Independent University, Bangladesh

Course title: Principles of Marketing

Course code: MKT201

Section: 03

Semester: Summer, 2021

Date of Submission: 26.07.21

Topic: BCG Matrix on Akij Food & Beverage, Cement and Ceramic

Submitted by:

Group Name: The Elites

Name ID

Anika Mariam Zerin 2010726

Mashrul Islam Fahim 1830622

Moinuddin khan Abir 2020529

Abrar Habib 1910497

MD. Jaberul Islam Jaber 1821615

Company Profile
The legacy of AKIJ GROUP is over half a century old and over the years Akij has established
itself as the full of confidence and much revered industrial family of Bangladesh. It consists of
24 big concerns with diverse activities & different products.
History of Akij Group stretches back to the later part of the 1940s. In its infancy, the Group
started in a humble way with jute trading which was known as the golden fiber of the country,
earning the highest amount of foreign exchange.

Akij Group’s ceaseless efforts with dynamic management and support from our numerous clients
have led our Group in diversifying its business activities. In the second phase, the Group went
into manufacturing handmade cigarettes popularly known as bidis. This sector gave a real boost
to the revenue earning of the Group as well as making a substantial contribution to government
exchequer. With the passage of time, the Group undertook new ventures and presently there are
15 units of industries under its umbrella like cigarettes, handmade cigarettes, printing &
packaging, textiles, hand board, pharmaceutical, leather processing and real-estate business are
in operation, catering jobs for more that 32,000 people in various categories.

The Group has plans for setting up more projects. The projects are already in the pipeline.
Foreign investors have shown keen interest in joining with us for joint ventures. The matter is
under our active consideration and will hopefully soon mature. This will also help the nation’s
economic growth and will create job opportunities for various professionals.

Akij Group is also involved in socio-cultural activities. The Group has been operating a sizable
orphanage free of charge in the district town. The Group has also acquired a modern mother &
children hospital previously owned by Save the Children (UK). The hospital is being operated as
a non-profitable concern by Ad-Din Welfare Trust.

Company Portfolio
The Akij Group is one of the biggest conglomerates in Bangladesh. It consists of 15 big
companies with diverse activities and different products, and launched its venture as a small jute
trader more than 50 years ago. Since then it has been progressing with tremendous pace in the
industrial arena of Bangladesh. From its humble beginning, it has been developed into a huge
corporation of infallible quality and excellent service. It highly values its consumers as unique
individuals and always ensures quality merchandise to suit the needs of each distinct consumer
group.
With the passage of time, the Akij Group undertook new ventures and presently there are 15
units of industries under its umbrella like cigarettes, handmade cigarettes, printing & packaging,
jute mills, textiles, Hand board, Particle boards, Matches, Zarda, Cement, pharmaceutical, leather
processing and real-estate business are in operation, catering jobs for more that 32,000 people in
various categories. . The individual groups within these areas are responsible for their own
worldwide operations, with regional units around the globe supporting their efforts.

Akij Group has related diversification and their product ranges are divided into different product
lines. This decentralized structure gives the greatest degree of entrepreneurial responsibility and
the ability to nurture the closest possible ties to their customers. Cross-Group and cross regional
cooperation is crucial for the success of innovation. At the same time, it enables Akij Group to
provide comprehensive, customer-focused products, solutions and services for the local market.
The Group rapidly rose to the peak of success and has today 25 large Industrial and commercial
units in one fold which include jute, leather, footIar, tobacco, bidi, chewing tobacco, cigarettes,
safety matches, hard board, food & beverage, cement, textile, pharmaceuticals, printing &
packaging, computer hardware software, member of Stock Exchange and chain CNG filling
station etc.
Akij group maintains a flat organization structure. The company has many separate divisions for
the smooth operations in Bangladesh. Among them some divisions are related with business and
some are supporting divisions.The main divisions are:
● Akij Food & Beverage Ltd. (AFBL)
● Akij Corporation Ltd. (Dhaka Tobacco)
● Printing & Packaging
● Jute mills, Textiles
● Particles board
● Matches, Zarda
● Cement
● Pharmaceuticals

Akij Food and Beverage Ltd.

Akij food and beverage Ltd, a priority of Akij cluster, yesterday launched within the local market
3 varieties of drinkable beneath the brand Frutika.The 3 varieties of juice mango, red grape and
red orange are square measure already available in retailers in 250ml PET bottles with costs
travel between TK 20 and tk22.The officials of the corporate, at a conference persisted the
industrial plant premises in Dhamrai, said frutika may be a aseptically crammed juice in PET
bottle introduced for the primary time within the local market. Akij food and beverage put in
state'of'the'art machinery, foreign fromGermany, to manufacture the juice, aforementioned Sk
Nasir Uddin, chairman of Akij cluster.Frutika juices have zero preservatives and no artificial
colouring, that helps maintain the pure style of fruit in these merchandise. he claimed Nasir
Uddin aforementioned they import mango pulp from Asian country and pulp of different fruits
from Germany to manufacture the juices. Akij group directors Sk conference.Other high officers
are additionally gifted.
 Product Category AFBL Brands

Carbonated Soft Drink (CSD) MOJO

COLA

Carbonated Soft Drink (CSD) LEMU

CLOUDY LEMON

Carbonated Soft Drink (CSD) CLEMON

CLEAR LEMON

Energy Drink SPEED

Mineral Water SPA

Non-Alcoholic Malt Beverage WILD BREW

Fruit Juice FRUTIKA

Dairy Products: UHT Milk FARM FRESH

Akij Cement Company Ltd.

Akij Cement Company Limited is to such an extent that it immediately settled itself as a
profoundly solid brand in the client's preference. Akij Cement presented a top-notch innovation
called "Vertical Roller Plant (VRM) in Bangladesh which guarantees creation of 2-50 microns
ultrafine concrete. Akij Cement can gladly consider itself the pioneer of advanced VRM
innovation in Bangladesh. It has around 3.7% of market share of the cements industry, Akij
Cement has the 10th position. But in 2010 it was in the fifth largest position of the market share
with producing 2,200 tons of cement per day. When they started back in 2002 their production
was 4,200 tons per day. Means gradually Akij cement company ltd. is decreasing the production
of cement.
Akij Ceramics Ltd.
Akij Groups of company Ltd. began its ceramic industry back in 2012. The organization began
by delivering 20,000 sq meters ceramic tiles each day. Step by step they fostered a nonstop
improvement in their creation and came to around 49,500 sq. meters of ceramic tiles each day.

Akij Ceramics production has enabled its buyers not just with the best plans and different sizes,
yet in addition with immaculate sturdiness which has now become the market standard. Utilizing
the most recent European advancements in its offices, Akij Ceramics is currently endeavoring to
limit its carbon impression. Creating better each day, Akij Ceramics expects to grow persistently
with an unquenched ache to stay the best in the tiles business and to give customers a novel
encounter of ceramic tiles.

Akij Textile Ltd.

The textile sector plays a awfully vital role in several developed countries.The textile sector
includes spinning, knit and woven sectors, that square measure referred to as primary textile
sector.Over the years notable development has been created within the PTS notably within the
field of spinning sector. supported the Annual Report-2005 of Bangladesh textile mills
Association mechanized capability of spinning trade in 1972-73, 1983-84, 1993-34 and 2003-04
square measure spindles severally. In Bangladesh, the spinning sector has contributed and
continues to contribute towards the event of the socio-economic condition. nowadays 325
million folks square measure operating within the spinning sector. Cinety p.c of the domestic
materials and yarn needs square measure met by our PTS. Akij textile mills Ltd is one amongst
the members of BTMA. it's put in total capability 51328 spindles to provide yarn.Akij textile has
used fashionable technology and machinery to contend at the competitive market with the nice
quality.

Akij Zarda (Chewing Tobacco) Factory Limited

Akij Group is one of the biggest conglomerates in Bangladesh. The legacy of AKIJ GROUP is
over half a century old and the Akij Group had its beginning by Entrepreneur, founder and
lifetime Chairman Late Mr. Sheikh Akij Uddin. He initiated the business in the 1940s. Today
Akij group has over 27 business units in different sectors including tobacco, jute mills, particle
board, housing, textile, ceramics, zarda, and so on.

Akij Zarda Factory Ltd. is producing 4 different types of Zarda to fulfill the needs of different
consumers in diversified taste. Different types of Zarda produced by AZFL are as follows:
1) Special Patti (99): Pack Size – a) 50gm b) 25gm c) 12.5gm,

2) Golden Patti (Surovi) (55): Pack Size – a) 50gm b) 25gm c) 12.5gm,

3) Akiz Zorda (Beli) (44): Pack Size – a) 50gm b) 25gm c) 12.5gm and

4) Vhiza Patti (33): Pack Size – a) 25gm b) 10gm.

Akij CNG
Akij Group Is one of the fastest business Conglomerates in Bangladesh. Founded by the late
Sheikh Akijuddin, The group started in Humble Way Through trending business in 1940.
Pursuant to its policy of diversification,AKIJ GROUP noticed there is enormous scope for
utilisation of natural gas instead of liquid fuel in automobiles. Accordingly, it started a CNG
filling station business in 2004. By dint of close monitoring and constant evaluation it acquired
vast knowledge and experience in the CNG sector during the last four years. Today it has
planned to set up 13 CNG stations in key points throughout the country. It is now going to be
involved in conversion, cylinder retesting, automobile servicing and various gas related
activities. AKIJ GROUP COMPANY LTD was constituted which is involved in chain CNG
station business.

BCG Growth Share Matrix

BCG Growth Share Matrix helps a company to classify all its SBUs according to the
growth-share matrix. On the vertical axis, market growth rate provides a measure of market
attractiveness. On the horizontal axis, relative market share serves as a measure of company
strength in the market. The growth-share matrix defines four types of SBUs:

1. Stars: A product in this segment denotes to have high market share when the industry is
experiencing high market growth.
2. Cash Cow: Products in this segment tend to have maximum market share when the
industry is floating in low market growth.
3. Question Mark: Product in this segment tends to make least market share when there is
high market growth in the industry
4. Dogs: Product in this segment trends to be a burden for the company as there is low
market growth and the product avails limited market share.
 Graphical Presentation of Akij Food & Beverage, Cement and
Ceramic as per BCG Growth Share Matrix:

Star Question Marks

HIGH
● Frutika ● Lemu
● Mojo ● Clemon
● Speed ● Farm Fresh
● SPA
Market ● Akij Ceramic Ltd.

Growth
Cash Cow Dogs

● Akij Cement Company ● Wild Brew

Ltd.
LOW

HIGH LOW

Market Share

Analysis of Akij Food & Beverage as per Growth Share Matrix:

Ever since Akij Food & Beverage started its operation, it has had the following three brands in
the STAR grid which reflects a great prosperity for the company.
❖ MOJO: (Market Share 27% & Market position: 03)
❖ SPEED: (Market share: 36% & Market position: 01)
❖ FRUTIKA: (Market share: 32% & Market position: 02)
It has four brands (Lemu, Clemon, Spa, Farm Fresh) in the Question Marks grid and one (Wild
Brew) in the DOG grid. In future operations, AFBL tends to strategically shift its brands in
Question Mark and Dog to Star or Cash Cow category.
Analysis of Akij Cement Company Ltd.

According to the evidence Akij Cement is the fifth largest cement maker in Bangladesh.
Although the market is highly saturated,companies like Akij Cement are planning to cut
production costs and increase their growth in the market as they are running at 60 percent of their
capacity. At the same time Akij Cement achieved market growth by 6% in January-August
despite the pandemic. As a result, it stands out to be in the Cash Cow grid since its share is
already established but they need to be managed for continued profit so that they continue to
generate the strong cash flows that the company needs for its Stars.

Analysis of Akij Ceramic Ltd.

According to the BCG Growth Matrix, Akij Ceramics Ltd stands out to be in the Question Marks
grid. This company is a new emergence in the ceramic manufacturers industry. The company is
offering a lower rate initially to grab the market share. After entering the market with tiles and
sanitary ware, Akij Ceramics is now investing a fresh Tk 500 crore.The factory has set a target to
produce 250 lakh pieces of tableware, which will elevate Akij to the ranks as the largest
producer, according to data of the Bangladesh Ceramic Manufacturers and Exporters Association
(BCMEA). As a result, by making heavy investments Akij Ceramic Ltd. will be able to grow
market share at the expense of larger competitors like RAK Ceramics.

Recommendations:
1. The star products of the akij group are frutika, mojo, and speed. They fall under the star
category because of their high market share and high market growth. They should
maintain this position by ensuring the same quality and high standards.
2. Their question mark products are lemu, clemon, farm fresh, spa and ceramic. These
products have a low market share but in a high growth market. These products have an
opportunity to increase market share and dominate the market.
3. Akij cement falls under the cash cow category. This product line is generating its earned
profit to the other product line specially those in the star and question mark. Though they
are earning less revenue with this product but using its profit in a good way to uphold
other beneficiary product lines of the same group of companies.
 4. At the end one of their products of food and beverage line, the “wild brew” falls under
Dogs. Which means this has less market share and also less market growth. So, there are
very low chances to earn much from this product. We would like to recommend Ajik
Group to avoid this product and stop producing such things that are good for nothing but
losses.

References
● About Us – Akij Cement Company LTD. (2021). Retrieved 26 July 2021, from
https://www.akijcement.com/about/
● Akij Cement Company Ltd | Bangladesh Cement Manufacturers Association (BCMA).
(2021). Retrieved 25 July 2021,
http://www.bcma.com.bd/members/akij-cement-company-ltd
● Akij Cement is now fifth-largest in the sector • Aggregate Research International. (2021).
Retrieved 26 July 2021, from
https://www.aggregateresearch.com/news/akij-cement-is-now-fifth-largest-in-the-sector/
● Cement industry rebounds. (2021). Retrieved 26 July 2021, from
https://www.tbsnews.net/economy/industry/cement-industry-rebounds-137650
● Portfolio of Akij Food and Beverage Limited - Msrblog. (2021). Retrieved 26 July 2021,
from
http://www.msrblog.com/business/entrepreneurship-development-business/portfolio-of-a
kij-food-and-beverage-limited.html