This report contains practical observation and experience of working at Koncept Furniture Ltd
Executive Summary This report contains practical observation and experience of working at Koncept Furniture Ltd. (a sister concern of Nasir Group). The learned different criteria of franchise business. How this organization deals with the mother company in Thailand. Although the duration of the internship was not so long enough to understand this new kind of business concept which is not practiced widely in Bangladesh. have also tried to include how they find their target customer and the marketing policy in this report. Some modifications were found for the enhancement of customer satisfaction and service efficiency. Although the market doesnâ€™t have a large number of competitors, but still Koncept Furniture Ltd. uses its strong strategy to remain the target market leader. Therefore, this report also contains the strategic view of Koncept furniture. Among this short duration have tried to organize all this information and provide in this report.
CHAPTER - ONE INTRODUCTION 1.1 Origin of the Report: The internship program is required for the student of BBA. It is a program with duration of three months. Students who have completed all the required courses are eligible for this program. In the internship program attached to the Koncept Furniture Ltd. (a sister concern of Nasir Group) for three months. 1.2 Objectives of the study:
The primary objective of this report is to use the theoretical concepts in analyzing real life of Practical Orientation in organizational activities, which is a partial requirement of the BBA program but the objective behind this study is something broader. The broad objectives of this report are summarized in the following, manner: 1
To meet the terms with the entire organizational environment and procedures
To formulate a bridge between the theories and practical procedures of
organization day to day operations 3
To be aware of the terms that has been taught in the SUB
To gain practical experiences and view the application of theoretical knowledge in the real life
1.3 Scope of the Report: This report helps me to understand the clear real-time experience about the total management of Koncept Furniture Ltd. It also helps me to understand how they deal with the customer. 1.4 Methodology: This report has been prepared based on experience gathered during the period of internship. This report consist descriptive method and presented found both theoretical and graphical way by marketing share of furniture and in the furniture market of Bangladesh. 1.5 Problem definition: The research topic is assigned to the research by the authority. The management said that the organization is going behind its expectation. At present Company’s market share is very low for its customer furniture’s products like bed room set, sofa set, dining set. The management wants to increase the market share and the business viable to its stakeholders. Therefore, the management assigned “analysis of Market share of Koncept Furniture Limited and its opportunities in the Furniture Market of Bangladesh,” for research purpose. 1.6 Descriptive Research: To formulate the objective of the research, there is a significant need to conduct an descriptive research. With the carrying out of this research, Researcher has been able to find out the secondary data from the framework for the research. The main types of descriptive research. This research is qualitative in nature but some quantitative approaches are also under taken in
the form of statistical analysis with various statistical tools. 1.7 Sources of Data: The nature of the report is Descriptive in nature. The prepared this report based on Practical experience and Secondary data. The collected secondary data for report from: 1
Data collected from internal report
Different books, training papers, manuals etc. related to the topic
1.8 Limitations of the Study: The face some limitations at the time of preparing this report. The present study was not out of limitations but as an intern it was a great opportunity for to know the organizational activities of Bangladesh. Some constraints are as follows: 1
One of the major limitations is the shortage of internship period. Since four month is not enough to know everything.
Because of the limitations of various sources of information, the report doesnâ€™t contain many important information and data. Therefore, the incapable to provide valuable information.
Due to time limitation, many of the aspects could not be discussed in the present.
CHAPTER â€“ TWO INTRODUCING KONCEPT FURNITURE LTD. (A SISTER CONCERN OF NASIR GROUP)
Koncept Furniture Ltd. is a sister concern of Nasir group. It is a franchise business of Nasir Group. Koncept furniture started its journey in 2001 with the bedroom furniture only. Later on Koncept import the office furniture and many more. Koncept is thai based company. All the product of Koncept imported from Thailand. 2.1 About Koncept Furniture Industries Ltd As a specialist in the manufacturing of high quality furniture attached with high quality craftsmanship in terms of designing, functionality and utility of Bedroom, Living room, Dining room, Kitchen and Home office furniture. The company is proud to offer the highest
quality of products and services to our customers all around the globe. Bring accumulated decades of experience and skill in manufacturing particle board and M.D.F. knocked-down furniture. Koncept Furniture Group of Companies' began its operations since 1953. Our Production lines are achieved the prestigious ISO 9002 version 2000 and ISO 14001 for overall operations, covering all subsidiaries in the group, with an accreditation from UKAS (The United Kingdom Accreditation Service) and AJA REGISTRARS LANEIO JAPANESE AMERICAN REGISTRARS Koncept Furniture utilized merely the highest MDF (Medium Density Fiber Board) and Particle Board available with E1 quality. Low Formaldehyde environmental panel board Surface material, melamine foils and all the fitting are specifically selected from manufacturers with global recognition for quality. Functionality and durability tests are conducted with each batch of raw material. The factories enable us to manufacture a wide range of products in numerous designs of Knocked-down furniture. The company's products quickly found favor in the market for their fine finishing, quality and artistry. The most modern production processes of the time being has been employing to satisfy the rapidly growing demands of the market. We have prepared long viewed on its long-term success in terms of foreign markets, and have consequently been exporting overseas for over 30 years for more than 30 countries. This vision has been complemented by aggressive marketing policies on both the domestic and international fronts and continuing development of its products and distribution network. Utilizing advanced technology, and computer-controlled continuous assembly lines for consistent finished products. Each step of its production process comes under the stringent supervision of a specialist team for product quality control and product quality assurance. Innovating product prototype to searching good material for production, testing product design, and evaluating product function, quality, and durability from our R&D department make Koncept Furniture products to be modern design long lasting function, as well as good quality.
CHAPTER - THREE PRODUCT INFORMATION DISTINCTIVE FEATURE OF KONCEPT FURNIEURE
3.1 Furniture Elements Composition Wood 3.1.1 Types of wood: Particle Board (PB) Medium density fiber Board (MDF) Natural Wood Koncept Furniture uses 2 kinds of wood: Particle board and MDF (Grade A) -
Made of wood under scientific process. By this high-tech production process: heated and pressured under 200 degrees Celsius.
Wood is delicately dense and fine of it is strong and durable.
Easy for reshaping. It can be crafted and designed in various ways. The wood in neat and clean suitable for any design.
3.2 El Quality Wood of Koncept Furniture: Koncept Furniture uses only El (European standard class 1) wood for its furniture. European Standard Class 1 or E1 is the standard of particleboard and MDF, which contain only 0.005% of formaldehyde in the entire wood. E1 wood has been well recognize and accepted in European countries and Japan where are concerned about the consumersâ€™ health. How is E1 better than other standards of wood? Most of manufacturers are using E2 or E3 to produce the furniture, but E2 or E 3 contain formaldehyde 6 times or 12 times higher than E1. Hence many customers will smell pungent odor when they are close to the furniture. This pungent odor will have negative affect to health such as eye irritation, nasal discomfort, and lung discomfort. Standard E1 furniture will have mild pungent odor, which will cause and harm to the customerâ€™s health such as eye irritation, nasal discomfort, You also can find E1 symbol on every product from Koncept Furniture where you will feel comfortable and trustworthy to purchase. 3.3 Lamination Foil Foil is used for covering and sealing both PB and MDF wood in order to add value and beauty as required. Types of Foil which Koncept Furniture uses: Melamine Qualification:
Moderate resistant to scratches and moisture.
Easy to clean.
Used for every each furniture such as bedroom sets, showcase, shelves, etc. High Pressure Laminate (HPL) Qualification:
100% water resistant.
Endurable to pressure, heat, moisture, acid, base, and alcohol.
Color does not get faded or come off easily.
Easy to clean.
Sustainable for heavy use.
Famously used as kitchen worktop (Cucine Brand). Short Cycle Qualification
Endurable to pressure, heat, moisture, acid, base, and alcohol.
Easy to clean.
Famously as kitchen body under Cucine brand or worktop of Access office furniture. Veneer Qualification
Emphasized on natural wood texture giving natural beauty sensation.
Resistant to scratches, moisture, and heat.
Famously used as worktop for kitchen table. Wrapping Technique Membrane
Made by covering the wood by Rigid PVC under 170 degrees Celsius. The PVC in melted to cover the entire wood.
Meant for crafted wood whenever curve of free transform is needed.
100% water resistant.
Neat and smooth feature so the furniture is aesthetically curve and joint-free. The color is vibrant and does not get faded or come off easily.
Suitable for dinning table top, door panel frame. Bed panel frame, bed headboard, and any specially crafted pieces.
Wrapping Qualification -
Meant to seal the joint between foils. It is also used for reducing symmetrical edge.
Usually used with bar-shape piece of wood as it will have only one hidden joint spot.
Famously used for cornice, some bed headboard models, and door panel frame. Fitting
Fortified hinge which has been tested and approved able to open and close for 60,000 revolution.
Strong drawer rail for better weight support.
Anti-jump wheels for smooth slide and preventing track jumping.
Strong hanging bar with absorbers.
3.4 Specialized furniture type Koncept Furniture uses RSS (Reinforced structure system) to enhance wooden strength for better weight support at a specific design. The features are: -
This high-tech method is derived from Europe and Japan, It strengthens the parts of
furniture to bear better load-ability than solid panel design by distributes weight in all direction to prevent the furniture from off shaped or bending as well as it give the light weight to the finished furniture product to be easily movable. Sofa feather Genuine Leather, synthetic Leather and Fabric has been using to manufacturing sofa external cover to produce elegance and highest comfort sofa design.
Wood and Iron has been using for different position and functioning to enhance optimum strength.
Spring made by very high quality steel roll.
Coil spring: 7-9 inch tall. It is used with genuine leather sofa of PU as it provides utmost comfort and it is also applicable with high-upholstery sofa.
Zig-Zag spring: Because of its high strength, it is used with elastic spring for the best combination.
Elastic spring: stripe-look. It used for sofas, which have separate upholstery from its structure such as fabric sofas. The plus here is it makes no noise.
Sponge: Koncept Furniture uses good quality sponge, which has more than 40% density as compared to 33% density of general sponge for highest comfort.
Fiber Fill: Along with sopnge, Koncept Furniture also uses special synthetic fiber which helps retrieve the shape after sitting.
3.5 Products of Koncept Furniture: Bedroom sets: bed, knocked-down and uilt-in wardrobe, dressing table and night table
Living room: sofa, coffee table, chair, sideboard and showcase
Dinning set: dinning table and chair
Home office: office table, conference table, computer table, and office chair
Multi-purpose shelf: Shelf, bookshelf, sideboard, and shoe cabinet
Kitchen: base and wall cabinet, counter, and worktop
Mattress: 5â€™ and 6â€™ feet mattress and anti-dust mite bed sheet
Koncept Furniture moving to make a fashionable furniture world in the world. Every furniture established a nice concept for easy life. 3.6 Selling Points of Koncept Furniture Products 3.6.1 Bed selling points of Koncept Furniture Other Players All El wood. Not all El wood. Wooden bed plate support prevents dust mite Iron net bed floor is hollow so it is unable to from reaching mattress. Consequently, owner protect dust mite. is kept at bay from asthma. Firm structure System (FSS) : Highly
Less then 8-point embedded and creates
Strengthened bed structure equipped with 3 screechy noise. iron beams and adjustable legs (specific models) as well as 12-point- embedded
structure. This makes it bearable up to 1000 kgs. 3.6.2 Wardrobe Reinforce Structure System (Rss) technique Normal side panels to hold weight helps beat more load-ability. All sliding doors for Selection walk-in closet Ball bearing creates track-jumping leading to have installed with anti-jump sliding wheels discomfort and unexpected accident. which 100% prevent track jumping and can adjust with floor level (up to 1.5 centimeters). The wheels can beat up to 50 kg. For folding door wardrobe. Koncept Furniture uses hinge which can bear up to 25 kg. Internal lock grip prevents unintentional slide Normal lock. This may slide the drawer out the drawer out from the housing.
from the housing unintentionally.
3.6.2 Sideboard RSS structure increases load-ability of top. Normal top, Possesses multi-function as it is able to apply One-piece model: making it unable to adjust with different space available in your house.
Adjust with space. Additional lockable 5th wheel for heavy load Hove only 4 wheels and some models are design in order to help bearing and distributing unlock able. weight as well as preventing it movement and fell down. 3.6.3 Built In Apart from knocked-down products. Koncept Furniture also possesses built-in furniture which is very modern and adjustable for any space such as walk-in closet, home entertainment, Home office and bookshelf. 3.7 Special service -
Koncept Furniture and its franchisees all over the world provide room plan consultation
to every customer by our interior specialists. Our specialist will help utilize the room space and plan furniture arrangement. Therefore, the customers can see the room and determine the budget accordingly.
drafted plan of the
Koncept furniture provides training of all installers to increase their skills and efficiency
for better and faster service. -
Koncept Furniture also provides after-sale service for further consultation.
3.8 Furniture Care 3.8.1 Wooden furniture 1.
In case of dust of a little stain, use a feather duster or any dry piece of fabric to rub off.
If the furniture ifs very dusty and stained, it is advisable to use almost buy piece of fabric to rub off before using a piece of dry fabric to clean once again to avoid moisture absorption of furniture.
In case of glue of sticky stain, use turpentine mixed with thinner to rub the area before cleaning it once again by a piece of dry fabric.
It is advisable to keep the furniture at well-ventilated area to avoid moisture area, which may lead to mold, or mite problem.
Avoid keeping furniture in exposure to sunlight and high moisture area especially under air conditioner or next to bathroom.
If the furniture is wet, dry it immediately by a piece of dry fabric.
Using utensil scrub to clean furniture is forbidden as it may damage the surface.
It is not advisable to hang clothes at wardrobe handle.
Customer should consult our showroom expert for any furniture movement.
3.8.2 Mirror furniture 1.
Use mirror solution to clean mirror.
Use soft fabric to clean mirror instead of newspaper.
As for frosted glass or sand blasted glass, cleaning by thinner is forbidden as it will create stain. Try using solution instead.
3.8.3 Dinning Table 1. Use almost dry fabric to clean after using a piece of dry fabric to clean once again. 2. Although the dinning top is heat resistant, it is advisable to avoid putting any extremely hot utensil on the surface immediately after cooking. One should extremely hot utensil on the surface immediately after cooking. One should insert heat absorber or heat pad in between in order to prolong the life of surface. 3. Even though the dining top is, to some extent, anti-scratch, it is not advisable to scrape the surface as it may unnecessarily create scratches. Table sheet can help
protect stain and prolong its life.
3.8.4 Chair 1. For iron chair, keep it away from moisture stricken area as rust may appear. 2. Use almost dry piece of fabric to clean before using dry piece of fabric to dry the furniture. In addition, applying powder on iron can help protect it from rust. 3.8.5 Sofa Furniture: 1. Use vacuum cleaner or dry piece of fabric to gently rub. 2. As for fabric sofa, the fabric cover is washable. Dry cleaning must be used to avoid fabric from shrinking and to maintain its vibrant color. 3. In case of PVC, use almost dry fabric to clean before drying it by a piece of dry fabric. 4. As for leather sofa in order to keep it anew and waxy, apply leather solution for cleaning. However using solution for a long period of time can cause softness loss. 5. If the stain is sticky, one may apply mild shampoo (baby shampoo) and gently rub the area by sponge before cleaning it once again by almost dry piece of fabric. If still unclean, use leather solution or cream to cleanse. 6. In case of oil or fat stain, wet a piece of fabric by warm water and clean the area.
CHAPTER â€“ FOUR BRAND AND PROMOTION Brand and promotion Koncept Furniture Industry Co. Ltd.
4.1 Branding Marketing Budget The amount of branding marketing budget is 3% three percent) of the net FOB amount of orders placed by the Distributor in the preceding fiscal calendar year (January â€“ December) and will be eligible for the budget in the subsequent fiscal year. The budget should be complied with budgetary procedure, which is detailed as follow: 1
A budgetary of 3% is based on net FOB turnover achieved at the end of the fiscal
colander year (January â€“ December) This amount is budgetary for Branding advertisement activities (not promotion activities or Sales discount activities) to build the brand awareness in customer market place but not granted to serve as incentive or discount. 2
In order to entitle to utilize or reimburse this 3% budgetary, each Distributor must provide the annual marketing plan to submit to SUPPLIER by the end of November of each year. This marketing plan coverage area should minimum comber as per the format enclosed in Annex I).
One month or more before actual implementation time table of each Branding marketing activities, Distributor to get the same consensus marketing concept idea.
The branding advertisement program can be proposed both parties should agree by either Supplier or Distributor to build the brand awareness that.
After implementation of each Branding marketing activities, if it will be a printed media Distributor must send one actual to Supplier but if it will be not moveable media like; billboard etc. Distributor will have to take photo and E-mail for Supplier reference and filing.
Any Branding advertisement expenditure spent without above consensus, that spending may not be considered or eligible to reimburse those branding marketing expense.
After the Branding advertisement activities has been implemented completely and the full amount of advertisement cost will be settled by Supplier direct to agency or advertisement service provider, than the invoice will be issued under supplier name to reimburse to debtor. On the other hand, if the amount of advertisement cost is shared between supplier and distributor, the invoice should be invoiced separately to each party for accounting purpose.
Alternatively, if DISTRIBUTOR wants to settle the branding advertisement cost directly to agency or advertisement service provider and record the invoice as DISTRIBUTORâ€™s company expense, distributor must inform and get approval from supplier in advance. Then after DISTRIBUTOR got invoice and receipt from agency or advertisement service provider. Distributor must scan invoice and receipt from each branding marketing activities to SUPPLIER will reimbursement to DISTRIBUTOR expense on each container by deducting as a discount in each shipment until the total amount was settled, as the maximum reimbursement should not exceed 20% of total amount in each shipment because Thai Revenue department
will not allow as they will consider to sell on loss by transfer pricing policy. 9
After initial Annual Brand Marketing Budget agree by both parties in The annual plan. But later on the DISTRIBUTOR or SUPPLIER need to modify any program (s) to suit market changing, it is possible to
4.2 Marketing Dimension of koncept furniture Koncept furniture ltd have not huge amount of customer. Their marketing dimensions within particular customer. Koncept furniture ltd use their marketing dimension given below: 1. Need assessment: Koncept Furniture ltd is an imported based company in Bangladesh. They exposing obtain assessment. Their price increase and decrease up to utility and Government tax. Before pricing, they get to know what product want to buy which customer. 2. Product create: Koncept furniture design their product by designer and furniture researcher and some time they create their product for huge buyer quantity, different country people like to use different product in order to they make that kind of product. As well as Koncept watch out the country based product (which is export quality) with verify weather prove. 3. Product promotion: Koncept bring with promotional activity. As such as o Newspaper advertisement: Koncept furniture ltd like to use newspaper advertisement with contain discount offer, summer sale and special offer. Not every newspaper is their advertisement media, which newspaper is very popular in high society people, such as Prothom-alo, Daily Star etc. o Leaflet: Leaflet Distribution is to the people hand to hand, whereas sometime leaflet thought-out by newspaper distributor. o Mobile SMS: Mobile sms is modern marketing strategy. New information and new coming product info, though by sms to mobile number who already our customer and if possible to get new customer number. Now Koncept furniture is using bulk sms. o Billboard: Koncept furniture ltd have got very much helpful by billboard advertising. They are choused a sweet able for advertisement. Such as Gulshan-1, turn top of the roof and too big. o Weekly and monthly magazine: Modern magazine using passion and style in their feature then Koncept furniture ltd main strength is style in their product and they using those magazines for provide their product feature 4.3 Competitive forces
Michael Porter has identified five forces that determine the intrinsic long-run profit attractiveness of a market or market segment: industry competitors, potential entrants, substitutes, buyers and suppliers. His model is used their. The threats these forces pose are as follows: 1) Threat of intense segment rivalry: A segment is unattractive if it already contains numerous, strong, or aggressive competitors. It is even more unattractive if it is stable or declining, if plant capacity additions are in large increments, if fixed costs are high, if exit barriers are high, or if competitor have high stakes in staying in the segment. These conditions will lead to frequent price wars, advertising battles, and new product introduction, and will make it expensive to compete. 2) Threat of new entrants: A segment’s attractiveness varies with the height of its entry and exit barriers. The most attractive segment is one in which entry barrier are high and exit barriers are low. Few new firms can enter the industry, and poor-performing firms can easily exit. When both entry and exit barriers are high, profit potential is high, but firms face more risk because poorer-performing firms stay in and fight it out. When both entry and exit barriers are low, firm easily enter and leave the industry and the returns are stable and low. The worst case is when entry barriers are low and exit barriers are high: Here firms enter during good time but find it hard to leave during bad times. The result is chronic overcapacity and depressed earning for all. 3) Threat of substitute products: A segment is unattractive when there are actual or potential substitutes for the product. Substitutes place a limit on prices and on profits. The company has to monitor price trends closely. If technology advances or competition increases in these substitute industries, prices and profits in the segment are likely to fall. 4) Threat of buying’s’ growing bargaining power: A segment is unattractive if the buyers possess strong or growing bargaining power: A segment is unattractive if the buyer possess strong or growing bargaining power. Buyers’ bargaining power grows when they become more concentrated or organized, when the product represents a signification fraction of the buyers’ cost. When the product is undifferentiated, when the buyers’ switching costs are low, when buyers’ are price sensitive because of low profits, or can integrate upstream. To protect themselves, sellers might select buyers who have the least power to negotiate or switch suppliers. A better defense consists of developing superior offers that strong buyers cannot refuse.
5) Threat of suppliersâ€™ growing bargaining power: a segment is unattractive if the companyâ€™s suppliers are able to raise prices or reduce quantity supplied. Suppliers tend to be powerful when they are concentrated or organized, when there are few substitutes, when the supplied protect is an important input, when the cost of switching suppliers are high, and when the suppliers can integrate downstream. The best defenses are to build win-win relations with suppliers or use multiple supply sources.
Potential entrants (Threat of mobility) NAVANA Furniture, Hifashion Furniture, Collection Furniture etc
Substitutes (theat of substitutes) Solid wood, PVC
Buyers (Buyer power)
Suppliers (Suppliers power)
Koncept furniture is Thai Based company then whole product come from Thailand etc.
(Segment rivalry) HATIL, Kinori, Otobi, Ligasy, , Teach wood,
We have no found over this topic
Five forces determining segment attractiveness 4.4 Four P's The Marketing mix is generally accepted as the use and specification of the "four P's" describing the strategic position of a product in the marketplace. Definition Aâ€? Marketing Mix" is the set of controllable, tactical marketing tools that work together to achieve company's objectives; these are product, price, promotion and place. â€˘
Product - A tangible object or an intangible service that is mass-produced or manufactured on a large scale with a specific volume of units. Koncept Furniture product is tangible product. Here we can see different product by company based, given below:
1 Koncept Furniture product made by high technology instrument in Thailand
HATIL Furniture product is local made in Bangladesh. Technology is not too high 2 People can use This is classical style of furniture product zoon level and E1 standard product
3 Product long liability high and strong technology with leather consistency
Their have not too much sector of furniture then they making particular product with particular technique
4 Imported based product, so weather proof, dust proof and water proof
Local made in Bangladesh then have combination with weather
Kinori is also Koncept type product but there non-brand imported product Consist market situation which going to new design for customer There have not liability consist as Koncept gave to customer
NAVANA Furniture product is well modern product in Bangladeshi company This is also a modern and classical furniture company
Imported based product so weather proof, dust proof and water proof
They are going create big profile in Bangladesh, Product long liability high and strong technology with leather and PVC consistency They are tried to use natural wood but some time like to use MDF board and product weather proof, dust proof and water proof
Price â€“ The price is the amount a customer pays for the product. Koncept Furniture determined by a number of factors including competition, material costs, product identity and the customer's perceived value of the product. That business may increase or decrease the price of product if other stores have the same product. Koncept Furniture
1 Competition about price is bring almost all company. Here Koncept Furniture gave very low price for reduce customer mentality from
HATIL Furniture product is high middle level costly. Some time they give too discount for a period
Kinori is having Koncept type product and price almost same, and price policy approximately same
NAVANA Furniture product price competitor is HATIL and, Otobi Furniture. These companies price quotation almost same
other company 1 Right customer There customer in particular area form middle class for this company society then business area as 2 Koncept furniture This like that company material costs is material costs not very high, like Koncept. because they are Their material 2 Rather those Business area is is using exclusive solid wood customers are long and accessories expensive to go franchise is on 3 Product furniture identity market. They differentareareausing by liability and Not too franchise solid wood, this strong the main product of this technology company with leather identity for consistency, main HATIL thing this is brandy global product 4 Very few Long customer customer having databases in Koncept furniture HATIL for their product reasonable price price
Right customer in particular area as koncept have There material costs is as Koncept Furniture They havehave only one showroom in Bangladesh This and company beingis not branded goodwill company but product is look like same to Koncept
This company is trying to catch whole furniture market that’s why they are Material costs making different simply middle and product for different control level area because Already they gottotal big material made by business in various own hand area Common Product long liability high and strong technology with leather and PVC consistency in this company
Very few Long customer customer having databases in this for price company
Place – Place represents the location where a product can be purchased. In furniture industry place is very important for business. Koncept is bringing exclusive product then they like to stay these area where product based customer living as Gulshan or Baridhara. Ther is some company existing place based business and comparison are: Promotion – Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. Advertising covers any communication that is paid for, from and cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events.
They have got lot of advertising distingue as we discussed in
They are active promotion with TV add, news paper add,
This company is different from other company, they
They are active promotion with news paper add, billboard and
billboard and do not involve many more many more in advertising scheme
Koncept have a Public relation Their customer Good good public is well is regular basis relation relation in behind their business relation
In promotion, Long lasting Quality word of mouth is product there product is brandy
Sale point not too Lots of selling Different sale Sale point all type many point point in one of furniture in all way over the country
The Four P's is also being replaced by the Four C's model, consisting of consumer, cost, convenience, and communication. The Four C's model is more consumer-oriented and fits better in the movement from mass marketing to place marketing.
CHAPTER â€“ FIVE ANALYSIS & FINDINGS 5.1 Integrated Market Communication 5.1.1 Describe Integrated Marketing Communications (IMC) Integrated Marketing Communications is a term used to describe a modern approach to marketing. Kotler would tell that everything above is just table stakes. Of course everything works together, and of course is speaking with the same voice to all internal and external audiences. Philip Kotler explains some important topic for IMC. Those are Advertising, Public Relations, Sales Promotion, Personal selling and Directing marketing. We will see below graph of IMC involvement in five factors of Philip Kotler with Koncept furniture and other company comparison
22.214.171.124 Advertising: Advertisement is the best way to though out the product information. Whereas furniture company also involved to furniture advertisement, the graphic pie chart we can see, 27% of height market lead having Otobi Furniture, NAVANA Furniture is next percentage
Advertising share in Market 5% 5%
2% 25% Koncept Furniture
NAVANA Furnit ure
Ligas y Furniture
Field Survey, 2008 25% of market share, HATIL is bring 18% and Koncept is 14% market share in advertising segment. Other players Touchwood 5%, Ligasy 4%, Hi-fashion 5% and Kinori 2% involvement with the advertising segment. Those companies tried to produce their product in different category of advertisement. 126.96.36.199 Public Relations: Public Relation is much important for service provided type of companies like furniture companies giving to service to customer is call public relation. Hence we can see a graphical measurement of public relation in market share. The height public relation is bring 25% by Otobi and lowest is 5% Kinori. Here Koncept kept 7%. Other way HATIL 13%, NAVANA 20%, Otobi 25%, Ligasy 10%, Touchwood 10%, Hi-fashion 10% is still away aggressive public relation.
Public Relations of Market share Koncept Furniture 10%
HATIL Furniture Kinori Furniture
NAVANA Furniture Otobi Furniture
Ligasy Furniture Touchwood Furniture Hi-fashin Furniture
Field Survey, 2008
188.8.131.52 Sales promotion: Most of the companyâ€™s product sells by sales promotional activity. Without promotional activity product unknown can be increase. In Bangladesh have some amount of Furniture Company, these companies performing sales promotion activity like Koncept Furniture
Sales Promotion Hi-fashin Furniture 8%
12% 14% 14% 0%
NAVANA Furniture Kinori Furniture 20%
HATIL Furniture Koncept Furniture
Field Survey, 2008
have 14% of customer market by providing sales promotion, in the same way hatil 14%, Kinori 12%, NAVANA 15%, Otobi 17%, Ligasy 8%, Touchwood 10%, Hi-fashin 10% of customer market having for sales promotion activity. We can see a graph where shown what different of market share each other. 184.108.40.206 Personal Selling: Marketing communication established personal selling. Here we see the graph their Koncept get 25 customer from personal selling and other companies are obtain consumer like HATIL 20, Kinori 30, Otobi 10, Touchwood 15, NAVANA 15, Ligasy 18, Hi-fashion 16 per customer come from each intregret customer.
Personal Selling 30
35 30 25 20 15 10 5 0
Field Survey, 2008 220.127.116.11 Direct Marketing: This is direct marketing way where company taking their action on his hand. We can see the graph what percentage these company related to direct marketing. Here Koncept is involving 17% of direct marketing. HATIL 12%, Konori 17%, Otobi 17%, Touchwood 9%, NAVANA 18%, Ligasy 6% and Hi-fashion 6% involvement in direct marketing. Directing Marketing Koncept F urniture
Otobi F urniture
T ouchwood Furniture
NAVANA F urniture
Ligasy F urniture
Hi-fashin F urniture
Field Survey, 2008
5.1. 2 Importance of IMC Several shifts in the advertising and media industry have caused IMC to develop into a primary strategy for Koncept Furniture ltd: 1. From media advertising to multiple forms of communication. 2. From mass media to more specialized (place) media, which are centered around specific target customer. 3. From this company- dominated market to a consumer-controlled market. 4. From general-focus advertising and marketing to data-based marketing. 5. From low agency accountability to greater agency accountability, particularly in advertising.
6. From traditional compensation to performance-based compensation (increased sales or benefits to the company). 7. From limited Internet access to Internet availability and access to goods and services. Although integrated marketing communications is more than just an advertising operation, the bulk of marketing dollars is spent on the creation and distribution of advertisements. Hence, the bulk of the research budget also is spent on these elements for Koncept furniture. The researched elements can then be functional to other contact points: letterhead, packaging, logistics, customer service training, and more, to complete the IMC cycle.
5.2 Competitive Analysis 5.2.1 Market share Koncept Furniture is not alone in this business area. They have various competitor in market segment. We can see here the market share in different way: a) Sales: Furniture market in Bangladesh sales segment shown over the graph. Here we can see what percentage of product selling of particular companies. Koncept 3% of sales taken from market. Hatil 12%, Kinori 3%, NAVANA 12%, Otobi 18%, Ligasy 3%, Touchwood 2%, Hi-fashion 2%, Others company 15% and local made 30% of furniture sale operate over the furniture market.
Sales Segment of Furniture Market Koncept Furniture 30%
HATIL Furniture Kinori Furniture NAVANA Furniture Otobi Furniture
18% 15% 12%
Ligasy Furniture Touchwood Furniture Hi-fashin Furniture Others Company
Fie ld Survey, 2008
b) Profit: Furniture companies get profit from the market. Whereas Koncept 4% of profit get from whole furniture market. Other companies are HATIL 12%, Kinori 3%, Touchwood 2%, Otobi 18%, Ligasy 3%, NAVANA 12%, Hi-fashion 2%, Other companies 14% and local made market getting 30% of profit share from the furniture market.
Profit Segment of Market Share Koncept Furniture HATIL Furniture 4%
3% 2% 18%
Kin ori Furniture Touchwood Furniture Oto bi Furniture Ligasy Furniture NAVANA Furniture Hi- fashin Furniture Oth ers Company
Field Survey, 2008 c) Outlet: The new growing furniture market in Bangladesh. It becomes good business. We can the graph where shown companies business area, as Koncept 3% Outlet in the market, their highest market share consist Otobi about 30% and lowest is Kinori and Ligasy have 2% of outlet market share and other are Touchwood 3%, NAVANA 20%, Hi-fashion 3% and Other companies 15% of outlet kept from market share.
Outlet Segment of Market Share
Hi-fashin Furniture 20%
Ligasy Furniture 30%
3% 2% 22%
Otobi Furniture Touchwood Furniture Kinori Furniture HATIL Furniture
Field Survey, 2008 d) Capital: Capital is most important for any company. Hence Koncept 15% capital contain of furniture market. In Bangladesh have big furniture companies who have post much amount of capital to the furniture market, such as HATIL 20%, Kinori 10%, Otobi 28% and NAVANA 28% of capital involved the market. This measure only for these four company
Capital Segment of Market Share 30% 25% 20% 15% 10% 5% 0% Koncept Furniture
Kinori Otobi Furniture Furniture
Field Survey, 2008
e) Human Recourse: In Bangladesh some amount of people were in job in the furniture company. We canâ€™t able to find out what amount of people doing job in this sector, whatever the graph shown some companies employment percentage. Those are Koncept 8%, HATIL 10%, Kinori 6%, Otobi 25%, Touchwood 5%, NAVANA 20%, Ligasy 4%, Hi-fashion 4% and other companies 10% human recourse having.
Human Recourse Segment of Market Share
HATIL Furniture 20%
10% 8% 6%
Touchwood Furniture NAVANA Furniture Ligasy Furniture Hi-fashin Furniture
Field Survey, 2008 f) Post Purchase customer service: This is the very important for service type of companies. Sell is not end of the business or service, after those companies have to serve when the got any fall form those sold product. Hence Koncept and Kinori furniture tried to provided high (90%) of after sales service. Other companies like HATIL, Otobi, NAVANA is providing medium after sales service and Hi-fashion, Ligasy, Touchwood give after sales service is low.
Post Purchase Customer Service
50% 90% 20%
Field Survey, 2008 5.2.2 Goal Analysis a) Why Koncect Furniture cannot obtain goal of market share as a market leader? Koncept Furniture Ltd has done plenty of marketing strategy but still Koncept does not get leading the furniture market shares in Bangladesh. There are some causes why they cannot get goal the market share as a leader. Such as: •
Koncept Furniture products price is too high, not every one can buy these products.
Only three showroom in Dhaka as well as in Bangladesh, two showroom is on Gulshan area and one in Uttora
Short availability product
Target market is on small area
Customer cant get actual structured and measured product, because these product coming as fixed design
Order post takes huge time
Same product has in the market which is cheaper then Koncept product
Small category of design bring with Koncept Furniture
These product adjustment wants much room space
b) How Otobi Furniture is bringing as a market leader? Otobi Furniture bring market share as a market leader all over the Bangladesh. There have huge number of franchise, trader and outlet in different area in Bangladesh. Product availability is long up. Every one can purchase their product from anywhere and every level of product easy to fund. This company can take order by customer requirement and measurement. Customer can use good quality product within cheaper price. They design the product as area basis, such as: For Gulshan area they provide high quality and fashionable product and for other area, they launch other qualified product that is customer based. Here some note how Otobi Furniture consists as a Market leader:
Various showroom in all over the Bangladesh
Product price is controllable
Product availability is well for market quantity
Almost every level of society is their customer
They can take order by customer requirement and measured
A variety of category of furniture are having in Otobi
Marketing line of attack concerned in different segment
This is the own made company then people can make sense, they can change their product whenever they got any fall from the product
Behind sales service is accessible
The tired to count their showrooms, franchises and dealers but this is not possible to make sense, because their business is area ultimate uncountable for dealer and sub dealer and many more but the observed they also involved in local area in the country. Even one of Otobi Furniture’s employees does not know the number of their showroom then how could. Whereas the found approximately over one hundred showrooms, franchises and dealers have in Bangladesh in different area. c) How HATIL Furniture departing to goal in the market? HATIL Furniture is also has large number of customer market in market share in Bangladesh. This company is extremely close up to goal and win-win segment. Much area is covered by their franchise and showroom; Products are popular for classical basis. Most of the furniture is made by solid wood and they got those market who like classical product with solid wood. Product strength and long liability is much well. Classical product is surface for this company. Here point out how HATIL Furniture can get their market share, such as: •
In Bangladesh, people like to use classical furniture
Product price not out of hand and acceptable pricing by product
Solid wood is more reliable form other category of wood
Big number of franchise and showroom in particular area in Bangladesh
They provided showroom, where their customer are closer
They keeping product order for customer requirement
They do not take time for order
After sales service is available
Customers are satisfy with their product
I Originate Hatil Furniture Carry Showrooms And Franchises On Individuals Area, As: Mirpur, Narinda, Chittagong-2, Uttara, Jatrabari, Comilla, Dhanmondi, Keraniganj, Mymensingh, Tejgaon, Narayangonj, Bogura, Malibagh, Gazipur, Khulna, Mohammadpur, Chittagong-1, Jyotshna Enterprise, Jyotshna Enterprise, Feni, Jessore, Moulovi Bazar, Panthapath, Sylhet.
5.3 Service Nature 5.3.1 My working experience: During my internship period in Koncept Furniture, the worked as a customer service executive. tried to explain, what the done and what the responsibilities of a customer service executive are. a) Responsibility of a customer service executive: During internship period in Koncept Furniture Ltd. as a customer service executive hat to go through primary training regarding the products. Since each and every single product has his own name and price and made off different materials. So had to have adequate knowledge to able to brief the customer about our product. As far as the responsibilities of a customer service executive goes they can be stratified under the following headings: b) Receiving the customer & dealing with them: Once the customer walks in, the first job of a customer service executive to receive them with greetings and try to know about their requirement. The later part involves showing and bringing the product to the customer. The effort of a customer service exe is always to try and wrap up a sale. It really does not make any difference whether the customer is here for a big purchase or not. We have to treat them equally. c) Wrapping up a sale and keeping records: If a sale is wrapped up and the customer agreed to buy our product, we have to make them an invoice taking their name, address, and contact numbers and stating the product, quality and price. Once that is done, we have to put that in our inventory to keep the records for future reference, so that we can keep them update about our upcoming offers. d) After sale service: The most important part of any customer service oriented business is the after sale service.
Because that is the concluding the impression in the mind of a customer regarding us and our company. After sale service includes packing the product, checking the quality, condition and ensuring a safe and timely delivery. Finally, following up the customer regarding the delivery, there is one more part as after sale service that is ensuring the feedback. If there are any complain, try to fix it as soon as possible. e) In house work: In house work involves data entry job that is to keep record of the customersâ€™ referring to the invoice number for instant access and categorizing the files under different criteria. f) Corresponding with the foreign principles and making the order. Since Koncept Furniture Ltd. is an international Thai based brand. All the furniture are imported from Thailand. Accordingly, we have to collaborate with our foreign counter part, keeping us update about their latest products and making the order as per the customersâ€™ requirements and our own choice. Making an order involves mailing the products name, code numbers and quantity for every individual part. Generally it takes two and a half months to receive a shipment. g) Maintenance and display. The customer service executives are also responsible for maintenance of the floor and displaying the products. So, that the customers get the presentation, which is very important to create a first impression. h) Corporate dealings A very important part of the customer service job is corporate dealings, which involves dealing and corresponding with the reputed companies or group of companies and keeping them informed about our products and offers. This is important because not only does it bring in big purchase orders beside the regular retail sale but also facilitates the relation with other companies as well.
Strength Not huge amount of competitor Exclusive quality product Business area is well Budget is no matter to action Good customer relation Supply management control is own hand Smart customer division
Weakness Common product in the market which is cheaper Irritation customer with Koncept product and due delivery Very high price product Very few customer database of Koncept furniture ltd Itâ€™s a imported like business, some time product shipment takes long time
Opportunity In house work service After sales service People can use E1 standard quality furniture Gift after sale Product long liability Modern furniture Over the phone booking for 10 to 12 hours Long time booking Discount for repeated customer Customer can change their ordered product before delivery Those furniture can create home beauty interior
Threat Sales decrease Irritation customer Effected product and high cost product Business area costly home rent Management leaking Cant found right customer
CHAPTER â€“ SIX RECOMMENDATIONS The Furniture industry of Bangladesh has proved to be one of the most promising sectors with a high export potential. The industry has its members spread all over the country with key players located in Dhaka with an overall number of 80,000-100,000 people. There are about 10,000 furniture manufacturing enterprises all over the country and the market size is Taka 4 billion with a growth rate of 15-20%. The country earned Taka 261 million from exporting modern wooden furniture during the first quarter of the financial year of 20072008. The Bangladeshi economy is developing at a fast pace and the government has declared the furniture industry as a â€˜Thrust Sector'. This is where Bangladesh Furniture plays a key role in the Furniture Market evolving as the biggest Furniture Exporter of Bangladesh. Our Team has carried out extensive research and studies on furniture and its market and the potential of the market here in Bangladesh. Many of its projects have turned out successful and many are progressing well. However the Koncept Furniture Limited should organize the following functions in order to
utilize the prospect in furniture market. The following are some recommendations for the Koncept Furniture for future growth and business expansions. 6.1 PROPOSED PLAN FOR BANGLADESH 6.1.1 Goal Formulation 1. Should study the market together in terms of trend, combine experiences from both sides for further leverage. 2. Should monitor the communication strategy and tactics as well as media usage of koncept competitions. 3. Should enhance the total operation of showroom and combine experiences from both sides for further leverage. 4. Should study the strength and weakness of completions showrooms. 5. Should understand the overall real estate situation and project trend and combine experiences from both sides for further amelioration. 6.1.2 Action Plan 1. Koncept Furniture Co. Ltd. Should gathers related information available from different sources in advance and prepares a report for discussion. 2. Koncept Furniture Ltd. Should encompasses and collates necessary information before hand for analysis. 3. After the first and second points. Koncept Furniture Co. Ltd. Should send marketing executive visits Bangladesh and works together with Koncept Furniture Ltd. marketing executive for in-depth field work and collect more information if any more is required. Both parties prepare reports accordingly. 6.2 Product different Koncept have every type of furniture in furniture sector, like home solution, office furniture, interior design furniture and all type of furniture. However they Should have various sector of that industry. Such as 1. Ordered product 2. Ready Product 6.3 Prospect of Koncept:
1. Purchasing goods: Koncept Furniture ltd in Bangladesh is under trek keeping well relation with customer, but their product price too high then their basic customer from higher society more then higher middle society customer. Those particular customers always do purchase from Koncept Furniture. 2. Product statues: Koncept Furniture likes to show very fashion and modern product.
CHAPTER – SEVEN CONCLUSION During
internship period, the learned many things. The learned how to deal with the
customer, how to place an order, how a company introduced their product to market, market police, how a company can make customer satisfaction and so more. Internship is a very important thing for a student to learn and gather knowledge from live experience in an organization. It helps us to know the environment of an organization, how they do their work. How they deal with the customer. The got information about that marketing is one of the ways to catch the customer and different product has to use different marketing strategy. The was in Koncept Furniture ltd as an Exe. Customer service so main work was customer related every thing direct communication and consultation. Some time the worked for their promotional activity. Finally, the like to say that internship period was best time in life and like to do that kind of challenging job in future.
Bibliography Related Books 1.
Philip Kotler, “Principles of Marketing”, Macgro-
Hill Publications, 2006 2.
Philip Kotler, “Marketing Managemet 12e”.
Tata Macgrow-Hill Publications, 2006 Related Websites: http://www.konceptfurniture.com/www/quality_and_standard.php http://www.furniturebangladesh.com/ http://www.bdyellowbook.com/catalog/Household___Handicrafts/Furniture__Wooden_ /Bangladesh_Furniture_Export__Trading_Company_Limited-info24270.html
Published on Oct 7, 2013
Published on Oct 7, 2013
This report contains practical observation and experience of working at Koncept Furniture Ltd. (a sister concern of Nasir Group). The learne...