A PROJECT REPORT ON

CAUSES OF LOW MARKET DEMAND OF RUPALI BANK LTD. AND MEASURES TO CHANGE THIS SITUATION

SUBMITTED TO TARAFDER MD. MEHEDI AL- MASUD SENIOR LECTURER DEPARTMENT OF BUSINESS ADMINSTRATION THE MILLENIUM UNIVERSITY, DHAKA.

SUBMITTED BY
RUPOM DAS -EMB00012 Rajib Das EMB0001 MObarak Hossain Chowdhury- EMB000 Washington Dey- EMB000 4 Al-Jobaier Ahmed EMB0005 DEPARTMENT OF BUSINESS ADMINSTRATION

THE MILLENIUM UNIVERSITY, DHAKA

EMBA
DATE OF SUBMISSION- 26 JANUARY,2013
TH

Letter Of Submission
January, 2013

The Hon. Mr. Tarafder Mohammad Mehedi Al- Masud Senior Lecturer The Millenium University Dhaka, Bangladesh.

Dear Sir, We Take pleasure, in accordance the class project of Business Communication, submitting the class project on the CAUSES OF LOW MARKET DEMAND OF RUPALI BANK LTD. AND MEASURES TO CHANGE THIS SITUATION Submitted by the EMBA students, 20th batch.

Yours sincerely, RUPOM DAS -EMB00012 Rajib Das EMB0001 MObarak Hossain Chowdhury- EMB000 Washington Dey- EMB000 4 Al-Jobaier Ahmed EMB0005

ACKNOWLEDGEMENT
We take this opportunity to express my profound gratitude and deep regards to my guide ( Mr. Tarafder Mohammad Mehedi Al- Masud ) for his exemplary guidance, monitoring and constant encouragement throughout the course of this report. The blessing, help and guidance given by him time to time shall carry us a long way in the journey of life on which we are about to embark. We also take this opportunity to express a deep sense of gratitude to Mr. Abdul Halim, FAVP, First Security Islami Bank, for his cordial support, valuable information and guidance, which helped us in completing this task through various stages. We are obliged to staff members of ( Rupali Bank Ltd. ), for the valuable information provided by them in their respective fields. We are grateful for their cooperation during the period of my assignment. Lastly, we thank almighty, Our parents, and friends for their constant encouragement without which this assignment would not be possible. We, the Group members Rupam Das. Rajib Das. Mobarak Ahmed Chowdhury. WashingTon Dey Al Jobaier Ahmed

Dedication

We thanks to almighty, Our parents and friends for their constant encouragement without which this assignment would not be possible.

S/L No. 1 2 3 4 5 6 7 8 9 10 11 12

Particular Introduction Company Profile Objectives of the project Marketing Mix of Rupali Bank Research Methodology Data Analysis & Findings Suggestions Conclusion Scope Bibliography Questionnaires Annexure

Page No.

Introduction

Creating high market demand of their own product is the main goal of an organization. An organization without market demand of product/ service is as like as calling war without defense. So , there is no doubt to say that, Causes Of low Market Demand And Measures To Change The Situation is very important for any business organization and studying this course is very essential for business related students. I have been assigned to make a report on the topic Causes of low market demand of Rupali Bank Ltd. and measures to change the situation The objective of the study is to explore and analyze how various measures to change low market demand has played role in achieving the organizational success in Rupali Bank. But in preparing the report we had to face different problems or limitations. Time was not sufficient to prepare a fruitful report on such a topic, as the depth of the topic is so large. Moreover it was difficult to study on the causes of low market demand of Rupali Bank Ltd. and measures to change the situation in the organization as some required data and information were not delivered by the management and where is we are employee of another bank. So, we had to do this besides job of our own. But, we were enough cordial to do this work.

As methodology We have applied both primary and secondary sources to collect necessary data and information. We took interview of different level of Management Stake holder, employee, Customer of Dhaka city. We also studied the annual report and some other manuals to serve our purpose of achieving data and information. Our effort would be successful if the report can meet the expectation of our course teacher.

CORPORATE PROFILE

Name of the company Chairman Managing Director Company Secretary Legal Status

: : : : :

Genesis

Date of Incorporation Registered Office Authorized Capital Paid-up Capital Reserve & Retained Earnings Credit Rating by CRAB(2009)

: : : : : : : : : : : : :

Rupali Bank Limited Ahmed Al-Kabir, PhD. M. FaridUddin Md. ShahjahanKhandaker Public Limited Company Rupali Bank Limited has been incorporated on 14 December 1986 under the Companies Act 1913 after taking over and acquiring as a going concern the undertaking and businesses of Rupali Bank with all of its assets, liabilities, benefits, rights, powers, authorities, privileges, borrowings and obligations. Rupali Bank, which initially emerged as a Nationalized Commercial Bank (NCB) under the Bangladesh Banks (Nationalization) Order, 1972 (Presidents Order No. 26 of 1972), has now become a state-owned commercial bank (SCB) through a vendors agreement dated 15 November 2007. 14 December 1986 34, Dilkusha Commercial Area, Dhaka-1000, Bangladesh Tk. 700 Crore Tk. 125 Crore Tk. 420 Crore Long Term - BB3 Short Term-ST3 National Support- AAA

Listing with DSE Listing with CSE Commencement of Trading with DSE & CSE

19-08-1987 10-10-1995

23-12-1986

VAT Registration TIN Certificate

: : : :

9011039307 177-200-0021/LTU/Dhaka AHMAD & AKHTAR, Chartered Accountants, BCIC Bhaban (3rd Floor) 30-31 Dilkusha C/A, Dhaka-1000, Bangladesh. & G. KIBRIA & CO., Chartered Accountants, ShadharanBimaBhaban (6thFloor), 24-25 Dilkusha C/A, Dhaka-1000, Bangladesh. S.M AtikurRahman, Barister-at-Law, Suite- D (1st Floor), 105/A Kakrail Road, Dhaka, Bangladesh. K.M HASAN & CO. Chartered Accountants, Hometown Apartment (8th & 9th Floor), 87, New Eskarton Road, Dhaka-1000, Bangladesh. 4503 504 01 (Rupali Investment Limited) +88-02-9551624-25, +88-02-9551525, +88-02-9551840, +88-02-9552184, +88-02-9552214, +88-02-9552746, +88-02-955093-4 +88-02-9564148, +88-02-9552671 RUPBBDDH www.rupalibank.org info@rupalibank.org, it@rupalibank.org

Auditors

: Legal Advisor : : Tax Consultant : : : : : : : : Phone-PABX : : : :

Number of Employees Number of Branches Number of Subsidiary Companies

Fax SWIFT BIC Website E-mail

OBJECTIVES OF THE PROJECT

The main objectives of the report were:

To find out causes of low market demand of Rupali Bank Ltd. And also study about the measures to change this situation.

Specific Objectives:
To increase awareness. Find out the cause of market fall of a bank.
This report also will give a idea about the banking situation and Condition

Marketing Mix
Deposits:
SL No. Types of Deposit Interest Rate per annum 4.50% 3.50% 7.50% 7.75% 8.00% 8.50% 6.00% 6.50%

1. 2. 3.

4. 5.

Savings Deposit Short Notice Deposit Time Deposits a) 3 months & above but less than 6 months b) 6 months & above but less than 1 year c) 1 year & above but less than 2 years d) 2 years & above but less than 3 years Deposit From foreign Remitance Rupali Bank Deposit Pension-Scheme 2

General Credit Line and Programme

Rupali Bank Ltd. extends credit facility to almost every sector of the country's economic
activities.

Main focus of Rupali Bank Credit programme is on financing trade and commerce, business and
industry having productive purpose.

Credit facilities are also offered to international trade and business, export and import. Credit Programme of the Bank also covers development of rural economic activities like
agriculture and livestock, dairy and poultry, fishing and hatchery etc.

Loan is provided to thrust sectors declared by the government at a concessional terms. Lending programmes are operated as per guideline of Bangladesh Bank (the central bank of the
country) through an effective lending policy and procedure of the Bank. viable sectors.

Lending policy of the Bank ensures quick processing, sanctioning and disbursement of loan in all

Rupali Bank Ltd. provides prompt and excellent other Banking Services like issuing
Demand Draft Pay Order Telegraphic Transfer Mail Transfer Call Deposit Transfer of Fund on standing instruction arrangement

Computerized Banking Service

To modernize banking operation and ensure prompt services, major branches of the bank have already been computerized. Other important branches are in the process of computerization.

Rural Credit program

Bangladesh is mainly a land of agriculture. A vast majority of our people live in the rural areas and their main source of income is agriculture and agro-business. To produce agricultural output, promote agro-business, facilitate agro-based services, create and sustain employment opportunities, Rupali Bank Ltd. is disbursing agricultural loan/rural credit through its 401 branches all over the country.

Sectors of Financing
Rupali Bank Ltd. extends credit to the following rural sectors: 1. 2. 3. 4. 5. 6. Fishery. Livestock. Shrimp Culture. Poverty Alleviation Programme. Micro-credit. Agricultural product processing and marketing.

Investment banking
Investment Portfolio:: Rupali Bank Ltd. presently roaming in the following areas of investment:. i) ii) iii) iv) v) Bangladesh Government Securities/Bonds. Treasury Bills. Grameen Bank Bonds. Debentures of government and semi-government organizations & Public Limited Companies. Shares of listed companies.

INDUSTRIAL FINANCING

In order to support the development of industrial sector of the country through active participation of private and direct foreign investment, Rupali bank Ltd. has taken appropriate programmes as per Industrial Policy of the Government. The loan portfolio of the Bank includes sizeable investment of fund towards development of thrust industrial sectors like Textile, Jute, Leather, Leather goods, Frozen and semi cooked Shrimps, Footwear, Knit Garments and other small and medium enterprises.

Rupali Bank Ltd. is participating in joint venture finance and consortium finance for setting up large-scale projects. The Bank lays special emphasis on agro-based and IT related industries.

Utility Services
Rupali Bank Ltd. offers some special services to customers in addition to its normal banking operation. Collection of various utility bills is one of them. Under this service, the Bank benefited Customer by collecting their various utility bills like Telephone bill, Water & Sewerage bill, Electricity bill etc free of charges.

Collection of Bills
1.Telephone bill of Bangladesh Telephone & Telegraph Board (BTTB). 2.Water & Sewerage bill of Water and Sewerage Authority (WASA). 3.Electricity bill of Power Development Board (PDB), Rural Electrification Board (REB) etc.

RESEARCH METHODOLOGY
Marketing Research
Marketing research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company .Market research is a research carried out in a particular market. The study is done with a set objective may be for the reason to analyze consumer for the introduction of new product, study of distribution channels or for that reason, any problem in the field of marketing. The market research is complete only when proper analysis is carried out with the help of relevant information and the solutions fulfilling the objectives is identified. Important steps in market research are as follows: 1. Define the problem and research objectives. 2. Developing the research plan. a. Data source-primary and secondary data. b. Research approach 1. Observation 2. Focus group 3. Survey 4. Experiments

c. Sampling plan Sampling units Sample size Sampling procedure

d. Research Instruments *Questionnaire * Interview e. Contact methods 1. Telephone Interview 2. Personal Interview f. Collect the information g. Analyze the information h. Present the findings

Research Approaches:

There are five ways through which primary data can be collected .They are as follows: 1. 2. 3. 4. 5. Observation Research Focus Group Research Survey Research Behavioral Data Experimental Research

Out of these five methods, the survey research is selected as our research requirement descriptive report.

Research Instruments
Out of the various instruments available for research, questionnaires are most frequently used.

A questionnaire consists of set of questions presented to respondents. Because of its flexibility, the questionnaire is by far the most common instruments used to collect primary data. Questionnaire need to be carefully developed, tested and debugged before they are administered on a large scale.

The questionnaires are designed by considering the conveniences of the respondents. Mostly the objective types of question are planned.

Contact Methods
There are various ways of contacting such as Mail, Telephone, Personal or Online. Personal contact method has been selected as it is descriptive type of research.

Sample Plan
A sample design has a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample.

The sample design method used in this research is Non-Probability sampling. Non-Probability sampling is done when one does not have a list of respondents to randomly select from, as in probability sampling.

The method of non probability sampling used here is Convenience sampling. Convenience sampling is generic term that covers a wide variety of ad hoc procedures for selecting respondents. Convenience sampling means that the sampling units are accessible, convenient and easy to measure, co-operative and articulate.

Data Collection
While deciding about the method of data collection to be used for the study researcher should keep two things in mind via- Primary and Secondary.

DATA ANALYSIS & FINDINGS

Market Share:

Reasons for being market looser

Y-Values
4 3.5 3 2.5 2 1.5 1 0.5 0 0 0.5 1 1.5 2 2.5 3 3.5 Y-Values

Marketing Policy and Credit Facilities

Brand Image
10%

15%

40%

Better Service

35%

Quality

Awareness of General Customers about Rupali Bank Ltd.

Awareness Status Yes No Total Number of Respondents 45 55 100

No
55%

45%

Yes

Without having enough advertisements in various Medias upon meeting a total number of 100 general customers, it was found that 55% are not aware of Rupali Bank Ltd, and remaining 45% are aware of it.

Awareness of Share Holder about Rupali bank Ltd.

Number of Responden ts

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Yes No Total

75 25 100

SUGGESTIONS
In Bangladesh, there is an increase bank, as well as a great scope of export of fund. But the Rupali Bank Ltd. is still in its infancy stage, which gives it a great scope for expansion, if proper advertisement, promotion and awareness are created. Here my suggestions are provided for increasing market demand. These are given as below:-

PRODUCTS QUALITY UP-GRADATION:

As we know any product is sold on its quality in this competitive market. It was found in my survey that end users, customers and shareholders comments were about Rupali Bank quality is moderate. But moderate quality is not satisfactory in this competitive money market. So this is high time to take proper initiative about quality up-gradation of Rupali Bank Ltd. by top management of the company.

ATTRACTIVE DIVIDENT STRUCTURE:

Since share holder play an important role in money market and they are generally influenced on attractive divident structure, so companys divident structure should be that much attractive to customer as well as share holder. On the other hand Share holder, customers naturally look for good dividend structure.

WELL STRUCTURED ONLINE FACILITIES:

Without having well structured ONLINE facility, no bank can provide its highest service to customer amd share holders. as well as online charges and quick service to banking quickly and timely. So there should be various online quick facilities need whenever it is required.

SKILLED MANPOWER:

For achieving organizational goal within budgeted time, there are no alternatives but skilled human resources. So company should be careful about it. Company should appoint qualified and experienced manpower and they should be properly trained up. The marketing executives should have enough knowledge about paints and they should have that much ability to handle different types of Customers, share holder and stake holders.

PROPER ADVERTISEMENTS:
Proper advertisements help any product to be created a brand. Though Rupali Bank Ltd. has a great brand image, but Rupali Bank has no advertisement. Thats why most of the general customers are not aware of Rupali Bank . Proper advertisements should be given on T.V, Newspapers, Magazines, and Shop Signboard mentioning all the features of the products for increasing awareness of Rupali Bank Ltd.

REGULAR CUSTOMER AND SHARE HOLDER MEET:

Companys marketing executives should be regularly sent to dealers and meet for fulfillment of requirement of dealers timely. They should always keep in tough for timely supply information.

EXPANDTION OF MARKET IN ABROAD:

Todays global market is all over the world if company can maintain its product quality standardization. There is a great scope for standard paints in various countries of world market. So company should take proper initiative and expand its business to export its product by maintaining products standard.

TECHNICAL SERVICES:
Now a days customers want technical services from company. So company should have that much skilled technician to support the customers effectively whenever it is asked by them.

ATTRACTIVE TOKEN MONEY FOR PAINTERS:

It was observed that normally Painters suggest purchasing any particular brand to end users or house owners for attractive amount of token money and they play an important role and influence to customers to choice a brand. So company should put attractive amount of token money for painters in order to increase the sales.

LOW DISTANCE FROM FACTORY TO MARKETING OFFICE:

It was observed that there is a long distance between production factory and marketing & sales office. Thats why marketing and sales office doesnt get the required amount of products timely. So company can establish a new plant or factory near by Dhaka marketing & sales office, or there should be always sufficient stock at Dhaka office in store room and good communication facilities with factory to reduce products receiving time from factory.

CHANNEL OF DISTRIBUTION:
Company should concentrate on its channel of distribution for supplying its product to each corner of Bangladesh through various intermediaries like dealers, whole sellers and retailers. Company should have proper plan for it and ensure their channel of distribution is effective to deliver its products timely and quickly to each and every corner of Bangladesh.

QUICK AND TIMELY DELIVERY:

Todays world is so fast. So Company should ensure quick and timely delivery of its products to any corner of Bangladesh whenever order is placed. It was found in my survey that presently there are a lot of objections about late products delivery from dealers side.

MARKET SEGMENTATION:
It was observed that Rupali Bank Ltd. is running its business in small segment. So, Company should concentrate on new markets and increase its market segmentation covering all over the Bangladesh.

MORE DISCOUNTS ON TARGET ACHIEVEMENT:

Company should tie up with big portion of customers all over the country and place them a target yearly or monthly influencing by more discount or commission structure.

REWARD FOR MARKETING EXECUTIVES:

Marketing manager should fix a specific deposit target to each marketing executives. For the achievement of sales target they should be rewarded by promotion, salary increase and various incentives and gifts.

OFFER FOR CUSTOMERS:

Company can now and then offer various gifts against certain purchase of share which is so much effective in increasing the market volume.

VARIOUS GIFTS FOR CUSTOMERS:

Company should distribute various gifts like Umbrella, T- shirts, Wall watch, calender to customers by organizing workshop or personal contact for building a good relation with them permanently.

GIFTS AND VISIT TOURS OFFER FOR SHARE HOLDER:

For pushing sales and giving more concentration on our brand company should declare various gifts and visit tour to dealers against certain sale which is so effective in increasing the total sales volume and market share.

PRODUCT BONUS:
Company can give more products bonus on which products sale is less and less product bonus on which sale is high depending on market situation.

ATTRACTIVE SALARY STRUCTURE AND OTHER BENEFITS FOR EMPLOYEES:

Employees job satisfaction can be obtained by attractive salary structure and other benefits which is helpful to be devoted them into their daily works. So company should follow attractive salary structure and other benefits to be devoted them in works according to their performance, skill and qualification.

PROMOTIONAL ACTIVITIES:
Various promotional activities like Visit and Sales Call, Entry at Project Level- introductory letter, price offer, sampling etc Merchandizing, Incentives, Bonus, Gifts, Campaign, Participation- tender, fair, Advertisement, Publicity, Special Schemes, Seasonal Schemes, Family and Friends, Conference, Personal Meeting, Target and Rewards should be followed by company now and then whenever and wherever it is required.

CONCLUSION

BANK has a very good potential in coming years. As there is an increase in share price of competitor company, bank in Bangladesh as well as a great scope of collecting deposit from market. If more awareness is created among customer and share holder about Rupali Bank Ltd. there will be a great scope for Rupali Bank in money market.

From the survey it has been observed that , share holder purchases share for better rate . Today customer wants everything in bank from quality to good .

Therefore the company should concentrate more on keeping quality, technical services, and the smooth flow of profit.

BIBLIOGRAPHY

Ruapli Bank Financial Reports

Stock exchange data

Web Sites

: www.rupalibank.org

Reports

1. Annual Report of rupali Bank 2000-2012

QUESTIONNAIRES

Questionnaires for Share Holder

What bank share do you purchasel most? a) Rupali b) janata c) First Security d) Prime f) Others (Please specify)................................................

e) National

Why do you Purchase this brand most? a) More Profit b) Better service c) Upper price d) Gifts and other benefits e) More credit facility f) All of the above g) Others (Please specify)

Do you pursue Customers to purchase a particular brand? a) Always b) Occasionally c) Often d) Never

What brand do you push more?

(Please specify)................................................

Why do you push this brand more? a) More Profit b) Better service c) Lower price d) Gifts and other benefits e) More credit facility f) All of the above g) Others (Please specify) .....................................................

Do you purchase Rupali Bank Share ?

a) Yes

b) No

If yes, what things pursue you more to sell Rupali Bank ? a) Attractive profit b) Lower price c) Gifts and incentives d) Credit facility e) Devident facilities f) Good relation with Customer and share holder g) Others (please specify) .........................................................................

If no, why? a) Higher price

b) Lower demand

c) Lower profit d) Bad service

e) Lack of available Share

f) low brand image

g) Others (please specify) .........................................................................................

What is your view about quality of Rupali Bank ? a) Very excellent b) Excellent c) Good d) Moderate

e) Bad

f) Very bad

How Navana can increase its market demand? a) Advertisement b) Upgrading Quality price e) Providing more gifts and incentives

c) Promoting service

d) Decreasing

What type of value Rupali Bank should add to its products and services? a) Creating Demand b) Providing technical service to the customers c) Establishing a self money market d) Establishing depot at division level e) Increasing product line f) All of the above g) Others (please specify)

What type of Promotional activity Navana should take? a) TV advertisement b) Shop sign c) Banner d) customer or share holder workshop e) Gifts and Incentives f) Campaign g)profit bonus h) All of the above i) Others (please specify) ..........................................................................................................................................

ANNEXURE
Dhaka Divisional B.B. Avenue Naya Paltan Corp. Fakira Pool Bazar Mailbag chowpara Hat khola Rampura New Market Malibag Rajar Bag Mugdha Kaptan Bazar Nowabpur Road North south Road Bangshal Road Mog Bazar Bangla Bazar Bandura Chawk bazaar Gandaria Dhaka Ladies Elephent Road Hatir poll Posto gola Baira Bazar Dhaka Cantonment Corp Jhitka Bazar Kushura Mohammadpur Mohammadpur Ladies Mirpur Moha khali Manik gonj Shyamoly Savar Cantonment Savar Bus Stand Saturia Tongi Bhulta b.b. Road R.K.Das road0 Fotullah Uttora Model Town Tanbazar Norshingdi Munshigonj Mirkadim Bendopur Lowhojong Kanai Nagar Babur Hat