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Report on YELLOW

Participators
MD. Faisal Khan 1611480030

Mohammad Fazle Rabbi 1530629030

Muntahar Akter Muna 1612296030

Submitted to
Dr Jashim Uddin Ahmed(JnA)
Table of contents
Abstract 2

Keyword 3

Introduction 4

The pricing of products in 4


Bangladesh

Background of the YELLOW 5

Management structure of 6
YELLOW

Printing and production 7


process

Nature of competition 10

Source of competitive 10
advantage

Change, setbacks and 12


challenges for YELLOW

Opportunity for YELLOW 14

Going forward 15

Acknowledgement 16
References 16
Abstract
This report provides collective information on YELLOW which is a sister company of
BEXIMCO owned by A S F Rahman and Salman F Rahman. Since 2004, how YELLOW
has gained growth over the period of time and how they are currently conducting
their broad market are the key topics which have been discussed in this report.
YELLOW follows divisional management structure to conduct their business in 17
outlets and planning to take their brand all over the world. Pricing of product varies
from time to time. YELLOW is the only Bangladeshi clothing brand which has outlets
in Pakistan. Price of products mostly stays in between 795 to 4999 BDT. YELLOW is
trying to get better hold of local market but competition is tight. Printing and
production process includes both manual and automated transmissions. Thus strong
parent company BEXIMCO is helping the brand to open new outlets in different
places in Bangladesh and abroad to get closer to the customers. YELLOW is a design
driven brand so the fashion is constantly changing. In the nature of competition
segment, YELLOW has been placed as a market follower who is willing to take the
market leader position. For achieving the goal, what this certain brand demands and
what advantages this brand possesses has been discussed in source of competitive
advantage. YELLOW has strong brand image, own production facilities, efficient and
effective employees and managers, strong organizational culture, highly developed
product distribution network which is enlarging their channel. Opportunity of
YELLOW discusses about certain areas of current market where YELLOW can have
better control. E-commerce is new in business. This brand is also offering customer
service online through www.yellowclothing.net website. In order to maintain healthy
competition in the market, YELLOW is trying to expand their market as much as
possible. They are trying to get better control over local and foreign market.
Keywords
Introduction
RMG (Readymade garment) is emerging very fast and has already overtaken local
custom tailors in Bangladesh. Bangladesh has been holding a very strong place in
RMG sector since 1978. Textiles and clothing account for about 85% of total export
earnings of knit and woven shirts, blouse, trousers, skirts, shorts, jackets, sweaters
and many more casual and fashion item. BEXIMCO textiles produce all of these.
They have their own garment industries. In order to serve Bangladeshi people with
high quality and budget friendly trendy clothes, birth of YELLOW took place. This
particular brand serves their product through BEXIMCO owned display outlets.
YELLOW aims to bring world class fashion, quality & service at a justifiable price.
That is such a retail store that works continuously on international design and
product development and catches fast fashion response to retail trends. YELLOW
has now wide range of products, including children outfit as well. YELLOW is
currently in top five brands of Bangladesh. Since their journey in 2004, YELLOW has
maintained their growth of 6-7% or even more. Currently they are operating 17
outlets in Bangladesh and Pakistan. They have plans to setup 102 new outlets as
well to attract the local customers an foreign customers. YELLOW is exporting their
products in the Middle east, Europe and in Asian major countries.

The pricing of products in Bangladesh


Yellow has vast collection of products in their lineup. Average range of all products is
in between 545 to 4995 BDT. They have collections for women, men and for kids.
Price range and collection detail are given below.

Mens wear Price


Undergarment 545
T-shirt and casual shirt 695 1495
Formal shirt 1299
Formal shirt- Prive 4000 4500
Panjabi 1500- 1745
Panjabi Limited edition 2000
Trousers 1995
Trousers Premium Denim
3499
Womens wear
Accessories
995-1795
Casual tops
1595
Casual tops Premium
1795
Trousers
1695
Trousers Premium Denim
2095
Kids wear
Boys 495 1195
Girls 495 2295

Yellow offers their customers special price in festivals. Price differs in different
occasions as the design of the clothes change. In order to attract the customers,
Yellow tries to keep pace with the changing trend and fashion.

Targeting 1424 Bengali new-year, Yellow is offering mens wear in between 795 to
2695 BDT and womens wear in between 1495 to 4995 BDT. Kids wear varies from
795 to 2295 BDT. In eid, valentines day, victory day of Bangladesh and in many
other occasions, price of the products of Yellow can vary as the dresses are made
only for special occasions.

Background of the YELLOW


Today the Beximco group is one of the largest groups in Bangladesh. Beximco was
found in late 70 by two brothers Ahmed Sohail Faisur Rahman and Ahmed salman
Fazlur Rahman. Since the early days, the group has evolved from being primarily a
commodities trading company to a leading diversified group.

As Beximco has grown over the years the flagship now has a huge investment
across the wide range of companies including textile and many more stuffs. This
company single handedly sells through the whole country and also internationally
across the globe an already earned a huge recognition throughout the time. At the
present time the company has a 55,000 people world wide.

The Beximco company now is one of the leading industries in Bangladesh and it has
earned a huge respect from other companies. The key business of these company is
garments , ceramics, pharmaceuticals, textile, jute , info ,technology and many
more. The main HQ is located near Gazipur outside of Dhaka city. The capital of this
company is a worth of $2 billion.

The Beximco is now become one of the well know company as the name is so
unique in terms of clothing and other stuffs. Trust and quality are the key successor
of this company. It has now four publicly and seventeen privately traded companies.
This very company had revenue of $834 million in the year ending of December 31,
2010

In south asia at recent time this company has one of the largest and integrated
textile and garment company. It produces polyester and cotton for men, women and
also for children. It also has a large number pharmaceuticals goods which is
exported through out the world. It also poses a private air line which is very much
known for the good service and also unique as well.
Beximco is now in a stage where it is growing their capital throughout the
international and national stages. Yellow is now one of the well known garment
sector and kind of a brand in the mind of people at recent times in the past their
hard works and their international recognition has taken this company to a whole
new level of success.

YELLOW BY BEXIMCO

Beximco group also present the brand Yellow as a retailer store for the youth and
other aged people. Yellow is a brand that consists an unique and energetic thoughts
with an original and optimistic view of life through the quality they make and
enlighten through their making. It poses a modern and youthful attitude with their
making and their own confident quality. Beximco company inherits the thoughts
with their brand Yellow towards the people.

Management structure of YELLOW


Since the start of Yellow in 2004, the company has been following divisional
structure for managing the system. The company has more than 17 outlets in
Bangladesh and Pakistan. Yellow is targeting to set up more outlets in the middle-
east, Europe and in other developed countries. Thus divisional structure is helping
to divide the company in smaller organizations within the umbrella group to cover
different type of market areas and product areas. Even though divisional structure is
costly, Yellow is following that to ensure full control over the system.

BEXIMCO follows following hierarchy.

Board of directors

Chairman

Vice chairman

Managing Director

Executive Director Executive Director

Creative Director of BEXIMCO export Creative Director of Yellow


Head designer(Male) Head designer(Female)

Head merchandiser

Junior merchandiser

Printing and production process


Production process of the clothes of Yellow follows as

Theme

Design / Sketch

Pattern Design

Sample Making

Production Pattern

Grading

Marker Making

Spreading

Cutting

Sorting/Bundling

Sewing/Assembling

Inspection

Pressing/ Finishing

Final Inspection

Packing

Dispatch

Operation of Yellow Manufacturing is given below in details:

SL No. Operation Job M

It is given by purchasers to producers


containing outlines including estimations of
01 Design/Sketch specific styles Manual

Fundamental piece is an individual segment of


articles of clothing with no style of outline
02 Basic Block (without Allowance, Style, Design) Manual

Working Pattern At the point when an example is made for a


specific style with net measurement in regards
03 to the essential piece alongside remittance Manual
then it is called working example.

Sample Garments To make an example, this will be endorsed by


purchaser. Subsequent to making a specimen,
04 it is sent to purchaser for endorsement to
redress the shortcomings

Approved Sample After redress the deficiencies, test is again


sent to purchasers. On the off chance that it is
05 alright then , then it is called affirmed test

Fabric Costing

06 Costing Making Charged

Trimmings

Profit

07 Production Pattern Making remittance with net measurement for Manual


mass generation

08 Grading If the buyer requires different sizes, so should Manual


be grade as S, M, L, XL, XXL

Marker Making Marker is a thin paper which contains every


one of the segments for various sizes for a
09 specific style of pieces of clothing Manual

10 Fabric Spreading To spread the fabrics on table properly for Manual


cutting

11 Cutting To cut fabric according to marker dimension Manual

12 Sorting & Bundling Deal with the texture as per size and for each
size make in individual packs

13 Sewing To assemble a full garments

In the wake of sewing we will get a total article


of clothing which is treated with steam
14 Ironing & Finishing pressing and additionally a few completing
procedures are accomplished for instance
additional free string cutting

15 Inspection Should be approved as initial sample

16 Packing Treated by Polyethylene bag

17 Cartooning After packing, it should be placed In


cartooning for export

18 Dispatching Ready for export


Nature of competition
The nature of competition in marketing can be divided into four types. They are -

Market Leader

Market follower

Market Challenger

Niche marketer

The competitors of Yellow are Ecstasy, Freeland, Sailor, O2 and so on. Among them
Ecstasy seems to be a market leader and Yellow is the follower but since this
company has the support of a strong parent brand BEXIMCO, its number of retail
outlets is increasing day by day. Each outlet offers a wide range of fashion clothing,
fragrance, and accessories for men, women and children, textile for home
decoration and so on. In that sense, it has a huge potential to be a market leader in
future.

However, as Yellow offers a wide range of products at a wide range of prices, it falls
under monopolistic competition.

Source of competitive advantage for YELLOW


Strong Brand Name:

A strong and unique brand name can differentiate a company's product from its
competitors. "YELLOW" is an easy to spell and memorable brand name. The Yellow
color is a symbol of happiness, wisdom, fashion, imagination and shrewd personality
to most of the people in Bangladesh and Pakistan. Moreover, this color is present in
most of the products that this company sells. So, this strong brand name (YELLOW)
suggests something good about the products and can be a good differentiating
factor.
Own Production Facility:

Yellow manufactures everything from yarn to fabric and garments in their own
factories. Since the company has in house knitting, laundry, printing, embroidery
and lab, it can make garments for the retail market in a very cost efficient manner
and sell at an affordable price range. Whereas most of their competitors do not
have this advantage.

Product Quality and Design:

This is another source of competitive advantage. YELLOW, the trendiest fashion


brand from Bangladesh, is mostly distinguished for its true international quality
designs and fabrics. The brand is inspired by its customers- souls full of
unconventional fashion senses. For women, Yellow offers Lawn Kurti, Embroidered
women's ethnic trail, Digital Printed 3Pcs, Slim fitted dress and so on. For men,
Yellow offers quality shirts, pants, Panjabi. It offers cloths for kids as well. In each of
the case, maintaining good quality and high standards in designs always remain its
top priority.

Highly Developed Distribution Networks:

Yellow has 17 retail outlets to make its products available to the target customers.
In 2014, Beximco announced the opening of 102 Yellow outlets in Bangladesh and
outside of Bangladesh. Some of the major retail outlets of Yellow are situated in
Bailey Road, Bashundhara City, Dhanmondi, Maghbazar, Mohammadpur, Gulshan,
Uttara (2 outlets), Wari

Chittagong, Jamuna Future Park, Banani, Mirpur. With such an efficient distribution
network, Yellow gets some extra advantage over its competitors. The mother
company of YELLOW, BEXIMCO has well established distribution channel around the
world. Currently BEXIMCO has connection with 103 countries worldwide. Thus
YELLOW has extra advantage on their distribution channel. Products of YELLOW are
now going abroad. Yellow is exporting their products in the Middle-east, Europe and
in other countries of Asia.

Efficient Employees:

Employees are the driving force behind most competitive advantage. If the people
of an organization are better at innovating, creating, producing and establishing
relationships, a company can hope to have achieve competitive advantages.
BEXIMCO Company has got a very efficient recruitment process. It tries to hire the
quality designers, engineers for its YELLOW brand. These people are responsible for
producing high quality clothing. On the other hand, the company recruits skilled
salespeople in its different outlets to persuade the customers towards purchase.

YELLOW believes that competitors may be able to copy its products but they'll find it
hard to copy the skilled staffs (although they might poach them).

Organizational Culture & Structure:

Organizational culture is the shared habits, behavior, beliefs, mission, norms and
symbols of your Organizational. A company can have the best and brightest
workforce on the planet it's not going to matter if it does not have any common
mission. If people within the organization put all their energy into negative politics
or resisting change, the company must suffer. Yellow tries to focus on its
organizational culture which determines the energies and abilities of the people in
producing meaningful results.

Intellectual Property:

As mentioned earlier that the design of Yellow's products can be a competitive


advantage but can be very easy for the competitors to replicate. Yellow focuses on
intellectual property such as patent, trademark to protect its product, process and
designs from the competitors.

Strong Reputation and Loyal Customers:

BEXIMCO group has been doing business in Bangladesh for a long time with strong
and favorable reputation. Yellow is a sister concern of Beximco group which has a
huge group of loyal customers who make repeated purchases from the company
during both special events and other normal occasions. The company can capture
significant value from this loyal customer base. So this is another source of
competitive advantage.

Change, setbacks and challenges for YELLOW

Change:
The process of conceptualizing and then conveying a final product or service
worldwide with the hopes of reaching the international marketing community,
YELLOW is optimizing the changes. Proper global marketing has the ability to
catapult a company to the next level, if they do it correctly. Different strategies are
implemented based on the region the company is marketing to. For example, the
menu at McDonald's varies based on the location of the restaurant. The company
focuses on marketing popular items within the country. Global marketing is
especially important to companies that provide products or services that have a
universal demand such as automobiles and food.

Our product is cloths and our brand is Yellow and its Bangladeshi products and we
promoting our product in Pakistan, Bangladesh the reason why we change our
marketing strategies for Pakistan people and analyze Pakistani culture and we find
out the choice and demand of Pakistani people. So we change our local market
strategies for promoting our product in Spain and capture Pakistani market and so
was the case in Pakistani, although the Pakistani outlet has been closed, yet the
Pakistani Outlet is going fabulous, and plans are to open in Singapore, India, Sri
Lanka in the near future.

Yellow already enter in Pakistani market in alone and at present they have 4 outlets
in Pakistan. Yellow has local marketer for marketing their products and they have
also local distributor for distributing their product in Spain. The marketing decision
is taken by Pakistani marketer because they know the market and other
competitors. For influencing Pakistani customer for buying their products, they focus
on the Pakistani culture in our products. Yellow collect raw materials from
Bangladesh and also production activities held in Bangladesh. If Yellow collect raw
materials in Spain and their production units also established in Spain these time
they are not complete in the Pakistani market because this time the cost of product
is high. Yellow try to charge low price with High quality products to Pakistani
consumer. So as a popular fast fashion brand of Bangladesh whose mother company
has already made impact globally, Yellow should to go global for the greater good of
the brand name and image.

Challenge:

Bangladesh has recently come to the focus. Along with the world demand, the local
market is also altering itself to rapid changes in fashion trends. Bangladesh's largest
sector Garments/Textiles is recently looking for Fashion Designers and Highly skilled
technical Personnel. So they know about the latest trends and tastes in this field.
This field is highly competitive and they need to be not just talented, but also very
determined, ambitious, hardworking and needs to have good business sense.
Communication skills are important to be able to put across ideas and concepts
clearly for the workers as well as the clients. A good hand at sketching can be
helpful. In the long run, to make it on their own, they should have knowledge of
colors, styles, shapes and the various types of fabrics. A well-groomed and
attractive personality is also important. Since here are lots of well-known brand
such as Arong, kay kraft, Artiste, Ecstasy Anjan, Jatra, Deshal, Vasavi, Nabila,
Mantra, Cats eye, Westecs, Annamela, Rang etc. These all are local brands and
these are main com petit or of Yellow. They also know latest trends and tastes of
customer.

Setbacks:
Current ratio:

Current ratio uses all the current assets of the company. Higher current ratio is good
for a company. But this may be as a result of higher inventory, which is bad for the
company because the company may fail to sell its goods and it may also indicate
assets are tied up as current assets (in the form of Cash or Receivables) which does
not earn anything.

Current Ratio of Yellow for the year 2012 and 2016 are:

Year 2012 2016

Current Ratio 1.74 3.12

2012 current ratio of Yellow was 1.74 which means Yellow had Taka 1.74 of current
assets against Taka 1 of current liability. This was not a good situation for the
company. In 2016 current ratio was 3.12 which means Yellow had Taka 3.12 of
current assets against Taka 1 of current liability. In 2016 the condition of the
company was better than 2012. It also indicates in 2016 Yellows current assets
might have tied up. But overall we can say that in 2016 the current ratio position
was better than 2012.

The comparisons of the data for 2012 and 2016 are shown in the diagram below:

Quick Ratio:

A more conservative measure of liquidity analysis is the quick ratio. The assets
included in this ratio are called quick asset because they can be quickly converted
to cash. Inventory and prepaid expenses are excluded from this ratio. If this ratio is
much lower than the current ratio, then it is considered that firm is facing liquidity
problem. It signifies that the company may have higher inventory that the firm is
unable to sell and higher prepaid expenses.

Quick Ratio of Yellow for the year 2012 and 2016 are:

Year 2012 2016

Quick Ratio 0.92 2.48

In 2012 the quick ratio was lower than the current ratio of 2016 but in 2012. It
indicated that the company had more cash and accounts receivable and securities
available in 2016 and it also indicates that inventory of the company was higher
than 2012.

Opportunity for YELLOW


It is visible that e-commerce sector is booming in Bangladesh however Yellow is not
taking advantage of it. Yellow only has contract with Daraz.com but there are lot of
famous e-commerce sites like Bikroy.com, Bagdom.com, CellBazar.com,
rokomari.com, Clickbd and many more. So they should expand their contract with e-
commerce site to reach each and every potential customers all over Bangladesh. So
this e-commerce sector can be a huge opportunity for yellow.

As the mother company Beximco has the international exposure, Yellow can enter
easily in the emerging international market with a global business plans and
strategies. It is known that emerging market offers best growth opportunities and
BEXTEX is already involved in global export import, so with the help of BEXTEXs
networks Yellow can easily enter into the global market.

In Bangladesh demand of fashionable clothing are increasing day by day as the


lifestyle system and economic growth is increasing. So Yellow can grab hold to this
opportunity by providing fashionable clothing in reasonable price.

Going forward
Yellow has got support from their very strong mother company BEXIMCO. Thus
financially they can ensure that the brand is catching the eye of the consumers
constantly.

Beximco is committed to building long lasting partnerships with its customers by


offering quality, service, up-to-date market information and superior garments. With
this philosophy in mind, we know we must bring the right product at the right time
and of course at the right price, said Mr. Hossain, Chief Executive Officer and Group
Director of BEXIMCO textiles.

Yellow plans to open more outlets in Sylhet and Chittagong in order to gain more
local market share. BEXIMCO announced in 2014 about opening of 102 new outlets
in Bangladesh, Dubai, New-york and Toronto. BEXIMCO is taking Bangladesh to the
world. Yellow has already caught the eyes of the people Pakistan. Now they want to
introduce themselves to other part of the world as well. YELLOW has plans to open
shop at Dubai targeting only women. Luxury lawn collection of YELLOW is for
delivering world class women apparel.

Recently planned and conducted shop on the move campaign by yellow got
adequate attention from the consumers. YELLOW by BEXIMCO wants to change the
rules of the fashion world game by introducing South Asia's first fashion mobile shop
YELLOW SHOP ON THE MOVE. This will allow consumers to buy their outfits from
anywhere. They want to bring their shop to the customers. The movable shop by
YELLOW will contain latest fashion items. This will help YELLOW to catch the eyes of
local people more and amaze them as people never witnessed such effort before.

Acknowledgement
First of all, we would like to thank Allah the almighty for blessing us with life, equity
and ability. We would also like to thank our honorable faculty Dr. Jashim Uddin
Ahmed(JnA) for encouraging and guiding us to gather more information about
businesses that run in Bangladesh. This report couldnt have done without our
facultys direction. As our prior source of information, we used Google.com. Sites
that we used have already been mentioned in references section. We also used
remarks given by Mr Ijlal Razi, Deputy General Manager of BEXIMCO textile division.
We used his surveys and balance sheet to make our decisions. Last but not the
least, our whole team and every single individual worked to finish this report within
given time.
References
Marketing report on Yellow by Beximco

http://www.assignmentpoint.com/search/?cx=partner-pub-
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%20bangladesh&sa=Search&siteurl=www.assignmentpoint.com%2Ftag
%2Freport&ref=www.assignmentpoint.com%2Fcategory%2Fbusiness
%2Fmanagement&ss=9453j10017075j19 (Printing and production process)

https://www.scribd.com/document/117465408/Management-Structure-of-Beximco-
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http://www.beximco.com/

http://www.beximco.com/news-details.php?id=18

http://bdnews24.com/business/2005/12/18/beximco-blazes-the-fashion-trail-at-
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https://www.academia.edu/

http://www.yellowclothing.net

http://careerconnections.nj.gov/careerconnections/partners/talent/tldn/transportatio
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http://www.yellowclothing.net/9-kids?orderby=price&orderway=asc&orderway=asc

http://www.academia.edu/13272941/Business_Strategy_of_Yellow_Beximco_