Bangladesh Jute Industry The jute industry in the public sector, by virtue of its location in East Pakistan, became the property of Bangladesh after independence in 1971. Pakistani mill owners (about 68% of the total loom strength) left the country, leaving the industry in disarray. Abandoned jute mills were subject to heavy looting. The new government of Bangladesh had to take up the responsibility of rebuilding the industry. By a nationalization order, about 85% of industries, including all jute mills, were nationalized.
Bangladesh Jute Mills Corporation (BJMC) was formed to manage and look after all the 73 jute mills having 23,836 looms at that time. At one stage the number of jute mills under the jurisdiction of BJMC went up to 78. BJMC had to resurrect the industry from a ruined position. Immediately after liberation, it became very difficult to solve problem of financial hardship of the jute industry because financial institutions were not working well. Frequent power failures and power stoppages also compelled the industry to suffer heavy losses in terms of production and foreign exchange earnings.
In addition to these problems, the short supply of spares, labor unrest, wastage in production etc. also shook the industry severely. For jute industry of Bangladesh, the first two years after liberation was the period of reorganization. The government offered cash subsidy to the industry, which amounted to Tk. 200 million annually. The annual cash subsidy was reduced to 100 million since 1976-77. Thanks to this policy and periodic devaluation of currency, Bangladesh could retain its position of a prime exporter of jute goods in the dollar areas of export.
The industry earned profit in 1979-80, when the subsidy was withdrawn. By December 1979, BJMC had 77 jute mills, two carpet backing mills, and two spare parts producing units. Jute is abundantly grown in Bangladesh, amounting currently to about 1 million tons a year, which constitutes nearly 40 percent of the world‘s jute production. Jute has a long historical role in the socioeconomic development of Bangladesh. Once, jute was known as the Bengal fiber of Bangladesh. It provided considerable employment opportunities to the country‘s work force as well as foreign currency. For example, Page 1 uring 1975-1979, exports of jute and jute-products accounted for 73 percent of Bangladesh‘s total exports. Over the last two decades, the traditional uses of jute have—due to the emergence of synthetic fibers—declined drastically. Today, jute and jute products amount to less than 5 percent of Bangladesh‘s total exports. Jute Carpets Jute Carpet one of the three major items produced in JUTE mills of Bangladesh. The other two items are hessian and sacking. Production of carpet from jute increased in Bangladesh with a decline in the demand for sacking due to increased use of paper bags and bulk handling.
In 1951, woven carpets and rug making activity in East Pakistan was pursued in 674 enterprises, of which only 3 were power driven, which implies that carpet making was basically a domain of cottage industries. The government established some jute mills in the 1950s and the mills bailed 130,000MT of jute in 1955-56. The output rose to 561,000MT in 1969-70. The industry suffered during the WAR OF LIBERATION and the production fell to 315,000MT in 197273. The production gradually increased after rehabilitation and rose to 577,458MT 1981-82. Only a few jute mills converted sacking looms into carpet looms.
By 1980, there were seven carpet mills with a total capacity of 65,100MT. Some new mills were established later and the volume of carpet production was 425,812MT in 1998. Jute Carpet Industry Becoming Extinct The rusting machines imported from Belgium have been silent since 2003, when Bengal Carpets, a sister concern of Bengal Group and one of the country’s last mass carpet producers, closed down its operations. Like so many industries linked to jute, the decline of the Bangladeshi carpet industry has been stunning. Only 10 years ago the export of high-end jute carpets was worth around US$8 million a year.
Now machine carpet manufacturing in Bangladesh is dead, with no producers left in the country, he added. Others shared the same fate as Bengal Carpet, with losses forcing companies such as Saleh Carpets, Ismail Carpets and Zarina Carpets to close down during the past decade. The three state-owned carpet manufacturing factories, Amin Carpet, Dhaka, Baghdad Carpet and Furat Karnaphuli Carpets also failed. Page 2 Several factors killed the carpet business, according to those who worked in the industry. Mismanagement and stiff competition from cheap synthetic carpets rapidly undermined the competitiveness of jute products.
But the industry itself made mistakes, not investing in new product ranges, said Sudripta Roy, secretary general of the International Jute Study Group. The obsolete designs are also responsible for losses by the carpet industries. The manufacturers and patrons failed to develop fashionable designs to make the carpets more attractive. Domestically, even the government seemed lukewarm in its support. Previously, it was almost mandatory that government offices used local carpets as there was an official ban on use of synthetic carpets, but this system is not in effect any longer.
Page 3 Bengal Carpets Limited Re-launch Bengal Carpets Limited (BCL) is going to be one of the most popular carpet companies in Bangladesh once again. It will be a partnership-based company, formed by five individuals having 20% shares each. Each of the partners of the company will be addressing a managerial role in the organization and will be working as a team to take any sorts of decision regarding the execution and development of the company. The scope of business of BCL will be to deliver quality carpet to the consumers.
There are many local jute companies in this country regardless of their productquality they provide and price they charge. BCL will offer the consumers great quality of carpets at a premium price. We as entrepreneurs see immense opportunity in this sector. Although, from last few years this sector was becoming a dead industry sector of Bangladesh, recently Bangladesh Government has started to take necessary initiatives to re establish this sector. As local jute company of our country, we will be more concerned about a safe, environment friendly and affordable jute products (Carpets) to our consumers.
The per capita income and living standards of people of Bangladesh is also upgrading fast which influence us to take decision to start this type of business with jute. So we are hopeful about the success of BCL as a re-launch brand. Mission We are not only taking the brand as an economic and industrial challenge, rather it is also a political affront, a fight for dignity against savage globalization and most importantly, we are going to produce our products by following environment friendly procedures so that our products will gain popularity as an environment friendly jute brand through out its target market.
From the above mission statement, it is clear that BCL has taken the project as a challenge to become one of the market leaders in the jute product industry within 1year time frame. For this purpose from now we shall give its most effort in this segment and is trying to build up a concrete marketing strategy to promote the Bengal Page 4 jute products successfully and fruitfully in Bangladesh initially and to the international market in the near future. Hence, BCL has its unique qualities that founded on engagement and sharing.
It will always remain in an action that is not only humanitarian but also humanistic, placing people ahead of profits. We believe that satisfaction of our esteemed customers will be the ultimate result of our company. We will be driven by our commitment to continuous quality improvement and to exceeding all of our customers’ expectations. And thus, maximize customer and shareholders‘ value. But we have a plan to operate our whole business procedure into a very environment friendly way. Vision Natural fiber carpets are environmentally friendly, made from a sustainable material.
Jute carpet is the softest and least durable of the natural fiber carpet and rug options, but its softness is unbeatable. Jute is also used as carpet backing and padding for carpets. Jute carpet is the softest of the plant fiber carpets, soft like a cotton blanket. Its economical carpeting that comes in a rainbow of colors, though tan to brown is its natural color range. Jute is the least durable of the plant-fiber carpets, is prone to stains, and is slippery when traffic worn and it’s easily damaged by direct sunlight.
The vision of Bengal Carpets Limited is to be a model of excellence in establishment of a successful brand for the jute made industries of all over Bangladesh initially and then to the international market. We will be widely recognized as the premiere producer of quality jute products. Page 5 Corporate Address Plan The main office of the company will be situated in Uttara and the factory will be located in Nrayanganj. The structure of the company will be relatively flat. Since it is going to be a large organization, the office space and number of employees will be kept relatively higher.
The company will start with an initial debt-equity ratio of 60%. The main asset of the whole project will be the modern equipments and machineries for production activities, quality raw materials that mean jute fiber and other necessary elements such as design of the carpets, color etc. Moreover we need a very organized and skilled human resource for both managerial level as well as lower level. Most importantly, lower level or floor level workers are vital element of our industry as with out them our actual production activities will not be possible. Product Overview
Jute, of the genus Cochorous, is made from the inner meat of the plants, which thrive, in damp heat, and the climatic conditions obtained India and Pakistan. It takes about four months for the plant to grow to 8-12′ height and shed its leaves, at which time it’s harvested, bundled, soaked so the fibers can be separated from the stem, and then dried in the sun for two or three days. Then the fibers are run through a variety of mechanical steps that turn it into a yarn suitable for weaving. Jute is most commonly grown and woven into carpets in West Bengal in India and Bangladesh.
Because of its more delicate nature, jute carpeting is better suited for use in sitting rooms and bedrooms, rather than heavy traffic areas like entryways, halls, and living rooms. When it’s mixed with other fibers, like wool and linen, a more durable product results, one that can be used in any room of the house except the kitchen and bathroom. Jute carpet backing, often of felt, helps stabilize the carpet so it doesn’t stretch or change shapes, helping its durability a bit. Page 6 Our Product While synthetic carpets have a lot of practical advantages, you can’t beat the beauty of the ‘natural’ carpets.
They are something else altogether. Woolen and silk carpets have been used to embellish home interiors from ages. There are many other natural fibers that are used in carpet making. Fibers are the first thing we shall look into when we decide to go in for a carpet. Other considerations can come later. Jute Jute is the softest among the plant fibers. It comes in natural colors ranging from creamy whites to browns. It can be dyed or bleached to get other colors. Jute carpets are very economical. Although jute makes an excellent base for inexpensive handwoven Persian kilim (rugs), they are not durable.
Jute is prone to staining. It is advisable to use jute for low and medium traffic rooms like bedrooms and guest rooms. Jute should not be used on stairs because the surface becomes slippery with wear. Jute is particularly sensitive to direct sunlight; while exposure to sunlight speeds up deterioration of any plant fiber, in jute this process is hastened. West Bengal in India and Bangladesh are most demanding markets for jute carpet. Jute Carpet With its soft silky luster, jute is a fine natural fiber.
It is best suited to areas of the house such as sitting rooms and bedrooms, rather than the more heavily used areas such as halls and passageways. Jute is a very versatile, adaptable yarn, which weaves well, looks and feels good and comes in natural tones. It can also be mixed with wool and linen, enabling more color variations, and improving durability, so the jute/wool/linen mix can be used throughout the home except for in kitchens or bathrooms. The natural jute shown here comes with a felt backing, in a herringbone design, and the mixed fibers are in 5 colors in a ripped design.
All are in 4-meter widths, and can be fitted on underlay and gripper, stuck down directly to the floor. Page 7 Start Up ? Getting Trade License: For starting the business, a trade license will be required. Bengal Carpets Limited (BCL) will have to acquire a trade license from the Bangladesh Government. A certified copy of the Articles and Memorandum of Association of the Company, a copy of the certificate of incorporation, statement of bank solvency of the company, and a TIN (taxpayer‘s identification number) Certificate of the company are the other documents needed in this regard. Registering for TIN: Registration with the concerned taxation authority (Deputy Commission of Taxes of Company Circle, Zonal Taxation Department) under the National Board of Revenue (NBR) and procure a TIN (Tax Information Number) for the new company must be acquired to conduct business locally and legally. ? Buying Raw materials: For the successful startup of the operation first of all we will need necessary raw materials. We will buy superior qualities of raw materials for producing premium quality carpets.
Our raw materials will be imported from Tibet, Kashmir, Iran, Italy, India, China, Brazil, East Africa and Sri lanka. As we have targeted the upper class customers for our product, we will use the supreme quality of raw materials, which will be expensive but ensure the higher quality. ? Renting Office-Space: Then we will rent an office to operate our corporate activities regarding our business. We have planned to rent an office at Uttara as it is in the one of the aristocrat region of Dhaka city and recently one of the major commercial areas of Dhaka.
The main factory for the production activities will be bought in Narayanganj. The reason for choosing factory space outside Dhaka is the fact that land price is lower there and our office will be very close to the production fields of jute. ? Hiring Employees: Lastly we will have to hire suitable and dedicated upper level employees to fill up the positions in our corporate office like: the managerial positions for every department such as marketing, finance, human resource management, operation, production as well as lower level or field Page 8 evel workers for our production activities who will do the major production activities of our company. ? Getting Distributors and Suppliers: After doing all the above tasks we will have to look for distributors and suppliers to spread out our products through out the country. After that we can commence our operation and eventually we shall make a move towards international markets after making a successful brand name throughout Bangladesh. Strategic Goals and Objectives and building Brand Equity We believe that producing jute products is a serious business and a challenge as well.
An entire community will trust us, buy our products and pay us, to get full satisfaction of qualities and get the experience of our carpets, which will help us to build a strong brand name towards the entire jute product market. So we have to take the responsibilities of over all society as we have targeted to prepare our products as environment friendly; so we have commitment to protect our environment rather harming it through our business. We shall work vigorously to ensure the peace of mind of those who will entrust us and consume our product.
Quality of product as well as contribution of environmental sustainability, above all, will be the cornerstone on which we shall build everything else. ? Creating awareness among consumers: BCL is going to be one of the prominent jute product companies of Bangladesh who has targeted the premium class of consumers. It will be the pioneer in this sector in the sense it will not operate under the banner of any other particular brand rather; we are recreating the magic of our previous heritage.
So this is going to be a new concept for people to know, as there are companies who are producing jute products only for doing business. The distinction among them and us is that we are not only doing business but also building a specific brand and also will take initiative to establish it in the market. Page 9 To create awareness among our target consumers we first need to educate the community about it, which means we have to inform our consumers that we are a specific brand of carpet as well as our vision, which is to be environment friendly.
Through advertisements (TVC, Radio, Newspapers), leaf-lets, banners and arranging seminars, news conferences etc we shall try to create awareness among the general people of different districts basically of Dhaka city as it is our capital city about the distinctiveness and main features of our product. ? Being the top in quality: The primary objective of the company would be to provide a superior quality and environment friendly product at an affordable price to our customers. The existing jute product companies are all not that much concerned about their product quality as well as consumer‘s health.
We can assure our product‘s supreme quality, as we shall use the best quality raw materials, which have been described, in our product details. Although we have to charge comparatively high price than our competitors, we shall be concerned enough to keep our commitment to supply the best quality carpets in the country. So, BCL will try to be the market leader of jute carpet industries by ensuring the best quality of carpets with an affordable (premium) price. ? Being socially responsible: We at BCL believe that ensuring quality of the carpets is not only a business act; it is a good way to serve the society also.
As in our present times, per capita income of our population is increasing day by day, the affordability of our customers is also enhancing. So, we have the responsibilities of this group of people, their health and most importantly their living environment. On the other hand, from our operation activities we can serve the economic condition of the lower class of people who will serve us by doing the main production activities. We shall be able to contribute to solve the unemployment problems of our society. Thus, BCL will be able to act as one of the socially responsible company of Bangladesh. Page 10 Being Environment friendly: In our company mission and vision it is clear that one of our major objectives is to use natural fiber and technology to produce natural and environment friendly carpets. As only profit earning is not our strategic objective, we will operate our business activities in such a way, which will be a model work that any jute industry can operate their business by not doing any harm to the environment. So, we will import and use such equipments from developed countries like: Germany, Italy, and Japan in our production activities, which will give us assurance to not affect the environment.
Besides it, we have planned to establish our factories in the place, which are far across from the living area of general people. We also assure safe waste dumping system that is not harmful for the water resource. ? Achieving higher growth: In the first year of operation one of the major objectives of BCL will be to capture at least 30% market share. Without growing up we believe we cannot provide services at an affordable price and we cannot serve the society better. We will try to maintain a 30% growth pattern in the first three years of operation. Being the market leader: We believe that the current state of market allows BCL to become the market leader within 3/4 years time. The market leadership would be in terms of market share hold. Our other competitors are all working only to operate a higher profitable business not for establishing a unique brand of jute carpets that can represent our country to the international market, as BCL will be outsourcing the carpets to other countries in near future. As a result BCL is operating with a bigger market in target.
Even though BCL will be the pioneer in this sector in the sense of making brand of jute products or specifically carpets, the cost attached to it will not be a concern as other indirect competitors are already operating in the market and we have targeted the higher or upper class customers who have affordability to pay higher price for this sophisticated carpets. Page 11 BCL is not out to just make a quick buck. We will make sure that our consumers will be in complete mental satisfaction in terms of qualities and we make sure they‘re not paying excess for our product.
Besides these we will be very much conscious about our promise towards the contribution in the environment. All our objectives will revolve round our mission and vision. To comply with the mission and vision, BCL has planned to observe the industry pattern very closely, so that it can be very flexible whenever needed. Page 12 Branding What is a Brand? Branding is fundamental to business success. Brands are economic assets and must be managed. The most powerful ideas are simple, and brands adhere to the same rules. Brands, after all, live in our heads and our hearts.
But ultimately, brands are value generators for any business. From the traditional perspective, brand is a name, a term, a logo, a symbol or to identify a products of a manufacturers which is fairly close to the traditional perspectives. According to David Aaker ? A brand is a distinguishing name and/or symbol intended to identify the goods or services of either one seller or a group of sellers and to differentiate these goods or services from those of competitors.? Still a big question remains that why people prefer certain brands than others?
Due to the typical responses like quality, recognition, trust and symbolic value, the consumers still prefer some brands. But the recent understanding is that brand is not only the name, a term, a logo or a symbol but also it is the understanding of a 360 degree angle which includes the understanding of the customer, the marketer, the employer, the employee, the finance manager, the accountant and the distributer or the middleman. To the customer brand is also a risk eliminator and also a source of value. Product characteristics that customers notice for risk elimination are – ? ? ?
Qualities noticed by contact Qualities noticed by experience Credence qualities that cannot be verified For our product Bengal Carpets, customers can notice the qualities by contact. When they will touch the product, they will notice the quality. It will be soft and will be made by the fibres which are very good in quality that is collected by our suppliers. Page 13 With its soft silky luster, jute is a fine natural fiber. Jute is a very versatile, adaptable yarn which weaves well, looks and feels good and comes in natural tones. It can also be mixed with wool and linen, enabling more color variations, and improving durability.
Functions of Brand Brand doesn‘t work for all types of products, nor at all times, nor at all regions. It works when customers lose traditional reference points. There are several functions of brands for customers. Identification, Practicality, Guarantee, Optimisation, Characterization, Continuity, Hedonistic, Ethical ? Identification- It is clearly seen and quick to identify. Our product is clearly being seen and our customer will be able to easily identify. ? Personality- We are going to identify ? Sophistication? with our line of carpets at offering.
As we are charging a premium price, it is obvious that our carpet is targeted to the upper-class. ? Guarantee- Our consumers will be sure of finding the best quality as we are going to produce our product with the best raw materials imported from different countries and it will be soft and environment friendly. ? Optimization- When our customers will buy the product then they will have the satisfaction that they are buying the best product. We are going to offer the softest carpet in Bangladesh. ? Characterisation- Our product will have its own image which will make it different from other carpets. Durability- Our consumer will have satisfaction when they will use our product. As a result they will become brand loyal. ? Hedonistic- Our customers‘ satisfaction will link them to our brand, with its logo and to its communication. ? Ethical – we are using natural fibre and it is environment friendly. So it will have a relationship with the society. As we are committed towards the society and also to our employees and customers. ? Key Insight – Our line of carpets will not only make someone‘s house look social, but also would pose the family members as someone who belongs to the elite class of society.
Page 14 Types of Brand 1. Corporate brand: The Corporation‘s name is used to brand the individual product. 2. Parent or umbrella brand: The original brand in a family of branded products. 3. Sub-brand: A brand extension, leveraging an association with the parent brand 4. Ingredient brand: Component of another product branded to the consumer. 5. Private label or Control label: Brand ? controlled? by retailer or distributor and usually only available through their channels. After describing the five types of brand, we can categorize our brand (Bengal Carpets), which is corporate brand category.
Fig: types of brand Page 15 Brand Pyramid Fig: brand pyramid ? Brand vision and Purpose: Our brand vision is to use natural fibre carpet as a substitute of synthetic fibre carpet which will be durable, environmentally harmless and will ensure the greatest comfort to the customers so that customers will find out ultimate comfort under their foot. ? Brand Values: To create a strong value of our brand we need to create strong association. We can build strong association by products durability, creative design and innovative style, bio-degradable attributes, environmentally friendly and reusable features.
These associations will create strong brand value to our customers. ? Brand Tone: Every brand and logo has individual tone and personality. Through this a company which will be able to create an image in the customers‘ mind. Our brand and logo also have their tone and personality. Our brand is Bengal Carpets. Here the ? Bengal? word tries relate to the mother nature of our country as ? BANGLA?. And ? Carpet? means carpet. These words together try to say that our product carpet is made by natural jute. The logo of our product is consist with the first latter of our two word brand name.
Page 16 Product concept development Attractive ideas must be refined into testable product concepts. A product idea is a possible product the company might offer to the market. A Product concept is an elaborated version of the idea expressed in meaningful consumer terms. To develop a product concept we have to identify some information about our product. Like: ? Who will use this product? The Product can be aimed at upper class people who are very much conscious about the premium quality and stylish product. ? What primary benefit should this product provide?
Our product will provide quality at a premium price and the attributes that no other carpet brand provides in Bangladesh. By answering this question a company can form several concepts. Product Concept: Natural product which in made by natural components like jute, which is our major component and other components which will imported from different countries. Our product is exclusively made for a specific target group which is upper class people whose monthly income is Tk. 75, 000 and above. Page 17 Attributes of the Brand Brand attributes is very important elements of establishing a brand.
Brand attribute has two side first one is rational and second one is emotional. While consumers screen the rational elements of quality and other compelling product attributes as part of the buying process, the real decision to buy is taken at an emotional level. If we look at the powerful brands around the world, we can see that they swing consumers highly to the right, making their decision very emotionally driven. In fact, the great brands build tremendous emotional capital with their strategies. That‘s why a marketer needs to translate its ration attributes to emotional attributes in order to win and keep customers.
The attributes of our brand given below: Our brands’ rational attributes are basically the Points of Parity: Quality Premium price Natural Our brands’ emotional attributes are basically the Points of Difference: Superiority with its quality (softest carpet) Purity with its natural components Customization After sale service Innovative Decor solutions Page 18 Product Differentiation A marketer needs to differentiate its product from its existing competitors by product form, feature, design, style, performance, etc. because nowadays consumer wants innovative and superior product.
So it is crystal clear that a products success is depends on the effective and innovative product differentiation process. That‘s why a marketer needs to be very careful about the product differentiation. We will differentiate our product (Bengal Carpets) from our competitors by Product differentiation tools. Form Differentiation: Size: we come up with various sizes in the market. The available sizes are: ? 8‘ to 10‘ ? 9‘ to 11‘ ? 13‘ to 14‘ ? 15‘ to 17‘ ? 18‘ to 20‘ ? Over 21‘ Along with these sizes we are able to deliver customized size according to our customers‘ order.
Shape: Traditionally most of the carpets are square shapes. But we provide different size with different shape like Chinese circles, Chinese half-moons, Chinese octagonal, Chinese runners, Tibetan Octagonal, Tile carpet and also square shape carpet. Color: The collection includes carpet that offer striking one color products using cream, neutral, black or red palettes. These bold colors use textured designs to enhance their luxurious feel and are an ideal choice for anyone looking to pull a room together using a particular color theme.
Our entire color line can be coordinated to ensure that different styles can be used together while maintaining aesthetic continuity across a production process. Page 19 Features Differentiation: Being the first to introduce valued new features is one of the most effective ways to compete. We mainly differentiate our product as “100% natural jute” from our competitor as they use substitute of jute in their product like cotton etc. Our product features are: ? ? ? ? ? ? ? ? ? Natural Environment friendly Softest carpet in Bangladesh Attractive design Modern style Thin carpet Durable Strong Free from pollution
Flying Carpets- The Modern Seating Solution As a child, who didn‘t like to sit on the plush and decorative living room carpet and pretend it could fly? As much art as furniture, ? East meets West‘ is surprisingly simple, stylish and elegant. It also suggests opportunities for reusing old rugs that might otherwise be threadbare and ready for retirement. The designs could also be integrated (assuming they do not compete) quite interestingly with other interior design decorations. The only real question is: what pattern would you want for your own home?
This unique and innovative seating solution will provide to be an extremely successful move according to us. Page 20 Quality differentiation: We will manufacture the industry’s finest carpets. Our Multiple Yarn Infusion (MYI) technology which we bring from foreign country creates the most exciting and complex textures available today while keeping prices competitive. The MYI system uses multiple ends of yarn in each needle. In addition to great aesthetics, MYI generates exceptionally high tuft densities. As a result, our Carpets wear extremely well.
We use foreign concept in modular tiles — frame technology®. This technology produces modular tiles with an ultra-sheared border on any or all edges. It gives the designer flexibility to make each installation unique — whether a structured pattern or a large super graphic. This frame technology® is a proprietary technology that not only gives depth, richness and added dimensionality to the surface but creates a tile that seams better due to the ultra-sheared border. From the best comes the best. Every aspect of our business, from raw materials to customer satisfaction, is held to the highest standards.
We use twisted heat set yarns to enhance the durability and aesthetics of our products. Every yarn of our carpet is treated with a fluorocarbon application to help resist soiling and facilitate effective carpet cleaning. We take its obligation to the environment seriously. We will have the most efficient dying processes in the industry. Every aspect of our manufacturing process will be scrutinized to eliminate waste and reduce our impact on the environment. From shear lint to steam heat, everything that can be reused. Our products will carry CRI’s Green Label certification and many contain recycled fiber.
Our entire line of products is rapidly renewable or readily recyclable. Through our products and manufacturing techniques we are taking an active role in steering the industry towards sustainability. So using this technology we will assure the quality of our product which will differentiate us from the competitor. Design differentiation: Style and design are very important part of a product. Style describes the product‘s look and feel to the buyer. And design offers a potent way to differentiate and position a company‘s product and service.
To differentiate our product from our competitors‘ product we mainly offer customers wide verity of designs like Persian/ Afghan/Turkish design carpet, Pakistani Bokhara which is in plain design, Indian Page 21 jaipur ganzi, super rajbik design and mahal design. Premier superwashed floral and royal sephoi under Chinese design. We also have sephoi design, dragon design, floral design, plain cream texered design, mystic collection, natural tone and modern gabbesh. Under these designs customer will find their favorable design and they could differentiate with competitors design.
Also our tile and broadloom production is completely integrated. Every tile product has a broadloom counterpart of the exact same style and color, and all of our broadloom products that look good as tile are offered as tile. We have styles for every type of project from executive offices to bed rooms. Portrait Graffiti- Wall Carpets: BCL is going to be the first of its kind to come with this innovative form of carpeting style. What we plan to do is design the carpets based on the facial profiles of the consumer. If the customers are willing to paste their faces on the carpets to enhance the look of their houses; they could easily do so.
Page 22 Website Customization Services: BCL will also be opening up a home internet website of its own naming www. bengalcarpets. org. With the help of this internet technology what we are trying to do is build our brand equity further, by letting our customers customize their color and design preferences according to their taste and coming up with a custom made design of their own carpets online. They can order online through credit card services and BCL will be providing home delivery of their custom-made carpets based on the duration of time needed to complete their orders.
This will eventually help BCL to control their inventory costs and build a better customer relationship at the same time. Image differentiation: Our product slogan is “Bengal Carpets” – the name of quality, natural and environment friendly flooring.? So we want to differentiate our product from our competitor by this slogan. Page 23 Co Branding with OTOBI: OTOBI Limited is the leading furniture manufacturing company in Bangladesh. Laminated board furniture, tubular furniture, sheet metal furniture, and plastic furniture are major categories OTOBI produces.
What Otobi is best at is providing the ultimate in house decoration solution with its wide range of ready-made furniture. Co-Branding with OTOBI should prove to be extremely beneficial as OTOBI is renowned in house furniture provider in the country. Our carpets along with Otobi‘s in house furniture will be on display so that we also capture the market of those people who are seeking to acquire a complete home decor solution. Service Differentiation: Bengal Carpets limited will not only sit back after selling the carpets with the customer; that‘s just one part of building the customer relationship.
What we plan to do is provide them with the after sale services. The plan is to offer our customers home delivery after the sale, but that‘s not the end. We also plan to give them a free ? carpet wash? for option, twice, anytime they want after the sale has been done. Page 24 Target Market Segmentation of market Market segmentation is very important and essential part of a brand. An effective segmentation can make a successful and powerful brand. Because by the segmentation a marketer can identify target consumer, target area etc. of a brand and these things are very essential for establish a brand.
The major segmentation variables are Geographic, Demographic and Psychographic and Behavioral segmentation. We want to segment our market under the following segmentation variables: Geographic Segmentation: Geographic segmentation calls for dividing the market into different geographic units such as nations, states, region, cities or neighborhoods. A marketer can choose few geographic areas, region or cities for there brand. Because based on the geographic segmentation a marketer can identify its total market size, target market etc. of their brand.
Based on geographic segmentation our brand segmentation is: Region: Bangladesh Density: Specific class (upper class) of target people At present we are not interested to commercialize our product in the international market, that‘s why we choose Bangladesh as our target region. In the Bangladesh our concentration will only be on the urban area that means specific class of target people. Page 25 Psychographic Segmentation: In psychographic segmentation, buyers are divided into different groups on the basis of lifestyle or personality or values. Because a persons buying and consuming decision depends on there lifestyle, personality and values.
That‘s why marketer needs to identify consumer‘s personality, lifestyle and there value for the new product. Based on Psychographic Segmentation our brand segmentation is: Lifestyle: Upper class oriented Personality: Savor and sophisticated We produce our product for those who are upper class, who think that supreme price gives you the superior quality of product and those who are belong to upper social class. We provide the brand personality based on target consumers‘ personality, because our product personality is natural and sophisticated consumer will be those who are savor and stylish.
Positioning Positioning is the act of designing the companies‘ offering and image to occupy a distinctive place in the mind of the target market. So it is very important things to a marketer to do positioning of the product properly. Here we have done two types of positioning for our brand: ? Product category positioning ? Brand positioning Page 26 Fig: Brand Positioning Brand Positioning: Brand positioning is very important thing for a marketer. Because a marketer can identify the competitors brand position in the existing market from the brand positioning strategy.
By this positioning strategy a marketer can understand that at where it‘s brand will be positioned. There are some existing carpet brands in the market who are our main competitors. These are: Shahi Carpet Shyamol Bangla Jutex Ltd. Mask Associates (Pvt. ) Ltd. Sadi Floor Covering Ltd Alam Fiber Impex Page 27 Brand Positioning by Attribute Communication is a very important process for a brand. Because brands‘ success is depends on how the brand communicate with the consumer. Brand communication is depends on brand personality.
A brand has a personality constructed around the words like ? natural? , ? friendly? and ? fun-loving? it can be communicate this well This kind of communication is call ? caring? attitude of a brand or a brand can communicate as businesslike attitude. It depends on what business is your brand in? That‘s why a marketer needs to give more attention on the brand communication. Our brand will communicate to our target consumer by the personality of “100% Natural Component? but it will be a substitute of some artificial product like plastic floor mat, carpet made by synthetic materials.
Our product is made by natural components like jute, which is our major component and other components which will imported from different countries By this personality we will try to build an emotional communication process with our target consumer. To communicate our brand our statement will be:To upper class, sophisticate consumers who are always conscious about quality and uniqueness of the product, ? BENGAL FIBRE? is the one that gives them the best quality and individuality of the product because it assure them to provide the premier quality product.
With ? Bengal Fibre? , consumers always stay ahead from others. Brand Management Contract Brands give meanings to the products. Brands become credible through persistency and repetition. Once a brand has engaged in a contract, it has to assume all of its implications and fulfil its promises. So, sometimes good slogans can be rejected as a contract is a binding. So if the managers promise something then they have to provide Page 28 that promise to the customers and if they fail to provide that promise then it will directly affect to the brand image.
The Brand Contract requires covering all the functions of the organization like R&D, production, methods, logistics, marketing, finance. The brand management team do some works like they? Monitor buyer needs and expectations ? React to technical and technological progress ? Deliver both Quality and Quantity simultaneously ? Control supply Quality and Quantity ? Distribution management ? Give meaning the brand and communicate it ? Both internally and externally For our product – Bolden Carpet, the slogan is ? The name of quality, natural and environment friendly flooring?.
From the slogan we can get the idea that we are promising to our customers that we are going to give them natural and environmental friendly product with high quality. For that our brand management team is always control the quality and the quantity of the raw materials. As we are bringing the raw materials from the foreign country and we are charging premium price, so we need to control the quality strictly to fulfill the promise of the slogan and ultimately we will fulfill our contract. Page 29 Brand Building To build a brand there are eight steps.
Fig: Eight steps of brand building ? Understanding – It is very important to understand the brand. To understand the brand we need to understand the core values and core tones of the product. Our core value is that our product is natural as it is made by all the natural fiber and it is environment friendly, so, eventually it can become the substitute of the artificial product. ? Justification – Sometimes we can‘t communicate the brand attributes due to brand noise. If the brand values do not match the brand vision then it can create the noise.
Our product values match with our vision as we are going to produce environment friendly, natural products and which is also softest. ? Team- We are going to form a team by taking different individuals from different departments to make a cross functional team. These people has come up with different ideas like what will be the size and Page 30 color of the carpet, what the consumers want, what will be the price and others. Our team suggests that the target customers are middle upper class who has a monthly income of taka 50, 000 and above. ? Research- Here we have evaluated the ideas that are given by our team.
We have done the research to evaluate the ideas. In our research we have found that our consumers want quality and sophisticated products and they are also ready to pay higher price if it differentiates from others but we have found that the people who have their income level is monthly taka 75000 and above are ready to pay for our product. ? Positioning- From our research we have gathered all the information and we have come up with the positioning. Our target market is upper class and they have a month income level of taka 75000 and above. Internal consistency and communication- As we have come up with the positioning and our product is differentiated product, so we need to communicate this information internally with our employees. As we are offering differentiate product and our target customers are upper class that is why we need smart, educated and extrovert sales people who will have the ability to sell the products, they also need to wear formal outfit which can also create a good impression on our customers. ? Marketing communication – we are going to give our advertisements on billboards in premium locations and in print media like the newspapers, magazines.
Our consumers are upper class and it is differentiating product. ? Tracking- time to time we are going to track the market that whether any problem is arising or not. If any problems rose then we can take steps to control those problems. Page 31 Brand Awareness Brand awareness is typically discussed in terms of aided and unaided awareness. Initially we want to aware our consumers by aided awareness, so that when they are shown a list of product name from the carpet category then consumer can at least remember the brand. Eventually we want to make our brand ? Top of mind?.
So that when they are shown a list of product name from the carpet category the first name that come to their mind is ? Bengal Carpet.? Brand preference and loyalty The higher the consumer prefers the brand means that they are more loyal towards that brand. Here loyal consumer had more attachment towards the brand and the psychological cost is more than monetary cost. Our consumer will be loyal towards ? Bengal Carpet? as we are offering natural, environment friendly and soft carpet compare to our competitors. Though they will pay premium price but here the psychological cost is more than the monetary cost.
Page 32 Model of 3C Fig: 3-C’s Model ? Company: Bengal Carpets Limited (BCL) is going to be one of the most popular carpet companies in Bangladesh. It will be a partnership-based company, formed by five individuals having 20% shares each. Each of the partners of the company will be addressing a managerial role in the organization and will be working as a team to take any sorts of decision regarding the execution and development of the company. The scope of business of BCL will be to deliver quality carpet to the consumers.
There are many local jute companies in this country regardless of their product-quality they provide and price they charge. BCL will offer the consumers great quality of carpets at a premium price. ? Customer: Our target consumers are upper class people, who are conscious about the premium price and distinctiveness. Their monthly income is Tk75000 and above. Page 33 ? Competitors: There have many existing competitors in the market. In this carpet industry our main competitors are: Shahi Carpet Shyamol Bangla Jutex Ltd. Mask Associates (Pvt. ) Ltd. Sadi Floor Covering Ltd Alam Fiber Impex Brand Dynamics
Brand dynamics pyramid For any marketer faced with writing a marketing plan, his/her start point has to be establishing the current strength of the brand or service. With out knowledge on the sorts of relationships customers have with brand or service and without knowledge on just how loyal the consumers are, it is easy to make the wrong assumptions and to take less than optimal decisions. Identifying what percentage of our franchise comes from different consumer groups is the key to creating a meaningful marketing plan. The Brand Dynamics Pyramid described by Millward Brown will help us to do this.
Based on attitudinal data, the Brand Dynamics Pyramid will give a graphic representation of the strength of relationship of the strength of relationship consumers will have with our brand. Bonded consumers- those at the top level of the pyramid- not only have a stronger relationship with a brand, but empirical evidence shows that they spend more of their category expenditure on the brand than those at lower levels of the pyramid. So, by looking at the shape of our brand (Bengal Carpets) vs. the competition, we can quickly see how many loyal bonded people our brand has and who they are.
Page 34 Page 35 (1) Presence: Which describes “DO I know about it? ” It is the very first point of Brand Dynamics. This describes the availability of the brand to the target consumers. As our target consumers are the upper class people of our society, we have selected our showroom to be established in Gulshan-2. It will also be near in location from our corporate office of Uttara. We have only one showroom initially and it is in Gulshan-2 based on the aristocracy of the area and we will assure huge collection of all type of carpets in our showroom to facilitate our consumers‘ demand. 2) Relevance: Which describes “Does it offer me something? ” This element describes that the brand have to be relevant to the consumers. As jute carpet is mainly use for decoration of our houses, it is a sophisticated product with premium prices. We are concern about the brand salience also which determines that how our consumers encountered the brand to fulfill their needs. So, we can assure that we are concerned about the maximum offerings as well as fulfillment of consumers‘ need of sophisticated carpets. (3) Performance: Which describes “Can it deliver? Along with presence and relevance, we have to be concerned about the actual performance of the brand that whether it can fulfill the commitment that we made to our consumers with the help of brand performance (functional) and brand imagery (intangible) about our brand. That means, performance describes that whether we are successful to deliver all our core values to our target consumers. (4) Advantage: Which describes “Does it offer something better than the others? ” There are several companies in the market who are also producing carpets.
So to achieve our desired position as a brand we have to be differentiable from other brands of the market. We have already described the main features of our product, which is it is the softest, superior quality, premium priced product with upper class target consumer group, natural and environment friendly. So we are differentiable easily from other carpet producers in the market considering advantage provided to the consumers. Page 36 So, from the perspective of consumer judgment (regarding Functionality) and consumer feelings (regarding Intangibility) we think that our brand can offer advantage to the target consumers. 5) Bonding: Which determines “Nothing else beats it” This is the most top element of brand dynamics pyramid. It also determines consumer brand response. This is the actual blend of all other elements of the brand dynamics pyramid. As we are fulfilling all the lower levels of the brand pyramid successfully and the flow is going towards upper portion of the pyramid, bonding of our brand is positive and it is linked positively with consumer brand response. Brand Voltage Brand voltage is a one number summary of how well the brand converts the consumers‘ loyalty toward the brand.
It provides a unique measure of a brand‘s potential or resilience. Page 37 Brand dynamics Map Brand dynamic map is a map where a company can plot themselves where it stands with its competitors. Our brand ? Bengal Carpet? will hold the position of ? Specialist? in the brand dynamic map. As we are serving a portion of the total market with the high presence and moderate voltage. Page 38 Building Brand Equity Brand Name: Bengal Carpets (BC) Logos and symbols: The inner sight of the latter “a” will be in symbol of star with red colour with a green in the background. This will give the feeling of our national flagship colour.
The background of the logo will be in green which shows that our product is environment friendly. Page 39 Slogan “Bengal Carpets” The name of quality, natural and environment friendly flooring. Brand characteristics Our brand characteristics are: ? High quality ? Natural ? Environment friendly ? Socially responsible ? Charging comparatively high price than the other customers (Premium Price) ? Target customer group is Upper class people of Bangladesh ? Durable ? Reusable ? Free from pollution ? Bio-degradable ? Strong ? Suited for stacking high and palliating without risk of slips & falls ? Tear & hook damage resistance.
Page 40 Marketing Mix Product Product quality: the quality is one of the most important attributes of a product. As our major concern is quality, our product will be a high quality product. To ensure the high quality we have to ensure and maintain that we are choosing the best raw materials. Product design: Design is also a very important attribute of a product. We mainly offer customers a wide verity of designs like Persian/ Afghan/Turkish design carpet, Pakistani Bokhara which is in plain design, Indian jaipur ganzi, super rajbik design and mahal design. Premier super-washed floral, royal sephoi under Chinese design.
We also have sephoi design, dragon design, floral design, plain cream texered design, mystic collection, natural tone and modern gabbesh. Under these designs customer will find their favorable design and they could differentiate with competitors design. Product Features: our product features are ? Natural ? Environment friendly ? Softest carpet in Bangladesh ? Attractive design ? Modern style ? Thin carpet ? Durable ? Strong ? Free from pollution Brand name: our brand name is ? Bengal Carpet? Size: we come up with various sizes in the market. The available sizes are: 8‘ to 10‘, 9‘ to 11‘, 13‘ to 14‘, 15‘ to 17‘, 18‘ to 20‘and over 21‘.
Along with these sizes we are able to deliver customized size according to our customers‘ order. Page 41 Price List of price: in our pricing strategy we are following a premium price policy. Our product price will be started from Tk. 25,000 to Tk. 200,000. Discount: we will give some discount on price when a customer will buy a large quantity of our product. For example if a buyer wants to buy our carpet more than 700 sq. feet than s/he will get 10% discount on total price. Place Location: our show room will be in Gulshan 2 at Pink City Shopping Center.
The objective of selecting this place is our target customer is those people whose living standard is high. In Dhaka city, Gulshan is very luxurious area and high class people are living here. Moreover, this place is also near from our other target location like Banani, Baridhara. So to attract them we need to place our showroom in this place. Coverage: As our target customer is high social status people, we mainly cover Gulshan, Banani, Baridhara, Dhanmondi. We choose these places because these are very luxurious area in Dhaka city and high social status people live in this area.
But we also deliver our product within the whole Dhaka city. Promotion Sales promotion: occasionally we will give gift voucher to our customer. This gift voucher will be given on two Eids and Christmas occasion. We also be coming up with the carpet designing competition, somewhere soon after the re-launch. Advertising: The advertising campaign of a product starts with marketing plan which contains current situation of market, what are marketing objectives for that product, strategies to obtain these objectives, and advertising plan for this certain product.
We believe that billboards, newspaper and magazine ads will be the best options for advertising. After determining the advertising plan as an advertiser we have to decide about advertising cost. Page 42 Two main types of advertising objective are sales and communication objective; however the advertisement campaign of Bengal Carpet would focus mostly on communication as Bengal Carpet is the product with best quality, environment friendly and natural product. The communication objectives of Bengal Carpet‘s advertising are following: The main advertising objective of Bengal Carpet is to create awareness to our target customers.
Initiate the feeling of Warmth Bengal Carpet‘s communication objective is designed to create brand knowledge and interest among its targeted consumers which will eventually increases the sales in long run. Developing an understanding of what the product is and what it will do for the consumers through comprehension. Developing a mental disposition in the consumer to buy the product by conviction and finally persuade them to purchase. Budget for the advertisement is shown in appendix. Conclusion In conclusion, we can say that the best product commitment starts with us but it ends with our valuable customer.
Whatever customer needs, we will work to meet them. Without total customer satisfaction we are not successful. We believe in pioneering new ways to bring original and exciting products to our customers. We believe the best product is many things… innovative, durable, aesthetically pleasing, and most of all it exceeds our customers expectations. We believe that there is value in having aesthetically coordinating flooring materials across an entire line of products and making that easy through a simple color reference system.
We believe customer complete satisfaction is the measure of our success. Page 43 Appendix Type Newspaper Ad of Cost/ad Time Days Location Size Type (BDT) From 5 The Daily Prothom Alo (Bangla) Teasers (6) days Prior to launch Informative Each Ads Friday From 5 The Daily Jugantor (Bangla) Informative Each Ads Friday From 5 Teasers (6) The Daily Star (English) days Prior to Launch Informative Each Ads Friday 4/mo Front nth Page 4. 5? x 4 col 6 Back Page 4. 5? x 4 col Color 7500. 00 45,000. 00 4/mo Front nth Page Teasers (6) days Prior to Launch 4. 5? x 4 col 6 Back Page 4. 5? 4 col Color 9000. 00 54,000. 00 4/mo Front nth Page 4. 5? x 4 col 6 Back Page 4. 5? x 4 col Color 10000. 00 60,000. 00 Total (BDT) Cost Color 12000. 00 192,000. 00 Color 11500. 00 184,000. 00 Color 10000. 00 160,000. 00 Total for Newspaper Ads (BDT) 695,000. 00 Page 44 Media Time Location Quantity Size 12‘ 24‘ 12‘ 24‘ Type x Poster Panel x Poster Panel Cost/Ad (BDT) Total (BDT) Cost Gulshan Circle From Billboards (1 day of launch BATA Signal, Elephant Road Total for others media ads (BDT) Quarter hire) Gulshan Circle 1 1 210,000. 00 2 1 220,000. 00 1,075,000. 00 1 12‘ 24‘ Poster Panel 180,000. 00 1,075,000. 00 Magazine Type of Ad Cost/ad Time Days Location Size Type (BDT) Total Cost (BDT) Ice Today Informative Each Ads Month Back 1 Cover Page Ptg area. 7? Color 35,000. 00 140,000. 00 x 9. 5? Mirror Informative Each Ads Month Back 1 Cover Page Ptg area. 7? Color 30,000. 00 120,000. 00 x 9. 5? Total for Magazine Ads (BDT) 160,000. 00 Total for Print Media Ads (BDT) Page 45 955,000. 00 Tasks Total (BDT) Print Media (Newspaper & 955,000. 00 Magazine) Other Media (Billboards & 1,075,000. 00 POP) Total Promotional Budget 12,623,200. 00 Page 46