CHAPTER 01

BASIS OF REPORT
1.1 INTRODUCTION

Commercial vehicle industry is characterized as a highly competitive sector in

Bangladesh. Many local and international Vehicles Company’s already in operation and
many more are adding day by day. Commercial vehicle industry is becoming increasingly
competitive by the day. With the global slowdown in the face of rising competition, as the
demand for better service increases, the commercials vehicles industry is coming with
innovative ideas and service. In order to survive in the competition

Commercial vehicle industry in Bangladesh currently manufactures auto rickshaws and a

locally designed three-wheeler motor vehicle, Mishuk, utilizing an engine from Honda. The
country has a few large car plants which assemble the Mitsubishi Pajero Sport, Hino bus,
and also the Tata bus and motorcycles.In 2009, the Malaysian Agate group proposed to
build a car manufacturing plant in Bangladesh in cooperation with Walton, which itself is
preparing to produce motorcycles. In the same year, car manufacturing company TagAZ
announced that they would build their third factory in Bangladesh, aiming for exporting. The
plant is to be completed by 2012. In February 2010, Japanese car manufacturer Mitsubishi
officially proposed to the Bangladesh government to manufacture the Mitsubishi Pajero
Sport in collaboration with Pragoti Industries, with a goal of production in 2011.

Auto King Limited was starting their operation in November 2014. They provide
recondition & brand new cars. It has created one of the largest networks among all the
areas in Bangladesh over the year. Their cars are imported directly from Japan, for their
after sell service and good quality product their popularity is increasing day by day.

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 1.2 Rationale of the Study:

I am the student of Marketing as a fulfillment MBA degree I have to a complete an

internship report. My honorable supervisor Mahathy Hasan Jewel assigned me to prepare
this report on “7 p’s of Commercial vehicle industry in Bangladesh: A study on Auto King
Limited.” This had the formal approval of my supervisor. This report is prepared based on
the qualitative research. I have got an opportunity to work in Auto King Limited as an intern.
The internship program helps to get some practical knowledge about the practical field work
of businesses. And the internship report is a prove of that practical experiences of mine.

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 1.3 Objective of the study:

The primary objective of this report is to comply with the requirement of my course. The
Ultimate Objective of the Study is something broader. The main intent of this report is to
analyze the demand of commercials vehicles and their customer’s satisfaction. The
objectives of this study are dividing into two parts. Like:-

GENERAL OBJECTIVE:

 To identify the present state of Auto King Ltd.

 To know its competitors and the marketing policy it takes to overcome its
competition.

SPECIFIC OBJECTIVES:

 To get an idea about the business activities of Auto King Ltd.

 To describe Cash Selling, Installment Selling, Hybrid Selling & other facilities
provided by it.
 To learn how Auto King convinces and attract customer.

 To know the promotional activities are taken by Auto king for their product

 To provide the suggestions for improvement.

 To learn about the product delivery system taken by Auto king.

 Finally, to sketch out the overview of Auto King Ltd.

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1.4 METHODOLOGY OF THE REPORT

Methodology is the systematic, theoretical analysis of the methods applied to a field of

study. It comprises the theoretical analysis of the body of methods and principles associated
with a branch of knowledge. A methodology does not set out to provide solutions - it is,
therefore, not the same as a method. Instead, a methodology offers the theoretical
underpinning for understanding which method, set of methods, or so-called “best practices”
can be applied to specific case, for example, to calculate a specific result.To make this report
more expressive and presentable, both primary and secondary sources of data were used
widely.

1. Primary data

2. Secondary data

Primary data:

This report has prepared through extensive use of primary data. It is collected from group of
people who are related with this company. The following methods are used in collecting
primary data. These are

a) Direct interviewing: In this study data have been collected from the manager,
executives, officers and company clients with the protested and well designed
questionnaire.

b) Personal communication: I have gathered data through personal communication with

the officers, executives, managers and clients of the company.

c) Observation method: I went to every department of the Company and observe their
activities.

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Secondary data:

Secondary sources are those which are published or processed materials. I have collected
secondary data from the following sources-

1. Various types of official documents.

2. Some published research report, books, journal and articles.

3. Personnel departments of the company.

4. File study, some books on company theory and practice.

5. Progress reports.

6. Product Catalogs .

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 Research

Framework

Commercial vehicle industry in Bangladesh: An analysis of AKL

Primary Data Secondary Data

 Interview  Brochures
 Survey  Newsletters
 Conversation  Product Catalogs
 Observation  Website
 Annual Report

Problem Findings and recommendations

Fig 1.0: Conceptual Research Framework of the report

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1.5 REPORT APPROACH:

After getting permission from the HR of Auto King limited my supervisor asked me to
complete the report upon Commercial vehicle Industries in Bangladesh and also collect a
complete overview of Auto King limited. As per HR’s permission I did my internship with
Auto King limited. During this period I learned a lot from Auto King limited official and also
learn that there is lot more to learn which is not possible in around three months’ of
internship. I took help of the officers after the rush hour (10 am – 3 pm) by asking them
some quarries to get information about my topic. Mostly I kept observing how they are
doing in home marketing and other things. Web site of the company, leaflets, brochures,
inserts, forms, annual report help me a lot to figure out information about marketing
process of Auto King limited. During my internship period I keep doing drafting of the
information I collected every day and after internship period I put them together to
complete the report.

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1.6 LIMITATION OF THE REPORT:

Though I have obtained wholehearted co-operation from employees of Auto King limited
they could not manage enough time to deal with me. On the way of my study, I have faced
the following problems that may be termed as the limitation.

 Budgeted Time :

The first obstruct is time itself due to time limit, the scope and dimension of the study has
been shortened. It is a big organization. It was very tough to deal with this company within
this short time.

 Data Insufficiency :

It was difficult to collect data from such a big organization. Because of some divisional and
confidential problem, I could not get enough information.

 Restricted Policy:

Company policy was not disclosing some data and information for obvious reasons.

 Personal Limitation:

As some assumptions were made with the help of limited information, there may be some
personal mistake in the report.

 Restricted Job:

It was very difficult to collect the information from various incumbents for the job
restriction.

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CHAPTER 02

LITERATURE REVIEW

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2.1 BACKGROUND

Auto rickshaws have been producing in Bangladesh since 1980s and local production of
motorcycle begun since early 2000. Foreign vehicles have been assembling since past 30
years as well and now several automobile companies are on discussion to build automobile
factories in the country. Pragoti is the state-run automotive industry which assembles
Mitsubishi Pajero Sport, Tata bus and minitruck, and Ashok Leyland minibus. Some privately
owned automotive industries are Aftab Automobiles, Runner Automobiles and Walton.
Bangladesh is set to become an automaker by the next two years, as a South Korean
investment company announced a plan to invest $2 billion for setting up a Korean brand car
manufacturing plant in the country. The proposed car unit is expected to go into production
in 2012, targeting to make 50,000 Korean Tagaz brand cars a year, and sell those in both
local and international markets. The plant will also manufacture cars to be branded locally.
If the plant is set up in time, it will be the first-ever car making venture in Bangladesh.
Industries Minister Dilip Barua formally unveiled the $2 billion investment plan, and termed
it as a good sign for Bangladesh amid a sluggish foreign investment flow. Cimillae
Development Co Ltd, the local agent of Korean investment company CCGI, will coordinate
the investment implementation. Abdul Mannan, managing director of Cimillae
Development, said local customers will get a Tagaz brand new car at only Tk 7 lakh. The
company has already acquired land at Bhairab in Narsingdi for the plant. Mannan said the
plant will require two years to be set up. As many as 15,000 jobs will be created to run the
car manufacturing plant. CCGI Chairman Lee Young Choung said his company has already
decided to invest more in Bangladesh besides the car manufacturing plant. He said CCGI has
plans to invest in 30 sectors in future. Presently Japanese reconditioned cars dominate the
Bangladesh market. Around 20,000 used cars are imported each year, while the number is
2,000 for brand new cars. Some brand new carmakers like Ford have already initiated move
to enhance their presence in Bangladesh. Japanese Toyota still leads the market in both
used and brand new car segments. As the wave of globalization has directly affected the
automobile industry and the buyer behavior in the car market, the study of how marketing
strategies influence buyer behavior has assumed importance in the automobile industry in
general, and in the Bangladesh car market in particular. It has thrown open several

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challenges to the car manufacturers in formulating effective and competitive marketing
strategies for growth and market acceptance. It also fosters the process of understanding
why a consumer or a buyer makes a car purchase. Without such an understanding the car
industry will find it very difficult to respond to the needs and wants of the Bangladeshi
consumers. It is challenging to understand how consumers respond to the promotion used
by marketers in the marketing of cars. If car manufacturers and car dealers could
understand the customer preferences and perceptions better than their competitors then it
is potentially a significant source of competitive advantage for the car manufacturers. Hence
the study makes an attempt to find significant reasons why the car dealers spend
considerable time, money and effort to learn Bangladeshi consumers brand preferences. Of
the basic principles governing the current competitive automobile markets are customer
orientation and belief in customer-centeredness. At present, the competitive market forced
dealers to import vehicles based on customer needs.

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Table 2.0: Different brands of vehicles in Bangladesh
Products category Brand names
Heavy Bus Hino, Mitsubishi, Isuzu, Volvo, Tata, Ashok
Mini bus Hino, Mitsubishi,
Leyland, etc. Isuzu, Toyota, Sawraz Mazda,
Tata, Eicher, etc.

Microbus Nissan, Mitsubishi, Toyota, etc.

Heavy truck Hino, Tata, Bed Ford, Isuzu, Ashok Leyland

Mini Truck Hino, Tata, Mitsubishi, Isuzu, Toyota, Eicher,
Sawraz Mazda, etc.
Motor Car Toyota, Mercedes Benz, Nissan, Mitsubishi, Ford,
Suzuki, Dewoo, Proton Saga, Proton Vira, Hyundai,
BMW, Maruti etc.

Four wheels Toyota, Tata, Mitsubishi, Nissan, etc.

Auto tempo Bajaj, Krishan

Scooter Bajaj, Krishan

Motor-cycle
Honda, Xingfu, Jialing, Jangshen, Yamaha, Suzuki,
Hero, TVS Victor, Bajaj, Vespa, etc.
Light & heavy commercial vehicles Nissan, Dewoo, Huyandi, Volvo, Ashok Leyland,

Tata, Hino, Mitsubishi, etc.

Farm and agricultural vehicles Hyundi, Dewoo, Dongfang, Dongchang, etc.

aa

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 Basically, parts and components are required for the above types of vehicles
from countries of origin or from other reliable sources. Use of parts and
components has a positive co-relation with number of vehicles in use in the
country. During the last five years, the following vehicles were imported in
Bangladesh:

Table 2.1 :Various types of vehicles in Bangladesh during 1994-99 (Million Taka)
Vehicle/Year 1994-95 1995-96 1996-97 1997-98 1998-99
Two & Three Wheelers
Taxi 2,235 2,262 2,295 2,335 2,376
Auto-rickshaw/three wheeler 47,145 57,452 64,874 69,379 89,317
Motor-cycle 134,303 142,596 152,641 162,566 165,460
Light & Heavy Commercial Vehicles
Bus/ Minibus 23,314 24,113 24,882 25,637 26,707
Micro-bus 6,259 7,665 8,993 10,007 12,560
Trucks 34,936 37,534 39,348 40,336 42,756
Jeep 9,425 9,646 9,884 10,098 10,346
Car 39,454 43,856 49,054 52,588 56,377
Farm & Agricultural Vehicles
Tractor 2,702 2,806 2,929 2,981 3,119
Trailers 1,794 1,801 1,817 1,826 1,877
Others 2,543 2,772 3,500 4,552 9,770
Total 304,110 332,503 360,217 382,305 420,665
Source: Statistical Year Book of Bangladesh 1999 (12th edition)

Car buyers have a number of enduring perceptions, or images, that are particularly
relevant to their brand preferences. A major factor affecting personal relevance and
motivation is perceived risk, the extent to which the car buyer is uncertain about the
personal consequences of buying, using or disposing of a car brand. If negative outcomes
are likely or positive outcomes are unlikely, perceived risk is high. Perceived risk is
considered in the present study as the uncertainty that car buyers face when they cannot
foresee the consequences of their purchase decisions. The degree of risk that car buyers
perceive and their own tolerance for risk taking are factors that influence their purchase
strategies

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With the global slowdown in the face of rising competition, the commercial Vehicles
Company’s are constantly looking for ways to develop their market and product offers to
remain ahead of others.

At the same time the process of commercials vehicles industry is becoming faster, easier
and the sector is becoming wider. As the demand for better service increases, the
commercials vehicles industry is coming with innovative ideas. In order to survive in the
competitive field of the transportation sector, all commercials vehicles industry are looking for
better service opportunities to provide to their clients. While concluding the report on the demand
and supply analysis of the automobile parts and components sector in Bangladesh, the following
issues and findings have come out having importance:

• There is a steady growth in the use of various types of vehicles in Bangladesh. Reasons are
increased economic activities, high degree of mobility of people for different purposes, improved
bridge and culverts, roads and highways, etc. Increased trade, commerce and export have also
created additional demand for various types of automobile. Demand of construction vehicles and
auto equipment used in construction works also increased to a great extent due to the increased
number of on-going construction works both in private and public sector. On the top of that, the
lifestyle of the Bangladeshi people particularly the middle class in the urban areas have been
changing very fast and improving, which has resulted in greater movements and greater use of
vehicles in thecountry.

• Bangladesh does not have any vehicles industry except a few private sector automotive
assembling companies and one government owned assembling plant named Progati Industries
Limited who has entered into a collaborative arrangement with Ashoke Leyland of India. All these
local private assembling plants are established in collaboration with the foreign companies.

• The local assemblers are using mostly the imported parts and components except a very few local
components like body, battery, plastic and rubber components, etc.

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• Only the battery for various types of vehicles is being produced in Bangladesh and it is also being
exported to other countries.

• Locally produced parts and components are not durable and they lack quality standard, and are
not well-designed compared to the imported brands available in the market.

• Most of the vehicles are being imported from countries like Japan, India, China, South Korea,
Malaysia, Indonesia, Italy, UK, Germany, France, USA, etc. through their local agents in Bangladesh.

• Domestic parts and components industries are not developed at all due to lack of
adequate attention from the government, skilled manpower, absence of large amount of
capital investment required, technology up-gradation, absence of suitable foreign
collaborators and traditional small market size in the country, etc.

• Importers are facing problems while importing various types of parts for lack of
transportsecurity, unexpected and “whimsical” interference of customs department, etc.

• Parts and components are mainly being imported by road from India and by sea from
other sources. Limited quantities are also imported by air on emergency basis.

• The use of various types of motor parts is being influenced by several groups of people
involved in this sector and they are technicians in the workshop, retailers promoting their
imported spares, automobile engineers/managers of large private and government
corporate houses.

• The government under its development program is encouraging use of motor vehicles and
buses in the major cities by imposing restrictions in the use of three wheeler human carriers

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which are considered dangerous to environmental pollution. The World Bank has extended
support to float more than 10,000 commercial vehicle i.e. taxi cab/buses in the capital city.

Auto King limited started their journey in Bangladesh on November, 2014. Auto king ltd
is the dealer, whole seller, retailer and the importer of Toyota cars .Now they are also
import the other brands vehicle like Nissan, Hyundai, Honda, Mitsubishi, Kia, Tata, and
Volkswagen both light and heavy. This private limited company was registered under
company’s act of 1913 and was incorporated in Bangladesh on 11th November, 2014. In
2014 company only established as a Toyota car importers but 3 months later they also
starting import of other brands of vehicle including both light and heavy.

Sources:

 http://www.skyscrapercity.com

 Md. Safiqul Islam (Manager, Sales and Marketing)

 http://www.bdresearch.org/home/attachments/article/430/Bangladesh_Final_Surv
ey.pdf

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2.2 Auto king ltd Vision, Mission and Goal:

VISION

“Providing better services to all customer segments as days to come”

MISSION
“To be continue with the exiting marketing position and to achieve the yearly sales target.”

GOAL
“Create an environment where providing an excellence quality control and customer
satisfaction.

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 2.3 Values:

Auto king has built its strength on more than years of experience. The cornerstone of the
company’s success is sharing knowledge to create relevant solutions – shaping the best
thinking to reflect the ideas of a new age. Their corporate strategy emphasizes speed,
efficiency, flexibility and innovation in every facet of the company’s operation – from
product manufacturer to distribution. Auto King Limited strives to achieve the ultimate goal
of satisfying its customers. Honesty, integrity and respect for people are our core values and
are the basis on which they do business. Through a nation-wide commitment to advancing
this objective, Auto king ltd. and its many partners who share this commitment, have
succeeded in creating a national and international network that comprises of many
subsidiaries and affiliates. They are paving the path of their journey into a new millennium
for the next generation.

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2.4 Management Profile :
 Mr. Biplab Mallik (GM, Auto king Limited.)
 Md. Safiqul Islam (Manager, Sales and Marketing)
 Mr. Bikash Chandra Saha (Executive, Sales and Marketing)

Fig :2.0 Organogram

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2.5 FEATURES OF AUTO KING LIMITED

Company is intermediary institution like other commercial company; Auto King Limited also
some special features. Under I try to mention all of them:

 MANAGEMENT OF THE COMPANY:

The executives and other officers of the Auto King Limited are very experienced. Maximum
of their officer are experienced. They have good educational background and previous
working experience in the relevant company .

 LEGAL SRUCCTURE :

It's a compulsory matter for a company to achieve to legal entity. The stronger legal entity
leads to effective companying program. Auto King Limited has a strong legal entity.

 ORGANIZATIONAL STRUCTURE:

Auto King Limited has a well-set organization structure. Organization structure is a

precondition of efficient bearing activities.

 LOCATION :

It's very useful for the Company to be a central location. The head office and branches of
Auto King Limited are located in the central commercial point of the capital.

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  SECURITY

The Auto King Limited is totally a secured Company. The client of the Company gets a heavy
security on their advance payment of their car before the car hand over.

 ONLINE SERVICE:

Auto King Limited now serving to its customers through www.autoking-bd.com. People
now can choose their car and order them online. They also can pay the price of the product
through online payment system.

Source: ( www.autoking-bd.com )

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 2.6 SWOT ANALYSIS OF AUTO KING LIMITED

Auto King Limited internal strengths and weakness & external opportunities and threats
as I have explored in the past 3 month is described below :

Fig: 2.1 SWOT ANALYSES

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STRENGTHS OF AUTO KING LIMITED

 FINANCIAL SUPPORT

Auto King limited is financially sound company backed by the resources base of its board of
director, who has well reputation in financial sector and different kind of business. As result
customer fell comfortable in dealing with the company.

 DYNAMISM
Auto King limited draws its strength from the adaptability and dynamism it possesses. It
has quickly adapted the new technology. They always adding up to date and new
technology product and body part in their order category.

 EFFICIENT MANAGEMENT SYSTEM

All the level of management of Auto King limited are solely directed to maintain a culture
of the betterment of quality of the services and development of a corporate brand image in
the market through organization wide term approach and open communication system.

 EFFICIENT WORKFORCE :

The key contribution factor behind the success of the Auto King limited is its employees.
Who highly trained and most competent in their own field. Auto King limited provides their
employees training both on the job and off the job.

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WEAKNESS OF AUTO KING LIMITED

 LIMITED WORK FORCES

There are not many people to perform most of tasks. As a result many of the employees
are burdened with extra workloads and work load hours without any overtime facilities.

 PROBLEM IN DELIVERY

For insufficient work force the delivery system of Auto king Ltd are regularly hampered ,
this is consider one of the main complain about auto king at present , basically it is started
to questioning about the efficiency of Auto king ltd , which can be became harmful for the
company in future

There are also some weaknesses in Auto king those are:

 Decreasing Market Share

 Product unavailability
 Absence of Human Resource Division
 Declined Market Position
 Too much breakdown in Organizational Structure

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OPPORTUNITY OF AUTO KING LIMITED

 GOVERNMENT SUPPORT

Government of Bangladesh has rendered its support to the Commercial vehicle sector for a
sound financial status of the country. As it has become one of the vital sources of
employment in the country now. Such govt. concern will facilitate and support the long
term vision of Auto King Limited.

 EVALUATING OF E-COMPANYING

Emergence of e-companying will open more scope for Auto King Limited to reach the
clients not only in Bangladesh but also in the global companying arena. Although it has
already entered the world of e-companying but yet to provide full electronic companying
facilities to its customer. Its number of branches wills great opportunity to cover the
business of the country as a whole.

There are also some other opportunity of Auto king ltd, those are:

 For its experience workforce and small size it can easily adapt any kind of new

technology

 There is no marketing team, only focus on sales

 For targeting the lower level customer it can give consumers lower prize option to

choose form.

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THREATS OF AUTO KING LIMITED

 The number of competitors in Commercial vehicle sectors is increasing.

 Governments increasing rules and regulations are not so inspiring.

 Competitive performance is in high positive flow.

 Government tendency of imposing tax and VAT becoming strictly

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CHAPTER 03

7P’S SERVICE OF AUTO KING LTD

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3.1 PRODUCT MIX
A product is a good, service, or idea consisting of a bundle of tangible and intangible
attributes that satisfies consumers and is received in exchange for money or some other
units of value. There are 3 levels of products; they are- core product, actual product, and
augmented product. Products in Commercial vehicle industry can be classified into the
following levels:

Fig: 3.1 Product level

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Commercial Vehicle Industry Segmentation:

Fig: 3.2Segmentation

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Product line of Auto king:

Brands:

Auto Kingis the importer, wholesaler and retailer of the reconditioned & brand new vehicles

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 The products categories of Auto king:-

Products Details

1. Heavy Commercial vehicle:

22 ton Pick-up, 25 tons pickup, 52 seas bus, terra

16- HDR, Skyline Bus, 10.75 Bus, Galaxy Bus etc.

2. Medium Commercial vehicle:

1 Ton pick-up, 3 ton pick-up, 12 seats tourist Bus,

16 seats Vikrant school bus etc.

3. Light Commercial Vehicle:

3 Wheeler Passenger Diesel, 3wheeler Cargo

Diesel. (500kg pick up). Toyota 500kg pickup etc.

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4. Personal Vehicle:

1500cc car sedan shape, Hatchback and jeep,

1800cc-3000cc light ace micro-mini bus or personal
jeep.

5. Elegant vehicle:

This category also refers the personal categories but

the brand of the vehicle provided here based on the
higher price. Like BMW, Audi, Prado, Cygnus,
special vehicle for the VIP.

6. Racing Category:

On that category Auto king differentiated the

vehicles based on the racing developments. Like
Celica, Lancer, Lancer ex, Mazda etc.

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3.2 PRICING MIX

Price is the value measured in money term in the part of the transaction between two
parties where the buyer has to give something up (the price) to gain something offered by
the other party or the seller. Pricing is a complicated element, which needs to reflect supply
and demand, the actual value of the object, and the perceived value of it in the mind of the
consumer. A price that does not reflect these factors and is either too high or too low will
lead to unsuccessful sales. This is why an organization’s pricing will change according to
circumstances and time.

Pricing strategy is important for companies who wish to achieve success by finding the
price point where they can maximize sales and profits. Companies may use a variety of
pricing strategies, depending on their own unique marketing goals and objectives.

PRICING OBJECTIVES:

Fig: 3.3 PRICING OBJECTIVES

The price setting by the auto king depends on the quality of the vehicle and on the
auction rates of the product. Well there is some business policy that needs to evaluate

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before discussing. The quality of the product categorized bases on the auction rate. There
are around 12 Grades of the same vehicles.

 Grade RA: Repair Appeared. Means the vehicle were accidently damaged. The
Purchaser (auto king) need to do the repair on their own. This is the lowest grade.
And the price is lower for the same category vehicle. Example: Toyota Axio(2012),
price 1050$.

 Grades R: Repair. That means the vehicle were accidently damaged but the repair
also done by the company or the original manufacturers. This is the higher grade
than RA. Example: same Toyota Axio(2012), price 2500$.

 Grade 1 star to 7 star (including 3.5, 4.5, 5.5 ,6.5 stars): That means the vehicle
quality is fine and the star means the lower millage and the better conditions of the
vehicles. Example- same Toyota Axio(2012), price 3,000$-10,000$.

 Grade S: That means the car is the brand new. Lower like 0-7 millage highest.
Example: Same Toyota Axio(2012), price 15,000$.

These are fact of price variations for same models cars. There are also some reasons for
price variations like Color of the vehicle( Black, Gray and Red Wine color is more costly than
the silver and white), Import Tax rate, Exchange rates up-down, Shipment cost up-down,
Vehicle parts fraud ( sometimes some importer change the original parts with the duplicates
for price reducing).

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 There are a number of pricing strategies that a company can use to sell its product. The
strategy used at any time will depend on the company’s strategy and objectives. Some of
these pricing strategies are the following.

Fig : 3.4 pricing strategy

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Types of Pricing Strategy:
Pricing Strategy Definition

 Penetration Pricing A penetration pricing strategy is designed to capture market share

by entering the market with a low price relative to the competition
to attract buyers. The idea is that the business will be able to raise
awareness and get people to try the product. Even though
penetration pricing may initially create a loss for the company, the
hope is that it will help to generate word-of-mouth and create
awareness among a crowded market category.

 Skimming Pricing This is a short period device for pricing. The demand for new
products is likely to be less price elastic in the early stages, that is,
the initial high price helps to “Skim the Cream” of the market
which is relatively insensitive to price. Businesses that have a
significant competitive advantage can enter the market with a
price skimming strategy designed to gain maximum revenue
advantage before other competitors begin offering similar
products or product alternatives.

 Competition Pricing There is competition among a few sellers of a relatively

homogeneous product that has enough cross elasticity of demand
so that each seller must in his pricing decisions take account of
rivals’ reaction. Each producer is actually aware of the disastrous
effects that an announced reduction of his own price would have
on the prices charged by competitors. The firm should also analyze
whether the competitors have free entry to the market or not.

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  Product-Line Pricing

Product line pricing is an important practical problem for most

modern industrial enterprises. Since almost every firm makes
several related products, product line pricing is an important phase
of price policy. Product line pricing refers to the determination of
prices of the individual products which form units of an output
package.From the viewpoint of management a typical modem firm
produces multiple models, styles or sizes of output each of which
can be considered a separate product. Although product line
pricing requires same economic concepts used for single product
pricing, the analysis becomes complicated, however, by demand
and production externalities which arise because of substitutability
or complementary between the products on the demand or the
production side.

 Bundle Pricing The organization bundles a group of products at a reduced price.

Common methods are bought one and get one free promotion. Ex:
-This strategy is very popular with supermarkets. Like is someone
buying Samsung Galaxy ACE next mobile device than he/she will
get Robi connection with unlimited talk time and Robi mobile data
fully free for 3 months.

 Psychological Pricing Psychological pricing uses the customer's emotional response to

encourage sales. By pricing products strategically, a company may
increase sales without significantly reducing prices. In some cases,
a higher price is actually more likely to increase sales. Consider
several factors in crafting a psychological pricing strategy to get the
best results.

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  Premium Pricing Premium pricing (also called image pricing or prestige pricing) is
the practice of keeping the price of a product or service artificially
high in order to encourage favorable perceptions among buyers,
based solely on the price.. Ex:-An example of products using this
strategy would be Harrods, first class airline services, Porsche etc.

 Optional Pricing Optional-product Pricing is a method through which the company

earns more through cross-selling products along with a basic core
product. The basic core product does not have many features (and
is priced low) which can be enhanced through additional products
which are sold at premium by the same company.. Ex: - This
strategy is used commonly within the car industry or Computer
sailing center.

 Cost Based Pricing The firms take into account the cost of production and distribution,
they then decide on a markup which they would like for profit to
come to their final pricing decision. Ex:- If a firm operates in a very
volatile industry, where costs are changing regularly no set price
can be set, therefore the firm will decide on their mark up to
confirm their pricing decision.

 Cost Plus Pricing Cost plus pricing is a cost-based method for setting the prices of
goods and services. Under this approach, you add together the
direct material cost, direct labor cost, and overhead costs, and add
to it a markup percentage in order to derive the price of the
product. Cost plus pricing can also be used within a customer
contract, where the customer reimburses the seller for all costs
incurred and also pays a negotiated profit in addition to the costs
incurred

Auto king normally use the cost plus pricing. They add a minimum level of percentage
with their cost as profit. But on the other hand company also follows Premium pricing. They

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charge the amount based on the Brand value of the vehicle they provides. They use these
price categories normally for their elegant categorized product. Auto king also use Optional
pricing. They give extra parts and security systems bases on the Bangladeshi weather to
protect the cars that causes extra cost and they charge for it. They also use Bundle pricing
for their dealer where they give the exclusive price discount at 10 to 18 percent based on
purchase from at least 30 or more units of heavy and medium commercial vehicle category.

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Some example of the Auction sheet (Based on Japan Auto Appraisal Institute (JAAI), Tokyo
Branch)

(Source: From Japan Auto Appraisal Institute, 2015.)

(Source: From Japan Auto Appraisal Institute, 2015.)

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3.3 PLACE

In the marketing mix, the process of moving products from the producer to the intended
user is called place. In other words, it is how your product is bought and where it is bought.
This movement could be through a combination of intermediaries such as distributors,
wholesalers and retailers. In addition, a newer method is the internet which itself is a
market place now.

There are three channels of distribution available to firms. Indirect distribution involves
distributing your product through an intermediary for example a manufacturer selling to a
wholesaler and then on to the retailer. Direct distribution involves distributing direct from a
manufacturer to the consumer (end user).

Fig 3.5 Distribution channel

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 Indirect distribution:

Indirect distribution involves distributing your product by the use of an intermediary for
example a manufacturer selling to a wholesaler and then on to the retailer.

Toyota Auto King Retailer Consumer

Direct distribution

Direct distribution involves distributing direct from a manufacturer to the consumer For
example, Toyota sometimes provide the product directly to its target customer’s. The
advantage of direct distribution is that it gives a manufacturer complete control over their
product.

Toyota Consumer

But Auto king sometimes work as a middle man. They help the customer to contact
directly with the manufacturer for maintaining the customer satisfaction level at its best.
There also some middle man selected by the Auto King for increasing the sales.

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  The Coverage areas:

Auto king has 5 Showrooms and 76 authorized dealers through the country to sale. All
the Showrooms and dealers are decorated and well organized with modern marketing
concept. It has a Central Inventory Department and a Distribution Channel to ensure sales
support. To nationwide, backed by personnel, transport & communication system. This
Distribution Channel ensures the products reach the Showrooms and Dealers on time. The
entire Showroom are decorated and well organized with modern marketing concepts.
Visitors with their family feel comfortable in the wide space of the showrooms and can
choose any product from a wide range of display. Educated sales personnel’s assist
customers’ demonstration the product until the customers is satisfied.

Zone basis Sales outlets:

AREA QUANTIT
Y
Segunbagicha 01

Dhanmondi 01

Uttara 01

Mirpur 01

Banani 01

Grand Total 05

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Picture: Segunbagicha Sales outlet

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  Market Competitors and Position:

There are so many vehicle importers that import and selling reconditioned and brand new
cars. But all are not the competitors because of the price, quality and the consumer classes.
The biggest competitors are Volkswagen, Suzuki & Mitsubishi motors’ ltd. In the country the
big competitors are Uttara motors, Car selection, Tofayel Cars etc. And Auto king is now in
3rd to 4th Position in the Market. The competitors are:-

Compititors Representing Brand

MAHINDRA & MAHINDRA
Rangs Motors Limited (RML) VOLVO-EICHER
MITSUBISHI FUSO
Nitol Motors Limited (NML) TATA
Uttara Motors Limited (UML) ISUZU, SWARAJ MAZDA, TOYOTA
Ifad Autos Limited (IAL) ASHOK LEYLAND
Pacific Motors Limited (PML) NISSAN
Navana Limited (NL) HINO, TOYOTA
Haq's Bay Automobile Ltd. Dong Feng (Chinese Brand)
HS Enterprise Emma , Changan (Chinese Brand)
Ace Autos Great Wall/ Wingle (Chinese Brand)
NAF Suzuki Motors Suzuki (Chinese Brand)
Intraco Motors Ltd HM WINNER ( Hindustan Motors )
AG Automobiles FORD (USA)
MERCEDES BENZ, JMC (Chinese
Rancon Motors Ltd.
Brand)
Table 3.0 : Market Competitors

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3.4 PROMOTION MIX

Promotion is the communication aspect of the marketing mix. It is creating a channel for
conversation with the targeted consumer base. Through promotion, the company aims to
attract the customer’s attention and give them enough information about the product to
foster enough interest to motivate them to purchase. Promotion mix includes advertising,
publicity, sales promotion, word- of-mouth promotion, personal selling and telemarketing
etc. Each of these services needs to be applied in different degree. These components used
in the AUTO KING’s business in the following ways:

ADVERTISING:
Advertising is paid form of communication. Organizations use this component of the
promotion mix with motto of informing, sensing and persuading the customers. AUTO KING
is promoting different kind of advertisement time to time on television channels by
showing their offering to their existing and potential customers.

PRINT MEDIA
Auto king gives different kinds of
advertisement in newspapers and
magazines about different product, or
news. These normally included their
recent activities like signing some
contracts with other companies,
launching new product, annual
meeting, money transfer facility with
Western Union, big financing together
with other company(s), different kind
of notices, job openings, sponsoring
some event etc. They also have poster, billboards, leaflet, signage, logo and company’s
name printed in their different kind of officially used instruments

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 SOCIAL NETWORK:

Auto King developed their social media pages by putting information about their company
and their products. They placed products brochures, usage instruction and other product
related info on their pages. They placed their price list and purchasing procedures to their
website. Anybody can enquire by sending messages to them. As a result communication
system has developed their social media: https://www.facebook.com/autokingbd/?fref=ts

PUBLICITY

For the purpose of publicity AUTO KING took different steps time to time. Among them
road shows, campus visits, sponsorship is very often founded. On the completion of 3 years
the company decorate every branches, give away flower to customers from the branch to
selected customers are done as a part of it recently. Sometimes AUTO KING goes to
different campus to facilitate and give information to student customers about the
companies offerings. AUTO KING also sponsors different type of events. They provide
leaflet form branches about different offerings and the company as a part of their publicity.
From almost every branch greeting cards on different occasion like anniversary of the
company, eid, New Year (Bangla and English) etc.

Telemarketing:

Auto King sometimes takes telephonic-marketing procedures for their promotional

activities. They communicate information of changes of their product by telephone to the
sophisticated buyers as dealers and other sophisticated customer of their products.

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3.5 PROCESS

Whenever we talk about process of a service organization first thing that comes in my mind
is the service blueprint of that organization. Service blueprints can be used to better deliver
a successful customer experience. Think of it this way: you can look at a building, and you
can read a description, but to build the building you need more than an image or
description. You need the instructions - the blueprint.

The systems and processes of the organization affect the execution of the service. So, they
have to make sure that Auto king ltd have a well-tailored process in place to minimize
costs. It could be their entire sales funnel, a pay system, distribution system and other
systematic procedures and steps to ensure a working business that is running effectively.
Tweaking and enhancements can come later to “tighten up” a business to minimize costs
and maximize profits.

Processes is associated with customer service are a number of processes involved in

making marketing effective in an organization e.g. processes for handling customer
complaints, processes for identifying customer needs and requirements, processes for
handling order etc

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3.6 PHYSICAL EVIDENCE

Physical evidence is the material part of a service. Basically speaking there are no physical
attributes to a service, so a consumer tends to rely on material cues. There are many
examples of physical evidence of Auto king ltd can be said, including some of the following:

 The building itself

 Internet/web pages
 Paperwork
 Counter
 Machineries used in companying (e.g. calculator, money counter, protector etc)
 Furnishings
 Business cards
 Computers
 Server
 Security cameras

Auto King ltd physical evidences also include signage, reports, other tangibles, employee’s
dress code etc.

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1. Financial reports: The Company’s financial reports are issued to the customers to
emphasis or credibility.

2. Tangibles: Company gives pens, writing pads to the internal customers. Even the
passbooks, cheque books etc. reduce the inherent intangibility of services.

3. Employee’s dress code: AUTO KING Ltd follows a dress code for their internal
customers. This helps the customers to feel the ease and comfort.

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3.7 PEOPLE

The starting point in internal marketing is that the employees are the first internal market
for Auto King Ltd. The basic objective of internal marketing is to develop motivated and
customer conscious employees. A service company can be only as good as its people. A
service is a performance and it is usually difficult to separate the performance from the
people. If the people don’t meet customers' expectations, then everything will be lost.
Therefore, investing in people’s quality in service based business means investing in
product quality

In a company organization, employees are essentially the contact personnel with customer.
Therefore, an employee plays an important role in the marketing operations of a service
organization.

To realize its potential in company marketing, AUTO KING LTD become conscious in its
potential in internal marketing - the attraction, development, motivation and retention of
qualified employee-customers through need meeting job-products. Internal marketing
pave way for external marketing of services. In internal marketing a variety of activities are
used internally in an active, marketing like manner and in a coordinated way.

The starting point in internal marketing is that the employees are the first internal market
for Auto King Ltd. The basic objective of internal marketing is to develop motivated and
customer conscious employees. A service company can be only as good as its people. A
service is a performance and it is usually difficult to separate the performance from the
people. If the people don’t meet customers' expectations, then everything will be lost.
Therefore, investing in people’s quality in service based business means investing in
product quality.

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CHAPTER 04

FINDINGS, RECOMMENDATION AND

CONCLUSION

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4.1 Findings:
The Study has find out some points by screening the whole study, which is expressed as
major findings. I have analyzed the data sincerely and carefully and have tried to identify
appropriate findings. Moreover, conversations with the AUTO KING officials were very
significant for these findings. After overall appraisal of AUTO KING, the major findings are
as follows

 Customers’ Complains:

Customer’s all complains are related with lengthiness and time consuming of tasks. The
customer want to take the car in their home as fast as they can . But it is not possible for
slow and lack of cordial interruption of the management

 Lack of Segmentation:

The Company has no segmentation to handle different type of customers. They are equally
treating of all the customers to provide service. But high status clients seek on extra honor
from Company or institution.

 Lack of Up to Date Decoration:

The Branch is not decorated with ultra-modern facility and not always so nice to look at.
Their furniture’s and relevant materials are not so high standard.

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 Lack of Sufficient Computer & Technology:

Computers are carrying need of any organization in the age of technology. But the 5 branch
has only 5 computers to use by almost 27 employees. This is very few to run the task
through computer.

 Uneducated Peon, Messenger, Security & Tea Boy:

It is a matter of great regret that the peon staffs of the branch are lazy, whimsical, and above all
illiterate to behave and work with someone.

 Lack of Good Cooperation:

Every organization has this type of problem. But it should be minimized to faster the service as it
is the service organization and one depends to another to complete a process fully.

 Customer Objectives:

Many customers complain to improve and first the service as well as behavior of the staff as
it is a private company. Customers require especially quick, accurate service and good
behavior from company.

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4.2 Recommendation:

In order to get competitive advantage & to deliver quality service, top management should
try to modify the services. On the basis of theoretical analysis and practical experience of 3
months internship program. I may suggest the following issues:

 Behavior Modification of the Employees:

Very few employees’ behavior should be modified enough to maintain positive attitude
toward company’s. They should always think it is a private company and fully service
oriented organization. “Customer is the king / Queen” they should remember it almost
every time in office or outside the office.

 Provide Up To Date Technology:

The branch should be more technologically rich than present time. Then all manual tasks
will be converted into computerized system

 Provide Information:

Each and every branch should establish an information cell with one/two dump smart
executives who will be able to provide all sort of information regarding company and
respective branch.

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  Nice Decoration:

Now a day’s Company’s image building depends on the environment of the organization.
So the decoration should be unique and better than our competitors.

 Handling C u s t o m e r s :

Staffs of the branch should be trained up how to handle different Type of customers.

 Improve Service Quality:

Auto king have to believe in quality no quantity. Quality is an important phenomenon of

service organization always quality should achieve the pick of standard. If quality of
service is good then 50% problem will be automatically reduced.

 Reduce Expenditure:

It is very essential to reduce the expenditure of the company. Cause High expenditure
reduce the annual profit rate of Auto king Ltd

 Increase Performance:

Auto King should increase their performance by engaging efficient decision maker in the
managerial level.

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4.3 CONCLUSION:

AUTO KING is performed according to the needs of the situation policy, in some causes
there are strict and confidential policies, while in some other cases there is not much
structured policy, but more or less practices at Auto king Ltd is done for the sake of the
organization and the managers and employees working in it.

Auto king Ltd always tries to provide efficient, consistent and cost effective service to
consumers, needs to carry on its reputation in the coming years, the efficiency of the
organization depends not only on the efficient employees but also on maintaining and
developing their skills through training and development. Though AUTO KING has some
limitation still the organization is running its operation successfully and that indicates that the
system is adequate enough to maintain the efficiency so, it can be said that AUTO KING
practices at is good enough but not it can’t be called as a perfect one.

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CHAPTER 05

BIBLIOGRAPHY

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5.1 BOARD OF DIRECTORS :

 Mr. Biplab Mallik (GM, Auto king Limited.)

 Md. Safiqul Islam (Manager, Sales and Marketing)
 Mr. Bikash Chandra Saha (Executive, Sales and Marketing)

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5.2 REFERENCES :

DOCUMENTS:

 Asher, M.G (2005) “India and Japan should Deepen Strategic Engagement”, The
Financial Express, February 12.
 EktaChakravarty,“Separation -A Better Tomorrow-Economy” A Study of Marketing
Strategies on Automobile”, Volume-2, 2013.

 Rahul Sen and Mukul G. Asher, “BIMSTEC – Japan Economic Partnership:

Opportunities and Challenges”, Centre for Studies in International Relations and
Development (CSIRD), February, 2006.

 http://www.bdresearch.org/home/attachments/article/430/Bangladesh_Final_Surv
ey.pdf

WEB:

 http://www.skyscrapercity.com/showthread.php?t=652687&page=3

 Business Marketing, “PRICING STRATEGIES” published on 2014, available at:

http://www.learnmarketing.net/price.htm accessed on 9.12.14

 Company website. Available at: http://www.autoking-bd.com/ accessed on

13.03.2016

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  Kotler. P, “Technology & Operations and Marketing & Sales”, published on May
25,2013, available at : http://www.provenmodels.com/16/five-product-levels/philip-
kotler.com

 Robert F Brands, “8 Step Process Perfects New Product Development”, published on

2013, available at : http://www.innovationexcellence.com/blog/2013/05/27/8-step-
process-perfects-new-product-development/ accessed on 28.12.14

 Value Based Management, “The Marketing Mix Model “publishedon

ValueBasedmanagement.net,2013,availableat:
http://www.valuebasedmanagement.net/methods_marketing_mix.html accessed
on 13.03.2016

 Small Business, How to Develop a Marketing Strategy & Marketing Mix for a
Product” (November 6, 2008), Available at: http://smallbusiness.chron.com/develop-
marketing-strategy-marketing-mix-product-3284.html, Accessed on: 08.04.2016

 Wiki source available at: https://en.wikipedia.org/wiki/Marketing_mix, accessed on

11.04.16

 http://businesscasestudies.co.uk/business-theory/marketing/the-extended-
marketing-mix-7ps.html#ixzz46HLMTqak

 https://www.facebook.com/autokingbd

TEXT BOOK:

 Statistical Year Book of Bangladesh 1999 (12th edition)

 Bitner. MJ, valarie A.Z “Services Marketing”, Tata McGrow hill, 4th edition, 2009.

 Berri, G.C., Marketing Research, Fourth edition, New Delhi: Tata McGraw Hill

Education Private Ltd.

 Kotler. P, Armstrong. G, “Principles of Marketing”, Prentice Hall, 13th edition, 2010.

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