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Term Paper

Value Chain Activities of Olympic Gold Battery

MGT 401 Section: 002

Submitted to: Shawkat Kamal Assistant Professor BRAC Business School

Submitted by: Raiyan Rahman 08104098 Tahsin Shoaib 08104077 Tawhid Rifat Ami 08104155 Imran Hossain 08104051

Submission Date 6th April 2011
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Value Chain Activities of Olympic Gold Battery

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6h April, 2011

Shawkat Kamal Assistant Professor, BRAC Business School BRAC University Subject : Submission of Project Report. Dear Sir, We are very thankful to you for giving us the chance of submitting a project report on value chain activities. We worked on Olympic Gold Batteries. In the following paper, we tried to get the information about Olympic Battery‟s value chain process through.

Thank you very much and we will cordially welcome any clarification and suggestion about any view and commencement described through this report. Your feedback will help us to improve.

Thanking you Raiyan Rahman 08104098 Tahsin Shoaib 08104077 Tawhid Rifat Ami 08104155 Imran Hossain 08104051

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Acknowledgement On Thursday 24th March 2011. Mr. who helped us in various ways to accomplish our objective. Deputy General Manager of the company cordially welcomed us to the company. contacted Mr. We would like to thank from the bottom of our heart. Mr. Mofizul Islam explained and showed us the distribution process. Shawkat Kamal to provide us with such a vast learning opportunity. Nazrul Islam. Business Strategy (MGT401). Mostafa Kamal showed us every step of the operation process and helped us to understand various important steps. father of one of our classmate. Akhtaruzzaman helped us to understand the procurement process. we would very much like to thank every person. Mr. Mr. Mr. Nazrul was our major host. Even though we worked really hard to complete this coursework. In future we would very much like to conduct such project work again. to learn about the Manufacturing and other industries of Bangladesh. while Mr. Madad Ali Virani. 4 . Mr. we had the opportunity to visit the Olympic Battery Factory for the purpose of end-of-semester term paper for the course. Kazi Mohiuddin Ahmed Reza. every person involved in this major coursework. but also helped us to learn practical knowledge about the manufacturing industry. I would like to thank our honorable course facilitator. Executive Director of the company for permission to visit Olympic Battery Factory. This coursework not only helped us to gain in-depth knowledge about the course. Lastly.

10 Competitor analysis: .......................................................... 11 Analysis of the SWOT MATRIX ................. 34 5 ............................................................................................................................................................................................... 22 Chapter 5: Service ............................................................................................. 7 Methodology: .......................................................................... 15 Chapter 3: Distribution ...... 20 Chapter 4: Marketing ....................................... 27 APPENDIX-2 .............................................................................................................. 32 APPENDIX-8 ..................................................................... 27 APPENDIX-1 ................................................................... 25 Conclusion: ......................................................................................................................... 30 APPENDIX-6 ......................................................................................... 10 Pricing Structure ................................................................ 24 Chapter 6: Secondary Activities ................................................................................................................................................. 11 Chapter 1: Procurement ..............................................................................................................................................................................................................Table of Contents Introduction .................... 8 Company Overview: .................................................................................................................................................................................................................................................................................................................................................................................................................... 26 APPENDIX ........................................ 33 APPENDIX-9 ....................................... 9 Product Overview: ............................................................................................................................................................................................................................................................................................................................... 29 APPENDIX-5 .............................. 28 APPENDIX-3 ................................. 31 APPENDIX-7 .............................................................................................................................................................................. 7 Scope ..................................................................................................................................................... 12 Chapter 2: Operations ............................................................................ 7 Objective .......................................................................................................................................................................................................................... 7 Limitation ....................................... 29 APPENDIX-4 ...............................................................

Executive Summary: This paper describes the value chain activity of Olympic Gold (UM3) battery which is a SBU of Olympic industry. In value chain activity they increase products value by using a different marketing strategy they increase the value of the product. Logistic department and shares handling department. Special features and unique attributes differentiate it from other local batteries. Currently Olympic battery is in the second position in battery industry. If whole seller and retailer face any problem regarding with the battery. Marketing. 6 . Olympic industry has several departments like Accounting and Finance. After quality check and packaging the batteries are ready to sell in market. The manufacturing process is very much sophisticated and the factory is equipped with modern facilities. the after sales service department immediately solve the problem. At procurement department they buy the inventory through LC and maintain a safety stock level. The value chain activity starts from Naraynganj Kachpur. Human resource. We further explore the others secondary activities of Olympic group which are responsible to run all the other operations smoothly. They have after sales service. They are now using both pull and push marketing strategy. We come to know about the manufacturing process of Olympic battery. Through it Olympic batteries are distributed all over the country. Olympic Industries has a strong distribution channel.

Methodology: Our term paper has mostly been done with the help of primary data collected from one to one interview from Olympic batteries personnel. And this way we collected all our necessary information from the Olympic battery factory. marketing and other secondary services that is followed by the company. Mofizul Islam who described us the distribution process. For the primary data we first went to the factory located at Kanchpur. 7 . we have prepared a SWOT Matrix which might help the company to find out many new opportunities of venture in the battery industry according to the current circumstances. procurement. With the help of the analysis. Scope: The scope of our project is restricted to the value chain activities of Olympic batteries only. Another objective of this report is to do this term paper for the completion of the MGT-401 course. Then Mr. Initially they didn‟t allow us to take pictures but later we convince them and took pictures. And also to look onto the various aspects of operation process. procurement. Mostafa Kamal introduce us with Mr. Akhtaruzzaman who described us the procurement process and about the software which they use to run the procurement process. Nazrul Islam‟s room and he gave us some sample of Olympic Gold batteries and Olympic Ball Pen.Introduction: Objective: The objective of this report is to analyze the value chain activities of Olympic batteries. Then we went to Mr. At the end. distribution. Operations Head greeted us and introduce with other staffs and officials. Narayanganj. we again went to Mr. He also gave us their new product Nutri Bar. Mostafa Kamal who showed us the step by step operation process. Nazrul Islam introduces us with Mr. We went there and Mr. We have also gathered some information about the company and some other information from secondary sources like the official website of the company and other documents provided by interviewee. Nazrul Islam. We were accompanied by a friend of ours Kazi Sakif Zaman Reza who arrange the meeting for us. distribution and marketing efforts of Olympic batteries. Then Mr. It will cover an analysis on the operation.

The interviewer didn‟t give us any statistical information which might have helped us for further analysis.Limitation: In the process of report writing we faced the following difficulties:    Due to the workload of the Olympic personnel. we had to change our company and we later did this term paper on Olympic Battery. This gave us less time to complete the overall paper. in some places we were not able to gather all the required data and information. 8 . Due to some unavoidable circumstances.

Olympic Industries believe in quality. The milestones achieved by the Olympic Group are given in APENDIX-1. and it has always yielded this influence to give back to the community.olympicbd.com 9 . The head office of the company is situated in Motijheel c/a and they have two production plants situated at Kachpur Narayanganj. and ball pens. Power and Information Technology. a wide range of biscuits. with over 40 brands and 53 SBU‟s. Innovation is their main key of success. It started steel production in 1950s but Olympic Industries Limited diversified its business into different consumer goods including biscuits. The brand values of the company are provided in APENDIX2. Olympic produces three types of dry cell batteries (UM1. Olympic Industries always try hard and sole to make innovative product and make their product line diversified. http://www. two types of handy ballpoint pens (Refill & Direct Filling) and even confectionery items. Source: Company Official Website. Olympic Industries Limited is currently the market leader in the biscuit market and second in position in the battery market in Bangladesh. Olympic Industries Limited began in June 1979 as Bengal Carbide Limited. They always try to meet consumer satisfaction and consumer expectation. Consistently Olympic Industries Limited is providing high and innovative quality products which its consumers can rely on. Today.Company Overview: Olympic Industries Limited is one of the largest private sector industries in Bangladesh which is engaged in diverse business areas. UM3 & UM4). Persistent quality makes this company different from others. and its extensive sales and distribution network. It has flourished its business in every possible sector including pharmaceuticals. confectioneries. batteries. trading on both the Dhaka Stock Exchange and Chittagong Stock exchange. its modern manufacturing facilities. Olympic Industries Limited is a public limited company. It has been able to stride forward because of its continuous vision for growth.

Olympic's production line includes three types of dry cell batteries (UM1. -No rust easily applicable -Instant power supply -Reliable -Durable -Temperature and pressure protective -Leak proof -Double layer protection Competitor analysis: The major Competitor of Olympic Batteries is SUNLITE battery produced by Quasem Dry cell Limited. This product has the highest demand among the other brands produced by Olympic. -Environment Friendly Battery. A comparison of different uses of battery of different products and their durability is given in Appendix 3 &4. Walton. Special Attribute: .Heavy Duty Battery. Olympic Gold delivers a dependable and powerful performance. 10 .Product Overview: Olympic Industries has become a household brand name by providing innovative product that match continuous change of consumer tastes.But the most selling battery is Olympic Gold (UM3 R6). Maxwell. and Sonica. UM3 & UM4) . There are also other international and local competitors like Sony. -The Only metal jacket Battery -Produced in Bangladesh. -Each Battery is electronically tested.

Strength-Opportunity 1. where the demand of drycell batteries still exist. 2. For example four drycell batteries can be combined and a circuit being made. Olympic Batteries Ltd has been operating for a long time in the Bangladesh market and has a good brand image. this can be used to charge mobile phones when people are at remote places. with the launch of alkaline and rechargeable batteries in its product list. it can further increase its product range. The following section describes the strategies found from the SWOT MATRIX.Pricing Structure Brand UM-1 Olympic Gold Size D UM-3 Olympic Gold AA UM-4 Olympic Digital AAA UM-3 Olympic Power AA Price per pair BDT 40 BDT 20 BDT 30 BDT 22 Analysis of the SWOT MATRIX The SWOT analysis and the SWOT Matrix has been provided in APPENDIX-5 & APPENDIX-6. it can aim to produce more and export these batteries to Mid East African countries. The drycell batteries can be used in other ways than conventional way. Weakness-Opportunity 1. Olympic can 11 . Alkaline and rechargeable batteries are not produced in Bangladesh but it has a very good prospect in this country. Olympic Batteries Ltd has very high production capacity and produces quality drycell batteries.

Olympic Batteries can emphasize more on research and development to alkaline and lithium batteries and increase their market share. 2. They can use this experience and their brand image to tackle the price sensitive customers. Usually. The procurement process not only involves the purchasing of commodities but also quality and quantity checks. the increase of the price of raw materials and foreign exchange rates can be tackled by increasing the number of units produced and achieving economies of scale. Weakness-Threat 1. Chapter 1: Procurement 1. which can be acquired cheaply.1 Procurement This is the process of obtaining goods and services from preparation and processing of a requisition through to receipt and approval of the invoice for payment. materials or supplies required by an organization so it can effectively meet its business objectives. 2. Olympic Batteries Ltd has been operating for the past 29 years and already knows how the consumers react. As Olympic Batteries Ltd imports almost most of its raw materials. Procurement can be defined as the responsibility for obtaining (whether by purchasing. hire or other legal means) the services. Olympic should emphasize more on the Pull Strategy and produce more advertisements and other marketing efforts to increase the demand of the drycell batteries. suppliers are listed and pre-determined by the 12 . equipment.give more marketing efforts in the form of advertisement to make people aware of such uses of batteries. Strength-Threat 1. Olympic needs to spend more on R&D and come out with new raw materials for their products. lease. 2.

market information and past sales information able to know the demand of the products for coming three months. promoting a good business relationship between the buyer and the supplier. This software can give the information that how much inventory is required to meet the target level of production. Olympic batteries do the procurement process with the help of head office of Olympic Industries Limited.procuring company. With the information procurement department of Olympic batteries estimate the raw materials and other components that are needed to manufacture the batteries. A monthly analysis of the inventory estimates the inventory requirement to meet the demand given by the marketing department. The report from the floor of consumption gives the idea of how much inventory is needed. Olympic batteries maintain a safety stock level of three months. Olympic batteries go through several steps to do the procurement process: The head office of Olympic Industries Limited with the help of marketing department and mostly with the sales people through research. China. This makes the process smoother. 13 . Taiwan. Olympic batteries import the raw materials and other components from different countries like India. Then this information passed to the procurement department of Olympic batteries which situated at the factory of Olympic battery in Kanchpur. Narayangonj. Basically procurement process is done by the Olympic battery to run the operations and ultimately the business smoothly. Along with that a report has been submitted to the procurement department of Olympic battery every week from the floor of consumption. Peru etc. This report actually shows that how much inventory is left in the manufacturing plant and also to meet the demand how much inventory need to procure. Olympic batteries use the Inventory Management Software to maintain the inventory level and with the estimated sales target from the marketing department can be maintained.

therefore Olympic batteries maintain at least three months stock safety level to run the operations smoothly. Mostly inventory is transported by road and by water route as well. Dhaka.Olympic batteries mostly import their inventory through Letter of Credit (LC). the weight and other specified measurements are being taken at the laboratory of the factory and kept in the ware house of Olympic batteries factory facility at Kanchpur. The procurement department also uses the Microsoft excel to entry the information of inventory (raw materials and other components) from the report of the floor of consumption and this task is done manually. The Inventory Management Software system automatically updates the requirements and the date need to do LC to achieve the estimation of sales targeted by the marketing department. as LC at least takes the time of three months. in the excel sheet procurement department manually put the figure in excel and find the amount that needs to purchase to meet the demand and also to maintain the safety level. Bank does the LC procedure on behalf of the Olympic Industries Limited and collects the inventory from the supplier. The procurement department then sends a report and purchase requisition order to the head office of Olympic Industries Limited at Motijheel. The overall procurement process follows some certain steps and it is given in APPENDIX-9. Most of the inventories that come from India are transported by road. 14 . Bank is also responsible to supply the products to the factory facility of Olympic battery from the supplier. Narayangonj. If the inventory is already been purchased from common supplier then head office make a purchase order and send it to the supplier and also does the LC from a local bank. Bank hires or outsources the transportation agency to supply the inventory to the factory facility of Olympic battery at Kanchpur. Then the responsible department of the head office analyses the report and contact the supplier who can supplier. Narayangonj. To meet the targeted sales. After the raw materials reach the factory. In the excel sheet there is a list of inventory ( raw materials and other components) and the information of inventory that how much inventory is left in the stock of Olympic battery production facility. but if in some case there is any fault the raw material is kept aside and Olympic contacts its supplier. Generally errors are not found.

In Olympic battery manufacturing factory. the cathode mixing room. With each machine in the production line. In this part the main value is being created in the value chain. Olympic Gold (UM-1) is present and finally the packaging room where the final product is being packaged and cartooned. they are kept in the solutions room. there is one to two workers operating the machines and checking the products. the main process of production starts. there are 150 dedicated workers both male and female who work in the production line of Olympic battery. starting from the can making to the final product packing and many testing in between.g. namely the solution room. and all the raw materials have been properly weighted. an electrolytic solution is being made. This is that section of the production process where the raw materials are turned into finished goods. The operations in the plant of the battery go through about 20 steps before the battery is completed into a finished good for consumption. Here Sodium Chloride (NaCl) and Zinc Chloride are being mixed with de-mineralized water to bring out impurities and make the solution pure. The overall process takes place in 4 different rooms. The description of the operational process of Olympic Gold AA battery is given below: 2.1 Solution Room (Sub process) This is an initial step that needs to be carried out before the actual operations start.2 Recommendation: Instead of using Microsoft Excel they can use more sophisticated software to keep a track of the inventories.1. Chapter 2: Operations After the procurement part is finished. After the chemical raw materials have been properly weighted. This solution is needed to maintain a PH Acidic level of below 7. In this stage. the factory is fully equipped to run the facilities. measured and put into the ware house. the main production room where the other product line e. 15 . The operations of the making the Olympic Gold AA battery can be considered quite simple yet very interesting. Each batch of battery requires 20 days to be produced. With a monthly capacity of 6000 cartons of Olympic Gold AA batteries.

In the extrusion process. Thus this trimming process is being carried out to cut off the extra edges from the zinc cans and shaping it with the help of the trimming machine.3.2. the extrusion process. we need to make two parts. carbon black and Electrolytic solution. There are two big sophisticated cathode mixing machines which is being used for making the cathode mix of all the batteries of Olympic. the cathode mix is being done. And the electrolytic solution is being made from the previous sub process. But the shells have to maintain BSTI (Bangladesh Standards and Testing Institution) specific lengths. cathode and anode.1 The Extrusion Process In this stage. natural manganese dioxide is being used. 2. 2. The shells that are being made in this stage are called zinc cans. a small cylindrical shaped material called the zinc cannon is put inside the machine and it is made into the outer hollow shells of the battery. Both manganese dioxide and carbon black are being imported from outside the country. the shells automatically move to the next stage of the production.3 Zinc Can Preparation In this section there are three processes that are being done. the shells being produced don‟t maintain a specific length. The process is being done by putting the zinc cannon in the extrusion machine.2 The Trimming Process After the extrusion process is being done.2 Cathode Mixing Room For the manufacture of a drycell battery. In this first stage of the operations process. the trimming process and the zinc can feeding process. 16 . The cathode mix is being made by mixing manganese dioxide. The cathode mix formed looks like black powder and is stored in huge cartons until it is needed in future production. The manganese dioxide is called electrolytic manganese dioxide. These zinc cannons are being imported from India. These steps are being done to make the outer shell of the battery.3. for other sort of batteries like UM-1. 2.

As mentioned earlier. a metal washer is being put at the bottom of the can with the help of the bottom washer machine. Above the cathode mix inside the zinc can. This process is mainly done for the coming processes where materials are being put inside the zinc can. 2.2. a plastic washer is being put by the plastic washer machine to store the gas produced during the reaction. 2. When the zinc can moves here to the Bobb In machine after the insertion of the bottom washer. 2. the cathode mix made in the cathode mixing room is being inserted inside the zinc can. 2. a gas is produced.8 Carbon Anode Insertion As the can moves up to this stage.4 Paper Separator In this stage.7 Plastic Washer When the battery is being used and starts working.5 Bottom Washer When the zinc can moves to the next stage after the insertion of the paper separator. This next step makes a space for that gas to be stored inside the battery. This is also called the plastic cap insertion process. This bottom washer helps in separating the bottom side. This is done so that the mixing can be separated. 2. another important part of the whole operations process is being done.3.6 Bobb In This is one of the most important stages in the overall operations process. a hard brown paper is being inserted inside the zinc can.3 The Zinc Can Feeding Process The trimmed zinc cans now automatically moves to the next stage where all the open ends of the zinc cans are being assembled in one direction. a drycell battery needs both cathode and anode ends 17 . The plastic caps are being made in Bangladesh and supplied to Olympic battery by an outside supplier.

10 Sealing Compound The washer that had been put in the preceding stage.13 Automatic Testing Board After the edges have been smoothened. is heated in 250 C.g. This is being done with the help of an automatic testing board where is tested to find out its ampere and volt.9 Sealing Washer In this stage.12 Edge Curling This is the stage where the rough edges of the battery are being smoothened to give it that fine smooth touch. but Olympic gives a bit more e. 2. it is being checked again and if still the readings don‟t change. After the battery 18 . or gives a reading below 1. 2. 2. This power pack is being done so that no leaking takes place.66V so that the consumers can use the batteries longer. At this stage the actual battery has been completed. 1. This carbon anode is also known as filling compound. To do so. a washer is being put above the filling compound. This process is being done by the combinatory capping machine. This bar is also imported from abroad in specific shape and length according to the need of Olympic battery.11 Combinatory Cap In this stage. 2. a circular carbon bar is inserted. The BSTI requirement is 1.to make it work. the battery is being rejected. 2.65V or 1. It is done to keep the filling compound in a fixed position.5V. a metal cap is being but above the zinc can to make the top cover of the battery. And now the anode part will be filled inside the zinc can. This process is being done by the sealing washer machine.5V. If a battery doesn‟t give any volt reading. the battery needs to be checked to verify its voltage and current. The cathode mix has already been put inside the zinc can.

Olympic gives order to them along with the design and they just produce it and exports to Bangladesh. This process is being done using a sophisticated labeling machine.16 Labeling In this stage. they are being put into the grouping machine and lined up for the coming processes. This labeling is being imported from India and Taiwan. Then again the batteries are being stored for 3 more days in shelves of boxes. 2. After the tested batteries have been stored for 10-15 days.5V or above. After 3 days. And now. the batteries are again being tested to check the ampere and voltage readings. 2. This is done so that any plastic part from the PVC doesn‟t come out easily. 19 . if any battery fails to give a rating of 1.15 Automated Testing Machine After the batteries have been lined up by the grouping machine.17 Physical Quality and Appearance This is the third stage of the production process. if something like this is found in the battery. the batteries are being kept in shelves of boxes for 10-15 days before the start of the next stage.has been tested. At times. the battery is being rejected. 2.14 Grouping The grouping machine helps the batteries to be assembled in a group in a straight line along the assembly line. they are being rejected. the second phase of the production starts. 2. there are impurities which get stored in the bottom of the battery. Then the PVC is being heated so that it gets stuck to the battery. the battery is being wrapped up with a printed PVC sheet where the product name (Olympic Gold) is written along with the company details and the precautions are given. the boxes are brought out by the workers and are being manually checked by the workers to find out the color of the batteries and its physical quality. To start.

000 people representing each and every region of the country. Olympic Industries Limited has perhaps the most extensive sales and distribution network in Bangladesh. Olympic batteries are available in the market with different brand name and size. one of their halls is really big. The Sales Force uses over 300 distributors nationwide and sells products to a total of over 4.000 stores nationwide.00. Olympic battery is one of our very first dry cell batteries to be launched. 2.18 Blistering In this final stage. and the production line is made in a „U‟ shape. The production process is carried out in 4 rooms in the factory. it becomes more efficient.19 Recommendation The production line can be made more efficient. with a field force of just under 1. the batteries are being packed in a pack of 10 batteries per pack. The flow chart of the overall operation process is shown in APPENDIX-7. 20 .2. Olympic‟s products are prominently displayed on the store signs of over 1. remote corners of the nation. if the whole production line is brought in this hall. This is being done by a blistering machine. There is poly vinyl chloride also known as rigid sheet which takes the shape of the 10 batteries and printed PVC at the bottom is being attached where “Olympic Gold” is written. the packs of 10 batteries are being put into small cartons manually and tape sealed and then sent to the warehouse.1 Distribution Process Olympic Industries Limited is currently the market leader in the biscuit market and second in position in the battery market in Bangladesh. If Olympic can bring foreign personnel from this industry. and give training to the workers and make them more efficient and improve their productivity. After the packaging is being done.00. Moreover. boasting Olympic‟s products‟ in even the most farreaching. These cartons of batteries are ready to be dispatched to the distributors. Chapter 3: Distribution 3.000 outlets across the country.

the Sales Force is equipped with the latest mobile devices and technology to ensure their operations are as seamless and automated as possible. The number of distributor is approximately 300. It is the duty of that particular distributor to distribute the product in that particular area. Olympic sets a target over the distributor to distribute certain amount battery over the month. no transaction process is made under credit. All the transaction has made on cash. cargo van to distribute their product. Olympic assign some sales representative in every thana who can tell about the benefits and feature of the product and do some sales promotional activities. Total delivery process is done by a recognized transport system which is outsourced by the Olympic factory. They use the same vehicle to distribute all their products. From the warehouse the products are directly placed into the retailer‟s store. In the factory they start to shape the raw materials into finished goods.In addition. When the demand of the product is high than the supply then distributors inform it to the factory and factory made permission from the head office. Internal distribution among the thana is run by the van. Then head office informs it to the factory and the route of order being made by the factory and products dispatched. They keep in a cool and dry area to distribute. mini truck. van. Distribution process is coordinated by the head office because they receive order and according to their demand they inform it to the factory. Olympic company uses truck. To run this process they have to overcome the procurement and operation process. They also work as a 21 . After distribute the product in different districts the products are kept into the warehouse. Vat is included with the price of the product and it has fixed before the distribution process. When they distribute in a particular area they also distribute other products along with the battery near to that area so that they can reduce the costs. Head office gives the order to the factory through the internet. Olympic has their own distribution channel and they allocate one distributor in every thana. After the procurement and operation process batteries are store for 20 days. Sales target is allocated according to the delivery order. It has made the distribution process easier to distribute the battery. Salesmen receive the order from the retailers and inform it to the distributor then distributor delivering order to the head office. Retailer receives their product and pays for the product.

The price of One Olympic Gold is 22 . So it makes itself distinct from other batteries. 3.distributor because sometimes they also distribute some free samples among the retailer. Better sealing. they can introduce retail outlets. it will be easier for them to get the end users. Olympic Gold (EMU3) is popular among all the dry cell batteries. Chapter 4: Marketing 4. more compression. Is the distribution process running frequently or not these types of decision has made by the audit department. They check the in and out of the distribution process. The overall distribution process follows some certain steps and it is given in APPENDIX-8. Superior internal structure. They can use their own transportation system to minimize their costs and display banners of their products on those trucks. 4. They follow a method in which a fixed sum or a percentage of total cost is added to the cost of the product what is arrived in their selling price. So they have set a price in a way that is competitive and that will make profit for the company. It is made by a fully automated dry-cell production line.1 Product: Olympic industries produce Dry cell batteries. And it has a great popularity in the market. There should be a direct communication between the distributor and factory office so that the delivery processes run faster.2 Price: Olympic industries follows both cost based and competitor based pricing. they use a price which is very much competitive. more life compared to other dry cell batteries.2 Recommendation: Olympic has no retail outlets to distribute their products. Sales representatives give the order this work is not done by the distributor. Audit department checks on the distributor. So. And in competitor based pricing. It has more moisture.

They also give incentives. And Olympic Gold is better than them in terms of features and quality. And they set store display. retailer to promote their product. As in our country the demand is downward and people buy the battery by not their brand name rather than what they get near to their hands so Olympic industries is trying to promote their product in every possible shop. So here they are minimizing their cost in placing their product in the market. They have 300 distributors and Olympic Gold is found in 400000 outlets in the country. So they get competitive advantage in distributing their product all over the country. Narayanganj and it‟s a prime location. So now they are interested in Pull marketing. Olympic Power is 23 . 4. 4. They have a strong network to sell their product.4 Promotion: They are following a different promotional strategy for Olympic Gold. Basically Olympic power and Olympic Gold is same. As we know Olympic industries have most extensive sales and distribution network in Bangladesh. As Olympic industries are pioneered in making confectionary items and they distribute their product all over the market with their strong distribution channel.TK 10. Their factory is situated at Kachpur. They are trying to differentiate their product with their packaging. Olympic Gold battery is found in every possible corner in Bangladesh. They do their advertisement through bill board. They also make OLYMPIC POWER. 4. Olympic industries distribute their all product in a same way.. But they are now trying to create demand in the market. After 2010 they did not go for TV advertisement.5 Packaging: OLYMPIC gold is very much attractive and eye catchy for its packaging. coupons and other facilities to the retailers and wholesalers. It is also a drycell battery.3 Place: Place represents a location where the product is placed for selling purpose. They follow push marketing strategy where they influence wholesaler. Where as their main competitor is selling their battery at taka 10. But they have differentiated both batteries by their packaging.

Olympic arranges annual picnics for distributors with their families. then it will be more effective for Olympic batteries At present they are the market challenger. If they follow both push and pull marketing strategy simultaneously. In this way they are creating demand for Olympic GOLD for better quality battery in a lower price and make product differentiation. Then the customer service department makes inquiry about their product. For this they need to use print media. 4. 24 . They are also dealing with product innovation. still if the distributor finds any default in their product. They are trying to make Olympic Gold more durable and better. The distributor writes down report about the problem and sends it to the customer service department. Olympic Gold is trying to expand their market with better quality product and strong distribution network. if required calls back the batch of product and replace it. Newspaper advertisement. They keep their service department to serve the distributor. electronic media. not the end user. They need to emphasize on customer relationship. And their market share is increasing. SUNLITE battery is market leader. Customer service department not only solve the distributor‟s problem but also they add value by giving incentives to their distributors. they contact the customer care service. But the market is very competitive and market is very much price sensitive so they need to aware consumers about the brand and they need to go for Pull marketing strategy.sold at taka 11. They should go for TV advertisement. Though they have a very good product quality control. Chapter 5: Service Olympic industries have a service department for the distributors. At present they are following Push marketing. This department also gives gifts to the distributors who perform extraordinarily.6 Recommendation: Olympic industries can imply many things to improve their marketing strategies.

Accounting and finance department also allocates the budget to the different levels of organization. Accounting and Finance department of the organization do the budgeting. There is a small department of Human resource in the Olympic Industries consists of only one stuff and do the work to fill the vacancy post with the right stuff in the Olympic Industry. Accounting and finance department of Olympic Industries basically do all the transaction process of the organization. Accounting and finance department also funds to buy the raw materials from the supplier. Chapter 6: Secondary Activities Olympic Industries has several departments like Accounting and Finance. funding and buying process that actually needed to run the operation.In Olympic‟s official website. to buy the new machineries and other transactional process. External recruitment 25 . In this section is any customer or distributor has any complaints regarding the product or something else. 6. The salary of the employee and other maintenance cost is approved from this department as well. Accounting and finance department makes the purchase through Letter of Credit (LC) with the bank. they can fill in the form and the customer service officer will get back to him/her.1 Accounting and Finance department: Olympic industries have an accounting and finance department which consist of 25 employees. Human Resource. 6. Marketing. Logistics department and Shares handling department. There is a single accounting and finance department to do all the work of Olympic Industries. there is also a section named “Complains”. The human resource department of the Olympic Industry does both the internal and external recruitment.2 Human Resource department: The human resource department of Olympic Industries basically does the management of the employees inside the organization. Olympic Industries market research team do the research to estimates the demand of the products and on the basis of that procurement department sends the purchase order to the Accounting and finance department.

Conclusion: After doing the project we got a clear concept on value chain activity of Olympic batteries. The shares handling department do the analysis of the stock market and the main work of them is to issue the new shares to the stock market. The project provides us with both theoretical and practical knowledge about the production. They basically arrange recruitment process and do the paper work of the applicant to do the recruitment and the department which is recruiting the employee takes the interview of the applicant and hires the staff. distribution. Currently they are the market challenger. 26 .4 Logistics department: The logistics department of the Olympic Industries manages the work of distribution and procurement process of the organization. They believe in taking the challenges positively. Thus we believe this the understanding that we gathered from this paper will certainly help us in our future workplace. And after doing the SWAT analysis we think if they emphasize in some of the fields specified over there like introducing new products.occurs by giving the circular in the news paper and through internet to recruit the employees. 6. Internal recruitment happens when a stuff change or shift one department to another department of the organization. procurement.3 Shares handling department: Olympic Industries have a very strong shares handling department which consists of 10 employees. This department also does the general meeting with the investor and the head of the organization to manage the shares in the stock market. exporting and improve their efficiency in some sectors they can aim to become market leader. and marketing process of Olympic battery. Shares handling department always keep connection with the stock market and analyze the performance of the stock of the company in the stock market. 6.

com/index.php/about-company/history 27 .olympicbd.APPENDIX APPENDIX-1 MILESTONES     June 1979: Incorporation as Bengal Carbide Limited April 1982: Commencement of UM-1 Battery Production June 1984: Listing on Dhaka Stock Exchange Limited September 1987: Commencement of Soyabean Oil & Vegetable Ghee Production           September 1991: Addition of Palm Oil & Olein Capacity August 1995: Expansion of Production Capacities to Produce UM-3 Batteries June 1996: Name Change to Olympic Industries Limited September 1996: Listing on Chittagong Stock Exchange Limited December 1996: Commencement of Biscuit & Confectionery Production January 1998: Commencement of Ballpoint Pen Production November 1998: Commencement of Electric Bulb Production July 2003: Olympic installs its Second Biscuit Production Line July 2008: Olympic Install its Third Biscuit Production Line August 2008: Completion of Amalgamation of Tripti Industries Limited with Olympic Industries Limited Source: http://www.

com/index.olympicbd.php/about-company/brand-values 28 .APPENDIX-2 Source: http://www.

Mostafa Kamal APPENDIX-4 Camera flash test (Practical) UM-3 180 160 140 Flash(cycle) 120 100 80 60 40 20 0 Olympic gold Sunlite Haque Osel Sony Olympic Olympic Digital Power Brand name Source: Slides provided by Mr.APPENDIX-3 Motorized toy test (practical) UM-3 140 120 Time(minute) 100 80 60 40 20 0 Olympic gold Sunlite Haque Osel Sony Olympic Digital Olympic Power Brand name Source: Slides provided by Mr.Mostafa Kamal 29 .

APPENDIX-5 Strength 1. Decrease use of Drycell Batteries 2. 4. Less Marketing Effort 2. Lengthy market existence. Threat 1. Produce Car Batteries. 5. Producing Alkaline Batteries and Rechargeable Battery 2. 4. 4. 2. 3. Emphasis on PUSH Strategy mainly. Good Quality Control 7. Electricity problems in Bangladesh. Product Variety. 4. Imported Quality Raw Material 6. 3. Foreign Exchange Rate. Figure: SWOT Analysis of Olympic Batteries 30 . Strong Distribution Channel 5. Industry is getting in its decline stage. Good Brand Image 3. Less Research and Development SWOT ANALYSIS Opportunity 1. High Production Capacity Weakness 1. 5. Creating awareness of other uses of drycell batteries. Produces only Drycell Battery. Cost of Raw Materials Is increasing 3. Increase in the number of price sensitive consumers. Export their batteries to developing countries.

More research and development efforts can be done for products like alkaline or lithium batteries.T2.(W4. Pull Strategy and more marketing effort can be done to generate demand.S2.S5 . (S1. 2. Export Quality Batteries to Developed Countries as Olympic has high production capacity. (S7.S2.W2.O2) WeaknessOpportunity 1.(S3. 2.O1) SWOT Matrix Strength-Threat 1.APPENDIX-6 StrengthOpportunity 1. Giving more efforts in marketing to create awareness of other uses of Drycell Batteries.O4) 2.(W1. Tackling the price sensitive customers with long market experience and brand image.S3.T2) Figure: SWOT Matrix of Olympic Batteries 31 . They can tackle the increasing raw materials prices by increasing the production and decreasing per unit cost by economies of scale. (S1.Research can done to find out alternative cheaper raw materials.S6.(W1.T1). (W4. Create an Alkaline and rechargable battery market for the mass.T4) 2.S7. O1 ).T5) Weakness-Threat 1.

APPENDIX-7 32 .

APPENDIX-8 33 .

purchase order Figure: Procurement process of Olympic Gold batteries 34 .APPENDIX-9 Estimates the demand of products by marketing department Warehouse of Olympic Batteries Procurement department Report from floor of Consumption Raw material test at laboratory Inventory management by software Olympic Gold batteries factory facility Requirements of raw materials order Suppliers of raw materials Head office of Olympic Industries Raw materials Purchase Order Through the process of LC.