Fina by lawjuris

overall activities and performance of Matador Ballpen Industries

INTRODUCTION Internship Program is a practical way to gather knowledge about working environment. After completing B.B.A examination (Final Semester), all students are asked to involve an organization, work for that organization for three months time duration and submit a Final Report on that work. This report is a presentation of three months long Internship Program as a part of academic requirement of the Bachelor of Business Administration (BBA) Program. # Scope of the Report: Marketing Mix Decisions of “Matador Ballpen Industries” is the main scope of this report. Marketing Mix & its Importance The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market. According to Philip Kotler, “The marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.” The marketing mix consists of everything the firm can do to influence the demand for its product. The many possibilities can be collected into four groups of variable known as the “four Ps”

–

Product

Place

4 PS

Price

Promotio n 1. Product: Product means the goods & services combination the company offers to the target market. For Matador Ballpen Industries the products are ball pen, eraser & pencil 2. Price: Price is the amounts of money customers have to pay to obtain the product. The price of ball pen, eraser & pencil are set by the company. The dealer distributes the product and gives the price to the wholesaler and retailer for sale the products. 3. Place: Place includes company activities that make the product available to target consumers. Matador Ballpen Industries sell their products by the dealer to all over Bangladesh. 4. Promotion: Promotion means activities that communicate the merit of the product & persuade target customers to buy it. Matador spends 5% of total expenditure each year on promotion to tell consumers about the company & its many products. An effective marketing program blends all of the marketing mix elements into a coordinated program designed to achieve the companyâ&#x20AC;&#x2122;s marketing objectives by delivering value to consumers. The marketing mix constitutes the companyâ&#x20AC;&#x2122;s tactical tool kit for establishing strong positioning in target markets. # OBJECTIVES OF THIS REPORT: With the following objectives in mind, I started to write this report1. To gain practical knowledge about sales & marketing activities and to know how the company implements it.

2. To know how a marketer formulates marketing mix that forms the basis of his marketing strategies and policies. 3. To know the way a marketer takes decision regarding his product, its price, its distribution and its promotion for ensuring optimal adaptation with the marketing environment. 4. To measure promotional effectiveness of Matador Ballpen Industries products. 5. To mention the limitations and future actions of Matador. 6. To suggest possible ways to provide better product. 7. To introduce new products and make a new market segment. # Methodology of the Study: •

Study Design: The purpose of the study is to determine the decisions in formulating the marketing mix for Matador. This study focuses on the 4 Ps of Matador. This is a descriptive study.

•

Primary Data: In order to collect the primary data, following methods have been followed:

•

Key informant (Senior Officers of Matador)

Unstructured Questionnaire

In-depth Interview.

Face-to-face interview.

Web Site.

Secondary Data: The secondary date have been collected from –

•

Interview:

Previous reports.

Web Site.

Different Books.

Journals.

Newspapers.

Printing materials of Matador.

I have been collected some additional information to conduct interview with some senior officers of Matador. I have followed the following two methods in terms of taking interviews of those offices – i)

Telephone Interview

ii)

Face-to face interview

Basically in-depth interview method has been used with an unstructured questionnaire. •

Questionnaire: Since I have used an unstructured questionnaire, I have asked the respondents to tell about the decisions they made to properly blend the marketing mix components. They have informed elaborately about their marketing mix strategy.

Limitations of this Report: Every favorable thing has an unfavorable shadow. I cannot say that my report is absolutely accurate. It has some limitations which has no way to overcome for the time being because some constraints1.

Time Limit: I am engaged in Matador for my Internship Program at the date of 1 st January where the duration is of four months. But I have to submit my report at the date of 30 th April. In the office I have to do some work so I can’t prepare my report in the office. I have to prepare my report at home after office. This report was completed within a short period of time.

Lack of Information: I am working at Sales & Marketing Division of Matador. Every employees of this section are busy with their work. So I get few time for interview and collecting information.

3. Communication Gap: I am the new employee of the company. Every employees are experienced then me. When I start my Internee have to face some problem to communicate with them. So many additional information is absent in this report. 4. Cost limitation: As a student, I could not bear the additional cost to give my report an attractive outlook. Although the above limitations are present, but I am grateful to submit this report because this is the outcome of my hard work, creativity and finally end of my final course of B.B.A Program. About Matador Ball pen Industries Matador Ballpen Industries is a sister concern of Matador group of Companies. The Group consists of following companies. 1. Matador Ballpen Industries. 2. Matador Polymer Industries Ltd.

3. 4. 5. 6.

Matador Marketing Incorporation. Matador Toothbrush Industries Ltd. Matador Food & Allied Industries Ltd. Matador Shaving industries Ltd.

Matador group produce tooth brush, comb, pen, upvc fittings etc. At the year of 2000 Matador Ballpen Industries started its journey. Within no time Matador Ballpen Industries became number one in Bangladeshi. The Chairman of Matador Ballpen Industries, with his innovative thinking, introduced Gripper Gel pen for the first time as Bangladeshi Manufacturer. Before the year of 2000, the pen market of Bangladesh was captured by India & China. But after introducing Matador pen, the market has been captured by Matador Ballpen Industries. From that time Matador Ballpen Industries is leading the market by manufacturing quality pen. Matador Ballpen Industries also introduce Eraser & Pencil at the year of 2007. Matador Ballpen Industries is always committed as to satisfy their customers & consumers by introducing innovative product and quality service.

Chairman Md. Shah Alam

Executive Director, Procurement:

Executive Director, Sales & Marketing:

Executive Director, Production:

Mrs.Rumana Nahid

Md. Sagirul Alam

Md.Rawshan Jamir

COMPANY PROFILE Name

: Matador Ballpen Industries

Brand Name

: Matador.

Nature

: Ball Pen Industry

Starting Operation

: 2000

Product

: Ball Pen, Pencil, Eraser

Product Category

: Consumer Products / Stationary products like Pen, Pencil, Eraser etc.

Area of Operation

Dhaka,

Chittagong,

Comilla,

Khulna,

Barishal, Sylhet, Rajshahi. Objectives

To satisfy customers by producing quality

products

Mission

To provide total customer satisfaction by providing quality products in a low cost to maintain their first position in Bangladesh. Matador will achieve this through developing people, products & services of the highest quality & meeting the needs of its customers, employees & the nation.

Slogan

Divisions

“Provide Quality Product” :

Corporate Offices

4 Divisions: 

Sales & Marketing division



Accounts division



Human Resource division



Procurement division

Head Office

:102, Azimpur Road, Dhaka - 1205

Contact

: Phone: 8650527, 8631246 Fax: 8631246

CORPORATE OVERVIEW Company Profile •

Headquartered in Dhaka

•

Operation in all over Bangladesh

•

Employs 245 People

•

Turnover Tk.48 Core

Products »

Matador Ballpen

Matador Pencil

Matador Eraser

Infrastructure at a Glance •

Total Area Coverage

: 64 District

•

Total No. of Distributors

: 147 Distributors

•

Total Outlet Coverage

: 98,951

•

Dhaka Region

: 22,576

Mymensing Region

: 6,457

Sylhet Region

: 15,576

Chittagong Region

: 11,600

Rajshahi Region

: 15,952

Khulna Region

Barishal Region

Total Sales Team in Bangladesh

: 13,122 : 13,688 : 266 People

NSM (National Sales Manager)

: 01

ASM (Asst. Sales Manager)

: 01

TSO (Territory Sales Officer)

: 24

SR (Sales Representative)

: 240

SKU wise Sales Performance 2005 (Jan to June) VS 2006 (Jan to June) Sl.

SKU Name

Total Sales

Total Sales Qty.

Qty.

(In Ctn.) 2006

No.

(In Ctn.) 01

Gripper Gel - A (Black)

2005 21897

28051

Gripper Gel - B (Black)

Gripper Gel - A (Red)

546

Gripper Gel - A (Blue)

Orbit Gel (Black)

3863

8287

Orbit Gel (Red)

Orbit Gel (Blue)

DX-Grip

673

All Time

504

804

Sales Performance 2005 (Jan to June) VS 2006 (Jan to June) Year

Total Amount

Average Sales

Growth %

2005

(in Taka) 102938762.00

(in Taka) 17156460.33

47.27

151596016.00

25266002.67

(Jan To June) 2006 (Jan To June) Sales Contribution 2005 (Jan to June) VS 2006 (Jan to June) Sl.

SKU Name

No.

Total Sales

Sales

Total Sales

Sales

Qty.

Contribution %

Qty.

Contribution %

(in Ctn.)

(in Ctn.) 2006

Gripper Gel - A

2005 21897

83.37

28051

72.92

(Black) Gripper Gel - B

0.00

(Black) Gripper Gel - A

0.00

546

1.42

(Red)

Gripper Gel - A

0.00

0.09

(Blue) Orbit Gel (Black)

3863

14.71

8287

21.54

Orbit Gel (Red)

0.00

0.14

Orbit Gel (Blue)

0.00

0.05

DX-Grip

0.00

673

1.75

All Time

504

1.92

804

2.09

26264

100.00

38468

100.00

Monthly Sales Performance 2005 (Jan to June) VS 2006 (Jan to June) Month

2005

2006

Growth % (+/-)

(in Tk.)

January

11807747

21180051

February

13926712

22402789

March

14779564

21562550

April

20554592

24513516

May

22022176

29045429

June

19847971

32891681

Total Amount

102938762

151596016

Monthly Sales Performance (Graph) 2005 (Jan to June) VS 2006 (Jan to June)

Certified By: ISO 9000:2000, Quality Management Systems - Fundamentals and Vocabulary •

ISO 9000-3: 1997 (E), Guidelines for the application of ISO 9001:1994 to the development, supply, installation and maintenance of computer software.

•

ISO 19011-1:1990, Guidelines for Auditing Quality Systems — Part 1: Auditing

•

ISO 19011-2:1991, Guidelines for Auditing Quality Systems — Part 2: Qualification Criteria for Quality Systems Auditors

•

ISO 19011-3:1991, Guidelines for Auditing Quality Systems — Part 3: Management of Audit Programs

•

ISO 10012-1:1992, Quality Assurance Requirements for Measuring Equipment —Part 1: Meteorological Confirmation System for Measuring Equipment

•

ISO 100 12-2:1997, Quality Assurance Requirements for Measuring Equipment —Part 2: Guidelines for Control of Measurement Processes

•

ISO 10013:1995, Guidelines for Developing Quality Manuals

•

ISO 10015, Quality Management Guidelines for Training

•

ISO 19011, Guidelines for Auditing Management Systems

Evolving Views of Marketing’s Role in Matador: Marketing division plays an important role for the success of Matador When Company faces various problems; marketing division of Matador comes to solve those problems. Some of them are:-

Sales Decline : When sales fall, marketing executives try to identify the reason clearly of then search solution. To increase sales, it takes various programs like price off, free product with every box of pen or pencil etc.

Slow Growth: Slow sales growth leads Matador to search for new markets. They realize they need marketing skills to identify & select new opportunities. A survey program is running in April to find out new market.

Increasing Competition: When Matador attacked by powerful competitors, it hired the best marketers it could find to help it compete.

Increasing Marketing Expenditures: When Matador finds that their expenditures for advertising, sales promotion, marketing research & customer service are yielding poor results, management decides to undertake a serious marketing audit to improve its marketing. Matador believes that a stronger marketing function threatens their power in the organization. The nature of the threat of Marketing Division of Matador is illustrated in Fig3(a) through (e).

(a)

Marketing as an Equal Function:Initially, the marketing function of Matador is seen as one of several equally important functions in a check-and-balance relationship.

Production

Finance

Human Resources

Marketing as a Function:Lack

more Marketing

demand

marketers to argue

leads

that their function

is more important product.

Important

to Production

Marketing

Finance

Human Resource

attract

new

(b)

Marketing as the Major Function:-

When Matador realized that without consumers there would be no company, it argued that marketing is the company, it argued that marketing is the major function of the company. Matador clarifies the issue by putting the subscriber rather than marketing at the center of the company. They argue for a customer orientation in which all functions work together to respond to customer satisfaction. Production

Marketing Finance

(c)

The customer as the controlling function:-

Marketing deals with customerâ&#x20AC;&#x2122;s need & satisfaction, so customer needs to command a central position. Production

Human Resources

(d)

The controlling Marketing function:-

Custo mer

Marketi ng

Finance

customer function as

the

the &

integrative

Matador manages to introduce some marketing thinking into their company. The company president – i)

Established a marketing division.

ii)

Marketing talent is hired.

iii)

Key managers attend marketing seminars.

iv)

The marketing budget is substantially increased.

Marketing planning & control systems are introduced.

Production Marketing

Finance

Customer

–––

Human Resource

Marketing Memo for Matador: 1.

The Matador Company’s assets have little value without the existence of customers.

The key task of Matador is therefore to attract & retain customers.

Customers are attracted through competitively superior offerings & retained through satisfaction.

Marketing’s task is to develop a superior offering & deliver customers satisfaction.

Customer satisfaction is affected by the performance of the other divisions.

Marketing needs to influence these other divisions of Matador to cooperate in delivering customers satisfaction.

Marketing Program of Matador :The marketing executives of the Marketing Division of Matador involved building a marketing program or plan to achieve the company’s desired objectives. The marketing program consists of numerous decisions on the mix of marketing tools to use. Components of Marketing Mix Considered by Matador

The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market. Matador always considers the components of marketing mix while making decision on these matters. They usually follow four broad groups of marketing mix tools classified by McCarthy which are known as 4 Ps of marketing: product, price, place & promotion [shown in Figure-d]

Marketing Mix

Product • Product Variety • Quality • Design • Features • Brand name • Packaging • Sizes • Services • Warranties • Offers • Returns

Target Market

Price • List Price • Competitive Price • Discounts • Allowances • Validity Period • Payment Period • Special Price

Promotion • Aggressive Personal selling • Attractive advertisement • Using sales promotion • Sales force • Public relation • Direct Marketing

Place • Availability of the product • Nearness of the dealers • Location • Channel • Coverage • Assortments • Inventory • Transport

Fig –1:- The Four P Components of the Marketing Mix. Source: - Marketing Management by Philip Kotler (11 th edition). Basically, subscribers of cellular phone are affected the above marketing mix. Beside those, subscription also depends on demographic & psychological characteristics of the subscriber’s i.e. i)

Subscriber’s preference

ii)

Media behavior & response to promotion

iii)

Awareness of the offerings

iv)

Subscriber’s value & satisfaction

Competitive advantages

vi)

Quick response of subscriber’s complaints etc.

Marketing Mix Strategy of Matador

Matador always trying to prepare an offering mix of products, services & prices & utilize a promotion mix of sales promotion, advertising, sales force, public relations, direct mail to reach the trade channels & the target subscribers. Marketing mix strategies of Matador is shown in Figure – 2. Promotion Mix Sales Promotion

Offering Mix Advertising

Matador Products Service Prices

Sales Force

Distribution Channels

Target Customers

Public Relations Direct mail, telemarketing & Internet.

Fig – 2:-

“Marketing Mix Strategy of Matador”

Source:

Marketing Management by Philip Kotler.

In marketing mix strategy, Matador can •

Change its price, sales force size & advertising expenditures in the short run.

•

Develop new package program & modify its distribution channels only in the long run.

•

Make fewer period-to-period marketing mix changes in the short run than the number of marketing mix decision variables might suggest.

The four Ps represent the company’s view of the marketing tools available for influencing buyers. Matador always tries to match the four Ps to the customer’s four Cs. Four Ps

Four Cs

Product

Customer satisfaction

Price

Customer cost

Place

Convenience

Promotion

Communication

Matador tries to meet current & potential subscriber’s needs economically & conveniently & with effective communication. The Decisions that the Marketing Division makes for Matador:

Marketing managers of Matador face a host of decisions, the “Marketing Memo: Marketer’s Frequently Asked Questions” lists many of questions marketing managers ask, which will be examined in this report. Marketing Memo “Marketer’s Frequently Asked Questions” 1. How can we spot & choose the right market segment (s) to serve? 2. How can we differentiate our product from competitive offerings? 3. How should we respond to customers who use our product? 4. How can we compete against lower-cost, lower-price competitors from here? 5. What are the major ways in which we can grow our business? 6. How can we build stronger brands? 7. How can we reduce the cost? 8. How can we keep our customers loyal for a longer period? 9. How can we tell which customers are more important? 10. How can we measure the payback from advertising, sales promotion & public relations? 11. How can we improve sales force productivity? 12. How can we get the other company departments/divisions to be more customer-oriented? Strategic Planning of Matador:Strategic Planning process of Matador is as follows –

External environment (opportunity & threat analysis) Goal Formulation

Company Mission Internal environment (strengths weaknesses analysis)

Strategy Formulation

Program Formulation

Implemen tation

Feedback & Control

Fig: “Matador strategic-planning process”. Chapter -4 SWOT Analysis: The overall evaluation of Matador’s strengths, weaknesses, opportunities & threats is its SWOT analysis. Strengths of Matador: i) ii)

iii) iv) v) vi) vii) viii)

Excellent business track record of Matador Providing quality Ballpen products & distribution through very complete & skilled human resources comprised of around 350 employees with a worth-mentioning reputation & goodwill. Long range strategic planning. Skilled market research unit. Strong distribution channel. Matador meets the need for more information & advice. They customize their product or service only in a standard form. They introduce new products.

Weaknesses of Matador: Matador identifies its weakness such as – i) ii) iii) iv) v) vi) vii)

Total areas of Bangladesh are not covered. Shortages of employee. Relatively poor salary for employees. Coordination between inter-division is very weak. Absence of advertising on Television. Absence of social responsible activities. Small floor space for office.

A) External Environment Analysis (Opportunity & Threat Analysis):Matador monitors key macro environment forces (demographic-economic, technological, politicallegal & socio-cultural) & significant micro-environment actors (customers, competitors, distributors, suppliers) that affect its ability to earn profits. Matador has a marketing intelligence system to track trends & important developments. For each trend & development, management identifies the associated opportunities & threats. a)

Marketing opportunities of Matador:i)

By using new technology, Matador can offer more & more excellent quality product to its customers.

ii)

Matador tries to include growing middle class population into its customer base by offering lower price.

iii) b)

Reducing price of pen, pencil or eraser

Environmental Threats:An environmental threat is a challenge posed by an unfavorable trend or development that would lead-in the absence of defensive marketing action, to deterioration in sales or profit. Many environmental threats may cause hamper the company, such as â&#x20AC;&#x201C; i) Environmental disaster like flood, Rain, Tsunami etc . ii)

Political unrest & instability create backward movement.

iii)

Recessionary trend in the economy.

iv)

Innovation & introduction of new product

The following matrices can show the opportunity & threat matrix for Matador â&#x20AC;&#x201C; Opportunity Matrix Opportunities: Success Probability

High

& system.

Low 2.

High Attractiveness

It develops a device for measuring the satisfaction of its customers.

2 3

Low

Matador develops a more powerful strategy

It develops a device for measuring its present & future demand.

It introduces new products

In the opportunity matrix, the best marketing opportunities facing the Matador Company are listed in the upper-left cell; management should pursue these opportunities. Threat Matrix

Threats:

Probability of Occurrence High

Low

High

Low

2 3

Seriousness

Competitor develops a superior strategy.

Recession in the economy.

Introduction of new competitor.

The threats in the upper-left cell are major threats, because they can seriously hurt the company & they have a high probability of occurrence. To deal with these threats, Matador needs to prepare contingency plans that spell out changed it can make before or during the threat. Internal Environment Analysis (Strengths/Weaknesses Analysis): Two things are important here â&#x20AC;&#x201C; i)

to discern attractive opportunities &

ii)

To be able to take advantage of these opportunities.

Matador for its marketing division considers the following factors for analyzing the performing strengths or weaknesses â&#x20AC;&#x201C; a)

Marketing :-

Company reputation

Market share

Customer satisfaction

Product quality

Pricing effectiveness

Distribution effectiveness

Promotion effectiveness

Sales force effectiveness

Innovation effectiveness

10. Geographical coverage b)

Finance:-

Cost or availability of capital

Cash flow

Financial stability

Manufacturing/Human Resource

Facilities

Economics of scale

Capacity

Able, dedicated workforce

Technical & personnel skill

Organization:-

Visionary, capable leadership

Dedicated employees

Entrepreneurial orientation

Flexible or responsive

According to the above factors, Matador identifies the following strengths & weaknesses for itself:1.

Goal Formulation :-

The objectives of Matador are as follows –

To maintain their market leader position.

ii)

To increase sales growth.

iii)

To maintain profitability.

iv)

To improve market share.

Risk containment.

vi)

To achieve competitive advantages.

vii)

Better innovation.

viii)

Company reputation.

ix)

Developing new markets & penetrating existing market.

Strategic Formulation :Objectives of Matador help it to design a good strategy for achieving its goals, consisting of – –

a marketing strategy

–

a compatible technology strategy &

–

a sourcing strategy. (a)

Generic Strategies of Matador :-

Overall cost leadership:Matador works hard to achieve the lowest production & distribution costs so

that it can price lower than its competitors & win a large market share. ii)

Differentiation :Matador concentrates on achieving superior performance by providing

quality product. iii)

Focus:-

Matador focuses on quality products and quick distribution. (b)

Operational Effectiveness & Strategy:-

Matador introduced many strategies to sell their product and to maintain the quality of the product. Matador must claim that it has a strategy when it performs different activities from rivals or performs similar activities in different ways. 3.

Program Formulation & Implementation:-

Matador works to attain technological leadership, so it plans programs – i)

to gather technological intelligence,

ii)

to develop leading edge products,

iii)

to train the technical sales force,

iv)

To develop ads to communicate its technological leadership.

For successful business practice, Matador must follow the 7–S framework –

Structure Strategy

Systems Shared Values

Skill

Style Staff Fig: - 7-S Framework for Matador success.

•

The first three elements – strategy structure & systems – are considered the “hardware” of success.

•

The next four – style, skills, staff & shared values – are the “software”.



Style – all employees of Matador should share a common way of thinking & behaving.



Skills – employees must have the skills needed to carry out the company’s strategy.



Staffing – Matador should be hired able people, trained then well & assigned then to the right jobs.



Shared values – All employees should share the same guiding values.

Matador always tries to maintain three elements efficiently & effectively, as a result, it is more successful at strategy implementation than any other cellular company in Bangladesh. 4.

Feedback & Control :-

After implementing every strategy, Matador always tracks the result & monitors new developments. The marketplace will change & when it does, Matador will need to review & revise its – •

Implementation

•

Programs

•

Strategies or

•

Even objectives.

It is more important to “do the right thing” (effectiveness) than “to do things right” (efficiency). Matador tries to excel at both. Differentiation Tools Used by Matador:Matador follows specialized differentiation tools for its product & services. Here I will examine how Matador can differentiate its market offering along five dimensions – 

Product



Services



Personnel



Channel &



Image

Product Form

Services Delivery

Personnel Competence

Channel Expertise

Image Symbols

Performance

Handling Complaints

Credibility

Performance

Logo

Durability

Sponsorship

Reliability

Media

Reliability

Event management

Responsiveness

Atmosphere

Communication

Events.

Reparability Style Design Table – 1: “Differentiation Variables”. # Relationships with Customers:

The total marketing process of the Marketing Division of Matador designed to win customers from competitors, then keeping & growing them by delivering greater value. For profitable customer relationship, Matador develops the following marketing process –

Marketing Intermediaries

Competitors

Fig:- “Marketing Process of Matador”.

Product

Marketing analysis

Marketing Planning

Chapter-5 Market Profitable Target Marketing Mix Strategically Decisions of Matador Segmentation

Here I step by step discuss the marketing mix Place includes –

5.0 Product 5.1

Suppliers

– – – –

customer Marketing relationships strategies & decisions that

Price

are taken by Matador. It

Market Positioning

Product decisions. Promotion Price decisions. Marketing Marketing Distribution decisions & Control Implementations Promotions decisions.

Publics

Sources of Raw Materials :

Availability of raw materials is important for a product & also its quality as well as further production.



Cost of Production also depends on the availability of raw materials.



Matador collects its raw materials from foreign countries.



The packaging materials are procured locally from different sources.

5.2

Product Life Cycle:-

Sales & Profits Sales

Profits O

Time

Losses Product

De-

Investment Development

Expired

Installed Active Inactive active

Fig:- Sales & Profits over the life cycle of a “One Pre-paid subscriber’s account”. 5.2.1

Introduction/Stage:–

In 1997, Aktel entered the market b following rapid skimming strategies.

–

Its promotional activities were so poor.

–

The company entered the market of the main cities divided into two zones Dhaka & Chittagong.

5.2.2

Growth Stage:–

Aktel Products are in the growth state.

–

The company lowers its product prices, improves distribution system & increases advertising & other promotional activities.

–

The company has improved the packaging program at this stage by taking the suggestions of the middlemen & subscribers. Here I will show a summary of product life cycle characteristics, what marketing

objectives & strategies Should Matador takes under these stages – Characteristics 1. Sales

Introduction  Low Sales

Growth  Rapidly

Maturity  Peak sales

rising sales 2. Costs

 High Cost per subscriber

3. Profits

 Negative

 Average cost per subscriber  Rising Profits

Decline  Declining sales

 Low cost per Subscriber  High profits

 Low cost per subscriber  Declining profits

4. Customers

 Innovators

 Early adopters

5. Competitors

 Few

 Growing number

 Middle

 Laggards

majority  Stable number beginning to

 Declining number

Marketing

Create Product

Maximize

decline Maximize Profit

Objectives

awareness & trial

market share

while defending

expenditure &

market share

milk the brand

Strategies

Reduce

1. Product

 Offer a basic

 Offer product

 Diversity

product

extensions,

brand

 Phase out weak items

service  Use cost plus

2. Price

 Build

3. Distribution

selective distribution  Build product

4. Advertising

 Price to penetrate

on beat

market

competitors

 Build

5. Sales Promotion

 Go selective phase out un-

intensive

profitable outlets

distribution

 Reduce to

 Stress brand

level needed to

differences &

retain hardcore

benefits

loyals.

 Build

dealers.

awareness &

 Use heavy

interest in the

sales promotion

mass market.

to entice trial

 Build more

 Cut Price

intensive

awareness among early adopters &

 Price to match

 Reduce to take

 Reduce to  Increase to

minimal level.

encourage brand switching

advantage of heavy consumer demand 5.3

Product Line & Brands:Matador’s Product Line consists of 3 items (pen,pencil,eraser) which sold under the brand

name of Matador Important items of the product line are – 1. Pen 2. Pencil 3. Eraser Pen –  Gripper gel  Orbit  All-time  DX-Grip  Radiant Product Positioning:-

5.4

As an honest service provider, the prime target of Aktel is to reach the top number. Ambitions of Matador with its product positioning include – – – – –

To come to the limelight. To be the leader with good quality. To design products for the middle class customers base. To design other components of marketing mixes properly.

– To offer better quality. – To aware potential customers about its offerings by using different media. 5.05 Quality Control:In developing a product, the company has to choose a quality level that will support the product’s intended position in the target market. From marketing point of view, quality should be measured in terms of buyer’s perception of quality. Aktel usually gives quality the first preference while introducing a product. To maintain the quality, the MATADORIB makes several tests of quality control before its product is marketed. 5.06 Packaging:–

Matador designs the packaging system by considering company & brand image.

–

Company designs the package in such a way that attracts attention, describes features, arouses subscriber’s confidence, and adds valuable information about the product.

–

Matador also considers how the package would look in the display.

5.07 The Product – Market Expansion Grid of Matador:Existing Products New Products Market Penetration Product Development Existing Markets

(Better Services) Market Development

New Markets 5.07.01 Market Penetration:-

Refill the pen Diversification New product

Matador’s market penetration strategy involves increase sales of the current product to current market segments without changing the product. –

In every year, it increases production capacity.

–

Improvements in advertising, prices etc. might encourage customers to be a customer of Matador.

–

Matador recently introduced “Radiant” a new 0.5 pen.

5.07.01 Market Development:-

–

Matador always tries to identify & develop new markets for its current products.

–

Matador is trying to convert uncovered areas where they are not operating yet.

–

To serve the market more accurately, their target market will be further segmented based on psychographics, business size, & geographic markets.

–

Matador now expanding swiftly into new markets.

–

Matador is also trying to operate in international market.

5.07.03 Product Developing:–

Matador offers modified or new products to current markets.

–

Matador has increased promotions in an effort to bring customers.

Knowing what the customer wants:a)

Reaching customer expectation & perceptions -

Comprehensive studies.

Gauging satisfaction with individual transactions.

Interacting with customers.

Customer complaints.

Using Customer research.

Setting Service Standards:a)

Commitment to service quality.

Developing solutions to service problems. -

Innovation approaches – try to find out the newer ways to set high quality of service.

Using technology – to simplify & improve the customer service.

Defining the role of service provides.

Setting service goals.

Measuring service performance.

Meeting & Exceeding Service Standards:a)

Giving Information & training. •

Every month the TSO attain a meeting in the head office.

•

In the meeting TSO give tips and training how to increase the sell.

Providing Instrumental & Emotional Support.

Improving Internal Communications & Reducing Conflicts. -Matador can reduce conflicts by

•

Having clear guidelines.

•

policies concerning service

•

Explaining the rationale for these policies.

Providing Incentives to dissatisfied customers.

Communication the Service Promise:a)

Realistic commitments. -Make a strong communication between marketing division & other divisions to clearly know about an ad campaign’s promises & the services the company can actually offer.

Managing customer expectation:-

-Information presented at the point of sale. -Providing accurate information. -Communication programs. -Responsibility in getting good service. -Give tips on how to get better service. # Handling, Storage, Packaging & Delivery # The supplier’s system for handling, storage, packaging and delivery of materials should provide proper planning, control and documentation. This includes in-process materials and finished product. 2.5.1

Handing: The supplier’s method for handing materials should consider providing transportation units so that damage, deterioration or contamination (due to vibration, shock, abrasion, corrosion, temperature, variation, radiation or any other conditions occurring during handling and storage) may be prevented. Maintenance of handling equipment is another factor to be considered.

2.5.2

Storage: The supplier should plan for suitable storage facilities, considering not only physical security but also environmental conditions (e.g. temperature and humidity). It may be appropriate to check periodically items in storage to detect possible deterioration. The methods for making and labeling should give legible, durable information in accordance with the specifications. Conditions may need to be given to administrative procedures for expiry dates, and stock rotation, and lot segregation. Note: 4. Storage and packaging requirements should consider the tiering, layering or stacking of product as part of the design parameters.

2.5.3

Packaging: The supplier’s packaging procedures, materials, packaging and labeling designs should provide appropriate protection against damage, deterioration or contamination during storage, transportation or any later period until the supplier’s responsibility ceases. The various forms of storage and the types of transportation that can be encountered should be considered. The packaging should provide a clear description of the contents or ingredients where regulations or the contract specify. Provisions should be defined for checking the effectiveness of the packaging.

2.5.4

Delivery: The supplier should provide for protection of the quality of product during shipping and other phases of delivery. For some products, including services, deliver time is a critical factor. Consideration should be given to the various types of delivery and variations in environmental conditions that may be encountered.

2.6: Training:

The training of personnel in organizations is essential for the achievement of quality objectives. This includes specific training necessary for performing assigned tasks and general training both to build incentives and to heighten quality awareness. Personnel should be trained in the usage of, and the underlying reasons for, the procedures and documents in the quality management approach of the supplier. To achieve and maintain proficiency a number of steps can periodically be taken by the supplier, as follow: Evaluation of the general education, experience and proficiency of the personnel for the activities to be performed.

identification of the individual training needs against those required for satisfactory performance;

Planning organization and carrying out of appropriate training, either-in-house, or by an outside.

Recording of training and achievement so that records can be updated and gaps in training can readily be identified and filled.

2.8: Quality products of Matador:

Gripper Gel:



Pin point:



Radiant:



All-time:



Pencil:

1. PRICE DECISION In price decision, Matador considers same factors when setting its product price. Making Price decision is not an easy task, it is so difficult. 3.1: Factors to Consider When Setting Prices:Internal Factors

External Factors Nature of the market &

Marketing Objectives

demand

Marketing Mix strategy

Competition

Costs Organizational Considerations

Pricing Decisions

Other environmental factors.  Economy  Resellers  Government

•

Internal Factors Affecting Pricing Decisions:i)

Marketing Objectives of Matador: –

–

Common Objectives. 

Survival



Current Profit Maximization



Market Share Leadership



Product Quality Leadership.

More specific objectives:

Set prices low to prevent competition



Set prices at competitor’s level to stabilize the market.



Set prices to keep loyalty & support of subscribers & to avoid government intervention.



Prices can be reduced temporarily to create excitement for a product or to draw more customers to be Matador customers.



One product may be priced to help the sales of other products in the company’s line.

ii)

Marketing Mix Strategy:-

Price is only one of the marketing mix tools that Matador uses to achieve its marketing objectives. So, price decision of Matador is coordinated with product design, distribution & promotion decision to form a consistent & effective marketing program. Price is a crucial product-positioning factor that defines the product’s market, competition & design. iii)

Costs:-

Matador always tries to attract new & potential customers, sometimes it does not think about its product cost because if a customer be ball pen users, then he/she will be the permanent customer of Matador. Matador products are produces in Bangladesh, so cost factor is so important here. iv)

Organizational Considerations:-

Matador has a pricing department to set the best prices or help others in setting then. This department reports to the marketing department or top management. Others who have an influence on pricing include sales managers, finance managers & accountants. •

External Factors Affecting Pricing Decisions:i)

The Market & Demand:-

Customers balance the price of a Matador product provided by against the benefits of owning it. Thus before setting prices, Matador must understand the relationship between price & demand for its product. a)

Type of Market:-

Matador products fall under the oligopolistic competition -–the market consists of a few sellers who are highly sensitive to each other’s pricing & marketing strategies. Matador, Olympic, Merit & Economy have the most market share. b)

Customer Perceptions of Price & Value:-

If customers perceive that the price is greater than the product’s value, they will not buy the product. Matador’s pricing decision is buyer oriented. c)

Analyzing the Price-Demand Relationship of Matador Product:-

The relationship between the price charged & the resulting demand level of Aktel product is shown in the demand curve –

P1 Price P2

Quantity demanded per period [Elastic Demand] Initially, at the introduction period, the Matador charged a high price for its product, and then the demand was very low. But when Matador charges relatively low price than other competitors, the products demand increases tremendously. Aktel increases the number of subscribers day by day by charging low price & giving high services. ii)

Competitor’s Costs, Prices & Others:-

Another external factor affecting Matador’s pricing decisions are competitor’s costs & prices & possible competitor reactions to the company’s own pricing moves. Matador’s pricing strategy may affect the nature of the competition it faces. If Matador follows a high-price, high-margin strategy, it

may attract competition. But by following a low-price, low-margin strategy, it may stop competitors or drive them out of the market. Pricing Objectives:Matador has three pricing objectives – i)

Sales Objective:The company’s sales objective is to sell the Matador product with a single price determined by the company all over the country in increasing volume. It has no geographical pricing that can affect regional customers.

ii)

Profit Objectives:Profit objective of Matador is simply to increase profit with increased volume of sales.

iii)

Competitive Objective:Pricing Matador products is to get market-leader position. This is possible for increased volume of sales. Here, price is not the only factor but the quality service is also a factor. If service quality is high, customers are able to pay the asking price.

Determining Demand:Matador determines its product demand by analyzing its previous sales volume & the results of its market surveys. The company market survey estimates are helpful in establishing the relationship between its product’s price & the quantity demanded. Pricing Policy:The pricing policy for Matador products is the one-price policy, i.e. same price for all consumers. But sometimes, it takes package-pricing policy. Competition-Based Pricing:Matador uses competition-based pricing method for primary stage of a buyer to be Matador customers. For entry cost, Matador considers competitor’s price for their product & sets a less price than its major competitors. Matador does not apply cost-plus & value-based pricing method for its product. Pricing Strategies:-

The strategy for setting a product’s price offer has to be charged when the product is part of a product mix. n this case, Matador looks for a set of prices that maximizes the profits on the total product mix. Product-Line Pricing:Matador usually develops product lines rather than single products sometimes. For Example – o

Boishakhi offer:-

2 taka less with every one packet of pen 3.8: Impact of Economic Condition on Prices: Matador faces the problem of continually changing economic conditions. Impact of inflation, tax, duty, raw materials duty & excise duty has bearing on the prices of Matador’s products. Main products of Matador are imported from foreign country. The price fluctuation of started kit that are imported from the foreign countries also influence price. Matador makes various adjustments in its price structure to cope with these changing economic variables. 3.9: Modification of Prices:The prices of Matador products modified between cost price (lower limit) & competitors price (higher limit). Matador always tries to set the prices low than the competitors when the company adds an additional attributes/services to its main product. 2. DISTRIBUTION DECISIONS Producing a product or service & making it available to buyers requires building relationships not just with customers, but also with key suppliers & dealers in the company’s supply chain. Matador’s supply chain consists of a strong distribution channel. 3.1: Distribution channel & intermediaries:Matador generally maintain a 4(four)-tier distribution channel. i)

Products move from Factory to procurement department.

ii)

Procurement department to corporate sales department.

iii)

Corporate sales to dealers.

iv)

Dealers to customers.

Distribution channel of Matador includes the following parties: 

Direct



Distributor



Dealer



Main dealer

Product may be transferred from one to another channel directly. Market segmentation for Distribution:Matador follows the principle of geographic segmentation for effective distribution of its products. It divides the country into six regions

1. 2. 3. 4. 5. 6.

Dhaka Chittagong Khulna Rajshahi Barishal Sylhet

Territory Total region are divided into 24 territories. For each territory there is a Territory Sales Officer (TSO). There are also about 240 Sales Representative (SR) who worked under TSO. Distributors List Sl.

Distributors Name

No. 01 02 03 04 05 06

Rabin Enterprise M.A.S. Traders Kazi Enterprise SNS Traders Hasan Hossain Traders Sadia Enterprise

01 02 03 04

Feroz Enterprise Hawlader Enterprise Gazipur Store Islam Traders

Area Mirpur-1 Pallabi Kallayanpur Hazaribug Moh.pur Kachukhet Dhaka-1 Tejgaon Badda Gulisthan Khilgaon Dhaka-2

01 02 03 04

Sikder Enterprise Pial Enterprise Jalil & Brothers Badal Variety Store Benjir Traders Raj Enterprise

Nawbabgonj Jatrabari Demra Keranigonj Gawsia Sonargao

Nur Traders

Adamjee Dhaka-3

01 02 03 04 05 06

Rifat Enterprise Al- Amin Enterprise SB Traders Suchitra Enterprise Shaha Enterprise Emdad & Brothers

Uttara Tongi Savar Manikgong Kaliakair Joydevpur Gazipur

01 02 03 04 05

Zakir Paper Store Mita Store Nahid Enterprise Beauty Enterprise HR Traders

Narayangonj Munshigonj Fattullah Sreenagar Dohar Narayangonj Total Dhaka Region

01 02 03 04 05 06 07 08

Pinky Distribution Moli Store Sunetra Traders Satorupa Enterprise Islamia Traders Shaha & Brothers Amin Book House M.M. Traders

01 02 03 04 05

Meer Enterprise Nakib Enterprise Joy Enterprise Nayanmoni Cosmetics Imran Traders

Mymensing Netrokona Netrokona Muktagacha Gafargaon Sherpur Vhaluka Sreebordi Mymensing

Sl. No. 01 02 03 04 05 01 02 03 04 05

Tangail Jamalpur Sorishabari Dhanbari Sokhipur

Tangail Total Mymensing Region Distributors Name Al-Harun Distribution Ridita Enterprise Bhuiyan Traders Gafur Enterprise D.M. Enterprise Ctg-1 (Bandartila) Bagdad Store K.M. Sons Nur Jahan Store Anjali Fashion Shikkhok Library

Area

Bandartila (Ctg) Cox's Bazar Chakaria Lohagora Potia Riazuddin Bazar Sholoshahar Rangamati Chondragona Sandip

01 02 03 04 05 01 02 03 04 05 06

01 02 03 04 05 06 07 01 02 03 04 05 06 07 01 02 03 04 05 06 07

Sl.

Ctg-2 (Riazuddin Bazar) Amanat Enterprise Halishahor Shaha & Co. Sitakunda Jahangir Store Baroirhat Jafar & Brothers Khagrachari M.M. Corporation Hathazari Ctg-3 (Halishahor) Shulov Bitan Chowmuhuni Nabi Store Feni Gopal Krishna Banik Laksmipur Nur Md. Store Bashurhat Showkhin Store Ramgonj Faisal Store Hatia Noakhali Total Chittagong Region Nasir & Brothers Sylhet Promi Traders Goainghat Nikesh Ranjan Dey Sunamgonj Abu Bakar & Sons Sreemongal Bhai Bhandhu Enterprise Hobigonj Habib Enterprise Juri (Moulovi Bazar) Emad Enterprise Biani Bazar Kanai Lal Dey Chatak Sylhet Udoy Enterprise Comilla Russel Store Laksham Shahara Enterprise Chandpur Zabed Store Motlab Shankar Shah Hazigonj Niyoti Store Eliyatgonj Iqbal Variaty Store Bhangura Comilla Hazi Safiruddin & Co. Kishorgonj Parveen Electric B.Baria Swapan Store Bhairab Enayettullah Store Narsindi Sawrup Enterprise Madhabpur Bijoy Store Nandail Aymon General Store Bancharampur Kishorgonj Total Sylhet Region Distributors Name

No. 01 Sugandha Int. 02 Sree Durga Store

Area Barishal Sadar Bazar Road

03 04 05 06 07 08 01 02 03 04 05 06 07 08 01 02 03 04 05 06 01 02 03 04 05 06 01 02 03 04 05 06 01 02 03 04 05 06 01 02 03 04 05 06 07

Habibur Rahman Muladi Mollah Bakery Mehendigonj S.Ahmed & Sons Char Fashion Shukumary Store Bhola Chowdhury & Sons Madaripur New Modina Traders Gowronadi Barishal Territory Ekata Traders Faridpur Moon Star Traders Boalmari Pankaj Kumer Shah Gopalgonj Bhandan Enterprise Vhanga Opi Enterprise Jajira Shariatpur Dhakesshawri Vhandar Teker Hut Akter Store Rajbari Rashid Store Damuda Faridpur Territory Mattry Store Patuakhali Bismillah Store Baufal Provat Enterprise Pirojpur Pankaj Leather House Sawrupkhati Maa General Store Jhalokhati Tammanna Traders Barguna Patuakhali Territory Total Barishal Region Amol Traders Magura S. Islam Traders Jessore Mizan Traders Daulatpur Karim & Sons Sathkhira Janani Shit Bitan Shayamnagar Alok Kundo Narail Jessore Territory Nitai Chandra Paul Kustia Mohammad Ali & Sons Jenaidha Azam Store Kaligonj Khatun Enterprise Chuadanga Lima Enterprise Vheramara Rajdhani Store Meherpur Kustia Territory Riya Enterprise Khulna Variety Store Khulna (Whole Sale) Aishi Traders Bagherhut N.J Store Mongla Shatissree Biponi Kopilmuni Shaha Enterprise Morelgonj Khulna Territory Total Khulna Region Shahabuddin Store Rajshahi Islam Enterprise C.N.Gonj Bhai Bhai Variety Store Keshorhut Nikhil Store Aarani Suma Variety Store Natore Dinajpur Chaul Ghar Issarwardi Runa Store Pabna

Rajshahi Territory 01 02 03 04 05 06

N.I Store Shishir Traders Rahmat Traders Shila Bristi Enterprise Habib Traders Kamrul Store

Bogra Naogaon Sherpur Shahjadpur Kashinathpur Shirajgonj Bogra Territory

01 02 03 04 05 06

Manik Store Younus Store Karim Store Mizan Traders Monowar Cosmetics Mojibar Store

Dinajpur Sayeedpur Fulbari Joypurhut Thakurgaon Panchagar Dinajpur Territory

01 02 03 04 05 06 07

Mahin Enterprise Rangpur Hannan Store Badargonj Satota Biponi Lalmonirhut Aasheda Store Kurigram Sharmin Store Rowmari Joyanto & Aurun Kumer Shaha Gaibandha Chowdhury & Sons Gobindagonj Rangpur Territory Total Rajshahi Region a. Transportation:Matador maintains its own transportation system for delivering products to dealer/middlemen. For this purpose, the company uses its own vehicles & middlemen are not required to bear the transportation cost. b. Inventory Management:Inventory management is an important part of corporate management. Management must know the stock level before to place an order. This stock level is called the order point. Matador maintains a moderate inventory level than other companies as its main products are come from foreign countries. The average safety stock of products is 1 month. 4. PROMOTIONAL DECISIONS

During a long period, Matador didnâ&#x20AC;&#x2122;t involve itself any promotional activities. Now a day, promotion is an important decision that must have some primary planning before taking any decision. Setting promotional budget:-

Matador sets its promotional expenditures at a specific percentage of its total expenditure per annum. The company also sets its promotion budget to match competitor’s outlays. Matador spends about 5% of annual expenditure. Promotional Policy:Matador devotes its promotional fund mainly in advertising, though the company does the personal selling & sales promotion on a small scale. About 5% of total sales are spent for advertising. The company spent heavily on advertising to build a long-term image for products & services & to trigger sales. And as a media the company gives preference on Newspaper. Sponsorship:Matador now a day contributes many – 

Fair



Rally



Social development programs



Concerts

Measuring Advertising Effectiveness:–

Matador in measuring its advertising effectiveness uses both pretest & posttest methods.

–

In pre-test method, the company usually tests its advertisements by the employees of its marketing department.

–

The company also measures the after effect of advertisement on the basis of sales.

–

By analyzing the sales figure (monthly), the company justifies whether its advertisement expenditure pays well.

CHAPTER-6 CONCLUDING REMARKS Matador is the market leader in Ballpen industry of Bangladesh. So Matador have to face many kinds of attracts from the competitors.

The company’s products are of good quality. So Matador is

surviving in the competitive market. Matador Ballpen Industries is the first Bangladeshi company who produce gripper gel pen. Matador Ballpen Industries also improving every year and there graph of development is increasing day by day. Matador Ballpen Industries always try to produce quality product and introduce new product in the market.

RECOMMENDATIONS I have to explain some drawbacks of Matador product & suggest possible ways to solve these through this report – # Matador must introduce new product to get a new segment of market. # Matador may try to increase the market size & that will also increase the amount of there sale. # Matador must maintain the product quality to be the first position in the market. # Matador must increase there coverage in the country. # Matador must increase there sales team and employee to maintain there position and to give tuff competition to their competitors. BIBLIOGRAPHY 1.

Philip Kotler, “Marketing Management” (11th Edition), Prentice-Hall, India, 2003 – 2004.

Philip Kotler & Gary Armstrong, “Principle of Marketing” (10th Edition), Prentice-Hall, India, 2003 – 2004.

Valarie A. Zeithaml & Mary Jo Bitner, “Service Marketing” Integrating Customer Focus Across the Firm, (3rd Edition), McGraw-Hill, 2003.