Prepared for :

Md. Hamidul Islam

Course instructor of marketing management

SEC: I

Report on:

4 ps of nasir Glass

Prepared by:

N0 STUDENT NAME STUDENT ID1 HOSSAIN MD. SHAHADATH 07-09602-32 MONIRUZZAMAN MOHAMMAD 07-08993-23 HOQUE SHAHED IBNAY FAZLUL 07-09590-34 SHAWON MD. MONIRUZZMAN 07-09616-35 FARABI MD. RAIHAN KABIR 07-09610-3

1

Date of Submission: July 30, 2009.

June 30, 2009

To,

Hamidul Islam,

Faculty of Business Administration

American International University-Bangladesh (AIUB)

Sub: Submission of Project Report.

Dear sir,

THIS IS A GREAT PLEASURE FOR US TO SUBMIT THE PROJECT REPORT, WHICH

IS A PARTIAL REQUIREMENT FOR THE DEGREE OF BBA. WE HAVE BEEN

ASSIGNED TO DO PROJECT REPORT ON HUMAN RESOURCE MANAGEMENT

COURSE. OUR ASSIGNED TOPIC IS “HR ACTIVITIES IN BANGLADESH PROSPECT”.

OUR ANALYSIS IS BASED ON WHAT WE HAVE LEARNED FROM THIS STUDY.

THERE MAY BE SOME LIMITATIONS, BUT WE HAVE TRIED OUR BEST TO MAKE

IT AS ACCURATE AS POSSIBLE.

We sincerely hope that you will enjoy reading this report. We will be very glad if the study can serve

its actual purpose and we are ready to explain anything to you if necessary.

Yours’ faithfully,

Name IDSABBIR MD.

SALAHUDDIN

05-05872-2

SAGORE NAFIZ IMTIAZGOLAM SAIFUDOIN TAKONONIK MD.FAISAL RAZA

07-09506-3

07-09168-2

2

Letter of Transmittal

Chapter: One

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1.1Over view of the company:

Nasir Glass Industries, the biggest and first float glass manufacturer in Bangladesh. Produces

different sized and colored float glass according to the requirements of the buyer. The manufacturing

plant is located within the short distance of the capital city Dhaka, at Sripur in Gazipur made at a

cost of Tk 300 crore. Built in 2005, Nasir Glass Industry, the country's first float glass plant, has a

capacity to produce 60,000 tonnes of float glass, strong enough for furniture, besides window and

door panes. The glass factory produces clear and tinted heat absorbing glass, clear, bronze, blue and

dark gray and light gray glass. The factory, producing glass from 2mm to 12mm thickness, has

already achieved international standards in producing glass. Our country has an annual market for

Tk 3.00 billion glassware and almost all of them are imported from China, Thailand, Malaysia and

Indonesia. But because of the poor local demand, it can sell only 3500 tones in the local market and

export around 1500 tonnes to the neighboring countries of India, Nepal and Bhutan. As a major

portion of the raw-materials are procured locally, the prospects of the float glass industry is bright

indeed.

It sells glass at much lower price compared to that of the imported glasses with similar quality.

About 501 - 1000 People  are employed directly or indirectly in this industry. Its total annual sales

volume US$1 Million - US$2.5 Million. Its main exporting markets are North America, South

America, Western Europe, Eastern Europe, Eastern Asia, Southeast Asia, Mid East, Africa, and

Oceania.

The company is named after its owner Nasir Uddin Biswas, the group has an annual turnover of

around Tk 10 billion.

 

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NGIL is a multi-functional float glass complex set up with a dream. Sprawled over 23 acres of lush

green land at Joinabazar, Sreepur, Gazipur, Bangladesh, NGIL has a buitt-up area of over half a

million square feet with some structures rising over 80 feet. With 37 meters (121 feet) high imposing

water tower and 75 meters (246 feet) lofty chimney, NGIL presents a panoramic view of eloquent

beauty with impressive grandeur. Dotted by architecturally attractive workstations surrounded by

elegantly crafted paths which are landscaped by intertwined trees, shrubs and lawns, the factory is an

ecological dream.

1.2Marketing mix Strategies:

Marketing is a societal process which discerns consumers' wants, focusing on a product or service to

fulfill those wants, attempting to move the consumers toward the products or services offered.

Marketing is fundamental to any businesses growth. The marketing teams (marketers) are tasked to

create consumer awareness of the products or services through marketing techniques. Unless it pays

due attention to its products and services and consumers' demographics and desires, a business will

not usually prosper over time.

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Marketing tends to be seen as a creative industry, which includes advertising, distribution and

selling. It is also concerned with anticipating the customers' future needs and wants, which are often

discovered through market research.

Essentially, marketing is the process of creating or directing an organization to be successful in

selling a product or service that people not only desire, but are willing to buy.

Therefore good marketing must be able to create a "proposition" or set of benefits for the end

customer that delivers value through products or services.

There are only three marketing strategies needed to grow a business: (1) Increase the number of

customers (2) Increase the average transaction amount, and (3) Increase the frequency of repurchase.

Every marketing strategy should be measured by it's ability to directly impact and improve upon

each of these three factors.

Increasing only one factor will produce linear business growth. Increasing all three factors will

produce geometric business growth.

Marketing Strategy #1. Increase the number of customers

Increasing the total number of customers is the first step most business owners and managers take to

grow their business.

Losses can occur when inexperienced sales personnel are put in charge of designing and

implementing a marketing program - investing corporate resources to find more customers.

Executed correctly, basic marketing strategies cost efficiently produce new prospects who are ready,

willing and able to buy products or services. The main purpose of a marketing strategy is to give

sales personnel prospects to convert into paying customers.

Rewarding existing customers for referring new ones is one easy step business owners can take to

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increase their total number of customers.

Marketing Strategy #2. Increase the average transaction amount

Owners and managers spend most of their time operating their business and searching for new

customers. They often overlook the customers they see regularly. These repeat customers are usually

taken for granted and left to conduct entire transactions without ever being asked if they would like

to buy more product or service.

Complacency, expecting customers to buy a minimum amount of product or service

without ever being asked to buy more, can be the undoing of a business. This attitude can eventually

cause customers to spend less money. Customers who aren’t ½ continuously offered compelling

reasons to keep buying more of the same products and services from one business will look for new

reasons to buy from another.

Cross selling and up selling, systematically offering customers more value via

additional products or services at the point of sale, are two simple steps business owners can take to

increase their average transaction amount.

Marketing Strategy #3. Increase the frequency of repurchase

In an established business, an average customer purchasing pattern develops and (like the average

transaction amount) is usually taken for granted and rarely improved upon.

A customer's repeat business is earned by the business who gives the customer

what they want. Without having basic marketing strategies or processes for consistently offering

customers more of what they want, repeat business is earned less frequently. Frequently

communicating news and offers to past and present customers via telephone or mail generally

increases their frequency of repurchase and is one more step owners can take to grow their business.

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The marketing mix is probably the most famous marketing term. Its elements are the basic, tactical

components of a marketing plan. Also known as the Four P's, the marketing mix elements are price,

place , product, and promotion.

The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs, milk,

flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements

contained in it. So for a sweet cake add more sugar.

It is the same with the marketing mix. The offer you make to you customer can be altered by varying

the mix elements. So for a high profile brand, increase the focus on promotion and desensitize the

weight given to price. Another way to think about the marketing mix is to use the image of an artist's

palette. The marketer mixes the prime colours (mix elements) in different quantities to deliver a

particular final colour. Every hand painted picture is original in some way, as is every marketing

mix.

Products or services:

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The product aspects of marketing deal with the specifications of the actual goods or services, and

how it relates to the end-user's needs and wants. The scope of a product generally includes

supporting elements such as warranties, guarantees, and support. Must meet customer requirements

whatever these might be.

For many a product is simply the tangible, phsysical entity that they may be buying or selling. You

buy a new car and that's the product - simple! Or maybe not. When you buy a car, is the product

more complex than you first thought? The Three Levels of a Product

The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted

(introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an

adult (maturity); after a long period as an adult the plant begins to shrink and die out

The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC).

However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e. looks

at the products or services that customers NEED throughout their

The price

Of all the aspects of the marketing mix, price is the one, which creates sales revenue - all the others

are costs. The price of an item is clearly an important determinant of the value of sales made. In

theory, price is really determined by the discovery of what customers perceive is the value of the

item on sale. Researching consumers' opinions about pricing is important as it indicates how they

value what they are looking for as well as what they want to pay. An organisation's pricing policy

will vary according to time and circumstances. Crudely speaking, the value of water in the Lake

District will be considerably different from the value of water in the desert.

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The place

Although figures vary widely from product to product, roughly a fifth of the cost of a product goes

on getting it to the customer. 'Place' is concerned with various methods of transporting and storing

goods, and then making them available for the customer. Getting the right product to the right place

at the right time involves the distribution system. The choice of distribution method will depend on a

variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers

who then sell to retailers, while others will prefer to sell directly to retailers or customers.

Promotion

Is the process of communicating with customers. For marketing purposes, communication of

products and services contributes to the persuasion process to encourage consumers to avail

themselves of whatever is on offer. The key processes involved in promotion, include:

Branding - creating a distinctive image and character to an organisation/and or its products

and services

Advertising - to inform and persuade the public

Packaging - presenting the product in a desirable and appropriate way

Public relations activities and other forms of publicity

Sponsorship

Special promotions - e.g. buy one get one free.

Some commentators will increase the marketing mix to the Five P's, to include people. Others will

increase the mix to Seven P's, to include physical evidence(such as uniforms, facilities, or livery)

and process (i.e. the whole customer experience e.g. a visit the Disney World). The term was coined

by Neil H. Borden in his article The Concept of the Marketing Mix in 1965.

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Physical Evidence

Physical Evidence is the material part of a service. Strictly speaking there are no physical attributes

to a service, so a consumer tends to rely on material cues.

People

People are the most important element of any service or experience. Services tend to be produced

and consumed at the same moment, and aspects of the customer experience are altered to meet the

'individual needs' of the person consuming it.

Process

Process is another element of the extended marketing mix, or 7P's.There are a number of perceptions

of the concept of process within the business and marketing literature. Some see processes as a

means to achieve an outcome, for example - to achieve a 30% market share a company implements a

marketing planning process

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Chapter: Two

2.1Objective of the study:

This report is all about the marketing mix strategies used by different companies. We made this

report on Nasir Glass Industries, the biggest and second float glass manufacturer in Bangladesh. We

tried to find out what is marketing mix really is in a true when it is used in a company.

Our special focus was on the production, pricing, promotion and distribution strategies

of the Nasir Glass Ltd.

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Our additional focus was on the segmentation, market targeting and the

positioning strategies used by Nasir Glass and to make a comparison between the Nasir Glass

and its competitors.

Therefore, if we point specifically the main purpose of our study are as follows,

To present an over view of Nasir Glass Limited.

To present the Marketing mix elements.

Analyzing the position Nasir Glass in the Glass market of Bangladesh.

To realize how marketing mix strategies are used in real life situation.

To identify the market segmentation, market targeting and the positioning strategies used by

Nasir Glass.

To make a comparison between the Nasir Glass and its competitors.

To identify and analyze Nasir glass’s production, pricing, promotional distribution strategies.

2.2 Limitation of study: Our study is based on Nasir Glass Ltd. When we were given to do our assignment we thought that it

would be easy for us. But when we visited Nasir Glass’s official web site we were disheartened.

Because we found only four pages about Nasir Glass’s establishment and some of its products. But it

was a very small amount of data for our assignment. As a result we decided to visit Nasir Glass’s

head office at Baridhara for collecting more information.

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This is privatized company. So they were friendly enough to provide all the

information. Except this limitation we have to face other:

Our study is based on secondary data and those data are not updated time to time. So we

couldn’t get recent data.

Whenever we tried to open the different pages of Nasir Glass’s official web site the server

showed that the page couldn’t be displayed now.

As it is private company, the employees were so busy that they could not give us enough

time that we need.

They were not enough co-operative to reveal their different programs in public because of the

competition in the market.

2.3 Data collection:

When we were given to do the assignment the first question raised in our mind is which type of data,

how much data we need and from where we would collect them. For reason we divided our sources

of data into two sections, such as, primary data collection source and the secondary data collection

source.

We decided that, primary data, which are not available in web sites, published books,

annual reports, newspapers, and TV channels, we will collect them by visiting Nasir Glass’s head

office at Baridhara.

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Secondary sources of data:

Official Web site of Nasir Glass Ltd..

Product catalogue of Nasir Glass.

Advertisements on newspapers.

Primary sources of data:

Conversation with the Nasir Glass’s officials.

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Chapter:Three

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3.1Market Segmentation

Market segmentation is a process of dividing the total market for a good or service into several

smaller, internally homogeneous groups. The essence of segmentation is that the members of each

group are similar with respect to the factors that influence demand. A major element in a company’s

success is the ability to segment its market effectively.

In segmenting, we first identify the wants of customers within a sub market and then decide if it is

practical to develop a marketing mix to satisfy those wants.

The Process of Market Segmentation

Markets are sometimes segmented intuitively; that is, a marketer relies on experience and judgment

to make a decision about the segments that exist in the market and how much potential each offers.

Others follow the lead of competitors or earlier market entrants.

Another alternative is to perform a structured analysis, often supported by some marketing research,

in order to identify segments and measure their potential. This approach, even if done with a small

budget, often produces insights and opportunities that would be overlooked otherwise.

Market Segmentation process followed by Nasir Glass

When the Nasir Glass Company enters into the glass industries their first job was to segment their

total market into different glass users. So they divided their markets into color glass users, reflective

glass users, tempered glass users, mirror glass users etc. The reason behind this segmentation is to

identify the demand of each group and serve each group with their demand quality products. Market

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segmentations help them to concentrate on each particular market with their best efforts. The market

segmentation also helps them to concentrate on their specialized products like tempered glass,

reflective glass that are not manufactured in Bangladesh by any other glass companies. This intern

helps them to have somewhat monopoly on those products market.

Nasir Glass has considered the following factors to segment its market.

Identifying the current and the potential wants of different glasses in the market. When they

examined the market the current and potential wants they found a huge market depending mostly

on imported glasses. So, they found the market for glasses was highly existed.

Identifying the characteristics of the glasses distinguished them among the segments. In this

step they also find out the demand of the glasses, which also distinguish their markets among

them.

Determining the sizes of segments and how well they can be satisfied. As two years ago the

whole glass market was running through the imported glasses from China, Indonesia. The each

segment of glass market was highly predictable as big markets and this markets have the wants

to be satisfied from anywhere either from the domestic market or from the international market.

They basically segment their markets on the basis of demand and profit. They didn’t find any

difficult to enter the market because there was a few competitors and the market was very big and

easily accessible. They consider the following characteristics of the market to segment them.

Geographical segmentation: In this process they segment their markets into different areas

of Bangladesh. For example, they consider the main cities as their biggest markets. Such as

Dhaka market, Chittagong market, Shylet market etc. They also segment the total market within

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these cities on the basis of their demands. For example, Dhaka is the biggest market of all within

the Bangladesh and then Chittagong.

Demographics segmentation: They segment their market one the basis of social classes of

the people. It is seen that most of the upper class people are stylish and they certainly use

different glasses to decorate their houses and their office buildings.

Behavioral segmentation:

Benefits desired: They have segmented their market on the basis of benefit desired by the users of

different glasses. For example, some users want to protect themselves from the sunrays, they desire a

kind of glass which them from sunrays. So they have the demand for coated/ reflective glasses.

Usage rate: it also segments its market on the basis of usage rate of different glasses. Some people

want to have glasses that do not fade away with in 15 or 20 years. These people want heavy-duty

glasses and they want to use these glasses at their maximized limits.

Customers’ location: glass markets are frequently segmented on a geographic basis. The company

also segments its international market on the geographic basis. For example, the demand for a

particular glass in India may not have the same demand in Nepal or Peru.

Customer type

Industries: Different industries mainly the developing industries are the main user of glass. So with

this view the company has segmented its market in building industries, mirror industries, furniture

industries etc.

Size: They also segment the market on the basis of their sizes. For example, Dhaka market is the

biggest then the Chittagong market, then the Shylet, then the Khulna etc.

Purchase criteria

Buyers are different in their purchase criteria. Some buyers want low price, some want high quality

and durability. Some want home delivery. The company always considers these criteria as important

factors for segmenting the market.

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3.2Market targeting

After a company has segmented a market, management must next select one or more segments as its

target markets. The company can follow one of three strategies – market aggregation, single-

segment concentration or multiple segment targeting.

Among these three strategies the company use multiple segment strategy. Under a multiple segment

strategy two or more market segments are targeted. A separate marketing mix is developed for each

of the segments. The segments the company is mainly targeting are the geographic segment or

location of customers and the building industries. The company is targeting each segment on the

basis of the customers wants and their size.

The reasons behind choosing this strategy are because this strategy normally results in a greater sales

volume increasing the profit and capture the greater share of the market. And as the company has

different models and products of glasses so it is useful for them to use multiple segment strategy. Its

main markets are North America, South America, Western Europe, Eastern Europe, Eastern Asia,

Southeast Asia, Mid East, Africa, and Oceania.

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3.3Positioning

Having identified the potential segments and selected one or more target, the market must next

decide what position to pursue. A position is the way a firm’s product, brand or organization is

viewed relative to the competition by current and prospective customers.

When positioning a product the marketer wants to convey the benefits most desired by the target

market.

To simplify decision-making, individuals formulate mental positions for products, brands and

organizations. Often these positions are based on a single attribute and or limited experience because

consumers are seldom willing to invest much time and effort in the process. Because a product’s

position is critical to its evaluation, firms go to great lengths to influence how positions are formed.

In positioning the process the company has selected the positioning concept of low price, durability

and quality, which are the most important to the target markets. The company is trying to keep its

position by using the features of brand name, their quality and their specialized products. Its current

position among other three competitors the PHP Glass industries Ltd, MED Glass works Ltd and

Osmania Glass Ltd is in the top. The company is positioning its products by price and quality. They

are trying to sell products at lower price than the same imported products. It is using the best

technology of glass industry and trying to serve with the best quality. It is also supplying at a low

price then their competitors.

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Durability

SpecializationQuality

Nasir Glass

PHP Glass

Bengal Glass

Med Glass

Less expensive

Positioning

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Chapter:Four

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4.1Product:

In order for any company to sell its products and services as successfully as possible, it needs to look

at what products it is selling in detail to ensure they will be attractive and needed; the price to ensure

it is not too cheap or too expensive; where it is best distributing its product; and finally, how it can

create interest and awareness for its products. All these elements need to be targeted at the right

people at the right time. In order for its business to tackle this correctly, it needs to get the right

type of mix (marketing mix), the mix should include four main elements: Product, Price, Place and

Promotion, by examining each and carefully and adapting them to customer's needs, it will continue

to produce and needed products and services.

Product

Every company needs firstly to identify who will be interested in buying its products and services,

this should be identified once it has analyzed the results of the market research.  Company’s market

research data will be able to look more closely at what its market want and then look at its products

to see if they are satisfying your customer's needs. Examine its packaging design, materials used,

size and quantity. By analyzing the market and its requirements, it will be able to change the

product or develop the product in order to match those requirements of the people it is aiming at.

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It also needs to remember that its customer's needs are likely to change and therefore its products

should constantly change to reflect each market change, if it ignores these changes its products will

no longer be needed or desired by your target customers. The only way it will be able to do this is to

track your products and track how its customers are still receiving its products and services,

balancing the subtle changes as they occur.

4.1.1Products of Nasir Glass Ltd:

Nasir Float Glass is a single line manufacturing unit. Basic float glass is manufactured by melting

Silica sand. Ingredients such as Soda Ash, Dolomite, Salt Cake, etc. are added to lower the melting

temperature of Silica and achieve optimal clarity of finished product. The mixed batch is heated at

about 1650ºc and formed into large sheets by floating molten glass on molten tin, thus giving it

precise flatness & transparency. The formed ribbon then passes through an Annealing lehr, which

cool-up the glass from 600ºc to 70ºc. The operation prevents the formation of both temporary &

residual stresses in glass. Quality Control System is an integral part of the production process, which

assures the fineness of finished goods.

Distortion-free:

Nasir Glass has precise surface flatness, which provides distortion-free vision.

Clear & Transparent looks:

Nasir Glass is excellently clear & transparent. When turned into mirror, it provides brilliant reflected image.

Sparkling Surface:

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Nasir Glass has fully fire furnished surface and executes a fine luster, which resist scratches, dust & dirt. It’s easier to clean.

Solar Heat Energy Absorption:

Tinted Nasir Glass absorbs 30 to 35 percent of the solar radiation heat (depending on the tint and thickness of glass), reduces the flow of heat into the buildings and keeps the building cool and comfortable.

Beautification:

Nasir Glass enhances the aesthetics appearance of buildings. It provides flexibility which helps Architects and Designers to use it in new design trends.

Protection Against Glare:

Tinted Nasir Glass has low visible ray transmittance, thus softening the glare of light.

Strength & Durability:

Nasir Glass is very strong & durable because it is free from bubbles & ripples.

Window Glazing

Nasir Glass is the best choice for any window glazing application for its superior strength, high optical clarify, undistorted, smooth surface & flexibility in sizes.

Curtain & Partition walls

Nasir Glass enables to design curtain & partition walls owing to its inherent strength & availability of various sizes. Besides giving modern looks, it reduces the overall dead weight of buildings, allows faster construction & requires less expensive maintenance.

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The heat absorbing ability reduces the air conditioning & lighting load largely, thus saving precious energy.

Home Doors & Decorations

For its crystalline, transparent & tinted quality, Nasir Glass is the first preference for home doors, cabinets and different decorations.

Shop Fronts & Decorations

The shiny, strong, distortion free Nasir Glass provides a distinct image to a shop. The easy maintenance & non-inflammability of the glass make it an essential material for display cabinets, partitioning, screening & decoration.

Furniture’s

Due to its versatility, Nasir Glass is ideal for furniture, tabletops, shelves, cabinets, showcases & sliding doors of large cabinets, cupboards, etc.

Mirrors

Nasir Glass gives perfect reflected image when turned into mirror.

Tempered Glass

For its strength & durability, Nasir Glass also gives perfection as Tempered Glass.

REFLECTIVE GLASS

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A REFLECTIVE GLASS is made by high velocity electric sputtering of metallic elements or compounds on to a glass substrate in vacuum or in presence of special gas.

Functions & Features:

Reflecting glass l owers the initial construction time & cost of the building.

Lowers the operation cost of air conditioning by reflecting the solar energy.

Makes buildings aesthetically beautiful by offering variety of colors to glazed the building appearance, attracting customers and enhancing renta l and sa l es value of the building.

Makes a room comfortable by conrolling light transmittance,

which ranges only 8-30% and reducing sun glare.

Applications:

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Reflective glass can be used as curtain walls for office buildings, hotels, department stores, hospitals, laboratories, computer rooms etc. where requires no direct sun glare.

It can also serve as mirror glass for room decoration.

It serves as 'antipeep' and 'antisteal' barriers.

 

Specialized Application

Nasir Glass is also producing specialized crystallized glasses, coated glasses.

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Chemical reactions and process of making float Glass:

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4.1.2A basic comparison of Nasir Glass products with the PHP glass:

PHP Glass and Nasir Glass are the main compotators of each other in the glass market. They are competing in the same market with more or less same products. But Nasir Glass is bigger, manufacture more specialized products and it is holding more percentage of the total share of the glass market. There are two more glass companies in Bangladesh, they are not as big and as technologically improved as PHP or Nasir Glass. They are covering a small portion of the market comparing to PHP or Nasir Glass. So the main competition is prevailing between the PHP Glass and the Nasir Glass. A comparison on the basis of product between this two gigantic Glass producer in Bangladesh is given below…

Products of Nasir Glass: Float Glass : :73,000 M.T./annum Shades :Clear, Coffee Bronze (light & deep),

Dark Gray, Ocean Blue, Green.

 Tempered Sheets :Clear/Tinted/Coated: 154,560 m2 /_annum.

 Coated/Reflective Sheets

:Varieties of Shades on

Clear/Tinted Glass : 670,000m2/annum including Mirrors

 Thickness Range :3 mm to 1 2 mm (2mm also possible).

 Sizes of Glass Product

 cut on line

:Jumbo size : 96" x 144"

Medium size : 84" x 144" / 84" x 72"

Small size: 42" x 48"

Other sizes on request as perm i ssib l e.

Products of PHP Glass:

Float Glass:

Clear & Tinted (Heat Absorbing)

Shades:

Clear, Bronze, Blue, Dark Grey & Light Grey.

Thickness:

2mm to 12mm

Sizes : Wide range of sizes: up to 2130mm x 3600 mm (84 inch x 142 inch) larger sizes

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can also be produced if transportation & handling constraints can be overcome.

Brand:

"PHP Glass"

Standard:

Japanese Industrial Standard R3202.

4.1.3Product mix expansion The company is increasing its variability of products within the same brand by manufacturing glasses of different colors, sizes and thickness. By doing this company is expanding its product mix. The company is doing this to gain a competitive advantage generating more sales and build customer satisfaction. By this the company is letting their customers making choices as they like among a variety of products. The company is doing this because the company wants to capitalize on its strength and experience.

4.1.4Alteration of existing product The company is altering its products by continuously improving its existing products. This intern is more profitable and less risky for the company. By continuously altering existing products the company is leading in the competition.As the company is competing with both the domestic and foreign companies it is important for the company to improve its products constantly for survive in the competition market.

4.1.5Product life cycle

Product Phases (life-cycle)

Products also go through what is known as a life cycle or phase.  When exploring what mix is best suited to your product, companies should also consider where in the life cycle their products lie:

Introductory Phase If a company is releasing a brand new product or service then it will be a baby in the market and will need to be introduced to the market.  How it prices, promotes and places this into the market place will need careful consideration.

Growth Phase

If its product or service has been enjoying being the only one on the market, it may have noticed that others are also joining in and entering a competitive product or service and this will have an affect of the healthy sales it might be enjoying at the moment.  How it react to this will have an impact on the survival of your product - Will the company drop the price to compete, will it change the way in which it promotes products, will it change the distribution method? 

Maturity Phase

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If its product is one of many competing products, then it can consider that its product is a mature one.  If this is the case then it has to take care that interest for its product is not lost.   Maturity of a product is a dangerous time and it could get swallowed up by its competitors. As with a product in the growth part of the life-cycle - Will it drop the price to compete, will it change the way in which the company promotes it, will you change the distribution method? 

Decline PhasePerhaps the company has noticed that one of its products is losing its appeal; sales or interest might have dropped.  If this is the case, the product may be in decline and if the company is not careful the product may die.  This part of the cycle need careful consideration.  it might decide, enough is enough, and remove it from your shelves or it could re-invent it by changing by packaging or product name.  Take a close look at the market research data - could a company aim it at a different type of person?

The products of Nasir Glass are in growth stage currently. As the company started production only 2 years ago and has already supplying export quality glasses we can easily say it is in growth stage. It becomes popular in very short time. So, its introduction period was for a short period. The company is now supplying about 42% of the total domestic market demand and exporting to India, Nepal, Bhutan, Oceania and other countries. It required a very short period to become popular.

4.1.6Management of the life cycleAs the products of the company are in the growth stage the sales and profit of the Nasir Glass is increasing rapidly. To retain the growth stage the company is developing new products alternating the existing products. The company is spreading its markets and targeting new markets to increase its sales and profit. They are constantly assessing prices, revising prices, expanding distributions channels and enhancing promotional activities to maximize sales and profit. To do this it is continuously monitoring its competitors and the demand and wants of the customers.

4.1.7Some examples of product decision to be made:

Brands The word brand is comprehensive; it encompasses other narrow terms. A brand is a name and or mark intended to identify the product of one seller or group of sellers and to differentiate the product

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from competing products. Brand is also used not really correctly to refer to a specific product as in ~sales of the brand.”A brand name consists of words, letters and or numbers that can be vocalized. A brand mark is the art of the brand that appears in the form of a symbol, design or distinctive color or lettering. A brand mark is recognized by sight but cannot be expressed when a person pronounces the brand name. A trademark is a brand that has been adopted by a seller and given legal protection. Nasir Glass Brands its products by using the company name at the beginning of the products name like Nasir Color Glass, Nasir Reflective Glass etc.

Reasons for Branding For seller, brand can be promoted. They are easily recognized when displayed in a store or include in advertising. Branding reduces price comparison. That is because brands are another factor to be considered in comparing different products, branding reduce the likelihood of purchase decision that are based solely on price. The reputation of a brand also influences customer’s loyalty among buyers of services as well as business and consumer goods. Finally, branding can differentiate commodities.

Desirable CharacteristicsVarious characteristics determine the desirability of a brand name for either a good or a service. It is difficult to find a brand name that rates well on every attribute.

Suggest something about the product, particularly its benefits and use.Be easy to pronounces, spell and remember. Be distinctive. Be adaptable to additions to the product line. Be capable of registration and legal protection.

Branding Strategies Marketing entire output under producers’ own brands. Branding of fabricating materials and parts. Marketing under middlemen’s brands.

Among the above branding strategies Nasir Glass uses the first strategy Marketing entire output under producers’ own brands.

Branding within a product mix A separate name for each product. The company name combined with a product name. The company name alone.

Branding for market saturation With increasing frequency firms are employing a multiple brand strategy to increase their total sale in a market. They have more than one brand of essentially the same product, aimed either at the same target market or at distinct target markets.

Building and using brand equity We tend to think of brand equity as a positive aspect of a product. Occasionally a brand will have negative equity. In such a situation a brand creates unfavorably impressions about a product in a consumer’s mind.The brand itself can become an edge over competition, what are we call a differential advantage influencing consumers to buy a particular product. Because it is expensive and time consuming to build brand equity it creates a barrier for companies that want to enter the market with a similar product.

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Packaging and labeling Protect the product on its way to the consumer. Protect the product after it is purchased. Help gain acceptance of the product from middlemen. Help persuade consumers to buy the product.

Packaging strategiesA company must decide whether to develop a family resemblance when packaging related products. Family packaging uses either highly similar packages for all products or packages with a common and clearly noticeable feature.Multiple packaging.

Labeling: The Nasir Glass to its products does all the three types of the following labeling.

A brand label is simply the brand alone applied to the product or package. A descriptive label gives objective information about the product’s use, construction, care,

performance and other potential features. A grade label identifies a product’s judged quality with a letter, number or word.

Design:One way to satisfy customers and gain a deferential advantage is through product design, which refers to the arrange of elements that collectively form a good or service. Good design can improve the marketability of a product by making it easier to operate, upgrading its qualities, improving its appearance, and/or reducing production cost. A distinctive design may be the only feature that significantly differentiate a product. Nasir Glass is constantly changing its products designs to give the customers a variety of choice.

Color:Like design product color often is the determining factor in a customers acceptance or rejection of a product. Nasir Glass is producing color glasses in different colors.

Quality:There is no agreement on a definition of a product quality, even though it is universally recognized as significant. One professional society defines products quality as the set of feature and characteristics of a good or service that determines its ability to satisfy needs.Nasir Glass is using the advanced technology of producing different glasses. So they are being able to serve the market with the quality products.

4.2Price

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Price in economics and business is the assigned numerical monetary value of a good, service or asset. The concept of price is central to microeconomics where it is one of the most important variables in resource allocation theory (also called price theory). Price is also central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan.

4.2.1Pricing objectives of NASIR GLASS The firms pricing objectives must be identified in order to determine the opticalpricing.common objectives of NASIR GLASS include the following

Current profit maximisation Current revenue maximization Maximize quantity Maximize profit marzin Quality leadership Partial cost recovery Survivalstatus quo

No matter what type of product for sell, the price what will charge the customers or clients will have a direct effect on the success of business. Though pricing strategies can be complex, the basic rules of pricing are straightforward:

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All prices must cover costs and profits.

The most effective way to lower prices is to lower costs.

Review prices frequently to assure that they reflect the dynamics of cost, market demand, response to the competition, and profit objectives. Prices must be established to assure sales.

Pricing decisions require time and market research, the strategy of many business owners is to set prices once and "hope for the best." However, such a policy risks profits that are elusive or not as high as they could be.

When is the right time to review your prices? Do so if:

You introduce a new product or product line;

Your costs change; You decide to enter a new market; Your competitors change their prices; The economy experiences either inflation or recession; Your sales strategy changes; or Your customers are making more money because of your product or service.

4.2.2Available pricing methods:

There are many ways to price a product. Let's have a look at some of them and try to understand the best policy/strategy in various situations.

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Premium Pricing.

Use a high price where there is a uniqueness about the product or service. This approach is used where a a substantial competitive advantage exists. Such high prices are charge for luxuries.

Penetration Pricing.

The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased.

Economy Pricing.

This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc.

Price Skimming.

Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented. Premium pricing, penetration pricing, economy pricing, and price skimming are the four main pricing policies/strategies. They form the bases for the exercise. However there are other important approaches to pricing.

Psychological Pricing.

This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis. For example 'price point perspective' 99 cents not one dollar

Product Line Pricing.

Where there is a range of product or services the pricing reflect the benefits of parts of the range. For example car washes. Basic wash could be $2, wash and wax $4, and the whole package $6.

Optional Product Pricing.

Companies will attempt to increase the amount customer spend once they start to buy. Optional 'extras' increase the overall price of the product or service. For example airlines will charge for optional extras such as guaranteeing a window seat or reserving a row of seats next to each other.

Captive Product Pricing

Where products have complements, companies will charge a premium price where the consumer is captured. For example a razor manufacturer will charge a low price and recoup its margin (and more) from the sale of the only design of blades which fit the razor.

Product Bundle Pricing.

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Here sellers combine several products in the same package. This also serves to move old stock. Videos and CDs are often sold using the bundle approach.

Promotional Pricing.

Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGOF ( Buy one get one free).

Geographical Pricing.

Geographical pricing is evident where there are variations in price in different parts of the world. For example rarity value, or where shipping costs increase price.

Value Pricing.

This approach is used where external factors such as recession or increased competition force

companies to provide 'value' products and services to retain sales.

Cost-Plus Pricing

It use cost-plus pricing. The key to being successful with this method is making sure that the "plus" figure not only covers all overhead but generates the percentage of profit you require as well. If the overhead figure is not accurate, the risk profits that is too low.

Demand Price

Demand pricing is determined by the optimum combination of volume and profit. Products usually sold through different sources at different prices--retailers, discount chains, wholesalers, or direct mail marketers--are examples of goods whose price is determined by demand. A wholesaler might buy greater quantities than a retailer, which results in purchasing at a lower unit price. The wholesaler profits from a greater volume of sales of a product priced lower than that of the retailer. The retailer typically pays more per unit because he or she are unable to purchase, stock, and sell as great a quantity of product as a wholesaler does. This is why retailers charge higher prices to customers. Demand pricing is difficult to master because it must correctly calculate beforehand what price will generate the optimum relation of profit to volume.

Competitive Pricing

Competitive pricing is generally used as there's an established market price for a particular product or service. Competitive pricing is used most often within markets with commodity products, those that are difficult to differentiate from another. If there's a major market player, commonly referred to as the market leader that company will often set the price that other, smaller companies within that same market will be compelled to follow.

Competitive pricing effectiveness

Know the prices each competitor has established.

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Figure out your optimum price and decide, based on direct comparison.

Should wish to charge more than your competitors, be able to make a case for a higher price.

Provide a superior customer service or warranty policy.

Before making a final commitment to prices, be sure the level of price awareness within the market.

Markup Pricing

Used by manufacturers, wholesalers, and retailers, a markup is calculated by adding a set amount to the cost of a product, which results in the price charged to the customer.

Steps in determining prices:

4.2.3Strategies used by nasir glass to determining price:

Various types of strategies are used in pricing considering the objectives of the company, products and their pricing methods. As the pricing objective of Nasir glass is profit maximizing, they mostly use market-skimming pricing for their new and specialized products. It also follows market penetration strategy for the competing products. It uses penetration pricing which is comparatively low pricing but the target is to capture the biggest share of the market. So we can that It follows a matrix strategy for pricing its products.

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Other strategies followed by Nasir Glass:

Price Set in Relation to Market Alone

Nasir Glass uses cost plus pricing but it also considers the price in relation to the market competition. Nasir Glass has three options – such pricing can be for the meet competition.

In glass market of Bangladesh there are not very much competition. Only a few company are existed. So, Nasir Glass doesn’t recognize the price to meet competition.

Nasir Glass follows pricing below the competition. Actually it wants to capture the market. And that’s why it launches its product in the market as a price, which is below than the competitors. Nasir Glass does it to increase the share in the market. It wants to increase its sale volume and to earn maximum profit. The most important message is this pricing is done by discount retailers.

Another option is pricing above competition. Normally Nasir Glass don’t follow this method but if it produce a distinctive product then it charge high price for that product.

Geographic Pricing strategy

Nasir Glass is sold all over the country even outside the country. So, it is the important fact to consider the freight of the product. Recognizing the geographic, Nasir Glass may establish pricing policies whereby the buyer pays the entire freight expenses, the seller bears the whole burdens or the seller and buyer share this expense.

In geographic strategy, Nasir Glass recognizes the zone delivered pricing. In this system, price of the product will be varied according to their destination. If the destination is too far then the price of the product will be high compare with the product whose destination is in near. So, depending on the destination the price is varied. To make the charge easy, Nasir Glass has divided the total geography in various zone and determined the charges for each zone. The destination is situated in which zone; the pricing will be varied according to the charge of that zone.

Price Lining

Price lining involves selecting a limited number of prices at which a business will sell related products.

Nasir Glass selects the prices for their same categories product. It firstly categories their product and then select the price each category.

4.2.4Method used in pricing by Nasir Glass:

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Using a particular pricing method is important for pricing products. As there are many pricing methods prevailing in markets, the Nasir glass company is using mainly the cost plus pricing method. This method sets the price where both cost desirable profit are considered to determine the price. So the cost plus pricing is

Price = cost for product + desired profit.

Reasons behind the selecting cost plus pricing method -----------

Its objective is giving emphasis over the earning profit. Here cost and profit can be easily identified. It can predetermine the profit when pricing of a product. So desired

profit can be easily identified. This method is over all easy to determine price.

Cost plus pricing: To price in this method, Nasir glass consider three factors. These are

Total cost plus a desired profit Marginal analysis Competitive market condition.

Although it is an easy method it has some limitation. Firstly one is – it does not recognize various types of cost, secondly- it ignores the market demand. To overcome this limitation the Nasir Glass’s pricing is not only basis of cost and profit. But it also considers the demand of the market. Actually it is following a matrix method for pricing. But pricing will be made in which point where profit is obvious. So they combined the profit and market demand in pricing. In identifying the cost they consider the total cost.

4.2.5Break-even analysis

Nasir Glass Company does break-even analysis as it considers both demand and cost in price determination. The break-even point is that quantity of output at which total revenue equals total cost, assuming a certain selling price. It helps to find out revenue cost and profit. Nasir Glass made the price by cost plus pricing. Then Nasir Glass want to know is their pricing efficient or not. To

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know the answer Nasir Glass made break-even analysis recognizing selecting price. And make the final decision about the price of the product. It also makes decision about the sale volume, revenue and profit.

Total Fixed costBreak-even point in unit =

Unit contribution to overhead

Here,Unit contribution to overhead = Selling price – Average variable cost

In cost plus pricing there is also two methods such as

Prices based on marginal cost Pricing by middlemen

But Nasir glass does not follow any of these methods because of the following reasons…

Ignore prices based on marginal cost: Nasir Glass Company uses expensive machineries for production. This cost affects hugely on the cost of final products. If they ignore this fix cost or pricing mainly bases on marginal cost it would not be suitable for the company. This method is appropriate for only those companies who use less expensive machine for production.

Ignore pricing by middlemen:

The reasons behind ignoring the pricing by middlemen are as follows

Most retailing prices are really just offers. Customers may accepts the price or reject the price. If they reject the price, the company must change the price or the product will be out of the market.

All retailers do not use the same markup. These different markups for distinctive product reflect competitive consideration and other aspects of market demand.

Actually middlemen don’t set the price. They only add percentages on the price; the pricing is really done by the producers.

4.3PROMOTION

Another one of the 4P's is 'promotion'. This includes all of the tools available to the marketer for

'marketing communication'. Marketing communications has its own 'promotions mix.' Think of it

like a cake mix, the basic ingredients are always the same. However if you vary the amounts of one

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of the ingredients, the final outcome is different. It is the same with promotions. You can 'integrate'

different aspects of the promotions mix to deliver a unique campaign.

4.3.1Promotional objectives

Awareness: Nasir Glass has come in the Bangladesh market in 2005 with their various types f products as – float glass, colour glass, clear glass, crystal glass, reflecting glass etc. Nasir Glass wants to familiar by product with the customers. And for this purpose the company does varies promotional activities.

Knowledge: Knowledge goes beyond awareness to learning about a product’s feature. Company’s first objective is creating awareness and the second objective is gaining knowledge within the customers about the product.

Linking: Linking refers to how the market feels about the product. Nasir Glass wants to move a knowledgeable customer from being indifferent to linking a product.

Preference: Creating preference involves distinguish among existing brand in the market such as – PHP Glass, Osmania Glass, Motalib Glass, Bengal Glass. Company’s objective is to positioning the Nasir Glass in the high point.

Conviction: Conviction entails the actual decision or commitment to purchase.

Purchase – Purchase can be delayed or postponed indefinitely, even for customers who are convinced they should buy a product. The company’s objective is making the actual purchase by the customers.

4.3.2Methods

There are some main aspects of the Promotional Mix of this company. These consist of:

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Advertising- Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails.

Various types of media Nasir Glass Company uses various types of media. In selecting the media Nasir Glass consider the following factors—

1. The purpose of particular advertisement and the goal of the entire campaign influence which media to use.

2. The advertise will be considering the geographic where it will be advertised. 3. The media should fit the message. 4. Time and location of the buying decision. 5. Company analysis the media cost.

Media using by the Nasir Glass:

Television – It is a most important media for advertising. Most people enjoy television program a reasonable time of a day. So, Nasir Glass Company advertises their product on this media for increasing their sell.

Direct Mail – Nasir Glass some times advertise about its different products to its existing and potential customers by direct mailing them.

News Paper – As an advertising media newspapers are flexible and timely. Newspapers can be used to reach an entire city or where regional editions are offered selected areas. After analyzing these facts Nasir Glass Company uses newspaper for advertising their products.

Radio – After inventing the television, Radio audiences declined so dramatically that some people predicted Radio’s demise. However, Radio has enjoyed a rebirth as an advertising and cultural media. With the number of stations increasing at a steady rate radio is a low cost per thousand media because of its broad reach. Nasir Glass Company uses Radio for advertising their program.

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Magazines – Magazines are the media to use where high quality printing and color are designed can reach a national market at a relatively low cost per reader. In recent years the rapid increase in special interest magazines and regional editions of general interest magazines has made it possible for advertisers to reach a selected audience with a minimum of wasted circulation. So, Nasir Glass Company advertises their product on magazines.

Out of Home Advertising: Now a day many companies are spending on out-of-home advertising. Nasir Glass Company also advertises their products on out of home advertising. It may be billboard, Poster, Banner, and Neon light.

Personal selling- A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation.

Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone.

Sales promotion- Incentives designed to stimulate the purchase or sale of a product, usually in the short term.

Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.

Public relations- Non-paid non-personal stimulation of demand for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media.

Examples: Newspaper and magazine articles/reports, TVs and radio presentations, Charitable contributions, speeches, issue advertising, and seminars.

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Social responsibilities:

Alhaj Doino Hospital is one of the major concerns of PHP Foundation. The hospital is established in 2006, situated at Tongi. A 3-storied building comprises 15,000 sft., the hospital is running completely non-profitable basis. Main objective of the hospital is to provide low-cost quality medical services, especially to the less affluent section of the population where male/female doctors, staff nurses and number of trained medical technicians is working with their full effort. Specialist doctors of different discipline giving their services on call round the clock.

The services provided by the hospitals are Medicine, Orthopedics, General Surgery, Gynecology & Obstetrics, Pediatrics, Oncology, EPI (Expanded Program for Immunization) and special care center for mother & babies.

The hospital runs a modern diagnostic center where various examinations tested at nominal fee. The investigations that carried out through the diagnostic center are Pathology & Biochemistry, X-rays, ECG, and Ultrasonography, video-endoscopy etc. The Hospital indoor department has 20 beds and a well-equipped operation theatre complex. Besides, hospital runs “Specialist Consultancy Service” programs weekly to get the best treatment from the Most Experienced & Specialist Doctors for the poor villagers.

Hospital has 24-hours ambulance service and a pharmacy dept. – from where medicine are supplied to both indoors & outdoors patient at a very reasonable price.

Almost in every year the Hospital performs a number of special service programs like Free Medical Camp, Health Education Program, Maternity & Child Health Care, Sanitation & Hygiene, Cancer awareness to the villagers, and also sending Voluntary medical & relief team during flood & other disaster.

The Hospital future plan is to establish a Medical University and Cancer Research Institute.

Sponsorship is sometimes added as a fifth aspect. The company is now sponsoring many social competition, debates, cricket matches, stage plays etc

Web promotion is also a promotional mix.

4.3.3Promotion budget: Establishing promotion budget is extremely challenging. Because management lacks reliable standards to determine how much to spend altogether on advertising, personnel selling and the remainder of promotional mix. Now the money spend in promotional activities is treated as investment. So company must made the budget to fix the amount for promotion, divide the amount among the all-promotional mix and the budget should be recover for the prosperity of the company.

Nasir glass involves in promotional activities and it budgets in promotion investment on basis of percentage of sales .the method can be divided into two parts. First- determine the estimated sales and second identify the percentage what will be spend for promotion.

4.3.4Regulation of promotion:

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The primary objective of promotion is to sale something through persuasion. One may be persuaded to buy these products, but it may also be vanished if no regulatory promotion is occurred. He may forgotten that product .so how it will be possible for him to buy that product. In regarding this importance the nasir glass company always trying to make regulatory promotional activities. This company continuing it by running various method of promotion such as ------Personnel, selling, advertise, sales promotion etc.

When deciding upon your unique marketing communications mix, you should also consider the Product Life Cycle. Here are some general guideline as to how and when to emphasize different parts of the mix according to the stages of a typical product life cycle:

Product Life Cycle

Pre-Introduction: Light advertising, pre-introduction publicityIntroduction: Heavy use of advertising, public relations for awareness, sales promotion for trialGrowth: Advertising, public relations, branding and brand marketing, personal selling for distributionMaturity: Advertising decreases, sales promotion, personal selling, reminder & persuasionDecline: Advertising and public relations decrease, limited sales promotion, personal selling for distribution

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4.4Distribution

Distribution (or placement) is one of the four aspects of marketing. A distributor is the middleman

between the manufacturer and retailer. After a product is manufactured it may be warehoused or

shipped to the next echelon in the supply chain, typically either a distributor, retailer or consumer.

Broadly speaking, distribution concerns the methods, processes, infrastructure, institutions and

pricing mechanisms required to bring a product from manufacturers to consumers. Product may pass

from distribution partner to consumer via various "channels of trade", where a channel of trade is

defined to be an established market mechanism for distributing and selling products that follows a

well-understood set of merchandising, settlement and delivery policies. Consequently, distribution

strategy encompasses elements of marketing, merchandising, delivery and logistics: the set of

business rules and processes used to move the product or service through the supply chain to the end

customer. Distribution strategy addresses questions about appropriate logistics service providers

(such as 3PL's), channels of trade, pricing and service policy. The NaSir Glass company has its

deaklers almost in every district of Bangladesh. It has its own transport facilities for supplyiong he

products to their dealers.

The distribution channel:

Frequently there may be a chain of intermediaries, each passing the product down the chain to the

next organization, before it finally reaches the consumer or end-user. This process is known as the

'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific

needs, which the producer must take into account, along with those of the all-important end-user.

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4.4.1Channels used by Nasir Glass:

A number of alternate 'channels' of distribution may be available:

Selling direct, such as via mail order, Internet and telephone sales

Agent, who typically sells direct on behalf of the producer

Distributor (also called wholesaler), who sells to retailers

Retailer (also called dealer or reseller), who sells to end customers

Advertisement typically used for consumption goods.

First the products are supplied from the factory to the main dealer at Babubazar. Then the main

dealer supplies the products to the sub-dealers at 54 districts. These sub-dealers control the total

distribution channel within the districts. The products are supplied from sub-dealers to the retailers.

The customers can purchase either from the sub-dealer or from the retailers. The company has more

than 100 retail shop all over the Bangladesh totally owned by the company.

Sometimes customers with big orders purchase products from the company directly or from the main

dealer. The company gives a ordering service for its customers to give order through its official web

sites.

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GAZIPURFACTORY

NASIR GLASS

BABUBAZARMAIN

DEALERSUB

DEALER

RETAILER CUSTOMER

In the remote areas where the company does not have any sub-dealer or retail shop, the company

sells its products to those areas by hiring retailers.

The distribution channels for exporting products are not as the same as the distribution channels used

for supplying products within the country.

When an international buyer gives an order to the company, the company supplies the products by

direct shipment to that buyer.

The company has its own transportation division for transporting the products to its dealers and

retailers within the country.

4.4.2Channel management

The channel decision is very important. In theory at least, there is a form of trade-off: the cost of

using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer

goods manufacturers could never justify the cost of selling direct to their consumers, except by mail

order. In practice, if the producer is large enough, the use of intermediaries (particularly at the agent

and wholesaler level) can sometimes cost more than going direct.

Many of the theoretical arguments about channels therefore revolve around cost. On the other hand,

most of the practical decisions are concerned with control of the consumer. The small company has

no alternative but to use intermediaries, often several layers of them, but large companies 'do' have

the choice.

However, many suppliers seem to assume that once their product has been sold into the channel, into

the beginning of the distribution chain, their job is finished. Yet that distribution chain is merely

assuming a part of the supplier's responsibility; and, if he has any aspirations to be market-oriented,

his job should really be extended to managing, albeit very indirectly, all the processes involved in

that chain, until the product or service arrives with the end-user. This may involve a number of

decisions on the part of the supplier:

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Channel membership

Channel motivation

Monitoring and managing channels

4.4.3Channel membership

1. Intensive distribution - Where the majority of resellers stock the `product' (with convenience

products, for example, and particularly the brand leaders in consumer goods markets) price

competition may be evident.

2. Selective distribution - This is the normal pattern (in both consumer and industrial markets)

where `suitable' resellers stock the product.

3. Exclusive distribution - Only specially selected resellers or authorized dealers (typically only

one per geographical area) are allowed to sell the `product'.

4.4.4Channel motivation

It is difficult enough to motivate direct employees to provide the necessary sales and service support.

Motivating the owners and employees of the independent organizations in a distribution chain

requires even greater effort. There are many devices for achieving such motivation. Perhaps the most

usual is `incentive': the supplier offers a better margin, to tempt the owners in the channel to push the

product rather than its competitors; or a competition is offered to the distributors' sales personnel, so

that they are tempted to push the product. At the other end of the spectrum is the almost symbiotic

relationship that the all too rare supplier in the glass industry with its dealers; where the dealer's

personnel, support as well as sales, are trained to almost the same standard as the supplier's own

staff.

Nasir Galss motivates its dealers and retailers by suppling products at less price than the usual

market price, giving them allownces and discounts on total salles and purchase. The company also

helps them by lending them financial help.

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4.4.5Monitoring and managing channels

In much the same way that the organization's own sales and distribution activities need to be

monitored and managed, so will those of the distribution chain.

In practice, many organizations use a mix of different channels; in particular, they may complement

a direct salesforce, calling on the larger accounts, with agents, covering the smaller customers and

prospects.

Vertical marketing:

This relatively recent development integrates the channel with the original supplier - producer,

wholesalers and retailers working in one unified system. This may arise because one member of the

chain owns the other elements (often called `corporate systems integration'); a supplier owning its

own retail outlets, this being 'forward' integration. It is perhaps more likely that a retailer will own its

own suppliers, this being 'backward' integration. The integration can also be by franchise or simple

co-operation.

Alternative approaches are 'contractual systems', often led by a wholesale or retail co-operative, and

`administered marketing systems' where one (dominant) member of the distribution chain uses its

position to co-ordinate the other members' activities. This has traditionally been the form led by

manufacturers.

The intention of vertical marketing is to give all those involved (and particularly the supplier at one

end, and the retailer at the other) 'control' over the distribution chain. This removes one set of

variables from the marketing equations.

Other research indicates that vertical integration is a strategy which is best pursued at the mature

stage of the market (or product). At earlier stages it can actually reduce profits. It is arguable that it

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also diverts attention from the real business of the organization. Suppliers rarely excel in retail

operations and, in theory, retailers should focus on their sales outlets rather than on manufacturing

facilities.

Horizontal marketing

A rather less frequent example of new approaches to channels is where two or more non-competing

organizations agree on a joint venture - a joint marketing operation - because it is beyond the

capacity of each individual organization alone. In general, this is less likely to revolve around

marketing synergy.

Among this above distribution strategy the Nasir Glass uses the vertical marketing stategy to control

its total distribution channel. The company has a controlary power over its dealers and retailers. It

owns many sub-dealers and retailers in many district to enpower the vertcal marketing system it use.

Chapter: Five

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Conclusion

The 4 P’s elements are interrelated, decisions in one area affects the action in another. Design a 4

P’s is certainly affected by whether a firm chooses to compete on the basis of price or on one or

more other elements. When a firm relies on prices as its primary competitive tool, the other elements

must be designed to support aggressive pricing. For example, the firms competing on the basis of

price their promotional campaign likely will be built around a theme of “Low Price”. In non-price

competition, however, product, distribution, and/or promotional strategies come to the forefront. For

instance, the product must have feature worthy of higher price, and promotion must create a high

quality image for the product.

Each 4 P’s elements contain countless alternatives. For instance, a producer may make and market

one product or many; the products may be related or unrelated to each other. They may be

distributed through whole sellers, to retailers without the benefit of wholesalers, or even directly to

final customers. Ultimately, from the multitude of alternatives, management must select a

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combination of elements that will satisfy target markets and achieve organizational and marketing

goals.

The Nasir Glass has set a combination of all the 4 P’s elements. The company is

trying to supply export quality products at a cheap rate than its competitors and imported glasses. So

it is competing both on the basis of quality and price. The company is also enhancing its promotional

activities to raise its sales volume and maximize profit. The company uses a short vertical

distribution channel to distribute its products. At a glance to compete in a competitive market, where

both domestic and international competition is present, the 4 P’s the Nasir Glass is using is a

successful one.

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