Army Institute of Business Administration

Savar Cantonment, Savar

Course Name: Marketing Management

Course Code: MKT 2402

Term Paper on,

“BCG Matrix, Product Market Expansion Grid and Porter's
Generic Analysis of some selected SBUs of Meghna Group of
Industries”

Submitted To
Md. Mahabub Morshed
Lecturer
Army IBA, Savar
Submitted By
MD Niyamul Islam Ovi
92211106
BBA-09
Date of submission: 01/06/2023
Letter of Transmittal

Date: 01 June, 2023

Md. Mahabub Morshed

Lecturer,

Army Institute of Business Administration, Savar.

Subject: Submission of Term Paper on “A marketing management analysis of Meghna

Group of Industries using BCG Matrix, Product-Market Expansion Grid, Porter’s
Generic Strategies.”

Honorable Sir,

We are pleased to submit the Term Paper on Meghna Group of Industries, which is a
requirement of this course. While preparing this report, we learned many things about BCG
Matrix, Product Expansion Grid, and Porter’s Generic Strategy also a great deal about
Meghna Group of Industries, which have enhanced our business knowledge in many ways.
However, we hope you will find this term paper objective and accurate. We appreciate this
opportunity to learn what you have provided us with. Preparing this report has been a
pleasant learning experience for all of us. If you need further clarification on any topic
regarding our term paper, please contact us at any time at your convenience.

We, therefore, request you to accept our report and oblige thereby.

There may have been many omissions and errors on our part but we have tried our level best
to prepare this report to the required standard. We are looking forward to your kind appraisal
of this term paper.

Sincerely yours,

MD Niyamul Islam Ovi

Batch: BBA-09 (B)

ID: 92211106
 Acknowledgment

We sincerely acknowledge our debt to our course advisor Md Mahbub Morshed sir, Lecturer,
Army Institute of Business Administration, Savar for his valuable counseling towards the
improvement of the report. without his encouragement, this would have never been possible.

We are overwhelmed with gratitude to our course advisor as he helped us in terms of

propulsion and completing this term paper impeccably. We are also acknowledging all of
those whose sites from which we have taken necessary help. Finally, we are pleased to
complete the report on the given subject properly and authentically. The report is prepared
only for academic purposes, not other reasons.

Sincerely yours,

Name: Md Niymul Islam Ovi

ID: 92211106
 Table of Contents

Name of Chapter Topic Number of Pages

Chapter 1 Introduction 05-08
Objectives
Methodology
Scope of the study
Literature Review
Limitations

Chapter 2 Company Overview 09

Chapter 3 Marketing Management Analysis 10-20

BCG Analysis
Product/Market Expansion Grid
Porter’s generic strategies
Overall Cost Leadership

Differentiation

Chapter 4 Major gaps and drawbacks 21-24

Recommendations
Conclusion
References

Chapter: 01 (Introduction)
Introduction

Meghna group of industries is one of the largest conglomerates in Bangladesh, encompassing

a vast array of industries including textiles, cement, consumer goods, and automobiles.
Established in the early 1970s, Meghna Group has grown to become a major player in the
country's economy with a diverse range of products and services catering to both domestic
and international markets. The group is committed to delivering premium quality products
and services while upholding a strong ethical framework and a deep-rooted dedication to
sustainability and social responsibility. With a team of over 25,000 employees and a presence
in nearly every corner of Bangladesh, the Meghna group of industries is poised for even
greater success in the years to come. Mostafa Kamal is the founder of the Meghan group of
industry. Their headquarters are located in Gulshan Dhaka Bangladesh. There are many
products of the Meghan group.

Such as fact, building materials, basic & petrochemicals, economic zones, logistics, energy &
power, pulp & paper, stationeries, seeds crushing, feeds, printing & packaging, fiber, pet
bottles, pg, aviation, shipping, real estate, financial institutions, media, hospitality,
information technology. In 2019 their revenue was 25,000 crores us$3 billion also 50,000
employees work there.

Major SBUs of Meghna Group of Industries:

● Consumer Brand & Commodity Products

● Chemicals
● Cement
● Fiber
● Printing & Packaging
● Energy & Power
● Pulp & Paper
● Aviation
● Poultry & Fish Feed
● Steel
● Real Estate
● Insurance
● Security & Bank
● CNG
 Fig: Subsidiaries of Meghna Group of Industries

Objectives of the Study:

General objective:

To gain a broad understanding of Meghna Group.

Specific objectives:

• To study the major Strategic Business Units of the Meghna Group.

• To identify various development programs and initiatives of Meghna Group.

• To identify the challenges faced by Meghna Group.

• To analyze Meghna Group's Strategic Business Units with BCG Matrix, Product-Market

Expansion Grid, and Porter's Generic Strategies.

Methodology of the Study:

This term paper gives a general idea of BRAC as a whole and provides an analysis of some of
its subsidiaries. Secondary sources of data were mainly used to prepare this term paper. The
sources are listed as follows:
• Official website
• Books published on directly related topics
• Published reports
• Web browser

Scopes of the Study:

• To understand and learn about BRAC Meghna Group’s major Strategic Business Units.
• To understand the strategies of BRAC Meghna Group's programs and initiatives.
• To have a general overview of Meghna Group and its functions.

Literature Review:
"Expanding into new markets is one of the most common growth strategies. The product
market expansion grid provides a useful framework for evaluating the risks and rewards of
different expansion options. Companies can choose from four different strategies: market
penetration, market development, product development, and diversification. Each strategy
carries its own risks and requires different capabilities and resources to succeed." -Kotler, P.,
& Armstrong, G. (2016). Principles of Marketing. Moreover, he has provided practical
examples based on successful businesses which acted as a guide to doing BCG matrix
analysis for any business. "The BCG matrix is a tool for managing a portfolio of products or
services. It classifies products into one of four categories based on their market share and
growth rate. Cash cows are products with a high market share in a mature market and
generate significant cash flows. Stars are products with a high market share in a high-growth
market and have the potential to become cash cows. Question marks are products with a low
market share in a high-growth market and require significant investment to increase market
share. Dogs are products with a low market share in a low-growth market and should be
divested or repositioned. The BCG matrix can help managers make strategic decisions about
how to allocate resources across their product portfolio." Grant, R. M. (2019). Contemporary
strategy analysis.

Limitations of the study:

• The study is based on secondary sources of data.
• The study may not provide an in-depth analysis of Megna Group operations.

Chapter: 02 (Company Overview)

Meghna Group of Industries is one of the largest Bangladeshi conglomerates. The industries
under this conglomerate include automobile, light engineering (bicycle), cement, packaging,
textile, etc. Meghna Group was established by Bangladeshi entrepreneur Mizanur Rahman
Bhuiyan. The history of one of Bangladesh’s largest leading conglomerates, Meghna Group
of Industries (MGI) can be traced all the way back to 1976 when its predecessor operated
under the name of Kamal Trading Company. The conglomerate itself has humble origins and
began its life as Meghna Vegetable Oil Industries Ltd. in 1989 on a small patch of land in
Meghnaghat, Narayanganj. It is Bangladesh's largest bicycle manufacturer and is said to be
sold in Bangladesh, as well as in countries like Germany, the UK, and other parts of Europe.
They are one of the top garments manufacturers in Bangladesh exporting to Europe high-end
fashion brands. Meghna Group has also invested in Prime Bank, a commercial bank in
Bangladesh. MGI represents a global enterprise and brand that houses more than 50,000
employees, 6,300 distributors, and 15,000 suppliers under its umbrella and has an annual
turnover of approximately $2.8 billion. MGI became the first company in Bangladesh to
establish a private economic zone known as the "Meghna Economic Zone", which has since
been followed by the creation of two further economic zones, which are named “Meghna
Industrial Economic Zone” and “Cumilla Economic Zone” respectively. Internationally MGI
has a substantial presence in the Middle East, Southeast Asia, Europe, South Africa, and
North and South America. The conglomerate has expanded even further since this point, with
an unprecedented investment of $451 million in 2020 that has erected nine new industrial
units within its multiple economic zones. Throughout this process, the unwavering
commitment of its visionary leader, Mostafa Kamal, has been pivotal for both the
conglomerate and the Bangladeshi Economy. Renowned for his entrepreneurial expertise and
patriotism, Mostafa Kamal has played a key role in the development of industry, healthcare,
education, sports, and social welfare in Bangladesh. Their integrity and dedication to the
group that he has played a vital part in the overall success of MGI.

Chapter: 03 Marketing Management Analysis

BCG Matrix Analysis

BCG Matrix (also known as the Boston Consulting Group analysis, the Growth-Share matrix,
the Boston Box, or the Product Portfolio matrix) is a tool used in corporate strategy to
analyze business units or product lines based on two variables: relative market share and the
market growth rate. By combining these two variables into a matrix, a corporation can plot its
business units accordingly and determine where to allocate extra (financial) resources, where
to cash out, and where to divest. The main purpose of the BCG Matrix is therefore to make
investment decisions on a corporate level. It classifies products or units into four quadrants:

a. Stars: High-growth, high-market-share products or units with the potential to become

market leaders and generate substantial profits.
b. Question Marks (or Problem Children): High-growth, low-market-share products or units
that require further evaluation. They may either become successful and move to the "Stars"
quadrant or fail and be discontinued.
c. Cash Cows: Low-growth, high-market-share products or units that generate steady cash
flow but have limited growth potential.
d. Dogs: Low-growth, low-market-share products or units that may not be profitable and
have limited potential. They might need to be divested or discontinued.

Fig: BCG Matrix

BCG Matrix analysis of Meghna Group of Industries FMCG Products

Star: Products in this quadrant have a high market share and high growth rate. For Meghna
FMCG (Fresh), their salt & sugar can be considered as stars. These products have a high
market share and its market is growing steadily.. Now it is among Bangladesh’s most popular
and highest-selling drinking water brands. Fresh Salt & Fresh Tissue became the 2nd most
loved brand in their categories. 14th edition of the Best Brand Awards in partnership with
NielsenIQ and The Daily Star, reads a press release.

Question Marks: Products in this

quadrant have a low market share but a high growth rate. For
Meghna FMCG (Fresh), Fresh biscuits & weafer can be considered as question marks. These
products have a growing market, but Meghna has not yet established a significant market
share.

Cash cow: Products in this quadrant have a high market share but a low growth rate. For
Meghna FMCG (Fresh), their hot beverage products such as Fresh Spice can be considered as
cash cows. These products have a stable market, and Meghna has already captured a
significant market share. As from the 14th edition of the Best Brand Awards in partnership
with Nielsen IQ and The Daily Star, reads a press release Fresh Masala has earned the 3rd
position in the respective spice category.
Dogs: Products in this quadrant have a low market share and a low growth rate. For Meghna ,
some of their beverage products such as Fresh Dhoom Cola, Fresh Soul Up, Fresh Googly,
Fresh Club 9 Soda can be considered as dogs. These products have a low market share, and
the market for these products is not growing rapidly.

Fig : BCG of Meghna Group FMCG Products

 Product Market Expansion Grid

The Product/Market Expansion Grid is a tool used by firms to analyze and plan their
strategies for growth. Often referred to as G, the sustainable growth rate can be calculated by
multiplying a company's earnings retention rate by its return on equity. Dr. Ansoff, known as
the father of strategic management, developed the Ansoff matrix, which uses products and
markets as two factors to divide four different products and market combinations and relevant
marketing strategies. The product market expansion grid considers two main factors. The
product and the market. The product can either be a current product or a new product. And
the market can either be a current market or a new market. The four growth strategies
identified by the product/market expansion grid, also known as the Ansoff Matrix, are market
penetration, market development, product development, and diversification.

Fig: Product/Market Expansion Grid

Porters Generic Strategies

Porter’s generic strategies indicate some strategies through which a company can achieve
sustainable competitive advantage over the other competing products or firms in the market.
Business leaders face many challenges while running the business so here it is very important
to determine a different and effective strategy than their competitors in the market which
gives them a competitive advantage. Michael Eugene Porter (born May 23, 1947) is an
American academic known for his theories on economics, business strategy, and social
causes has suggested three overall business strategies that could be used by business leaders
to gain competitive advantage. Here the competitive advantage is a kind of advantage that
can be gained by businesses by introducing some greater value to customers this greater value
can be a quality product at a lower price or some greater benefits that make the customer
think that the product is worth buying at a higher price.
 Fig: Porter’s generic strategies

Market Penetration: The market penetration strategy is an enterprise development strategy

that fully utilizes its market potential and realizes profit growth based on existing products,
which is also the most basic development strategy of a company. In this case, the most typical
strategy for enterprises to expand business performance is price competition. For example,
Fresh sugar & salt is the most popular product of Meghna(FMCG). They can add drinks that
are not so popular and give free with 1 litter of two bottles. For campaigns.

Market development: Market development is a strategic step taken by a company to

develop the existing market rather than looking for a new market. The company looks for
new buyers to pitch the product to a different segment of consumers to increase sales. Market
Development is a 2-step process to tap the untapped market. It begins with market research
wherein a company does a segmentation analysis and shortlists market segments that are
worth pursuing. It is an attempt to use the existing product or service to attract new
customers. The goal is to expand the reach or tap into a different segment or unexplored
market. MARKET PENETRATION MARKET development for example Oil & Tea export
to other countries like Myanmar, Nepal, Bhutan, and Sri Lanka.
Product development: Product development strategy refers to the use of existing customer
relationships to introduce new products to existing customers. The most suitable strategy for
an enterprise is to continuously promote new products. It needs to refine and expand the
experience of the original market, analyze and predict from the perspective of development,
analyze the changes and upgrading of market demand, and realize the steady improvement of
performance through more product portfolios.
For example Fresh ice cream

Diversification strategy: Diversification strategy is a business growth strategy identified by

a company developing new products in new markets. That definition tells us what
diversification strategy is, but it doesn’t provide any valuable insight into why it’s an
ideal business growth strategy for some companies or how it is implemented. First and
foremost, companies diversify to achieve greater profitability. Diversification is used by
businesses to help them expand into markets and industries that they have currently explored.
For example, PHARMACEUTICALS and Travel Agency
Overall Cost Leadership
Overall Cost Leadership mean becoming the lowest price provider for a broad customer base
which allows them to consistently capture higher profits than the competitors. Here products
are sold in more units at lower prices. Firms achieve a competitive advantage through the
lowest cost compared to other firms. But they must maintain the product's standard too. This
strategy is applicable for a broad market and the lowest cost is the focus. For example,
menace deluxe cement price is low but the competitive scope is high & maintains standard
product quality. Overall Cost Leadership Low cost Long term commitment Differentiation
Unique features Superior brand quality Cost Focus Target a particular segment

Increase brand awareness Differentiation Focus Firm differentiation itself from its
competitors Low-Cost High-Cost Narrow Broad Competitive Scope Competitive Advantages
Companies who use this strategy In the case of burgers McDonald’s used overall cost
leadership & Toyota used cost leadership on their Micromax mobile product.
 Differentiation

Differentiation is doing something different and achieving a competitive advantage through

it. It targets to offer products or services that are totally different from the competitors and
for a target market that intend to value those products. These products are higher in price so
companies can capture higher profits than their competitors. This strategy is for a broad
market. Customers are very particular about their product and not very concerned about
price. Branding is very important here. For Example, fresh refined sugar price is high &
competitive scope is high. Fresh Refined Sugar is the number one sugar brand in Bangladesh.
It is produced in a fully automated system, using the most modernized processes Fresh
refined sugar is processed without touching by hands. It is very healthy sugar because no
hands are touching it hence the bacteria and dirt are not getting inside.

Apple Company uses differentiation strategies in the case of their iPhone.

 Cost Focus

A cost-focus strategy is when businesses attempt to attract customers based on price. A

focused cost strategy also aims to reduce operational costs within the business as much as
possible. For this reason, people often confuse cost focus with price focus. Price-focused
enterprises look for ways to reduce the price they pay for stock and try to sell items at the
lowest price possible. They aim to be cost leaders, but sometimes this can come at the
expense of their profit margin as they don’t earn very much per sale. Cost focus concentrates
on reducing costs, improving financial efficiency, and offering temptingly low prices too,
widening the markup price of their product or service. Fresh is using cost focus strategy in
their fresh googly product. This product price is low & competitive scope is narrow. Their
target customer kids. Papa Louie restaurant uses a focus
strategy in their papa pizzeria.

Differentiation Focus

Differentiation is an approach to competitive advantage in which a company attempts to

outperform its rivals by offering a product that is perceived by consumers to be superior
to that of competitors even though its price is higher & narrow competitive scope.
Example: Actifit is a subsidiary of the Meghna Group of Industries. Actifit load sensing
is using differentiation focus. High price, narrow competitive scope. At Amazon,
differentiation is done by using technology and human resources. The employees are
trained to deliver the best possible service to their customers. At Amazon, differentiation
is done by using technology and human resources. The employees are trained to deliver
the best possible service to their customers
 Chapter-04

Major Drawbacks/gaps of Meghna Group of Industries

There are some major gaps and drawbacks that the Meghna Group of Industries faces, which
could impact its future growth and success.
1. Environmental concerns: Meghna Group of Industries has been accused of contributing
to environmental degradation due to its heavy industrial activities. For instance, its factories
have been accused of polluting local water sources, emitting hazardous waste and greenhouse
gasses, and causing air pollution.
2. Labour issues: Meghna Group of Industries has also been accused of violating labor
rights and exploiting workers. Workers have reported long working hours, low wages, and
poor working conditions.
3. Health impacts: Due to environmental and labor issues, nearby communities have
reported negative health impacts, such as respiratory problems, skin rashes, and other
illnesses.
4. Safety concerns: The group has had safety mishaps, with workers injured or killed in
workplace accidents.
5. Corporate governance issues: Some have raised concerns about the lack of transparency
and accountability in Meghna Group of Industries' management and finances.
 Recommendations

Based on our observation, we have found some lacking in Meghna Group's overall compensation system. To
overcome those shortcomings, we have made the following recommendations-

● Meghna Group should arrange some training programs for its compensation managers to be more
efficient in this matter.
● It should introduce gain sharing plan in order to motivate the employees
● Stock options should be made available. If it is not possible to offer it to all the employees, then at
least executive-level employees should be provided with this option so that they feel a sense of
ownership and put more effort into the success of the organization
● They should pay for working overtime. There are many methods to decide on overtime payment. The
Group can select any one of those methods # They should follow a bottom-up approach in deciding the
compensation packages so that all the employees are satisfied.
● Meghna Group can offer a flexible benefits program, such as a cafeteria approach so that the
employees can choose their own benefits according to their needs. Here the bank can fix a budget for
each employee’s benefit, but the benefits will be chosen by the employees themselves.
● It should provide life insurance policies to the company’s employees.
● The Group may introduce long service awards in order to encourage the employees to stay with the
organization for a long time.
● They can provide childcare benefits so that female employees can maintain a work-life- balance.
● They should introduce paternity leave
 Conclusion

Meghna Group of Industries is one of the greatest companies in Bangladesh which deals with
products and services. Meghna Group Limited is always trying hard to satisfy both their
customer and employees. Because without satisfying the employees, customer satisfaction
can never be achieved. In order to keep the employees satisfied and motivated, Meghna
Group Limited practices a well-designed and well-implemented compensation system. They
try to follow a systematic procedure in all the activities related to compensation such as
fixing pay rates, developing incentive programs, practicing benefit packages, and managing
the total compensation system. They try to remain up to date with the external market so that
they can maintain external competitiveness. While designing the compensation and benefits
packages, they make sure that it is aligned with their corporate strategy. They always comply
with government laws related to compensation. And through effective compensation
management, they have ensured good performance of the employees and organization, the
satisfaction of customers and all stakeholders, and also fairness has been maintained. But
still, there are some lacking in their overall compensation system which has been discussed
earlier. If Meghna Group Limited can improve those things then its compensation system will
become more effective and employee satisfaction and performance will further increase.
 References

1. Website of Meghna Group www.mgi.org

2.Consumer brands & commodity https://www.fresh.com/us/aboutus.html

3.Website of Actifit https://www.crunchbase.com/organization/actifit

4.www.tbsnews.net/economy/corporates/fresh-wins-seven-accolades-
14thbest-brand-awards-557866

5. Principles of Marketing; Kotler, P., & Armstrong, G. (2016)

6. Contemporary strategy analysis; Grant, R. M. (2019).