Dealers Perception Towards Partex Furniture Industries Limited

Abstract

In this research, a fervent appeal has been made to demonstrate and analyze the Dealers Perception towards Partex Furniture Industries Limited. The main purpose of this research is to explore the Dealers Perception towards PARTEX Furniture Industries Ltd. The study has been conducted by using a non-probability convenience sampling method of telephone interviewing. For this purpose a total 20 responded were interviewed with a structured questionnaire. How long they have been working as a dealer/agent of Partex Furniture and variety of products & services of Partex Furniture Industries Ltd, these two factors are followed by frequency statistics and the study finds the satisfactory levels across the factors  to determine the availability of product, delivery of a product on required time, perception about quality of products, design, price, after sales service, promotional campaign, response of any problem from company, quantity of sales, process to be a dealer and  the perception about the brand name by using descriptive statistics.

Introduction

There was a time when good furniture meant beds, chairs, tables, and cabinets made of segun or teak. Over the last decade or so, though, things have changed. Wood is no longer the only material for furniture. Designs, too, are varied, modern and on par with good furniture from anywhere in the world.

In Bangladesh wood is used for firewood and some village houses, but the lion share of it, approximately 80%, is consumed by the furniture industry. So it is important to find a substitute for wood for making furniture. This concern for the rapidly vanishing timber prompted a number of western countries into undertaking research and Partex and plywood are the results of those drives. The Bangladesh Furniture Industry is one of the most promising growth sectors with export potential. According to the household income and expenditure survey of 2005, the domestic consumption growth rate is around 20%.There are approximately 40,000 furniture SMEs all over the country, employing around 180,000 people.

Earlier one would call a carpenter to make furniture to order in one’s backyard. Gone are those days too. Now the brand names like Otobi, Hatil, Navana and Partex has revolutionaries the furniture market in Bangladesh. In 1999 furniture made of Partex (compressed particle boards produced by the company Partex) emerged on the scene with a big bang. In 2002 Navana and Hatil Furniture, almost simultaneously, began to manufacture furniture made of Partex and very shortly Partex furniture became a craze. Similar products hit the market in rapid succession — particle boards, medium density fiber (MDF) boards, melamine laminated boards and veneer boards. Furniture companies grabbed up these new products and used them to making fashionable furniture.

Currently dominated by thousands of small workshops, the furniture sector is in a transition phases towards industrialization. Simultaneously, there is a small but growing segment of larger firms who are gradually entering the market.

This report determines two factors of PFIL. The findings of this report would be useful to the company’s dealer control section to improve their service quality.

Objective of the Study

The main objective of the research is to find out the Dealers Perception towards Partex Furniture Industries Limited.

To accomplished the main objective; this study covered the following;

• To know about the furniture industry in Bangladesh
  • To know the working period of dealers and their perception about different types of    product and services offered to the customers.
• To identify the factors responsible to choose Partex Furniture.

 Furniture Industries/Companies of Bangladesh

Furniture industries are increasing day by day. In terms of Bangladesh some renowned brand company starts to dominate accounting for over increasing percent of the market, although non brand owners are growing their share due to a combination of labor intensive country. In term of distribution, furniture independents/specialists dominate with 35%, followed by multiples, departments/variety stores, mail order or others.

Some leading furniture company’s name: Partex furniture Industries Ltd., Navana Furniture, Hatil, Otobi, Akhter, Brothers, Noksha, Legacy etc.

PARTEX Furniture Industries Limited is a relatively latest wing of the conglomerate PARTEX GROUP. PARTEX Furniture Industries Ltd. is the sixteen overture of the ever- expanding PARTEX GROUP that is growing at the rate of 15% each year. The total number of dealer and agent outlets in Bangladesh is over 80 and showroom is 14.

A combination of special particleboard, timber and decorative plywood offers the best quality and cost effective substitute for natural timber. This results in custom-made, innovative and stylish furniture. In the future, Partex furniture hopes to broaden the horizon of product to meet the ever growing demand of furniture for the house, office and school.

Hatil Complex Ltd. Is a leading doors and furniture manufacturer in Bangladesh. Hatil has been established in 1989 following the footsteps of H.A. Timber Industries Ltd. – company running from 1966 in timber processing sector.

There vision is achieving excellence through quality of products and customer service by adding comfort, functionality, durability and innovative design to lifestyle.

Otobi started off with office furniture but now has a full range of furniture for the home. While its designs set Otobi apart, the quality of its products is also very high. Very soon Otobi made it to the international market, something few could actually imagine before Otobi actually did it. Significantly Otobi’s spectacular achievement triggered a whole new generation of entrepreneurs. It has been established in 1975.

Otobi is one of the familiar furniture companies in Bangladesh and it has the share 34%. PARTEX has 29%, Navana 22% and others are 15% market share.

Above these all companies have their own showroom and dealer’s showroom. These dealers are the representative of all companies and are important part to increase those companies profit.

Scope of Export

A furniture industry of Bangladesh has a huge scope to export if government takes some step to encourage, and ensure them to help.

Constitutes of successful exports

Trade fair have been an effective tool in entering the export market. It is also important to have an effective promotion strategy and good branding to gain the international attention to Bangladesh furniture. The quality of furniture with proper certification is also very important for export.

In order to increase export, following are some of the areas that need to be addressed:

• Improving quality, particularly related to finishing and packaging
• Improving the image of Bangladesh on the social and environmental issues
• Increasing the design capacity in the country
• Branding of Bangladeshi furniture
• Understanding the international market and segmenting for exports
• Increasing production efficiency with proper layout and raw material handling
• Following an export development

Dealer

Dealer is defined as any person engaged in the business of buying and selling products for his own, through own or otherwise. Or,

Individual or firm that buys goods from a producer or distributor for wholesale and/ or retail reselling. Unlike a distributor, a dealer is a principal and not an agent.

Perception

Perception is defined as the process by which an individual selects, organize and interprets stimuli into a meaning full and coherent picture of the world.

Elements of Perception

  Sensation

Sensationis a immediate and direct response of the sensory organs to stimuli. Examples of stimuli include products, brand names, advertisement and commercials.

  The Absolute thershold

The lowest level at which and individual can experience a sensation is called the absolute thershold.

  The different thershold

The minimal difference that can be decteted between two similar stimuli is called the different thershold.

Background of the PARTEX STAR GROUP

With an average annual growth of 15% PARTEX GROUP is at present one of the leading assemblage of companies in Bangladesh. Bonded with a staggering number of seventeenth alive business units PARTEX GROUP stands as a living example of successful vertical integration. In addition to this, the group is growing at a steady rate. PARTEX GROUP, which owns and successfully operates more than 17 manufacturing and trading concern.

A massive setup of five modern factories the group could successfully venture into the lifestyle of the people of this country. Today, Practically PARTEX dominates the consumer market for the products of its range. With the greater quest for the national emancipation and benefit for economic welfare for the country the group still envisages a vision and principle in its activities.

• Started in 1962
• Currently have 17 industries and trade concern
• 2000-2001 targeted turnover US$160 million
• Estimated Growth rate around 15% per annum
• Net worth at current market price nearly US$150 million
• Over 350 distributors around the nation
• Over 45000 outlets where products are available
• Over 7000 employees

PARTEX Furniture Industries Ltd.

PARTEX Furniture Industries Limited is a relatively latest wing of the conglomerate PARTEX GROUP. PARTEX Furniture Industries Ltd. is the sixteen overture of the ever- expanding PARTEX GROUP that is growing at the rate of 15% each year. The total number of dealer and agent outlets in Bangladesh is over 80 and showroom is 14.

PARTEX Furniture Industries Ltd. is located in Madanpur, Naryangonj, and Bandar. It is a135 (One hundred thirty five) Bighas / 100 acre (approximate) land of industrial unit. Star Particle Board Mills Ltd. is also located in the same vicinity.

A combination of special particleboard, timber and decorative plywood offers the best quality and cost effective substitute for natural timber. This results in custom-made, innovative and stylish furniture. Partex furniture produces a wide range of products that maximized the use of timber substitute. Within a short span of time, the company has able to capture a significant percentage of the total market share. Partex furniture is committed to using eco-friendly materials as much as possible.

In the future, Partex furniture hopes to broaden the horizon of product to meet the ever growing demand of furniture for the house, office and school.

Vision

We are the leading furniture solution provider in Bangladesh achieving our business vision through growth in market reach, increasing operation size, international distribution, total service and consistent branding activities by the being most customers focused and Innovative, cost effective and efficient, environmentally responsible & quality concerned company in the business.

Mission

To be the most consumer focused, competitive, efficient, innovative and environmentally responsible and quality concerned leading market oriented furniture manufacturer, sales and distributor of Bangladesh.

Values

Partex furniture’s values are divided into four categories which are maintains strongly their operations and activities. Those are:

• Customer Focused & Innovative
• Competitive & Efficient
• Environmental Stewardship & Excellence In Quality
• Integrity

Objective

Partex furniture’s main objective is to provide innovative, stylish and quality product to the customer.

Product and Services

Partex Furniture has developed a number of products to suit different individual and company needs.

Core Product

The total number of existing products in the market today

•  House Hold Furniture (Wooden)
•  House Hold Furniture (Laminated Board)
•  Mini bar (Wooden)
•  Computer Furniture
•  Kitchen Cabinets
•  Office Furniture
•  Work Stations
•  Chair
•  Doors

Types of Products:

PARTEX Furniture is one of the standard quality furniture companies. For their quality products they are becoming more popular furniture company name in customer mind.

OFFICE FURNITURE

• Conference Room chair
• Visitor Chair
• Executive Chair
• Manager Chair
• Filling Cabinet
• All kinds of Table
• Working Top
• Workstation
• Computer Table
• Imported wooden floor
• Imported picture Frames

 HOME FURNITURE

• Almirah
• Bed with bed side Table
• Built in cabinet
• Dressing Table
• Dining Table
• Dining chair ,Metal and wooden
• Kitchen Accessories
• Kitchen Cabinet
• Multipurpose display cabinet.
• TV trolley
• Wall paneling
• Sofa sets

Development of the Market

The furniture industry in Bangladesh has undergone changes in different ways, developments; particularly in year 2011 are as follows.

•  Increasing outlets or showroom
•  New products are being introduced to customer
•  Many new and old furniture companies existing in this side
•  The coverage area of furniture is also increasing rapidly-again Partex Furniture leading the place of the race
•  Competition has increased, provided the customer with more alternatives
• The spread of furniture sector in Bangladesh has created more career and employment opportunity
•  There has been major development of multinational or national company sector.
•  With the increase in number of furniture users the demand has increased.
•  Many new entrepreneurs are taking interest in the furniture industry.
• Competition has increased, providing the customer with more service.
•  There has been major development in furniture sector worldwide and Bangladesh is catching on.

Employees

In PARTEX Furniture there are few departments. Those are 1) Marketing & Sales departments, 2) Brand development etc. Marketing and sales departments are work directly under Sr. GM (M&S) and Sr. AGM. And numbers of employees are working under the supervision of other development section and dealers distribution.

Beside these employees, Partex furniture has a Sales team working in the field across the whole country. Regional sales manager are controlling these sales forces. They work at the retail outlet and corporate customer.                              

Overview of the Sales and Marketing Department

The sales and marketing department of Partex furniture is divided into 4 units. These units and their activities are given below:

Market Research      : Plans, set target, develop products

Marketing                 : Develops the advertisement, campaign materials

Distribution              : Distributes products, achieve sales target

Sales                         : Deals with retails and special sales such as corporate sales

Sales Department

Responsibility of Sales Department

• Market survey and collecting the feedback
• Participation in fairs / exhibition
• Participation in opening dealers outlets
• Instant and timely delivery
•  Introducing and selling new packages
• Follow up the existing customer
• Building up relation with retail and corporate customer
• Competitors activity analysis

Selling Procedure

• To build good relation with customers, to make good report with them, to acknowledge them about the Partex Furniture and their service to acknowledge its advantages, features activities etc.
• To do all necessary arrangement to sale the product which includes company

Brochures, furniture catalogs.

• Help customer to inform about the product, price, quality etc.
• Inform the customer to contact sales department if any problem they have faced.

Marketing Department

Sales and Marketing department activities are converted into two types of activities. They are Market Research and development and Market Communication

Market Communication

The functions of marketing department are manifold. However the main function can be articulated as to develop product and promote concept building for promotional activities.

•  Competitors activity analysis
•  Concept building for promotional activities
• It includes advertisement in the leading dailies and carryout promotional activities in the most effective manner within a given budget, to arrange outdoor advertisement, hoarding, promotion of gift items like dairy, calendar etc.

Market Research and Development (MRD)

Market research and development is a vital part of Partex Furniture in terms of its importance and role. This department facilitates communication between the different departments about existing and new products of Partex furniture. MRD also evaluate the possibilities and develop new product.

• MRD get feedback from sales, customer care and market communication departments regarding customer needs and market requirements.
• Feedback helps in redefining an existing product.
• New ideas are developed after evaluation of market demand.
• MRD department supports various departments in performing their job. After the market survey, for an example, they can suggest sales department about the possible no. of customer need of a particular area and the potential of introducing service to that area.

Market Strategy

Positioning

Partex Furniture objective is to improve people live by giving them the world-class style and elegance of their home and office furniture, keeping in this mind Partex Furniture introduced its service at an affordable price for everyone.

The positioning of Partex Furniture is done based on the following:

•  Quality
•  Warranty
•  Socially responsible company After sales service
•  Available

Branding

Partex Furniture is committed to build on its already strong brand equity, and the company has already achieved a high level of recognition after only few years in the market. Branding is very important in a developing country like Bangladesh.

Partex Furniture is associated with

• Integrity, commitment to the community, quality, professionalism, innovative and stylish furniture, conscious about environment and eco friendly, and characteristics which are all reflected in the company’s advertising, point of the sales displays, and customer service.
• Partex Furniture is also committed to acting honestly in its dealing with the customers, distribution partners, suppliers, and government institution and other multinational company.
• Partex has also been visible through other community activities such as a sponsorship of the game tournament.

Promotion

Partex Furniture uses frequent campaigns to drive subscriber growth. The campaigns are based on promotional pricing.

•  The offer generally includes discounted furniture with the service and features.
•  During the campaigns, Partex runs heavy outdoor advertising and inserts in major newspaper.
•  The largest campaigns are run in conjunction with major holidays such as during Eid, Bangla/English New Year, to encourage high volume sale when people are in buying mood.

SWOT Analysis

SWOT Analysis as an important tool for evaluating the company’s strength, weakness, opportunities and threats. It helps the organization to identify how to evaluate its performance and identify ways to minimize the affect of weakness in my business while maximizing my strength.

Strengths

•  Group Image
•  Strong Credit Rating
•  Strong Backward & Integration and Support
•  Goodwill in Wooden Segment
•  Established brand
•  Customer trust

Weakness

•  Limited showroom
•  Limited dealer network
•  Lack of variation of office furniture
•  Product lead time is high
•  Logistic support is not up to the mark
•  Showroom merchandizing is not expected level
•  Lack of dedicated product development team
•  Customer service & dealing is not expected level

Opportunities

•  Good market potential
•  Customer prefer branded product
•  Upward people living standard
•  Strong real estate growth
•  Peoples purchasing power is upward

Above those cares are only serves by Partex Furniture. This is the major opportunity for them to satisfy the people and to make more production.

Threats

• New companies
  • Expansion plan
  • Unhealthy price war

Methodology

Nature of the Research

In this report descriptive research is used. In telephone interviewing method has been used to conduct this report.

Sources of Data

All the marketing information comes from both internal and external sources.

During the preparation of the report,

• Primary data which is collected through questionnaire and
• Conducting different survey like observation method.

Primary Sources

From different employees in PARTEX Furniture I took interview.

• Face to face communication .I asked different question about their company.
• Asked different dealers by telephone interviewing.

Secondary Sources

I have also collected data and information from the source like

• Company prospectus,
• Brochures, Profile,
• Sales reports and reports of departments like customer’s relation, meeting minutes.

Data Collection Procedure

• Questionnaire survey
• Observation

 Population

The very basic step in research is to define the populations upon which are conducting this study. Population of the study has been identified as:

Dealers and outlets owners or top management employees who are listed with the Partex Furniture records.

Sampling Method

The study has been conducted by using a non-probability convenience sampling method.

Sample Size

A total sample size 20 responded was taken and the study is based on the findings from this sample size.

This questionnaire surveyed in different parts of country such as- 11 from Dhaka, 02 from Chittagong, 05 from Rajshahi and, 02 from Barisal.

Research Instruments (Questionnaire)

Questionnaire is very flexible and easy to collect answer than other instrument. I choose questionnaire as research instrument to collect primary data for the report. All details about questionnaire are given bellow:

• No of question: 17 question
• Questionnaire format: structured
• Question type: close ended and likert scale
• Font size: 11
• Line Space: 1.5

Limitations

• Not sufficient information related to the report from the company.

• Company policy about the secrecy of the organization.
• Difficult to take information from the respondents.
• Data sources are so limited
• Owing to time constraints it was not possible to survey all outlets.

This questionnaire surveyed in many cities of country such as- Dhaka (11), Chittagong (02), Rajshahi (05), Barishal (02).

Demographic Profile

Table:  Working Period

It shows that, 1 (5%) respondents/Dealers activities period 1-12 months, 6 (30%) dealers are between 1-3 years, 8 (40%) dealers are between 3-6 years, and 5 (25%) dealers are more than 6 years.

So, it has shown that most of the respondents are continuing their activities with PARTEX Furniture between 3 to 6 years.

Table:  Evaluations

It shows that, most of the respondents are12 (60%) and said that they are properly evaluated by company and 8 (40%) dealers are neutral.

Table: Varieties of Products & Services

It shows that, 12 (60%) dealers think that company need to offer more variety of products and 8 (40%) respondents are neutral.

Table:  After sales service

It shows that, 13 (65%) dealers’ thinks that company has to provide them after sales service and 7 (35%) dealers are neutral.

Table:  Future Plans

It shows that, 8 (40%) dealers’ thinks that they will work with company in future and 12 (60%) thinks that they are not sure about their activities with company.

                                                     Dealers satisfaction Level

From this table,

The availability of product: It is in satisfaction level because it scored more than 3 (4.00).

Delivery of product: It scored 2.85 which is less than 3.0. It means that delivery of a product on     required time is not satisfactory.

Perception about quality: It scored 3.35, which means that the perception about quality of products is positive that they are satisfied.

Design: Perception about the product design is positive because it scored 3.15 that they are quietly satisfied.

Price: Perception about the price of products is quite positive because it scored 3.20. This shows positive.

Commission: It shows that the respondents are mostly satisfied about the commission because it scored 4.40 which determine the positive side.

Promotional campaign: It scored 4.75, which shows that most of the respondents are satisfied about the promotional campaign.

Quantity of sales: Quantity of sales of product is in satisfactory level. It scored 3.85.

Brand name: This sector is in satisfactory level because dealers have no complain about brand name of this industry and they are mostly satisfied (it scored 4.75).

After sales service: This sector scored 2.40, which is less than score 3 and it shows that they are not satisfied about after sales service of Partex Furniture Industries Limited (PFIL).

Response against any problem from company: If they faced any problem company helps them positively and they are satisfied with the company’s response because it scored 4.50.

The procedure to be a Dealer: Respondents are quite satisfied about the procedure to be a dealer; it scored 3.10 which is more than the average mean score 3.0

According to discussion, delivery of a product on required time and after sales service, these two sectors scored less than 3.0, which show that company needs to recover on these sectors to satisfy dealers. But promotional campaign and brand name of a company makes dealers highly satisfied, because it scored 4.75 which are more than 3.0.             

Recommendation

Recommendation by questionnaire analysis

•  Company need to increase their production and delivery service to maintain customer’s requirement.
•  Company has to provide the dealers after sales service for products problem.
•  Dealer processing should be easier than other competitor.
•  They have to offer more variety of products and design to the customers.
•  Product price should be reduced up to a margin level of customers expectation

Recommendation by observation

• Sometimes company can give reward to those dealers and agents for their good achievement and it will increase their interest and motivation. It will also help the company to build more profit and effective
• Need to design all the products and services which could bring the loyalty
• Partex Furniture has to increase the facility according to the market expectation
• Should reduce the complexity of its service related concern.

Conclusion 

Partex Furniture Industries Ltd. is a still growing company, in spite of all the success it has achieved so far. It holds a high position in the furniture industry. Competition is always on the lookout for new ideas, interior and exterior design. In order to maintain its high position in the market, it is imperative that Partex Furniture focus on the people who matter most to the company.

Now the various dealers, distributors, outlets and agents are Partex Furniture’s representative to the people. It is the impression that individuals create, that will influence people’s impression of Partex Furniture. It is thus highly important for Partex Furniture to act favorably towards these individuals, give them as much as support and assistance as possible. Partex Furniture must make time to hear the feelings and views of these individuals.

According to the research, PARTEX Furniture Industries Ltd. has develop their delivery system, to offer variety of products, new design, satisfy those dealers who are not satisfied about company and take their positive suggestion. In order to be a successful company, it must take care of all its employees that make up Partex Furniture. Partex Furniture must make such an environment so that these dealers and agents can proudly say that they belong to the family of Partex Furniture Industries Ltd.

This research is only focused on the perception on the dealers’ perception towards Partex Furniture Industries Limited. So further research can be conducted on the customers’ perception towards Partex Furniture Industries Limited.