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MKT 450.

REPORT ON
MARKETING
CHANEL ANALYSIS

Presented By
20. Ashikul Islam Siam (1510574030)
33. Shadman Sakib Ayon (1530785630)
27. Mohammad Toukiul Alam
Khan(1520645630)
34. Tarif-Ul-Islam Khan (1530972630)
40. Arnab Roy (1631140630)
32. Amit Kumar Rajbongshi (1530243030)
27 April, 2019

Rafsan Elahi

Senior Lecturer

Department of Marketing and International Business

School of Business and Economics

North South University.

Subject: Letter of transmittal for the group project.

Dear Sir,

With due respect, we would like to gladly present our assigned group project on Final Report –
New Channel strategy for Fresh Tissue paper. We have tried to put our best effort to implement
the relevant knowledge, channel strategies and trade deals that we have learned in this course.
Please note that we have not used any uncertain means in order to complete this report.

We have tried to the very best of our ability to fulfil the assignment requirements according to
your instructions. Furthermore, if we have made any mistakes, we humbly apologize for that and
ardently believe you will point out any discrepancies henceforth and guide us accordingly.

Yours sincerely,

Ashikul Islam

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Table of Contents

EXECUTIVE SUMMARY 3

INTRODUCTION 4

MARKET SELECTION 5

STORE SELECTION 6

CUSTOMER ANALYSIS 6

PRODUCT SELECTION 7

PRODUCT VARITY 7

KEY COMPETITORS 8

RETAILER RELATIONSHIP MANAGEMENT 8

DISTRIBUTION FLOW CHART OF FRESH TISSUE PAPER 9

TARGET MARKET 9

IDENTIFYING PROBLEMS 10

WAYS TO OVERCOME THE PROBLEM 10

TRADE DEALS: DISPLAY ALLOWANCE 11

TRADE DEALS: COOPERATIVE ADVERTISING 11

TRADE DEALS: FREE GOODS 12

TRADE DEALS: COUNT-RECOUNT AND CREDIT FACILITY 12

CHANNEL CONFLICT: ARISE AND RESOLVE 12

RESOLVE CONFLICTS: 13

FUTURE RECOMMENDATIONS 14

FUTURE FORECAST 14

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Executive Summary
This report shows the existing distribution network of Fresh Tissue paper of MGI ltd. In this
report, we have worked with one retail shop which is situated in ghatpar; near C block of
Bashundhara residential area. This particular retail shop got the potential to make the sale of the
tissue paper if it is marketed properly. We tried to analyze both the market and product
competitors; and suggested strategies to tackle with the competitors.

We have tried to identify the key problems for fresh tissue and redesigned the marketing
strategies which includes definite target markets and comprehensive promotional plan for
increase brand value before distributing the product to the retailers. We offered trade-deals like
display allowances, cooperative advertising and free goods and count-recount to the retailers to
sell it to the end consumers.

We implemented the trade deal and it literally made the retailer opt for more Fresh tissue in the
future and push it to the consumers; also displaying the products on the shelf. Apart from that we
recommended few more strategies like retail support. We also portrayed an aftermath picture if
the strategies are being followed.

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Introduction
Fresh tissue is a concern of MGI Bangladesh. Meghna Group of Industries (MGI) is one of the
biggest & leading conglomerates of Bangladesh. With a turnover of USD 3.0 billion, MGI is
currently operating in about 45 factories of verities goods with more than 30,000 employees,
3,000 distributors & 1,000 suppliers under its umbrella.

The history of Meghna Group of Industries dates back to 1976 when its predecessor Kamal
Trading Company was born. The group’s humble debut occurred with the inception of Meghna
Vegetable Oil Industries Ltd in 1989 on a small chunk of land at Meghnaghat in Narayanganj.
Meghna Group of Industries has been Producing & marketing various Fast Moving Consumer
Goods (FMCG) & Commodities most likely Tissue, Paper, Seed Crushing, Fish and Poultry
feed, Chemical, Cement, Power Plant, other bulk and industrial products under the brand name
of ‘Fresh', ‘No.1' and ‘Pure'. Moreover, the group has Ship Building Dockyard, Shipping,
Securities, General Insurance, Media, Aviation and many other businesses.

The Group has more than 40 years of national & global experience. In Bangladesh one in every
three households use MGI brands and products. MGI has started to spread its footprints outside
Bangladesh, especially in the Middle East, Southeast Asia, Europe, North and South America
through exporting its various products.

MGI has been continuously expanding & has emerged as the largest investor in industrial
development of Bangladesh for three consecutive years.

MGI is also the first Bangladeshi company to set up a private economic zone and recently it has
opened 8 new industrial units in its 2 economic zones with investment of more than BDT 3000
crores. Moreover, 10 different industries are under construction, erection and negotiation phase
with foreign principal including TIC – Australia where another 12000 – 15000 employment
opportunities will be created.

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Market Selection
An open market is an economic system with no barriers to free market activity and it is
characterized by the absence of tariffs,
taxes, licensing requirements, subsidies,
unionization and any other regulations
or practices that interfere with the
natural functioning of the free market.
For this marketing project we have
chosen the place where we can have
easy access to. So, our chosen market is
ghatpar bazar where people from
different background come to buy
things.

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Store Selection
We selected a store from ghatpar bazar which is quite convenient. The store we selected named
SHOTOTA DEPARTMENTAL STORE which is near ghatpar bazar and near kuril member
bari. The owner is a very good
man and the consumers of that
area are very satisfied with his
service. For all this reason, we
select this convenient store.
They started their journey in
2017 and it is almost 2 years,
they are successfully running
their store. They have a large
amount of product verity and
assortment. Almost 300+ products they have including Food, Cosmetics, Cigarettes’, and
beverages. If we see their last couple of month’s sales revenue, they sold almost 8 lack+ BDT in
a month.

Customer Analysis
While doing our research on our marketing project we figure out the customer analysis of that
particular area. We saw that most
of them are students and middle-
class family. We figure out that
47% are students and 31% are
restaurants owner and 22% are
middle class family who shop for
their family. We also analyzed
the morning and night gathering
of the consumers in the shop. We
find out that the ratio the men and women gathering in the shop is quite different. In the morning

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men and women gathering is quite similar but at night male consumers gather more rather than
female consumers.

Product Selection
Shotota Departmental has a variety of products. As they have 300+ products with lots of variety
and assortment, we focused on the products
that have a smaller number of sales. After
talking with them, we find out that Fresh
tissue paper has less sales rate in their shop.
They also included that, because the store is
located in Bashundhora so Bashundhora
Tissue dominates the market. So, we
choose Fresh Tissue for Re-positioning the
brand in that store.

Product Varity
Fresh Tissue have 5 SKU. In this 5 SKU’s, they have different varieties. Some SKU is known as
single packs and some are known as family packs. The 5 SKU names are given below

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Key Competitors
Researching the market and talking with other retailers we got to know there are three top
competitors for Fresh tissue currently in market. A re-designing of distribution and promotion
are required if Fresh Tissue wants to capture the market share. The four competitors are:

Retailer Relationship Management


When it comes to the retailer relationship management, we have taken few measures to boost it
up. We will be following three basic yet effective strategies to build a good relationship first
before jumping into pushing the products. Below the three strategies have been discussed briefly;

 Retailers Support Service: It will be just like the customer service management but for
the retailers. Many retailers have problem or quarry regarding the product so they don’t
know where to contact. Introducing a hotline number only for the retail support will make
the retailers opt for the product more.

 Personal Relationship Building: Being practiced by many organizations; and one of the
most effective one. Fresh can also follow this strategy to build a good retailers’ networks
so that the flow of the product sale never goes out of the market.

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Distribution Flow Chart of Fresh Tissue Paper
The company uses intensive distribution strategy. The company first passes to product to their
distributor then the distributor sells the product with sales agent and finally the after receiving
goods from the sales agent the retailer pushes the product to the end consumer.

Target Market
The target consumers are mostly students and bachelors living in bashundhara residential. The
restaurant owners and mostly the family and the married couples.

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Identifying Problems
While making new channel strategies for Fresh Tissue we identified few problems regarding the
distribution and product marketing which might be a key issue for Fresh Tissue not doing so well
in the market. Below those problems have been enlisted

 Lack of Visibility on shelf: The product is placed poorly in the shelf.

 Low impact of marketing communication: The campaign which fresh tissue paper had
launched initially had a low impact in terms of marketing communication in the targeted
area.

 No Compensation to Retailers: Fresh tissue is currently giving no compensation to the


retailer.

 Consumer Preference: Consumer does not show that much of a preference in terms of
buying a tissue paper they go for those brand whichever their retailer pushes them.

 No Additional Offer: Fresh tissue also poses no additional offer or compensation


package for the retailers for which they will push the product to the end consumers.

Ways to Overcome the Problem


In order to overcome the problem at first we need to strengthen the promotional activities in the
targeted area. Since the consumer in Bashundhora residential area are mostly tech savvy
consumers so we use geo targeting tool of social media to strengthening the promotional
activities.

Secondly, we offer lucrative trade deals to our retailers, so that they feel more encouraged and
motivated to push our product to our end consumers.

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Trade Deals: Display Allowance
Firstly, we will go for display allowance, where Fresh Tissue will be paying a fixed amount to
display their products in the most visible site.

Trade Deals: Cooperative Advertising


Here Fresh tissue paper will conduct some of the promotional activity for the retailers for
example: Decorating the stalls or Designing store banners.

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Trade Deals: Free Goods
We will also provide some free units of fresh perfumed
napkins so that by receiving some free units of goods
the retailer gets encouraged to push and advocate our
product to our targeted end consumers.

Trade Deals: Count-Recount and Credit


Facility
We will provide 5% of Commission to our retailers for
every 150 sells per month and 7% of Commission for
250+ sell per month. In order to motivate the retailer more we will provide credit facility so that
the retailer can take the goods and payback at a later period of time.

Channel Conflict: Arise and Resolve


Channel conflicts arise for basic three reasons; when channel members pursue different goals,
when members do not act out their roles properly and lastly it arises when the members of the
channel have different perceptions regarding the product distribution.

We are working with ‘Shotota Departmental Store’, a retailer store located at Ghatpar. In this
report we are discussing about the supply distribution flow chart of Fresh tissue. While
discussing about the product’s flowchart, we got into the light that currently Shotota
Departmenta Store and Fresh Tissue’s supply chain is not dealing with any kind of conflicts.

But we all are known to the fact that a market situation is always unpredictable. So, we want to
come up with some pre-cautionary plan, in case a conflict arises. First, we will discuss the
conflicts that might arise being in the supply chain of Fresh tissue paper as a retailer.

Goal Conflict:

When the channel members will be eager to maximize their own profits, then it might result into
a goal conflict. Not only that, but if the retailer switches its wholesaler then it might create a goal
conflict.

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Switching wholesalers refers that if the retailer gets a better profit margin than being as a Fresh
Tissue paper’s retailer, then ‘Shotota Departmental Store’ might switch their wholesaler. We are
considering this as a threat as the product is not doing well currently in the market.

Domain Conflict:

There is always a threat of domain conflict, if one channel member doesn’t outperform its role
properly. One will play its act well, that is hard to state. So, we are considering this kind of threat
as a potential issue for creating a conflict.

Resolve Conflicts:
Earlier we have mentioned what kind of conflicts can occur being in the supply chain of Fresh
tissue paper. These kinds of conflicts can be fixed technically and efficiently if channel members
can maintain some rules. In order to rectify conflicts, we are suggesting some conflict resolving
methods to the channel members.

 Information Intensive Mechanism- Channel members can go for a contractual


relationship where each of the channel members will have the access to all relevant
information. Besides contract will also determine each party’s desired profits which will
end the goal conflicts between the channel members.
 Build Relational Norms- Each member can adopt the collaboration style to solve the
conflict among them. It will also build a relational norm among these members, which
will help to make the supply chain process flexible and will help to bring a solidarity
among them. Again, by adopting the collaboration style to resolve conflicts will bring a
win situation for every potential channel member.

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Future Recommendations
 Implementation of push strategy through retailers: By implementing the trade deals
it will be easier to use the push strategy through the retailers.
 Compensation and incentive policies for retailers: The compensation and the incentive
policy will encourage the retailers and build loyalty.
 Retail Support, application of the trade deals: Retail support system and the
consistency of the application of the trade deals will enable smooth flow of the product in
the market.

Future Forecast
 Visibility of the product will increase
 Compensation will motivate the seller to take in more goods
 Trust towards the manufacturer will increase.
 Retailer will push the product the end consumer.

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