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About The Organization Company Profile at a Glance: •

Company Name

Address

: Advanced Chemical Industries (ACI) Limited : ACI Centre, 245, Tejgaon Industrial Area, Dhaka-1208. : +88-02-9885694

Phone

Fax

: +00-02-9886029

E-mail

: INFO@ACI-BD.COM

Web Page

: WWW. ACI-BD. COM

Company Logo

:

Strategic Business Units: • Pharmaceuticals • Consumer Brands • Agribusinessa) Crop Care and Public Health b) Animal Health Subsidiaries:

• • • •

ACI Trading Limited ACI Formulation Limited Apex Leather crafts Limited ACI Salt Limited


Executive Management: • • •

Mr. M Anis-Us-Dowla Dr. Arif-Dowla Mr. M Mohibuz Zaman

Dr. F H Ansarey

Mr. Azmal Hossain

Mr. Syed Alamgir

Mr. Muallem A Choudhury

Mr. Towfiqur Rahman

Mr. Priyatosh Datta

Ms. Sheema Abed Rahman

Mr. Pradip Kar. Chowdhury

Chairman Managing Director Chief Operating Officer, Pharmaceuticals. Executive Director, Agribusinesses. Executive Director, Trade. Executive Director, Consumer Brands. Executive Director, Finance & Planning. General Manager, Operation. General Manager, Quality Assurance. General Manager, Corporate Service. Financial Controller

Financials (Year Ending December 2004):

• • • • •

Authorized Capital

:

Taka 500 Million.

Paid-Up Capital

:

Taka 161.70 Million.

Sales

:

Taka 2,558 Million.

Profit after Tax

:

Taka 89.52 Million.

Numbers of Employees :

2161

Background: ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the East Pakistan in 1968. After independence the company has been incorporated in Bangladesh on the 24th of January, 1973 as ICI Bangladesh Manufactures Limited and also as Public Limited Company. This Company also obtained listing with Dhaka Stock Exchange on 28.12.1976 and its first trading of share took place on 09.03.1994. Later on May 05, 1992, ICI Plc divested 70% of its shareholders to local management. Subsequently the company was registered in the name of Advanced Chemical Industries Limited. Listing with Chittagong Stock Exchange was making on 22 October, 1995. Advanced Chemicals Industries (ACI) Limited is one of the leading conglomerates in Bangladesh, with a multinational image. ACI is a Public Limited Company with a total number of 19,653 shareholders. Among these, there are three foreign and fifty local institutional shareholders. The company has diversified into five major businesses. Beside these, the company has a large list of international associates and partners with various trade and business agreements.


Company Mission: ACI’s mission is to enrich the quality of life of people through responsible application of knowledge, skills and technology. ACI is committed to the pursuit of excellence through worldclass products, innovative processes and empowered employees to provide the highest level of satisfaction to its customers. Company Vision: To realize the mission ACI will: • Endeavor to attain a position of leadership in each category of it businesses. • Attain a high level of productivity in all its operations through effective and efficient use of resources, adoption of appropriate technology and alignment with our core competencies. • Develop its employees by encouraging empowerment and rewarding innovation. • Promote an environment for learning and personal growth of its employees. • Provide products and services of high and consistent quality, ensuring value for money to its customers. • Encourage and assist in the qualitative improvement of the services of its suppliers and distributors. • Establish harmonious relationship with the community and promote greater environmental responsibility within its sphere of influence. Values: • Quality • Customer Focus • Fairness • Transparency • Continuous Improvement Distribution Network: The company maintains strategically located sales centers in 198 different locations across the country. It has developed an advanced distribution system through its more than 300 skilled and trained manpower and a large fleet over 80 vehicles. The distribution system is capable of handling continuing volume of diverse range of products from the various businesses. The company’s distribution centers are highly streamlined, computerized and automated. We are capable of maintaining a cold chain for some specialized range of products such as vaccines and insulin. The combination of this advanced function and multi dimensional capabilities make it possible to handle hundreds of products efficiently. Business Units: ACI Pharmaceuticals: In 2004, ACI Pharmaceuticals ranked 11th in the Bangladesh pharmaceuticals industry. It provides the market with a wide selection of drugs across all major therapeutic classes, and also offers some specially medicines. ACI Pharmaceutical represents AstraZeneca, Eli Lily and UCB in Bangladesh. ACI Crop Care and Public Heath Division: This Division is holding the leadership position in the industries; Animal Health has experienced one of the highest growth rates in this sector. ACI Agribusiness has partnerships with several international conglomerates including Ceva Santhe Animal, Invesa, UCB, Isago Asia and Boreegaad Taicang Chemical Co. Ltd.sdx.


ACI Consumer Brands: This Division is a leading Fast Moving Consumer Goods (FMCG) company in Bangladesh. In the liquid antiseptic and mosquito repellant categories, this division is a very strong market leader. Foreign partners represented in by this division include Godrej Consumer Products (for hair care and skin care), Parle Group (for Parle G biscuits), Beiersdorf, Germany (for Nivea range of Products) and Colgate Palmolive. ACI has formed joint ventures with leading FMCG and agribusiness players in the region. These are: • Asian Consumer Care Private Ltd: Joint venture of ACI and Redrock Limited, for distribution of various ranges of Dabur products in Bangladesh. ACI holds 50% stake in the venture. • Tetly ACI Bangladesh Ltd: Joint venture of ACI and Tetley Group of United Kingdom for distribution of Tetley products in Bangladesh, with ACI having 50% shareholding. Many ACI products have crossed our national boundary and are being successfully exported to various countries in Asia, the Middle East and the CIS region. The responsible of foreign consumers to our products has been encouraging. Manufacturing Standards: ACI has three separate manufacturing plants in the outskirts of Dhaka. The Pharmaceuticals plant is located at Narayanganj; ACI Formulations has been setup in Gazipur and the Tetley factory has been built at Konabari. ACI Limited is the first company in Bangladesh to have attained the ISO 9001 certification for Quality Management and ISO 14001 for Environment Management. The Trading subsidiary has also received ISO 9002 certificate. At our manufacturing facilities, we follow CGMP guidelines and standards recommended by World Health Organization (WHO) for pharmaceutical formulations. Diversification into new industries: ACI Limited is venturing into new areas of business, as part of its diversification initiatives. Two such businesses being set up are ACI Salt Ltd. And ACI Godrej Agrovet Private Limited. • ACI Salt Ltd: ACI has set up its salt plant in Rupganj, on the bands of the Shitalakhya river. The plant is producing refined iodized salt through Thermal Evaporation System. ACI has used technology from China Heavy Machineries Corporation (CHMC) in establishing the plant. The end product will be high quality, free-flowing salt with even, crystallized grains. The iodine content of ACI salt will have a stability of more than 6 months. The project has been undertaken at an approximate cost of Taka 32 crore. • ACI Godrej Agrovet Private Limited: Godrej is a pioneer in the packaged meat business in India. It is also the market leader in the poultry industry, and the owner of ‘Real Good’ brand. ACI and Godrej have a joint venture in Bangladesh to set up an Integrated Poultry Project. Under this project, ACI Godrej Agovet has already set up a feed mill at Sirajganj. This is fully automatic pellet poultry and fisheries feed mill, which uses technology from Jiangsu Muyang group of China. The company has also set up a hatchery at Joynabazar, on the Dhaka Mymenshingh road, with technology from Godrej. The plans for this project also include establishing Grand Parents and Parent Stock breeding farms. The investment in the project is Taka 8 crores, with ACI Limited having 50% shareholding of the company.


ACI Formulation Limited: ACI Formulations Limited (ACI FL) is a subsidiary of ACI Limited, located at Gazipur, in the outskirt of Dhaka. ACI FL manufactures majority of the products of ACI strategic Business Limited except for Pharmaceuticals division. The factory is equipped with the state-of-Art facilities for product formulations and process innovation. These include modern computerized equipment like HPLC and GLC. The product range manufactured at ACI FL include Crop Protection Chemicals like insecticides, herbicides and fungicides in granular, powder and liquid forms, Mosquito Pesticides in the forms of aerosols, vaporizers and coils, and households chemicals like toilet cleaners and hand wash. Quality Policy ACI aims is to achieve business excellence through quality by understanding accepting, meeting and exceeding customer expectations. ACI follows International Standards on Quality Management System to ensure consistent quality of products and services to achieve customer satisfaction. ACI also meets all national regulatory requirements relating to its current business and ensures that current Good Manufacturing Practices (CGMP) as recommended by World Health Organization is followed for its pharmaceutical operations. The management of ACI commits itself to quality as the prime consideration in all its business decisions. All employees of ACI must follow documented procedures to ensure compliance with quality standards. The pool of human resources of the company will be developed to their full potential and harnessed through regular training and their participation in seeking continuous improvement of work methods. Business Performance and Growth Scenario of ACI Limited:

Business Performance financial financial analysis analysis 2002 2002--2004 2004

• • • • • • •

2002 2002

2003 2003

2004 2004

Issued & paid up c apital (Tk.) 161,700,000 Net Turnover (Tk.) 2,052,913,536 Gr oss mar gin (%) 30 Profit after tax (Tk.) 109,180,668 Rate of Di vidend (%) 37.5 Earnings per shar e (EPS) (Times) 6.75 Number of employees 1662

161,700,000 2,239,565,258 29 85,413,760 40.0 5.28 1883

161,700,000 2,557,772,237 29 89,516,202 42.5 5.54 1924

Figure No: 2.1


Business Performance business business divisions divisions Contribution by rev enue 2 20 00 04 4

Figure No: 2.2

sales & profit Growth

14.21%

Figure No: 2.3


ACI Limited (Crop Care & Public Health Department): Agribusinesses comprise of two strategic units, namely Crop Care and Public Health. These businesses deal with crop protection products, public health products and foliar products. Animal Health division handles poultry and veterinary medicine, animal vaccines and nutritional products. ACI is having a strong distribution network in crop care sector that extends up to the village level. Their qualified team members in the field are providing scientific advice and modern solutions for crop protection to the farmers. They are contributing significantly to the development of Agricultural sector as well as improving the economic well being of the farmers in Bangladesh. They have broad spectrum of crop insecticides including bio-insecticides, fungicides and herbicides. They have own Research and Development Station in Rural Development Academy in Bogra for the product development activities of crop care and seeds. Organogram – Business Management:

Managing Figure No: 2.4 Director Organogram – Business Support Functions:

Executive Director, Pharma General Manager, Corporate

Executive Executive Managing Director Director, Director, Agro Consumer

Financial Controller

General Manager, Distributor

Executive Director, Trade

Commercial Manager

Executive Director, Operation

Audit Manager

Managing Director

Figure No: 2.5 Executive Director Organogram – Crop Care and Public Health:

Business Manager, CC & PH

Sales Manager

Product Manager

Area Manager

Manager PD and RA

Product Officer

Marketing Officer Sales Officer

Product Development Officer


Figure No: 2.6

Survey Results Findings from Stockiests: We have collected data from the stockiests in Manikgonj & Chandpur to find out the current efficiency of customer services of ACI Limited and the major competitors. We have divided the services into four categories – (1) Product-based (2) Credit-based (3) Promotion-based (4) personal-based. The survey results are given below Product-Based Services Manikgonj: Bayer: 1. Quality – Appropriate. 2. Delivery Time – Product is delivered timely. 3. Price – High, but ok. 4. Information of current & new developments – To inform the stockiests, retailers & farmers timely. Semco: 1. Quality –Ok, but should be improved. 2. Delivery Time – Product is delivered timely, but there is a problem in season time. 3. Price – Low rate. 4. Information of current & new developments – To inform the stockiests, retailers & farmers timely. Syngenta: 1. Quality – Appropriate. 2. Delivery Time – Product is delivered timely. 3. Price – Appropriate. 4. Information of current & new developments – To inform the stockiests, retailers & farmers timely. Auto Equipment Limited: 1. Quality – Appropriate. 2. Delivery Time – Product is delivered timely. 3. Price – Appropriate. 4. Information of current & new developments – To inform the stockiests, retailers & farmers timely.


Padma Oil Company: 1. Quality – Appropriate. 2. Delivery Time – Product is not delivered timely. 3. Price – High. 4. Information of current & new developments – To inform the stockiests timely, but not to inform the retailers & farmers timely. East West Crop Science: 1. Quality – Appropriate. 2. Delivery Time – Product is delivered timely, but there is a problem in season time. 3. Price – Appropriate. 4. Information of current & new developments – To inform the stockiests, retailers & farmers timely. ACI Limited: 1. Quality – Appropriate. 2. Delivery Time – Product is delivered timely, but there is a problem in season time. 3. Price – High. 4. Information of current & new developments – To inform the stockiests timely & to inform the retailers & farmers timely through trade meeting and farmers meeting. Chandpur: Bayer: 1. Quality – Appropriate. 2. Delivery Time – Product is delivered timely. 3. Price – High, it should be minimized. 4. Information of current & new developments – To inform the stockiests, retailers & farmers timely. Semco: 1. Quality – Appropriate. 2. Delivery Time – Product is delivered timely 3. Price – High, it should be minimized. 4. Information of current & new developments – To inform the stockiests, retailers & farmers timely.

Syngenta: 1. Quality – Appropriate. 2. Delivery Time – Product is delivered timely. 3. Price – Appropriate. 4. Information of current & new developments – To inform the stockiests, retailers & farmers timely. Auto Equipment Limited: 1. Quality – Appropriate. 2. Delivery Time – Product is delivered timely, there is a problem for sometimes. 3. Price – High.


4. Information of current & new developments – To inform the stockiests, retailers & farmers timely. Padma Oil Company: 1. Quality – Appropriate. 2. Delivery Time – Product is not delivered timely. 3. Price – High. 4. Information of current & new developments – To inform the stockiests, retailers & farmers timely. ACI Limited: 1. Quality – Appropriate. 2. Delivery Time – Product is delivered timely, but there is a problem in season time. 3. Price – High. 4. Information of current & new developments – To inform the stockiests timely & to inform the retailers & farmers timely through trade meeting and farmers meeting. Setu Corporation Limited: 1. Quality – Appropriate. 2. Delivery Time – Product is delivered timely. 3. Price – High. 4. Information of current & new developments – To inform the stockiests, retailers & farmers timely. Credit Policy Manikgonj & Chandpur: Auto Equipment Limited:


Manikgonj Credit Limit

As per potentiality business Minimum: 30 days

Chandpur of As per potentiality business Minimum: 30 days

of

Credit Days Bonus Offer

Maximum: 90 days Payment within 30 days: 5% 90 days: 4%

Maximum: 90 days Payment within 90 days: 3% Bonus reduction,

Punishment

Bonus reduction After 180 days – Legal action Cheque of bank Credi Credit days start from the t days start from the invoice invoice date. date. Cheque of bank

Agreement Procedure

Some specific products, like – Fungicide, are given 3/4 months before the season time through invoice, but credit days start in season time. Semco:

Some specific products, like – Fungicide, are given 3/4 months before the season time through invoice, but credit days start in season time.


Manikgonj

Credit Limit

As per business

Chandpur

potentiality

of As per business

Minimum: 90 days

potentiality

of

Minimum: 30 days

Credit Days Maximum: 180 days Bonus Offer

Payment within 90 days: 3%

Punishment

Bonus reduction

Maximum: 90 days Payment within 90 days: 3%

Bonus reduction,

Agreement Procedure

After 180 days – Legal action Cheque of bank Cheque of bank Cred Cred it days start from the invoice it days start from the invoice date. date. Credit system can not be Credit system can not be managed properly. managed properly.

Bayer Crop Science:


Manikgonj Credit Limit

As per business

Chandpur potentiality

of As per business

Minimum: 30 days Credit Days

potentiality

of

Minimum: 30 days Maximum: 90 days

Maximum: 90 days 30 days: 7%

30 days: 10%

60 days: 5%

60 days: 8%

90 days: 3% Bonus reduction

75 days: 4% Interests 91-105 days: 10%

Bonus Offer

Punishment

120 days: 3% interests 106-120 days: 15% 150 days: 5% interests Cheque of bank

Agreement Procedure

1,00,000 TK. Deposit Credit days start from the invoice date.

Padma Oil Company:

121-150 days: 25% Cheque of bank Cred it days start from the invoice date.


Manikgonj

Chandpur Normal

Types of Credit Credit Limit

As per potentiality business Minimum: 45 days

Special of As per potentiality business Minimum: 45 days

of

Credit Days Maximum: 60 days Maximum: 60 days Bonus Offer

45 days: 3%

45 days: 3%

60 days: 2.5% Bonus reduction

60 days: 2.5% Bonus reduction,

More than 120 days: Legal action 1,00,000 TK. Cash deposit Credit days start from the invoice date.

After 180 days – Legal action

Punishment

Agreement Procedure Syngenta:

Cheque of bank, Land mortgage Credit days start from the invoice date.


Manikgonj

Chandpur

Type of Credit

PC & RC

PC & RC

Credit Limit

As per business potentiality As per business potentiality of customer of customer Minimum: 30 days PC: 45-60 days

Credit Days Bonus Offer

Maximum: 90 days 3% -12%

RC: Pushing in October & Invoicing in January Payment within 45 days: 3%

Punishment

Bonus reduction

Bonus reduction

Cheque of bank Agreement Procedure

ACI Limited:

Cash deposit: 50,000.00 Tk. Credi Credit days start from the t days start from the invoice invoice date. date. Some specific products are Some specific products are given through chalan before given through chalan before 3/4 months of season time, 3/4 months of season time, credit days start in season credit days start in season time. time.


Manikgonj

Chandpur

Type of Credit

Normal

Credit Limit

Special Maximum: Normal – 8,00,000 Tk.

As per business

Special – 10,00,000 Tk. Minimum: 60 days

Minimum: 60 days

potentiality

of

Credit Days Maximum: 90 days Bonus Offer

Maximum: 90 days 60 days: 4%

60 days: 4%

Punishment

90 days: 3% Bonus reduction

90 days: 3% Bonus reduction,

Agreement Procedure

More than 120 days: Legal After 120 days – Legal action action Cheque of bank Cheque of bank Credi Cred t days start from the invoice it days start from the invoice date. date.

Setu Corporation Limited: Credit Limit Credit Days

Chandpur As per potentiality of business Minimum: 30 days

Bonus Offer Punishment

Maximum: 180 days Payment within 180 days: 3% Bonus reduction, Cheque of bank

Agreement Procedure East West Crop Science:

Credi t days start from the invoice date.


Manikgonj Type of Credit

Normal

Credit Limit

Special Maximum: Normal – 7,00,000 TK.

Credit Days

Special – 10,00,000 TK. Minimum: 30 days Maximum: 90 days 30 days: 5%

Bonus Offer Punishment

90 days: 3% Bonus reduction

Agreement Procedure

Cheque of bank Cred it days start from the invoice date.

Promotion Manikgonj: Bayer: 1. Incentives / Gifts / Bonus – 3% product bonus of total sales volume. - Incentives: 1, 00,000.00 – 2%, 3,00,000.00 – 2.5%, 5, 00,000.00 – 3% - Different types of gifts, such as – calculator, key ring, pen etc. 2. Reward System – There is no reward system. 3. Recreation Tour – There is no recreation tour. 4. Promotional Materials – Calendar, poster, festoon, leaflet, t-shirt, pen, cap etc. 5. Factory Visit – There is no factory visit. 6. Training / Knowledge-building program – Training program for stockiest two times in a year. - Training program for retailers three/four times in a year. - Knowledge-building program for farmers incase of new products / season time. 7. Stockiest Conference – Yearly conference.


Semco: 1. Incentives / Gifts / Bonus – Yearly sales Tk. 50,00,000.00 – 4.5% Tk. 20,00,000.00 – 3% Tk.10,00,000.00 – 2.5% Tk. 1,00,000.00 – 2% -

Gifts are provided by company & stockiest jointly to retailers. Television, mobile set etc. are provided to the stockiests for fulfilling the target. Bonus: 10 cartons – 1 carton, 20 cartons – 2 cartons.

2. Reward System – Reward is given to the best stockiests on the basis of sales & profitability. 3. Recreation Tour – Yearly recreation tour 4. Promotional Materials – Calendar, poster, leaflet, pen, pad, cap etc. 5. Factory visit – There is no factory visit system. 6. Training / Knowledge-building program – Yearly training program for Retailers. - Knowledge-building program for Farmers in case of new products.

7. Stockiest Conference - Yearly conference. Syngenta: 1. Incentives / Gifts / Bonus – 3% bonus of total sales volume. - 1% to 2% bonus for specific products. - For package program: 6,00,000.00 - 4%, 12,00,000.00 - 6%, 18,00,000.00 - 8%, 24,00,000.00 - 10%, 30,00,000.00 - 12%. - Watch, pen, key ring, greeting card etc. are given on occasion to the stockiests. 2. Reward System – There is no reward system for the stockiest. 3. Recreation Tour – Yearly recreation tour for the selected stockiests. 4. Promotional Materials – Poster, calendar, festoon, leaflet etc. 5. Factory visit – There is no factory visit system. 6. Training / Knowledge-building Program – Yearly training program for the stociests & retailers by paying fees. - Knowledge building programs for farmers incase of new products & season time. 7. Stockiest Conference – Yearly conference. Auto Equipment Limited: 1. Incentives / Gifts / Bonus – Yearly sales: 5,00,000.00 – 3%, 10,00,000.00 – 4%, 20,00,000.00 – 5%.


- For selected products: 10 cartons – 1 carton 20 cartons – 2 cartons. - Gifts are given in conference. 2. Reward System – Reward is given to the stockiests on the basis of performance (1st, 2nd, 3rd) 3. Recreation Tour – Yearly recreation tour. 4. Promotional Materials – Calendar, poster, notebook, leaflet, pen, pad etc. 5. Factory Visit – There is a factory visit system. 6. Training / Knowledge-building Program – Knowledge building programs for retailers and farmers. 7. Stockiest Conference – Yearly conference. Padma Oil Company: 1. Incentives / Gifts / Bonus – Total sales Tk. 5,00,000.00 – 2.5% cash incentives - Total sales Tk. More than 5,00,000.00 – 3% cash incentives. 2. Reward System – There is no reward system. 3. Recreation Tour – There is no recreation tour system. 4. Promotional Materials – Leaflet, poster, pen, T-shirt, pad, key ring etc. 5. Factory Visit – There is no factory visit system.

6. Training / Knowledge-building Program – Training for stockiest two/three times in a year (District-wise). - Training for retailers in case of new products - Knowledge building program for farmers six/seven times in a year. 7. Stockiest Conference – Yearly conference. East West Crop Science: 1. Incentives / Gifts / Bonus – 3% cash incentives of total sales. - Bonus: 100 cartons – 5 cartons, 500 cartons – 25 cartons. 2. Reward System – There is no reward system. 3. Recreation Tour – There is no recreation tour system. 4. Promotional Materials – Leaflet, poster, calendar etc. 5. Factory Visit – There is a system of factory visit. 6. Training / Knowledge-building Program – Training for stockiests two/three times in a year (District-wise). - Training for retailers incase of new products. - Knowledge building program for farmers in case of new products


& season time. 7. Stockiest Conference – No conference. ACI Limited: 1. Incentives / Gifts / Bonus – 3% / 4% bonus of total sales volume. - Gifts are given for fulfilling the target. 2. Reward System – There is no reward system. 3. Recreation Tour – There is no recreation tour system. 4. Promotional Materials – Leaflet, poster, pen, cap, pad etc. 5. Factory Visit – Potential customers are invited to visit the head office & factory. 6. Training / Knowledge-building Program – There is no formal training program for the stockiests & retailers, but trade meeting is arranged for them. - Knowledge-building program for farmers in case of new products & season time.

7. Stockiest Conference – No conference. Setu Corporation Limited: 1. Incentives / Gifts / Bonus – Yearly sales: 1,50,000 – 5,00,000 = 2% 5,00,001- 10,00,000 = 3%, 10,00,001- 15,00,000 = 3.5% 15,00,001 – 20,00,000 = 4% bonus. - Gifts are given for fulfilling the target. 2. Reward System – Yearly reward system for the stockiests (1st, 2nd, 3rd) 3. Recreation Tour – There is a recreation tour system after every 2 years. 4. Promotional Materials – Leaflet, poster, pen, cap, calendar etc. 5. Factory Visit – There is no system of factory visit. 6. Training / Knowledge-building Program – Yearly training program for the stockiests. - Knowledge-building programs for the retailers & farmers 3 times in a year. 7. Stockiest Conference – Yearly conference. Chandpur: Bayer: 1. Incentives / Gifts / Bonus – Incentives: Total Sales - 1, 00,000.00 – 2%, 3, 00,000.00 – 2.5%, 5, 00,000.00 – 5% - Different types of gifts, such as –


calculator, key ring, pen etc. 2. Reward System – There is no reward system. 3. Recreation Tour – There is no recreation tour. 4. Promotional Materials – Calendar, poster, festoon, leaflet, tee shirt, pen, cap etc. 5. Factory Visit – There is no factory visit system. 6. Training / Knowledge-building program - Training program for retailers two/three times in a year. - Knowledge-building program for farmers incase of new products / season time. 7. Stockiest Conference – No conference. Semco: 1. Incentives / Gifts / Bonus – Target sales Tk. 1,50,000.00 – 2% Tk. 6,00,000.00 – 3% Tk.10,00,000.00 – 3.5% Tk. 20,00,000.00 – 4% Tk. 30,00,000.00 – 5% - product bonus: 1% - Gifts are provided by company & stockiest jointly to retailers. -Television, mobile set etc. are provided to the stockiests for fulfilling the target. 2. Reward System – Reward is given to the best stockiests on the basis of sales & profitability. 3. Recreation Tour – Yearly recreation tour 4. Promotional Materials – Calendar, poster, leaflet, pen, pad, cap etc. 5. Factory visit – There is a factory visit system. 6. Training / Knowledge-building program – Yearly training program for Retailers. - Knowledge-building program for Farmers in case of new products. 7. Stockiest Conference - Yearly conference. Syngenta: 1. Incentives / Gifts / Bonus – 3% bonus of total sales volume. - 1% to 2% bonus for specific products. - For package program: 6,00,000.00 - 4%, 12,00,000.00 - 6%, 18,00,000.00 - 8%, 24,00,000.00 - 10%, 30,00,000.00 - 12%. - Watch, pen, key ring, greeting card etc. are given on occasion to the stockiests. 2. Reward System – There is no reward system for the stockiest. 3. Recreation Tour – Yearly recreation tour for the selected stockiests. 4. Promotional Materials – Poster, calendar, festoon, leaflet etc. 5. Factory visit – There is no factory visit system. 6. Training / Knowledge-building Program – Yearly training program


for the stociests & retailers by paying fees. - Knowledge building programs for farmers incase of new products & season time. 7. Stockiest Conference – Yearly conference. Auto Equipment Limited: 1. Incentives / Gifts / Bonus – Yearly sales: 5,00,000.00 – 3%, 10,00,000.00 – 4%, 20,00,000.00 – 5%. - For selected products: 10 cartons – 1 carton 20 cartons – 2 cartons. - Gifts are given in conference. 2. Reward System – Yearly reward is given to the stockiests on the basis of performance (1 st, 2nd & 3rd) 3. Recreation Tour – No recreation tour. 4. Promotional Materials – Calendar, poster, notebook, leaflet, pen, pad etc. 5. Factory Visit – There is a factory visit system. 6. Training / Knowledge-building Program – Knowledge building programs for retailers and farmers. 7. Stockiest Conference – Yearly conference. Padma Oil Company: 1. Incentives / Gifts / Bonus – Total sales Tk. 1,00,000.00 – 2% Tk. 15,00,000.00 – 2.5% Tk. 40,00,000.00 – 3% 2. Reward System – There is no reward system. 3. Recreation Tour – There is no recreation tour system. 4. Promotional Materials – Leaflet, poster, pen, tee shirt, pad, key ring etc. 5. Factory Visit – There is no factory visit system. 6. Training / Knowledge-building Program – Training for stockiest two/three times in a year (District-wise). - Training for retailers incase of new products - Knowledge building program for farmers six/seven times in a year. 7. Stockiest Conference – Yearly conference. ACI Limited: 1. Incentives / Gifts / Bonus – 3% bonus of total sales volume. - Gifts are given for fulfilling the target. 2. Reward System – There is no reward system. 3. Recreation Tour – There is no recreation tour system.


4. Promotional Materials – Leaflet, poster, pen, cap, pad etc. 5. Factory Visit – There is no system of factory visit. 6. Training / Knowledge-building Program – There is no formal training program for the stockiests & retailers, trade meeting is arranged for them. - Knowledge-building program for farmers incase of new products & season time. 7. Stockiest Conference – No conference. Setu Corporation Limited: 1. Incentives / Gifts / Bonus – Yearly sales: 1,50,000 – 5,00,000 = 2% 5,00,001- 10,00,000 = 3%, 10,00,001- 15,00,000 = 3.5% 15,00,001 – 20,00,000 = 4% bonus. - Gifts are given for fulfilling the target. 2. Reward System – Yearly reward system for the stockiests (1st, 2nd & 3rd) 3. Recreation Tour – There is a recreation tour system after every 2 years. 4. Promotional Materials – Leaflet, poster, pen, cap, calendar etc. 5. Factory Visit – There is no system of factory visit. 6. Training / Knowledge-building Program – Yearly training program for the stockiests. - Knowledge-building programs for the retailers & farmers 3 times in a year. 7. Stockiest Conference – Yearly conference. Personal-Based Services Manikgonj: Bayer: 1. Communication - Marketing Officer & Sales Officer communicate with the stockiests & retailers from time to time. Regional Manager communicates with the stockiests monthly. 2. Customer’s Suggestions – Top management doesn’t accept the stockiests’ suggestions for all time. 3. Problem Solutions – Product management team and Regional Manager solve the problems of the stockiests, retailers & farmers properly. 4. Friendly, Honest & Helpful – The company employees are very friendly, helpful & honest. 5. Follow up – The stockiests follow up the retailers after selling the products. 6. Customer Database – The company maintains the customer database properly. Semco: 1. Communication – Marketing Officer & Sales Officer communicate with the stockiests & retailers from time to time. Regional Manager communicates with the stockiests monthly. 2. Customer’s Suggestions – Top management doesn’t accept the stockiest’s suggestions properly. 3. Problem Solutions – The company employees try to solve the problems properly.


4. Friendly, Honest & Helpful – The company employees are very friendly, helpful & honest. 5. Follow up – The stockiests don’t follow up the retailers timely after selling the products. 6. Customer Database – The company doesn’t maintain the customer database properly. Syngenta: 1. Communication – Marketing Officer communicates with the stockiests & retailers time to time. 2. Customer’s Suggestions – Top management doesn’t accept the customer’s suggestions for all time. 3. Problem Solutions – The company team always tries to solve the problems properly. 4. Friendly, Honest & Helpful – The company employees are very friendly, helpful & honest. 5. Follow up – The stockiests doesn’t follow up the retailers timely after selling the products. 6. Customer Database – The company maintains the customer database properly. Auto Equipment Limited: 1. Communication – Marketing Officer & Sales Officer communicate with the stockiests and retailers regularly. Regional Manager communicates with the stockiests monthly. 2. Customer’s Suggestions – Top management doesn’t accept the customer’s suggestions for all time. 3. Problem Solutions – The company employees always try to solve the problems quickly. 4. Friendly, Honest & Helpful – The company employees are very friendly, helpful & honest. 5. Follow up – The stockiests follow up the retailers timely after selling the products. 6. Customer Database - The company maintains the customer database properly. Padma Oil Company: 1. Communication – The company employees communicate with the stockiests retailers and farmers from time to time & Regional Manager Communicates with the stockiests monthly. 2. Customer’s Suggestions – Top management doesn’t accept the customer’s suggestions. 3. Problem Solutions – The company team solves the problems in late. 4. Friendly, Honest & Helpful – The company employees are not friendly, honest and helpful. 5. Follow up – The stockiests follow up the retailers timely after selling the products. 6. Customer Database - The comapny doesn’t maintain the customer database properly. East West Crop Science: 1. Communication – Marketing Officer & Sales Officer communicate regularly and Area Manager communicates weekly with the stockiests. 2. Customer’s Suggestions – Top management always tries to consider the customer’s suggestions. 3. Problem Solutions – The company always tries to solve the problems properly. 4. Friendly, Honest & Helpful – The company employees are very friendly, honest & helpful. 5. Follow up – The stockiests follow up the retailers timely after selling the products. 6. Customer Database - The company maintains the customer database properly. ACI Limited: 1. Communication – Marketing Officer & Sales Officer communicate with the stockiests and retailers regularly. Area Manager communicates with the stockiests weekly.


2. Customer’s Suggestions – Top management tries to accept the customer’s suggestions, but not for all time. 3. Problem Solutions – The company team tries to give proper solutions of the problems. 4. Friendly, Honest & Helpful – The company employees are very friendly, honest & helpful. 5. Follow up – The stockiests follow up the retailers timely after selling the products. 6. Customer Database - The company maintains the customer database properly. Chandpur: Bayer: 1. Communication - Territory Officer communicate with the stockiests & retailers from time to time. Regional Manager communicates with the stockiests monthly. 2. Customer’s Suggestions – Top management doesn’t accept the stockiests’ suggestions for all time. 3. Problem Solutions – Territory Officer and Regional Manager solve the problems of the stockiests, retailers & farmers properly. 4. Friendly, Honest & Helpful – The company employees are very friendly, helpful & honest. 5. Follow up – The stockiests follow up the retailers after selling the products weekly. 6. Customer Database – The company maintains the customer database properly.

Semco: 1. Communication – Marketing Officer & Sales Officer communicate with the stockiests & retailers from time to time. Regional Manager communicates with the stockiests monthly. 2. Customer’s Suggestions – Top management accept the stockiest’s suggestions properly. 3. Problem Solutions – The company employees try to solve the problems properly. 4. Friendly, Honest & Helpful – The company employees are very friendly, helpful & honest. 5. Follow up – The stockiests don’t follow up the retailers timely after selling the products. 6. Customer Database – The company doesn’t maintain the customer database properly. Syngenta: 1. Communication – Marketing Officer communicates with the stockiests & retailers from time to time. Regional Manager communicates with the stockiests monthly. 2. Customer’s Suggestions – Top management accepts the customer’s suggestions properly. 3. Problem Solutions – Marketing Officer & Regional Manager try to solve the problems properly. 4. Friendly, Honest & Helpful – The company employees are very friendly, helpful & honest. 5. Follow up – The stockiests follow up the retailers timely after selling the products. 6. Customer Database – The company maintains the customer database properly. Auto Equipment Limited: 1. Communication – Marketing Officer & Sales Officer communicate with the stockiests and retailers regularly. Regional Manager communicates with the stockiests monthly.


2. Customer’s Suggestions – Top management tries to accept the customer’s suggestions for all time. 3. Problem Solutions – The company employees always try to solve the problems quickly. 4. Friendly, Honest & Helpful – The company employees are very friendly, helpful & honest. 5. Follow up – The stockiests follow up the retailers timely after selling the products. 6. Customer Database - The company maintains the customer database properly. Padma Oil Company: 1. Communication – The company employees communicate with the stockiests retailers and farmers from time to time & Divisional Manager Communicates with the stockiests monthly. 2. Customer’s Suggestions – Top management doesn’t accept the customer’s suggestions. 3. Problem Solutions – The company team solves the problems in late. 4. Friendly, Honest & Helpful – The company employees are not friendly, honest and helpful. 5. Follow up – The stockiests follow up the retailers timely after selling the products. 6. Customer Database - The company doesn’t maintain the customer database properly. ACI Limited: 1. Communication – Marketing Officer & Sales Officer communicate with the stockiests and retailers regularly. Area Manager communicates with the stockiests weekly. 2. Customer’s Suggestions – Top management tries to accept the customer’s suggestions, but not for all time. 3. Problem Solutions – The company team tries to give proper solutions of the problems. 4. Friendly, Honest & Helpful – The company employees are very friendly, honest & helpful. 5. Follow up – The stockiests follow up the retailers timely after selling the products. 6. Customer Database - The company maintains the customer database properly. Setu Corporation Limited: 1. Communication – Marketing Officer & Sales Officer communicate with the stockiests and retailers regularly. Regional Manager communicates with the stockiests monthly. 2. Customer’s Suggestions – Top management tries to accept the customer’s suggestions, but not for all time. 3. Problem Solutions – The company team tries to give proper solutions of the problems. 4. Friendly, Honest & Helpful – The company employees are very friendly, honest & helpful. 5. Follow up – The stockiests follow up the retailers timely after selling the products. 6. Customer Database – The company tries to maintain the customer database. Findings from Area Managers & Marketing Officers: We have conducted a survey by a questionnaire on the Area Managers and Marketing Officers for measuring the efficiency of customer services. 8 Area Managers and 64 Marketing Officers have given information. They have suggested the following things for improving the customer services – Area Managers: 1. Training program should be arranged for the stockiest, retailers, farmers. 2. The customers’ requirements must be fulfilled within time promised. 3. To solve the customers’ problem properly as early as possible. 4. Promotional program should be increased


5. Yearly reward system should be introduced for customers on the basis of performance. 6. To communicate with the farmers regularly. 7. The distribution sector must be improved by increasing manpower. 8. The delivery of products must be ensured within time promised. 9. Cash incentives, gifts and bonus should be provided timely. 10. Farmers’ meeting should be arranged frequently. Marketing Officers: 1. Credit policy should be more flexible (90 days – 120/150 days) – 30 persons 2. Customers’ training program should be arranged for the stockiest, retailers and farmers – 21 persons 3. Cash incentives / gifts / bonus should be provided timely - 28 persons 4. Yearly / half-yearly reward system should be introduced for the top customers – 9 persons 5. The delivery of products must be ensured within time promised – 13 persons 6. Recreation tour should be arranged for the top stockiests – 12 persons 7. Factory visit system should be introduced for stockiests – 9 persons 8. Area-wise stockiest conference must be introduced – 6 persons 9. The customers’ problem must be solved properly as early as possible - 5 persons 10. Promotional programs should be increased at the end users’ level – 5 persons 11. Relationship marketing (Tour, Gifts – new year, eid etc.) – 10 persons 12. The decisions of the bottom level should be considered – 6 persons 13. Yearly stockiest conference should be arranged – 4 persons 14. Product development team should support more the field forces – 7 persons 15. To develop the distribution sector more effectively by increasing manpower – 12 persons 16. Motor bike can be given for Sales Officers – 4 persons 17. Promotional materials should be increased more and delivered timely – 3 persons Recommendations Product: 1. Quality – The quality of products are appropriate. There is no objection of the stockiests, retailers & farmers about the quality of the products. But there is an objection of the stockiests & retailers about the quality of package and carton. By comparing with the competitors, the quality of package and carton is very low. So I think that the quality of package and carton should be increased properly. 2. Delivery Time – Product is delivered timely. But there is an objection of the stockiests that the products are not delivered timely in season time. If the company wants to get competitive advantage, timely delivery must be ensured for all time. 3. Price – The stockiests, retailers & farmers complain that the price of products is high. It will be very good for the company, if the company follows the competition-based pricing strategy. Because the farmers are not educated in Bangladesh, they always try to compare the price of products of different companies incase of purchasing. If it is not possible for the company to decrease the price of the products, they should discuss with the customers that if they want to get a quality product, they have to pay extra something.


4. Information of current & new developments – For the present competitive situation, it may not be possible for the company to differentiate the quality, price and delivery time of the products with the competitors. But the company can be closed more with the customers by passing all types of information about the current and new developments of the products as quickly as possible. The company can develop a well information management system. Credit Policy: Credit Limit – Most of the stockiests are pleased with the present credit limit. Some stockiests have suggested that it might be helpful for them if the company increases the amount of special credit. Credit Days – The stockiests are not satisfied with the present credit days. They have suggested that the credit days should be increased from 90 days to 120 days. Some products are supplied in November, but these are sold in January. So in this case, the stockiests have suggested that the credit days should be increased for 60 days or the credit days should be started from January. Bonus Offer – The stockiests are not pleased with the present bonus offer. They have suggested that bonus should be increased in the following way: 60 days – 5% 90 days – 4% 120 days – 3% Punishment – The stockiests are not pleased on the present punishment system. They have suggested that legal action should be taken after 150 days. My recommendation is that punishment system can be set by matching with the competitors’ punishment systems. Agreement Procedure – The agreement procedure is appropriate. The stockiests are pleased with the present agreement procedure. Promotion: Incentives / Bonus – The stockiests are not fully satisfied on the present incentive or bonus system. They have suggested that the bonus system should be set in the following wayYearly sales 1,00,000.00 – 5,00,000.00 = 3% 5,00,001.00 – 10,00,000.00 = 4% More than 10,00,000.00 = 5% Gifts - A person is very pleased when someone gives him or her gift. It encourages him or her to implement his or her job more efficiently and effectively. So my recommendation is that the company can give gifts to the stockiests, good retailers and model farmers on different occasions, such as – Eid, New Year, Birth day, Marriage day etc. Reward System – Reward system creates a competition among the employees or customers. Human being always tries to present them as a superior person. If they get any opportunity, they try to utilize that opportunity. So the company can introduce a reward system for the stockiests. The company can provide a reward to the best stockiest or the best three stockiests of an area in a year. This reward system will motivate them to do their business more effectively and efficiently. Recreation Tour – People always like to see natural beauty, to relax for sometimes, to keep fresh them. Recreation tour gives them that opportunity. It gives them a pure satisfaction. So the company can arrange a yearly recreation tour for the best stockiests. Promotional Materials – The company can use calendar, tee shirt as a promotional material, because these can be used for a long time. Tee shirt can be given to the farmers.


There is an objection of the stockiests that the promotional materials are not supplied in the right time. It is a serious problem. At the present competitive situation, promotion is very important part of business. The promotional materials play a very important role incase of creating demand. So the promotional materials must be supplied to the stockiests, retailers and farmers before supplying the products / at the right time. Training / Knowledge-building Program – Training makes a man perfect. It gives people confidence. It helps them to do their job more effectively and efficiently. It helps to improve the performance. So training is so necessary for the stockiests, retailers and farmers. Training can be arranged for the stockiests two times in a year area-wise. Training can be arranged for the retailers four times in a year district-wise. Knowledge-building programs can be arranged more systematically for the farmers. The farmers are the end users of the products. They are the most important persons of the business. So the company can give them a proper knowledge about their activities and can be closed more with the farmers. Stockiest Conference – The stockiests have suggested for a yearly conference. It is very important for them. In the conference, they can share their experience, knowledge about the business with each other. They can understand their strengths, weaknesses, opportunities and threats. They can get a guideline for their business for the future. Personal: Communication: Types of Communication: There are three types of communication which are very important for the company for doing their business effectively and efficiently. These are – 1. People-oriented communication: Face-to-face communication can be very effective for building a strong relationship with the customers. Remembering personal information will make them feel special. The company employees communicate with the stockiests and retailers effectively, but not with the farmers. But farmers are the most important persons for the company. So the company has to focus specially on them. 2. Business-oriented communication: This type of communication is concerned with business issues, such as – identifying the financial justification of any customer and ensuring that they get value for money. The company can develop a time-saving system for doing the business more effectively. 3. Technically-oriented communication: The Company can utilize an opportunity to demonstrate products to the farmers. The farmers will get more confidence on the products. Professional Message: The Company can provide the following professional messages to the customers – • We are professional • We are efficient • We know what we are doing • We can help you • We can make your life easy • We are interested in you • We are glad to see you • We are friendly • We maintain a specific standard Customers’ Suggestions:


The customers are the business partners of the company. The success of the business is dependent on them. So their suggestions are very important for the company. The company can develop a system for taking valuable suggestions from the stockiests, retailers & farmers. If top management accepts the customers’ suggestions, they are motivated to do their activities more effectively and efficiently. They consider the company as a friend. Problem Solutions: It is very important for the company to solve the problems properly. The company employees can follow the following steps for solving the problems properly – 1. Listening to gain an objective overview: Full concentration should be given to the customer’s story so that the responsible person can act on facts and not assumptions. 2. Empathizing with the customer: It is important that the employees show that they understand how customers feel. Empathizing with customers shows them that they are being listened to and that somebody is willing to help them. 3. Apologizing and owning the problem: Customers become irritated and disillusioned with organization who make it difficult for them to complain. Customers should always be treated with respect and consideration. 4. Taking action to resolve the problem: The problem should be investigated and resolved promptly. If more time is needed to accommodate the customer, he or she should be kept informed and given a time when they can expect further information or a solution. 5. Follow up the problem to ensure satisfaction: The responsible person must ensure that the complainer is satisfied and there is no further complaining about the problem. Customer Database: Marketers must know their customers. In order to know the customer, the company must collect information and store it in a database & do database marketing. Customer database is the collection of comprehensive information about individual customers’ purchases, preferences, demographics and profitability. The company will be able to provide more services to the customers, if they maintain a strong customer database. Employment of Local Person: A local person knows well about his or her culture, neighbors, transaction system etc. So the local person should be employed as area manager, marketing officer or sales officer. A local person can understand and motivate the customers easily. They can adjust their activities quickly. They will be able to provide more customer services. So the company can consider the subject. Conclusion ACI Limited is a giant business organization in Bangladesh. They are doing their business allover the country. Their contribution to the economy is very high. Crop Care & Public Health Department is one of the SBU’s in ACI. During the research with customers we felt that somewhere there are gaps between customer expectations and organization’s services and since the management has given emphasis on better customer services and more customer satisfaction. This research has provided some interesting insight into what kind of service the customers give importance to and what quality service they get from ACI. It is quite obvious from the research that the customer requirements are not fully met and they are very dissatisfied with some of the aspects of the organization (credit policy, promotional materials, package and carton quality,


stockiest conference etc.). ACI should give more effort on the customer services so that strong relationship with the customers can be maintained. Bibliography 1. Measuring Customer Service - Jenny Hayes Frances Dredge (1998), Page-(135-139) 2. Customer Service and Support - Colin G. Armistead and Clark (1992), Page- (265-270) 3. Deliver Outstanding Customer Service - Susan & Derek Nash – (2002) 4. Principles of Marketing - Philip Kotler & Gary Armstrong (2006) 5. Marketing Management - Philip Kotler & Kevin Lane Keller (2005), Chapter-5 6. Building a Service Culture - Lifeskills International Ltd. (1999) 7. Measuring Customer Satisfaction - Richard F Gerson (1993) 8. ACI Annual Report – 2004 9. ACI Web Page: WWW. ACI-BD. COM


Efficiency Of Customer Services Of Crop Care & Public Health Department In ACI.