Registration Number : MSc 16-33-804

Student Name : Thimila Weerahandi

Module Title : International Marketing Strategy

Study Centre : Strategy College – Sri Lanka

By submitting this assignment I confirm that I understand and abide by the Strategy’s plagiarism and collusion
regulation

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 Table of Contents

Task 1.
Amanté in Bangladesh ……………. 04

Task 2.
Tariff & Non-Tariff Barriers in Bangladesh ……………. 09

Task 3.
3.0) Cultural distances between Bangladesh and Sri Lanka ……………. 13

3.1) Market entry and Operating Strategies. ……………. 14

3.2) Competition from Emerging Markets ……………. 17

Task 4.
4.1) Marketing Communications to launch the product ……………. 20

4.2) Adapting Marketing Communication to Bangladesh ……………. 21

Bibliography ……………. 24

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 1. Amanté in Bangladesh

Bangladesh Overview

Population 165 million

GDP 195 billion (us $)
Annual GDP growth 7.1
Per capita 3890 (us $)
Unemployment rate 4.3%
Adult literacy rate 61.5%

Bangladesh has one of the largest population in the world. It has a growing economy,
having maintained a steady GDP growth averaging above 6 percent since 2010.

Bangladesh is now politically stable country.

Women in Bangladesh

Population 71933901 (49.5%)

Women in labour force 57.8%
Females over 25 with secondary education 31.2%
Women in Parliament 19.7%

Lingerie Experience in Bangladesh

Average spend on lingerie per month (Bangladesh Taka)

Up to 500 24.5%
500-1000 40.0%
1000-2000 26.4%
2000-3000 7.3%

Shop lingerie for yourself

Once a month 90.7%

2-3 times a month 8.4%
More than 3 times a month 0.9%

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 Annual gross income (Bangladesh Taka)

Below 500000 22.4%

500000-1000000 15.0%
Above 1200000 20.6%
Data not reveal 42.0%

How important are the following features of a shopping experience to you?

(Weighted average)

Price 3.58/5
Brand Name 3.87/5
Product quality 4.67/5
Latest fashion trend 3.64/5

Online buying 1.23/5

Department store 2.26/5
Standalone stores 3.28/5

How relevant are the following factors to when choosing lingerie brand
(Weighted average)

Advertising 3.14/5
Online shopping options 2.41/5
Brand Ambassador 2.16/5

The Amanté brand is positioned as a value-premium product targeting women

between the ages of 25 and 45 years, in the middle and upper income brackets.
Amanté have taken the value premium position for its brand which means
international fashion and style at affordable prices. So amanté is not an exclusive
boutique store brand and it is also not a lower-end, value-brand. Our position is the
middle to upper range where there is a need gap for quality and fashion at affordable
prices.

With above data analyzing we can interpret how Bangladesh market is attractive.
Bangladesh women search for lingerie products mainly based on product quality and
brand image. The target middle and upper income in Bangladesh is relatively high and
it’s a growing market.

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 Our views about life are shaped by, our personal positive and negative experiences.
Brands today believe in creating those positive experiences while interacting with the
consumers. If they ensure that the experiences are engaging, surprising, beneficial and
consistent they have a greater chance of staying on top of the consumers head. Brand
experience can thus be defined as feelings, sensations, subjective thoughts which are
evoked in the consumers mind, by the brand design, colors, packaging, store
environment and brand communication.

Amanté Competitive strength

Inspiring the world with design, innovation and excellence, MAS Holdings has established
themselves as the preferred supplier of the world’s foremost fashion brands. A company built
on a far reaching idea, MAS exuberates the perfect blend of daring, creativity and visionary
thinking that has earned them global acclaim.

Today MAS is one of Asia’s leading manufacturers of intimate apparel, sportswear,

performance wear and swimwear, with an annual turnover of over USD 1 billion. Their 41
state-of-the-art facilities spread over 11 countries provide employment to over 65,000 people.

MAS’s customer portfolio include strategic partnerships with global brands Victoria’s Secret
and Nike, as well as world-renowned brands such as Marks and Spencer, DBA, lululemon,
Soma, Columbia Sportswear, Ralph Lauren and Banana Republic.

Garment manufacturer MAS Holdings has introduced the first brand name lingerie from Sri
Lanka for South Asia. The company started the process by launching its first 'own brand'
label, 'amanté,' in India, in a US$ 10 million investment. MAS Holdings is the first Sri
Lankan company to enter the Indian lingerie retail sector with its own brand name. While
building the brand in India, over the next few years, MAS Holdings plans to introduce the
amanté, brand of lingerie, sleepwear and swimwear across the South Asian region.

Sri Lanka is noted internationally as a specialist producer of high-end lingerie for leading
international brand names. However, amanté, is the first Sri Lankan lingerie brand to the
world.

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MAS Holdings, which is the largest producer of intimate wear in South Asia, says the brand
encapsulates 25 years of expertise and experience in the specialized field of intimate wear.
The brand is also supported by a fully backward integrated supply chain. Over the past 20
odd years MAS Holdings has been developing its backward linkages for the manufacture of
high quality lingerie and the amanté brand is the ultimate outcome.

Summary of Bangladesh Lingerie Market Attractiveness & Firms competitive

strengths:

 Market size & growth

 Market potential
 FTA
 Proximity

 Brand image & value

 Product quality and price
 MAS factory in Bangladesh
 Expertise in retail operation
 Established supply chain
 Product availability
 Product portfolio
 Quality awards

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 2. Tariff & Non-Tariff Barriers in Bangladesh

Tariff Barriers

Tariffs and duty rates are regularly revised and are subject to change without notice but there
has been a decrease of duties in recent annual government budgets. The peak rate of basic
import duty has fallen to 25 per cent. The other applicable charges are:

 advance income tax: five per cent

 value-added tax: five to 15 per cent
 supplementary duties : 25 per cent for a wide range of consumer products – 1100
tariff lines
 Corporate tax: The corporate tax rates are

37% for companies whose shares are publicly traded

40% for those whose shares are not publicly traded

40% minimum for foreign companies

45% for foreign banks

 Customs: No import duty is applicable for an export oriented industry. For other
industries it is 5% ad valorem. The National Board of Revenue provides a listing of
customs duty exemptions.


Non-Tariff Barriers

Some product restrictions are applied by government organizations, which include:

 banned list
 restricted list
 freely importable items (imports falling outside the above lists could be imported
either freely or by fulfilling specified conditions)
 Certification requirements for all food products.

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All other permitted imports require a Letter of Credit Authorization (LCA) form to be
completed:

Labelling:

Outside containers should bear the consignee and port mark and should be numbered to
accord with the packing list, unless the contents can be otherwise readily identified. Buyers
should guide exporters. Outer containers weighing more than one tone must have the gross
weight stenciled on the top and two sides.

All goods must show the country of origin in large indelible letters, preferably in English, on
label or container.

Packaging:

Packing should be strong and should guard against extreme heat in summer, humidity in the
rainy season and possible storage in the open.

Instructions for handling should preferably be expressed in English or self-explanatory

symbols.

Methods of quoting and payment:

Quotes should be by pro-forma invoice and preferably in US dollars on Cost and Freight
Bangladesh port. Freight and insurance components should be separately shown.

Payment for most imports must be made by irrevocable letter of credit (L/C).

Insurance:

Must be arranged by importer with any local insurance company.

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Since 1975 both Sri Lanka and Bangladesh have been members of the old Bangkok
Agreement (now renamed as the Asia Pacific Trade Agreement) and being beneficiaries of
preferential tariffs for some products traded between them. During 1995-2005, both countries
were beneficiaries of SAPTA preferential trading and after 2006 under SAFTA's lower
tariffs. Air connectivity between the two countries increased after 2010 with the
commencement of direct flights between Colombo and Dhaka. The flights started in 2011
with three flights per week and have now been increased to 5 flights per week. In September
2011, the Sri Lanka-Bangladesh Business Cooperation Council was formed and in November
2013 under its patronage and that of Bangladesh High Commission in Sri Lanka, a
Memorandum of Understanding was signed between the National Chamber of Commerce of
Sri Lanka and the Dhaka Chamber of Commerce and Industry to promote more business
interaction between the two countries.
Also SAPTA was signed by seven south Asian countries and four rounds of negotiations
were held to reduce tariff on large number of items.

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 3.0 Cultural distances between Bangladesh and Sri Lanka

Bangladesh is a hierarchical society. People are valued because of their age and situation.
Elder people are certainly observed as wise and are granted respect. The majority of
Bangladeshis are Muslim.
However, most still very much mix this with pre-Islam folk customs. Bangla is the main
language. Written business correspondence and trade literature should be in English. Most
Bangladeshi business people have a fair knowledge of English. Often, in the presence of
foreigners, Bangladeshis may converse among themselves in their native tongue. In most
occurrences this is unintentional and should not be construed as discourteous behavior.

Women visitors should cover their arms and legs including ankles to avoid giving offence.
Women should not wear tight clothing.

Meetings can be subject to interruptions, such as phone calls or staff members walking in to
have documents signed. This is an accepted practice as it’s considered rude not to
immediately respond to phone calls.

Communication is formal and follows a hierarchical structure. Deference to the most senior
person in the group is expected. This is specifically true when dealing with government
officials.

Bangladeshi businesses are generally hierarchically structured. Decisions will not be made
unless the owner, company director or senior manager are present at a meeting.

Corruption affects many aspects of daily life in Bangladesh and is often cited as a barrier to
private sector development.

One of the biggest challenges facing foreign companies in Bangladesh is how to avoid paying
‘speed money’. ‘Speed money’ is unofficial, under the counter payments to minor officials to
expedite business. Politicians, bureaucrats and law enforcement officials often wield
significant discretionary power and there have been some abuses.

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Bangladesh is 173rd in the World Bank’s ease of doing business ranking.

Procurement practices in Bangladesh:

 often lack transparency

 have significant bureaucratic burden

Bangladesh is ranked 145th in Transparency International’s Corruption Perceptions Index.

To overcome these issues:

 Recruitment of locals for Management team and outlet Staff is essential.

 It is better to recruit a country manager from Bangladesh.
 Advertisements to be localized through Bangladesh ad agency.
 Advertisements and Other Communication methods to be used in local language and
English.

3.1 Market entry and Operating Strategies.

Market Entry Strategy:

There are a variety of ways in which a company can enter a foreign market. No one market
entry strategy works for all international markets. There will be a number of factors that will
influence your choice of strategy, including, but not limited to, tariff rates, the degree of adaptation
of your product required, marketing and transportation costs. While these factors may well increase
your costs it is expected the increase in sales will offset these costs.

Amanté has a very good business success story in India. So it’s better to use the same Direct
Exporting (Direct exporting is selling directly into the market you have chosen using in the
first instance you own resources) market entry method for Bangladesh. Many companies,

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once they have established a sales program turn to agents and/or distributors to represent
them further in that market. Agents and distributors work closely with you in representing
your interests. They become the face of your company and thus it is important that your
choice of agents and distributors is handled in much the same way you would hire a key staff
person.

In Bangladesh Company should have a local representative either on a commission basis or

as an agent if you intend to export directly. A local partner can deal with Bangladeshi
bureaucracy and advice on the best type of advertising. An agent is allowed to participate in
international tenders on behalf of their foreign principle. Dhaka based agents should be able
to cover all of Bangladesh.

The 1972 Contract Act details the rights and liabilities of an agent and also of the principal.

Most agency agreements have a clause permitting either party to give due notice of
termination. It is prudent to include a contract clause which agrees to allow an independent
arbitrator outside of Bangladesh to settle any disputes between parties.

The Bangladesh International Arbitration Centre (BIAC) was launched in 2011. This is
Bangladesh’s first arbitration center for the settlement of commercial disputes.

Also it should be aware of the risks of marketing goods through distributors in Bangladesh. If
you choose this route into the market be careful about providing exclusive distribution rights.

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Operation Strategy:

A convincing layout of operational strategies provides a powerful evidence and accords

credibility to the financial and commercial targets established in a business plan.

 Customer care call & online center with complain handling mechanism.
 Local marketing agency
 Self-marketing methods.

 Locations:

1. Placing Amanté stores in major cities such as Bogra, Dhaka, Chittagong, Sylhet,
Rangpur City.
2. Renting Store spaces from biggest shopping malls such as Jamuna Future Park,
Bashundhara City.
3. Launching Amante Online retail shop & online Amante products selling through local
sites such as aponzone.com

 Staff:

Staff will be well trained, experienced, locals with fluency of English knowledge. This work
force will be given advantages of

1. Superior knowledge on Brand and its product portfolio

2. Loyalty to the Brand
3. Expertise product selling skills

Female sales & management team will be managed by local country manager. When
Bangladesh Nationals are recruited for Amanté work force it will be given advantages of

1. Fast implantation
2. Superior cultural knowledge
3. Expert Language skills
4. Superior cultural knowledge
5. Economical

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 3.2 Competition from Emerging Markets

In 2002, exports of textiles and clothing accounted for 77% of Bangladesh’s total exports. By
2013, the industry employed 4 million labors, mostly women, for this $19 billion a year
export-oriented, ready-made garment industry, second only to China. Bangladesh is the
world’s second largest apparel exporter for western brands. By 2013 there were
approximately 5,000 factories forming part of the $19 billion-a-year industry. Bangladesh
maintains low labor costs, allowing it to be competitive in the industry with other countries.
In 2012, the minimum wage was set at $37 per month while the country’s inflation is in
double digits.

Hardy Associates is a leading manufacturer and exporter of lingerie’s items of Bangladesh.

Daily Hardy produces 13000 pieces. Also Apex Lingerie Limited produce 23 million pieces
sets per year.

How Amanté face challenges posed by competitors:

 Products - amanté’s product portfolio includes daily and fashion lingerie, sports bras,
swimwear, and sleepwear.
 Brand & Quality - amanté is a part of MAS Brands which is a subsidiary of MAS
Holdings, South Asia’s largest supplier of niche market intimate wear. The brand
embodies 25 years of excellence held by the conglomerate in lingerie manufacturing.
The brand being voted as ‘Product of the Year’ in the lingerie category in the largest
independent consumer survey carried across India.
 Labor cost – Mas holdings have factories in 11 countries with over a 65000 work
force. MAS is building an iconic eco-manufacturing plant to support the Plan-A
initiative of M&S for sustainable sourcing in the South Asian region and is
implementing MOS (MAS Operating System). Mas have their own factory in
Bangladesh which is MAS Intimates Bangladesh Private Limited. Because of these
labor force & factory, they can minimize their production cost.

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  Promotion – MAS has been regularly featured in the international press with emphasis
on its ethics and innovative people-management practices. Also amanté used a very
powerful marketing campaign in India at it was a big success. Also they have an
attractive online store which contributes 16% of entire sales.
 Production Experience – MAS clients were the biggest brands in lingerie and
sportswear: Victoria’s Secret, Gap, Inc., Nike, Marks and Spencer, Speedo and
Triumph. MAS manufactures 46 million bras and is Victoria Secret’s largest supplier.

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 4.1 Marketing Communications to launch the product

Personal selling

 It is beneficial where wages tend to be low, since staffing costs will be comparatively low.
 Where there are many languages, trained local sales personnel that can convey company
message in local languages.
 The sales force will need to be supported. Commercial administration staff will have to take
care of sales enquiries, send out product literature and samples, and make quotations – often
online.
 Management team to invest time and effort in recruiting, motivating, organizing and training
a local sales force. Recruits will need to know about products and markets, language and
culture, the location of target segments, customer buyer behavior – and that’s just the
beginning.
 Place expatriate employees into target market, where business etiquette varies from culture to
culture, train staff in what to expect – or recruit salesmen from the local market.

Advertising

 When considering press advertising try to anticipate the levels of literacy within the nation in
question. Where literacy levels in Bangladesh are lower, perhaps company could use a more
visual campaign.
 Bengali & English languages is the press written in papers.
 TV commercials in both Bengali & English languages.
 Where visual communication is paramount, choosing suitable poster locations.
 Cinema is tremendously popular in Bangladesh. So target population in relation to cinema is
high. This factor can be concern for advertising.
 Select suitable Radio stations for advertising and sponsor radio programmes.

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 Direct Marketing

 Direct marketing seeks to target individual customers with the intention of

delivering personalized messages and building a relationship with them based
upon their responses to the direct communications.
 Direct-response media such as direct mail, magazine inserts, television and print
advertisements that use telephone numbers to encourage a direct response are a
derivative of advertising.

Other potential media

 Online marketing using company own domestic site, or one developed specifically for the
target market. Local Bangladesh websites are very different to Western sites. They are not
very busy and every space is not filled with images and text. Font and Images sizes are high.
 International tradeshows, trade missions, sponsorship for women events.
 Public Relations such as event management, sponsorship and lobbying.
 Direct mails to target groups.
 Social media campaign to target youth students, executives and professionals.

4.2 Adapting Marketing Communication to Bangladesh

Marketing communications in international markets needs to be directed with care. Amanté

has to consider some of the key issues that you need to take into account when promoting
products or services in Bangladesh markets. There will be effects upon your media choice,
cultural issues to be considered, as well as the media choices themselves – personal
selling, advertising, direct marketing and others.
Other factors that need to be considered in relation to international marketing
communications (Promotion) include:

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 The work ethic of employees and customers to be targeted by media.
 Levels of literacy and the availability of education for the national population.
 The similarity or diversity of beliefs, religion, morality and values in the target nation.
 The family and the roles of those within it are factors to take into account.

There are a whole range of cultural issues that international marketers need to consider when
communicating with target audiences in different cultures.

Language will always be a challenge. Of course language choice could affect branding
choices, and the names of products and services. This problem can be overcome by using
local and English languages for advertising and to prepare Press, Radio and TV
advertisement through Local Bangladesh Ad agency who knows their culture well. Specially
outdoor advertisement such as Hoardings is not possible in Bangladesh. Public
Advertisements includes semi nudity won’t work in Bangladesh due to their higher cultural
habits and Muslim sociology. But it can be used in proper manner in web advertising, social
media advertising and mail campaigns and leaflets and brochures.

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Advertisement with a creative style will be work for executive level females in Bangladesh.

When Amanté launching the brand in Bangladesh, the category was such that people were
not even aware of good fitting lingerie. It was very important for Amanté that they will not
change the place of shopping for a brand and they would still continue to shop as they wanted
a good product. Amanté should advertise in newspapers, radio, in mall, editorial coverage
and launch the product with a Brand ambassador who is a local popular character. In India
Isha Gupta launch the first store. Likewise in bangladesh Amanté can advertise with a
popular movie star like Mahiya Mahi or Apu Biswas.

Due to Bangladesh political, religious, sociological and cultural issues the most preferred
method of marketing for Amanté products is Direct marketing. This will help to overcome
the issues and to get more personal with customers and make the brand image. Leaflets and
notices sending through mails and social media marketing will help Bangladesh women to
select their choices of lingerie without any hesitation and in a privacy manner.

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 Bibliography

Cron, W., Decarlo, T. (2010) Sales Management concept and cases, Tenth Edition

Kotler, P. (2009). Principles of Marketing (13th Edition).

Kotler, P. (2001). Marketing Management Millennium Edition, Tenth Edition

Philip, R., john, G. (2013). International Marketing, 13th Edition

Mas Holdings. Annual Report 2015
Mas Holdings. Annual Report 2014
Mas Holdings. Sustainability Report 2014

https://en.wikipedia.org/wiki/MAS_Holdings www.investopedia.com
http://global.amantelingerie.com/blogs/amante-woman
www.economictimes.indiatimes.com
www. in.amantelingerie.com
www.masholdings.com
www.linkedin.com/company/mas-holdings www.insightsquared.com

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