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“An analysis of Customer’s Interior perception on Multi Level Marketing (MLM) and Destiny Group�. 2.1 About Destiny Group

Destiny-2000 Ltd. is one of the largest multi-level marketing companies of the world. About 3 million Distributors have joined the company since its inception in December 2000. Having its corporate office in Dhaka Bangladesh, it has branches all over the country. With the goal to create self-employment opportunities for millions of educatedunemployed youths of Bangladesh, the company started its journey on a very rough road. Since the marketing concept was new in Bangladesh, the company started to face with many difficulties from the beginning. The concept was misunderstood by many people, even by some of the government agencies. However, under the dynamic leadership of its Managing Director, Mr. Mohammed Rafiqul Amin, the company could overcome those, and made a remarkable progress down the road. During this period, the company has made significant contributions to the economy of Bangladesh, by paying not only huge amount of taxes to the government, but also enlisted a large number of new taxpayers. With 1800 employees at present, the company has 24 sister concerns. To bring a real change in the society as a whole, the company has been contributing a lot from the agricultural to the cultural sectors. Its contribution to fight against the sufferings of the humanity is remarkable. Always it stood with the people who were devastated with the natural calamities. And thus it translates its slogan into reality: Together we build our dream 2.2 Financial Highlights


Name of the Company Nature of Business Date of Registration Number of Registration Trade License No. Tax Identification Number (TIN) VAT Registration No. Organizational Membership Head Office

Registered Office

Corporate Office

Name of the Banks

DESTINY-2000 LTD. Network Marketing (Direct Sales.) 14th December 2000, with joint stock company under the Ministry of industries and Commerce. C-42075(1434)/2000. 1227, Dhaka City Corporation, Area-36, Date of issue 03/01/2001. 1412009196, Tax area -04, Dhaka (South). 9021057474. Dhaka Chamber Commerce and Industries (DCCI). Registration No- 10756, dt. 11/11/2001 National Scout Bhaban(8th Floor), 70/1 Inner Circular (VIP)Road,Kakrail, Dhaka,Bangladesh. Phone: +880-2-9359131,+880-2-9362905,+880-29362906. Fax: +880-2-8322439. Direct Fax to Managing Director: +880-2-9362909. Email: info@destiny-2000.cominfo@destiny2000.com 38 Inner Circular (VIP) Road, Kakrail, Dhaka, Bangladesh. Phone: +880-2-8362010, +880-2-8361912, +880-28361913 38 Inner Circular (VIP) Road, Kakrail, Dhaka, Bangladesh. Phone: +880-2-8362010, +880-2-8361912, +880-28361913 Arab Bangladesh Bank Ltd., Principal Branch, Dhaka. Account Number: 4005-627941-000 BRAC Bank Ltd., Gulshan Branch, Dhaka. Account Number: 1501100130606001 Dhaka Bank Ltd., F/ Exchange Branch, Dhaka. Account Number: 203100000003382 Dutch–Bangla Bank Ltd., Shantinagar Branch, Dhaka. Account Number: 108-110-7567 Eastern Bank Ltd., Shantinagar Branch, Dhaka. Account Number: 1141220000220 HSBC Ltd., Motijheel Branch, Dhaka. Account Number: 001-134949-011 Islami Bank (BD.)Ltd., Local Office, Dhaka. Account Number: 9072 Islami Bank (BD.) Ltd., VIP. Road Branch, Dhaka. Account Number: 01004490 Jamuna Bank Ltd., Shantinagar Branch, Dhaka. Account Number: 210003085


Jamuna Bank Ltd., F/ Exchange Branch, Dhaka. Account Number: 210001773 One Bank Ltd., Principal Branch, Dhaka. Account Number: 15181001 Prime Bank Ltd., Motijheel Branch, Dhaka. Account Number: 10411070046574 South East Bank Ltd., Bangshal Branch, Dhaka. Account Number: 711100009854 Standard Bank Ltd., Topkhana Road Branch., Dhaka. Account Number: 33008278 The Premier Bank Ltd., Kakrail Branch, Dhaka. Account Number: 12411100002281 The Trust Bank Ltd., Dilkusha Corpt. Branch. , Dhaka. Account Number: 33000711 Bangladesh Com.Bank Ltd., Mouchak Branch, Dhaka. Account Number: STD.-22 Islami Bank (BD.) Ltd., Paltan Branch, Dhaka. Account Number: 01005471 One Bank Ltd., Sylhet Branch, Sylhet. Account Number: 21450006 South East Bank Ltd., Chouhatta Branch, Sylhet. Account Number: 711100009854 South East Bank Ltd., Eskaton Road Branch., Dhaka. Account Number: 711100001027 Total Number of Distributorship 32,91,147 + (Individual) (DIN) Upto Statement # 503 as of Dated 23 April 2011 Total Business Center 54,51,897+ (distributorship) (BC) Up to Statement # 503 as of Dated 23 April 2011 Total Number of Branch

101+

Total Number of Staffs 950+ Total Number of Shareholders 49 Total Number of Directors 12

2.3 Organizational Hierarchy The Current Organ gram as followsManagement Board of Directors Shareholders Executive Board


High Officials

2.4 Marketing Plan of Destiny 2000 Ltd. Conventional or traditional marketing system Producer -------------Dealer/ agent -----------Wholesaler-----------Retailer ---------Customer Direct or Network Marketing system Producer ------------ Network Company ------------- Customer Primarily a person invited by a distributor of a company to a open seminar to know about the product, services and commission system of the proposed network company. The invited person, if he or she interested to use product or services of proposed company that he can buy. A customer can justify and realize the product quality and marketing system before to buy. By this term the invited person can sign a joining documents by agreeing the terms and condition to be a distributor by purchasing a 500 points equivalent product. Product supply and commission distribution system of network Marketing – Many of the clauses are followed to distribute the commissions to the net worker or distributor and to select or supply the product through MLM companies in the world. Many of the variations are seen according to the characteristics and category of MLM Company. The commission distribution activities depends on geographical position, Products, people and the age of company. Generally following system are followed to generate the commissions. 58 % of the Gross Profit

Uni-Level & Matrix

60% of the Gross Profit

Ordinary Binary

88% of the Gross Profit

Destiny’s Binary

Generally Direct marketing Companies generate the 58 to 60 % profit to its distributor and according to this the selling system are followed generally- Uni-level, Stair-step Breakaway), Traditional –Matrix (-5*5. 4*4, 3*3), Binary Matrix 2*2 is used widely than others. Amway corporation uses Stair-step break-away system (9-6-3) where 55% of the profits are distributed. On other hand Osana Company uses Binary Matrix (2*2) where 60% of profits distributed. Excel-Telecommunication uses Matrix growth (3*3) geometric networking system. In Bangladesh Destiny 2000 Ltd. uses fifty-fifty compensation balance binary matrix system (2*2), where 88% profit are distributed. These selling systems indicate the geometric and mathematical terms to distribute the profits. Destiny’s selling & commission distribution system


The selling & commission distribution system of Destiny is very easy, acceptable. Destiny follows the Binary Matrix system which is familiar in MLM world as two’s geometric and mathematical formula. Destiny distributes the 88% profits to its distributor. That means Networker gets 88% of gross profits after selling the products which is very rare in the MLM world. In Primary faculty (every 6 steps) of selling the profit is distributed 11% to each person. In these six steps total 66% of gross profit and 11 % of the profit in next steps total 77% profits are distributed in each week according to the sales volume or performance competence to the net-worker. Without this 11% of profit is distributed as incentive to high designated sales leader. In this manner total distribution of commission & Bonus of Gross profit is 88-90%. This system controlled and maintained by software. DIN No------------

You

CID No-----------Left Distributors

Right Distributors

Geometric Growth in 12 steps of a customers in a Binary System

Steps

Binary system

Customers No

2*2

Customer & Distributor in team 2 Customers who is Distributors & 2 customers each 4*2

1

You*2

2 3

4*2

8*2

16

4

8*2

16*2

32

5

16*2

32*2

64

6

32*2

64*2

128

7

64*2

128*2

256

8

128*2

256*2

512

9

256*2

512*2

1024

10

512*2

1024*2

2048

11

1024*2

2048*2

4096

12

2048*2

4096*2

8192

Left calculation Table

Product

Right calculation table

product

Total 4 8

Achievements

Income


500 points

1

500 points

1

1st level

600

1000 points

2

1000 points

2

2nd level

1200

3000 points

6

3000 points

6

3rd level

3600

6000 points

12

6000 points

12

4th level

7200

Total

21

10500

21

1 cycle

12600

10500

Activities

Designation

Incentive

Royalty

8 cycle 16 Cycle

Silver Executive Gold Executive

10000 20000

10%

30 Cycle 40 Cycle

Platinum Executive P.S.D

8% 5%

Creation of 40 P.S.D with both sides Creation of 7 Diamonds Creation of 3 Crown Executive

Diamond Executive

10000* 12 Months 5 % profit on total sales in every three months Car prices 25 Lac

Crown Executive

Flat prices 75 Lac

,,

Crown Ambassador

Car prices 1.5 core

,,

,,

2.5 Last Five Years Balance Sheet Destiny 2000 Ltd. 5 Years at a Glance

S.N Particulars 10000000 ordinary Shares @ 100 each 1 Sources of Fund

2009-2010 100000000 0

2008-2009 100000000 0

2007-2008 50000000

2006-2007 12000000

2005-2006 12000000

Share Capital

151100000

149100000

26900000

86000000

8600000

Reserve & surplus Retained Earnings

183541992 212245134

230865697 191131774

116289326 90747

6668269 32915890

21511083

319603348 7 374292061 3

494311703

132867859

13853335

74884852

106540917 4

366805024

62037494

104995935

3. Shareholders Fund

Loan & Funds Long Term Liabilities Total Sources of Fund


Application of Fund 3. Fixed Assets & Investment Fixed Assets(WDV) Long Term Loan Research & Development Investment Total Current Assets

284802536

98054070

70313811

19712429

19663574

230746936 7 16022599

106409598 2 10445976

201930445

115372785

71680522

19150556

9517542

295619125

195339125

14589125

11500000

291089079 2

145343535 7

127589125 5 669169910

238830918

173073362

B. Current Assets Inventories

314353264

163735030

123313586

47975116

43334291

Short Term Loan

474455747

235960858

181439330

21304624

11682361

Advance, Deposit & Prepayments Sundry Debtors

186403565 5 74342839

571649217

85455145

44007683

33897212

75403881

71376136

611115141

54873747

Receivables

127338612

38078130

48383387

40962226

26582121

Cash & Bank Balance Total Current Assets

56364675

368608241

159202325

23466128

2703629

291089079 2

145343535 7

669169910

238830918

173073362

Sundry Creditors

88327552

8054381

6575732

3908059

9323281

Short Term Liabilities Payables

67600000

137514

137514

20898508

28253778

123959851 7 35996416

969047690

362223295

98402967

100643936

181761633

112887443

1141189

96752745

121070066

48776055

11079149

5554839

543608576

475890052

190748784

200555433

27145690

1755961336

721348823

335985305

170921523

(302525979 )

(52178913)

(97154387)

2151839

C Current Liabilities

Provision For Income Tax Preferential Creditors Trade Creditors

Total Current Assets 207188380 6 Net Current Assets 839006986 (B-C)


Total Assets

374292061 3

1065409174

366805024

62037494

104995935

2.6 desstiny at a glance Present Sister Concern of Destiny Group. Destiny Shopping Center Ltd. Engaged in the business of Shopping Mall in different cities/towns of the country.

Air Destiny Ltd. Engaged in the business of working as booking Agent of persons and goods for air shipping etc.

Destiny Electric and Electronic Industries Ltd. Destiny Multipurpose Co-operative Society Ltd. A Multipurpose Co-operative Society of the business persons of Destiny-2000 Ltd. having present membership of over 3 lac persons and paid-up capital of about Tk. 300.00 crore. Destiny Tree Plantation Ltd. Engaged in the plantation of trees on commercial basis all over the country. Till date the company has planted over 94 Lac trees on 6293 acres. The target is to raise the plantation number to 6 crore by 2012. Alysha Destiny Agro Complex Ltd. Engaged in the plantation of trees on commercial basis at Satkania, Chittagong. Destiny Hitachi Electric Industries Ltd. Diamond Builders Ltd. A high rise commercial building under implementation. The Dainik Destiny Dainik Destiny, a daily news paper with present asset value of over Tk. 2.00 crore. Destiny Printing and Packaging Ltd. This company is in the process of setting up a most modern printing and packaging project for printing of celluloid films for high quality packaging for exportable products. Destiny Medical College and Hospital Ltd. Destiny Media and Publications Ltd.


Destiny Printing Press

Destiny Developers Ltd. Engaged in the Real Estate development at different cities. Presently owns 9.37 bighas land in Dhaka, Khulna and Barisal cities for construction of commercial and apartment buildings and 11.51 bighas land at Savar for housing project. Boishakhi Media Ltd. Owns Baishakhi TV, a private TV channel with present asset value of over Tk. 14.00 crore. Destiny Education and Health Foundation A Foundation set up for undertaking income generating activities health, nutrition and other projects for greater benefit of the society. Destiny Best Air Lines Ltd. A Foundation set up for undertaking income generating activities. Destiny Agro Industries Ltd. Engaged in the business of cultivating Super High Breed ( SHB) paddy and High Yielding Variety (HYV ) paddy in join venture with agricultural land owners.

Destiny Environment Savings Energy Ltd.

DESTINY SAASCO PROPERTIES LTD. Configure Engineers and Construction Co. Ltd. Destiny Builders Ltd. Destiny Tea Limited. Destiny Security Force Ltd. Destiny Life Insurance Company Ltd. Configure Housing Ltd.

Bondhishahi Cold Storage Ltd


2.7 Targets and Values “The mission of Destiny-2000 Ltd. is to enhance the quality of life by creating self employment scope for unemployed youth leading to promote millions of small entrepreneurs.� Goals : To realize the mission Destiny will : Involve 3 million Distributors in within year 2012. To ensure essential items and house hold appliances worth Tk. 5000 million through its beneficiaries. Produce 100 essential items by establishing 25 sister concerns of its own. Be the highest tax payer company in the country and create 50,0000 individual Tax payers. Establish itself as a welfare company for unprivileged segment of the population. Demonstrate accountability and transparency in business and financial dealings. COMMITMENTS

Ours is a customer focused company thriving fast in both earning and ability to stand out as a leading Multi-Level Marketing Company. Our business initiatives centre on the emerging needs of the customers. Our commitments areTo provide service with high degree of professionalism. To respond to customer needs with speed and accuracy and to share their values and beliefs. To offer first-rated solutions of any problem and issue. To ensure safety and security of the customers. VALUES

Integrity: Conduct all our activities with a sense of deep accountability by being honest within and outside the company. Challenges: Seek not just what we are capable of now but acquire the capacity to achieve what we dream. Team Spirit: Build teams that we are excited to be a part of and that will push us to new heights.


Skills and Process: Upgrade our skills and process constantly to stay on the top. Responsibility: Respect nature, society and stakeholders as the ultimate good business practice. Overview of MLM and Surveyed Net DH-30 3.1 A Brief History of MLM Nobody knows exactly when MLM began, because it really evolved over a number of years, prior to World War II. Most observers agree that Nutrilite – now an Amway subsidiary – was the first true MLM company. In addition to being the founders of network marketing, they were the founders of the vitamin and food supplements industry, way back in the 1920s. So the historical connection between MLM and nutritional products dates back over most of the twentieth century – a fact unknown to most people (especially those who think that, somehow, MLM companies are 11ealiz-come-latelies to nutrition. Most of the major product breakthroughs in that industry have been pioneered by MLM companies, in fact.) The beginnings of MLM In 1949, two young men named Rich DeVos and Jay VanAndel became Nutrilite distributors. In the ensuing decade, they build a large, prosperous 11ealize11tion across America. But, in the late 1950s, a problem arose that was to continue to plague many MLM companies even until now. And it almost sank their business. The manufacturing arm of Nutrilite was owned separately from the marketing arm. And, as often happens in such circumstances (not just in MLM), the marketing arm was seen to be making most of the money. There’s nothing unusual in this. It’s a fact of life that those who connect manufacturers to their markets take the lion’s share of the selling price, in any industry. To make a long story short, a standoff developed between the manufacturer and the marketer. DeVos and VanAndel watched, alarmed, as their distribution network dwindled rapidly due to lack of product and the resulting lack of income from sales. Unable to bring the two parties to an agreement, they decided to create a product of their own that they could supply to what was left of their network. Amway is born What happened next is legendary. In 1959, they formed Amway Corporation. Within ten years, they’d bought Nutrilite, and Amway has rarely looked back ever since. It’s still the largest MLM company worldwide. Of course, that kind of spectacular success soon attracts attention and, before long a rash of MLM companies sprang into existence. But there was also a dark side to the story – one that still causes problems to this day. It didn’t take sharp operators long to 11ealize that they couldn’t take advantage of people under the strict, ethical rules of conduct required by the MLM companies. So they came up


with a counterfeit version, based on a scam from the late 1920s (The Ponzi Scheme) that looked like MLM, but allowed them to fleece people who were basically the same as themselves… lazy and greedy. Thus was born the Pyramid Selling Scheme. The counterfeits soon emerge It’s ironic that people still mistakenly accuse MLM of being pyramid selling when it was actually the reputable MLM companies that first petitioned government authorities to have pyramid selling outlawed. It didn’t take long for legislation to be passed to rub out pyramid selling. But pyramid selling isn’t really a system or structure, despite its cunning name. It’s a mentality – an attitude – which is very hard to legislate against. Consequently, many anti-pyramid laws also discriminate unintentionally against legitimate network marketing, “throwing the baby out with the bathwater.” Over the following decades, MLM has evolved and developed further into the wide array of companies, product ranges, reward plans and cultures that exist today. This unique, powerful system of free enterprise continues to grow, attracting more and more people to it. As we prepare to enter the twenty-first century, MLM has never been so well-respected, so healthy, so attractive or so rewarding. 3.2 A Short Notes on Destiny 2000 Ltd.

Total Member Total Silver Total Gold Total Platinum Total PSD Total Diamond Crown Executive

6618283 7432 3349 830 2632 84 01


Up to 525 Statement On dated 9/9/2011 Impossible is a word, we don’t Believe it For Economic Freedom of Bangladesh needed 290 days More than 5000 peoples are getting distributorships by joining in a day Number One MLM Company in Bangladesh Our Values-------Integrity: Conduct all our activities with a sense of deep accountability by being honest within and outside the company. Challenges: Seek not just what we are capable of now but acquire the capacity to achieve what we dream. Team Spirit: Build teams that we are excited to be a part of and that will push us to new heights. Skills and Process: Upgrade our skills and process constantly to stay on the top. Responsibility: Respect nature, society and stakeholders as the ultimate good business practice. 3.3 Marketing and Human Development Resources Net DH-30 As the surveyed Branch DH 30 uses various marketing resources found during the findings & analysis. Approximately 5000 Marketing Executive are executing this net offices under Diamond Executive Mr. Hasibul Haque Mamun. Every week many of the seminar, Marathon , Celebration programs are organized by DH -30 on owned or hired auditorium in different places of Bangladesh. Many people participate to know about the concept, product and services by giving value. This programs & seminars are organized by the leading of Marketing Executives as silver, Gold, Platinum or P.S.D. This Branches has two big auditorium 600 people can participate to each. And three auditoriums are capable 200 each to show seminar or programs. Five little auditorium are titled for workshop and training. One P.S.D offices where twenty are executing their activities. Two DORA are executing their operations of joining forms as receiving and payments. One IRDC to deliver the products of customers. There are many teams working as rapidly to achieve their goal. Every week they arranges working plan as organizing a team meeting of every team with the help and command of their up-lying. They also organize workshop by each team to develop the morality and their skill. The human development faculty of training which a matter of ambiguous is undoubtedly and excellence job done by marketing executives. Many of the professional trainer trains all of the customers and distributors . This business is not only money making machine but also man making machine. DH-Net 30 executing many professional training done by many young trainer to teach and make the people skill and professional. Everyday many of the training course held in here, such as –


1. Basic training of MLM 2. Special Basic on MLM 3. Invite & Follow up 4. Marketing Skill development 5. Vision Clear 6. Know thyself 7 How to overcome anger 8 Proactive attitude 9. Product demo 10. Human spirit 11 Leadership 12 Special Motivations 13. Power of Positive Thinking 14. Silva Method 3.4 DORA section Every P.S.D can occupy a Dora to drop the form under his team . When a product is sold with the documents then the seller drop his form through nearest DORA by on line . The authority receives all the documents necessary with money and entry them in software. Then printing the Money receipt by issuing the seal and signature of authority. Then the authority delivers his money receipt to customers. 3.5 Product Delivery section The IRDC which roles to deliver the product of customers. As everything is occupied through on line so that in product delivery cases a customer is sent a verification code in his mobile that he can reserve to get the product by showing or entering the code no to the IRDC. Each of the customers submit his money receipt to IRDC then authority sends a verification code to the customers mobile . Hence the customers submit the verification code to the IRDC than he delivered his product to the customers. Phase 4 Literature Review 4.1Terms of Services Services included all economic activities whose output is not a physical product or construction, is generally consumed a , the time it is produced and provides added values in forms (such as convenience , amusement, timeliness or health) that are essentially intangible concerns of its first purchaser. (Zeithaml and Bitner, 2003) -Intangibility- The exact nature of a service is often difficult to define , the product cannot be handled , and –ownership of an object is not transferred. Service is experiential rather than concrete and thus quality is difficult to define and measure -Customer Participation- normally the customer is directly involved in the delivery of the service, e.g hospital treatment can’t be given if the patient is absent.


-Simultaneity- production and consumption of as service are usually simultaneous and therefore not storable. -Heterogeneity- because the interaction between the customer and the provider is a unique experience , the same service can be perceived differently by different customers and by the same customer on different occasions. Other customers can affect the experience of a service , e.g. a quiet weekend at a small hotel can be ruined if two rival football teams are also staying in the hotel. - Indivisibility- of operations and marketing – frequently the same people do the selling and delivery of the service . This has implications for training and the efficiency of the operation. Process design needs to ensure a smooth flow from one stage to the next. -Geographical dispersion-most services need to be reasonably near to the customer. Use of the information technology is increasingly allowing major service organizations to centralize large parts of their process, while retaining a local interface with the customer. 4.2 Terms of Quality The totality of features and characteristics of a product or service that bear upon its ability to satisfy stated or implied needs (Quality Vocabulary, ISO 8402). It is the fitness for purpose or use, (Juran) Quality is the total composite product and service characteristics of marketing , engineering, manufacture and maintenance through which the product and service in use, will meet the expectation by the customer. 4.3 Terms of Service Quality It is the combination of service and quality that includes a number of different facets. Lehtinen and Lehiten (1982) defined service quality in terms of physical quality, interactive quality and corporate (image) quality. Physical quality relates , to the tangible aspects of the service. Interactive quality involves the interactive nature of services and refers to the twoway floe that occurs between the customers and the service provider, or his/her representative, including both automated and animated interactions. Corporate quality refers to the image attributed to a service provider by its current and potential customers, as well as other publics. Lewis and Booms (1983) Define clearly states that service quality is a measure of how well the service level delivered matches customer expectations and delivering quality service means conforming to customer expectation on a consistent basis. In such earlier studies , researchers defined service quality as the extent to which a service meets customer’s need or expectations ( Lewis and Mitchell, 1990, Dotchinand Oakland, 1994; Asubonteng, McCleary and Swan, 1996; Wisniewski and Donnelly, 1996). Zeithaml (1987) defined that service quality is the customer’s judgment about an entity’s overall excellence or superiority. It is a form of attitude and results from a comparison of expectations to perceptions of performance received. Zethaml , Berry , and Parasuraman (1990) on the other hand, have chosen to define service quality “as the extent of the discrepancy between customers expectations or desires and their perceptions. Service quality has been also defined as the consumers overall impression of the relative inferiority or superiority of the Christopher, Payne , and Ballantyne (1993) have defined service quality as the ability of the organization to meet or exceed customer expectations. Service quality is believed to depend on the gap between expected and perceived performance ( Anderson ,


Fornell, and Lehmann, 1994). Gitlow , Oppenheim ,and Oppenheim (1989) also stated that service quality is the extent to which the customers or users believe the service surpasses their needs and expectations. Service Quality has become an increasingly important factor for success and survival in the banking sector. Provision of high quality service aids in meeting several requirements such as customer satisfaction and its consequent loyalty and market share, soliciting new customers, improved productivity, financial performance and profitability (Collet et al , 1990; Jilian and Ramaseshan, 1994: Lewis ,1989, 1993; Llosa et al, 1998). 4.4 Service Quality Dimensions: Since a conceptual model concerning perceived service quality was proposed by Parasuraman, Zeithaml, and Berry (1985),service quality dimensions have become an area of interest in marketing research ( Bolton and Drew, 1991b; Brown and Swartz , 1989; Carman, 1990; Cronin and Taylor, 1992, 1994; Zeithaml et al,1996) One of the important issues related to service quality is the dimensions of service quality, and the measurement tool, SERVQUAL developed by Parasuraman et al. (1988) has been the starting point of the controversy in this area. Parasurarnan et al. (1988) identify five quality dimensions, which link specific service characteristics to consumer expectations of quality. These five basic dimensions are reliability, responsiveness, assurance, empathy, and tangibles. 1) Reliability: Reliability is defined as the ability to perform the promised service dependably and accurately (Parasuraman et al,1988). Reliability involves consistency of performance and dependability. It means that the firm performs the service right first time. It is also means that the firm honors its promises. Specifically it involves accuracy in billing, keeping record properly, delivering the product in right time and performing the service at the designated time. Reliability refers to the extent to which retail service provides what was promised when it was promised ( Dabholkar, Thorpe, and Rentz, 1996) 2) Responsiveness : Responsiveness is defined as the willingness to help customers and provide prompt service (Parasurman et al, 1988) It concerns the willingness or readiness of employees to provide services. Responsiveness involves timeliness of service like posting a transaction slip immediately, returning a phone call quickly, giving prompt service , and setting up appointments quickly. According to Zeithaml et al.(1990), responsiveness refers to the motivation to help (internal customers and provide prompt service to them. 3) Assurance : Parasuraman et al. (1988) defined assurance as the knowledge and courtesy of employees and their ability to convey trust and confidence. Assurance involves trustworthiness, believability and honesty. It involves having the customer’s best interest at heart. Contribution to credibility includes company name, company reputation, personnel: how much a hard sell is employed in interactions with the customer (Parasuraman et al, 1985) According to Bahia and Nantel (2000), assurance represents the friendliness and courtesy of employees- personalized attention to the customer and the ability of employees to inspire confidence . Zeithaml et al. (1990) defined assurance as the customers. 4) Empathy: According to Parasurraman et al. (1988) empathy is defined as caring and individualized attention provided to customers. Empathy refers to graciousness, respect,


consideration and friendliness of contact personnel including receptionists, telephone operators, etc. It includes consideration for the consumer’s property, clean and neat appearance of the contact personnel. 5) Tangibles: Tangibles are the physical facilities, equipment, and appearance of personnel in services (Parasuraman et al,1988). It includes all the physical evidence of the service like the facilities, appearance of personnel, tools or equipment used to provide the service, physical representations of the services (e.g. statements), and even other customers. Zeithaml et al.(1990) stated that tangibles are the appearance of physical facilities, equipment, personnel, and communication materials. Tangibles of service are the tangible facts of the service facility (equipment, signage, employee appearance, etc.) 4.5 Customer Service: It is the service provided in support of a company’s core product. (Zeithaml and Bitner, 2003) In Brief, good customer service is the key to a successful organization and customer relation. Furthermore, good customer service fosters growth because each satisfied customer will tell at least we other people about the product or service of the business, some of who will become customers. 4.6 Mean: Mean is the average value that is obtained by summing all elements in a set and dividing by the number of elements (Malhotra, 2003) 4.7 Variance: Variance is the mean squared deviation of all the values from the mean ( Malhotra, 2003). 4.8 Standard Deviation Standard deviation is the square root of the variance ( Malhotra, 2003) Phase 5 Analysis of Customer’s Perception As the researcher set his sample size as 100 from the concerned population for the research, he took a survey on 100 customers. The survey was made by the closed ended structured questionnaire containing 16 items or questions with five point Liker scale in order to measure the perception about the service and product quality of Destiny Group. The Researcher had classified the total customers into four classes and responses had been collected according to these classification. The researcher went to the DH-30 Net office of Destiny 2000 Ltd. And found many customers who had come to know the MLM concept or to have the product and varieties type of needs of Destiny Group. There the researcher selected the customers by random sampling and conducted the survey. As the questionnaire to was written in English, and included some technical words, the researcher had to explain some parts of the questionnaires into Microsoft Excel. Then by using the software he came up with the findings which helped to explain the Client’s sensing about MLM and Destiny Group. As mentioned earlier the questionnaire had 16 items and or question one customer had to respond any of the points among the five Likert scale. For the reason under each item the researcher got 100 answers (As there was no missing data) within the five point of scale.


5.1 Analysis of the individual items or questions:Percentage of the responses on each of the five different scale points calculated from the total responses of 100 customers on each item or question. 5.1.1 Question No: 1 The Formalities followed for being a distributorship by the company are necessary Question No 1 40 35 30 25 20 15 10 5 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Fig-1: Customers response regarding question 1.

The above question states that the formalities followed to get a distributorship by Destiny 2000 Ltd. are necessary. About 30 % customers think the formalities are necessary. Then about 25% are strongly agree with this and 25 % are neutral. 15% of the total portion shows disagree and very few of them strongly disagreed with this service. With the significant portion of employee with other classes of customers had shown dissatisfaction with this service. The mean value regarding all the responses is 3.7, which means the customer’s perception regarding this statement is good. 5.1.2 Question No 2 Response to MLM concept in Bangladesh


Question No 2 30 25 20 15 10 5 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Fig:3 Customer’s response regarding question 2

The above statements states that the response to MLM concept in Bangladesh where about 25 % customers think positive about this. Then about 20% are strongly agree with this and 15 % are neutral. 25% of the total portion shows disagree and 15% strongly disagreed with this view. With the significant portion of employee with other classes of customers had shown dissatisfaction with this customers. The mean value regarding all the responses is 2.9, which means the customer’s perception regarding this statement is not bad but good. 5.1.3 Question No 3 The product of Destiny Group is available everywhere Question No 3 35 30 25 20 15 10 5 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Fig-3: Customers response regarding question 3

The above statements state that the product of Destiny Group is available in everywhere that means where about 20 % customers think positive about this. Then about 20% are strongly agree with this and 30 % are neutral. 25% of the total portion shows disagree and 15% strongly disagreed with this view. With the significant portion of employee with other classes of customers had shown dissatisfaction with this customer. The mean value regarding all the responses is 2.8, which means the customer’s perception regarding this statement is not bad but good.


5.1.4 Question No 4 Online service of Destiny group is satisfactory Question No 4 45 40 35 30 25 20 15 10 5 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Fig-4 Customer’s response regarding question no 4

The Statement shows the satisfaction level of the customers about the online service of Destiny Group. Most of the customers 40% satisfied with the service. Among them 11% are Students , 9% are teachers , 10% are officers & employees & 10% are others. Then 20% customers are neutral. This comprises of teachers & others 10% each , Officers & employees 5% , and students 3% and others are 2% . A significant portion 8% of students has disagreed with the service. About 3% of Officers & employees 2% are teachers & 2% are of other categories . And few customers 10% of all classes are strongly dissatisfied with this service. The mean value regarding all responses is 3.40, which means the customers perception regarding this statement is very good. 5.1.5 Question No 5 The Authority of Destiny Group tries to provide its services at the time it promises to do Question No 5 45 40 35 30 25 20 15 10 5 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Fig-5 Customer’s response regarding question no 5

The Statement shows the satisfaction level of the customers about the timely service of Destiny Group. Most of the customers 30% strongly satisfied with the service. Among them 8% are Students , 9% are teachers , 10% are officers & employees & 3% are others. Then


25% customers are neutral. This comprises of teachers & others 10% each , Officers & employees 5% , and students 6% and others are 4% . A significant portion 7% of students has disagreed with the service. About 3% of Officers & employees 2% are teachers & 3% are of other categories . And few customers 5% of all classes are strongly dissatisfied with this service. The mean value regarding all responses is 3.40, which means the customers perception regarding this statement is very good. 5.1.6 Question No 6 The Training of Human Development is satisfactory Question No 6 90 80 70 60 50 40 30 20 10 0 -10 -20

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Fig:-6: Customer’s response regarding question no 6

The Statement shows the very important level of the customers about the training development service of Destiny Group. Most of the customers 80% strongly satisfied with the service. Among them 40% are Students , 10% are teachers , 25% are officers & employees & 5% are others. Then 5% customers are neutral. This comprises of teachers & others 1% each , Officers & employees 2% , and students 3% and others are 0% . No portion of disagree & strongly disagreed found against this perception. The mean value regarding all responses is 4.00, which means the customer’s perception regarding this statement is extremely good. 5.1.7 Question No 7 When one has a problem Destiny Group’s authority shows sincere interest in solving it. Question No 7 35 30 25 20 15 10 5 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree


Fig:-7: Customer’s response regarding question no 7

The above question states that the formalities followed to be sincere to solve the problem of customer by Authority where about 30 % customers think that they are strongly sincere. . Then about 25% are agreeing with this and 20 % are neutral. 15% of the total portion shows disagree and very few of them strongly disagreed with this service. With the significant portion of employee with other classes of customers had shown dissatisfaction with this service. The mean value regarding all the responses is 3.2, which means the customer’s perception regarding this statement is good. 5.1.8 Question No-8 You feel safe by practicing MLM on behalf of Destiny Question No 8 45 40 35 30 25 20 15 10 5 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Fig:-8: Customer’s response regarding question no 8

The above diagram execute that the safety felt by customers to practice MLM on behalf of Destiny where 35 % of customers think that they are strongly positive. Then about 25% are agreeing with this and 20 % are neutral. 15% of the total portion shows disagree and very few of them strongly disagreed with this service. With the significant portion of employee with other classes of customers had shown dissatisfaction with this service. The mean value regarding all the responses is 3.2, which means the customer’s perception regarding this statement is very good. 5.1.9 Question No-9 Up-lying is helpful to create and retain the market


Question No 9 60 50 40 30 20 10 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Fig:-9: Customer’s response regarding question no 9

The Statement shows the very important level of the customers about the up lying activities to create & retain the market of Destiny Group. Most of the customers 50% strongly satisfied with the service. Among them 35% are Students, 5% are teachers, 7% are officers & employees & 3% are others. Then 5% customers are neutral. This comprises of teachers & others 1% each , Officers & employees 1% , and students 3% and others are 0% .20 % shows disagreed & 5% strongly disagreed found against this perception. The mean value regarding all responses is 3.90, which means the customer’s perception regarding this statement is very good. 5.1.10 Question No-10 By MLM or Network Marketing, Possible to change the economy of Bangladesh—That the Malaysia did. Question No 10 60 50 40 30 20 10 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree


Fig:-10: Customer’s response regarding question no 10

The Statement executes that the very important level of the customers about the Network Marketing activities to change the economy of Bangladesh. Most of the customers 50% strongly satisfied with the service. Among them 35% are Students, 5% are teachers, 7% are officers & employees & 3% are others. Then 5% customers are neutral. This comprises of teachers & others 1% each , Officers & employees 1% , and students 3% and others are 0% . 20 % shows disagreed & 5% strongly disagreed found against this perception. The mean value regarding all responses is 3.90, which means the customer’s perception regarding this statement is very good. 5.1.11 Question No-11 The people of Bangladesh generally having miss conception about MLM and DestinyQuestion No 11 45 40 35 30 25 20 15 10 5 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Fig:-11: Customer’s response regarding question no 11

The above diagram execute that the people of Bangladesh generally having miss conception about MLM and Destiny where 40 % of customers think that they are strongly agree. Then about 20% are agreeing with this and 10 % are neutral. 20% of the total portion shows disagree and 10% strongly disagreed with this statement. With the significant portion of employee with other classes of customers had shown dissatisfaction with this statement. The mean value regarding all the responses is 3.2, which means the customer’s perception regarding this statement is negative. 5.2 Overall analysis In This part a mean and standard deviation has been calculated combining all the data gathered from the survey to find out the answer of the research question. And a graph has been shown about all the perception according to the questions.


4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

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9

10 11

Phase 6 Recommendations and Conclusions Recommendations of this report have been made on the basis of the research findings on Destiny Group, Net-30 Moghbazar. Destiny is a MLM oriented company. Its Business profit depends on its marketing and product quality also services. That is why the authority always should be aware about the product quality and performance as service quality can lead to increase customer satisfaction, and thus can contribute significantly to performance. Moreover, the multi level marketing consequently indispensable in this aspect of customer satisfaction. It is very difficult to recommend about this topic because of research restrictions and unavailability of data. Despites these problems, Destiny Group should look at 1 3 4

Should offer more facilities to the customers such as quick product delivery services. They should provide one stop service to its customers. The internal environment of DH-30 should more attractive. And it should keep neat and clean. 5 The employees should take time to hear the problems of the customers. It will help them to deliver the right service. 6 When a customer move to net office with an unusual problem the employees will have to act positively so that it creates confidence in the heart of the customer that his/her problem will be solved. 7 Materials associated with services should more attractive and cheap. 8 Destiny should launch more useful goods as needed daily life. 9 Product availability should more near to the customers. 10 Training availability should more near to its marketing Executive with cheap price. 11 Seminar, Program, and Celebrity show should more attractive and glorious. By ensuring the above recommendations the management of Destiny Group can improve their Product and service dimensions and create a good image in the customer’s mind.

Conclusions


As the largest MLM company in Bangladesh is operating every corner of the country providing the marketing opportunity to create employment and useful products and services to the customers. The area where there is no link of the modern competitive marketing sector, there one can find Taknaf to Tatulia only destiny Networking System. The researcher found that the employees and and marketing executives of Net DH-30 pass very busy time for all official and unofficial time. They really works hard as marketing executive as their own business and for professional responsibility. The Researcher has found that most of the customers who rolling marketing executives of the Destiny 2000 Ltd. are strongly agree about their products and services ; O satisfies these customers, the management can take some attempts , noted earlier as recommendations . Considering the volume of operation and limitations of resources and proper management the Destiny Group is doing very well than others. If its possible for Destiny Group to provide recommended services, the interior sensing of the customers will be more positive about the MLM concept and Destiny Group.

References Marketing Plan of Destiny 2001-2010. Recommended by Md. Rafiqul Amin Basic Training of Multi Level of Marketing Executd by Azad Rahman –Diamond Executive. Annual Financial report of Destiny Group. Dotchin, J.A and Oakland , J.S (1994). Total Quality Management in Services Part 2: Service Quality . International Journal of Quality and Reliability Management,11(3), 27-42 Feigenbaum, A.V (1986) Total Quality Control , 3 d edn . McGraw- Hill , New York Malhotra, N.K (2003), Marketing Research, (3 d edition), Prentice –Hall Product Dimensions of Destiny Group Class Lectures of Destiny Sales and Training Centre. Modern theory of Direct Marketing www.destiny-2000.ltd. www.mlm.com www.amway.com www.infodestiny.com


An analysis of Customer’s Interior perception on Multi Level Marketing (MLM) and Destiny Group