Summer 2020

MKT460

Course Name: Strategic Marketing

Section- 4

COMPANY

MG BANGLADESH

SUBMITTED TO:

Mr. Rafsan Elahi [RfE]

Senior Lecturer

North South University

Department of Marketing & International Business

SUBMITTED BY:

NAME ID SERIAL NUMBER

Md. Serazul Haque Shuvo 152-0801-630 9

Md. Sabbir Sarker 161-1386-030 19

Fatematuj Johra Upoma 161-0799-030 16

Samia Hossain Ridita 143-0275-630 5

Syed Fahim Ashhab 141-1939-615 3

B M Joynul Abedin 152-0498-030 8

Sanjida Ferdous Soumi 141-1159-630 2

SUBMITTION DATE:

3rd October, 2020

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Introduction:
Mg Motors is an internationally renowned automotive company originating from Britain. It was started in
1920 and since then the company has seen several changes in its ownership. The company is operating in the
automobile industry for more than 90 years. The Morris Garages has won many awards including the
“world’s fastest racing car” and “best quality racing car” awards. Currently MG motor is owned by Nanjiang
Automobile Group of China.

MG motor is specially known for its classic and modern budget SUV’s. Specially after the Chinese group
took over, they have introduced several high-tech SUV’s that can be bought with a relatively small amount
compared to the available ones offered by the other renowned giants in the market. MG Bangladesh was
launched in 2019 by the local conglomerate Rancon group. The first car that was introduced was MG ZS
which is a powerful 105 horsepower car that is equipped with all the modern amenities that a car can have
worth only a respectable 26.50 lacks taka. (Hasan, 2019) There is even a flagship showroom of mg in the
capital, Dhaka.

Right now, there are two MG models available in Bangladesh which are the MG ZS and the MG HS. More
models are expected to be launched in the local market soon. Besides, Rancon group is serving the MG
customers with MG’s after sale services following the global standards. The company had only just started
to gain recognition in Bangladesh when the COVID-19 pandemic hit the whole world and caused a global
shutdown. This has stopped the company from making any farther progress in the country. Even though
everything is at a standstill right now, MG motor is expected to become a common choice for budget SUV
customers in the near pandemic free future.

Mission Statement:
Making a wide range of vehicles with a commitment to respond to different needs of customers with free
spirit, fun and unique excitement by maintaining technical expertise and depth of knowledge more than our
competitors.

Vision:
To be the world class organization.

Objectives:
• Be among the leader in the automobile industry in Bangladesh
• Develop win-win relation with customers
• Have modern and convenient infrastructure
• Be an employer of choice
• Be a preferred partner of our principals

Core Values:
Integrity

Honestly, morality, transparency are the key principals of our business. We take responsibility for
everything done by us.

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Commitment

MG is always committed to provide the best quality service to its customers with hard work and dedication.

Adding value

We develop relationship with customers, stakeholders, employees by adding value through effective
process.

Environmental Scanning:
Porter’s Five Forces
Competitive Rivalry:

The competitive rivalry of mg motors BD is high. Nissan, Honda, new Toyota line-up, haval, and other
brand new cars are already in a stronger position. But as the new car market is not as popular as recondition
car and the new car law from after 2025 will make equal opportunity for the brand new cars.

Bargaining Power of Supplier:

MG Motors manufacture their car from China and the availability of suppliers is greater because of the high
availability of suppliers. and this is why we have an advantage of switching to other suppliers. In this case
supplier power is less.

Bargaining Power of Buyer:

In this case bargaining power of buyers is high as we have plenty of car brands in Bangladesh. And others
brand along with Chinese brand focusing on cost cutting. The switching cost from MG to other cars or vice
versa is low, which put Car Company in a competition. This is price sensitive market and here always
bargaining power is higher. Substitute car brands make the buyers power high.

Threats of New Entrants:

Threats of new entrants are high as more and more automobile's companies are coming in Bangladesh as
foreign investments are increasing in our country. Bangladesh’s population number and rising GDP is
attractive for a lot of other car brands as well. These new investments and entrants will become a threat for
our company. Some Indian car company will be coming to Bangladesh and this will be the big threat.

Threats of Substitute:

Threat of substitute is moderately high, as we will have metro rail established by 2022. this is why a lot of
people will use the metro to avoid extra cost and a lot of people will be discouraged to buy car with such
high price. Besides the number of motorcycle companies are entering and the availability has increased
which is a great threat for us as many people are turning towards more flexible ride and is preferring to buy
bikes than a car.

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Porters Value Chain:
A value chain creates value for its customers. This helps to see the fuller picture of the cost drivers and
sources of differentiation, and then make changes appropriately. The primary activities of value chain are:

1. Inbound Logistics –
Our relationship with the suppliers is very favourable also the geographic location and availability of
spare parts are much easier as mg motors cars are manufactured in china.

2. Operations –
All the activities required to transform inputs into outputs are also easier and flexible. As we already
have a great demand in the market and the necessary proper infrastructure is available to make the
process much easier. Which will help to meet the demand of the market properly.

3. Outbound Logistics –
The outbound logistics are favourable cause we will deliver our car properly by using many internal
or external organization. And to provide after sell service to your customer we have our own proper
storage system and place to keep the cars.

4. Marketing and Sales –

Mg motor is a well-known car company and it is providing finest of the cars since 1924 Worldwide.
They coming to Bangladesh has created a buzz in the market already when they first entered in our
country. We will also use celebrity endorsement to induce buyers to purchase our cars, and facilitate
their purchase.

5. Service –
We will give our customers the finest service in case they need to recondition their car. We have
already stored extra parts that are imported from China directly to keep the car working effectively
for the buyer after it is sold and delivered. We are also giving them free registrations fee facility for
their flexibility.

Secondary activities are:

1. Human Resource management –
We have a great number of students who are really talented but the job sector is not allowing them to
best practice their knowledge. This is why mg motor will screen out the best candidates among them
and train the talented youth in rendering better service to customers.

2. Technological Development –
we have pertained to the equipment, hardware, software, procedures and technical knowledge to
meet our customers demand and provide them the latest technology as we are progressing towards a
digital Bangladesh.

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 3. infrastructure –
Bangladesh’s infrastructure is quite favourable for mg motors as Bangladesh has greater facilities
and achieved a lot of advancement in infrastructure sites.

SWOT Analysis:
Through SWOT analysis we have tried in identify the Morris Garage’s strength, weakness, opportunities and
threats by analysing internal and external factors.

Strength
• Chinas largest car manufacturer.
• Strong financial backing
• Superior quality and safety features
• Distinguished brand image
• Large production portfolio
• Sponsorship of prestigious international sports
• Low labor cost.
• 3 years free service in their owned service centre, Plus we will be adding additional 1 year service
• Loan for buying cars and instalment system payment.

Weakness
• High marketing cost
• Saturation in car market
• Aggressive marketing by rival brand
• Pandemic, the production of automobile companies in different countries has been stopped
completely or in a limited way.
• Increase in global warming and air pollution.
• More traffic.

Opportunities
• Growing demand of environmentally friendly vehicles
• Government incentive for automobile industry in Bangladesh
• Technological advancement.
• Investment from foreign countries.
• Parts available as it is made in china

Threats
• Competition intensifying
• Rising cost of materials
• Government tax policy
• Currency fluctuation
• High tax
• Government less support and tax

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PESTEL Analysis:
The PESTLE Analysis is a tool that is used to identify the key drivers of business environment. PESTLE
Analysis is important for measure the current macroeconomic issues.

Political
The political situation of our country is stable now. Though few years back it was unstable but now the
current situation of Bangladeshi politic is good. The economy is growing in a sustainable rate. We all know
that now we have become a developing country from the under developing country.

So, it will give Morris Garages a good opportunity to make a good profit. Government is taking many initial
to invite manufacturing plant in Bangladesh. we are hoping best because of the major political parties
Awami League which is running current government of Bangladesh mentioned in their official website, one
of their aims and objectives include the assurance of ensuring political, economic, social and cultural
freedom and welfare of all citizens (AL Constitution, official website). Because of those promises it can be
assumed that Awami League will allow expanding the government initiatives. Over all political condition is
favourable for MG motor

Economical
Bangladesh’s economy is growing faster with a booming 7.9% GDP growth rate in 2019, (according to
Bangladesh bank statistics) which is given below. According to the IMF, Bangladesh’s economy is the
second fastest growing major economy of 2016 so the unemployment rate is decreasing day by day as well
as the contribution to income of upper and middle-class people are increasing.

Similarly, as we all know now Bangladesh is a developing country. Previously it was under developing
country. Based on this growing Bangladeshi economy with in 2021 Bangladesh will be a middle-income
country and within 2041 Bangladesh will become a develop country. While our economy will go up then the
income of our country people will also go up. Thus, their income will go up they will able to spend more
money for their entertainment purpose which is a very good opportunity for our kind of business.

So, after knowing all the statistics we are hoping that for our business it could be a great opportunity to
contribute in this country’s GDP and also it will be easy to get potential investors at the moment for our
business.

Social
Social environment is the combination of social and culture of the people of our country. It is the very vital
part of the macro environment. The elements of the society actually transferred from one generation to
another generation. Culture also show the history of a nation. So, the societal value and believes are played
important role to human’s character’s, behaviour, attitude etc. In our social environment everyone (middle
class and higher) try to buy their first car as soon as possible. And there is social superiority in owning a car.

Technological
In every commercial aspect of Bangladesh, technology is playing the most important role and this
technology is changing with the course of time. The new technology has allowed the various production
stages to become one continuous process of interrelated activities. For last few years the greatest
technological inventions as in, cellular phones, GPS, Digital music player, personal computers, internet,
video conferencing have become the part and parcel of our lives. And these have added a new dimension to

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our day to day lives. Mobile phone a wonderful invention of modern science. Mobile phone first introduces
in Bangladesh in the middle 1990’s. So far we have experienced 4G technology.

MG website use a 160 degree angle of view of their showroom, and with the help of IT there is details and
corners that are easily findable from their website; they also use F-commerce very aggressively to promote
their product. We now have the technology to repair and fix cars in our country all we need is to use the full
potential of it. We can buy computer analysis and real time car driving experience so that consumer can
enjoy even if they are in home. We will introduce an app where you will get a lot of help including take
home delivery servicing.

Environmental
Global warming is a major issue now a day. So, every country is talking about taking proper steps to reduce
pollution by making eco-friendly products. The laws regarding recycling are very strict. We will introduce
hybrid models in 2025 where pollution and fuel will be in good side. In future government will take
initiative to help the environment and we will take the advantage of it. MG cars are using ‘NET GREEN’
technologies and our next main target is to introduce MG’s electric cars, which is already in India?

Bangladesh Government & businesses are less concerned about environment & more focused on profits.
Our main purpose is thinking about customer’s health.

Legal
The legal forced affect the business. If the legal forces are Bangladesh legal system is based on a common
law system. For starting a new business in Bangladesh, we need to follow the law system of Bangladesh.
There are some acts and laws to do business from that, the administrative law of Bangladesh is suitable for
our business. Similarly, to open any company in Bangladesh owners have to register under the Company Act
1994.

The existing Bangladeshi legal legislation in force is as follows:

• Bangladesh Factories Act 1965

• Bangladesh Factories Rules 1979
• Bangladesh Labor Act 2006
• Bangladesh Labor Rules 2015
• Patent & Design Act of 1911
• Patent & Design Rule of 1933
• Trademark Act of 1940
• Copyright Act of 1999

Competitive Analysis:
Our companies' competitive advantage is that we have targeted our customers in such a way that when they
want to buy a car, they will choose us over Toyota (brand new) Honda, Nissan because of the way we have
set the pricing. Our pricing but is very affordable compare to other compact SUVs. We are providing 24
lakh BDT compact SUV which is the cheapest in Bangladesh, in that price, customers are getting the feel of
luxury car with such premium quality features in it. Which is why many people will be interested to buy our
car than from our competitors. Right now the legit competitor is haval with their H2 model. It’s also cheap
and chines. Haval is already bit more popular than MG motors, because of their promotions aggressive push

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toward other SUVs. Haval is direct competitor in term of turbo technology in its segment, also Honda CHR
is tough competitor.

Business Sustainability:
A new SUV specialized car brands launch in Bangladesh would be considered a really risky move as it is a
mature market with very old names attached to it. But a company such as MG motor has a high possibility
of survival amid the bigger names.

The SUV car market of Bangladesh is rooted deeply with pricing. Many of the potential buyers are unable to
purchase SUV due to the high price. So, they are forced to move to sedan cars. This trend has made the SUV
market a place of high luxury. Even though there are a few brands such as Renault and Suzuki and haval
who offer their cars at a relatively lower price; these cars are either smaller in size or have a very low set of
configurations. So, they are unable to draw public attention in a considerable manner. There are even cases
where people don’t even consider these cars as SUV’s. MG motor is offering high tech and bigger sized
powerful SUV’s along with crossover at an extremely lower price not following the trail of the other costly
brands. Besides, the international warranty and top notch after sales services that MG motors shall provide
will help gain public trust. This will remove the shackle of price and let people buy an SUV to their liking as
well. All in all, the new company in the local market such as MG motors is mostly to see an increase in sales
and gain popularity as well as stability in the SUV car market very soon. As the crossover popularity is
increasing in Bangladesh because of the road condition and family orientation we will be win in
sustainability

Competitor Analysis:
The current SUV market of Bangladesh is mostly dominated by the worldwide automotive giant Honda,
Nissan haval, Renault, hyndai who have been leading the SUV market had started gaining public attention.
Mg motors is going to face the most competition from this all brand clearly. There are a few more popular
SUV sellers in the market such as Honda, Mercedes, Suzuki, KIA, BMW etc. These brands are trying to
penetrate the SUV market as well to gain more market share from Toyota. But there’s one common restrain
in all these SUV makers; they come at a very high price which most people cannot afford even if they like
the car. Mainly SUV markets include CUV too and this segment already growing in BD.

To market a new brand in such a market, the only option is extremely competitive pricing while making as
smaller compromises as possible to the quality of the car. This will help to draw the attention of the buyers
who are willing to buy an SUV which they cannot because of the high prices. Besides, precise advertising
about the pricing and modern specs can put Mg motor in a stable position very soon.

Business Strategy:
Each and every business has a unique strategy to become different and profitable than its competitors.
Business strategy is also needed for reaching the ultimate goal and making the decision-making process
easier.

There are six components of a business strategy i.e. vision and business objective, core values, SWOT
analysis, tactics, resource allocation plan and measurement (“10 Business Strategy Examples”, 2020).
The vision of MG motor is to provide the people with lower costing CUV, SUV’s for travelling to their
destination places. By fulfilling the vision of their business, they will be able to obtain the main objective of

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it. The core value of the company is to be recognized as well as gaining more market share from other
renowned competitors. The competition of SUV business is very low due to the high price range in our
country so it can be a great advantage and strength for MG motors. The main weakness for the business right
now in Bangladesh is the lack of public knowledge of the brand. The company also does not have enough
resources to efficiently do its’ business in Bangladesh which is also a drawback for our business.

The threat for this business can be lack of intelligence in the field. In the part of tactics, MG motor will have
its operational details for example, how it will be fulfilling its operations, how it can become more efficient,
how it can manage people related with its business more productively, how it can save its time and effort in
effective ways. Resource allocation is an integral part for any business. To be an established company,
proper maintenance and collection of resources is very important. As the market for SUV cars is not very
known and established in Bangladesh, MG motors will have to be very conscious about the resource
allocation part. Deciding whether it will continue importing its cars or manufacture the products locally is a
crucial part for this business. Measurement of input and output is also an important part of business strategy.
If the input is not matched properly with the output then the profit or loss cannot be measured properly.
Sustainability, pricing strategy, customer retention is also related with business strategy.

Segmentation, Targeting, Positioning

MG Motor in association with Rancon Motor Ltd. first started its operation in Bangladesh in 2019. Initially,
in 1920s MG Motor’s positioned their car as sports car but as the time went on, they became interested in
covering the global market. As a new company in the automotive market of Bangladesh, they need to devise
solid strategic marketing policies to compete with the already established car brands such as Toyota,
Mitsubishi, Honda, and so on. The overall objective of this marketing strategy should focus on how to
become a household name in the automotive industry in Bangladesh, penetrate into new market segments,
and expand its customer base. For this strategy to work, they have to segment, target, and position their
brand in innovative ways that are in line with the customers’ demand of Bangladeshi car market.

The segmentation can be done based on the following:

• Demographic:
Considering Demographic, the company should target people based on age, gender, income,
occupation, and family size. The company should target people whose age ranges from 25 to 50. It
should target both males and females. Considering income, the company should target middle- and
higher-income group people. Considering occupation, it should target professionals, businessmen,
employees, and executives. As far as the family size is concerned, the company should target small
families as well as families that consist of more than 4 members.

• Psychographic:
The company should target people based on their lifestyle and social class. People belonging to the
middle class, upper-middle-class, and higher class should be targeted. As far as lifestyle is
concerned, people having a luxurious lifestyle, people who are adventurous, and people who are
involved in different professions having a formal lifestyle should be targeted.

• Behavioral:
Considering behavioral, people should be targeted based on benefits sought and user status. The
benefits sought are in terms of durability, performance, and fuel efficiency. As far as user status is
concerned, the company should target non-users, first-time users, regular users, and potential users.
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Targeting:
The company should target people whose age ranges from 25 to 50. It should target both males and females.
Considering income, the company should target middle- and higher-income group people. Considering
occupation, it should target professionals, businessmen, employees, and executives. As far as the family
size is concerned, the company should target small families as well as families that consist of more than 4
members.

Positioning:
In order to become a household name in the Bangladeshi car market, the company should position itself
based on price, quality, and design. Initially, in 1920s MG Motor’s positioned their brand as sports car
manufacturing company and they used to put emphasize on performance over comfort. Their main targeted
consumers were single men aged between 25 to 40. (We want to be an approachable brand: Pallavi Singh,
MG Motor India, 2018). But as the time went by, they started to focus their positioning on the customers’
satisfaction and gradually evolved into a future forward and innovative company. (MG Motor and KIA India
entry Strategy, n.d.). This new positioning strategy the company currently has is best suited for the
Bangladeshi car market as car consumers in Bangladesh mostly look for comfort and reliability. The
company should come up with brand messages and slogans which will help it to position itself as the one
that provides quality cars that are durable and reliable and available in various innovative and attractive
designs at pocket-friendly prices.

Branding strategies that the company should consider are:

Build strong relationships with customers by enhancing customer experience with the brand, its personality
and its heritage (Joachimsthaler & Aaker, 1997).
1. Social media is a strong and effective tool to communicate with a large number of audiences within
a short period of time. Conducting social media marketing campaigns which means using social
media platforms like Facebook, Instagram, and Twitter to connect with the audience for building the
brand name, and increasing sales. As this is a new company in Bangladesh, first task is to spread the
name to as many as possible through these online marketing campaigns.

2. Using local celebrities, influencers, or key leaders for driving the brand's message to the market
and targeted audience through electronic and social media.

3. Being at the top of the Google SERP (Search Engine Results Page) can also help them to build their
brand’s name.

4. Organizing different kinds of events such as concerts, exhibitions, charity, and so on to make people
aware of their strong presence in the industry.

Companies can use a five-step process to optimize their brand portfolios.

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Communication Strategy for MG Bangladesh:
An effective communication strategy is important to ensure the good relationship between the company and
the target customers. After going through the list of the target audiences MG Motors needs to come up with
most appropriate communication ways to reach each target audience. They are-

• Television commercial (TVC): Targeting the entire country, primarily through Television. TV
advertisement provides huge scale and reach so it will be easy to catch the attention of the customers.
Also, using TV commercial will be easy to describe the attributes, features and overall view of the
MG cars.

• Celebrity endorsement: MG Motors Bangladesh can choose one appropriate celebrity or popular
face to promote their cars. Most customers believe that if their favorite celebrity is promoting the car,
then the car will be good and favorable. (Wall, 2019)
For example: MG Motors Bangladesh can choose-

“Avik Anwar” as their brand ambassador. This

particular strategy will boost the overall brand image
as people have trust and faith on Avik Anwar that he
will promote the best car. He is also a race car driver
so; the audience will believe that this person is
trustworthy for car related information. We also will
take tahsan as he fits the character of a simple reliable
trustworthy person can be our brand ambassador.

• Online Campaign using hashtag: MG Bangladesh can bring online Campaign on social media
platforms on different occasions. For example: On Father’s Day MG Motor can come up with a
campaign like #This Father’s Day with MG Motor. People will share their best pictures with their
fathers using the hashtag on social media (Facebook, Instagram). One lucky person will get a special
gift for his/her father from MG Motor. This little campaign, fun activities will make the brand more
popular among the audiences.

• Product placement: MG Motors Bangladesh can choose some popular TV shows, series or movies
to promote their cars. On that show, MG cars will be shown and this placement strategy will give the
MG Motors high exposure in front of the viewers.

Pricing strategy (MG Bangladesh):

Current available model (alternative price)
Model Name Price
MG ZS exclusive (AUV) 26.5 lakh BDT
MG ZS (AUV) 24 lakh BDT
MG 3 (hatchback) 1.5L 16.5 lakh BDT
MG HS (SUV) turbo 36.5 lakh BDT
MG HS (C.SUV) turbo “sunroof” 39.5 lakh BDT

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New Added Models (New Price)
Direct competitor and price
Models Price
Honda CHR turbo- 53 lakh BDT
MG Hector sharp hybrid 50.5 lakh BDT
(SUV) Nissan Almera- 27 lakh taka
MG Hector smart hybrid 49.5. lakh BDT
Kia Sportage- 30 lakh BDT
MG Hector super hybrid 52 lakh BDT
MG Hector sharp diesel 48 lakh BDT Audi Q2- 66 lakh BDT
MG Hector smart diesel 49.5 lakh BDT
AUDi A3 for the hatchback)- 51 lakh
MG Hector super diesel 47 lakh BDT
MG 6 40 lakh BDT KIA seltos 35 lakh++
MG 6 hybrid 41 lakh BDT
Hyundai Tucson 48 lakh BDT
MG ZS hybrid 24.5 lakh BST

Distribution: we will open one new showroom in Chittagong as we have great potential to capture the
nd
2 largest city and developing city. We will be opening 5 different service centre in Dhaka and two in
Chittagong. This will be safe move as we are planning for 2025.

Pros: MG has a huge opportunity in Bangladesh market as it has already penetrating India’s domestic
market. It is competing with haval in the SUV segments directly competing with. Brand new Toyota, Honda,
mazda, Hyundai, Nissan, price is its best competitive advantage, as it is offering less price then the
competitors. MG serves three years of warranty and additional 3 years parts available ensured. The engine
technology used in in the car is very common and easily reparable. The best part is it has level 4 out of 5 in
safety test. This has the British heritage which is known as very reliable. The registration cost is included in
the price, which will save you more than 1 lakh taka. The design is very sinless follows leopard design. MG
provide spare tire with the car which is useful in Bangladesh condition. Duel clutch transmission with three
different steering controls.

We will add extra 1 year on parts warranty and more service centre around different cities. This has the best
driving feel in its class. We will offer one new color along with existing four colors (pearl). MG offers
varies and exciting crossover which is better looking than competitors’ old dull models. The touchscreen
control is very German automobile lookalike. Huge boot space. MG cars are loaded with new tech like lane
departure, auto cruise control, push start, good airbag, nice seat material’s etc. we are mainly focusing on
crossover vehicle as its very popular and demanding.

Cons: Service centre is limited. The fuel economy is decent as the duel clutch control focus on driving
pleasure. The air filter is little expensive but widely available. The tires are little bit small but it helps the
controlling.

Sustainable Strategies:
The focus on replenishment and minimizing harm to the environment is referred to as sustainability. MG
motors a British automotive brand has already started its journey in Bangladesh via some models. Through
performing sustainable strategy MG automotive can serve its consumers. Automobile industry is roughly
responsible of 15 percent of carbon emission of all over the world equating to eight billion metric ton of
carbon per year. The car manufacturer when they come to situate a car manufacturer plant to a developing
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country their main motto is to cost reduction and make good profit. These company creates plants to create
more jobs and contribute local economic growth. The manufacturer however uses minimum natural and
social resources to realize their self-interest. Automobile industries are very large and they work with wealth
generation to a concentrated particular location, they are not decentralized across the country and society as
a whole.it can also cause overcrowding and depopulation and so on. The toxic components of the industry
also harm the employees as well as the environment.so these are the negative effects that can done by an
automotive industry. Now let’s look at some of the aspects that an automobile industry like MG can assume.

Resources
Economic

Environmental

Social

Sustainable value approach has developed to solve these problems. Sustainable value measures of the
efficient use of the social environmental and economic resources and expresses the result in a single
integrated monetary measure. Establishing methods for valuing companies are used for this purpose. It
measures the use of social and environmental resources exactly in a way as companies currently assesses the
return of capital employed.it treats the social and environmental assets as scarce resources that have to be
used in a value creating way. Car manufacturer are aware of the environmental issues and they also have
taken action to reduce the pollution from the production to recycling.

If we take se example of Toyota, they are heavily aware of the environment issues and they are able to
recycle 99 percent of the material used in car manufacturing. The developed country like japan and Germany
invested a good amount of investment to practice sustainable practices in car manufacturing industries.

The developed countries also invested a huge number of investments to E-mobility and hybrid cars. Their
target is to ensure the sustainable aspects and support the research and development aspects. In our country
we have seen a good number of people are interested in hybrid cars, those cars are imported from Japanese
domestic market. Though the electric market segments are not as acceptable as like hybrid because of the
concept and charging hub is not available like tesla in the US. We assume in upcoming five years the electric
car acceptance will be grater and the buying tendency will also shift because of the ban of JDM. The
presence of electric car market of GM has started with their model E-MOTION in 2017. That had a range of
500 km per charge. So, as we can guess their electric car sector is already developed. They have also
introduced their full dedicated electric car in 2020 MG ZS EV SUV. To conduct sustainable strategies MG,
need to measure the environment resources to get adequate result. MG needs to serve their consumers with
facilities that were available in Britain. Touch point creation, retailer’s acquisition needs to be developed to
get consumers attraction. Proper use of the environmental and social aspects needs attention from the MG
Brand. More of the E-mobility needs to be developed under MG’s production and serve our community
better service for E- motors and more compact technology.

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Limitation:
Bangladeshi car market is the 3rd largest in south Asia. Car manufacturer can find a large amount revenue
through the car market. Many of the car in the market is filled with recondition imports. Bangladesh
government has taken initiate to ban recondition import in next 5 years, so the market in Bangladesh will go
through some changes. As the recondition cars will excluded from the market, the new car’s market will get
the rising opportunity in our local market. MG Bangladesh has already stated its operation with rancon
motors. The Morris garages are assuming potential market in Bangladesh. They are promising right vehicle
for the consumers with superior quality assurance and promising after sales facilities. Bangladeshi market is
saturated. In order to create a strong position in market, MG should be aware of the limitations of
Bangladeshi car market.

Consumer preference
Bangladeshi car market of privately-owned vehicle is mostly focused on Japanese imports. Whether new or
reconditions vehicle. Where most of the share is captured by Toyota, Nissan, Mitsubishi, and others. If we
go back before 90s, we would see a lot of were imported from Germany, Europe, uk and some exclusive
brands from different countries. A decade after Toyota collaborated with Navana and introduced Toyota
corona rt40 in the market with spare parts facility and warranty in a very cheap price. The rt40’s sales
increased and Toyota had successfully entered the market assuring so many aspects. Toyota cars are reliable
so when the recondition import started in 2000s, people blindly went buying for Toyota vehicle as they
know Toyota car lasts 500000 kms if properly maintained. The Toyota parts come from Taiwan china japan
and even from Philippines. The wide range of parts availability made Toyota the mostly preferable car in the
market. So, shifting the trend of Toyota preference is a big issue for other car brands as they have to assure
high quality of vehicles along with range of parts availability.

Indian and Chinese market influence

Indian marketer is trying to make a strong position in Bangladesh as well as the Chinese market offers
loaded vehicle with a very cheap price. In the motor industry Nitol has almost 40 percent of the share. And
Chinese company is trying to capture the market with exclusive option and aggressive marketing. China and
India will get absolute advantage in our market because of the trading relation between these two countries,
geographic location as well as the influences they had created in the market. Although the consumer
preference about these regions is not satisfactory so MG might find value proportion from this scenario.

Wave change due to taxation policies

According to the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) the
number of automobiles sold per day increased to 63 in 2008 from 29 in 2012. The number has increased in
recent years too. The policy for hybrid is different than other vehicles, yet the tax estimation of electronic
vehicles is not decided yet. The tax amount counted x4 with retail price. Taxation changes led to drop off
sells.

Limited resources, mechanisms, technicians

The investment of UK car industry has fallen and lost almost 46 percent shares in 2017 because of their
market heavily dependable on EU markets, most of the major components were imported from EU. So, as
we can see for lack of resources even the uk market went through a disaster, however direct import of the
vehicle can reduce this conflict. We also have lack of expert technicians to fix the problem of high-end cars,
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some of the expert technicians charges a lot which is a bad side for the mainstream consumers who will buy
not a Toyota but MG, KIA, or brand like Hyundai.

The electric challenge

The global market for electric vehicle is being tremendously popular. People are shifting gasoline car to
electric cars. For the change in global shift the market for electric vehicles has increased and in 5 years the
demand for electric vehicles in south Asia will rise. The competitors of this segments are really strong and
technologically equipped. To compete with them MG had to invest a huge amount of investment to capture
electric market in South Asia as well as in Bangladesh.

Conclusion:
The market for auto market in Bangladesh, particularly the four-wheeler section, is as little as it is different.
With fresh out of the plastic new vehicle sales centres seeing around 80-90 units go out the entryways on the
famous end each year and lesser brands selling around 20-30 on the off chance that they are fortunate,
Bangladesh's pristine vehicle market is in no way, shape or form a volume major part in the worldwide
setting. Indeed, even with a generally little market, Bangladesh has the official presence of in excess of 24
significant worldwide brands including Audi BMW Mercedes kia etc.

The entry of the Morris garages in the market will make the competition more diverse which leads to
fulfilment of the value proposition of car industry, if MG Bangladesh can assure higher quality vehicles in
our market along with superior service and reliability then it will be able to make a position in our car
market. to compete with the existing competitor MG has to be specific with price, pats and reliability.

Why our plan is better:

We will be adding additional service centre and more parts availability the reason people afraid to buy new
cars because of after sale service and parts availability. Our main focus is to ensure these two factors is well
established. And then we will also focus on promotion as the brand need to be recognisable to people. It
already has the heritage of being fun and reliable car, now with amazing design we are going to surpass the
boring design of others car. We made our plan to focus on safety and reliability. Adding after sale service
such as parts availability for additional 1 year and 1-year additional guarantee will place us ahead from the
competition.

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References:
Hasan, M., 2019. Morris Garages Launches In Bangladesh With MG ZS. [online] Dhaka Tribune. Available
at: https://www.dhakatribune.com/business/commerce/2019/09/07/morris-garages-launches-in-
bangladesh-with-mg-zs

“10 Business Strategy Examples”, 2020. [Online] Available at: https://www.indeed.com/career-advice/career-

development/business-strategy-
examples#:~:text=A%20business%20strategy%20refers%20to,for%20hiring%20and%20resource%2
0allocation

Wall, M. (2019, April 19). The Future of Celebrity Endorsement. Medium.

https://medium.com/@14ideas/the-future-of-celebrity-endorsement-c04bcbaceb45

We want to be an approachable brand: Pallavi Singh, MG Motor India. (2018). Adgully. Retrieved from
https://www.adgully.com/we-want-to-be-an-approachable-brand-pallavi-singh-mg-motor-india-
80613.html
MG Motor and KIA India entry Strategy. (n.d.). Brand Koncept. Retrieved from
https://www.brandkoncept.com/insights/mg-motor-and-kia-india-entry-strategy.html
Reaz, S. (2019, September 26). Changing tastes in a growing car market. The Daily Star.
https://www.thedailystar.net/shift/news/changing-tastes-growing-bangladesh-car-market-1805242
Wing, L. A. (2020, August 20). Bangladesh Automotive Industry: A Roadmap to the Future. Light Castle
Partners. https://www.lightcastlebd.com/insights/2020/07/09/bangladesh-automotive-industry-a-
roadmap-to-the-
future?fbclid=IwAR3LCQXoSqMIblubTQ1ynixAQW5j85NMN0zjWLVQQAJLoMiHJtvFZenKzqo
Chaliawala, N. (2019). MG Motor's focusing on building its brand, not volumes, for now: Rajeev Chaba,
Managing Director. India Times. Retrieved from
https://economictimes.indiatimes.com/industry/auto/auto-news/mg-motors-focusing-on-building-its-
brand-not-volumes-for-now-rajeev-chaba-managing-director/articleshow/69590291.cms?from=mdr

Redirecting... (2020). Retrieved 28 September 2020, from https://www.facebook.com/mgbangladesh

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