously changing
product design
Size of the segment: 86, 84,0101
Segmentation step 03: Educated
Needs Benefits offered by Partex
Meet the growing trend of
native art and craft
Creating new designs using mix of
solid wood curving and
particleboard
Depiction of Aestheticism Product blends folk and nobility
Size of the segment:
Total number of urban female* female education rate in urban area
=86, 84,010* 64.67%2
= 56, 15,949
Segmentation step 04: age group (25-40)
Needs Benefits offered by Partex
Feel up to date Contemporary design and materials
of furniture
1 Statistical Year Book 2006, page-532 Statistical Year Book 2006, page-626
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Show constructive attitude Consciousness regarding wood
conservation
Establish recent changes in
marital/job/residence status
Wide array of furniture targeted
towards families
Size of the segment:
Total number of educated urban female * Rate of female of ages 25-40
=56, 15,949*28.14%1
=15, 80,328
4.3. Selecting segment
As a home-adornment company, we choose to follow concentrated
segmenting. Because,
We will go for large share in one or few market segments
Build and retain position by superior knowledge and reputation in
those few segments
Innovate variety within a few categories and thus market our
products more efficiently.
4.4. The final target market
The size of final target market: 1580328
The growth expected in the target market: 10.48% in five years2
1 Statistical Year Book 2006, page-332 Size of target market in 1996=15203
Size of target market in 2001= 16796So, the growth expected in the target market=1593/15203*100%=10.48%
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4.5. Positioning Partex in consumers mindPartex has several strength points to differentiate their furniture from others.
For example:
a) Attribute ownership: Partex should position their products in a way
that will attach a particular attribute to their products. When people
hear the name Otobi, people think of light and simple design, when
people come to the name of Legacy, exclusive design comes to their
mind. So Partex has to own an attribute different from its competitor.
Hatil is related to ‘solid wood’ furniture and Navana is related to cheap
furniture.1 Partex should choose an appropriate attribute for example
‘innovative design in durable furniture’ and position their products in
consumer minds. If they want to establish the attribute ‘durable’ they
can give written warranty to the customers. This idea will be new in
furniture industry and Partex will gain an advantage.
b) Leadership: Partex is the pioneer in the concept of wood conservation
while making furniture and they should not be afraid to brag about it.
While the recent craze is about environment friendliness, they can take
advantage of it. In their campaign, they should articulate that they are
the leading environment friendly company.
1 ICPAR Mumbai, April 14, 2009
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5. Analyses on “Partex Furniture Limited”
5.1. The 3C Model
The 3C Model is a strategic look at the factors needed for success. Kenichi
Ohmae, a business and corporate strategist, developed it.
The 3C model points out that a strategist should focus on three key factors
for success.1 In the construction of a business strategy, three main players
must be taken into account:
A. The corporation
Selectivity and sequencing:
The corporation does not have to lead in every function to win. If it can gain
decisive edge in one key function, it will eventually be able to improve its
other functions which are now average.
Partex earns more profit margins from timber furniture and a meager profit
margin from mechanized furniture though the sales volumes of mechanized
and timber furniture is almost same. So, Partex Should focus on timber
furniture.
Make or buy:
In case of rapidly rising wage costs, it becomes a critical decision for a
company to subcontract a major share of its assembly operations. Partex has
a very good relationship with the carpenters and suppliers. Most of the
carpenters work there at contract basis. There are some groups of
carpenters who work for Partex on contractual basis. So, Partex should
1 www.wikipedia.org
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continue the current strategy of making the furniture using the vertical
integration.
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Cost-effectiveness:
Partex claimed to have the cost leadership in furniture market. As it ensures
maximum wood preservation and contractual artisanship, it has succeeded
to maintain cost effectiveness.
B. The Customer
Segmenting by objectives:
Partex has segmented its customers by objectives. The company makes
timber furniture, mechanized furniture and office and hospital furniture.
Mainly timber furniture is for upper class people who want elegant design to
decorate their houses, mechanized furniture is for people who want simple
design and durability for low price and office and hospital furniture is for
commercial uses.
Segmenting the market once more:
In fierce competition, competitors are likely to be dissecting the market in
similar ways. Partex has a scope of segmenting the market in a narrower
way. There is a market for selling mechanized furniture in a lot for
commercial use and Partex segmented that market but there is also a
market which will buy high price timber furniture in a bulk for commercial
use (for example, first class hotels, resorts, apartments etc) and Partex has
not segmented that market yet.
C. The Competitor
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These strategies are constructed by looking at possible sources of
differentiation in functions such as: design, engineering, sales and servicing.
In both mechanized and timber furniture, the performance of Partex is not
that much different from the competitors. In mechanized furniture, the main
competitor of Partex is Otobi. In timber furniture, Partex and its competitor
sell through own showrooms. However, Partex has several strengthening
points to differentiate its products from the competitors and the company is
lagging behind to differentiate its products from others.
5.2. Internal Analyses on “Partex Furniture Limited”
5.2.1. SW Analysis
Strength- Weakness analysis of Partex and competitors:
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PartexOtobi
Navana Hatil
Akhtar Legacy
Others
Weaknesses
Stre
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Strength-weakness analysis of Partex furniture gives a look into the internal
qualities of the company. Though being the first mover in the furniture
business, Partex is lagging behind its main competitor Otobi.
The average rating of strength variables for Partex is 6.31 on a scale of 10
(less than Otobi’s 6.88). Though it is above average, it is not good enough.
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Further look into the strength variables of the company reveals some
inconvenient facts1.
Partex has the first mover’s advantage but they don’t actually use it to
promote their product. Otobi is already established as the generic name for
mechanized furniture. Partex products have long durability but again this
point is never highlighted in their marketing campaigns. They don’t even
provide any kind of warranty which projects an image of nondurable
products in consumers’ minds.
Partex scores very low in some strength variables. It indicates their lack of
initiatives on those spheres. The packaging of the furniture is also very
ordinary and often fails to secure the furniture from scratches and smudges.
Partex doesn’t have any customer hotline or standby helpline (one of the
competitors, Otobi, has already started it).
The average rating of weakness variables is 6.81 which is higher than that of
competitor Otobi (5.25). The reasons are some undeniable reality.2
As Partex Furniture is often treated virtually as a brand extension of the
Partex Particle Boards, the company faces problems to cope up with rest of
the Partex group.
Partex also has a very weak demand forecasting which often results in pile of
products in the showrooms. It is mainly because Partex doesn’t have an
exclusive database of past records to forecast on. Centralized nature of the
company is also responsible for this.
The SW analysis clarifies the internal problems and strengths for Partex
furniture. Steps should be taken to minimize the weaknesses and highlight
the strengths.
1 Appendix-12 Appendix-1
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5.2.2. SWOT in 7PsFrom the SWOT analysis that we have done, it is imminent that Partex has a
lot to improve in its marketing mix. Here we will discuss the SWOT of Partex
in the light of 7Ps.
Product:
Partex has to develop their product. From the SWOT analysis, major
weaknesses for product can be attributed to, unattractive, non-descriptive
and generic packaging and nonflexible space consuming design of the
product.
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Price:
Partex should not give exaggerated sales promotion. Sales promotion often
creates quality dilution in the consumers’ mind. Rather Partex should focus
on value added gifts like vouchers or show pieces. Sales promotion also
increases price sensitivity among the consumers.
Place:
The Partex showrooms are not exactly at hand for most of the people. There
are seven owned showrooms of Partex. The other outlets are dealer based.
Even in Dhaka, their largest showroom is inconveniently placed in Farmgate.
High score in “Unsuitable location of showrooms” denotes that. Moreover,
the showrooms are clumsily decorated, placements of products are not
category based; rather they are rather product based.
Promotion:
Partex has major weaknesses in promotion. They take few promotional
campaigns which are shortly effective but do not create any value in the
mind of customers. Moreover, their billboards and printed ads are often
misplaced which results into low turnover of the advertisements. Partex
should also try to diminish the effect of promotion threats like consumers’
avoidance of ads, low attention span and unexposureable media habit of the
consumers.
People:
Partex has a friendly and active sales force in their showrooms. But, the
problem is that there is no job-specification. Their sales force should be more
motivated. But hasty decision making, de-motivating corporate ladder,
inconsistency of company culture and primarily the rigid structure of Partex
are contributing to the dissatisfaction of the employees.
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Process:
The delivery time of Partex furniture is still high on average. Partex have
shown instant delivery capabilities on special occasions, we propose that this
should be practiced on every purchase. However, the immediate step is to
meet the given deadline. Consumers really do not think high of a company
that breaks its own promise.
Physical Evidence:
The exterior design of the showrooms is such that it is hard for the
customers to identify the showrooms. Like the other papa-mama stores, the
showrooms of Partex are painted in white, blue and red color mainly.
5.2.3. GE Model for Partex
We Identified 16 variables of business strengths for Partex. We assigned
weight to each variable based on their importance. Then, Partex is rated
each variable in a scale of 1-5. After taking the weighted average of the
variables, we got the business strength rating for Partex. 1
11 variables for market attractiveness were selected based on a rough
survey among the prospective and existing buyers of the furniture. The
rating was given by the consumers.2
Business Strength
Mark
et
5 Protect Position Invest to Build Build Selectively
1 Appendix-32 Appendix-4
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Att
ract
iveness
3.6
7
Build Selectively
Partex
Selectivity/Manage
for Earnings
Limited Expansions
2.3
3
Protect and
Refocus
Manage for
Earnings
Divest
1 5 3.67 2.33 1
Partex has scored low in Market attractiveness. Partex falls in the ‘build
selectively’ segment. Though they are still in the “favorable” portion of the
GE matrix, they actually need to develop some of their attributes.
To be specific they should
Increase number and quality of advertisements
Make the showrooms more attractive and resourceful
Increase direct marketing
Use environmental awareness as business tool
Announce durability of their furniture
Invest on most attractive market segment
Create the ability to counter the competition in company’s ‘low
market share segments’
Create growth opportunities in untouched market segment
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5.2.4. Extended BCG Matrix for furniture
Mark
et
Gro
wth
5
Stars Question Marks
Timber mid-priced
furniture including
Sofa, Dinning Set,
Beds, Dressing Tables
etc.
Hospital Furniture
Interior Decoration
Computer Furniture
Alternative material Sofa
Alternative material Chairs
Partex Aesthetic
Lister Series
1.5
%
Cash Cows Dogs
Auxiliary Furniture
Alternative material
household furniture
Kitchen Cabinets
-2%
Orphans Dead
Victorian Furniture
5 0.5 0.05
Share
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5.3. External Analysis
5.3.1. OT analyses of Partex and competitors
012345678910
0
1
2
3
4
5
6
7
8
9
10
Partex
Otobi
Navana Hatil
AkhtarLegacy Others
Threats
Opp
ortu
nitie
s
Opportunity-threat analysis of the company gives information about the
external forces acting upon the company. While some of these forces are
favorable for Partex, steps should also be taken to minimize the unfavorable
effects.
The average opportunity score for Partex shows that the company is in a
better position to take advantage of the opportunities than the competitors
are. Environmental awareness is rapidly increasing in Bangladesh. Due to the
fact that Partex has strength in minimization of wood use, Partex can avail
this opportunity. The approval of environmentalists for their products can be
an added advantage for them. The competitors have not started to take
advantage of the awareness; here Partex can make a difference. The overall
preference for brand furniture is also increasing; sufficient awareness about
the company among the customers will cause this preference to increase the
sales.
The current trend of appreciation for folk crafts and traditional motifs is also
an excellent opportunity to promote themed products. Export opportunities
also look promising for furniture sector so that option is worth tapping.
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But on the other hand, Partex is also more sensitive to external threats than
other competitors. A number of external factors seem to be problematic for
Partex. The timber furniture market has exposureed maturity, though it holds
the largest share in the furniture market. Decreasing growth rate of timber
furniture market is decreasing and companies must find other solutions to
survive. High exit barrier in furniture industry also prevents Partex from
experimenting with their products.
Lack of import barriers for foreign furniture import is also creating new
competitors, which, though depending entirely on outside supply, are
capturing a significant portion of market share. Another hidden threat is the
off stream plastic furniture makers. Plastic furniture is becoming popular for
their low price and lower maintenance cost. The consumer’s media habit,
especially avoidance to ads and low attention span often prevents the
company to exposure its target bunch of consumers with the right message.
Partex has to deal with it by carefully designing and placing their ads for
maximum reach.1
1 Appendix-2
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5.3.2. Wood Substitute-price analysis
Price of the ProductM
ater
ials
use
d
High Price
Medium Price
Low Price
Wood Legacy Hatil, Akhter
Infinite
Close to Wood
Fourniture
Boutique
Partex
Wood Substitut
e
Otobi Partex,
Otobi, Infinit
e
5.3.3. Product Price-Design AnalysisDesign
Pri
ce r
an
ge(b
ed
room
set)
In 000’s
Very Attractive
Innovative
Typical +Job shop Typical No exclusive design
120-above
Legacy, Akhtar, Hatil,Imported
90-120
Partex Aesthetic
65-90 Partex (timber)
Otobi (timber)
50-65 Partex(mechanized),
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Otobi(mechanized)
35-50 Partex Lister Navana Local Wood shop
5.3.4. Product price-durability analyses
Price 35-50 50-65 65-90 90-120 120-above
Durabil
ity
Low Local
Carpenters
(mechanize
d)
Mediu
m
Navana,
Partex
Lister,
Local(timbe
r)
Local
Carpenters
(timber)
Partex
(timber)
High Otobi
(mechanized)
Otobi
(timber)
Partex
Aestheti
c
Legacy, Hatil,
Akhtar,
Imported,
Furniture
Boutique
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5.4. Porter’s five forces model
5.4.1. Rivalry within firms
Rivalry among existing Firms in the furniture industry is intensified by the
following factors:
i. It is noteworthy that Hatil and Otobi, the main rivals to Partex came
earlier in the market. As a result, rivalry is intensified among the
established firms because of Partex’s creating the risk of potential
entrant.
ii. The least intense rivalry will prevail in an industry in which one or a
few large firms dominate. Thus, if we look at the Brand Furniture
industry comprising Partex, Hatil and OTOBI there are few companies
with shared dominance. This results in Oligopoly. .
iii.Though Partex had 100 crore taka as investment, the full-scale
operation for Partex is yet to begin and apparently it is following otobi
and hatil. That is how the strategy do not differ much from them and
rivalry increases. In spite of this, the other two company do not
mention having Partex as a noteworthy competitor and continues with
their own strategy.
iv. Furthermore, both the principle competitors, Hatil and OTOBI,
pioneered the concept of Brand Furniture industry, which has
apparently been booming for the past 4 years1. Partex identified this
opportunity in the market and it is not a new entrant. In the end, with
the strength of integration prevailing within Partex, there are
possibilities of the industry becoming highly consolidated.
v. The furniture industry is not a commodity market and each player has
its differential advantages. OTOBI has pioneered panel-based
furniture. Imported-furniture based companies are also coming up.
Hatil has set the tone in brand timber-based furniture and Partex
1 OTOBI introduced brand furniture in the International Trade Fair 1999
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eventually followed that. In this situation, price is not that big a factor
rather it’s the brand image, quality, innovation etc. that create the
difference. Moreover, when the differentiation is well established, each
company has quite a blue ocean of their own and thus the rivalry
becomes less.
5.4.2. Barriers to entry and exit
Exit barriers are economic, strategic and emotional factors that may keep
Partex in the furniture industry even if returns are low. Exit barriers further
create chronic overcapacity and the intense rivalry which accompanies that
condition.
High Exit barriers for Partex:
Since Partex is a relatively new entrant in the home furniture industry and
they have invested Tk 100 crore to establish their stand in the market, it
makes it hard for Partex to leave the industry.
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5.4.3. Threat of Substitute products
Close substitutes for Partex furniture are:
Wrought Iron furniture
Plastic furniture
Solid wooden furniture
These close substitutes are a very potent competitive threat for Partex
furniture concern. Moreover, the Wrought Iron furniture boomed up as a fade
and now lost their attractiveness due to low durability while plastic furniture
is perceived as outdoor furniture and targets to a different market segment.
Thus, the threat for Partex is substantially less.
However, the solid wood made furniture is a big threat for Partex. The
consumer’s perception is that the wood made furniture is more reliable and
that the particleboard is made of jute-stick only. Besides, wood can be
extensively curved but boards cannot be. To cope with this problem Partex
started to integrate solid wood-curving upon their particleboard furniture.
5.4.4. Threat of Supplier Power
For Partex the threat of the bargaining power of the supplier is likely to be
low due to
Vertical integration
Good relation with foreign timber traders
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5.4.5. Threat of Buyer Power
The buyer is the next person downstream in the value chain. The buyers of
Partex are grouped as the following:
General consumers having event-wise demand, buy in small amount
but altogether build a large group providing maximum revenue.
Institutions and organization having bulk demand
Furniture buyers can integrate backward if suppliers cannot offer satisfactory
prices. Often consumers choose designs of furniture from galleries and
produce them through individual wood artisans.
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6. Overview of product line
PARTEX GALLERY has introduced a fundamentally new pattern of furniture by
the end of 2005. This type is based on the philosophy of Pablo Picasso. The
philosophy of Pablo Picasso says that the origination of all creations is
inspired from nature. With an awe-inspiring combination of artistic talent of
Artist Mizanur Rahman (from CTG institute of Fine Arts), and a team of
technical experts led by wood Technologist Abdul Hai (from Kaptai Institute
of Civil Engineering & Wood Technology), these designs have been
introduced.
Previously, the company launched this category under the name ‘Nature
Series’. However, this name is not sufficient to include all the sub-categories.
So, a new name is needed to justify the name according to the product line.
To represent the innovative design of this category, the name ‘Partex
Aesthetic’ is recommended.
6.1. Brand personality
Partex’s different products resemble to different brand personality. For
example, the costly home timber furniture resembles with sophistication
(upper class and charming), the ‘Partex Aesthetic’ furniture, which is timber
furniture with innovative design, resembles with competence (reliable,
successful and intelligent). The mechanized furniture low in price and design
and suitable for rough use resembles with ruggedness (outdoorsy and tough)
Under the ‘Partex Aesthetic’, there are three different subcategories: Nature
Series, Royal Series and Partex Folk. The basic difference between these
three subcategories is the element of design. When an element of nature like
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fish, flying geese etc is engraved on the furniture, it is called ‘Nature Series’.
There are some bedroom sets called ‘prince’,’princess’ etc. which upholds
royalty and hence named as ‘Royal Series’. The bedroom sets which have
embraced the folk designs and crafts like ‘nokshi’, ‘wheel’ etc. are under the
series named ‘Partex Folk’1.
6.2. Description of sub-categories
i. Prince Bedroom Set:
Prince bedroom set, a full line bedroom set, is a feast to see two cultures
mixed in such exciting manner. The headboard of the bed has a Roman pillar
in the left side and floral patterns from the subcontinent engraved on the
right. The excellent 60% gloss lacquer stain feels like muslin.
ii. Evening Bedroom Set:
Evening bedroom set, comprised of bed, dressing table and almirah, upholds
the scenario of the sea beach in the evening. The bed is an excellent
cascade of salty blue water turned mahogany by the setting sun. Palm trees
explode out of the structure like dancing breeze over nature. The footboard
of the bed is slightly carved and simple with the name of ‘Evening’ engraved
on it. The mirror is so large that a girl can see a full size reflection of herself
on the mirror. The almirah has the palm tree and setting sun engraved too.
iii.Heritage Bedroom Set:
Heritage bedroom set is a prominent example of ‘Partex Folk’. The design
upholds the heritage of Bangladesh with the carvings of plough, cart, fence
and hat of the farmer. You can have a bedroom set which talks about your
origin, touches your heart and becomes the soul of Bangladeshis.
1 Detailed list in Appendix -6
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6.3. Raw materials used
Timber is used to make furniture of all these three subcategories. Teak,
Champ wood etc. are used mostly. The logs are stored in sheds to protect
from direct sunlight and rain. Subsequently, logs are sawn to planks well
ahead of time and seasoned to moisture content of 12+2 % in the most
modern seasoning kilns. These are then again sorted out and good portions
are selected for furniture production. The level of formaldehyde emission is
kept to international standard to make the Furniture and wooden materials
fire retardant. Furthermore, water-based adhesive is used in joints furniture.
Strict supervisions in all stages of manufacture are mentioned1.
Australian Lacquering technology is used in all these three categories. This
lacquer is Called ‘NC lacquer’ which is very famous in the furniture world.
This enables a wide diversity (Infinite number of combinations) in the choice
of colors named in dramatic tones such as (1) Sandgold Cherry, (2) Sandgold
milky white, (3) Granite crackle etc. In case of ‘Partex Folk’, sandgold cherry
is used while light to deep mahogany color is mostly used for ‘nature series’
and ‘royal series’.
The touch of craftsmanship and unique design is found here. The trained
craftsmen living in the factory region make this furniture from the core of
their hurt. Even, the wives of the craftsmen work there and design the subtle
and delicate engravings on the furniture.
1Appendix-7
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7. Price
There will not be any change in the current pricing method of the company
for ‘Partex Aesthetic’. Partex is currently focusing on increasing the market
share which can be gained by getting mind share and heart share.
i. Pricing Method: Mark-up pricing
Reason:
To charge a fair price
Consistency in pricing policy
New form of design
As a matter of fact, this product has already been launched in the market
following the mark-up pricing method. So, a change in the pricing strategy
may negatively affect the consumer perception. So, the price will not be
changed.
ii. Strategic choice: It can be seen that in terms of durability, ‘Partex
Aesthetic’ is playing at the same level like Hatil, Legacy and Otobi. All of
them use lacquer technology in case of the timber furniture which helps to
ensure durability. But, ‘Partex Aesthetic’ brings about a new form of design.
So, this innovative design is being offered at a lower price than Legacy and
Hatil.
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8. Place
As furniture is a shopping product and people normally show dissonance-
reducing buying behavior while purchasing furniture, the proper placement
of showrooms and outlets is necessary for a company to be close to
consumers’ mindset.
However, Partex is not the forbearer of furniture industry in Bangladesh so
its proper placement is hampered by lack of suitable locations and silent
management. So far, Partex has only 7 own showrooms and 69 retail outlets
which is negligible compared to what other competitors like Otobi, Hatil has1.
This stands in the way of availability to customers.
To cope up with this situation, Partex is trying to have more dealers that will
eventually disturb revenue, as dealers require a high margin. It is observed
that, these small outlets contribute to the availability but on the other side,
hampers image as the store atmosphere is not properly managed.
The one way to solve this dilemma is to establish mobile information centre,
which will operate in different selective areas and will provide the customers
with all the necessary information they require to make a purchase. These
info-centers will also enquire about customers’ locality and assist them in
ordering from the nearby outlet. This direct marketing strategy will minimize
the need of additional showrooms. However, this strategy will take away the
opportunity of touch-and-feel which is very important for furniture buying.
Therefore, Partex first needs to identify locations near resident areas where
the target market will have more opportunity to pay at least one visit
1 www.partexgroup.com/furniture/contactus
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(favorably in a casual manner) and will come back to purchase in their
convenient time. If these places cannot be selected for establishing
showrooms or outlets then Partex should not hastily set up more outlets in
subliminal places rather it should build up direct communication to boost up
the popularity of showroom
Therefore, considering the present scenario ‘Catalogue Marketing’ is more
beneficiary for Partex to leave an impact on consumers mind. The catalogue
marketing strategy is described in the “Direct Marketing” section.
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9. Promotion
In furniture industry, common perception is that word of mouth works very
well but in Partex no clear strategy to create positive buzz marketing has yet
been established. The overall Partex group has strong public relation with
press, cricket board, officials but that is not being used to foster furniture.
Sales promotion tools are widely used by the company to foster sales in
special occasions.
The promotion mix of Partex should be a pull strategy that is ads and the
company itself should run sales promotion. In addition, when positive
response is created, channel members can come forward to meet up to the
consumers problem solving.
The objective of the advertisement made for ‘Partex Aesthetic’ is to
persuade potential consumers so they will demand the furniture in their
homes. We can see from the buyer readiness stage that, the market is aware
of our presence but do not have good perception about us. Therefore, first
we need to inform customers through advertising and then persuade them to
buy. We need to increase market share, have strong competitors so large
budget is needed. However, as the product is differentiated, moderate level
of budget can be used but it has to be indicative to overall promotional
campaign.
9.1. AdvertisementPartex normally gives more thought about advertising in printed media
specially newspaper. Past observations done by other company personnel
indicates that, printed media brings more interested customer for them.
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Choosing media
i. Tri-faced and banners
Benefits of Tri-faced Promotional need of Nature
series
Large reach in one single point Target customers Residence or office
or the road they use
Eye-catching transition Makes people interested to see the
next face of the tri-faced nature
series banner
Three different ads at time
sequence
Promotion of three different products
at same arrangement1
The structured message 2 :
Face 1: An “Almirah” on underwater having a treasure chest beside
it. The tagged line would be “Feel the elegance…”
Face 2: A “Nile Dressing Table” is standing on an ocean surface with
tagged line “Experience the beauty…”
Face 3: A “Sunrise Bed” in front of a mountain plain having a tag line
“Dream the Breeze…”
Strategies undertaken:
1 Marketing Management, Philip Kotler, Page- 5022 Appendix-8
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Tri-faced will be set on the following areas: in front of Sheraton Hotel, in
Gulshan Circle, at Mirpur Road and at Sonargaon Crossing as the reach to the
target market is higher there due to high traffic.
Tri-faced promotion will continue for 1 month in order to remind the
target market of our offerings continuously. A longer period of tri-face
advertising will not be followed, as that will create a sense of boredom
among the consumers.
Total cost for the tri-faced will be 1500tk per sq. feet
*(10’*20’)/12+50000tk tax, in total 75000tk1
ii. Newspaper
Benefits of Newspaper Promotional need of Nature
series
Flexibility Option to disperse information
limitedly
Timeliness Placement of ads on convenient
occasions like Eid, Bangla New Year
etc.
High credibility Popular and politically impartial
image of the newspaper
Good local market coverage2 Circulation exposureing large
percentage of target market
The structured message:
1 Referred to current report, financial statement2 Marketing Management, Philip Kotler, Page- 501
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The message is concentrated into building interest and desire according to
AIDA concept.
a) Appeal: Emotional appeal to motivate purchase
b) Structure:
In printed ads, conclusion will be drawn in a series so
consumers have freedom to draw conclusion at first and
check it afterwards
The strong or main idea is placed at last so it can have the
long-lasting effect1
The news media selected is the “Daily Prothom Alo” due to its high
score in relevancy.2
Effectiveness:
Description Effectiveness Timing
1 Appendix-92 Appendix-10
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Filmstrip1: Arko was praising about the new female designer working with him. His
sister-in-law ridicules him “I can bet that my sister is a far better designer than your
colleague!”
Filmstrip2: Arko opens the bedroom door and gasps, “I am glad to have lost the bet
but how?”
PARTEX GALLERY
Target The target
market Reach Exposure
Frequency Pattern
Media Prothom Alo 24,00,0001 312002 3 Series
of three
adsPosition Last page
Spread 24 column inch
Appear From Tuesday
1 www.eprothom alo.com2 24,00,000*1.3%(target market to total population ratio= 1.3%)
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iii. Electronic media
Benefits of TVC Promotional need of Nature
series
Mass-marketing coverage Making people aware of nature
Low cost/reach ratio Cost effective tool to exposure target
market
Appeal to major senses Showing the beauty and design more
exclusively than other media.
Animated portrayal1 Will create interest about nature
series.
1 Marketing Management, Philip Kotler, Page-503
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Plot of the message
The message is concentrated into building interest and desire according to
AIDA concept
a) Appeal: Rational and emotional together is used to convince
consumers and persuade purchase.
b) Structure
The strong or main idea is placed at last so it can have the
long-lasting effect
Two-sided ad is used first to convince the educated
audience.
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Scene 1: a young woman is talking to her fiancée as she prepares to go to buy furniture with him. She ends the phone call and while passing the corridor of her house, she peeps into the bedroom of her elder brother's bedroom. There is a large bed with heavy design. But, as the quality of the wood is not that good, part of the bed has become fade and there is a crack on the side of bed. The girl sighed and left.
Scene 2: the man (who is the fiancée of the woman seen in the first scene) passes through his house and peeps into his younger brother's bedroom. The bedroom is full with mechanized furniture. The room is very simple and the border of the mechanized furniture is torn and displaced. The man sighed and left.
Scene 3: the man and the woman entered into the ‘Partex Gallery’ and they were amazed to see the unique design.
Scene 5: then there will be the tagline...now innovative design lasts
PARTEX GALLERY
Among the great number of local satellite channels, ATN and NTV
has been selected for their overall high score.1
Effectiveness:
Description Effectiveness Timing
Targe
t
Reach Frequency Pattern
Media ATN and NTV 46,57,9202 10 per
week
Continuous
on same
schedule
for 1
month
Positi
on
8:15- Houseful at NTV
11:30-Doll’s House at
ATNSprea
d
8:00-12:00
Appea
r
Mid break &
beginning of program
Durati
on
30 Sec.
iv. Miniature display
To maximize the reach to the target customer and to gain favorable
positive attitude from them, a miniature room display having the size of 4
feet by 4 feet will be set on Nondon Park. The miniature will represent a
completely decorated “Evening Bedroom set” made of plaster and
hardboard but colored in the dark chocolate plating to give real feelings.
There will be a “Voucher Corner”. It will offer discount to visitors who are
interested in furniture buying.
1 2 Referred to financial statement
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9.2. Sales Promotion
Objective:
To enhance long-term relation and reinforce position
To induce short-term quick response
To act as a base of future direct marketing and the step to initiate
positive word-of-mouth
Sales promotion Strategy:
Observing from the consumers perspective we can say that so far the sales
promotion given by the companies is, nothing but a discount or rather say,
price cut. This practice is followed commonly by all companies and is mainly
used during national occasions. However, as this has become quite a norm,
none but only the market leader benefits from it. This practice although
works during those occasions, hampers the normal sales all the year round
as consumers only wait for that occasion to come instead of immediate
buying. Furthermore, as all companies offer discount more or less on the
same range the image of brands thriving to be a market challenger from
market follower; becomes more diluted in consumers mind. Therefore, we
came up with strategy that will eliminate the need of providing discount and
will function as an image-building tool.
Gift box on purchase
When the consumer buys furniture, a wooden and carved box will be given.
The box will contain the receipt and warranty card. On the cover of the box,
the logo of the company will be engraved. It will help sustain long-term
relationship.1
1 Appendix 14
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9.3. Direct marketing
In case of Partex, direct marketing should be held in a very limited basis with
an objective to maintain good relation with most preferred consumers aka
the butterflies and to attract the large portion of consumers. The reasons to
choose direct marketing for the above-mentioned conditions are given
below:
Direct marketing counts customer experience and thus make
way for improved relation with the preferred prospects. In other
words, it is the base of customer relationship management.
When communicated directly, consumers perceive extra value of
offerings and in return gives credit to the brand
Saves time and travel of the consumer and provide information
when they are unable to search for it
Catalog marketing in Meena Bazaar, Agora
Will serve the purpose of being an everlasting manual or
guide to which consumers can refer to for future needs for same
category of products
Consumers find time and opportunity of having necessary
information even when they are preoccupied with other shopping
plans
The above-mentioned places are picked due to the common
preference of target market to shop there for grocery items
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10. People
From the SWOT analyses, it is obvious that the salespersons in Partex Gallery
are quite associative and friendly comparing to the competitors. This is really
a strength which can become very valuable if used properly and efficiently.
Partex ensures very friendly and informative approach to highly preferable
consumers who are very likely to buy from them.
At present, Partex do not believe in indulging time to attract customers who
are not ready to buy and quite negative for window-shoppers.
The new strategy will focus on providing organized selling teams in all
showrooms and that process is described below:
10.1. Design based informed salesperson for timber furniture
Better informed about the design and can satisfy the
curiosity of the customer
Can give more attention to individual product
Has more opportunity to demonstrate key features of
a certain category
Can match the key feature to a reason to buy and
provide solution to customers need
To counter the disadvantage the design-based role-play has, the main booth
or transition corners corner will have a few salespersons that will respond
according to customer need and will guide through to the design-based
salesperson.
10.2. Customer need based salesperson set up close relation with every buy
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can react differently to current vs. new, major vs.
regular customers
can make the environment free and friendly for
window shoppers by not bothering with heavy
product jargon thus enhance probability of potential
customers
can refer to category that mostly satisfy the need
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PARTEX GALLERY
11. Physical EvidenceThe overall environment of showrooms and information giving were regarded
as an extra expenditure. Partex tries to create the simulation of real use of
furniture but spending too much time there is regarded as a drift from
furniture. The reason is that some consumers are found talking about the
cushions more than the furniture1. The outside looks of the showrooms are
being kept as simple as possible. However, the showrooms of Partex are
clumsily decorated. The furniture is not kept in a categorized manner. The
gallery itself does not have an appearance of a furniture store.
The new strategies will strengthen our positioning by image building and
channel renovation.
11.1. Renovating showrooms-
Partex showrooms will be renovated. The whole building will have a theme
that reflects the identity of Partex furniture. The color will be a combination
of dark brown and light brown. Tiles will be used so that the color seems
glossy. The color will represent the elegance of wood. The main exterior
pillar will resemble the design of Nature Series, especially the design of
Prince Bed. On exterior wall there will have green color that will resemble the
nature friendliness.
The indoor pillar will be similar to the trunk of a tree. The wall will have
glossy posters that will portray how a bedroom will look if it has Partex
furniture. The posters of how carefully the furniture is made and how Partex
ensures the quality of wood will be depicted. There will be option of lighting
1 SWOT Analysis, Appendix-13
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55
PARTEX GALLERY
so that a customer can watch how the color of furniture changes as the light
changes.2
2 Appendix-10
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PARTEX GALLERY
11.2. Design based categorization
To develop a faster and more efficient purchase process, the placement of
furniture should be planned and it should be executed in a tactful way. As
“Partex Aesthetic” is the focus of Partex Gallery now, this category needs
special care. Sometimes, target customers cannot pick up or choose bed-set
according to their likings due to untidy decoration. As the whole bed-set
carries different designs, design-based categorization, which will also foster
room-based categorization, is included in the new strategy. Thus, other types
of furniture and “Partex Aesthetic” will not confuse consumers and
consumers will have the delight of seeing a complete bedroom setting.
12. Evaluations
The focus of the marketing campaign is to create a brand image of Partex Furniture. The campaign will have five components, Tri-faced Billboards, Newspaper ads, television ads, miniature display and structural renovation. For their time specific and concentrated focus, Tri-Faced and Miniature Display are evaluated separately. Warranty is also evaluated in terms cost and perceived value.
Campaign Component Taka
Newspaper 7,16,200
TV 9,37,500
Structural Renovation 21,00,000
Total 37,53,700
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PARTEX GALLERY
Sales Growth 10,97,00,0001
Return on Marketing Investment 2822.45%
Tri-Faced Billboard
Cost 6, 20,000 tk
Sales Growth 5, 75, 70,000 tk2
Return on marketing Investment9185.48%
Miniature Display
Cost 50,000 tk
Sales Growth 8,91,000 tk
Return on Marketing Investment 1682%
Warranty
Cost 20,510 tk3
Warranty contributes to increased brand value. Which in turns helps to achieve the targeted sales.
1 Appendix-142 Appendix-143 Same as above
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iv
AppendixAppendix-1: Rates of SW analysis
Weakness strength
Partex 6.818181818 6.313432836
Otobi 5.25 6.880597015
Navana 7.15 4.940298507
Hatil 5.684210526 5.029850746
Akhtar 7.055555556 3.089552239
Legacy 6.722222222 3.059701493
Others 5.055555556 1.402985075
Appendix-2: Rates of OT analysis
Threats Opportunities
Partex 7.5 7.8
Otobi 6.714285714 5.7
Navana 7.5 4.8
Hatil 6.571428571 5.4
Akhtar 7.357142857 1.8
Legacy 6.857142857 1
Others 4.428571429 0.777777778
Appendix-3: The GE Matrix (Business Strength)
Sl.
No.
Business Strength Variable Weigh
t
Rating Contributi
on to C.
Rating
1 Exclusive Design 0.11 4 0.44
2 Durability of Products 0.10 5 0.50
3 Relation with foreign timber trade 0.11 5 0.55
4 Own raw material source 0.08 5 0.40
5 Solid wood use minimization 0.09 5 0.45
6 Relationship with advertising agencies 0.08 4 0.32
7 Relationship with press 0.08 4 0.32
8 Consumer friendly sales force 0.03 5 0.15
iv
Appendix9 Spacious Showrooms 0.03 3 0.09
10 Distribution Channel 0.08 3 0.24
11 Useful Website 0.02 4 0.08
12 Multipurpose designed furniture 0.03 4 0.12
13 Categorization of products in the
showrooms
0.03 2 0.06
14 Continuity & concentration of
advertisements
0.08 2 0.16
15 Demonstrative Catalogues 0.02 3 0.06
16 Home delivery service 0.03 2 0.06
Company Rating 4.04
Appendix-4: The GE Matrix (Market Attractiveness)
Sl.
No.
Market Attractiveness Variable Weight Rating Comtributi
on to C.
Rating
1 Environmental awareness .03 3 0.09
2 Brand value .10 4 0.40
3 Approval of artists .07 2 0.14
4 Traditional craftsmanship .07 4 0.28
5 Creative mechanized timber
furniture
.05 4 0.20
6 Attractive design .20 4 0.80
7 Durability .15 3 0.45
8 Helpful sales representative .06 4 0.24
9 Available outlets .10 3 0.30
10 Quick delivery .07 2 0.14
11 Persuasive advertising .10 2 0.20
Rating 3.24
Furniture Industry
Particle Board Based Wood Based / Veneered Boards
- Plain Particle Board- Vinyl Board- Timber Framed Board- Plytex Ply wood- Lacquered- Flush Door- Aperture Door- Louvre Door- Honey Combed Door
- Burma Teak- White Seder - Champ - Chapalish- Garjon- Mehogony- Other commercial Veneer
COMPETITORS (particle market):
Akiz ParticlesStar Particle Board Mills LimitedOTOBIForeign imported furniture.
COMPETITORS (Wood market):
HATILItalian Furniture (imported)PARTEX GroupG-Mart
iv
AppendixAppendix-5: The Furniture Industry
iv
AppendixAppendix 6: Product line of ‘Partex Aesthetic’
Partex Aesthetic
1. Royal Series 1. Prince Bedroom Set
2. Prince Bedroom Set 2
3. Princess Ragini Bedroom
Set
4. Princess-2
5. Mughal Bedroom Set
2. Nature series 6. Evening Bedroom Set
7. Moon Bedroom Set
8. Morning Bell Series
9. Garden Bedroom Set
10. Eagle Bedroom Set
11. Fish Bedroom Set
12. Flying Geese Series
13. Forest Bedroom Set
14. Swan Bedroom Set
15. Paddy Field Bedroom Set
16. Nile Bedroom Set
17. Burning leaves Bedroom
Set
18. Dinosaur Bedroom Set
19. Bamboo Bedroom Set
20. Penguin Bedroom Set
iv
Appendix3. Folk series 21. Nokshi Bedroom Set
22. Heritage Bedroom Set
23. Anchor Bedroom Set
24. Horn Bedroom Set
25. Wheel Bedroom Set
iv
AppendixAppendix 7: Characteristics of wood used in manufacturing
Hard Wood Specification Imported Teak Champ Teak
Density, Kg/m3 560-640 610
Modulus of rupture (n/mm2) 100 65
Shrinkage % radial 105 3.2
Tangential 2.5 5.2
Moisture % 10-14 10-14
Appendix-8: Tri-faced sample
iv
Appendix
Face 1: Almirah
Face 2: Dressing Table
iv
Appendix
Face 3: Bed
iv
AppendixAppendix-9: Newspaper ad sample
Episode 1: How the ad will Look on the paper
iv
Appendix
Episode 2
Episode 3
iv
AppendixAppendix-10:Unweighted scoring on a scale of 1-5
Prothom Alo Jugantor Somokal Daily Star
Total circular 5 2 4 3
Editorial
Quality
5 4 4 5
Attention
creating
5 2 3 5
Targets
media habit
fulfilling
5 3 4 5
Appendix-11: Unweighted scoring 1-5
Ch.I Ch.1 NTV ATN Bangl
a
vision
ETV RTV BTV
Targets
entertainmen
t
4 5 4 4 4 4 4 3
Editorial
Quality
4 4 4 5 3 5 2 2
Ad slot 4 3 4 5 3 4 3 4
Credibility in
info given
3 3 3 3 3 3 3 3
Reach to
target
3 3 4 4 3 3 3 2
iv
AppendixAppendix-12: The showroom pictures
Through Artist's eyes: Renovated Farmgate Gallery
Through Artist's eyes: Renovation of Mirpur showroom
iv
AppendixAppendix-13: The SWOT analysis
Strengths
Variables Partex Otobi Navana Hatil Akhtar Legacy Other
1st movers advantage 9 2 0 10 7 8 6
Comfort in using furnitures 6 9 7 8 4 4 5
Attractiveness of the design 8 7 3 9 6 10 7
Accommodation of the design 8 10 9 9 7 6 10
Multipurpose fulfilling design 6 10 6 8 5 4 6
User-friendliness of the design 8 9 8 8 6 5 2
Design ensures health safety 10 6 6 6 9 9 7
Durability of products 10 5 5 6 8 9 4
Consistent quality 10 9 8 6 4 10 1
Attractive packaging 5 8 7 8 6 5 1
Descriptive packaging 5 7 6 8 4 2 0
Package as recognition of brand 2 9 8 9 2 2 2
Safeness of packaging 0 5 0 5 0 0 0
Environment-friendly packaging materials 9 9 9 9 7 7 0
Label design in accordance with PDT design 5 10 9 8 5 4 0
Label beautifying product 3 6 4 6 3 0 0
Partnership with outside distribution channels 8 10 9 5 0 2 0
Frequency of Buyer-seller interaction 9 10 8 7 6 5 3
Customer-centered sales reps 6 4 5 4 3 3 2
Customer helpline 0 2 0 0 0 0 0
Customer hot line 0 1 0 0 0 0 0
Friendliness of sales reps 8 7 5 6 5 6 2
sales assistance in giving info to customers 8 7 6 5 4 6 7
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AppendixCompliance with consumer rights law 7 8 6 7 4 3 2
Compliance with environment law 9 8 8 7 6 5 2
Compliance with safety law 8 9 8 8 6 5 1
Minimization of wood use 10 9 9 8 4 3 2
Relation with foreign timber traders 10 6 6 8 6 4 0
Relation with ad agencies 10 8 9 5 3 2 0
Fast decision making 8 9 7 7 2 3 8
Spaciousness of showrooms 9 10 8 7 6 3 1
PDT-type categorization in showrooms 8 10 5 7 5 2 1
Room-based categorization 6 9 6 7 4 5 0
Design-based categorization 3 9 4 7 1 6 0
Data transaction between stores 6 8 6 3 2 2 0
Selling within stores 8 9 6 2 2 2 0
giving infomercials 10 10 10 8 5 3 0
Continuity of ads 6 8 3 2 0 0 0
Concentration of ads 5 7 2 2 0 0 0
Acceptability of e-cash 10 10 10 10 10 10 0
Acceptability of check money 10 10 10 10 10 10 6
Folding capability of the products 5 10 10 9 1 1 0
Persuasive ads 5 9 4 1 1 1 0
Ads reinforcing buyers purchase decision 6 9 7 3 2 2 0
Decisive ads 6 8 6 3 1 1 0
Vivid demonstration in tv ads 3 8 0 0 0 0 0
Dramatical portrayal in ads 4 9 0 0 0 0 0
Illustrative of printed ads 8 8 5 2 0 0 0Providing PDT to entertainment media to get publicity 1 1 0 0 0 0 0
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AppendixIn-store demonstration 8 0 0 10 0 0 0
Art & craft competition 0 9 0 9 0 0 0
Festivity orientation 10 10 10 10 10 8 0
Ability to create own RM 10 5 0 0 0 0 0
Charity show organizing 1 1 0 0 0 0 0
Favorable relation with press 10 6 6 0 0 0 0
Relation with legislators 10 6 0 0 0 0 0
Appreciable logo 3 8 2 7 2 6 2
Informative catalogs 6 9 6 2 2 2 2
Telemarketing 8 6 0 0 0 0 0
Placement of kiosk marketing 0 0 0 0 0 0 0
Eye catching billboards 2 4 0 1 0 0 0
Rich content of web page 7 0 0 10 0 0 0
Sites ability to make interaction among users 5 0 5 0 0 0 0
Easy communication by web page 3 0 3 0 0 0 0
Partnership with other websites 2 0 0 0 0 0 0Salesperson as a solution vendor to customers 10 10 10 0 8 7 0
Fast home delivery 4 6 6 5 3 2 2
Average 6.31 6.88 4.94 5.03 3.09 3.06 1.40
Weakness
Variables Partex Otobi Navana Hatil Akhtar Legacy other
De-motivating corporate ladder 8 6 9 10 10 10 10
Hasty decision making 7 6 9 10 10 10 10
Unavailability of previous data 9 2 4 3 10 10 10
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AppendixDelay in planning 7 3 8 9 3 9 9
Owner’s intervention 4 2 9 9 9 9 0Inconsistencyof corporate culture 9 4 9 9 9 9 9Communication gap within management levels 9 7 10
Rigid, old structure 5
Centralization 5 5 9 9 10 10 10
Unfeasible customer base 2 2 2 2 2 2 2
Use of extra brand extension 10 5 6 5
Sales promotion resulting in quality delusion 10 10 10 6 6 6 0
Sales promo increasing price sensitivity 10 10 10 6 6 0 0
Unsuitable location of showrooms 8 6 9 5 10 8 0
Absence of trade allowances 0 0 0 0 10 10 10
Training and development 5 8 0 0 0 0 0
Package vulnerability 8 5 9 7 10 10 10
Weak demand forecasting 8 9 9 5 5 5 0
Intra-group disagreement 8
shortage of skilled craftsman 1 2 2 2 4 1 0
Within store rivalry in making sales 8 9 9 4 3 2 1
Shortage of state-of-the-art machines 9 4 10 7 10 10 10
Average 6.82 5.25 7.15 5.68 7.06 6.72 5.06
Opportunities
Variables Partex Otobi Navana Hatil Akhtar Legacy other
Environmental awareness 10 9 8 8 3 2 1
15% demand increase 7 9 6 9 2 2 2
iv
AppendixGrowth of brand furniture 9 10 9 10 2 2
Government facilities 2 2 2 2 2 2 2
Intro of panel based furniture 10 5 2 0 0 0 0
Approval of famous artists 9 2 2 2 2 2 2
Approval of environmentalists 10 9 9 8 0 0 0
Appreciation of folk crafts 10 0 0 5 7 0 0
Export opportunities 9 9 9 9 0 0 0
Globalization 2 2 1 1 0 0 0
Average 7.80 5.70 4.80 5.40 1.80 1.00 0.78
Threats
Variables Partex Otobi Navana Hatil Akhtar Legacy Other
Dependence on outside supply 3 5 8 9 7 7 10
Maturity of timber furniture 9 5 5 5 9 9 0
High exit barrier 8 10 10 10 10 10 10
Oligopoly market 8 8 8 8 8 8 10
Competitors price leadership 10 10 10 8 10 10 5
Lack of import barriers 8 8 8 7 7 7 10
Rise of plastic furniture 9 5 5 5 9 9 0
Demand of wrought iron furniture 2 2 3 3 4 5 5
Consumers low attention span 8 8 8 7 5 5 0
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AppendixConsumers avoidance to ads 8 9 10 10 10 10 0Unexposureable media habit of the consumers 10 10 10 8 8 7 0
Standard are set by mkt leaders 10 2 10 2 6 2 10
Competition clutter in furniture industry 10 10 8 8 8 5 0
Free market to new arrivals 2 2 2 2 2 2 2
Average 7.50 6.71 7.50 6.57 7.36 6.86 4.43
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AppendixAppendix-14: Evalution Details
Cost of the prepared marketing campaign:
Campaign
Component
Duratio
n
Possible Reach Cost
(taka)Newspaper 3 Day 24,00,000apprx.1 7,16,2002
TV 1week 46,57,920apprx.3 9,37,5004
Structural
Renovation
10
years
41,85,432apprx5 21,00,00
0Total 1,12,43,352apprx. 37,53,70
0
Exposed target segment among total reach (1,12,43,352*1.3%6) = 1,46,164
Actual purchase maker7 6.15%8 which is 1,46,164*6.15%= 8,990
On average sales of 30,000taka gives total sales of 8,990*30000 = 26,97,00,000tk
1 Circulation of Daily Prothom Alo2 Price of the newspaper ads, for 24column-inch first/last page: (12000|9600)*24*3 total- 8,64,000|691200 tk + design 25,000tk total- 8,89,000|7,16,200tk. Last page of Prothom Alo is selected because to go to the entertainment page directly, you have to go through the last page. Last page is thus more effective on our target segment, Urban educated middle class women. 3 Number of households with TV(‘0000s)= 2485Rate of households having TV= 3.84%Total reach=2485* 3.84% = 95.424(‘0000s)Total population=12130Population watching TV = 95.424*12130/2485= 465.792. (Bangladesh Statistical Yearbook 2006 page 57)4 Price of Advertising:
Making the Ad: 1,50,000On NTV:
1 fixed before programms 10,500*1- 10,500tk2 during the mid break of the program 12,000*2- 24,000tk2 random 9,000*2- 18,000tk
On ATN: 1 fixed before programms 12,000*1- 12,000tk2 during the mid break of the program 13,500*2- 27,000tk2 random 10,500*2- 21,000tk
Total 1,12,500tk 7,87,500tk9,37,500
5 Statistical Yearbook 2001 Community Series Dhaka 2001, Statistical yearbook Bangladesh 20016 Target segment percentage for Bangladesh = target segment population/Bangladesh population as per 2001 census = 1580328/124355263 = 1.3%apprx.7 People who will actually buy.8 From Bangladesh Furniture Fair 50,000 people visited the fair, made purchase from Partex. Target reach 50000*1.3%=650. Actual Purchase was 40. Actual Purchase Maker Percentage 40/650=6.15%
iv
AppendixSales Growth 26,97,00,000-16,00,00,000 = 10,97,00,000tk
Return on Marketing Investment (10,97,00,000-37,53,700)/37,53,700 = 2822.45%
Miniature Display at Nondon Park
Reach 365*100 = 36,500
Target Segment Reach= 36,500*1.3% = 474.5
Actual purchases 474.5*6.15% = 30
10% Concession for Visitors at Nandon
Sales = 30*30,000-30*3000*10%=8,91,000tk
Cost : Miniature making = 15,000
Publicity =35,000
Total = 50,000tk
No cost will incur for the placement, as it will be an agreement with
Nondon.
Return on Marketing Investment = (8,91,000-50,000)/50,000 = 1682%
Tri-faced Billboard
Number of Bill- Board: 4
Position: Kolabagan at Mirpur Road, Gulshan Circle, in front of The
Sheraton Hotel and at Sonargaon crossing.
Time: During Ramadan
Duration : 1 month
Cost : per bill-board
iv
AppendixRent (1500 per sq. feet, 10’*7’) 1,05,000
Tax 50,000
Total 1,55,000tk
For 4 bill boards, the total cost : 1, 55,000*4 = 6, 20,000
Reach:
24, 00,000apprx.1
Target segment reach 24, 00,000*1.3% = 31,200
Actual purchases 31,200*6.15% = 1919
Sales 1,919*30,000 = 5, 75, 70,000 tk
Return on Marketing investment = (5, 75, 70,000-6, 20,000)/ 6, 20,000
= 9185.48%
Warranty
0.5% furniture to repair 32,81,61,000*0.5% = 16,40,805
tk
500 tk repair cost per 40.000 tk furniture amounts to
16,40,805*500*40,000 = 20510
1 Commuters on the roads of DhakaForm Community Series, Dhaka 2006, page- 65,78, 100
iv
AppendixAppendix 15: Gift Box
iv
AppendixApproximate Cost per Box: 350 tk