Chapter 1-

Introduction

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1. Introduction
1.1. Background of the study

After completion of 130 credits hours of BBA program it demands a report on practical
experience. Internship program is a must criterion for Bachelor of Business Administration
(BBA) students, designed to put them in a challenging environment of the relevant field,
where the students get sample opportunity to apply their theoretical knowledge into practical
applications. During the internship training, students have the opportunity to adopt
themselves into the particular environment of the organization. It provides an unique
opportunity to see the reality of business during student life period, which enables them to
build confidence and working knowledge in advance of the start of their career. Here we get
our chance to apply our theoretical knowledge that we acquired from class lectures, books,
journals, case studies, seminars, project, workshop, etc and compare them with practical
setting.

1.2. Objective of the study

Broad Objective
Through this whole report the broad objective will be to find and analyze the customer
satisfaction level among SILOTI Tea customers.

Specific:
 To Understand customer profile of SILOTI Tea
 To measure the satisfaction level of customers regarding four major factors- Product
Lines & Service Quality, Sales & Marketing, Business Operations Performance and
Overall Satisfaction.

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1.3. Rationale of the Study
The tea industry has evolved a lot and it has a very long history since British period,
since then its change a lot depending on the taste of Bangladeshi people and their
preferences.

This report is completed on basis of Bachelor of Business Administration (BBA) as a

student of Eastern University, Dhaka. I completed my internship at Miami
International under the Brand SILOTI, which will always be my initial learning
experience for the rest of my career.

1.4. Limitations
 Due to being a very new product, secondary data was very hard to find.
 The tea distribution is only started, which made previous data collection very
hard.

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Chapter 2-Literature
Review
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2. Literature Review
Organization Overview
2.1 Introduction
Miami International is a sole proprietorship business organization based in Dhaka which
is distributor firm doing retail based services for next in line products. The head office of
Miami International is situated at opposite of Ovishar Cinema Hall, Tikatuli, Dhaka. The
firm has 435 of total number of staff members, 140 number of vehicles to support its
business operations & supply chain management. Miami International is a distributor
partner of Japan Tobacco Industries (JTI), AFBL, Aamtoli Tean Plantation etc. For
revenue, Miami International’s monthly revenue is around 300 million tk. The firm
mostly conducts distribution only in Dhaka South areas, but next year it will expand its
business operations to Dhaka North areas too.

2.3. History & Background

As a sole proprietorship firm, Miami International was established 1992, from then it has
expanded a lot to reach in today’s position it is now. Today this firm distribute & market
cigarette brands such as Navy, Sheikh, Marlboro etc from Japan Tobacco Industries, Soft
drink brands such as Clemon, Mojo, Speed etc from AFBL, various brands of chips &
chocolate and Tea form the brand of SILOTI by Aamtoli Tea Plantation.

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2.3. Mission
The mission of the firm is to provide and maintain a steady & hassle free supply chain for
its customers and to minimize the gap between the manufacturer & the retailer.

2.4. Vision
The vision of the firm is to create a supply chain system that reaches every corner of
Bangladesh.

2.5. Products & Services

Miami International distribute a variety of products from cigarette to beverages, since I
was placed by the firm under the Tea distribution, following products will only feature
tea products from Miami International.

The Miami International distributes SILOTI Tea from Aamtoli Tea Plantation, under this
brand SILOTI provides two different type of tea products:

 SILOTI Special Blend: This variant of SILOTI tea offers the thinner blend of
this brand of black tea. This flavor comes in two sizes, 500gm @ 228tk & 200gm
@ 90tk.
 SILOTI Special Bold: This variant of SILOTI tea offers BUP version with
thicker
Blend of black tea. This Flavor comes in only one size, 500gm @220tk.

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2.6. SWOT Analysis
SWOT analysis is a strategic planning technique used to help a person or organization identify
strengths, weaknesses, opportunities, and threats related to business competition or project
planning.
“S” = Strengths
“W” = Weakness
“O” = Opportunity
“T” = Threats
Here given the SWOT analysis of SILOTI Tea:
Strengths:
 A product of own tea plantation.
 High quality control.
 With better color concentration blend than other brands.
 Lower price than Ispahani & Taaza.
 Better & unique packaging than other brands.
 Attractive color & design with sophisticated patterns.

Weakness:
 New product in far established market.
 Very lower brand & product awareness.
 Distribution only limited to Dhaka south.
 Very less promotional activities.
 No TVC.
 No online presence.

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Opportunity
 Tea lovers still prefers taste over price.
 SILOTI distribution targeting tea stalls.
 Provides retailers with wholesale offers & prioritizing them.
 Feedbacks suggests better quality in taste than other brands.

Threats
 The competitors are more oriented on tea accessories, i.e. pots and cups.
 The competitors are versatile many different types of teas for different needs.
 Competitors are being seen everywhere.
 Don’t have a big range of products.
 Not focusing on a younger audience (tea bags)

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2.7. Porter’s Five Forces Model
The first fundamental determinant of a firm's profitability is industry attractiveness. Competitive
strategy must grow out of a sophisticated understanding of the rules of competition that
determine an industry's attractiveness. The ultimate aim of competitive strategy is to cope with
and, ideally, to change those rules in the favor of firm. According to Michel Porter (1990), in any
industry, whether it is domestic or international or it produces a product or a service, the rules of
competition are embodied in five competitive forces: the entry of new competitors, the threat of
substitutes, the bargaining power of buyers, the bargaining power of suppliers, and the rivalry
among the existing competitors (Porter, 1990) Industry attractiveness is the presence or absence
of threats exhibited by each of the industry forces.The greater the threat posed by an industry
force, the less attractive the industry becomes. Firms should attempt to seek out markets in which
the threats are low and the attractiveness is high. Understanding what industry forces are at work
enables firms to develop strategies to deal with them. These strategies, in turn, can help to find
unique ways to satisfy their customers in order to develop a competitive advantage over industry
rivals.(Porter, 1990) Figure #1: Porter’s Five Force’s Model The five forces determine industry
profitability because they influence the prices, costs, and required investment of firms in an
industry - the elements of return on investment. Buyer power influences the prices that firms can
charge. The power of buyers can also influence cost and investment, because powerful buyers
demand costly service.The bargaining power of suppliers determines the costs of raw materials
and other inputs. The intensity of rivalry influences prices as well as the costs of competing in
areas such as production, product development, and advertising. The threat of entry places a limit
on prices, and shapes the investment required to deter entrants. In any particular industry, not all
of the five forces will be equally important and the particular structural factors that are important
will differ. Every industry is unique and has its own unique structure. The five forces framework
allows a firm to see through the complexity and pinpoint those factors that are critical to
competition in its industry.

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Barriers to Entry
If the threat from new entrants into the product category is high, the attractiveness of the industry
diminishes. On the other hand, if the risk of new entry is low the firms in the industry can take
the advantage to raise price and earn greater profits. The strength of the competitive force of
potential rivals is largely a function of the height of barriers to entry that make it costly for firms
to enter an industry. High entry barriers keep potential competitors out of an industry even when
industry returns are high (Hill & Jones, 2002). In case of tea industry of Bangladesh following
factors can be considered as the influential sources of barriers to entry:
 Scarcity of Land
 Brand Loyalty
 High Investment
 Unavailability of Skilled Workers
 Government Regulations

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Rivalry among Established Companies
Weak rivalry amongst the established firms offers an opportunity to raise prices and earn greater
profits. On the contrary, strong rivalry leads to price wars and higher cost of doing business
which ultimately limit the profitability and growth prospect of the firm. The following factors are
seemed to have contribution in determining the extent of rivalry in Bangladesh Tea Industry
 Low Switching Cost among suppliers
 Product Differentiation
 Demand Condition
 Competitive Structure

The Bargaining Power of Buyers

The buyers may be the customers, individual or organizations who ultimately consume the
products or they may also be the organizations that purchase for resell to the end users. Buyers
can be viewed as a competitive threat when they are in a position to demand lower prices and/or
better services which, in turn increase the costs of doing business. On the other hand, when the
buyers are weak, a firm can raise its prices and earn greater profits, thus making the industry
more attractive. (Porter, 1990) In case of tea industry in Bangladesh, the companies that purchase
tea from auctions to market it either in local or export market can be considered as buyers. The
following factors can influence the bargaining power of buyers for the case of Bangladesh Tea
Industry.
 Purchase Volume of Buyers
 Dependency of Suppliers on Buyers
 Vertical Integration

The Bargaining Power of Suppliers

Suppliers can be viewed as threat when they are able to either force up the price that a company
must pay for its inputs or reduce the quality of the inputs they supply, thereby diminish the firm’s
profitability. On the other hand, when suppliers are weak, the firm enjoys an opportunity to force
down prices and demand higher input quality. As with buyers, the ability of suppliers to make
demands on a firm depends on their power relative to that of the buyer. (Hill & Jones, 2002).The
following factors affect the bargaining power of suppliers.
 Number of Suppliers
 Importance of the Buyer Industry
 Differentiated Product and Switching Cost

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Threat of Substitute Product
Products from one business can be replaced by products from another. If the firm produces
commodity product that cannot be differentiated easily, customers can switch away to a
competitor’s product with less consequences. On the contrary, there may be a distinct penalty for
switching if product is unique or essential for customer’s business. (AICC, 2004). The following
factors can influence the threat of substitute for the tea industry:
 Low Switching Cost
 Customers Loyalty
 Income level of customers
 Taste and Preferences

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 Chapter 3-
Methodology

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3. Methodology

3.1. Description & Collection of Data

The intension behind collecting data was to measure customer satisfaction of SILOTI tea.
Due to being a new product in it the market, there was a very little amount of secondary data
available, this data analysis was mostly dependent on primary data. A survey was conducted
for extracting primary data through questionnaire (included in the Appendices).

3.2. Sample design

For sample design Dhanmondi zone was selected as sample frame, where I was placed for
field inspection & direct customer (stores) communication by the firm.
Sample Size
For sample size 30 retail stores & tea stalls were selected in Shankar, West Dhanmondi
Route, where all the stores in Dhanmondi zone were the population size.
3.3. Statistical tools
For statistical purposes, Microsoft Excel was used for processing & analyzing the data.

3.4. Report writing structure

3.4.1. Chapter 1- Introduction
3.4.2. Chapter 2-Literature Review
3.4.3. Chapter 3- Methodology
3.4.4. Chapter 4-Results (Findings & Analysis)
3.4.5. Chapter 5-Conclusion & Recommendation
References/Bibliography
Appendices

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 Chapter 4-Results
(Findings & Analysis)

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 4. Results (Findings & Analysis)

For the findings and analysis the customer satisfaction levels were made in four different
parts
 Product Lines & Service Quality
 Sales & Marketing
 Business Operations Performance
 Overall Satisfaction
Under every one of these individual main satisfaction levels, lays their own sub-levels
which are given below:
1. Product Lines & Service Quality
a. Accuracy of Deliveries is good:

20%
Strongly disagree
Disagree
Fair
Agree
Strongly agree

80%

In the matter of Accuracy of deliveries, among 30 stores in this survey were included, above pie
chart shows positive results toward delivery accuracy to these stores, 20% strongly agree and
80% agree on this matter, showing SILOTI’s accurate delivery system.

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 b. Timeliness of Deliveries:

Timeliness Deliveries is good

7% 13%
Strongly disagree
Disagree
Fair
Agree
Strongly agree

80%

“Timeliness of Deliveries” refers to the accurate time table of product deliveries regarding
projected timeline. For this factor the chart above shows 80% positive results toward SILOTI’s
time accuracy regarding deliveries.

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 c. Product quality:

Product quality is good

13% 10%

Strongly disagree
Disagree
Fair
Agree
Strongly agree

77%

Product Quality refers to the actual product quality regarding tea stall usage & retail store’s
consumer responses. For this factor the conducted survey received 77% agreed & 13% strongly
agreed, which shows positive results toward product quality.

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 2. Sales & Marketing
a. Sales & Marketing Materials are good:

Sales & Marketing Materials are good

20%

Strongly disagree
40% Disagree
Fair
Agree
Strongly agree

40%

Sales & marketing materials refers to the sales assisting or promotional materials provided by the
Firm to increase it’s own & sellers sales activity and product awareness. For this factor, the chart
shows mixed results, including 40% disagreed to good marketing support, 40% showed fair
response and 20% agreed that provided marketing material were effective, which indicates that
sales & marketing materials are still not promising for retailers.

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 b. Outside Sales Reputation is good:

Outside Sales Reputation is good

10%

Strongly disagree
Disagree
30% Fair
Agree
60% Strongly agree

Outside sales reputation very essential for new products to survive in a competitive market.
Where SILOTI according above chart performed very well, showing 60% good results among
sellers(retailers+whole sellers+tea stalls), on the other hand 30% showed fair response and 10%
disagreed.

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 c. Ease of Ordering admirable:

Ease of Ordering admirable

3%

Strongly disagree
Disagree
43% Fair
53% Agree
Strongly agree

Ease of ordering refers to seller’s flexibility of communication for ordering products from the
firm. The chart above shows very positive results, where 53% strongly agreed & 44% agreed that
they found ease of ordering admirable.

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 3. Business Operations Performance
a. Phone System Operations are available

Phone System Operations are available

Strongly disagree
37% Disagree
Fair
Agree
63% Strongly agree

Phone System Operations refer to the firm’s whole business operations are available to be
conducted through telecommunication. SILOTI provide all the stores with phone numbers of
certain area managers to assigned sales representatives available for any support necessary. Here
in this chart shows

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 b. Responsiveness to Inquiries/Needs is good

Responsiveness to Inquiries/Needs is good

Strongly disagree
Disagree
43%
Fair
Agree
57%
Strongly agree

Responsiveness toward customers/retailers needs refers the rapid response or keenness to

provide services as soon as a problem or need emerges. For this factor total response drives
toward 100% positivity for SILOTI’s responsiveness.

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 c. Payment facilities are good:

Payment facilities are good

Strongly disagree
Disagree
47% Fair
53% Agree
Strongly agree

Payment facilities are all the support, flexibility & options provided by firm to sellers regarding
payments. For SILOTI, this shows not a better result. 53% held fair ground where 47%
unsatisfied toward Payment facilities.

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 4. Overall Satisfaction:
a. Reputation of SILOTI:

Reputation of SILOTI is good

3%

33% Strongly disagree

Disagree
Fair
Agree
Strongly agree
63%

This shows perceived reputation is pretty good among seller, 63% agreed that to them the
reputation is good enough.

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 b. Recommend SILOTI and its products and services:

Recommend SILOTI and its products and services

3% 7%

Strongly disagree
27% Disagree
Fair
Agree
Strongly agree

63%

This above chart indicates that 63% would recommend SILOTI products & its services to other
sellers, 7% disagreed & 27% showed fair response.

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 c. Buying products and service from SILOTI in the future:

Buying products and service from SILOTI in the future

3%
17%
23%
Strongly disagree
Disagree
Fair
Agree
Strongly agree

57%

The chart above indicates new potentials, because 57% agreed & 17% strongly agreed that they
would buy SILOTI Tea products & services in the future.

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 Chapter 5-
Conclusion &
Recommendation

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5.1. Conclusion
In the end it can be said that tea industry is still growing & more newer brands like SILOTI are
there. As the survey & the analysis suggests that, SILOTI as brand has many potentials to thrive
in this tea industry as the taste & the preferences among the customers evolve so that they can
acknowledge its unique taste. Though more effective, efficient & targeted marketing is needed to
compete & survive in this market to reach at prominent position among other brands.

5.2. Recommendation
To have better results this report can suggest some much needed improvements and
recommendation regarding SILOTI’s current operations,
 Targeted promotions for young people are very much needed, More attention is needed in
localized marketing. A strong & attractive TVC should be considered to attract more for
consumer level marketing & awareness. Expanded marketing campaigns should
developed to create for extended promotional activities.

 Increase online presence to reach more and more awareness.

 Targeted promotional material should be available for retailers & tea stalls
 Incentives & and gifts for retailers should be given on reaching a certain sales volume.
 Pay more attention & focus to improve the payment facilities. Considering the current
payment policy and in response to that various & diversified payment facilities
(installment payment, due sales facility for high volume whole sellers ) should be
developed & implemented as soon as possible regarding the retailers benefit &
satisfaction.

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Appendix

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Questionnaire
SILOTI
A PRODUCT OF MIAMI INTERNATIONAL
____________________________________________________
Customer Satisfaction Survey
Channel to Customer Survey Questionnaire

NAME:
ADDRESS:

Note: Please complete this questionnaire considering your experience with SILOTI from
MIAMI INTERNATIONAL by answering following statements with ( ✔) mark regarding
answers ranging from “Strongly disagree” to “Strongly agree”.

Strongly Disagree Fair Agree Strongly

disagree agree
1 Product Lines & Service

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 Quality
a Accuracy of Deliveries is good
b Timeliness Deliveries is good
c Product quality is good

2 Sales & Marketing

a Sales & Marketing Materials
are good
b Outside Sales Reputation is
good
c Ease of Ordering admirable

3 Business Operations
Performance
a Phone System Operations are
available
b Responsiveness to
Inquiries/Needs is good
c Payment facilities are good

4 Overall Satisfaction
a Reputation of SILOTI is good
b I will recommend SILOTI and
its products and services
c I will buy products and service
from SILOTI in the future

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Analyzed Data
Strongly Disag Fair Agre Strongly
disagree ree e agree
I am a buyer of SILOTI Tea
1 Product Lines & Service Quality
a Accuracy of Deliveries is good 24 6
b Timeliness Deliveries is good 4 24 2
c Product quality is good 3 23 4

2 Sales & Marketing

a Sales & Marketing Materials are 12 12 6
good
b Outside Sales Reputation is good 3 9 18
c Ease of Ordering admirable 1 13 16

3 Business Operations Performance

a Phone System Operations are 19 11
available
b Responsiveness to Inquiries/Needs 17 13
is good
c Payment facilities are good 14 16

4 Overall Satisfaction
a Reputation of SILOTI is good 10 19 1
b I will recommend SILOTI and its 2 8 19 1
products and services
c I will buy products and service 1 7 17 5
from SILOTI in the future

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Thank
You

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