This action might not be possible to undo. Are you sure you want to continue?
Md. Hamidul Islam Course instructor of marketing management SEC: I
4 ps of nasir Glass
N0 1 2 3 4 5 STUDENT NAME HOSSAIN MD. SHAHADATH MONIRUZZAMAN MOHAMMAD HOQUE SHAHED IBNAY FAZLUL SHAWON MD. MONIRUZZMAN FARABI MD. RAIHAN KABIR STUDENT ID 07-09602-3 07-08993-2 07-09590-3 07-09616-3 07-09610-3
Date of Submission: July 30, 2009.
Letter of Transmittal
June 30, 2009 To, Hamidul Islam, Faculty of Business Administration American International University-Bangladesh (AIUB) Sub: Submission of Project Report.
Dear sir, THIS IS A GREAT PLEASURE FOR US TO SUBMIT THE PROJECT REPORT, WHICH IS A PARTIAL REQUIREMENT FOR THE DEGREE OF BBA. WE HAVE BEEN ASSIGNED TO DO PROJECT REPORT ON HUMAN RESOURCE MANAGEMENT COURSE. OUR ASSIGNED TOPIC IS “HR ACTIVITIES IN BANGLADESH PROSPECT ”. OUR ANALYSIS IS BASED ON WHAT WE HAVE LEARNED FROM THIS STUDY. THERE MAY BE SOME LIMITATIONS, BUT WE HAVE TRIED OUR BEST TO MAKE IT AS ACCURATE AS POSSIBLE. We sincerely hope that you will enjoy reading this report. We will be very glad if the study can serve its actual purpose and we are ready to explain anything to you if necessary.
Yours’ faithfully, Name SABBIR MD. SALAHUDDIN SAGORE NAFIZ IMTIAZ GOLAM SAIFUDOIN TAKON ONIK MD.FAISAL RAZA ID 05-05872-2 07-09506-3 07-09168-2
1.1Over view of the company:
Nasir Glass Industries, the biggest and first float glass manufacturer in Bangladesh. Produces different sized and colored float glass according to the requirements of the buyer. The manufacturing plant is located within the short distance of the capital city Dhaka, at Sripur in Gazipur made at a cost of Tk 300 crore. Built in 2005, Nasir Glass Industry, the country's first float glass plant, has a capacity to produce 60,000 tonnes of float glass, strong enough for furniture, besides window and door panes. The glass factory produces clear and tinted heat absorbing glass, clear, bronze, blue and dark gray and light gray glass. The factory, producing glass from 2mm to 12mm thickness, has already achieved international standards in producing glass. Our country has an annual market for Tk 3.00 billion glassware and almost all of them are imported from China, Thailand, Malaysia and Indonesia. But because of the poor local demand, it can sell only 3500 tones in the local market and export around 1500 tonnes to the neighboring countries of India, Nepal and Bhutan. As a major portion of the rawmaterials are procured locally, the prospects of the float glass industry is bright indeed. It sells glass at much lower price compared to that of the imported glasses with similar quality. About 501 - 1000 People are employed directly or indirectly in this industry. Its total annual sales volume US$1 Million - US$2.5 Million. Its main exporting markets are North America, South America, Western Europe, Eastern Europe, Eastern Asia, Southeast Asia, Mid East, Africa, and Oceania. The company is named after its owner Nasir Uddin Biswas, the group has an annual turnover of around Tk 10 billion.
NGIL is a multi-functional float glass complex set up with a dream. Sprawled over 23 acres of lush green land at Joinabazar, Sreepur, Gazipur, Bangladesh, NGIL has a buitt-up area of over half a million square feet with some structures rising over 80 feet. With 37 meters (121 feet) high imposing water tower and 75 meters (246 feet) lofty chimney, NGIL presents a panoramic view of eloquent beauty with impressive grandeur. Dotted by architecturally attractive workstations surrounded by elegantly crafted paths which are landscaped by intertwined trees, shrubs and lawns, the factory is an ecological dream.
1.2Marketing mix Strategies:
Marketing is a societal process which discerns consumers' wants, focusing on a product or service to fulfill those wants, attempting to move the consumers toward the products or services offered. Marketing is fundamental to any businesses growth. The marketing teams (marketers) are tasked to create consumer awareness of the products or services through marketing techniques. Unless it pays due attention to its products and services and consumers' demographics and desires, a business will not usually prosper over time.
Every marketing strategy should be measured by it's ability to directly impact and improve upon each of these three factors. basic marketing strategies cost efficiently produce new prospects who are ready. Therefore good marketing must be able to create a "proposition" or set of benefits for the end customer that delivers value through products or services. It is also concerned with anticipating the customers' future needs and wants. but are willing to buy. Increase the number of customers Increasing the total number of customers is the first step most business owners and managers take to grow their business.Marketing tends to be seen as a creative industry. Essentially. distribution and selling. 6 . willing and able to buy products or services. and (3) Increase the frequency of repurchase.investing corporate resources to find more customers. Increasing all three factors will produce geometric business growth. Increasing only one factor will produce linear business growth. Losses can occur when inexperienced sales personnel are put in charge of designing and implementing a marketing program . which includes advertising. Executed correctly. Rewarding existing customers for referring new ones is one easy step business owners can take to increase their total number of customers. There are only three marketing strategies needed to grow a business: (1) Increase the number of customers (2) Increase the average transaction amount. which are often discovered through market research. Marketing Strategy #1. The main purpose of a marketing strategy is to give sales personnel prospects to convert into paying customers. marketing is the process of creating or directing an organization to be successful in selling a product or service that people not only desire.
Increase the average transaction amount Owners and managers spend most of their time operating their business and searching for new customers.Marketing Strategy #2. systematically offering customers more value via additional products or services at the point of sale. This attitude can eventually cause customers to spend less money. Frequently communicating news and offers to past and present customers via telephone or mail generally increases their frequency of repurchase and is one more step owners can take to grow their business. expecting customers to buy a minimum amount of product or service without ever being asked to buy more. are two simple steps business owners can take to increase their average transaction amount. 7 . Complacency. A customer's repeat business is earned by the business who gives the customer what they want. They often overlook the customers they see regularly. Cross selling and up selling. Increase the frequency of repurchase In an established business. Customers who aren’t ½ continuously offered compelling reasons to keep buying more of the same products and services from one business will look for new reasons to buy from another. Without having basic marketing strategies or processes for consistently offering customers more of what they want. an average customer purchasing pattern develops and (like the average transaction amount) is usually taken for granted and rarely improved upon. Marketing Strategy #3. These repeat customers are usually taken for granted and left to conduct entire transactions without ever being asked if they would like to buy more product or service. can be the undoing of a business. repeat business is earned less frequently.
Also known as the Four P's. milk. Products or services: 8 . place.The marketing mix is probably the most famous marketing term. It is the same with the marketing mix. Its elements are the basic. the marketing mix elements are price. The marketer mixes the prime colours (mix elements) in different quantities to deliver a particular final colour. So for a sweet cake add more sugar. you can alter the final cake by altering the amounts of mix elements contained in it. The offer you make to you customer can be altered by varying the mix elements. as is every marketing mix. Another way to think about the marketing mix is to use the image of an artist's palette. and promotion. The concept is simple. Every hand painted picture is original in some way. product. Think about another common mix . increase the focus on promotion and desensitize the weight given to price. However. tactical components of a marketing plan.a cake mix. flour. All cakes contain eggs. and sugar. So for a high profile brand.
You buy a new car and that's the product . 9 . Researching consumers' opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay. looks at the products or services that customers NEED throughout their The price Of all the aspects of the marketing mix. price is really determined by the discovery of what customers perceive is the value of the item on sale. is the product more complex than you first thought? The Three Levels of a Product The Product Life Cycle (PLC) is based upon the biological life cycle. price is the one.all the others are costs. The scope of a product generally includes supporting elements such as warranties. it begins to sprout (growth).The product aspects of marketing deal with the specifications of the actual goods or services. CLC focuses upon the creation of and delivery of lifetime value to the customer i. Crudely speaking. Must meet customer requirements whatever these might be. and support.e.simple! Or maybe not. In theory. which creates sales revenue . For many a product is simply the tangible. guarantees. and how it relates to the end-user's needs and wants. For example. phsysical entity that they may be buying or selling. However. An organisation's pricing policy will vary according to time and circumstances. When you buy a car. it shoots out leaves and puts down roots as it becomes an adult (maturity). the value of water in the Lake District will be considerably different from the value of water in the desert. after a long period as an adult the plant begins to shrink and die out The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). a seed is planted (introduction). The price of an item is clearly an important determinant of the value of sales made.
e. buy one get one free. to include physical evidence(such as uniforms.g.g. Getting the right product to the right place at the right time involves the distribution system.creating a distinctive image and character to an organisation/and or its products and services • • • • • Advertising . 'Place' is concerned with various methods of transporting and storing goods. Others will increase the mix to Seven P's. The choice of distribution method will depend on a variety of circumstances.to inform and persuade the public Packaging . Promotion Is the process of communicating with customers. The term was coined by Neil H. Some commentators will increase the marketing mix to the Five P's. communication of products and services contributes to the persuasion process to encourage consumers to avail themselves of whatever is on offer.The place Although figures vary widely from product to product. For marketing purposes. include: • Branding .e. roughly a fifth of the cost of a product goes on getting it to the customer.presenting the product in a desirable and appropriate way Public relations activities and other forms of publicity Sponsorship Special promotions . to include people. Borden in his article The Concept of the Marketing Mix in 1965. and then making them available for the customer. The key processes involved in promotion. facilities. 10 . It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers. while others will prefer to sell directly to retailers or customers. a visit the Disney World). the whole customer experience e. or livery) and process (i.
People People are the most important element of any service or experience. or 7P's.Physical Evidence Physical Evidence is the material part of a service.There are a number of perceptions of the concept of process within the business and marketing literature. for example . Some see processes as a means to achieve an outcome.to achieve a 30% market share a company implements a marketing planning process 11 . Process Process is another element of the extended marketing mix. Strictly speaking there are no physical attributes to a service. so a consumer tends to rely on material cues. Services tend to be produced and consumed at the same moment. and aspects of the customer experience are altered to meet the 'individual needs' of the person consuming it.
1Objective of the study: This report is all about the marketing mix strategies used by different companies. the biggest and second float glass manufacturer in Bangladesh. 12 .Chapter: Two 2. We made this report on Nasir Glass Industries. We tried to find out what is marketing mix really is in a true when it is used in a company.
2. promotional distribution strategies. Analyzing the position Nasir Glass in the Glass market of Bangladesh. Therefore. To identify and analyze Nasir glass’s production. pricing. To identify the market segmentation.2 Limitation of study: Our study is based on Nasir Glass Ltd. market targeting and the positioning strategies used by Nasir Glass and to make a comparison between the Nasir Glass and its competitors. 13 . To realize how marketing mix strategies are used in real life situation. As a result we decided to visit Nasir Glass’s head office at Baridhara for collecting more information. But when we visited Nasir Glass’s official web site we were disheartened. promotion and distribution strategies of the Nasir Glass Ltd. • • To make a comparison between the Nasir Glass and its competitors. • • • • • To present an over view of Nasir Glass Limited. Our additional focus was on the segmentation. Because we found only four pages about Nasir Glass’s establishment and some of its products.Our special focus was on the production. market targeting and the positioning strategies used by Nasir Glass. But it was a very small amount of data for our assignment. When we were given to do our assignment we thought that it would be easy for us. pricing. if we point specifically the main purpose of our study are as follows. To present the Marketing mix elements.
how much data we need and from where we would collect them. primary data collection source and the secondary data collection source. They were not enough co-operative to reveal their different programs in public because of the competition in the market. Whenever we tried to open the different pages of Nasir Glass’s official web site the server showed that the page couldn’t be displayed now. So we couldn’t get recent data.This is privatized company. such as. Except this limitation we have to face other: Our study is based on secondary data and those data are not updated time to time. the employees were so busy that they could not give us enough time that we need. and TV channels. we will collect them by visiting Nasir Glass’s head office at Baridhara. primary data. annual reports. We decided that. As it is private company. newspapers. For reason we divided our sources of data into two sections. published books. 2.3 Data collection: When we were given to do the assignment the first question raised in our mind is which type of data. which are not available in web sites. 14 . So they were friendly enough to provide all the information.
. Product catalogue of Nasir Glass. 15 . Advertisements on newspapers.Secondary sources of data: Official Web site of Nasir Glass Ltd. Primary sources of data: Conversation with the Nasir Glass’s officials.
Chapter:Three 16 .
The market segmentation also helps them to concentrate on their specialized products like tempered glass. Others follow the lead of competitors or earlier market entrants. often produces insights and opportunities that would be overlooked otherwise. often supported by some marketing research. a marketer relies on experience and judgment to make a decision about the segments that exist in the market and how much potential each offers. Market Segmentation process followed by Nasir Glass When the Nasir Glass Company enters into the glass industries their first job was to segment their total market into different glass users. The Process of Market Segmentation Markets are sometimes segmented intuitively. mirror glass users etc. In segmenting. Another alternative is to perform a structured analysis. Market segmentations help them to concentrate on each particular market with their best efforts.3. internally homogeneous groups. The essence of segmentation is that the members of each group are similar with respect to the factors that influence demand. even if done with a small budget. in order to identify segments and measure their potential. 17 .1Market Segmentation Market segmentation is a process of dividing the total market for a good or service into several smaller. A major element in a company’s success is the ability to segment its market effectively. we first identify the wants of customers within a sub market and then decide if it is practical to develop a marketing mix to satisfy those wants. reflective glass users. The reason behind this segmentation is to identify the demand of each group and serve each group with their demand quality products. that is. So they divided their markets into color glass users. This approach. tempered glass users.
which also distinguish their markets among them. Geographical segmentation: In this process they segment their markets into different areas of Bangladesh. Nasir Glass has considered the following factors to segment its market. 18 . they found the market for glasses was highly existed. They didn’t find any difficult to enter the market because there was a few competitors and the market was very big and easily accessible. So. They basically segment their markets on the basis of demand and profit. Chittagong market. Shylet market etc. The each segment of glass market was highly predictable as big markets and this markets have the wants to be satisfied from anywhere either from the domestic market or from the international market. Such as Dhaka market. They also segment the total market within these cities on the basis of their demands. Indonesia. They consider the following characteristics of the market to segment them. As two years ago the whole glass market was running through the imported glasses from China. For example. In this step they also find out the demand of the glasses. This intern helps them to have somewhat monopoly on those products market. Identifying the characteristics of the glasses distinguished them among the segments.reflective glass that are not manufactured in Bangladesh by any other glass companies. For example. Identifying the current and the potential wants of different glasses in the market. they consider the main cities as their biggest markets. Determining the sizes of segments and how well they can be satisfied. Dhaka is the biggest market of all within the Bangladesh and then Chittagong. When they examined the market the current and potential wants they found a huge market depending mostly on imported glasses.
Dhaka market is the biggest then the Chittagong market. some want high quality and durability. The company always considers these criteria as important factors for segmenting the market. Some want home delivery. For example. 19 . For example. Customers’ location: glass markets are frequently segmented on a geographic basis. mirror industries.Demographics segmentation: They segment their market one the basis of social classes of the people. they desire a kind of glass which them from sunrays. then the Shylet. some users want to protect themselves from the sunrays. Behavioral segmentation: Benefits desired: They have segmented their market on the basis of benefit desired by the users of different glasses. For example. So with this view the company has segmented its market in building industries. Purchase criteria Buyers are different in their purchase criteria. So they have the demand for coated/ reflective glasses. These people want heavy-duty glasses and they want to use these glasses at their maximized limits. Size: They also segment the market on the basis of their sizes. then the Khulna etc. furniture industries etc. Usage rate: it also segments its market on the basis of usage rate of different glasses. Customer type Industries: Different industries mainly the developing industries are the main user of glass. It is seen that most of the upper class people are stylish and they certainly use different glasses to decorate their houses and their office buildings. the demand for a particular glass in India may not have the same demand in Nepal or Peru. The company also segments its international market on the geographic basis. Some people want to have glasses that do not fade away with in 15 or 20 years. Some buyers want low price.
Western Europe. single-segment concentration or multiple segment targeting. A separate marketing mix is developed for each of the segments. Eastern Europe. Southeast Asia. Eastern Asia. management must next select one or more segments as its target markets. Among these three strategies the company use multiple segment strategy. Mid East. The reasons behind choosing this strategy are because this strategy normally results in a greater sales volume increasing the profit and capture the greater share of the market.3Positioning 20 . The segments the company is mainly targeting are the geographic segment or location of customers and the building industries. Under a multiple segment strategy two or more market segments are targeted. The company can follow one of three strategies – market aggregation. And as the company has different models and products of glasses so it is useful for them to use multiple segment strategy. Africa.3. The company is targeting each segment on the basis of the customers wants and their size.2Market targeting After a company has segmented a market. South America. 3. and Oceania. Its main markets are North America.
firms go to great lengths to influence how positions are formed. It is also supplying at a low price then their competitors. their quality and their specialized products. which are the most important to the target markets. It is using the best technology of glass industry and trying to serve with the best quality.Having identified the potential segments and selected one or more target. When positioning a product the marketer wants to convey the benefits most desired by the target market. A position is the way a firm’s product. 21 . Often these positions are based on a single attribute and or limited experience because consumers are seldom willing to invest much time and effort in the process. The company is positioning its products by price and quality. the market must next decide what position to pursue. Its current position among other three competitors the PHP Glass industries Ltd. brands and organizations. In positioning the process the company has selected the positioning concept of low price. Because a product’s position is critical to its evaluation. The company is trying to keep its position by using the features of brand name. brand or organization is viewed relative to the competition by current and prospective customers. durability and quality. To simplify decision-making. They are trying to sell products at lower price than the same imported products. MED Glass works Ltd and Osmania Glass Ltd is in the top. individuals formulate mental positions for products.
Durability Specialization Quality Nasir Glass PHP Glass Bengal Glass Med Glass Less expensive Positioning 22 .
Chapter:Four 23 .
it will be able to change the product or develop the product in order to match those requirements of the people it is aiming at.4. the mix should include four main elements: Product. Price. where it is best distributing its product. materials used. In order for its business to tackle this correctly. the price to ensure it is not too cheap or too expensive. how it can create interest and awareness for its products. by examining each and carefully and adapting them to customer's needs. it needs to get the right type of mix (marketing mix). 24 . Company’s market research data will be able to look more closely at what its market want and then look at its products to see if they are satisfying your customer's needs. it will continue to produce and needed products and services. By analyzing the market and its requirements. it needs to look at what products it is selling in detail to ensure they will be attractive and needed. Examine its packaging design. Product Every company needs firstly to identify who will be interested in buying its products and services. Place and Promotion.1Product: In order for any company to sell its products and services as successfully as possible. size and quantity. and finally. All these elements need to be targeted at the right people at the right time. this should be identified once it has analyzed the results of the market research.
which resist scratches. which assures the fineness of finished goods. The only way it will be able to do this is to track your products and track how its customers are still receiving its products and services. Dolomite. Salt Cake. The operation prevents the formation of both temporary & residual stresses in glass. 4. are added to lower the melting temperature of Silica and achieve optimal clarity of finished product. thus giving it precise flatness & transparency. When turned into mirror. Clear & Transparent looks: Nasir Glass is excellently clear & transparent.1. balancing the subtle changes as they occur. if it ignores these changes its products will no longer be needed or desired by your target customers. etc. Distortion-free: Nasir Glass has precise surface flatness. dust & 25 . Basic float glass is manufactured by melting Silica sand.1Products of Nasir Glass Ltd: Nasir Float Glass is a single line manufacturing unit. Ingredients such as Soda Ash.It also needs to remember that its customer's needs are likely to change and therefore its products should constantly change to reflect each market change. The mixed batch is heated at about 1650ºc and formed into large sheets by floating molten glass on molten tin. The formed ribbon then passes through an Annealing lehr. Sparkling Surface: Nasir Glass has fully fire furnished surface and executes a fine luster. which provides distortion-free vision. it provides brilliant reflected image. which cool-up the glass from 600ºc to 70ºc. Quality Control System is an integral part of the production process.
Solar Heat Energy Absorption: Tinted Nasir Glass absorbs 30 to 35 percent of the solar radiation heat (depending on the tint and thickness of glass). It’s easier to clean. 26 . It provides flexibility which helps Architects and Designers to use it in new design trends. Beautification: Nasir Glass enhances the aesthetics appearance of buildings.dirt. reduces the flow of heat into the buildings and keeps the building cool and comfortable. thus softening the glare of light. Strength & Durability: Nasir Glass is very strong & durable because it is free from bubbles & ripples. Protection Against Glare: Tinted Nasir Glass has low visible ray transmittance.
Furniture’s Due to its versatility. Home Doors & Decorations For its crystalline. thus saving precious energy. it reduces the overall dead weight of buildings. Nasir Glass is the first preference for home doors. The heat absorbing ability reduces the air conditioning & lighting load largely. The easy maintenance & non-inflammability of the glass make it an essential material for display cabinets. distortion free Nasir Glass provides a distinct image to a shop. partitioning. allows faster construction & requires less expensive maintenance. Shop Fronts & Decorations The shiny. cabinets. etc. Nasir Glass is ideal for furniture. transparent & tinted quality.Window Glazing Nasir Glass is the best choice for any window glazing application for its superior strength. Besides giving modern looks. cupboards. cabinets and different decorations. high optical clarify. undistorted. tabletops. screening & decoration. 27 . shelves. strong. smooth surface & flexibility in sizes. Curtain & Partition walls Nasir Glass enables to design curtain & partition walls owing to its inherent strength & availability of various sizes. showcases & sliding doors of large cabinets.
Mirrors Nasir Glass gives perfect reflected image when turned into mirror. Functions & Features: 28 . Tempered Glass For its strength & durability. Nasir Glass also gives perfection as Tempered Glass. REFLECTIVE GLASS A REFLECTIVE GLASS is made by high velocity electric sputtering of metallic elements or compounds on to a glass substrate in vacuum or in presence of special gas.
Specialized Application 29 . hotels. It serves as 'antipeep' and 'antisteal' barriers. Lowers the operation cost of air conditioning by reflecting the solar energy. It can also serve as mirror glass for room decoration. laboratories. which ranges only 8-30% and reducing sun glare. Makes buildings aesthetically beautiful by offering variety of colors to glazed the building appearance. attracting customers and enhancing renta l and sa l es value of the building.Reflecting glass l owers the initial construction time & cost of the building. where requires no direct sun glare. hospitals. computer rooms etc. department stores. Applications: Reflective glass can be used as curtain walls for office buildings. Makes a room comfortable by conrolling light transmittance.
Chemical reactions and process of making float Glass: 30 . coated glasses.Nasir Glass is also producing specialized crystallized glasses.
they are not as big and as technologically improved as PHP or Nasir Glass. They are covering a small portion of the market comparing to PHP or Nasir Glass. Ocean Blue. Blue. Dark Gray. : Jumbo size : 96" x 144" Medium size : 84" x 144" / 84" x 72" Small size: 42" x 48" Other sizes on request as perm i ssib l e. Dark Grey & Light Grey.560 m2 /_annum. : Clear/Tinted/Coated: 154. manufacture more specialized products and it is holding more percentage of the total share of the glass market. Green./annum : Clear.4.T. They are competing in the same market with more or less same products.000m2/annum including Mirrors : 3 mm to 1 2 mm (2mm also possible). But Nasir Glass is bigger. : 2mm to 12mm : Wide range of sizes: up to 2130mm x 3600 mm (84 inch x 142 inch) larger sizes can also be produced if transportation & handling constraints can be overcome. There are two more glass companies in Bangladesh.1.000 M. So the main competition is prevailing between the PHP Glass and the Nasir Glass. 32 . A comparison on the basis of product between this two gigantic Glass producer in Bangladesh is given below… Products of Nasir Glass: Float Glass : Shades Tempered Sheets Coated/Reflective Sheets Thickness Range Sizes of Glass Product cut on line :73.2A basic comparison of Nasir Glass products with the PHP glass: PHP Glass and Nasir Glass are the main compotators of each other in the glass market. : "PHP Glass" : Japanese Industrial Standard R3202. Coffee Bronze (light & deep). Products of PHP Glass: Float Glass Shades Thickness Sizes Brand Standard : Clear & Tinted (Heat Absorbing) : Clear. : Varieties of Shades on Clear/Tinted Glass : 670. Bronze.
1. This part of the cycle need careful consideration. The company is doing this to gain a competitive advantage generating more sales and build customer satisfaction. This intern is more profitable and less risky for the company. If this is the case. Growth Phase If its product or service has been enjoying being the only one on the market.4Alteration of existing product The company is altering its products by continuously improving its existing products. will you change the distribution method? Decline Phase Perhaps the company has noticed that one of its products is losing its appeal. Maturity of a product is a dangerous time and it could get swallowed up by its competitors.1. the product may be in decline and if the company is not careful the product may die. By continuously altering existing products the company is leading in the competition. it may have noticed that others are also joining in and entering a competitive product or service and this will have an affect of the healthy sales it might be enjoying at the moment.Will it drop the price to compete. How it prices.Will the company drop the price to compete. As with a product in the growth part of the life-cycle . By doing this company is expanding its product mix. companies should also consider where in the life cycle their products lie: Introductory Phase If a company is releasing a brand new product or service then it will be a baby in the market and will need to be introduced to the market. 4. then it can consider that its product is a mature one. enough is enough. will it change the way in which it promotes products. will it change the distribution method? Maturity Phase If its product is one of many competing products. When exploring what mix is best suited to your product. 33 . it might decide. 4.5Product life cycle Product Phases (life-cycle) Products also go through what is known as a life cycle or phase.4. By this the company is letting their customers making choices as they like among a variety of products. The company is doing this because the company wants to capitalize on its strength and experience. sizes and thickness. How it react to this will have an impact on the survival of your product .3Product mix expansion The company is increasing its variability of products within the same brand by manufacturing glasses of different colors. will it change the way in which the company promotes it.1. sales or interest might have dropped. If this is the case then it has to take care that interest for its product is not lost. promotes and places this into the market place will need careful consideration. As the company is competing with both the domestic and foreign companies it is important for the company to improve its products constantly for survive in the competition market.
Bhutan. 4. revising prices. Take a close look at the market research data . A brand mark is the art of the brand that appears in the form of a symbol. 4. A brand is a name and or mark intended to identify the product of one seller or group of sellers and to differentiate the product from competing products. Nepal. Nasir Glass Brands its products by using the company name at the beginning of the products name like Nasir Color Glass.7Some examples of product decision to be made: Brands The word brand is comprehensive. Nasir Reflective Glass etc. expanding distributions channels and enhancing promotional activities to maximize sales and profit. It required a very short period to become popular. design or distinctive color or lettering.1. letters and or numbers that can be vocalized. As the company started production only 2 years ago and has already supplying export quality glasses we can easily say it is in growth stage. A trademark is a brand that has been adopted by a seller and given legal protection. Oceania and other countries.” A brand name consists of words. its introduction period was for a short period. It becomes popular in very short time. it encompasses other narrow terms. Brand is also used not really correctly to refer to a specific product as in ~sales of the brand. A brand mark is recognized by sight but cannot be expressed when a person pronounces the brand name.1.and remove it from your shelves or it could re-invent it by changing by packaging or product name. The company is now supplying about 42% of the total domestic market demand and exporting to India. 34 . They are constantly assessing prices.could a company aim it at a different type of person? The products of Nasir Glass are in growth stage currently. To do this it is continuously monitoring its competitors and the demand and wants of the customers.6Management of the life cycle As the products of the company are in the growth stage the sales and profit of the Nasir Glass is increasing rapidly. The company is spreading its markets and targeting new markets to increase its sales and profit. So. To retain the growth stage the company is developing new products alternating the existing products.
It is difficult to find a brand name that rates well on every attribute. Occasionally a brand will have negative equity. Suggest something about the product.Reasons for Branding For seller. Help persuade consumers to buy the product. The reputation of a brand also influences customer’s loyalty among buyers of services as well as business and consumer goods. Branding within a product mix A separate name for each product. Among the above branding strategies Nasir Glass uses the first strategy Marketing entire output under producers’ own brands. brand can be promoted. In such a situation a brand creates unfavorably impressions about a product in a consumer’s mind. The company name combined with a product name. what are we call a differential advantage influencing consumers to buy a particular product. particularly its benefits and use. Desirable Characteristics Various characteristics determine the desirability of a brand name for either a good or a service. Be distinctive. They are easily recognized when displayed in a store or include in advertising. branding can differentiate commodities. Branding reduces price comparison. Be easy to pronounces. Protect the product after it is purchased. The company name alone. That is because brands are another factor to be considered in comparing different products. Packaging and labeling Protect the product on its way to the consumer. Branding for market saturation With increasing frequency firms are employing a multiple brand strategy to increase their total sale in a market. Marketing under middlemen’s brands. Be capable of registration and legal protection. spell and remember. Building and using brand equity We tend to think of brand equity as a positive aspect of a product. Finally. Branding of fabricating materials and parts. Help gain acceptance of the product from middlemen. They have more than one brand of essentially the same product. branding reduce the likelihood of purchase decision that are based solely on price. The brand itself can become an edge over competition. Because it is expensive and time consuming to build brand equity it creates a barrier for companies that want to enter the market with a similar product. aimed either at the same target market or at distinct target markets. 35 . Be adaptable to additions to the product line. Branding Strategies Marketing entire output under producers’ own brands.
A grade label identifies a product’s judged quality with a letter. A descriptive label gives objective information about the product’s use. which refers to the arrange of elements that collectively form a good or service. So they are being able to serve the market with the quality products. A brand label is simply the brand alone applied to the product or package. A distinctive design may be the only feature that significantly differentiate a product. Nasir Glass is constantly changing its products designs to give the customers a variety of choice. even though it is universally recognized as significant. Nasir Glass is producing color glasses in different colors. number or word. Good design can improve the marketability of a product by making it easier to operate. Quality: There is no agreement on a definition of a product quality. The concept of price is central to microeconomics where it is one of the most important variables in resource allocation theory (also called price theory). Design: One way to satisfy customers and gain a deferential advantage is through product design. 36 . Nasir Glass is using the advanced technology of producing different glasses. One professional society defines products quality as the set of feature and characteristics of a good or service that determines its ability to satisfy needs.2Price Price in economics and business is the assigned numerical monetary value of a good. improving its appearance. Multiple packaging. and/or reducing production cost. Color: Like design product color often is the determining factor in a customers acceptance or rejection of a product. construction. care. Family packaging uses either highly similar packages for all products or packages with a common and clearly noticeable feature. service or asset. 4.Packaging strategies A company must decide whether to develop a family resemblance when packaging related products. performance and other potential features. Labeling: The Nasir Glass to its products does all the three types of the following labeling. Price is also central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan. upgrading its qualities.
Prices must be established to assure sales. the price what will charge the customers or clients will have a direct effect on the success of business. Review prices frequently to assure that they reflect the dynamics of cost. The most effective way to lower prices is to lower costs. Though pricing strategies can be complex.1Pricing objectives of NASIR GLASS The firms pricing objectives must be identified in order to determine the opticalpricing.common objectives of NASIR GLASS include the following • Current profit maximisation • Current revenue maximization • Maximize quantity • Maximize profit marzin • Quality leadership • Partial cost recovery • Survivalstatus quo No matter what type of product for sell. response to the competition. and profit objectives. the basic rules of pricing are straightforward: All prices must cover costs and profits.4. 37 .2. market demand.
The economy experiences either inflation or recession. Your sales strategy changes. Your competitors change their prices. Use a high price where there is a uniqueness about the product or service. Let's have a look at some of them and try to understand the best policy/strategy in various situations.2Available pricing methods: There are many ways to price a product. Your costs change. Such high prices are charge for luxuries. Penetration Pricing. 4. When is the right time to review your prices? Do so if: • • • • • • • You introduce a new product or product line. the strategy of many business owners is to set prices once and "hope for the best.Pricing decisions require time and market research. Premium Pricing.2. or Your customers are making more money because of your product or service. 38 . You decide to enter a new market. This approach is used where a a substantial competitive advantage exists. such a policy risks profits that are elusive or not as high as they could be." However.
For example 'price point perspective' 99 cents not one dollar Product Line Pricing. This approach is used when the marketer wants the consumer to respond on an emotional. There are many examples of promotional pricing including approaches such as BOGOF ( Buy one get one free). For example a razor manufacturer will charge a low price and recoup its margin (and more) from the sale of the only design of blades which fit the razor. and price skimming are the four main pricing policies/strategies. Supermarkets often have economy brands for soups. Price Skimming. 39 . wash and wax $4. Once this is achieved. Economy Pricing. Psychological Pricing. The cost of marketing and manufacture are kept at a minimum.The price charged for products and services is set artificially low in order to gain market share. Premium pricing. For example car washes. economy pricing. However. companies will charge a premium price where the consumer is captured. Here sellers combine several products in the same package. However there are other important approaches to pricing. For example airlines will charge for optional extras such as guaranteeing a window seat or reserving a row of seats next to each other. and the whole package $6. spaghetti. This also serves to move old stock. and the price inevitably falls due to increased supply. Optional 'extras' increase the overall price of the product or service. The high price tends to attract new competitors into the market. Where there is a range of product or services the pricing reflect the benefits of parts of the range. penetration pricing. etc. Charge a high price because you have a substantial competitive advantage. the advantage is not sustainable. Product Bundle Pricing. Manufacturers of digital watches used a skimming approach in the 1970s. Captive Product Pricing Where products have complements. Pricing to promote a product is a very common application. Promotional Pricing. Companies will attempt to increase the amount customer spend once they start to buy. Videos and CDs are often sold using the bundle approach. Optional Product Pricing. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost. the price is increased. other marketing strategies and pricing approaches are implemented. This is a no frills low price. Basic wash could be $2. They form the bases for the exercise. rather than rational basis.
be able to make a case for a higher price. Competitive pricing effectiveness • • • • Know the prices each competitor has established.Geographical Pricing. The retailer typically pays more per unit because he or she are unable to purchase. smaller companies within that same market will be compelled to follow. the risk profits that is too low. Figure out your optimum price and decide. Demand pricing is difficult to master because it must correctly calculate beforehand what price will generate the optimum relation of profit to volume. Competitive Pricing Competitive pricing is generally used as there's an established market price for a particular product or service. be sure the level of price awareness within the market. Provide a superior customer service or warranty policy. Competitive pricing is used most often within markets with commodity products. and sell as great a quantity of product as a wholesaler does. wholesalers. Products usually sold through different sources at different prices--retailers. Cost-Plus Pricing It use cost-plus pricing. For example rarity value. The wholesaler profits from a greater volume of sales of a product priced lower than that of the retailer. 40 . which results in purchasing at a lower unit price. This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales. discount chains. This is why retailers charge higher prices to customers. Geographical pricing is evident where there are variations in price in different parts of the world. If there's a major market player. • Before making a final commitment to prices. If the overhead figure is not accurate. or where shipping costs increase price. stock. Should wish to charge more than your competitors. A wholesaler might buy greater quantities than a retailer. Value Pricing. based on direct comparison. Demand Price Demand pricing is determined by the optimum combination of volume and profit. those that are difficult to differentiate from another. commonly referred to as the market leader that company will often set the price that other. or direct mail marketers--are examples of goods whose price is determined by demand. The key to being successful with this method is making sure that the "plus" figure not only covers all overhead but generates the percentage of profit you require as well.
wholesalers. Other strategies followed by Nasir Glass: Price Set in Relation to Market Alone 41 . Steps in determining prices: 4. As the pricing objective of Nasir glass is profit maximizing.3Strategies used by nasir glass to determining price: Various types of strategies are used in pricing considering the objectives of the company. products and their pricing methods.2. It also follows market penetration strategy for the competing products. they mostly use market-skimming pricing for their new and specialized products. which results in the price charged to the customer. and retailers.Markup Pricing Used by manufacturers. a markup is calculated by adding a set amount to the cost of a product. It uses penetration pricing which is comparatively low pricing but the target is to capture the biggest share of the market. So we can that It follows a matrix strategy for pricing its products.
Nasir Glass does it to increase the share in the market.2. Another option is pricing above competition. which is below than the competitors. the seller bears the whole burdens or the seller and buyer share this expense. depending on the destination the price is varied. Nasir Glass selects the prices for their same categories product. Only a few company are existed. To make the charge easy. Geographic Pricing strategy Nasir Glass is sold all over the country even outside the country. As there are many pricing methods prevailing in markets. In geographic strategy. it is the important fact to consider the freight of the product. Nasir Glass follows pricing below the competition. The most important message is this pricing is done by discount retailers. In this system. Nasir Glass doesn’t recognize the price to meet competition. the pricing will be varied according to the charge of that zone. The destination is situated in which zone. 42 . Normally Nasir Glass don’t follow this method but if it produce a distinctive product then it charge high price for that product. It wants to increase its sale volume and to earn maximum profit. In glass market of Bangladesh there are not very much competition. price of the product will be varied according to their destination.Nasir Glass uses cost plus pricing but it also considers the price in relation to the market competition.4Method used in pricing by Nasir Glass: Using a particular pricing method is important for pricing products. Price Lining Price lining involves selecting a limited number of prices at which a business will sell related products. Nasir Glass recognizes the zone delivered pricing. Nasir Glass has divided the total geography in various zone and determined the charges for each zone. Nasir Glass may establish pricing policies whereby the buyer pays the entire freight expenses. So the cost plus pricing is Price = cost for product + desired profit. Recognizing the geographic. So. If the destination is too far then the price of the product will be high compare with the product whose destination is in near. Actually it wants to capture the market. This method sets the price where both cost desirable profit are considered to determine the price. It firstly categories their product and then select the price each category. So. And that’s why it launches its product in the market as a price. Nasir Glass has three options – such pricing can be for the meet competition. 4. the Nasir glass company is using mainly the cost plus pricing method. So.
Nasir glass consider three factors.it ignores the market demand. But pricing will be made in which point where profit is obvious. These are Total cost plus a desired profit Marginal analysis Competitive market condition.Reasons behind the selecting cost plus pricing method ---------- Its objective is giving emphasis over the earning profit. Here cost and profit can be easily identified. So they combined the profit and market demand in pricing. assuming a certain selling price. secondly. The break-even point is that quantity of output at which total revenue equals total cost. Total Fixed cost Break-even point in unit = Unit contribution to overhead Here. To know the answer Nasir Glass made break-even analysis recognizing selecting price. Cost plus pricing: To price in this method. In identifying the cost they consider the total cost. Then Nasir Glass want to know is their pricing efficient or not. It also makes decision about the sale volume. It helps to find out revenue cost and profit. Nasir Glass made the price by cost plus pricing. To overcome this limitation the Nasir Glass’s pricing is not only basis of cost and profit. So desired profit can be easily identified. revenue and profit. But it also considers the demand of the market. Although it is an easy method it has some limitation. Actually it is following a matrix method for pricing. It can predetermine the profit when pricing of a product. Firstly one is – it does not recognize various types of cost.2. This method is over all easy to determine price. 4.5Break-even analysis Nasir Glass Company does break-even analysis as it considers both demand and cost in price determination. Unit contribution to overhead = Selling price – Average variable cost 43 . And make the final decision about the price of the product.
Ignore pricing by middlemen: The reasons behind ignoring the pricing by middlemen are as follows Most retailing prices are really just offers. the company must change the price or the product will be out of the market. the pricing is really done by the producers. It is the same with promotions. the final outcome is different. This method is appropriate for only those companies who use less expensive machine for production. These different markups for distinctive product reflect competitive consideration and other aspects of market demand. They only add percentages on the price. All retailers do not use the same markup.3PROMOTION Another one of the 4P's is 'promotion'. Customers may accepts the price or reject the price. Actually middlemen don’t set the price. However if you vary the amounts of one of the ingredients. Marketing communications has its own 'promotions mix.' Think of it like a cake mix. This includes all of the tools available to the marketer for 'marketing communication'. 4. This cost affects hugely on the cost of final products. If they ignore this fix cost or pricing mainly bases on marginal cost it would not be suitable for the company. the basic ingredients are always the same. 44 . If they reject the price.In cost plus pricing there is also two methods such as Prices based on marginal cost Pricing by middlemen But Nasir glass does not follow any of these methods because of the following reasons… Ignore prices based on marginal cost: Nasir Glass Company uses expensive machineries for production. You can 'integrate' different aspects of the promotions mix to deliver a unique campaign.
signs. or services by an identified sponsor. Nasir Glass wants to familiar by product with the customers. Nasir Glass wants to move a knowledgeable customer from being indifferent to linking a product. and emails. reflecting glass etc. 4.1Promotional objectives Awareness: Nasir Glass has come in the Bangladesh market in 2005 with their various types f products as – float glass. 45 .Any paid form of non-personal presentation and promotion of ideas. Linking: Linking refers to how the market feels about the product. Company’s first objective is creating awareness and the second objective is gaining knowledge within the customers about the product. banner ads.3. in-store displays. These consist of: Advertising. The company’s objective is making the actual purchase by the customers. even for customers who are convinced they should buy a product. Purchase – Purchase can be delayed or postponed indefinitely. Examples: Print ads. brochures and catalogs. Bengal Glass. motion pictures. Company’s objective is to positioning the Nasir Glass in the high point. clear glass.2Methods There are some main aspects of the Promotional Mix of this company. goods. Preference: Creating preference involves distinguish among existing brand in the market such as – PHP Glass. Osmania Glass. crystal glass. Motalib Glass. billboard. Conviction: Conviction entails the actual decision or commitment to purchase.3. colour glass. Web pages.4. direct mail. radio. television. And for this purpose the company does varies promotional activities. Knowledge: Knowledge goes beyond awareness to learning about a product’s feature. posters.
Magazines – Magazines are the media to use where high quality printing and color are designed can reach a national market at a relatively low cost per reader. Newspapers can be used to reach an entire city or where regional editions are offered selected areas. In recent years the rapid increase in special interest magazines and regional editions of general interest magazines has made it possible for advertisers to reach a selected audience with a minimum of wasted circulation. Time and location of the buying decision. 46 . Most people enjoy television program a reasonable time of a day. News Paper – As an advertising media newspapers are flexible and timely. Direct Mail – Nasir Glass some times advertise about its different products to its existing and potential customers by direct mailing them. 5. The media should fit the message. The purpose of particular advertisement and the goal of the entire campaign influence which media to use. 3. Company analysis the media cost. With the number of stations increasing at a steady rate radio is a low cost per thousand media because of its broad reach. However. So. Media using by the Nasir Glass: Television – It is a most important media for advertising. Radio has enjoyed a rebirth as an advertising and cultural media. 2. 4. Radio audiences declined so dramatically that some people predicted Radio’s demise. Nasir Glass Company advertises their product on magazines. Nasir Glass Company advertises their product on this media for increasing their sell. Nasir Glass Company uses Radio for advertising their program.Various types of media Nasir Glass Company uses various types of media. The advertise will be considering the geographic where it will be advertised. In selecting the media Nasir Glass consider the following factors— 1. After analyzing these facts Nasir Glass Company uses newspaper for advertising their products. Radio – After inventing the television. So.
and seminars. sweepstakes. tie-ins. situated at Tongi. Social responsibilities: Alhaj Doino Hospital is one of the major concerns of PHP Foundation. Charitable contributions. Examples: Coupons. It may be billboard. issue advertising. Examples: Sales presentations. Nasir Glass Company also advertises their products on out of home advertising.Out of Home Advertising: Now a day many companies are spending on out-of-home advertising. TVs and radio presentations. and Neon light. self-liquidating premiums. The hospital is established in 2006. or business unit by planting significant news about it or a favorable presentation of it in the media. 47 . and telemarketing. rebates. Public relations. speeches. Main objective of the hospital is to provide low-cost quality medical services. samples.. trade-ins. contests. A 3-storied building comprises 15. sales meetings. and exhibitions.A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. trade shows. Poster. sales training and incentive programs for intermediary salespeople. Personal selling. the hospital is running completely non-profitable basis.Incentives designed to stimulate the purchase or sale of a product. service. usually in the short term. Can be face-to-face or via telephone.000 sft.Non-paid non-personal stimulation of demand for a product. Sales promotion. product samples. Examples: Newspaper and magazine articles/reports. Banner.
X-rays. Sponsorship is sometimes added as a fifth aspect.especially to the less affluent section of the population where male/female doctors. – from where medicine are supplied to both indoors & outdoors patient at a very reasonable price. but it may also be vanished if no regulatory promotion is occurred. hospital runs “Specialist Consultancy Service” programs weekly to get the best treatment from the Most Experienced & Specialist Doctors for the poor villagers. He may forgotten that product . cricket matches. Health Education Program.3Promotion budget: Establishing promotion budget is extremely challenging. Hospital has 24-hours ambulance service and a pharmacy dept. video-endoscopy etc. Maternity & Child Health Care. Cancer awareness to the villagers. The investigations that carried out through the diagnostic center are Pathology & Biochemistry.determine the estimated sales and second identify the percentage what will be spend for promotion. debates. Sanitation & Hygiene. The Hospital indoor department has 20 beds and a well-equipped operation theatre complex.4Regulation of promotion: The primary objective of promotion is to sale something through persuasion. In regarding this importance the nasir glass company always trying to make regulatory promotional activities. 4. stage plays etc Web promotion is also a promotional mix. EPI (Expanded Program for Immunization) and special care center for mother & babies.so how it will be possible for him to buy that product. The Hospital future plan is to establish a Medical University and Cancer Research Institute. Specialist doctors of different discipline giving their services on call round the clock. Because management lacks reliable standards to determine how much to spend altogether on advertising. Gynecology & Obstetrics. This company continuing it by running various method of promotion such as -----48 . Oncology. One may be persuaded to buy these products. The hospital runs a modern diagnostic center where various examinations tested at nominal fee. Orthopedics. 4. Now the money spend in promotional activities is treated as investment. So company must made the budget to fix the amount for promotion. The company is now sponsoring many social competition. Almost in every year the Hospital performs a number of special service programs like Free Medical Camp.the method can be divided into two parts. General Surgery.3. and also sending Voluntary medical & relief team during flood & other disaster. staff nurses and number of trained medical technicians is working with their full effort. Pediatrics. and Ultrasonography. The services provided by the hospitals are Medicine. Besides.3. First. divide the amount among the all-promotional mix and the budget should be recover for the prosperity of the company. ECG. Nasir glass involves in promotional activities and it budgets in promotion investment on basis of percentage of sales . personnel selling and the remainder of promotional mix.
reminder & persuasion Decline: Advertising and public relations decrease. personal selling. advertise. personal selling for distribution 49 .Personnel. pre-introduction publicity Introduction: Heavy use of advertising. public relations for awareness. you should also consider the Product Life Cycle. sales promotion etc. personal selling for distribution Maturity: Advertising decreases. branding and brand marketing. sales promotion. limited sales promotion. selling. Here are some general guideline as to how and when to emphasize different parts of the mix according to the stages of a typical product life cycle: Product Life Cycle Pre-Introduction: Light advertising. sales promotion for trial Growth: Advertising. When deciding upon your unique marketing communications mix. public relations.
distribution concerns the methods. delivery and logistics: the set of business rules and processes used to move the product or service through the supply chain to the end customer. retailer or consumer. merchandising. typically either a distributor. Product may pass from distribution partner to consumer via various "channels of trade". The NaSir Glass company has its deaklers almost in every district of Bangladesh. institutions and pricing mechanisms required to bring a product from manufacturers to consumers. Broadly speaking. A distributor is the middleman between the manufacturer and retailer. Distribution strategy addresses questions about appropriate logistics service providers (such as 3PL's). where a channel of trade is defined to be an established market mechanism for distributing and selling products that follows a wellunderstood set of merchandising. 4. It has its own transport facilities for supplyiong he products to their dealers. The distribution channel: Frequently there may be a chain of intermediaries. Consequently. along with those of the all-important end-user. channels of trade. processes. After a product is manufactured it may be warehoused or shipped to the next echelon in the supply chain.4. distribution strategy encompasses elements of marketing. infrastructure. settlement and delivery policies. pricing and service policy.1Channels used by Nasir Glass: A number of alternate 'channels' of distribution may be available: 50 .4. each passing the product down the chain to the next organization.' Each of the elements in these chains will have their own specific needs. before it finally reaches the consumer or end-user. which the producer must take into account.4Distribution Distribution (or placement) is one of the four aspects of marketing. This process is known as the 'distribution chain' or the 'channel.
who typically sells direct on behalf of the producer Distributor (also called wholesaler). Internet and telephone sales Agent. Sometimes customers with big orders purchase products from the company directly or from the main dealer. Then the main dealer supplies the products to the sub-dealers at 54 districts. such as via mail order. The company gives a ordering service for its customers to give order through its official web sites. who sells to retailers Retailer (also called dealer or reseller). 51 .• • • • • Selling direct. The company has more than 100 retail shop all over the Bangladesh totally owned by the company. In the remote areas where the company does not have any sub-dealer or retail shop. the company sells its products to those areas by hiring retailers. who sells to end customers Advertisement typically used for consumption goods. The customers can purchase either from the sub-dealer or from the retailers. The products are supplied from sub-dealers to the retailers. GAZIPUR FACTORY NASIR GLASS BABUBAZAR MAIN DEALER SUB DEALER RETAILER CUSTOMER First the products are supplied from the factory to the main dealer at Babubazar. These sub-dealers control the total distribution channel within the districts.
In theory at least. The company has its own transportation division for transporting the products to its dealers and retailers within the country.The distribution channels for exporting products are not as the same as the distribution channels used for supplying products within the country. most of the practical decisions are concerned with control of the consumer. 4.4. until the product or service arrives with the end-user. often several layers of them. his job should really be extended to managing. their job is finished. However. Yet that distribution chain is merely assuming a part of the supplier's responsibility. if the producer is large enough. if he has any aspirations to be market-oriented. except by mail order. albeit very indirectly. In practice. The small company has no alternative but to use intermediaries. When an international buyer gives an order to the company. there is a form of trade-off: the cost of using intermediaries to achieve wider distribution is supposedly lower. the use of intermediaries (particularly at the agent and wholesaler level) can sometimes cost more than going direct. but large companies 'do' have the choice. all the processes involved in that chain. Indeed. On the other hand. This may involve a number of decisions on the part of the supplier: • • Channel membership Channel motivation 52 . many suppliers seem to assume that once their product has been sold into the channel.2Channel management The channel decision is very important. the company supplies the products by direct shipment to that buyer. most consumer goods manufacturers could never justify the cost of selling direct to their consumers. into the beginning of the distribution chain. Many of the theoretical arguments about channels therefore revolve around cost. and.
4Channel motivation It is difficult enough to motivate direct employees to provide the necessary sales and service support. giving them allownces and discounts on total salles and purchase.• Monitoring and managing channels 4. and particularly the brand leaders in consumer goods markets) price competition may be evident. 3. 4.3Channel membership 1. Exclusive distribution . Perhaps the most usual is `incentive': the supplier offers a better margin.Where the majority of resellers stock the `product' (with convenience products. for example. to tempt the owners in the channel to push the product rather than its competitors. Nasir Galss motivates its dealers and retailers by suppling products at less price than the usual market price. Motivating the owners and employees of the independent organizations in a distribution chain requires even greater effort.Only specially selected resellers or authorized dealers (typically only one per geographical area) are allowed to sell the `product'. At the other end of the spectrum is the almost symbiotic relationship that the all too rare supplier in the glass industry with its dealers.4. 53 . Intensive distribution .This is the normal pattern (in both consumer and industrial markets) where `suitable' resellers stock the product. Selective distribution . or a competition is offered to the distributors' sales personnel. so that they are tempted to push the product. support as well as sales. are trained to almost the same standard as the supplier's own staff. The company also helps them by lending them financial help. where the dealer's personnel.4. 2. There are many devices for achieving such motivation.
This has traditionally been the form led by manufacturers. many organizations use a mix of different channels. they may complement a direct salesforce. often led by a wholesale or retail co-operative. At earlier stages it can actually reduce profits. wholesalers and retailers working in one unified system. In practice. this being 'forward' integration. covering the smaller customers and prospects. in particular. Vertical marketing: This relatively recent development integrates the channel with the original supplier .producer.4. so will those of the distribution chain. calling on the larger accounts. and the retailer at the other) 'control' over the distribution chain. The integration can also be by franchise or simple cooperation. Other research indicates that vertical integration is a strategy which is best pursued at the mature stage of the market (or product). this being 'backward' integration. This may arise because one member of the chain owns the other elements (often called `corporate systems integration').5Monitoring and managing channels In much the same way that the organization's own sales and distribution activities need to be monitored and managed. It is arguable that it also 54 . It is perhaps more likely that a retailer will own its own suppliers.4. The intention of vertical marketing is to give all those involved (and particularly the supplier at one end. and `administered marketing systems' where one (dominant) member of the distribution chain uses its position to co-ordinate the other members' activities. with agents. This removes one set of variables from the marketing equations. Alternative approaches are 'contractual systems'. a supplier owning its own retail outlets.
The company has a controlary power over its dealers and retailers. Horizontal marketing A rather less frequent example of new approaches to channels is where two or more non-competing organizations agree on a joint venture . It owns many sub-dealers and retailers in many district to enpower the vertcal marketing system it use. this is less likely to revolve around marketing synergy.because it is beyond the capacity of each individual organization alone.a joint marketing operation . Chapter: Five 55 . Among this above distribution strategy the Nasir Glass uses the vertical marketing stategy to control its total distribution channel. In general.diverts attention from the real business of the organization. in theory. Suppliers rarely excel in retail operations and. retailers should focus on their sales outlets rather than on manufacturing facilities.
to retailers without the benefit of wholesalers. distribution. For instance. The company is trying to supply export quality products at a cheap rate than its competitors and imported glasses. For example. or even directly to final customers. Design a 4 P’s is certainly affected by whether a firm chooses to compete on the basis of price or on one or more other elements. So it 56 . Ultimately. decisions in one area affects the action in another.Conclusion The 4 P’s elements are interrelated. the firms competing on the basis of price their promotional campaign likely will be built around a theme of “Low Price”. The Nasir Glass has set a combination of all the 4 P’s elements. and/or promotional strategies come to the forefront. the other elements must be designed to support aggressive pricing. When a firm relies on prices as its primary competitive tool. the product must have feature worthy of higher price. and promotion must create a high quality image for the product. however. product. a producer may make and market one product or many. They may be distributed through whole sellers. the products may be related or unrelated to each other. from the multitude of alternatives. In non-price competition. For instance. Each 4 P’s elements contain countless alternatives. management must select a combination of elements that will satisfy target markets and achieve organizational and marketing goals.
57 . where both domestic and international competition is present. At a glance to compete in a competitive market. The company uses a short vertical distribution channel to distribute its products. the 4 P’s the Nasir Glass is using is a successful one. The company is also enhancing its promotional activities to raise its sales volume and maximize profit.is competing both on the basis of quality and price.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.