ASSIGNMENT ON

FMCG SECTOR IN BANGLADESH

(In Partial Fulfillment of Brand Management course, Course Code MKT 6170,
Section-01)

Submitted By
Name ID
1) Md. Waliul Islam 2016010004068
2) Md. Nizam Uddin 2015210002001
3) Md. Sazzad Hossain 2016010004138
4) Md. Imrul Kayes 2015210004100
5) Md. Asaduzzaman 2016010004044

Submitted To
Ishtiaque Arif
Assistant Professor
Dept. of School of Business
Southeast University

Dept. of School of Business Studies

Southeast University
Date of Submission: 14th December, 2016
0
 PROBLEMS &
PROSPECTS OF FMCG
SECTOR IN
BANGLADESH

i
 PROBLEMS & PROSPECTS OF
FMCG SECTOR IN
BANGLADESH
ASSIGNMENT

Abstract
[A comprehensive idea on FMCG (Fast Moving Consumer Goods) industry in Bangladesh, an in depth analysis
of problems and opportunities of this sector in Bangladesh.]

Southeast University
Dept. of School of Business Studies

ii
 LETTER OF TRANSMITTAL

August 24, 2016

Ishtiaque Arif
Assistant Professor
Department of school of business studies
Southeast University

Subject: Letter of Transmittal

Dear Sir,

With due respect we, the undersigned students of MBA (Evening) batch have reported on
“PROBLEMS & PROSPECTS OF FMCG SECTOR IN BANGLADESH” under the course: Brand
Management (sec-1).

Though we are in learning curve, this Assignment has enabled us to gain insight into the core
Knowledge of FMCG industry in Bangladesh. So it becomes as an extremely challenging and
interesting experience. Thank you for your supportive consideration for formulating an idea.
Without your Inspiring this report would have been an incomplete one.

Lastly I would be thankful once again if you please give your judicious advice on effort.

Yours’ sincerely,

Md. Waliul Islam ID: 2016010004068

Md. Nizam Uddin ID: 2016210002001
Md. Sazzad Hossain ID: 2016010004138
Md. Imrul Kayes ID: 2015210004100
Md. Asaduzzaman ID: 2016010004044
Dept. of School of Business Studies
Southeast University

iii
 ACKNOWLEDGEMENT

This term paper would not be accomplished without the generous contributions of any
individuals and organizations. We are very much grateful to them for their unlimited help and
support.

Above all, we express our gratitude to ALLAH the almighty, who aided us with his strength,
gave us wisdom and patience to complete this term paper.

Additionally, we thank our course instructor “ISHTIAQUE ARIF”, who believed that we could
terminate this assignment on time. His moral guidelines, endless effort, and joyful
encouragement made us successful in this paper.

Furthermore, we want to show our appreciation to the executives, to the librarians of SEU
library, and to the lab-assistants of the computer labs, for their unlimited patience during the
time of research writing.

Moreover, we are also thankful to our classmates, group members, and friends for their
helps and supports.

At last, we thank to our parents and other family members for their helps, supports and
sacrifices during the study period.

Md. Waliul Islam ID: 2016010004068

Md. Nizam Uddin ID: 2016210002001
Md. Sazzad Hossain ID: 2016010004138
Md. Imrul Kayes ID: 2015210004100
Md. Asaduzzaman ID: 2016010004044
Dept. of School of Business Studies
Southeast University

iv
 TABLE OF CONTENT

## LETTER OF TRANSMITTAL iii

## ACKNOWLEDGEMENT iv

## TABLE OF CONTENT v

## DECLARATION vi

## EXECUTIVE SUMMARY vii

1.0 Chapter-1 (Introduction) 1-3

1.1 Background of the Study 1

1.2 Objectives of the Study 1

1.3 Methodology 2

1.4 Limitation of the Study 2

2.0 Chapter-2 (THEORETICAL FRAMEWORK) 4-22

2.1 FMCG sector in Bangladesh 4

2.2 List of the FMCG Company in Bangladesh 4

2.3 An overview FMCG Company in Bangladesh (1971-1979) 5

2.3 (1980-1989) 12

2.3 (1990-1999) 14

2.3 (2000-2009) 18

2.3 (2010-2016) 21

3.0 Chapter-4 (FINDINGS AND ANALYSIS) 23-28

3.1 Structural Analysis Of FMCG Industry 23

3.2 SWOT Analysis of FMCG sector 24

3.3 Distinguishing features of Bangladeshi FMCG Business 24

3.4 Problems of FMCG sector in Bangladesh 26

3.5 Prospects and opportunities of FMCG sector in Bangladesh 27

4.0 Chapter-4 (RECOMMENDATION AND CONCLUSION) 29-30

4.1 Recommendation 29

4.2 Conclusion 30

## References 31

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 DECLARATION

We hereby declare that this is our own work and that it has not been submitted anywhere for
any academic award. Sources of information used here have been duly acknowledged.

Sincerely Yours,

Md. Waliul Islam ID: 2016010004068

Md. Nizam Uddin ID: 2016210002001
Md. Sazzad Hossain ID: 2016010004138
Md. Imrul Kayes ID: 2015210004100
Md. Asaduzzaman ID: 2016010004044
Dept. of School of Business Studies
Southeast University

vi
 EXECUTIVE SUMMARY

FMCG (Fast Moving Consumer Goods) industry is one of the faster growing segments of the
market. This segment touches every aspect of human life. The market dynamics of the
segment are changing very frequently. Even in the harsh economic conditions of Bangladesh
the FMCG market continues to grow at a satisfactory rate of over 9%. With such rapid growth
FMCG marketers need to analyze selling performances of each product line in a professional
manner. They should also check the supermarket shelves to analyze in details of secondary
sales statistics of their products & the competitors’ products to understand the real world
market dynamics. According to the database of Registrar of Joint Stock of Companies and
Firms (RJSC) there are 59 fast moving consumer goods (FMCG) producer companies listed in
Registrar of Joint Stock of Companies, Bangladesh. (Source: Registrar of Joint Stock of Companies, Bangladesh-
2011)

Bangladesh is a very populated country, which is the eighth largest in the world. This large
number of population of the country makes the FMCG segment more potential. The top
FMCG companies are characterized by their ability to produce the items that are in highest
demand by consumers and, at the same time, develop loyalty and trust towards their brands.

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 CHAPTER-1
INTRODUCTION

1.1 Background of the Study:

Fast-moving consumer goods (FMCG) are products that are sold quickly and at relatively low
cost. Examples include non-durable goods such as soft drinks, toiletries, over-the-counter
drugs, toys, processed foods and many other consumables. The term was coined by Neil H.
Borden in 'The Concept of the Marketing Mix' in 1965. (Source- Wikipedia)

FMCGs generally have a short shelf life. Some FMCGs, such as meat, fruits and vegetables,
dairy products, and baked goods, are highly perishable. Other goods such as alcohol,
toiletries, pre-packaged foods, soft drinks, and cleaning products have high turnover rates.

As contribution margin (CM) of FMCG products is relatively small, they are generally sold in
large quantities to make substantial cumulative profit. FMCG is probably the most classic case
of low margin and high volume business.

One of the characteristics that define any type of product as a true FMCG is the fact that it is
non-durable. This leads to a continual cycle of consumption that makes it feasible to mass
produce the goods. Pre-packaged foods are a good example of this characteristic. The food is
purchased then consumed. When the food is gone, consumers return to a retail outlet to
purchase more units of the pre-packaged food.

1.2 Objectives of the Study:

Obviously, the report would lead us towards what information we want from the market.
Therefore, it is very important for us to have objectives of our own to carry out the report in
order to have a proper guideline throughout the report.

Broad Objectives:
To get an overall idea of FMCG industry of Bangladesh and find out and analyze the current
market scenario and prospects of FMCG sectors in our country as well as find out the
improvement area of this industry.

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Specific Objectives:
 Identify the leading FMCG company in our country
 Get a brief knowledge about the product category of FMCG company
 Find out how those companies are operated their business in this country
 Identify the problems or improvement area of FMCG sector in Bangladesh
 Analyze the challenges and threats of FMCG sector.
 Find out the prospects and opportunities of FMCG sector in our country.

1.3 Methodology:
This report has been developed using both primary and secondary data collected from the
related people including sales force members and related product from different super shop
any our house kitchen. The internet was widely accessed to find vital data regarding the
current trends and the organizational data. In addition to that, several magazines and
journals were used to get detailed idea about this industry.
In the next step, I determined the source of information that would be required for the study.
I used both primary and secondary data to conduct the study.
Primary Data:
I have collected primary data in the following way:-
 Face to face interviewing different sales personnel from different grocery shop.
 Searching product and collect information by visiting different super store such as
Shwapno, Agora, Meena Bazer, Daily shoping etc.
 Searching product and collect information form home kitchen and daily used product
in our life.

Secondary Data:
Sources of secondary data are as follows:
 Different FMCG company’s website
 Preceding Research Report
 Other internship report
 Friend suggestion
 E-resource from Southeast university’s library

1.4 Limitation of the Study:

By blending all my knowledge, I tried my level best to keep the limitations as short as
possible. But beside all the efforts, I faced the following limitations:

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 There were scarcity of adequate data and information on the relevant topic.
 Consulting with many persons who are involved with this sector but could not get
appropriate information.
 It was a tuff task to conduct a group study with all member of the group. Because 3 of
them are job holder. That’s why it was very challenging for them to make a free time
to do this research.
 When we interviewing sales personnel from different grocery shop, they felt very
disturbance and shows unwillingness to help us.
 There is no such kind of research paper in internet relevant this topic from where we
can get some help.

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 CHAPTER-2
THEORETICAL FRAMEWORK

2.1 FMCG sector in Bangladesh:

The Fast Moving Consumer Goods (FMCG) sector is one of the largest sectors in the economy
of Bangladesh, characterized by a strong multinational companies’ presence well-established
distribution networks, intense competition between the organized and unorganized
segments, and low operational costs. Being a developing economy, Bangladesh is gradually
becoming a large market, especially for the FMCG. In the last few years, the FMCG industry in
Bangladesh has experienced a dramatic growth; both qualitative and quantitative
improvements have occurred in the consumer durable items (Hamid et al., 2008). While
purchasing high involvement products like electronic goods, luxury items or lifestyle
products, the prior in-home decisions of purchase are not usually altered in the store
environment. On the contrary, for the convenient and low involvement products like salt,
flours, pens, chocolates, etc., a significant level of distortion from the prior decision of brand
choice is frequently observed. These convenient and low involvement products are also
known as FMCG in marketing.

2.2 List of the FMCG Company in Bangladesh:

According to the database of Registrar of Joint Stock of Companies and Firms (RJSC) there are
59 fast moving consumer goods (FMCG) producer companies listed in Registrar of Joint Stock
of Companies, Bangladesh. (Source: Registrar of Joint Stock of Companies, Bangladesh-2011)

From that most popular FMCG firms in our country are:

 Unilever Bangladesh
 Nestle Bangladesh Ltd
 Square Foods & Beverages Ltd.
 Square Toiletries Ltd
 Transcom Beverages Limited
 Pran RFL group
 City Group
 Partex beverage ltd
 Acme Agro vet and Beverage Ltd.
 ACI group
 Partex beverage ltd
 BD Foods Limited
 Sajeeb group
 Aarong
 New Zealand Dairy Products Bangladesh Limited

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  Meghna group of industry
 Kazi Firms Group
 Olympic industries limited Bangladesh
 Cocola food products ltd
 Keya Cosmetics Ltd
 Akij Food & Beverage Ltd.
 Dhaka Tobacco Industries
 Marico Bangladesh Ltd
 Reckitt Benckiser Bangladesh Ltd.
 KOHINOOR CHEMICAL CO. (BD) LTD
 Ispahani Foods Limited (IFL)
 Bashundhara food and beverage industries limited
 Coca-cola Bangladesh Limited
 Globe Soft Drink Ltd. & AST Beverage Ltd
 Bombay sweets & co. ltd
 British American Tobacco
 Nabisco Biscuit & Bread Factory LTD
 Haque Group of Industries
 Abul Khair Group
 Perfetti van melle (bd) pvt. Ltd
 Prome Agro Foods Ltd
 IFAD AGRO COMPLEX LTD.

2.3 An overview FMCG Company in Bangladesh:

An overview of FMCG Companies in Bangladesh given below according to different segment
of year:

1971-1979:
After liberation of Bangladesh there are many FMCG company are formed since 1971- 1979.

 UNILEVER BANGLADESH
Unilever started its journey in Bangladesh in 1964 with a soap factory was set up at
Chittagong. Unilever Bangladesh’s have more than 10000 people directly or indirectly related
with working framework.

Unilever Bangladesh Product categories are:

Household Care, Fabric Cleaning, Skin Cleansing, Skin Care, Oral Care, Hair Care, Personal
Grooming, Tea based Beverages.

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Unilever Bangladesh Brands:

Wheel, Lux, Lifebuoy, Fair & Lovely, Pond’s, Close Up, Sunsilk, Taaza, Pepsodent, Clear, Vim,
Surf Excel, Rexona, Axe, Dove, & Vaseline. The company was formerly known as Lever
Brothers Bangladesh Ltd. and changed its name in December 2004.

 ACI GROUP:
It is one of the largest Bangladeshi conglomerates. The company operates through three
reportable segments: Pharmaceuticals, Consumer Brands and Agribusiness. It was founded as
the part of Imperial Chemical Industries (ICI) in the East Pakistan in 1968. ACI had been
integrated in Bangladesh in 1973. Mr. M Anis Ud Dowla is the founder of ACI. It has over
5,000 employees.

ACI Foods Ltd

Advanced Chemical Industries (ACI) Limited is one of the leading conglomerates in

Bangladesh, with a multinational heritage. We have a mission to achieve business excellence
through quality by understanding, accepting, meeting and exceeding customer expectations.
We follow International Standards on Quality Management System to ensure consistent
quality of products and services to achieve customer satisfaction.

The necessity of pure food in consumers mind especially in the commodity food business has
pushed ACI to fill up the market demand by producing food products. ACI Foods limited is
engaged in manufacturing, marketing, and distribution food products and condiment under
the brand names of PURE and FUN. Our portfolio covers practically basic spices, mixed spices,
cereals, edible oil, snacks and confectionary categories.

 CITY GROUP:
City Group is a prominent name in the industrial arena of Bangladesh. The Group has over 44
years of experience in the edible oil industry and expanded its wings of production gradually.
At present there are 23 sister concerns, each specializing in different areas of production.
Incorporating Edible Oil, Flour, Daal, Feed, Sugar, Pure Drinking Water, PP woven bag and Seed
Crushing in the product line and integrating vertically; the Group has been in quest of
transforming to a 21st century conglomerate.

A vertically integrated concern having more than 15,000 skilled manpower and with a true
depth of market penetration City Group has the physical advantage of all its mills, factories
and establishments being spread over 330 acres of land in the old part of Dhaka i.e. Gandaria;
expanding industrial belt at Konapara, Demra, and Rupshi, Narayangonj and in Chittagong,
the commercial capital of Bangladesh.

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  BOMBAY SWEETS & CO. LTD
Bombay Sweets & Co. Ltd. boasts an illustrious, decorated past. Established in 1948, it has
been a leader in consumer foods for many decades, both in Bangladesh and abroad.
Although initially the company served its customers from their own outlets, presently the
company has over 200 distributors spread across the country.

In the new millennium, Bombay Sweets has strived to continually introduce quality innovative
products and packaging needed to satisfy ever-changing appetites and tastes. Its full line of
quality snacks currently consists of more than 20 products, consisting of potato, corn and
cereal based products. All are available in a variety of shapes, sizes and flavors. Its dedicated
sales force of more than 300 people focuses on quality retail service for their customers.

Mr. TWIST is especially attractive to youngsters for its unique shape and taste. It is a potato
based premium snack with a beautiful twisty shape and fine texture. Available in Tomato
Paprika flavor.

RING CHIPS is the first ever crisp introduced in Bangladesh by Bombay Sweets in 1986.
Decades later, it is still a favorite. This ring shaped spicy snack will surely satisfy your taste
buds.

JUCY is a fruit drink packed in a unique cool pouch with straw inside. This makes the drink
very hygienic. Children love the taste and the modern look of the pouch.

 RECKITT BENCKISER BANGLADESH LTD

Reckitt Benckiser Bangladesh Ltd. (RB Bangladesh) is a leading UK based multinational
company in Bangladesh. RB (Reckitt Benckiser) is a global leader of consumer goods in health,
hygiene and home products .Reckitt Benckiser started its business operation in Bangladesh
on the 15th of April 1961, under name of “Robinson’s Foods (Pakistan) Limited”. After the
liberation war in 1971, the name of the company was changed to “Robinson’s Foods
(Bangladesh) Limited”. Finally after the merger with Benckiser, in accordance with parent
company, the name of the company was changed to Reckitt Benckiser (Bangladesh) Limited.

Product

- Dettol, Harpic, Mortein, Lizol, Veet, Disprin, Vanish, Trix

 BRITISH AMERICAN TOBACCO:

The presence of British American Tobacco in this part of the world can be traced back to
1910. Beginning the journey as Imperial Tobacco 103 years ago, the Company set up its first
sales depot at Armanitola in Dhaka.

After the partition of India in 1947, Pakistan Tobacco Company was established in 1949. The
first factory in Bangladesh (the then East Pakistan) was setup in 1949 at Fauzdarhat in
Chittagong. In 1965, the second factory of Pakistan Tobacco Company went into production
in Mohakhali, Dhaka. Thereafter it became Bangladesh Tobacco Company Limited in 1972

7
immediately after Bangladesh's independence. In 1998, the Company changed its name and
identity to British American Tobacco Bangladesh (BAT Bangladesh) aligning the corporate
identity with other operating companies in the British American Tobacco Group.

BAT manufacture and market high quality and well established international cigarette brands.
Their current brands are Benson & Hedges, John Player Gold Leaf, Pall Mall, Capstan, Star,
Pilot, Bristol, Derby and Hollywood which are positioned in four segments in the Bangladesh
cigarette market.

 KOHINOOR CHEMICAL COMPANY (BANGLADESH) LTD (KCCL)

Kohinoor Chemical Company (Bangladesh) Limited (KCCL) is popularly known by its legendary
beauty product under the brand "Tibet". For more than half a century Tibet has made its
mark in the hearts of millions. We are the pioneer amongst the soap, cosmetics and toiletries
manufacturing industries of Bangladesh, producing highly value-added products with quality
in the center of focus.

KCCL care for the customers and are determined to count extra mileage to meet their daily
needs. They believe that it is the quality that has kept Tibet going and growing for 55 years.
They produce every product that you need to feel noticed for your standout freshness.

Product of KCCL:

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  COCOLA FOOD PRODUCTS LTD.
Cocola Food Products Ltd. started its journey back in 1973 as Baby Food Products which was
a sole proprietorship. It became a private limited company in 1985.

The company initially produced Cocola candy and toffee. Gradually they started producing
various kinds of biscuits. Cocola was the first company to introduce the use of foil paper in
the food products industry. The foil paper was imported from Singapore, Japan and Korea.
Cocola acquired Sunstar Beverages as a sister concern. Now it has two SBUs; Cocola Foods
and Sunstar Beverages.

 HAQUE GROUP
Haque is one of the largest and oldest biscuit; chips; confectionary; soap and battery
manufacturers in Bangladesh.

Haque is in this business since 1947 started by young Barrister Tamizul Haque as a distributor
of famous British biscuit giant Huntley & Palmers and battery giant Union Carbide. Haque is
pioneer in many segments like Cream Crackers; Bourbon; Sugar Glazed Biscuit; Oven Fresh
Cookies; Chocolate Filled Chips and many more.

Haque has won the Monde Selection Gold Medal several times for quality and brand
reputation of Mr. Cookie. To the consumers Haque is a beacon of faith and trust; competitors
look upon Haque as an example of brilliance in quality and taste.

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  ABUL KHAIR GROUP
Abul Khair Tobacco is the most trusted name in the tobacco industry of Bangladesh. We have
been in the industry since 1953 and have been exporting the best quality tobacco in many
countries of the world. Tobacco was the mother business of Abul Khair Group. The tobacco
division is divided into two parts. One is tobacco growing & processing for domestic use &
export in various countries and the other is cigarette manufacturing & selling to the domestic
market. In 1998 Abul Khair Tobacco started its cigarette manufacturing and selling business.
At domestic market Abul Khair tobacco is in a leading position in low segment cigarette
brand.

 MEGHNA GROUP OF INDUSTRY

Meghna Group of Industries (MGI) is one of the biggest & leading conglomerates of
Bangladesh. With a turnover of USD 2 billion & asset of USD 1 billion, MGI is currently
operating in 32 companies, 30 Industries with more than 15000 employees, 3000 distributors
& 1000 suppliers under its umbrella. The history of Meghna Group of Industries dates back to
1976 when its predecessor Kamal Trading Company was born. The group’s humble debut
occurred with the inception of Meghna Vegetable Oil Industries Ltd in 1989 on a small chunk
of land at Meghnaghat in Narayanganj. Now, the group is running 30 Industrial units on over
350 acres of land. Meghna Group of Industries has been marketing various Fast Moving
Consumer Goods (FMCG), Cement, Commodities, Chemical, Seed Crushing, Fish and Poultry
feed, Power Plant, other bulk and industrial products under the brand name of ‘Fresh', ‘No.1'
and ‘Pure'. Moreover, the group has Ship Building Dockyard, Shipping, Securities, General
Insurance, Media, Aviation and many other businesses. The Group has more than 35 years of
national & global experience. In Bangladesh one in every three households use MGI brands
and products. MGI has started to spread its footprints outside Bangladesh, especially in the
Middle East, Southeast Asia, Europe, North and South America through exporting its various
products. MGI has been very aggressive in its expansion plan & emerged as the largest
investor in industrial development of Bangladesh for three consecutive years.

Meghna Group of Industries has wide range of consumer goods under the umbrella brand
Fresh. Fresh symbolizes freshness, purity, quality and trust. Fresh is committed to quality
compliance and serving customers at affordable price. Products under the 'Fresh' Brand are -
Full Cream Milk Powder, Soyabean Oil, Mineral Water, Sugar, Flour, Spices (Chili, Turmeric,
Coriander and Cumin Powder), Tea, Iodized Salt, Palm Oil, Mustard Oil, Cement and Feeds.

 OLYMPIC INDUSTRIES LIMITED BANGLADESH

Founded in 1979, Olympic Industries is the largest manufacturer, distributor and marketer of
biscuits in Bangladesh. What makes Olympic so popular is the quality of our products. We
understand that our consumers have high expectations of us, and that their loyalty depends
on it. As the market leader in the biscuits industry, we have achieved what we have by

10
staying true to our core values and focusing on our consumers. To learn more about us,
please visit our About Us page by clicking on the link below.

Energy Plus, Tip and Nutty are three of the most widely sold biscuits in Bangladesh and are all
premier constituents of our product portfolio. Over the past two decades, we’ve introduced
new, unique and innovative products never offered before in Bangladesh. And our entire
team is working hard to cook up new recipes to satisfy your every craving. Come check out
our entire range of products on our Brands page. Olympic is publicly listed on both national
stock exchanges in Bangladesh. And we’re also a constituent of the Dhaka Stock Exchange’s
DSE30 index.

 AARONG
Aarong – Bengali for ‘village fair’ – is Bangladesh’s most popular lifestyle retail chain. This
ethical brand began in 1978 as a humble means to empower rural artisans to rise above
poverty. Today, with 15 retail stores across Bangladesh and over 100 fashion and lifestyle
product lines, Aarong supports 65,000 artisans with fair terms of trade. Revolutionizing the
retail industry with high standards for quality and artistry, this iconic brand blends the
traditional with the contemporary in ways that never cease to win consumer appeal both at
home and abroad.

In 1976, when BRAC– the world’s largest development organization – engaged a small
number of rural women to produce crafts, their only buyers were a few scattered retailers in
Dhaka. Weeks, even months would pass between supply and payment, until BRAC intervened
and established Aarong to pay the rural women for their goods on time. Over the past four
decades, Aarong has carved out a unique market segment for handicrafts, reviving
Bangladesh’s rich heritage and impacting the lives of more than 325,000 people through 850
small entrepreneurs and the Ayesha Abed Foundation. The foundation acts as Aarong’s
production hub, where artisans find employment and access to BRAC’s holistic support
including, maternal health care, hygiene awareness and subsidized latrines, micro-credit,
legal aid, day care and education for their children.

 DANISH FOODS LTD.

Danish Foods Ltd. is one of the leading food and beverage producing and marketing company
Bangladesh and a part of Partex Star Group. It produces several types of foods and beverages
and market under the brand name of Danish Foods Ltd.

Danish Foods Ltd. is committed to conduct the business in such a way that demonstrates the
highest ethical standards. The company believes that integrity is the imperative utility to
succeed. Danish Foods Ltd. is serving the best for the consumers to uphold the superiority in
the market. It also believes that success depends on customers. This is the primary criteria to
fulfillment of customer’s needs.

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Product of Danish Foods Ltd:

 GLAXO (GSK) BANGLADESH LTD.

GlaxoSmithKline (GSK) Bangladesh Limited carries with it an enviable image and reputation
for the past 6 decades. In 1949 the Company commenced its journey in Bangladesh with its’
corporate identity as Glaxo in Chittagong as an importer of products from the Glaxo Group
Companies. It started spreading its spectrum from being an importer to a manufacturer by
establishing its own manufacturing unit at Chittagong in 1967. The facility till date is
considered as one of the Centre’s of Excellence in Global Manufacturing & Supply Network of
the Group.

In Bangladesh, GSK's consumer brands are the major players in the health food drink
category. The powerful portfolio includes Horlicks, Boost, Maltova and Viva which owns an
enviable market share of 85%. Among them, Horlicks, a trusted & heritage brand, enjoys 76%
market share. Horlicks which has been re-launched in 2008, following intense market
research and product development activities, with an improved formulation is clinically
tested to make children “Taller, Sharper & Stronger".

1980-1989:
 TRANSCOM BEVERAGE LTD.
Transcom Group Limited is a Bangladeshi business conglomerate. The businesses under this
group include beverage, pharmaceuticals, newspaper, radio channel, electronics, foods etc.
This group employs more than 10,000 people. Transcom Group is one of the oldest and
biggest companies in Bangladesh. Their operation in Bangladesh initially started in 1885 as a
tea plantation company.

Some of the brands managed by the group include: Pepsi, 7Up, Mirinda, Mountain Dew, Diet
Pepsi, 7up Light, Aquafina, Sting, Evervess, KFC, Pizza Hut, Phillips N.V, Whirlpool, Maybeline,
Garnier, Heinz, Frito-Lay, Lindt, Servier, Novo Nordisk.

12
  PRAN-RFL GROUP
PRAN’ has started its operation in 1981 as a processors fruit and vegetable in Bangladesh.
Over the years, the company has not only grown in stature but also contributed significantly
to the overall socio-economic development of the country.

“PRAN” is currently one of the most admired food & beverages brands among the millions of
people of Bangladesh and other 106 countries of the world where PRAN Products are
regularly being exported.

All the PRAN products are produced as per international standards maintaining highest level
of quality at every stages of its production process.

PRAN is currently producing more than 200 food products under 10 different categories i.e.
Juices, Drinks, Mineral Water, Bakery, Carbonated beverages, Snacks, Culinary,
Confectionery, Biscuits & Dairy. The company has adopted ISO 9001 as a guiding principle of
its management system. The company is complaint to HACCP & certified with HALAL which
ensures that only the best quality products are reaches to the consumers table across the
Globe.

PRAN takes a comprehensive approach to all kinds of agro processed food products,
considering all of the ways their lives can be enriched through ensuring hygienic and quality
food products. Their product category are: Juice, Drink, Bakery, Carbonated Soft Drink, Snacks,
Culinary, Confectionary, Biscuits and Dairy product.

 SAJEEB GROUP
Sajeeb group of companies, one of the largest business groups of the country, started its
operation in 1982 and has been operating successfully since then. Over the years the group
has extended its business functionalities in different industry sectors with its several sister
concerns contributing to the overall socio economic development of the country.

Sajeeb have employed state of the art technology in processing our products and use 100%
food graded packaging to ensure the best possible quality. Recently, they have attained
“100% Halal certification” for our foods and drinks products from Halal Bangladesh Services
(HBS).Along with our own popular brand name Sajeeb, they are also engaged in
manufacturing & marketing of the products of world famous brands like Shezan, Tang, Kolson,
Nocilla, BournVita and Oreo. Under the franchise of famous Shezan International Limited,
they manufacture and market Shezan products in our country. They also manufacture
country’s most popular Kolson Macaroni, Noodles and Vermicelli under the franchise of and
technical collaboration with Kolson Food LLC (Dubai). They high quality products have earned
a huge accolade in both the local and foreign markets.

 COCA-COLA BANGLADESH LTD

For generations, the simple pleasure of drinking Coca-Cola has been associated with special
times, special places and timeless moments but also with the satisfying experience of
everyday life. That is the magic of Coke.
13
Coca-Cola, the brand…is the heart of our company. It has always been and always will be.
Coca-Cola, Fanta and Sprite create the magic to provide consumers with special moments.
Consumers of all ages want great tasting beverages that also provide nutrients for healthy
growth and to make them feel their best. Coca-Cola compliments and shares the best
moments of all consumers! Abdul Monem Beverage Limited is the authorized bottler of Coca-
Cola, Fanta and Sprite. The bottling operation started after acquiring the plant of K. Rahman
& Company in 1982. In 1987 the company made an aggressive move to expand the market by
establishing a new bottling plant of 450 bottles per minute (BPM) capacity in Comilla. With
this move the company immediately gained the market leadership position from the
competitors. Strategic planning in further capacity building, investment in logistics and
support services as well as aggressive marketing approach rewarded the enterprise with
dividends in better market share and product availability across the territory.

In 1990 the company was awarded the President’s Turtle Award by the President of The
Coca-Cola Company in recognition of its contribution to positioning the brand. This is the
most prestigious reward for bottlers by Coca-Cola. In 1997 the company established another
bottling plant at Chittagong. This state of the art bottling plant of 650 BPM capacities is the
most modern plant in the country, equipped with straight-line technology from Germany.
This plant was established to expand the market further and to deliver products at every
consumer’s doorstep, even to the most remote areas of Bangladesh.

Apart from glass bottles (RGB) Coke, Fanta and Sprite is also available in PET and cans also.

1990-1999:
 NESTLE BANGLADESH
Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé.Nestle is
today the world’s leading nutrition, health and wellness Company.Nestlé Bangladesh Limited
started its first commercial production in Bangladesh in 1994.Factory of Nestlé in Bangladesh
situated at Sripur.500 people directly working in Nestle and indirectly more than 1000.

Products From Nestle:

Maggi Noodles. Maggi Shaad-e-Magic, Nescafe, Nestea, Nesfruta, Coffee-Mate, Nido,

Cornflakes, Koko Krunch, Munch and various other baby food.

 PARTEX BEVARAGE LTD.

Partex Beverage Limited (PBL) began its commercial production in the year 1997, as the sole
bottler of Royal Crown Cola Co, USA. It was the first beverage brand to enter the Bangladesh
market after the commonly known Coke and Pepsi.

PBL started bottling in the traditional glass bottles, but soon started bottling all their
beverage products in PET Bottles. They were the pioneers of this kind of packaging in
Bangladesh and hence captured a big slice of the beverage market. At present, there are
14
more than 7 companies producing carbonated beverages Bangladesh, but PBL can proudly
say that they are 2nd largest market share holder in the carbonated beverage market in
Bangladesh.

In the year 2000, PBL began to expand by backward integration by producing their own PET
preforms and were the only bottlers doing this at that time, for a number of years. PBL now
has the largest bottle blowing and preform making capacity in Bangladesh.

PBL launched its drinking water MUM in the year 2001. This product instantly became the
market leader in the water market, and still holds the highest market share till date. MUM
has now become one of the strongest and most trusted brands in Bangladesh.

Distribution is one of PBL’s greatest strengths; it has more than a hundred distributors
around the country, serving more than 10 Million outlets in rural and urban areas. PBL’s
products have also started going beyond borders, and they plan to increase their footprint in
the year to come.

Innovation and pro-activeness have always been the vital drivers of PBL’s success. PBL’s
mission has always been to provide value at an affordable cost, progress in diversity, and to
contribute to the growth of industrialization in Bangladesh.

 NEW ZEALAND DAIRY PRODUCTS BANGLADESH LTD. (NZDP)

New Zealand Dairy Products Bangladesh Ltd. (NZDP) was incorporated in Bangladesh in the
year of 1992 as an Operating Company of Fonterra Ltd, the world leader in the dairy industry.
New Zealand Dairy has a rich basket of consumer brands such as Diploma, Anchor, Red Cow,
Red Cow Butter Oil, Farmland, Farmland Gold and Shape Up. The company has been able to
draw the attention of the consumers from its very inception through offering quality
products. Sourcing quality raw materials from the best available sources, using state of the
art technology, maintaining nationwide strong distribution network, recruiting dedicated
skilled resources etc. have given the company a decisive position in the industry. NZDP
believes in long-term partnership with its stakeholders and its goal is to serve the consumers
with quality products that deliver not only taste but also convenient and affordable. In 2014,
the company has stepped into the new arena of the non-dairy food business. In the non-dairy
category, NZDP has brought Doodles Instant Noodles & Doodles Stick Noodles. The company
has also crackers (Brands: Poppers, Detos & Krackers King).The company’s obsession towards
quality has led it to achieve the ISO 22000:2005 for Food Safety Management System in the
year 2009.

 KAZI FARMS LIMITED

Kazi Farms Limited was established in 1996 as a hatchery for imported eggs; the following
year it started its own parent farms. In 2004 production started in our grand-parent (GP)
farms which was responsible for Bangladesh's first exports of hatching eggs and day-old
chicks in 2004. In that year, our Managing Director, Kazi Zahedul Hasan, was named
Businessperson of the Year by the Daily Star/DHL Business Awards.

15
Products:

 Broiler parent chicks and broiler chicks:

 Layer chicks and table eggs:
 Feed

 SQUARE TOILETRIES LTD.

Square Toiletries Ltd. is one of the largest fast-moving consumer goods (FMCG) companies in
Bangladesh with a turnover of USD 110 million. The company is marketing 20 brands in
different segments like health & hygiene, oral care, hair care, fabric care etc. Major Brands of
the company are Jui, Meril, Meril Baby, Supermom, Revive, Chaka, Chamak, Senora, White,
Plus, Magic, Kool, Xpel, Spring, Sepnil, Zerocal, Select Plus, Shakti, Total Clean, Maxclean,
Madina. Square is also exporting its finished products to 13 countries- UAE, Germany, UK,
Australia, Malaysia etc.

Square Toiletries Ltd.

Type: Private

Industry: Consumer goods

Founded: 1994

Headquarters: Mohakhali, Dhaka, Bangladesh

 BASHUNDHARA PAPER MILLS LIMITED

Bashundhara Paper Mills Limited, Unit-3 – a sister concern of Bashundhara Group – formerly
known as Bashundhara Tissue Industries Limited, was set up in 1995 as the country’s first
basic tissue manufacturing factory at the face of growing popularity of tissue with fast
changing urban lifestyle and elevation of living standards as a whole. It is now manufacturing
wide range of products including facial tissue, pocket tissue, wet tissue, green tissue, toilet
tissue, kitchen towel, hard tissue etc. The import-substitute industry has attained ISO
9002:1994 certification for its quality management system and ISO 14001:2004 certification
for its environment management system.

 KEYA COSMETICS LTD

Keya Group (KG) is one of the most well-known conglomerates in Bangladesh. Boasting 3
spinning mills, KG holds a leading position in the manufacturing and exporting of knitted
garments. At present, KG operates 6 industries and employs more than 10000 people. For
more than 20 years KG has proudly made its presence felt, both in Bangladesh and abroad in
countries like Europe, Australia, China, USA and other countries in the Southeast Asian
region.

16
Incorporated in the year 1996, Keya Cosmetics Ltd is one of the leading cosmetics
manufacturing companies in Bangladesh, and a popular brand name for superior quality
products available at affordable prices.

Keya Cosmetics Ltd. has a wide array of products which are being marketed both locally and
abroad: Keya Super Beauty Soap, Keya Glycerin Laundry Soap, Keya Ball Soap, Keya Prickly
Heat Powder, Keya Ice Magic Powder, Keya Lifeguard Soap, Keya Active Tooth Paste, Keya
Shaving Cream, Super Salon Lather Shaving Cream, Keya Petroleum Jelly, Keya Lip Gel, Keya
Glycerin, Keya Natural Care Shampoo, Keya Dandruff Control Shampoo, Keya Lemon
Detergent powder, Keya White Plus Detergent powder, Super Excel Detergent powder, Soap
Noodles (basic raw material for soap) and Refined Glycerin (pharmacy grade).

 PROME AGRO FOODS LTD

Prome Agro Foods Ltd. is a Bangladeshi owned leading producer and innovator of high
quality, category-defining branded 100% Halal food products, with a proud history that dates
back to 1995.

We have developed a continuous maintenance program to sustain our fleet operating at the
highest level. We are certified to the ISO 9001:2008 for Quality Management Systems and
ISO 22000:2005 for Food Safety Management Systems and we are committed to delivering
Quality Safe Food to all our Customers

We are passionate about food and our portfolio of more than 45 iconic food brands are
trusted by consumers across Bangladesh and rest of the world for their quality,
wholesomeness, nutrition and fun.

Many of our brands are category leaders such as Prome Juices, Prome Cereal products,
Prome Instant Tea, Prome Snacks, Prome Confectionery, Prome powder drinks, Prome spices.

An unwavering commitment to innovation and product excellence is part of our DNA and this
approach will continue to drive the future growth of our brands and our business.

 ISPAHANI FOODS LIMITED (IFL)

Established in 1999, manufactures a wide and varied range of snack food products. IFL is a
subsidiary of M.M. Ispahani Ltd and is based at Ispahani Foods Complex, Konabari,
Gazipur,Dhaka. Equipped with the most modern machinery, our food products are
hygienically weighed, packed and sealed in a fully automated process which is supervised by
a team of experts.

Products

Biscuits: IFL manufactures delicious Cookies and Toast Biscuits under the brand names
“Cookie Man” and “Bakery Fresh”. IFL also manufactures biscuits under its“Little
Bite”,“Milkose”, and “Ispahani Orange” brands.

17
Potato Crackers

Our popular and high selling potato crackers are sold in the market as “Mighty Chips”.

Powder Drinks

IFL manufacturers the extremely popular “ISPI”powder drinks brand.We have three flavours:
orange, mango and pineapple. Today Ispahani Foods Ltd is one of the leading manufacturers
of snack foods, biscuits, and powder drinks in Bangladesh, with a loyal and ever growing
consumer base.

2000-2009:
 MARICO BANGLADESH LTD
Marico Bangladesh Limited is amongst the top 3 FMCG MNC companies and a trusted brand
in beauty and wellness space in Bangladesh. The company touches the lives of 1 out of every
2 Bangladeshis with an array of brands in various categories, including hair nourishment,
edible oil and male grooming, through a strong distribution network that reaches more than
790,000 outlets throughout the country. Its flagship brand, Parachute completed its journey
of 12 successful years in Bangladesh, with an ever-growing base of loyal consumers in
October 2013. The brand has been amongst top 10 most trusted brands continuously since
2009 and was awarded the title of "Best Brand" by Bangladesh Brand Forum and Nielsen in
2011. Over the years, the company has strengthened its brand portfolio, most notably
through the expansion of its VAHO (Value Added Hair Oil) segment. The VAHO segment now
consists of several popular brands such as Parachute Beliphool Lite, Parachute Advansed,
Parachute Cooling Hair Oil and Nihar Marico Bangladesh Limited also leads the powdered hair
dye market with the Hair Code brand.The company continued to diversify its portfolio with
the introduction of Saffola Active (a healthy edible oil) and Set Wet Deodorants in 2013. Our
journey in Bangladesh is as follow:

- Incorporated in 1999
- Started operations in 2000

- Marico Bangladesh listed on Dhaka and Chittagong Stock Exchange in 2009

-Launched Haircode Hair Dye in 2009 and achieved a market share of over 15% in its first year

-Lauched Parachute Advansed Cooling Hail Oil in 2011

-Launched Saffola Active Edible Oil, Livon Silky Potion, Set Wet Deodorants and Livon

-Launched Nihar shanty Badam amla and Hair Code Keshkala in 2014.

18
  SQUARE CONSUMER PRODUCTS LIMITED
Square Consumer Products Limited, has started its journey in 2000 as a member of Square
Group, the leading corporate house in Bangladesh. Within a short span of time, it has been
able to create a strong foothold in the market through its quality producsts and customer
services. For its obsession with quality management, the company had obtained the
international quality standard ISO 9001 in 2005. Strong commitment to quality, adoption of
advanced technology, stress on human resource development, focus on continuous
improvement and introduction of new products for the growing markets have given the
company a decisive position in the industry. In 2010, the company achieved ISO 22000 for its
food safety management system. More than a decade later, in 1st September 2014 it
reinvented as Square Food & Beverage Ltd.

Square Food & Beverage Ltd. has introduced three popular brands in the market namely
Radhuni, Ruchi and Chashi. Radhuni is the flagship brand of the company. Just after its
introduction, Radhuni drew the attention of housewives who demanded convenience and
time saving cooking. The product range of Radhuni is enriched with basic spices, mixed
spices, cereals & pulses based products and edible oil. On the other hand, Ruchi is providing
ready-to-eat snacks like Chanachur, Fried Dal, Banana Chips, Potato Crackers, Muri, Jhalmuri,
Sauce, Ketchup, Jhuribhaja, Peanut, Chutney, Pickles and Honey. Ruchi has won the heart of
the youngsters for its healthy, tasty & innovative ground breaking products.

 AKIJ FOOD AND BEVERAGE LTD

Akij Food & Beverage Ltd. (AFBL) a unit of Akij Group started its operation in the year 2006.
AFBL manufactures a wide range of Snacks and Beverage for both National & International
market alike. AFBL is a project worth $ 70 million& is funded by the parental company Akij
Group.

There are various types of drink. Mojo is the brand name of cola, Lemu is the brand name of
Lemon and Speed is the brand name of energy drink. Immediately after the introduction of
the brand it became very popular among its consumer because of the high quality and
intensive distribution in every nook and corner of the country.

Checky Monkey is the brand name of banana chips produced from this factory. It also is
becoming popular chips in Bangladesh.

 GLOBE SOFT DRINK BEVERAGE LTD

With the pharmaceutical background, Globe Soft Drink Ltd. was introduced in the beverage
market in the year 2002. Uro was the own prime brand to start the race, which
revolutionized the market of Soft drinks by offering three assorted range of flavor, cola,
lemon and orange. Lemon was the first brand introduced in the Bangladesh market as
carbonated soft drinks and won the customers’ heart.

This success inspired the company to introduce new soda drink Fizz Up, mineral water Alma
which was also become very popular among the country.

19
Globe started the export in 2007. With the top leading position in Bangladesh market, our
Royal Tiger Energy Drinks, Uro Cola, Uro Lemon, Uro Orange, Fizz Up also have gaining a
great market in Asian Subcontinents, Middle East, and African regions of the world. Now the
company is preparing to export our brand in Europe and Australia. Very recent Globe has
introduced fresh mango juice Mangolee, which has been taking the market by storm for its
originality, 100% real pulp filled in attractive PET bottle with different pack size.

In order to produce an appealing and refreshing beverage, GSDL & AST Beverage will
continue to conduct extreme research to innovate new brands in local and Global market.

 ACME AGROVET AND BEVERAGE LTD.

With a vision to ensure the health, vigor and happiness for all, ACME began its journey in
1954 with a small pharmaceutical production facility. In the year 2005, ACME celebrated its
50th anniversary of establishment.

Over a little more than 50 years, ACME has become one of the largest conglomerates in the
country. In pursuit of excellence, ACME flourished its business in various sectors including
pharmaceutical, FMCG/ Agrovet and Beverages, Textile and information Technology. With a
yearly turnover of $70m, and work force of more than 3200 ACME has become a
phenomenon in the country.

Using the experience of manufacturing ethical medicine, ACME ventured to establish THE
ACME AGROVET AND BEVERAGES LTD. in 2005. Primarily it started with a small range of
products like ACME mango and orange juice, which is followed by the introduction of ACME
mineral water, ACME Spice and ACME Tea. Currently THE ACME AGROVET AND BEVERAGES
LTD. is pondering to introduce a wide range of products, some of which are under process of
development.

 PERFETTI VANMELLE BD.PVT.LTD.

Perfetti Van Melle is a privately held Italian global manufacturer of confectionery and gum. It
was formed in 2001 with the acquisition of Van Melle of the Netherlands, by the Italian group
Perfetti of Italy and having its corporate headquarters in Lainate (Milan), Italy. Perfetti Van
Melle bills itself as the third largest confectionery manufacturer in the world after Kraft Foods
(owners of Cadbury plc) and Mars, Incorporated (owners of Wrigley). It employs 17,000
people via 30 subsidiary companies and distributes its products in over 130 countries.

The company owns a major subsidiary in the United States, (Perfetti Van Melle USA), as well
as several others in large markets around the world.

 IFAD AGRO COMPLEX LTD.

IFAD AGRO COMPLEX LTD. is situated in Bhaluka, Mymensingh and has been established in
2004. Since its inception, the company has worked to establish itself as one of the most
advanced and largest fish hatcheries in Bangladesh. It has the capacity to produce 5000 KGs
of Renu (fish eggs) per season. Over an expanse of 400 acres, the project also capacitates the
production of 10 million fingerlings and as well as 1500 tons per year in fish culture for local
20
consumption. With a strong foothold as the one of the industry leaders, the company has
already received accreditation from Cornell University and the Thai Fish Research Institute.

Our future enterprises include an establishment of a poultry/fish feed mill with a capacity of
producing 250 tons of feed per day and we are also in the process of establishing a poultry
hatchery in the near future.

2010-2016:
 KEYA AGRO PROCESS
Keya Agro Process Ltd. (KAPL) is a self-dependent, non-political and a non-government
organization established on 9 February 2012. The main mission for Keya Agro Process Ltd is
to produce high quality products like100% pure milk and sweets and100% organic vegetables
and it is currently operational in 6 different sectors.

The main objective of KAPL is to ensure that everyone has access to pure quality food at
reasonable and affordable prices. KAPL is also focused on decreasing the environmental
stress caused by chemical fertilizers by using organic ones instead and by planting medicinal
plants to enhance the quality of life of local people.

KAYA’S DIFFERENT SECTORS

Dairy Fram

The Keya Dairy Farm was started with a sale of 3 Kg of 100% pure milk and up until December
2014, this number has increased to 940 Kg. The aim is to produce organic milk by feeding
organic, unadulterated food to the dairy cattle. At present there are 200 cows at the dairy
farm (milking cow, dry cow, pregnant cow, heifer, bull etc).

Vegetable Garden

The Keya Vegetable garden produces 100% organic vegetables that are grown without using
chemical fertilizers and pesticides. At present, these organic produce can be purchased from
vegetable stalls set up just outside the factory premises.

Nursery

Now our nursery is under development. But end of the 2014 we have start our plants selling.

Goat Farm

This sector is also under development. The main objectives are to produce and provide 100%
pure goat milk to consumers.

21
Pisciculture

This is a new addition to Keya Agro Process Ltd. supplementing the fresh vegetables and
dairy, KAPL now cultivates fish in order to provide fresh, unadulterated fish for consumption.

 BASHUNDHARA FOOD AND BEVERAGE INDUSTRIES LTD

Ahmed Akbar Sobhan- a visionary entrepreneur and a dynamic businessman, is the founder
of Bashundhara Group - one of the largest business conglomerates of Bangladesh. Driven by
the tremendous success of its first concern “East West Property Development (Pvt.) Ltd”, a
real estate venture, Bashundhara invested in diverse fields of manufacturing and trading. The
Group now has over 20 major operative concerns located in different areas of the country. It
has come a long way in reaching its ambition by ensuring the customer’s needs are always
met.

Bashundhara has further tied its bonding with the people and the country introducing its
latest venture, Bashundhara Food & Beverage Industries Ltd. (BFBIL). BFBIL-the home of
nutrition, began its journey with a vision to meet the growing demand for food & beverage
items of the country.

BFBIL’s mission is to produce high-quality food products that will earn the confidence and
trust of consumers by enhancing their quality of life. It is BFBIL’s promise to its customers to
ensure availability of high quality products at an affordable price. As a socially responsible
company, it plans to produce FMCG that meet international health standards and adhere to
eco-friendly packaging requirements. It aims to address the growing demand of food items in
the country using environmentally sound solutions. This commitment to delivering superior
products to customers using environmentally friendly practices sets BFBIL apart from other
companies and will ensure its leading position in the FMCG arena.

It’s Product

 Bashundhara-Atta
 Bashundhara Suji

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 CHAPTER-3
FINDINGS AND ANALYSIS
According to Wikipedia, FMCG are the products that are sold quickly at relatively low prices.
Though the profit made on FMCG products is relatively small in terms of retail sales, they are
generally sold in large quantities in wholesale. So, the cumulative profit on such products can
be large. Brand Careers Glossary states that FMCG is an expression used to describe
frequently purchased, low cost, low involvement, convenient consumer items, i.e., snack
foods, cleaning products, stationeries, toiletries, etc. The main characteristics of FMCG from
the consumers’ perspective are—frequent purchase, low involvement (little or no effort to
choose the item—products with strong brand loyalty are exceptions to this rule), and low
price. Additionally, from the marketers’ angle, the main characteristics of FMCG are—high
volumes, low contribution margins, extensive distribution networks and high stock turnover
(Majumdar, 2004).

3.1 Structural Analysis of FMCG Industry

Typically, a consumer buys these goods at least once a month. The sector covers a wide
gamut of products such as detergents, toilet soaps, toothpaste, shampoos, creams, powders,
food products, confectioneries, beverages, and cigarettes. Typical characteristics of FMCG
products are: -

1. The products often cater to 3 very distinct but usually wanted for aspects - necessity,
comfort, luxury. They meet the demands of the entire cross section of population. Price and
income elasticity of demand varies across products and consumers.

2. Individual items are of small value (small SKU's) although all FMCG products put together
account for a significant part of the consumer's budget.

3. The consumer spends little time on the purchase decision. He seldom ever looks at the
technical specifications. Brand loyalties or recommendations of reliable retailer/ dealer drive
purchase decisions.

4. Limited inventory of these products (many of which are perishable) are kept by consumer
and prefers to purchase them frequently, as and when required.

5. Brand switching is often induced by heavy advertisement, recommendation of the retailer

or word of mouth.

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3.2 SWOT Analysis of FMCG sector
Strengths

 Low operational costs

 Presence of established distribution networks in both urban and rural areas
 Presence of well-known brands in FMCG sector
Weaknesses

Lower scope of investing in technology and achieving economies of scale, especially

in small sectors
 Low exports levels
 Me-too products illegally mimic the labels of the established brands. These
products narrow the scope of FMCG products in rural and semi-urban market.
Opportunities

 Untapped rural market

 Rising income levels, i.e. increase in purchasing power of consumers
 Large domestic market
 Export potential
 High consumer goods spending
Threats

 Removal of import restrictions resulting in replacing of domestic brands

 The unstable political condition
 Fake products under different brand names.
 Easy to enter foreign company

3.3 Distinguishing features of Bangladeshi FMCG Business

FMCG companies sell their products directly to consumers. Major features that distinguish
this sector from the others include the following: -

1. Design and Manufacturing

 Low Capital Intensity - Most product categories in FMCG require relatively minor
investment in plant and machinery and other fixed assets. Also, the business has low
working capital intensity as bulk of sales from manufacturing take place on a cash
basis.
 Technology - Basic technology for manufacturing is easily available. Also, technology
for most products has been fairly stable. Modifications and improvements rarely
change the basic process.
 Third-party Manufacturing - Manufacturing of products by third party vendors is quite
common. Benefits associated with third party manufacturing include (1) flexibility in

24
 production and inventory planning; (2) flexibility in controlling labor costs; and (3)
logistics - sometimes it’s essential to get certain products manufactured near the
market.

2. Marketing and Distribution

Marketing function is sacrosanct in case of FMCG companies. Major features of the
marketing function include the following: -

 High Initial Launch Cost - New products require a large front-ended investment in
product development, market research, test marketing and launch. Creating
awareness and develop franchise for a new brand requires enormous initial
expenditure on launch advertisements, free samples and product promotions. Launch
costs are as high as 50-100% of revenue in the first year. For established brands,
advertisement expenditure varies from 5 - 12% depending on the categories.
 Limited Mass Media Options - The challenge associated with the launch and/or brand-
building initiatives is that few no mass media options. TV reaches 67% of urban
consumers and 35% of rural consumers. Alternatives like wall paintings, theatres,
video vehicles, special packaging and consumer promotions become an expensive but
required activity associated with a successful FMCG.
 Huge Distribution Network - Bangladesh is highly populated country. It is the 8th
largest marketplace in the world. So most of the largest brand as well as local brand
are available in the market. This makes logistics particularly for new players extremely
difficult. It also makes new product launches difficult since retailers are reluctant to
allocate resources and time to slow moving products. Critical factors for success are
the ability to build, develop, and maintain a robust distribution network.

3. Competition
 Significant Presence of Unorganized Sector - Factors that enable small, unorganized
players with local presence to flourish include the following:
 Basic technology for most products is fairly simple and easily available.
 The small-scale sector in Bangladesh enjoys exemption/ lower rates of excise duty,
sales tax etc. This makes them more price competitive vis-à-vis the organized sector.
 A highly scattered market and poor transport infrastructure limits the ability of MNCs
and national players to reach out to remote rural areas and small towns.
 Low brand awareness enables local players to market their spurious look-alike brands.
 Lower overheads due to limited geography, family management, focused product
lines and minimal expenditure on marketing.

25
3.4 Problems of FMCG sector in Bangladesh:
There are several problems are exits FMCG sector in Bangladesh. Most of the FMCG
Company cannot reach to their target group of customer due to this problems. Such as:-

1. Lack of Research and Development: Most of our company have not any R&D
department. So they cannot innovate any new brand product. And this is a big
problem of our industry.
2. Highly competitive market: Our market is highly competitive. Most of the big
multinational company are available in our market. There are a large number of
brand category are exit for a single product. So most of the local MFCG Company of
our country are unable to convince their potential customer toward their product.
3. Availability of fake brand product: This is a big problem of FMCG sector in our
country. There are some corrupt people are produced fake Hygienic brand product
and distribute those goods in the market. As a result a consumer are going to confuse
to identify the original product.
4. Lack of brand loyalty: in our country there have a very small brand loyalty among the
customer on FMCG good. So this is failure factors of this industry that the most of the
company cannot create brand loyalty of their product.
5. The unstable political condition: the unstable political condition may a big reason for
failure the FMCG sector in Bangladesh. When political issues are start such as
HORTAL, OBORODH etc. the whole distribution channel are broken.
6. Lack of accountability of regulatory authority: there are no accountability or any role
of our regulatory authority to prevent fake product or illegal business.
7. Easy to enter: In our country there are a lack of entry barrier for foreign company. So
this is problem
8. Comparatively low salary structure of the employee of this sector: In our country the
salary structure of the employee of FMCG Company is comparatively low then other
sector. So it create dissatisfactions among the employees.
9. Potential communication: This FMCG market needs lot of promotional
communication in the market. It is an expense for the management. Every
management should understand how brand triggers sales and they should respond
accordingly. This has been the problem of the local companies where they are falling
back of the MNCs like Unilever who are doing it better.
10. Traditional approach of marketing: Most of our local company are followed traditional
marketing system. It should be updated otherwise they cannot reach to their
customer.
11. Lack of e-commerce based business: Now a days people are very busy on their work.
So they do not have the time to go to market for shopping. So in this time the online
based shopping will be the problem solver for them. But in our country online base
grocery shop are not so developed.

26
 12. Unavailability of the brand: When consumers do not find their preferred FMCG
brands in the store, they generally switch to other brands. This factor is the second
top influential element that affects to change the consumer brand preference in case
of FMCG products. Generally, all FMCG brands, from any particular product category,
offer somewhat same type of product. So, consumers do not hesitate to buy another
brand in case of unavailability of brand.
13. Unavailability of the brand product in rural market: In our country branded product
cannot found in the rural market. But a large number of potential customer are in the
rural area. It its very wrong concept to underestimate the purchasing power of rural
people.
14. Availability of illegal product in the market: Availability of illegal product in the market
is the big threats for whole FMCG industry. Illegally entered product are
comparatively low price. So it destroy the market stability.
15. Technology: Most of our local FMCG Company are not so rich in technological
sectors. Many company are produce their product manually. So this is problem of
this sector.
16. Variety-Seeking Behavior: Consumers’ tendency to seek variety at the time of actual
purchase constantly affects the brand switching in case of FMCG. When consumers
look for variety, they definitely try some new brands.
17. Product Features: Generally, all the FMCG brands offer somewhat same features for
the consumers. So there is no way to clearly distinguish the difference among the
brands. Therefore, any attractive or new feature always persuade consumer to try
that brand.

3.5 Prospects and opportunities of FMCG sector in Bangladesh:

1. Large number of population: Our country is a highly populated country. So we can sell
whatever we want by proper strategic planning and market research.
2. Developing rural market: Our rural market are not so developed. So it is a big
opportunities for FMCG Company to capture this market and make a strong position.
3. Increasing purchasing power of customer/ increasing income: Now a days in our
country the income level of our people are rapidly increasing. So this is a good sign
for FMCG Company in our country.
4. Government cooperation: Currently, the government is giving priority in expanding
and promoting local agro-based business in the country. This is a huge advantage to
any Agrovet business.
5. Availability of Bank loan: The bank loans regarding the Agrovet industry has
decreased due to government intercept to encourage the business.
6. Social changes: The society is changing. People are becoming very conscious about
what they are consuming. This is a good prospect for beverage industry. Now-a-days,
people lack interest in drinks like Coke, Pepsi and are more inclined towards having

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 juice, tea and when they are outside, having mineral water. May be now the rate is
very low, but it is increasing. It shows the prospect for FMCG products.
7. Dual income family: The number of dual income families is increasing at an alarming
rate. The lifestyle of people is becoming faster and this leaves them with minimum
time to cook. Therefore, it is a huge opportunity for spices market.
8. Productive land: Our country is rich with natural fruits and productive land. This can
be used as a source of our raw materials needed for the manufacturing of FMCG
products. We can build ways to production in our own country.
9. Globalization: Globalization is a major factor for us to increase our market scope in
the international arena. For Globalization, it is much easier now to enter foreign
market and increase our exports to earn higher margin. It would also enable us to set
up our office premises and our manufacturing plant elsewhere where it would be
sustainable for us to create an MNC.
10. Supporting industry: In our country, the supporting industries are also growing at a
faster rate. There is more number of local TV channels going international, new
competition in the advertising, market tension, and other factors as well. These
things would help us in our reach to our customers and also in other part of our
business, for example, more number of TV channels and newspapers would mean
more promotional activities and decreasing advertising cost.

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 CHAPTER-4
RECOMMENDATION AND CONCLUSION

4.1 Recommendation:
Based on the findings of this study, some recommendations are prescribed below. These
recommendations will be useful if aligned with FMCG Company’s marketing decision making.

 FMCG companies should focus more on the small local stores and groceries for their
promotional activity, combining both the push and pull strategies.
 Sales promotions are found to be the most effective tools for generating sales of
FMCG.
 An effective distribution system is the most significant issue in product marketing.
 FMCG Company should develop their research and development activities.
 Company should make sure the availability of the product in the market.
 FMCG Company should culture IMC method in their business.
 Company should batter take care of their customer as well as their own personnel.
 To develop this sector Govt. should take an effective task to avoid fake product
marketing and illegal business activities.
 FMCG Company should start online based marketing or e-commerce business.
 Company need the latest technological development in their business to cope up with
the modern world and their competitors.
 FMCG Companies should make an efficient distribution team to facilitate their
business activities. They may go for distributorship business to make sure the
availability of their brand product in the time of national or political crises.
 Government should more strict on new foreign entries in our market.
 Sales promotion is found to be the most influential factor that influences the
consumers to change their purchase decision from a predetermined brand to a new
brand. So company should conduct different sales promotion activities to capture the
market.
 Sometimes, end of aisle display in the shop, i.e., floor decorated with brand name-
stickers, influence consumers to try that brand while purchasing FMCG products.
Those tools assist the consumer in recalling other brand names from the unconscious
mind. So company should consider on these.

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4.2 Conclusion:
Fast Moving Consumer Goods (FMCG) sector is one of the largest sectors in the economy of
Bangladesh. In the last few years, the FMCG industry in Bangladesh has experienced a dramatic
growth; both qualitative and quantitative improvements have taken place in the consumer durables
segment. FMCG in marketing means convenient and low involvement products like, salt, flours, pens,
chocolates, etc. In recent years, the FMCG industry worldwide has experienced a difficult market
condition. In some categories, formerly popular brands have either been deleted or squeezed
between the category leaders and low-cost competitors. Finally this study shows an overall idea of
FMCG sectors of Bangladesh. By this study we get the knowledge about the current situation of FMCG
sector of this country. Side by side we can also get a knowledge about the current problems and
improvement area of this industry.

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References:

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