Term Paper on Furniture Marketing in Bangladesh

Introduction
There is no any person who is not familiar with the term furniture. It is essential for every room. A room without furniture looks empty. Human has been using furniture from the time when he or she understood the necessity of furniture. Every person wants to decorate his room with furniture. There are used various furniture. Different furniture is used in different situation. Some furniture may be large, some may be medium, and some may be small. We can differentiate furniture like the following way: home furniture, office furniture, baby furniture. Home furniture may be table, chair, cot, Elmira, dressing table, dining table, dinner wagon, showcase, reading table, bed side cabinet, sofa set, fridge, rack. Office furniture may be chair, table, shoe rack, locker, cupboard, sofa set etc. Furniture is very necessary in our life. We need- cot for sleeping or taking rest on it, table and rack for keeping book on it. Chair and sofa set for sitting, Elmira and locker for keeping some secret and important things. Fridge for keeping food cold. In short furniture is used in every time in our life.

Term Paper on Furniture Marketing in Bangladesh

Background of furniture
The Bangladesh furniture is one of the most promising growth sectors with high export potential. According to a household income and expenditure survey of 2005, the domestic consumption growth rate is around 20% and export market is almost entirely untapped. Furniture is one of the rapid growing sectors of Bangladesh. There are approximately 40000 furniture enterprises in our country employing around 180000 people. In 2007 the total market size was estimated at U.S.D 1.6 billion. The growth rate of 2005-2007 was 15-20% and the projected growth rate is 23% over the period of 2007-2012. In our country there are 121 clusters in our country. All of them 93 are micro and small clusters, 17 are medium and 11 are large clusters. The bigger clusters are mostly located in Dhaka and Chittagong. All of them Mirpur is the biggest cluster in our country. There are also many clusters in our country. Such as: elephant road, Panthapath. The main areas of furniture are Panthapath, Elephant road, Mirpur, these areas are very popular for furniture marketing. In our country, there are various companies. All of them the famous and more popular companies are Otobi, Hatil complex, Navana furnishers, Partex furnishers, Tanin etc. Otobi is the market leader of our country. And it is holding about 50% of market place of furniture marketing, which worth taka 1500 crore. Generally Otobi started its activity since 1975. Now it produces more than 100 items of furniture. And in abroad it sells about 16 items. It is to be said that, Otobi is the company which is producing the most appealing furniture. And for this, Otobi is most popular. Another company is Hatil which was established in 1989. And it is another leading company in our country which produces doors and furniture. This company has about 28 showrooms in different district in our country.

Term Paper on Furniture Marketing in Bangladesh

Extending Furniture Marketing
For extending the marketing process our furniture company should focus on these following steps: • • • Creating competitive advantage Taking the advantage of global marketing Following sustainable marketing

Problems of Furniture Marketing in Bangladesh
Although our furniture company plays a vital role for the economic development of our country. But it is not totally free from the problems. There are so many problems in our furniture company and in our furniture marketing. These problems hamper our furniture company to earn more profit and its development. The major problems are given below: • • • • • • • Inadequate supply of production technology. Lack of consultancy services. Limited access to quality inputs. Absence of skilled work force. Limitations in local and international marketing strategy. Problems in distributing the furniture products. Shortage of raw materials.

Inadequate supply of production technology
Technology is an important factor for increasing the production. Technological skill can play a very good role for increasing and developing the products. Better supply of technology can help our furniture company to increase it’s production. But we can notice that our furniture company can not use the better technology for the improvement of the furniture products. This is really a severe problem for our furniture co.

Lack of consultancy services
Consultancy services are very important for producing better quality furniture products. But the lack of consultancy services hampers our furniture company to earn more profit.

Term Paper on Furniture Marketing in Bangladesh

Limited access to quality inputs
A better input helps to get better output. But its limited access does not make any good result.

Absence of skilled workforce
Although our country is over populated but there is a shortage of skilled workforce in our country. We can gain the best quality products from the skilled workforce. But unskilled workforce are failed to produce better furniture products. Making furniture is a technical process. So skilled workforce are required for Furniture Company.

Limitations in local and international marketing strategy
The success of a company mostly depends on its marketing strategy. Marketing strategy is very important for every type of business organization. But it’s local and international limitations are threatening for our furniture co.

Problems in distributing the furniture products
Our furniture company can not distribute it’s product to the whole country because there are so many problems they face.

Shortage of raw materials
Although our country has many trees. Our people cutting down these trees unreasonably. Our furniture company can not collect more raw materials for producing more furniture.

Term Paper on Furniture Marketing in Bangladesh

Recommendations
There are some recommendations that will provide the opportunity to remove those problems. The recommendations are given below: • • • • • • To have an effective promotion strategy and good branding. Improving finishing and packaging quality. Improving the image of Bangladesh on the social and environmental issues. Increasing the design capacity in the country. Branding of Bangladeshi furniture. Allowing an exportation development plant.

To have an effective promotion strategy and good branding
Effective promotion strategy and good branding will help our furniture company to raise its profitability.

Improving finishing and packaging quality
By improving finishing and packaging quality our furniture company can attract it’s customers attention more and more.

Improving the image of Bangladesh on the social and environmental issues
Our furniture company can reflect the image of Bangladesh on the social and environmental issues.

Increasing the design capacity in the country
By improving the design capacity our furniture company will be able to promote its sales.

Branding of Bangladeshi furniture
This will help our furniture company to introduce in the world market.

Allowing an export development plant
This plant will help our furniture company to raise its exportation ability.

Term Paper on Furniture Marketing in Bangladesh

The Process of Marketing

Understanding The marketplace, Needs and wants

Designing a customer-driven Marketing strategy

Build profitable relationship

Construct an Integrated Marketing program

Capture value from Customers in return

Term Paper on Furniture Marketing in Bangladesh

Term Paper on Furniture Marketing in Bangladesh

Marketing Mix

“The set of controllable tactical marketing toolsproduct, price, place and promotion.”

Produc t

Price

Custo mer

Place

4P’s

4C’s
Promo tion

Product

Customer solution Customer cost Convenience Communication

Price Place Promotion

Term Paper on Furniture Marketing in Bangladesh

Personal Manufacturing System
Most of the furniture companies in Bangladesh follow personal manufacturing system. Most of the cases the companies themselves are the producer, wholesaler and retailer.

Producer

Wholesaler

Retailer

Furniture companies

Term Paper on Furniture Marketing in Bangladesh

Sources of raw materials
For making furniture raw materials are necessary. These raw materials are found from home and abroad. And for that reason there are two types of furniture raw materials. And they are home and abroad.

Sources of Raw Materials
Home Abroad

Wood, Steel, Bamboo

Processed Wood, Laminated board, Metal sheet, MDF Board

Wood
For making furniture wood is one of the most important elements. All of furniture wood is used mostly, there are three types of wood. Hardwood, softwood, and engineered wood. Generally teak, mahogany, maple, oak etc are hardwood. For better furniture, hardwood is used. Engineered wood is called plywood. And it is suitable for strong furniture. The main areas of wood are Khulnam Chittagong, Gazipur etc.

Bamboo
Bamboo is another element for making furniture. We can get good looking and appealing furniture by bamboo. There are various types of bamboo, like orah, mitinga, muli etc. Bamboo generally comes from Fatichari, Chittagong, Narail, Sylhet, Mymensingh etc.

Laminated board
Laminated board comes from India, Japan, Korea etc.

Processed wood
United States, Germany, U.K., Japan are famous country for processed wood. .

Other materials:
Metal sheet comes from china, U.K., Canada, Malaysia etc. plastic, MDF board, Steel, Iron come from various country and these are found everywhere in the world.

Term Paper on Furniture Marketing in Bangladesh

Furniture products
Furniture products can be classified based on the raw material by which it is made. Different kinds of furniture products are given below Wooden furniture: wooden furniture is that furniture which is made by wood. Such as chair, table, dining table, bed, bench, almirah, sofa etc. All of furniture wooden is used mostly. Bamboo furniture: Bamboo furniture is book –self, handicraft, and rack. Metal furniture: Metal furniture is bed, chair, table, sofa, computer desk, metal cot etc. Glass furniture: Tea table, dining table, showcase, aquarium etc. Plastic furniture: Plastic furniture is chair, table, dining table, plastic rack etc. Wicker furniture: Rocking chair, book self, and handicraft are wicker chair. Board furniture: Almirah, door, reception desk are made by board. Others: There is much furniture which is made by more than one raw material. Such as a chair is made by both metal and wood. Exporting scope: Exporting scope refers to those place or market where we can export our furniture. At present furniture market is one of the most raising industry in BD. If we look at a glance in the some previous years we can see that, the amount of export in increasing rapidly and exporting scope is wide spread for Bangladesh. The most attractive exporting scope of furniture marketing is- USA, Philippine, Japan, Europe , South east Asia & India. It is the matter of great joy that “Otobi” a Bangladeshi company has its show room in Kolkata, Agortala and joypurhat. It is to be noted that recently a team of 7 members has come in Bangladesh from Philippine and they signed into an agreement to import wood, timber and furniture from BD. Export income: How much currency Bangladesh fetched in some previous years is given below-

Years
2005-06 2006-07 2007-08 2008-09

Amount (Million dollar)
2.2 1.8 2.4 3.0

Achievement: For exporting furniture to the foreign country Bangladesh participated in international furniture fair in several times. Such as in 2005 BD participated in a fair in UK and also participated in Tokyo in 2006. in 2009 BD joined in a program named PANEL EXPO-2009 and that year BD won the best participation award.

Term Paper on Furniture Marketing in Bangladesh

Strategy of Furniture Marketing

Pricing

Developing Quality of a Product

Strategy

Distribution

Promotion

Term Paper on Furniture Marketing in Bangladesh

Contents
• Introduction • The Process of Marketing • Marketing Mix • Background of Furniture Marketing • Raw Materials & Personal Manufacturing • Strategy of Furniture Marketing • Problems & Recommends of Furniture Marketing • Executive Summary

Term Paper on Furniture Marketing in Bangladesh

Executive Summary
Furniture is one of the rapid growing sectors in Bangladesh. The potentiality of this sector is increasing day by day. No doubt about it that furniture industries in our country contribute hugely to our overall economy. Most of our furniture companies follow their personal manufacturing systems and it is a good sign that shows progress of furniture industries in Bangladesh. This sector creates lots of employments in our country. More than 2 lack workers involve with this sectors directly and indirectly. Diversity of product portfolio is one of the key strengths of Bangladesh furniture industry. Furniture is one of the major sectors of exporting in our country.