Assignment on Business Strategies of Kohinoor Chemical

Securing our future

To keep pace with the ever-changing global market scenario and to cater to the unmet healthcare needs of the nation, KCCL always concentrates its efforts in introducing new products with 15 presentation forms and strengths, which has already gained significant brand equity in the market. Some of the newly introduced products are:

Bactrol

Family Health care soap Bactrol was introduced by KCCL in 2005. Extensive consumer promotion, in addition to promotion to the healthcare providers, built a solid base to meet the changing social needs.

Sandalina Soap:

Sandalina Soap is  a first-time-in-Bangladesh product designed to capitalize a niche market-the FMCG market.

Training and Development Investment for future

The ever-changing market place has fuelled KCCL’s determination to keep up with the changing times by constantly strengthening the information base, exploring new lines of business and expanding domestic as well as its overseas marketing network. This prompted the company to undertake infrastructural development to built competitive advantage in order to retain its position as a leading Chemicals company. KCCL is committed to developing individual human, technical and conceptual skills through various educational and a wide range of internal and external human resource development and job related training programs each and every year.

At KCCL, a well planned and structural designed in-house training activity involving sales, marketing, manufacturing, QC, QA etc. is conducted throughout the calendar year. These training programs are conducted by in-house resources persons on a regular basis and as per schedule.

international Marketing Strive at becoming global

In KCCL we are proactive in our approach to aggressively search for new avenues in the international market place. Those are:

Kohinoor Chemical  is the pioneer in entering the CIS countries

KCCL is the first Chemical company in Bangladesh to receive NATIONAL EXPORT TROPHY.

 In Pakistan, KCCL took proactive measures in launching its products with Multimedia CD-ROM replacing the age-old printed promotional materials

 Kohinoor Chemical is the only Bangladeshi pharmaceutical company operating in Mayanmar market-one of the most stringent and regulated markets in Asia

Kohinoor Chemical was the first company from Bangladesh to enter the African Market

We are delighted and proud of our pioneering achievements. More than that, we have probably fulfilled a national aspiration of turning an import dependent country into an exporter of quality medicines. Despite the fact that there is no incentive for pharmaceutical export in Bangladesh, till today, we have not deviated from our proactive and pioneering role in international marketing.

Our endeavor that began amidst many obstacles has expanded to more than sixteen countries. In 2002, KCCL’s major emphasis in international marketing was to consolidate and grow in all its existing overseas markets by ensuring sustainable competitive advantage over our competitors’ brands. In 2002, we were awarded a tender order for our Tibet 570 Soap for the whole year’s consumption of Raffles Hospital-the most expensive and prestigious hospital in Mayanmar.

In order to expand our product portfolio in Myanmar, we have launched liquid/bottle items by organizing a huge scientific seminar. In Kenya, we have started supplying to MEDS —the largest institution and Kenyatta Market — the largest Market in Kenya.

While consolidating in all our existing overseas markets, we are determined to continue deploying our efforts and resources to develop new overseas markets in Asia, Africa, and Europe. As a part of our ongoing new market exploration activities, in 2002 we participated in all major exhibitions held in Russia, Ukraine, Afghanistan and Nepal. For evaluating business opportunities in new overseas markets, we conducted market research in various markets in Asia and Europe.

Central Product Management Dept. (CPMD)

The Central Product Management Department is the heart of marketing of Kohinoor Chemical Co. (BD) Ltd. This dept. controls all promotional activities of BPL products. It is headed by Produce Promotion Manager.

The CMP prepares the product plans. It determines how many products will get exposure in each month. The annual planning procedure is started in July and continues to January! February of the year of action. Usually, 15 — 20 products get exposure every month. Thus each product gets about 3 —4 times exposure every year.

One of its every important function is sales Forecasting. Sales forecasting is done monthly in association with the Sales Management Dept. During sales forecasting, previous sales trend and seasonal variations are taken into active consideration. Product life-cycle is also considered carefully.

EXECUTIVE SUMMARY

This is the internship report based on the one month long internship program that I had under in Kohinoor Chemical Co. (BD) Ltd. for last three months for a requirement of my MBA under Institute of Business Studies, DarullhsanUniversity.

The report is about “An Analysis of Current Level of Competitions & Strategies to Increase Market Share.” In Bangladesh, KCCL introduced the concept of marketing Branded Generics. The company stands out for its strong product differentiation, progressive management, and aggressive exploration of opportunities, such as penetration of international markets, introduction of newer drugs and high tech dosage forms. A good relationship with the Cosmetics community and an innovative marketing approach distinguish the KCCL (Tibet) brand. The company has identified the key areas that will support future growth – strong ties with the Cosmetics community, a comprehensive management information system, and a team of highly motivated and skilled employees.

The commissioning of KCCL’s Basic Chemicals Unit in 1956, established a very significant milestone in the history of the country’s chemical industry.

The Central Product Management prepares literature as promotional tools. It delivers the physicians, its target clients, the most recent scientific information regarding diseases and pharmaceutical products. Product itself is not enough to have much appeal to the physicians. Any product along with information is considered to be a package. Always innovativeness is practiced in communication.

Literature is an effective tool to enter into physicians’ awareness set. It also acts as reminder of the brand. it helps to build up a strong company image as well as strong brand image. As BPL has established its company image significantly, it is now emphasizing on branding of its products. Beside literature, the following are used to pursue the doctors:

•     Pad

•Gift

•     Product conference

•     Disease and Remedy conferences

•     Open letter about new or improve products to doctors from the top executives.

Recently most scientific electronic media CDs are used to communicate Customer with special messages.

The FMCG Market is dependent on personal communication of sales people with Businessman. Hence, extensive training of sales force is provided by this department in association with the Training Dept.

•  Special training is provided for new products.

•     Product knowledge meeting is held at times.

•     They are trained ‘Role playing’ — the tricks of handling adverse situations with doctors.

The sales force is evaluated upon feedback. The are assessed by-

•     Sales report

•     National! Regional conference

•     Field visit by Supervisors! Product Officers in presence or absence of MRs.

Monthly national conferences of Regional Sales Controllers and Field Supervisors are held in the marketing office which is conducted by Product Officers. Monthly regional conferences of Field Supervisors and Sales Representatives are conducted by Product Officers. These conferences are held­

•     To collect information about sales target achievement.

•     To find out reasons of sales growth and decline and to provide necessary remedy for problems risen.

•     To provide necessary information about products and technology.

•     For monthly evaluation of Sales Representatives.

•     For need assessment of Sales Representatives.

Mis & Planning Dept.

Kohinoor Chemical Division has been brought under exclusive computer network. The MIS and Planning Dept. have two operational units: (1) Management Information System and (2) planning.

The primary objective of MIS is to ensure availability of all types of data throughout the Chemical Division. It collects sales data from points of sales, renewed physicians’ in-and-out data and processes market research data and disperse to respective departments. It manages employee profile including personal details and presence.

The MIS & Planning Dept. also provides computer training to the new employees

Training Dept

This department is common of all the companies of Kohinoor Chemical Division. It arranges training for newly employed personnel of Kohinoor in collaboration with the respective departments.

The managers of BPL train the Product Officers and usually the Product Officers give training to the Sales Representatives.

It arranges training programs periodically so that the employees are always in pace with the changes of the company orientations and modern concepts of the FMCG Market

Human Resources Dept. (Hrd)

A company is only as good as its people. The day-to-day management of KCCL is in the hands of experienced professionals dedicated to achieve outstanding levels of performance which ensures better customer service.

The Human Resources Department of Kohinoor Chemical Division is one of the sophisticated one in Bangladesh. It is headed by Human Resources Manager.

This Dept. is responsible for all employee related activities. It defines employment need for the organization and defines job description and qualification of the employees needed. That is, it is to decide whom to recruit, why to recruit and how to recruit. It recruits personnel whenever any need arises. Usually if any incumbent fails to be selected in an interview, he! she loses the chance forever.

There are a number of steps involved in the recruitment procedure. A written test and a face-to-face interview are mandatory for any type of recruitment. Over 880 young, energetic and highly motivated employees from different cultures and diverse disciplines such as pharmacy, chemistry, biochemistry, microbiology, medicine, engineering, business, law etc are working with KCCL at home and abroad

Persons from Pharmacy and Medical are assumed to deserve in the Chemical filed. With as sales force of over 250 highly professionals, KCCL are represented in every part of Bangladesh to ensure the promotion and delivery of its products at every level of customer. HRD arranges orientation for the new employees to the origination. In-house recruitment is encouraged than head-hunting. Head-hunting is practiced in special cases. Performance appraisal is an important task of Human Resources Dept. It decides incentive scheme for the employees. It arranges training courses, family tour and telephone facilities for the employees.

KCCL believes in professionalism and emphasizes job rotation or cross-functional activities. If one employee is found dissatisfied or deprived with his! her parent dept., she! he is transferred to another dept. depending on performance and qualification. Termination is a rare case which is done only against major offers. Human Resources Dept. looks after two rest houses, canteen, security and transport facilities of employees. According to records, most of the employees are aged below 45 years. Highest survival rate is 5 — 9 years. BPL does not practice any sex discrimination. It has 09% female employees.

Caring Concern of KCCL

KCCL is highly concerned about environmental safety. They are continuously striving to minimize the environmental impact through their operational excellence.

KCCL is committed to an ceo-friendly environment and its facilities are carefully designed and operated to prevent all forms of pollution. One of the primary concerns of the company is to contribute in keeping the earth clean. BPL is aware of its responsibility of caring for the environment and the importance of reducing the environmental effects of manufacturing activities to a practical minimum.

Facing challenges of globalization

At Kohinoor Chemical, they do not wait to react to changes, they create a “virtual future” so that when the future arrives, they will be ready to face it. Kohinoor Chemical is one of the first companies to have an extensively computerized and automated work environment. The state-of-the-art Management Information System (MIS) forms a common information platform for the organization so that everything-from the production floor to the sales people working in a rural area, from the quality assurance department to the distribution operation of thirteen depots located throughout the country-is interconnected. In KCCL, information technology is used as a decision support system and coordination tool to facilitate human and machine performance and fast communication.

Their commitment to create a virtual future is reflected in their activities. We are the leading pharmaceutical company in promoting products and providing medical information on CD­ROM, and through Kiosk and Internet Websites. With a vision into the new millennium, BPL has taken proactive actions to face the challenges posed by a fast changing world economy and the advent of the information age by assimilating it into the work culture.

Background of the problem:

            KCCL is planning to increase the market share of Tibet Detergent Powder (Detergent Washing Powder) as a washing product for the different types of people. It already exists in the market.

In this context, my organizational supervisor Mr Jahiruddin asked me design a study plan to increase its market share. Mr Jahiruddin informed me that Detergent Powder is a highly expensive Washing Group among its competitors. Mainly we are trying to get the market leadership by improving our marketing mix from the competitors mainly from Uniliver Bangladesh  which is a leading FMCG company in the country.

Statement of the problem:

The appropriate properties for the proposed recommendations are to be determined.

Broad Objective

    To analyze the current level of competition of detergent Powder (Tibet Detergent Powder) for establishing strategies in order to increase the market share

Specific Objectives

•     To analyze the different aspects (product features, pricing factors, distribution system) of the detergent Powder  as an Washing powder for identifying the competitive position in the market

•     To identify the factors regarding the marketing mix of detergent Powder   with a view to enhancing the attraction of the potential doctors toward this product

•     To analyze the prescription sharing about the detergent Powder (Tibet Detergent Powder) among competitors in the different hospitals.

•     To make strategies on the basis of analysis and to give some recommendations for increasing the market share and for designing an appropriate marketing mix of detergent Powder.

•     To know the substitute products of the detergent Powder (Tibet Detergent Powder)

Nature of the study:

      This study is exploratory in nature. All issues intended from this study are to be explored through assessing and analyzing information gathering from different sources.

Date source:

Primary date: Primary data were collected through primary survey.

Secondary data: Secondary data were collected mainly from websites. The other sources were FMCG Guide and Kohinoor Chemical Co. (BD) Ltd.

Sampling plan:

Study area: Dhaka city.

Sampling element: Consumer

Extent: Ten Market located in Dhaka city.

Time: During the period of 10 April 2006-10 June 2006

Sampling method: Convenient sampling was used for drawing sample from the population.

Sampling frame: The Consumers  list provided by Kohinoor Chemical Co. (BD) Ltd.

Sample size: Top ten Market  in DhakaCity.

Study instruments:

The broad category of sample unit was interviewed through a set of structured questionnaire. The questionnaire is presented in Appendix.

Study Approach: Personal interviews.

Study limitations:

There are some controversies on the last conducted census in 2003. The study was conducted only in ten hospitals. Due to this, it is difficult to make the study findings to represent the entire Dhaka. On the part of the limitation, most of the times the doctors played very conservative role in sharing the information required to conduct this research.

Market scenario

Total washing Market Size                 : 880.118 Million

Growth                                                : 27.66%

Total Detergent Market                      : 456.216 Million

Growth                                                :51.33%

% of total washing Market                 : 54.63%

Table: Price Information

Table: Competitive Price Analysis

Market scenario

Total washing Market Size                 : 880.118 Million

Growth                                                : 27.66%

Total Detergent Market                      : 456.216 Million

Growth                                                :51.33%

% of total washing Market                 : 54.63%

Value-wise Analysis of Top 4 Brands

* Brand leader unit-wise

4Ps Analysis (Between KCCL Product & Major Cornpetitorf Brand Leader)

Product

Presence of Wheel is for a long time. Tibet is a comparatively new product.

Micro-credit policy of Square help in market penetration to certain area where Tibet is not available

            Promotion

•           Wheel: Promotion of Wheel is not focused. But their range of Washing products makes them more aggressive with promotional efforts.

•           Tibet: Innovative promotion (Pre-launching questionnaire & gift, Clinical Experience Survey, promotion aiming at packaging features). KCCL may consider introducing the whole range of Washing products.

In this Industry Uniliver Ltd, is the market leader followed by Kohinoor Chemical and Square Tiletics . Among the transnational companies, Keya is the major market player.

Tables & Explanation

Table: Dhaka New Market

Table: Uttara Market

Explanation:

According to the above graph, KCCL is the brand leader in Uttara Market, Dhaka which is containing 40% share among the competitors. Uniliver and Keya are the market followers and others are in the average. 

Table: Moulvi Bazar

Explanation:

According to the above graph, Uniliver is the brand leader in Moulvi Bazar which is containing 40% share among the competitors. Square is the market follower and others are in the average.

Table: Mirpur-10 No. Bazar

According to the above graph, Uniliver is the brand leader in Mirpur 10 No. Bazar which is containing 40% share among the competitors. Kohinoor the market followers and both are containing 25% and others are in the average.

Table Quality of Detergent (Tibet Detergent Powder)

Explanation:

The research result shows that most of the Customers said about the quality of Detergent (Tibet Detergent Powder) is good i.e. 40%, fair 10% and only 2% of them said not good at all, as detergent.

Table Feel of the necessity of a good Detergent (Tibet Detergent Powder)

Explanation:

The research result shows that most of the Customers feel the generally necessary of a good detergent powder like Detergent (Tibet Detergent Powder) is good i.e. 36%, very necessary 24% and only 5% of them said not all necessary.

Table

Brand preference while take Detergent (Tibet Detergent Powder)

Explanation:

The research result shows that most of the Customers take Wheel (Uniliver) i.e. 32% and the Tibet (Kohinoor) i.e. 27% Chaka (Square) 21% Keya 14% other company’s 5% product.

Table
The reason for brand preference

Explanation:

The research result shows that most of the Customers take their preferable brand in terms of quality i.e. 47%, and then in terms of promotion i.e. 36% and in terms of price 9% and 8% for other reason. 

Table
Price of Detergent (Tibet Detergent Powder)

Explanation:

The research result shows that most of the Customers think that price of Tibet Detergent powder justified i.e. 53% and only 47% think that price is not justified. 

Table
Promotional activities Detergent (Tibet Detergent Powder)

 Explanation:

The research result shows that most of the Customers said about the promotional activity of Detergent (Tibet Detergent Powder) is average i.e. 46%, very good 35%, good 19% and none of them said bad.

Table: Modification needs for promotion or not

Explanation:

The research result shows that most of the Customers said in the promotional activity of Detergent (Tibet Detergent Powder)) moderately change needed i.e. 57%, not change needed 30%, highly change needed 13%

Recommendations:

•     KCCL should ensure all types of product available and prompt communication with the doctors who are usually in the Market so that Consumer can use Kohinoor’s product frequently.

•     KCCL should more concentrate on free sampling to the Market so that product efficacy will be known by the Consumer easily.

•     Sales Representatives (SRs) should be trained by properly so that they can care to the Customer or Consumer’ speeches and opinions and can report to the concerned department.

•     KCCL should establish sound and effective communication channels with Customer by offering sufficient product sampling and attractive gifts.

•     Product feature have to be distributed widely and repeatedly among the internee Consumer so that they can recall the product name whenever required.

•     Factory visit should be arranged regularly that would help to build confidence of Customers on KCCL products. Even the normal manufacturing and production facilities are likely to create good impact on the uses habit to the consumer.

•     A pre-visit question-answer session should be arranged to prepare answers to delicate queries of the Customer (price objection, KCCL’s sole concentration on export rather that local market, significance of Tibet Detergent Powder day etc.).

•     The price of the Tibet Detergent Powder should be reduced by controlling the overall cost of the company.

•     KCCL should invest more money to the R&D so that they can make the unique feature product and can gat the advantage by product differentiation.

•     As Uniliver Bangladesh Ltd. is the brand leader so KCCL should do the Guerrilla attack to get the leadership in the Detergent market.