Performance of Joongbo Multimode Chemicals Ltd
Organization Preview 1.1 Multimode Group: Multimode group is the mother company of Joongbo Multimode Chemicals Ltd. The Multimode Group began its journey on September 21, 1981. The Multimode Group is a family-owned business and its founder is also its CEO, Abdul Awal Mintoo. Currently, four members of the family are directly involved with the company. The Group started in shipping but has since diversified into many industries. Perhaps the most notable venture of Multimode in its early days was Panda Garden, a Chinese restaurant that revolutionized the dining/entertainment industry in Bangladesh. Since the mid-eighties, Multimode Group has diversified into manufacturing/producing in the Agriculture, Textile, and Chemical Industries. The Group also has trading businesses ranging from Fast Moving Consumer Goods (FMCG), to automotives, to computer software. Multimode is also involved in real estate and money remittance and also has a presence in the financial, tourism/hospitality, IT, and energy sectors in Bangladesh. Other Business of this Organization: • A&A Investment Ltd • BETSS • Dulamia Cotton Spinning Mills Ltd • Lal Teer Seed Ltd • Jongboo Multimode Chemical Ltd • Kay & Que (Bangladesh) Ltd • M F Consumers Ltd • Multisourcing Ltd • Multimode Ltd • Multimode Transport Consultants Ltd • Multiplex Limited • NFM Energy Limited • NFM Ltd • North South Seed Ltd 1.2 Joongbo Multimode Chemicals Ltd: Joongbo Multimode Chemicals Ltd., the newest member of the Multimode family is proud to introduce a wide range of cutting-edge PE Foam products or what we like to call "JUMBOLENE". This project has been undertaken with our joint-venture partner from South Korea, Joongbo Multimode Chemicals Ltd. who has given us the full technical support required. We began to produce
it in Bangladesh for the first time from the last quarter of 2005. Such product for packaging and insulation has never been produced in Bangladesh. JMCL is situated at Tejgaon Industrial Area. Modern technology & equipments are used to produce the product for its valuable customers. This factory is environment friendly for its latest technology. JMCL currently has about 50 employees. Its main product is PE Foam which is being used for various purposes. The current demands are being increased for its various important uses. Jumbolene products are widely used in construction field and having an important role in this sector. 2.1 Company Activities Company Aim: Principal Objective: • The principal objective for which the company is established is to lead the way for creative plastic products in Bangladesh. Other Objective: • To carry on the business of setting –up the plant under the joint venture in Bangladesh to produce polyethylene foam products. •
To carry on the business of producing and processing of all type of plastic. Products covering all verities of conversion operations by environment friendly & up-to-date technology transferred from bonafide principal and marketing in Bangladesh.
•
To carry on the business on the manufacturers, importers and exporters, order suppliers , dealers, hirers, repairers and marketing of plastic products, other consumer products,, industrial products, construction materials & fisheries products.
•
To carry on the business of dealing all types of plastic products manufacturing machinery, parts, spares, accessories and raw materials and to function as consultants and to run, work, maintain and manage and control plastic products manufacturing.
•
To carry on the business of scrap plastic material collection, recycling and otherwise disposal of environmental conservation.
•
To carry on the business of manufacture, trade and marketing of fuels made of scrap and waste plastic.
2.2 Products of JUMBOLENE •
JUMBOLENE Sheet, rod Covering, Bags, pipe for air-conditioner pipe insulation
•
Foil Laminated(Pure Aluminum/PET Film) JUMBOLEBNE
•
Sheet & Planks, Self adhesive JUMBOLENE Planks and
•
Laminated JUMBOLENE Sheets
•
JUMBOLENE Net, JUMBOLENE Sheet
•
JUMBOLENE Planks for mattress, Core, Mattress Side cover
•
JUMBOLENE Beach Mats, Prayer Mats, Picnic Mats
•
Printed JUMBOLENE Sheets& Planks
•
JUMBOLENE Radiant Barrier (fire Retardants)
2.3 Sector of uses: This product could be used for different purposes even different scetor. Like: • Industrial packaging •
Construction
•
AC Ducting
•
Insulation
•
Readymade Garments sector
•
Sound proofing
•
Telecommunication
•
Sundry
2.4Brand name The products are to be marked under the brand name of JUMBOLENE. Huge investment in advertisement, market promotion and development are to be made. There for the company desires to protect its investments as brand goodwill through registrations of its brand name and trademark. 2.5 Company Claim: JMCL claims that JUMBOLENE brand PF Foam product is an innovative item as because PE Foam production facilities were not available in this region and as such no specific market had developed for this item. Our company invested huge funds to acquire the technology from abroad. The company is investing further amounts to develop appropriate products suitable for Bangladesh context and for its market development. Furthermore, our PE Foam products are completely new and will be the substitute for Polystyrene Foam, Poly Vinyl Foam, Cotton, Paper, Jute, Fiberglass etc. In this regard, the proposal for product patent registration is submitted for exclusive marketing rights for periods as allowable relevant laws. The brand and trademark registration and product patent registration will provide some protection against copying, design & idea pilferage and other forms of piracy against our intellectual property rights. 2.6 Company Organ gram There are three department of JMCL which are finance & account, production and marketing & sales department. The Organ gram is given below: Product Review & Current market Scenario Product Orientation The Polyethylene (PE) world is the land of the unlimited possibilities. Apart from all the other packaging applications, PE is also the raw material for many Foam applications. 3.1 What is PE Foam? None cross-linked polyethylene foam, which we are producing, are formed with innumerable cells expanded by 15-40 times of the Low Density Polyethylene (LDPE) resins. Our PE Foam features in shock absorbing, vapor-proofing, temperature-insulating, strong chemical resistance, static-current resistance, easy handling, multi-colored, pleasant appearance characteristics and
have been used for civil construction, agriculture, plumbing, comforter, and many other applications with excellent results. 3.2 Benefits of PE Foam in packaging PE Foam product is superior to other packaging materials because it is: cleaner, more visually appealing to customers, easier to handle, moisture resistant, cost-effective, lighter weight, staticcurrent resistant, heat insulating and totally recyclable material. Foam is widely used now-a-days in industrial packaging to ensure best protection and quality. It is unrivaled in offering the best packaging solutions for ceramics, showpiece, electronic appliances, mechanical equipment, computer & accessories, leather goods, furniture, fruits & vegetables etc.
3.3
Making
the
Better Home in a
Better House PE Foam is one of the most versatile and cost-efficient materials used in today's dynamic construction industry and insulation industry. It is ideally suited for interior and exterior installation, in both new construction and retrofit applications. It provides an economical alternative for many traditional construction materials. PE Foam insulating material has minimum thermal conductivity (K-value) and provides maximum protection of metal roofs and concrete casting slabs against solar heat. PE Foam is unaffected by climate, insects and environmental hazards and thus can last a lifetime without replacement and minimum maintenance. PE Foam is unaffected by climate insects and economic for its cost-saving contribution towards lowering electricity costs by minimizing the use of expensive air-conditioning systems in buildings. The PE Foam planks have very good capacity as sound baffles. They have found wide use in studios and other sound-room application. 3.4 Comforter & Sundry products PE Foam material can be converted into many different high utility products such as E3eachmats, light & tight Mattresses for back-pain protection, Sun-shade covers, life jackets etc. Many other creative applications of this product wait for gainful enterprises. 3.5 Product Safety PE Foam is odorless, non-poisonous, CFC free, environment friendly. Bio-degradable and fire-retardant features can also be given to special products for specific applications. 3.6 PE Foam production PE foam is mainly produced through extrusion technologies. The foams are created by first dissolving and mixing a gas in the molten PE, secondly expanding the gas into a lot of small bubbles or cells and finally cooling the expanded PE and thereby creating the final foam.
The foam can be shaped in different semi-finished products such as tubes, profiles, sheets and blocks. The expansion results in a substantial reduction of the polyethylene density. Low Density Polyethylene (LDPE) as the raw material for these foam has typically a specific density of 920 kg/m3. On the other hand the average density of PE foams is 30 kg/m3. This weight reduction is obtained by expanding the PE approximately 30 times. E3ut it is not only the weight that is changed during the foam process. The new properties that are gained by the PE in its foamed state are jointly responsible for the many applications of this product.
3.7 Target Market of JMCL Nowadays we find a continuing increase in the use of polymer foams in general and of PE foams in particular. The versatile physical properties of foamed polyethylene open new possibilities in weight-saving and energy saving. This corresponds with to the general trend in modern society to do more with less amount of raw material. Today the LDPE foam market is only a small part of the total tonnage of the LDPE market (less than 1%), however bearing in mind that the average expansion factor of these foams is 30 times, the volume of the LDPE foam market measured in cubic meters is significant. It is also growing faster than the film segment, which is the largest segment of the LDPE market; so the future for LDPE foam is looking bright. Correctly foamed polyethylene has a structure of small regular cells. Due to this factor it has a high heat and sound insulation capacity and excellent shock absorbing capability.The building, packaging and automotive industry and the producers of sports- and leisure articles are happy to utilize these excellent properties. PE foams can be produced in any color desired. Children highly appreciate the colorful fun toys for swimming pools and three-dimensional puzzles. Their parents and grandparents are more charmed by the comfort of garden seat cushions and knee protectors. 3.8 Target Audience As a result of the excellent heat insulation, PE foams are used for the insulation of central heating pipes. For the same reason and also for the sound absorption it is used on concrete floors under tiles- or parquet floors. Again for its sound absorption and heat insulation PE foam sheets are used in buildings as roof insulation, which is growing in popularity over the last years; so in homes and offices, PE is showing it's face more and more. Also in the packaging industry we see the use of PE foam. Due to the high shock absorbing capability, fragile glasswork, TV's, audio sets, PC's and printers are wrapped in PE foam sheet and in preformed foam blocks. The producers of sports- and leisure articles have also noticed that PE foam easily intercepts the blows. (Ice) Hockey players, ice- and roller skaters and skiers are enjoying the comfort of knee-, shin-, elbow- and head protectors to increase their resilience. On top of that we find PE foam in swimming pools, in children's playgrounds, on camping sites, etc where it is used in surf boards, toys, puzzles and camping mats. The car interior is also covered with a PE foam layer. The automotive industry heats the foamed PE sheets and moulds them in the desired shape to cover the dashboards, door panels, consoles, boot interiors and handgrips. Finally a part of the PE foam in cars is 1 1 invisible" as it is used as double-sided adhesive tapes for the fixing of spoilers, rear and front lights, body side
protective mouldings, emblems and mirrors. As the target audience is huge, so it will be little bit easier to attract them by following different promotional activities. 3.9 Targeted customers: As per application of PE Foam, the following is our targeted customer 1. Pre fabricated steel building structure 2. Furniture Company 3. Engineering firm of AC ducting 4. Corporate business house 5. Pharmaceuticals industry 6. Textile industry 7. Poultry Industry 8. Consulting Firm etc 3.10 Pre fabricated Steel Structure Company: Major companies are given below1. BBS 2. Zakir Steel 3. McDonald 4. PEB 5. Jalalabad steel 6. Buildtrade 7. Zamil steel 8. Uttaran structure 9. Modern steel 10. Iron build 11. Automan 12. Civil Tech 13. Joint star 14. Multi span 15. ALM These companies are expert for making the steel building. So they are not the owner of the steel building. If we target only the pre Fabricated steel building companies we will not get the business, because these companies always prefer glass wool, glass wool price is relatively low. So our targeted customer will be 1. Actual owner of the building, especially Engineering Department.
2. Pre-fabricated steel building company. 3.11 Conglomerate Business House: There are some corporate business houses in Bangladesh. Regularly they purchased this nature of product for their internal use. So we will found out which product is useful for their respective industry & accordingly we will take necessary steps to sell our products. We may get steady sell round the year from corporate business house as well as this will increase our brands image in the market. We will assign our one executive officer for corporate business. Most of the corporate business houses are given below1. Beximco 2. Square 3. Transcom 4. Akij Group 5. Bashundhara 6. Abul Kahir group 7. Partex 8. Maghna group 9. PHP 10. Anwar group 11. Abdul Monem Ltd. Initially we will target the above mentioned business house to sell our PE Foam. We will Find out who is the key person to give us business for the respective industry. 4.3 Pharmacetical Industry: Our PE Foam has wide scope to use in pharmaceuticals industry as insulation. Bangladesh is sound for pharmaceutical industry. Pharma company is meeting the local demands as well as this industry is earning foreign currency. Our product is perfect as insulation for pharmaceutical industry. So we will give extra concentration to sell our product to the pharmaceuticals industry. Currently we have targeted the following companies to use our PE Foam as insulation: 1. Reneta 2. Beximco 3. Square 4. Aventis 5. Novartis 6. Rangs Pharma 7. Health Care 8. Orion 9. Nuvista 10. Opsonin
11. Popular 12. SKF 13. ACME 14. Drug international 15. Aristo Pharma 16. Incepta 17. Radiant 18. Glaxo Engineering department and procurement department is the key person to purchase our PE Foam as insulation. Current market Scenario In Bangladesh, it is always been a tough task to establish a new brand in a particular area of business. Irrespective of this fact we can strongly say that the name JUMBOLENE is a super brand in its respective area of business. The target markets of JMCL are Industrial packaging, Insulation, Comforter, BTS and Sundry fields. Market share of JMCL is gradually increasing in a significant manner. The product performance of JMCL is somewhat satisfactory. Market Description In the existing market the main competitors of JMCL are Glass-wool, Rock wool, PS Foam, PU Foam, Thermo Foam, Re-bonded Foam, Bubble Foam, RAYA, Wastage paper, Padding Foam etc. But the main competitors of JMCL are the new PE Foam Manufacturing company of Nasir Group. Market Information A market is group of people who need & want & have the ability, willingness & authority to purchase. Company should know how many competitors are operating their business in the same industry, industry market size. Who is the market leader & which product has occupied major shares of the market.
Organogram of JMCL Marketing Department
DGM, Marketing AGM, Marketing
Asst. Manager, (Corporate House)
Executive Officer, (Steel Building)
Asst. Manager, (Wholesale Market Furniture & Poultry)
Executive Officer, (RMG)
Executive Executive Officer, Officer, (Pharmaceuticals) (AC Ducting) Asst. Manager, (Distribution)
Executive Officer, (Inventory & VAT)
Strategic Marketing Plan for JMCL In the context of steadily escalating competition in Markets all over the world the need for Strategic Marketing Plan becomes imperative. The modern management has a positive role to play in terms of achieving corporate goals and objectives of an organization on a planned basis. JMCL is a pioneer business house in the area of Industrial packaging, Insulation, Comforter, BTS and Sundry etc which is operating its business under the Brand name JUMBOLENE. As we all know that a new company named as Syntex Polymer (a unit of Nasir Group) already launched its products in the same fields so we should change our marketing strategy and plan to stay alive in the market. So the prime goal of JMCL is to grief the existing market in our custody and simultaneously to expand the present market in a planned manner. To achieve planned results it is imperative that personnel at all levels acquire a high degree of professionalism. Considering this facts Strategic Business Plan will show the pathway of success to the ever increasing competitive business fields. Customer Information A market oriented organization continuously gathers information about customers. The marketing concept advocate starting with customer needs & wants, deciding which needs to meet, and involving the entire organization in the process of satisfying customer needs. The market oriented organization understands customer’s preference and requirements & effectively deploy the skills and resources of the entire organization to satisfy customer. A company can be market oriented only if it completely understands its markets & the people who decide whether to buy its products. Threats and Opportunities of JMCL According to the market scenario threats and opportunities of JMCL would bea) Threats: 1. Intensifying competition from the importer and manufacturer of Glass-Wool, Rock Wool, Bubble Foam, PU Foam, PS Foam, Raya, Thermo cool, Elastomeric Foam and the new PE Foam Manufacturing Company. 2. Downfall tendency of orders and inconsistencies of orders which leaving the company to forecast properly. 3. Lack of skilled factory workers and turning to new professions. 4. Raw materials are imported, supply/price situation changing depending on the changing global economic situation. 5. The latest technology of the newly established company will definitely be a threatening point for JMCL. b) Opportunities: 1. The company under MULTIMODE GROUP is well known in this sub continent. 2. Technology bought from Korea. 3. Eco-friendly products. 4. Some factory workers are skilled. 5. Corporate buyers are gradually increasing. 6. Raw materials of the produced items are available in the country. 7. Production capacity of the factory is somewhat satisfactory. 8. Huge opportunities lie in the entire Pre-Fabricated Steel Building Sectors, Garments, Pharmaceuticals, Poultry, Telecommunication and mattress sectors.
Marketing analysis of PE Foam Product in Bangladesh First of all I would like focus on Business Development Options JMCL:
Figure1: Business Development Process
JMCL Core Business
New Product for existing Marketing
New Product for existing Marketing
New Product Marketers (Diversification)
Unrelated to Core Business
Related to Core Business
Action Programmers Part-A: Activities • Working on pending issues • Follow up with existing clients • Train, guide and supervise the newly recruited sales personnel of JMCL and simultaneously supervise, monitor and motivate the existing sales forces. • Mass print advertisement
Possible Outcomes Remarks • Present sales volume will The said programs may be changed or modified if any be increased odd or even situation arises • New marketing and Sales based on the market people well equipped with information, present and past JUMBOLENE situation and JMCL position on the market place. • Mass people will be well informed about JUMBOLENE and its features
media
•
Existing clients will close in contact with us and business will be run unhindered eventually
• Meeting with the existing clients
•
New sectors defined
will
be
• PR Relationship build up
•
JUMBOLENE
will
get
• Fair participation
with the existing clients by offering dinner, lunch, gifts, crest etc. • Searching new prospective area of business
privilege on their projects •
We get the opportunity for taking remedial action
• Seminar with Engineers, architects, Consultants and experts • Cautiously follow the activities of the new competitor and act accordingly to defend Part B: Market Opportunities Analysis
Define Product Markets
Customers’ Profile Building
Competitors’ Profile Building
Market Size Estimation
Related Market Opportunity for JMCL JUMBOLENE
2.4.10 Total Market size of Insulation & Packaging Industry Sector's Name Insulation Packaging A.C ducting Sound/Damp proofing Telecommunication Total
Approximate Market Size (Yaerly) 40 Crore 15Crore 8 Crore 2 Crore 1 Crore 66 Crore
Market share: Glass wool is the market leader of insulation market. This product has lot of demerit & harmful for human body. Sometimes it causes carcinogenic disease to the human body. Name of products Market Share Glass Wool 70% Bubbles 12% PE Foam 10% Others 8% Source: Primary Table 7: Market Share in Case of Insulation
Figure 3: Market Share in Case of Insulation SWOT Analysis & Marketing Mix of JMCL 5.0 SWOT Analysis 5.1 Strengths • JMCL produces 100% environment friendly products. •
Marketing of the company is being managed by itself.
•
Self sustained company without any outside financial assistance.
•
The numbers of potential corporate clients are increasing significantly.
•
JMCL has no competitor in the market place, which produces PE Foam products.
•
The company under MULTIMODE GROUP is well known in the local market especially due to the name of ‘CEO MR. ABDUL AWAL MINTOO’ for the buyers of making it distinct.
•
Raw materials of the produced items are available in the country.
•
Some factory workers are skilled.
•
Some staff/workers those who are associated with the company are skilled, potential and have the ability to cope with product diversification and new design within short time if training is provided.
•
Production capacity of the company seems somewhat satisfactory.
•
Some basic tools are available in the company for quality control of the produced items.
5.2 Weakness • There have no doubt been many flaws; some of the important issues are listed below•
No strategy vision worked out as yet for the company
•
JMCL is not a Marketing Oriented company. It is a sales oriented and Accounts based company
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JMCL is not an ISO Certified Company, which is unexpected in the open market economy
•
Company lacks salary structure and yearly increment policy for the officials and salary discrimination persisting in terms of educational qualification, knowledge, skills, sincerity, honesty, dedication, designation and position carrying gravity
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There is no system for assessing need to develop skill of the staff by providing training
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The company has no local outlet to maximize its profit for meeting demand of the country consumer on different items like other foam material producers, or by selling rejected or unnecessary items.
•
JMCL has no transport for just in time delivery of goods to the valued clients. As a result the function of requisite customer service is hampered seriously
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There is no attempt to diversify the product design or develop the product quality seriously. Non-diversified products, delay in product development, lack of use modern technology by the workers and JMCL Administration
•
Packaging of the company is not up to the entire satisfaction level. This should be more cost effective according to the buyer’s choice.
•
Lack of adequate space of the company especially for ‘Store, Packaging and Quality Monitoring’ sections.
•
The company has no cutting machine. So that the workers cut the products manually with knives which is time consuming. Moreover by cutting the products manually quality of products as asked by the valued clients could not be done properly
•
Many buyers reported problems with bubbles, washable chemical coating of foil, not water and fire proof products, non-uniformity of cells, cutting & finishing problems
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JMCL can’t produce PE Plank having width 60” (sixty inches). Most of the buyers in the mattress sector demand for 60” width PE Plank. They meet their demand through import.
•
Job description with clearly role and responsibilities and authority of the staff is not defined
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Administration and staff rules are not suitable for the JMCL staff
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In many cases overlapping of the duties and responsibilities are creating confusion and dissatisfaction among the staffs. For example, accounts related job are being done by the ‘JMCL Factory level and Head Officer together’. As a result that concerned personnel both from the Head Office and Factory Office misunderstand each other, which are unexpected for smooth business operations
•
Company lacks transparent policies in connection with appointing a person as factory worker/lab our
•
Some of the existing policies of the company on remuneration package, salary increment system; tour policies, leave, weekly holidays etc are not in line with the MULTIMODE GROUP’S policy. Some existing rules and practices are confusing.
•
There is no policy to retain the potential employee in the company
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Some sections are quite inadequate staffed which seems that the ‘Man Power Distribution’ or allocation system has not made on the basis of need analysis
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Some staffs don’t have requisite competencies for the positions they are holding now
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The company does not have any clear credit programmed.
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Productivity of the company workers in generally is low due to the want of written appointment letter depicting role and responsibilities of the individual staff in a clear and an understandable manner to achieve maximum output on a regular basis
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The company does not have any committee such as pricing of items, Procurement, Need assessment, Development activities, crisis situation handling etc
•
Company lacks clear guideline to provide training to its potential staff to develop skill in the field of product development, market promotion, quality monitoring etc.
•
It does not have also any financial incentive package for the staffs like some other companies of the country in the form of performance/ sales /production bonus, equity etc.
5.3 Opportunities •
As JMCL is the first who made this product company in Bangladesh, it has ample opportunity to grief the whole market gradually and hence to boost us its business within shorter span of time
•
Vast market in the entire Construction sector, Defense, Telecommunication, Power Plant sector, furniture industry, RMG sector, Industrial Ducting and cold storage etc are increasing significantly along with many packaging, shoes, mattress sectors etc
•
Huge demand for commercial buyers could be met.
•
Scope for diversification of the products ranges on existing and new items
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Financial and technical assistance could be taken from the donors and technical experts etc for design development, cost effective and most scientific way of packing, shipping, market promotion activities etc
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The company has some regular reliable and trusted corporate buyers
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Attending in different regional and national trade fairs and follow up visit
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Well planed advertisement through mass media to popularize the product
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Direct contact and co-ordinated campaigns with different marketing persons of the MULTIMODE GROUP and sending samples to different buyers of their respective areas
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Assistance from the local business chambers for getting information on different potential buyers
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Lobbying and advocacy with the ministry of banning Glass Wool & Rock Wool import or imposing high duty structure
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As far as possible minimizing the overhead cost and by lowering the prices of the products could be more competitive to the buyers
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Timely documentation and shipment
•
JMCL can try to make the raw materials stock and available for production purpose in the crisis time of the year. This step could be benefited the JMCL administration and buyers from the aspect of uninterrupted supplies to the clients.
•
Dependency on some buyers could be reduced significantly by developing more aggressive marketing and sale plan and to ensure products throughout the year. 5.4 Threats
•
At present there are another competitor exist in the market place, which produces PE Foam Product. As a matter of fact JMCL has been running its business without too much competition irrespective of whether it has lots of loopholes, problems and demerits. We came to know from different sources that one or two PE Foam manufacturing units are going to launch their products soon. In open market economy the existence of several competitors in the same market is very much acceptable. But the focal point of threat is that if those competitors figure out the demerits/problems of JMCL and hence launch their products without having the drawbacks, which JMCL has at a this moment, then there would be a strong possibility of losing the market gradually
•
Lack of initiative of the respective section heads and want of integrity among the staff due to failure of proper guidance
•
Intensifying competition from the importer of Glass Wool, Rock Wool, Air-bubble Foam, Padding Foam, Heat Bond, Felt, Thermo-cool items. The company lacks adequate and necessary information to develop new products as well as to provide training to the workers for making new items
•
Lack of skilled factory workers and turning to new professions
•
Raw materials are imported, supply/price situation changing depending on the changing global economic situation
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Influx of superior quality substitute products in the market place
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Production capacity of the company is not as much as to meet the ever increasing demand from the clients.
5.5 Marketing Mix of JMCL Product in Bangladesh Here the four P’s will be described in briefly: 5.5.1 Product Product Description of JMCL The basic product is two types: a) PE foam Sheet b) PE foam Tubes & Rods The above two product can be of varied sizes, colors (with specialty characteristics) and lamination. Then, these variants of the basic products can be converted in to a lot many products stretching to the domain of creative utility designing by the producers. a) PE Foam Sheet: The PE Foam Sheet can be produced at 0.5 mm to 5 mm in nominal thickness. The real thickness ranges around +20% of the nominal thickness. The width of the sheet can be 100 cm to 150 cm and lengths from 60 meters to 600 meters. They are handled in roll forms. The colors are • Basic White •
Fire retardant
-
Grey
•
Antistatic
-
Pink
•
Biodegradable
-
Green
b) PE Foam tubes and rods can be produced in various thicknesses. 2.2.4.2 Innovation & Improvement Polyethylene Foam is considered to be the finest synthetic foam in the world for its unique features and characteristics. But the PE Foam production facilities were not available in this region and such no specific market had developed for this item. It will be appropriate nice to say that Joongbo Multimode Chemicals Ltd. is going to introduce PE Foam products for the first time in Bangladesh. The most convenient and easy application of this creative item is in the Industrial Packaging field. Others field of application where this PE Foam product can substitute existing other materials on use are Construction, Insulation and Comforter and Sundry field. Eventually we can say that PE Foam is the latest innovation in the context of Bangladesh. The following comparisons between the PE Foam products and existing other materials will definitely support this. Industrial Packaging Field PE Foam is an ideal material for the packaging the various kinds of instruments because of high restoring nature and high-energy absorption. Being soft in feeling and beautiful in appearance, it is also suitable for packaging and as materials of high quality goods. Table 2: Use of PE Foam in Industrial Packaging Field SL. No. Expected End-Users Local existing Packaging Type of product (for Materials used Substitution) 01. Electronic Assembler Thick Paper, PE Film, Poly Cells Sheet & Bags T.V, V.T.R, Telephone 02. Office equipment & Thick Paper, PE Film, Poly Cells Sheet & Bags computer Mfr. Plastics 03. Plastic case Mfr. Thick Paper, PE Film, Poly Cells Bags 04. Various tiles, ceramics Thick Paper, PE Film, Poly Cells Sheet & Glass ware Mfr.
05. 06. 07. 08. 09. 10.
Musical instrument Mfr. Medical equipment Mfr. Shoes Mfr. Various film Mfr. Furniture Mfr. Carpet installer
Thick Paper, PE Film, Poly Cells Thick Paper, PE Film, Poly Cells Tissue Paper P.E Film, P.S. Foam, Wood Thick Paper, PE Film, Poly Cells P.U Foam
Sheet & Bags Sheet Dies Cut Dies Cut Sheet & Bags Sheet & Bags
Construction & Engineering Field PE Foam has a closed cell structure which is exceedingly suitable for anti-humidity, waterproof, sound proof and easy in handling. SL. No.
Expected End-Users
Local existing Materials used
Type of product (for Substitution) 01. Construction Company P.S. Foam, Rock wool, PE Film PE Foam, Sheets, Sheet, Bitumen Caotings, Lime Laminated Sheets. Terracing. 02. Wear Proofing Bitumen Felt. Lime Terracing PE Foam, Sheets, Contractor Laminated Sheets. 03. Pre-Fab Construction P.S. Foam, Rock wool Laminated Sheets company 04. Interior Company P.S. Foam, Rock wool Laminated Sheets, Rod 05. Partition Maker P.S. Foam, Rock wool Laminated Sheets 06. Road & Civil Working P.S. Foam, Rock wool Rod Co. 07. Duct Contractor Rock wool Tubes Table 3: Use of PE Foam in Construction & Engineering Field 2.2.4.5 Insulation Field PE Foam is an ideal insulating material because of high resistance to heat conductivity, damp proof and no water absorption. SL. No. Expected End-Users Local existing Packing Materials Type of product (for used Substitution) 01. Cold storage ware house Rubber, P.S.Foam Sheet &Tube 02. Container Manufacturer Rubber, P.S.Foam, P.U. Foam Laminated Sheets 03. Kitchen Cabinet MFR. Rubber, P.U.Foam Laminated Sheets 04. Air Conditioner Rubber, Glass wood, rock Wool Tube Contractor 05.
Boiler Work Co.
Rock Wool Tube Table 4: Use of PE Foam in Insulation Field
Comforter & Sundry Field PE Foam has excellent flexibility in its quality features including anti-static characteristics, rugged, durable, waterproof, high chemical resistance and decent appearance. Some typical applications are shown in the table belowExpected End-Users 1. Mats mfr. Gymnastics 2. Sports Bags mfr. 3. Life jacket mfr. 4. Fruit Producer
Local existing Packing Materials used For
P.U.Foam
Type of product (for Substitution) Laminated Sheets
P.U.Foam P.U.Foam Thin Paper
Laminated Sheets Sheets Net
5. Automobiles Interior Co.
P.U.Foam
Laminated Sheets
6. Cushioning Material mfr. For Sofa, Bed & Chair
Cotton Fiber, P.U.Foam, Rubber
Sheet & Rod
7. Steel Drum maker 8. Sauce, Pickles, Vinegar etc. Products
Rubber Thick Paper
Rod Net Table 5: Use of PE Foam in Comforter & Sundry Field
It can be proved by the above mentioned comparisons that Polyethylene foam is distinctive in its unique features and characteristics. Foam Sheet are deemed to be the most promising field of business for PE Foam products. Highly qualified and technically competent employees of the company are involved in a well structured system of brain storming, product development, product testing and continual development in order to develop the new product ideas, designs and to popularize PE Foam in Bangladesh. Characteristics of PF Foam • The main products PE foam are Plain Sheet, Foil Laminated Sheet. Plain Sheets’ market is suited basically in the old town i.e. Malitola, Bangshal, Naya Bazar, Siddique Bazar, Suritola, Nawabpur which is considered as the wholesale and retail market, PE Foil Laminated Sheets are widely used in the Pre-Fabricated Steel Structure Building Projects and a major portion in the Deducting Sectors. PE Planks are widely used in Mattress and Telecommunication Sectors. • JUMBOLENE is a closed cell PE Foam structure with aluminum Foil & without Aluminum Foil and is the perfect insulator day night with neutral reaction from physical & Chemical substances. •
JUMBOLENE is suitable for moisture and humidity resistance. Superb insulation against water and heat retains original structure and does no deflect.
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JUMBOLENE is safe and trouble free installation with excellent elasticity against heat insulation of all types.
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JUMBOLENE is fire resistance produced from clean, non toxic materials and recyclable.
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JUMBOLENE is cleanly installed under the roof of metal Sheet or asbestos, fast, easy and cheaply installed
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JUMBOLENE is used above the ceiling in the house of all types.
5.5.2 Price In interviews with trade sources, price appears to be the most critical competitive factor. However, unique and superior product features, effective promotion to the major building contractors and engineering and architectural design firms, technical assistance, and a reputation for excellence are also very important, and will definitely assume more weight as soon as end-users demand superior and certified product performance. The price of PE foam is competitive but still allows making a reasonable profit. The pricing strategy takes consumer threshold into account. The prices of different product ranges of JMCL
have been set through a process of calculating the costs of production, estimating the benefits to consumers, and comparing the products and prices to others that serves the similar purposes.
5.5.3Promotion: Essentially the Advertising and Promotion section of the marketing plan describes how JMCL is going to deliver its Unique selling Proposition to the prospective customers. Until now JMCL has made only sporadic unconnected attempts to promote its product. But its goal should be to plan carry out a sequence of focused promotion activities that will communicate with its potential customers. The message that JMCL wants to send to its target audience should be stated clearly. The unique feature of the product Jumbolene should be underscored in these messages to attract the target audience. For example, since the health hazard-free nature is the most unique feature of Jumbolene the product positioning should emphasize over this point. 5.5.4 Place PE Foam is distributed through sales representatives. Right now the company is following a direct distribution channel by which the product or service goes directly from the factory to the customer. The one stage distribution channel by which the product goes from the factory to the dealer and/or retailer and then to the consumer should also be introduced. Distribution Flow of JMCL
1. Market Market Demand
2. Company Sales Target
Customer
3. Market Order to Planning
Production
Dealers
Sales depots Through Planning/ Distribution Department
Dealers
Brief description On competitors Briefs from Swan Mattress The estimated size of mattress market in Bangladesh is TK 1 to 1.5crore. • Swan Mattress captures a significant 25% market share. • "Liyht and Tight" is the brand name for PE foam mattresses brought to the market by Swan Mattress. • Primarily the urban and the semi-urban people having the ability to indulge in style and comfort are the end users of mattresses. • PE foam mattress is lighter in weight and therefore easy to lift. • The cost of PE foam mattresses is notably higher than the other ones. Briefs from Engn. Jahidul Islam
• Roughly TK 400 crore(approximately) worth steel building projects are annually undertaken in Dhaka and its adjacent areas alone. • Approximately (5-6)%7 of the total project cost is incurred for the insulation purposes including thermal and acoustic insulation. • Pre--engineered Steel Building Manufacturers' Association of Bangladesh(PESMA Bangladesh) is an association of steel building manufacturers which represents 22 companies located in Dhaka. The members of this association share expert knowledge and care for each other's values. Activities include seminars, symposiums, conferences etc. • PE foam has an enormous potential in the insulation market which is merely a matter of grabbing the proper channels for effective distribution. • Current problems relating to product enhancements are solvable and/or amendable. • PE foam can easily beat Capita Raya, which is 3times costlier than PE foam although their features are more or less similar.
Eagle Mattress Market size is roughly of TK 3.6 crores. • Eagle captures 3/4"' of the total market. • Otobi, Akhter Furnishers, Legacy, Brothers and the Golden Teak are the major clientele. • Projected sales of PE foam mattress are TK 15lacs per month. • Weight is a major selection criterion for the customers. They seek for heavy-weight mattresses since traditional mattresses are all heavy-weight. The light-weight nuture of PE foam mattresses induces them to probe about the material. Eng. Nihar Kanti Mandol Following measures are essential to develop further market • Communication and demonstration of safety of PE foam • Increase the density to intervene in the new market (AC) • Pipe's quality should be improved (lamination with HDP) • Sector wise dealership will help capturing new market easily. Confidence Trade Ltd. • • • • • •
They import glass wool for AC duct insulation 60% of the imported amount is consumed and the rest are sold out. Their monthly consumption of glass wool is 1,000,000 sft. I container of glass wool is consumed per month. The length of these containers is 40 inches Each container contains 400 rolls Each roll contains 260 sft glass wool
Suggestions & Conclusion Suggestions • The strategy of the company should be demand driven based on customer research and market analysis.
• To know the market scenario of the market JMCL should conducts different study with the help of professional research firm aiming to get consumer insight, know the competitors position in the market & so on. • Separate budget for marketing and promotion activities should be allocated including projections about how much sales each of the activities would bring in. • A Unique Selling Proposition for JUMBOLENE should be set and used in its advertising messages. • An advertising slogan stressing JUMBOLENE'S environmental concerns should be created Technological up-gradation of the product quality is imperative for JMCL to enter into the untapped market segments. • Strategy vision of the company is to be set by clearly mentioning the time limit and responsibilities of the persons assigned in the process • More research and development efforts of people with proper technical background are needed for quality enhancement of the product. • Simple computer software needs to be adopted for including order status, financial Standings, buyer and country wise business analysis, number of customers, price verification of the items, and rejection quantity and trend analysis with impact indicators. • Efforts to engage Distributor/ Dealer(s) in the JMCL goal and objective should be made on maintenance of stakeholder relationship should be valued. • Proper logistics support is needed form top management to establish this business plan a successful one. • Management should avoid the tendency of delaying while taking any important decision • Faster support is needed from the management in order to compete in the market place. • Product Quality such as thickness variation, non-uniformity of cell, rough surface of the sheet, waviness in the texture of sheet needs to be improved. • Product delivery system should be changed and improved • Product Engineering is needed to stay alive in the market place for better customer service. • Just in time delivery system is needed for better customer service. • Proper packaging for JMCL products should be designed and developed in a planned manner such as each and every roll should be covered by polythene and the respective roles of the products should lack with quality fabrics as sealed with JUMBOLENE logo. • A product thickening machine must be set in the production line in order to compete in the market and to boost up sales volume. • Enlistment of a Transport service company is a must in order to deliver goods to the valued client • New policies should adopt with the existing policies following the competitor’s activities. If any odd situation arises then in some cases existing policies such as pricing, discount policies, customer service pattern, delivery system, credit policies etc. should be change. Conclusion JMCL is currently producing different items for the local buyers the sales of which are essentially driven. Unless quality with regard to fire retardant property, low water absorbing capacity, qua li t y aluminum foil, shorter delivery times, delivery on time and other non- price factors, market expansion of Jumbolene would be difficult. The company should take immediate initiative keeping in mind the fierce competitive environment and economic and political turmoil of the country. The fact that cutting edge technological advancements are ensuring in a rapid pace poses dire pressure to take defensive strategies to survive and to shield its own competitive strengths. Outperforming rivals in controlling factors that drive costs is also imperative for proactive managers of JMCL. Joongbo Multimode Chemicals Ltd, needs to improve its capacity in all respects to become a leading marker player and it should be innovative and scientific from the very within. Revamping overall value chain and tailoring a clear strategic vision are keys to achieve these objectives. Bibliography 1. www.google.com
2. www.wikipedia.org. 3. Brochures of Multimode group 4. www.multimodegroup.com