June 13, 2012 Mr. Khaled Mahmud Course Instructor Institute of Business Administration University of Dhaka Sir, We would like to submit the report ‘Marketing Plan for Nature Series of Partex Furniture Limited’ which was a partial requirement for the course. In this report we mainly focus on the process of making an effective marketing plan for Partex Furniture Limited. We would like to thank you for giving us the opportunity to do this report. Sincerely, Ummay Sumaiya Mutiatur Rasul, On Behalf of the Group-15 BBA 15 th Batch
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June 13, 2012
Mr. Khaled Mahmud
Course Instructor
Institute of Business Administration
University of Dhaka
Sir,
We would like to submit the report ‘Marketing Plan for Nature Series of Partex Furniture Limited’ which was a partial requirement for the course. In this report we mainly focus on the process of making an effective marketing plan for Partex Furniture Limited.
We would like to thank you for giving us the opportunity to do this report.
It was 1990 when the main revolution of furniture industry started. Before that furniture industry was dominated by local carpenters and some imported furniture. In early 1990s, Otobi comes as a big company of manufacturing furniture. Then comes Hatil, Partex, Navana and legacy along with some other companies. Mainly Otobi manufactures mechanized furniture and it is the market leader in mechanized furniture. Recently Otobi has started making wooden furniture. Hatil and Lagacy make wooden furniture. Partex started their journey through making timber furniture and later they launched mechanized furniture making.
Partex Gallery:
Partex furniture is a company of Partex Groups founded by Mr. M A Hashem. Partex is the most environmently furniture manufacturer maximization wood conservation. Their values are focused on artistic design,integrity and quality orientation.
Target market:
The company’s target market is urban educated females whose ages are within 25-40. The size of final target market is 1580328. The growth expected in the target market: is 10.48% in five years.
The company has several strong point of differentiating it from its competitor. For example they can use their leadership,heritage and the way of making products.
Internal and external analysis:
To have a complete view, some internal analyses have been done. On SW analysis, we have found that Partex is lagging behind to its main competitor Otobi. The average rating of strength variables for Partex is 6.31 on a scale of 10 (less than Otobi’s 6.88). The average rating of weakness variables is 6.81 which is higher than that of competitor Otobi (5.25). The reasons are some undeniable reality. The company has a first mover’s advantage but fail to utilize it. The company does poor in promotional activity. On OT analysis, Partx has more opportunity than its competitor. The main opportunity is the increasing environmental awareness in Bangladesh. Partex is at build selectively stage at GE model.
In terms of 7P’s partex has several weaknesses. There is a lot of chance to make attractive and useful products. In terms of design, Partex is behind Legacy and Hatil. They give a sales discount thrice a year on rgular basis that often hampers their profit and some customers only buy at the discount time. So the sales yearly distribution is not that smooth. The number of outlets are few and most of the showrooms
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are inconveniently placed, for example some showrooms lack parking space, some showrooms are at VIP road where rickshaw does not go. The showrooms are clumsily organized. The promotional activity is very few in terms of quality and quantity. The sales persons are not that motivated and they do not have specific task. The whim of owners also discourages executives. The whole process of buying is not that customer experience focused. The delivery system is slow.
the strategies:
partex should increase number and quality of advertisements as it does not reach the mind share of many potential customers. Instead of giving discount,it should give voucher and gifts that would seem more worthy to customers. Miniature display and catalogue should be available to common public place. It should make the showrooms more attractive and resourceful so that the potential customers at least pay a visit to the showroom to see furnitures. Is should classify loyal customers and increase direct marketing. It can differentiate itself as an environment friendly furniture company. It should also announce durability of their furniture by giving warranty.
Evaluation:
The increase of market share is supposed to increase a great deal in regard of costs as calculated. As the ROI is positive and worthtaking, Partex should go for the strategy.
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1. Introduction
1.1. Origin
This report is prepared as a partial requirement for the course ‘Marketing
Management’ instructed by Professor Syed Ferhat Anwar. This report has
been prepared by group 15, which consists of four members, of BBA 15th
batch.
1.2. Objectives of the report
This report aims at developing a marketing plan for ‘Nature Series’ of Partex
Furniture Limited through doing an internal and external analysis of the
company.
1.3. Scope of the report
The report deals with a special category of furniture called ‘Nature Series’.
The report deals with the bedroom settings. The plan is made for
countrywide operation and we took Dhaka Metropolitan City as a standard to
measure the characteristics of the target market.
1.4. Methodology of the report
The information used in this report is mainly secondary data collected from
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various publications and websites. Academic books are also consulted.
Primary data is collected from interviews, personal observations.
1.5. Limitations of the report
Some internal company information was not available because of
maintaining confidentiality. In those cases, information has been estimated.
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2. Overview of furniture industry
2.1. History of furniture industry
The main revolution of modern furniture in Dhaka city started during the late
1990s. Before 90s furniture industry was in a scattered form and a few
furniture maker shops were here and there in Dhaka city. However, they
were non-united and they did not think it as an industry. They just worked
out as hereditary business.
However, during late 90s, furniture business emerges as an important field
of modern furniture industry.1 It has changed up its traditional materials and
design, many new raw materials being added in furniture industry and many
types of modern shape and new furniture being emerged. Local furniture
manufacturers are meeting a huge local demand while the upper section of
society is also having access to imported furniture. Fortunately, the local
companies have the lion’s share of the market. After meeting the local
demand, furniture industry moves forward and is concentrating on exporting
furniture to neighboring countries specially India. In 2007-08 fiscal years, $
2.44 million worth of furniture was exported, which was 0.02 percent of the
total export earnings.2
Bangladesh has potential in this particular sector both locally and abroad.
The saga of furniture industry in Bangladesh has mainly originated from
normal local carpenters who used to work on small levels. The craft and art
engraved in today’s furniture bears the testimony of their practice. Some
1 Market Potentials of Modern Furniture in Metropolitan Dhaka City, Md. Joynal Abdin (FBCCI)
(favorably in a casual manner) and will come back to purchase in their
convenient time. If these places cannot be selected for establishing
showrooms or outlets then Partex should not hastily set up more outlets in
subliminal places rather it should build up direct communication to boost up
the popularity of showroom
Therefore, considering the present scenario ‘Catalogue Marketing’ is more
beneficiary for Partex to leave an impact on consumers mind. The catalogue
marketing strategy is described in the “Direct Marketing” section.
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9. Promotion
In furniture industry, common perception is that word of mouth works very
well but in Partex no clear strategy to create positive buzz marketing has yet
been established. The overall Partex group has strong public relation with
press, cricket board, officials but that is not being used to foster furniture.
Sales promotion tools are widely used by the company to foster sales in
special occasions.
The promotion mix of Partex should be a pull strategy that is ads and the
company itself should run sales promotion. In addition, when positive
response is created, channel members can come forward to meet up to the
consumers problem solving.
The objective of the advertisement made for ‘Partex Aesthetic’ is to
persuade potential consumers so they will demand the furniture in their
homes. We can see from the buyer readiness stage that, the market is aware
of our presence but do not have good perception about us. Therefore, first
we need to inform customers through advertising and then persuade them to
buy. We need to increase market share, have strong competitors so large
budget is needed. However, as the product is differentiated, moderate level
of budget can be used but it has to be indicative to overall promotional
campaign.
9.1. AdvertisementPartex normally gives more thought about advertising in printed media
specially newspaper. Past observations done by other company personnel
indicates that, printed media brings more interested customer for them.
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Choosing media
i. Tri-faced and banners
Benefits of Tri-faced Promotional need of Nature
series
Large reach in one single point Target customers Residence or office
or the road they use
Eye-catching transition Makes people interested to see the
next face of the tri-faced nature
series banner
Three different ads at time
sequence
Promotion of three different products
at same arrangement1
The structured message 2 :
Face 1: An “Almirah” on underwater having a treasure chest beside
it. The tagged line would be “Feel the elegance…”
Face 2: A “Nile Dressing Table” is standing on an ocean surface with
tagged line “Experience the beauty…”
Face 3: A “Sunrise Bed” in front of a mountain plain having a tag line
“Dream the Breeze…”
Strategies undertaken:
1 Marketing Management, Philip Kotler, Page- 5022 Appendix-8
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Tri-faced will be set on the following areas: in front of Sheraton Hotel, in
Gulshan Circle, at Mirpur Road and at Sonargaon Crossing as the reach to the
target market is higher there due to high traffic.
Tri-faced promotion will continue for 1 month in order to remind the
target market of our offerings continuously. A longer period of tri-face
advertising will not be followed, as that will create a sense of boredom
among the consumers.
Total cost for the tri-faced will be 1500tk per sq. feet
*(10’*20’)/12+50000tk tax, in total 75000tk1
ii. Newspaper
Benefits of Newspaper Promotional need of Nature
series
Flexibility Option to disperse information
limitedly
Timeliness Placement of ads on convenient
occasions like Eid, Bangla New Year
etc.
High credibility Popular and politically impartial
image of the newspaper
Good local market coverage2 Circulation exposureing large
percentage of target market
The structured message:
1 Referred to current report, financial statement2 Marketing Management, Philip Kotler, Page- 501
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The message is concentrated into building interest and desire according to
AIDA concept.
a) Appeal: Emotional appeal to motivate purchase
b) Structure:
In printed ads, conclusion will be drawn in a series so
consumers have freedom to draw conclusion at first and
check it afterwards
The strong or main idea is placed at last so it can have the
long-lasting effect1
The news media selected is the “Daily Prothom Alo” due to its high
score in relevancy.2
Effectiveness:
Description Effectiveness Timing
1 Appendix-92 Appendix-10
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Filmstrip1: Arko was praising about the new female designer working with him. His
sister-in-law ridicules him “I can bet that my sister is a far better designer than your
colleague!”
Filmstrip2: Arko opens the bedroom door and gasps, “I am glad to have lost the bet
but how?”
PARTEX GALLERY
Target The target
market Reach Exposure
Frequency Pattern
Media Prothom Alo 24,00,0001 312002 3 Series
of three
adsPosition Last page
Spread 24 column inch
Appear From Tuesday
1 www.eprothom alo.com2 24,00,000*1.3%(target market to total population ratio= 1.3%)
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iii. Electronic media
Benefits of TVC Promotional need of Nature
series
Mass-marketing coverage Making people aware of nature
Low cost/reach ratio Cost effective tool to exposure target
market
Appeal to major senses Showing the beauty and design more
exclusively than other media.
Animated portrayal1 Will create interest about nature
series.
1 Marketing Management, Philip Kotler, Page-503
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Plot of the message
The message is concentrated into building interest and desire according to
AIDA concept
a) Appeal: Rational and emotional together is used to convince
consumers and persuade purchase.
b) Structure
The strong or main idea is placed at last so it can have the
long-lasting effect
Two-sided ad is used first to convince the educated
audience.
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Scene 1: a young woman is talking to her fiancée as she prepares to go to buy furniture with him. She ends the phone call and while passing the corridor of her house, she peeps into the bedroom of her elder brother's bedroom. There is a large bed with heavy design. But, as the quality of the wood is not that good, part of the bed has become fade and there is a crack on the side of bed. The girl sighed and left.
Scene 2: the man (who is the fiancée of the woman seen in the first scene) passes through his house and peeps into his younger brother's bedroom. The bedroom is full with mechanized furniture. The room is very simple and the border of the mechanized furniture is torn and displaced. The man sighed and left.
Scene 3: the man and the woman entered into the ‘Partex Gallery’ and they were amazed to see the unique design.
Scene 5: then there will be the tagline...now innovative design lasts
PARTEX GALLERY
Among the great number of local satellite channels, ATN and NTV
has been selected for their overall high score.1
Effectiveness:
Description Effectiveness Timing
Targe
t
Reach Frequency Pattern
Media ATN and NTV 46,57,9202 10 per
week
Continuous
on same
schedule
for 1
month
Positi
on
8:15- Houseful at NTV
11:30-Doll’s House at
ATNSprea
d
8:00-12:00
Appea
r
Mid break &
beginning of program
Durati
on
30 Sec.
iv. Miniature display
To maximize the reach to the target customer and to gain favorable
positive attitude from them, a miniature room display having the size of 4
feet by 4 feet will be set on Nondon Park. The miniature will represent a
completely decorated “Evening Bedroom set” made of plaster and
hardboard but colored in the dark chocolate plating to give real feelings.
There will be a “Voucher Corner”. It will offer discount to visitors who are
interested in furniture buying.
1 2 Referred to financial statement
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9.2. Sales Promotion
Objective:
To enhance long-term relation and reinforce position
To induce short-term quick response
To act as a base of future direct marketing and the step to initiate
positive word-of-mouth
Sales promotion Strategy:
Observing from the consumers perspective we can say that so far the sales
promotion given by the companies is, nothing but a discount or rather say,
price cut. This practice is followed commonly by all companies and is mainly
used during national occasions. However, as this has become quite a norm,
none but only the market leader benefits from it. This practice although
works during those occasions, hampers the normal sales all the year round
as consumers only wait for that occasion to come instead of immediate
buying. Furthermore, as all companies offer discount more or less on the
same range the image of brands thriving to be a market challenger from
market follower; becomes more diluted in consumers mind. Therefore, we
came up with strategy that will eliminate the need of providing discount and
will function as an image-building tool.
Gift box on purchase
When the consumer buys furniture, a wooden and carved box will be given.
The box will contain the receipt and warranty card. On the cover of the box,
the logo of the company will be engraved. It will help sustain long-term
relationship.1
1 Appendix 14
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9.3. Direct marketing
In case of Partex, direct marketing should be held in a very limited basis with
an objective to maintain good relation with most preferred consumers aka
the butterflies and to attract the large portion of consumers. The reasons to
choose direct marketing for the above-mentioned conditions are given
below:
Direct marketing counts customer experience and thus make
way for improved relation with the preferred prospects. In other
words, it is the base of customer relationship management.
When communicated directly, consumers perceive extra value of
offerings and in return gives credit to the brand
Saves time and travel of the consumer and provide information
when they are unable to search for it
Catalog marketing in Meena Bazaar, Agora
Will serve the purpose of being an everlasting manual or
guide to which consumers can refer to for future needs for same
category of products
Consumers find time and opportunity of having necessary
information even when they are preoccupied with other shopping
plans
The above-mentioned places are picked due to the common
preference of target market to shop there for grocery items
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10. People
From the SWOT analyses, it is obvious that the salespersons in Partex Gallery
are quite associative and friendly comparing to the competitors. This is really
a strength which can become very valuable if used properly and efficiently.
Partex ensures very friendly and informative approach to highly preferable
consumers who are very likely to buy from them.
At present, Partex do not believe in indulging time to attract customers who
are not ready to buy and quite negative for window-shoppers.
The new strategy will focus on providing organized selling teams in all
showrooms and that process is described below:
10.1. Design based informed salesperson for timber furniture
Better informed about the design and can satisfy the
curiosity of the customer
Can give more attention to individual product
Has more opportunity to demonstrate key features of
a certain category
Can match the key feature to a reason to buy and
provide solution to customers need
To counter the disadvantage the design-based role-play has, the main booth
or transition corners corner will have a few salespersons that will respond
according to customer need and will guide through to the design-based
salesperson.
10.2. Customer need based salesperson set up close relation with every buy
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can react differently to current vs. new, major vs.
regular customers
can make the environment free and friendly for
window shoppers by not bothering with heavy
product jargon thus enhance probability of potential
customers
can refer to category that mostly satisfy the need
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11. Physical EvidenceThe overall environment of showrooms and information giving were regarded
as an extra expenditure. Partex tries to create the simulation of real use of
furniture but spending too much time there is regarded as a drift from
furniture. The reason is that some consumers are found talking about the
cushions more than the furniture1. The outside looks of the showrooms are
being kept as simple as possible. However, the showrooms of Partex are
clumsily decorated. The furniture is not kept in a categorized manner. The
gallery itself does not have an appearance of a furniture store.
The new strategies will strengthen our positioning by image building and
channel renovation.
11.1. Renovating showrooms-
Partex showrooms will be renovated. The whole building will have a theme
that reflects the identity of Partex furniture. The color will be a combination
of dark brown and light brown. Tiles will be used so that the color seems
glossy. The color will represent the elegance of wood. The main exterior
pillar will resemble the design of Nature Series, especially the design of
Prince Bed. On exterior wall there will have green color that will resemble the
nature friendliness.
The indoor pillar will be similar to the trunk of a tree. The wall will have
glossy posters that will portray how a bedroom will look if it has Partex
furniture. The posters of how carefully the furniture is made and how Partex
ensures the quality of wood will be depicted. There will be option of lighting
1 SWOT Analysis, Appendix-13
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so that a customer can watch how the color of furniture changes as the light
changes.2
2 Appendix-10
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11.2. Design based categorization
To develop a faster and more efficient purchase process, the placement of
furniture should be planned and it should be executed in a tactful way. As
“Partex Aesthetic” is the focus of Partex Gallery now, this category needs
special care. Sometimes, target customers cannot pick up or choose bed-set
according to their likings due to untidy decoration. As the whole bed-set
carries different designs, design-based categorization, which will also foster
room-based categorization, is included in the new strategy. Thus, other types
of furniture and “Partex Aesthetic” will not confuse consumers and
consumers will have the delight of seeing a complete bedroom setting.
12. Evaluations
The focus of the marketing campaign is to create a brand image of Partex Furniture. The campaign will have five components, Tri-faced Billboards, Newspaper ads, television ads, miniature display and structural renovation. For their time specific and concentrated focus, Tri-Faced and Miniature Display are evaluated separately. Warranty is also evaluated in terms cost and perceived value.
Campaign Component Taka
Newspaper 7,16,200
TV 9,37,500
Structural Renovation 21,00,000
Total 37,53,700
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Sales Growth 10,97,00,0001
Return on Marketing Investment 2822.45%
Tri-Faced Billboard
Cost 6, 20,000 tk
Sales Growth 5, 75, 70,000 tk2
Return on marketing Investment9185.48%
Miniature Display
Cost 50,000 tk
Sales Growth 8,91,000 tk
Return on Marketing Investment 1682%
Warranty
Cost 20,510 tk3
Warranty contributes to increased brand value. Which in turns helps to achieve the targeted sales.
1 Appendix-142 Appendix-143 Same as above
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iv
AppendixAppendix-1: Rates of SW analysis
Weakness strength
Partex 6.818181818 6.313432836
Otobi 5.25 6.880597015
Navana 7.15 4.940298507
Hatil 5.684210526 5.029850746
Akhtar 7.055555556 3.089552239
Legacy 6.722222222 3.059701493
Others 5.055555556 1.402985075
Appendix-2: Rates of OT analysis
Threats Opportunities
Partex 7.5 7.8
Otobi 6.714285714 5.7
Navana 7.5 4.8
Hatil 6.571428571 5.4
Akhtar 7.357142857 1.8
Legacy 6.857142857 1
Others 4.428571429 0.777777778
Appendix-3: The GE Matrix (Business Strength)
Sl.
No.
Business Strength Variable Weigh
t
Rating Contributi
on to C.
Rating
1 Exclusive Design 0.11 4 0.44
2 Durability of Products 0.10 5 0.50
3 Relation with foreign timber trade 0.11 5 0.55
4 Own raw material source 0.08 5 0.40
5 Solid wood use minimization 0.09 5 0.45
6 Relationship with advertising agencies 0.08 4 0.32
Variables Partex Otobi Navana Hatil Akhtar Legacy other
Environmental awareness 10 9 8 8 3 2 1
15% demand increase 7 9 6 9 2 2 2
iv
AppendixGrowth of brand furniture 9 10 9 10 2 2
Government facilities 2 2 2 2 2 2 2
Intro of panel based furniture 10 5 2 0 0 0 0
Approval of famous artists 9 2 2 2 2 2 2
Approval of environmentalists 10 9 9 8 0 0 0
Appreciation of folk crafts 10 0 0 5 7 0 0
Export opportunities 9 9 9 9 0 0 0
Globalization 2 2 1 1 0 0 0
Average 7.80 5.70 4.80 5.40 1.80 1.00 0.78
Threats
Variables Partex Otobi Navana Hatil Akhtar Legacy Other
Dependence on outside supply 3 5 8 9 7 7 10
Maturity of timber furniture 9 5 5 5 9 9 0
High exit barrier 8 10 10 10 10 10 10
Oligopoly market 8 8 8 8 8 8 10
Competitors price leadership 10 10 10 8 10 10 5
Lack of import barriers 8 8 8 7 7 7 10
Rise of plastic furniture 9 5 5 5 9 9 0
Demand of wrought iron furniture 2 2 3 3 4 5 5
Consumers low attention span 8 8 8 7 5 5 0
iv
AppendixConsumers avoidance to ads 8 9 10 10 10 10 0Unexposureable media habit of the consumers 10 10 10 8 8 7 0
Standard are set by mkt leaders 10 2 10 2 6 2 10
Competition clutter in furniture industry 10 10 8 8 8 5 0
Free market to new arrivals 2 2 2 2 2 2 2
Average 7.50 6.71 7.50 6.57 7.36 6.86 4.43
iv
AppendixAppendix-14: Evalution Details
Cost of the prepared marketing campaign:
Campaign
Component
Duratio
n
Possible Reach Cost
(taka)Newspaper 3 Day 24,00,000apprx.1 7,16,2002
TV 1week 46,57,920apprx.3 9,37,5004
Structural
Renovation
10
years
41,85,432apprx5 21,00,00
0Total 1,12,43,352apprx. 37,53,70
0
Exposed target segment among total reach (1,12,43,352*1.3%6) = 1,46,164
Actual purchase maker7 6.15%8 which is 1,46,164*6.15%= 8,990
On average sales of 30,000taka gives total sales of 8,990*30000 = 26,97,00,000tk
1 Circulation of Daily Prothom Alo2 Price of the newspaper ads, for 24column-inch first/last page: (12000|9600)*24*3 total- 8,64,000|691200 tk + design 25,000tk total- 8,89,000|7,16,200tk. Last page of Prothom Alo is selected because to go to the entertainment page directly, you have to go through the last page. Last page is thus more effective on our target segment, Urban educated middle class women. 3 Number of households with TV(‘0000s)= 2485Rate of households having TV= 3.84%Total reach=2485* 3.84% = 95.424(‘0000s)Total population=12130Population watching TV = 95.424*12130/2485= 465.792. (Bangladesh Statistical Yearbook 2006 page 57)4 Price of Advertising:
Making the Ad: 1,50,000On NTV:
1 fixed before programms 10,500*1- 10,500tk2 during the mid break of the program 12,000*2- 24,000tk2 random 9,000*2- 18,000tk
On ATN: 1 fixed before programms 12,000*1- 12,000tk2 during the mid break of the program 13,500*2- 27,000tk2 random 10,500*2- 21,000tk
Total 1,12,500tk 7,87,500tk9,37,500
5 Statistical Yearbook 2001 Community Series Dhaka 2001, Statistical yearbook Bangladesh 20016 Target segment percentage for Bangladesh = target segment population/Bangladesh population as per 2001 census = 1580328/124355263 = 1.3%apprx.7 People who will actually buy.8 From Bangladesh Furniture Fair 50,000 people visited the fair, made purchase from Partex. Target reach 50000*1.3%=650. Actual Purchase was 40. Actual Purchase Maker Percentage 40/650=6.15%