Danish Condensed Milk BD Ltd. Is the most rewarding unit of partex group. It was tarred its journey in 1991 and processing the leading position in the local market. As a marketing aim of Danish Condensed Milk BD Ltd. With the aim of making co-attribution in social and economic development, creating employment opportunities, and above all perform a successful business in Bangladesh.
It is not to say that to so a successful business various various marketing mix tools plays an important role. Therefore, this report has depicted marketing mix related various Decisions of Danish Condensed Milk BD Ltd. The study is based on both primary and secondary data. The methods that were used to collect the primary data are discussion itch officials of Danish Condensed Milk BD Ltd., face to face with the clients. Secondary data are collected from various publications of Danish Condensed Milk BD Ltd. Product manuals of Danish Condensed Milk BD Ltd., Danish Condensed Milk BD Ltd’s website etc. Danish Condensed Milk BD Ltd. Has chosen publicity, advertising, And sales promotion tools the promotional mix to make a strong position in the highly competitive condensed market of Bangladesh.
In condensed milk market of Bangladesh, some fast changing phenomena are taking place. Among the changes, introduction of highly technical products of international standard, qualitative difference, packaging and fashioning are prominent. In recent years, the change in the quality of products is more intense. Competition among the condensed milk companies has also been increasing at a faster rate. All these change imply that market for condensed milk products in Bangladesh has increasingly been gaining momentum. Condensed milk markets is one of the least research areas of Bangladesh. Systematic studies are also lacking. The present paper on Danish Condensed Milk BD Ltd. As a case is a modest attempt to fill this gap.
In the fast changing market Danish Condensed Milk BD Ltd., is a member organization of Partex Group of companies Ltd, has occupied a significant position among the competitors, particularly with respect to its condensed products. According to an unreliable estimate, the market share of Danish Condensed Milk BD Ltd for its condensed products have been improving significantly, which according to the marketing literature can be termed as “Market challenger”.
Statement of the problem
Nowadays condensed market of Bangladesh has become vast and hard competition has emerged in this market. Customers now have various alternatives to choose according to their convenience and which directly affects their buying decisions. Therefore, to maintain the leading position in this highly competitive market Danish Condensed Milk BD Ltd. need to take appropriate marketing strategies.
Objectives of the study
The condensed milk industry has grown steadily since its beginnings, and has weathered economic downturns, was, and the health movement; through constant adaptation and market research, they anticipate and meet the public’s ever-changing taste.
At present, there are more then ten condensed milk companies are marketing their products in the market. So, it is need not to say that condensed milk market of Bangladesh is going through the hard competition. For the survival and growth of business in this very competitive market of condensed milk, one should practice and implement the marketing mix tools properly.
However, the purpose of this study was to know how a marketer formulates marketing mix, which forms the basis of his marketing strategies and policies. Specially, the objective of the study was to know the way marketers take decisions regarding his various products, its pricing method, its distributing system, and its promotion for ensuring the optimal adaptation with the marketing environment. Danish Condensed Milk BD Ltd. Is on of the leading condensed milk company was selected for the purpose of the study.
Methodology of the study
The report of the study will be informative based on those information found while investigation the marketing activities in the field of condensed milk market of Dhaka metropolitan area as well as Bangladesh. Data is collected from both primary sources and secondary sources. The method that were used to collect the primary date are discussion with officials of Danish Condensed BD Ltd, Face to face conversation with the clients. Secondary dada is collected from publications of Danish Condensed Ltd. Annual reports of Danish Condensed Milk BD Ltd., products manual, Danish Condensed Milk BD Ltd’sGlobe website etc.
Limitations of the study
Marketing is, in face, a huge operation and it is quite impossible to cope up all the activities during the short period of Thesis, and for that reason limitation prevail while conducting the study. The Thesis report preparing has also been faced some problems. The main restrictions of the study are as follows:
Lack of sophisticated knowledge:
As a new practitioner in research and marketing field, I have no practical experience in data collection, processing, analyzing, interpreting and presenting.
There was very short time to complete this study program properly. Therefore, I had to conduct with all functions with in short time.
To Operate thus study program, there was no availability to fund. That is, there was no source for financial support. Therefore, I could not able to interview with more respondent and covering survey area.
Unavailability and inefficiency to input secondary data:
From the secondary sources, I do not get available relevant data. Moreover, I have not proper knowledge in this regard.
Conservatism: Some respondents were conservative and they did not express their opinion freely.
A market is a mechanism, which allows people to trade, normally governed by the theory of supply and demand, so allocating resources through a price mechanism and bid and asks matching so that those willing to pay a price for something meet those willing to sell for it.
• Market is the aggregate of forces or conditions within which buyers and sellers make decisions that result in the transfer of goods and services.
• Market is the aggregate demand of the potential buyers of a commodity or service.
• A market is a group of buyers and sellers within a geographical area; (a) for a product or a reasonable substitute; (b) at a particular stage in the trade channel, such as manufactures selling to retailers, or consumers buying from retailers; (c) at s particular time.
Marketing more then any other business function, deals with customers, Building customer relationship based on customer value and satisfaction is at the heart of modern marketing. Marketing is managing profitable customer relationship. It means to make a communication about a product or service a purpose of which is to encourage recipients of the communication to purchase or use the product or service.
Marketing is a social managerial process whereby individuals and groups obtain what they need and want through creating and exchanging product and values with others.
Some of the other definitions illustrative of various viewpoints are:
• Marketing is the creation of time, place and possession utilities.
• Marketing moves goods from place to place, stores and effects changes in ownership by buying and selling them.
• Marketing consists of activities of buying, selling, transporting and storing goods.
• Marketing includes those business activities involved in flow of goods and services between producers and consumers.
Marketing management is the practical application of marketing techniques. It is the analysis, planning, implementation and control of programs designed to create, build, and maintain mutually beneficing exchanges with target markets. The marketing manager has the task of influencing the level, timing and composition of demand in way that will achieve organizational objectives.
Customer Relationship Management
Customer Relationship Management (CRM) entails all aspects of interaction a company has with its customer. It includes methodologies, software and usually Internet capabilities that help an organization manage customer relationship in an organized way. The Customer Perspective of the Balanced Scorecard may contain references to a CRM program.
A Marketing Mix is the combination of product offering used to reach market for the organization. The marketing mix comprises the product (what the actual offering comprises), Price (the value exchanged for the offering), promotion (the means of communicating that offering to the target audience, promotional mix) and distribution (also known as place, the means of having the offering available to the target audience). The Marketing mix is also known as the four Ps and which are as follows:
Product: Product means goods- and –services combination the company offers to the target market.
Price: Price is only one of the marketing mix tools a company uses to achieve its marketing objectives. Price is the amount of money changed for a product or services, so the sum of the values that customers exchange for the benefit having or using the product or service.
Place: It includes company activities that make the product available to target consumers.
Promotion: Promotion means activities that communicate the merits of the product and persuade target customers to buy it.
A company’s total marketing communication mix also called is promotional mix, which consists of the specific blend of adverting, public relations and direct marketing tools that the company uses to pursue its adverting and marketing objectives.
Advertising: Making known; calling public attention to a product, service, or company by means of paid announcements so as to affect perception or arouse consumer desire to make a purchase or take a particular action.
Or, we can say that advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Advertising objectives can be Informative, Persuasive or Reminder.
Marketing management must make four important decisions when developing an advertising programs; setting adverting objectives, setting the adverting budget, developing adverting strategy(message decision and media decision), and evaluating advertising campaigns.
Sales Promotion: Sales promotion consists of short-term incentives to encourage purchase or sales of product or service. Whereas advertising and personal selling offer reasons to buy a product or service, sales promotion offers to buy now.
Personal Selling: Personal selling is the personal presentation by the firm’s sales force for the purpose of making sales and building customer relationship.
Public relation: public relation is building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavorable rumors, stories and events.
Direct marketing: Direct marketing is the direct connecting with carefully targeted individual consumer to both obtain an immediate response and cultivate lasting customer relationship.
Sales promotion as know is a very important component of marketing promotion. Consumer promotion (e.g. coupons, samples, contests, sweepstakes and price packs) is a part of sales promotion that is targeted towards the final buyers of consumer products (kotler and Armstrong, 2002). There can be various types of consumer sales promotion; some are incentive based while others are communicative in nature (Kotler et al., 1999; Tellis, 1998). The incentive-based promotions can be price – oriented promotion or non price-oriented promotion. According to Britannica (article 21279) advertising presents a reason to buy a product but consumer promotion offers a short-term incentive to purchase. Consumer promotions often attract brand switchers (those who are not loyal to a specific brand) who are looking primarily for low price and good value. Thus, especially in markets where products are highly similar, consumer promotions can cause a short-term increase in sales. Abraham and Lodish (1987) stated that many consumer goods categories sold 90% of their volume on special deals, which is a result of consumer promotion. Consumer promotion is thought to be a tool that helps manufacturers and retailers to achieve their objectives of generating sales (Alvarez and Casielles, 2004). They also stated that the influence of sales promotions on the consumer would also depend on the consumer’s characteristics.
In marketing, a brand is the symbolic embodiment of all the information connected with a product or service. A brand typically includes a name, logo, and other visual elements such as images or symbols. It also encompasses that set of expectations associated with a product or service, which typically arise in the minds of people. Such people include employees of the brand owner, people involved with distribution, sale or supply of the product or service, and ultimate consumers.
Brand equity is the positive differential effect that knowing the brand name has on customer response to the product or services. Brand equity measures the total value of the brand to the brand owner and reflects the extent of brand franchise.
Brand positioning is the distinctive position that a brand adopts in its competitive environment to ensure that individuals in its target market can tell the brand apart from others. Positioning involves the careful manipulation of every element of the communication mix. Or, the specific niche in which the brand defines itself as occupying in the competitive environment. Positioning addresses differentiating brand attributes, user benefits and target segments, singly or in combination.
New product development
New-Product development is the development of original products, product improvements, product modifications and new brands through firm’s own R&D efforts.
Customer service is the provision of service to customers before, during and after a purchase. Its importance varies by product, industry and customer. As an example, an expert customer might require less pre-purchase service (i.e., advice) then a novice. In many cases, customer service is more important if the purchase relates to a “service” as opposed to a “product”. Customer service may be provided by a person (e.g., sales and service representative), or by automated means called self-service. Examples of self-service are Internet sites. Customer service is normally an integral part of company’s customer value proposition.
Product may mean anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need. Product may mean item that ideally satisfies a market’s want or need.
In economics and marketing, a service is the non-material equivalent of a good. Service provision has been defined as an economic activity that does not result in ownership, and this is what differentiates it from providing physical goods. Providers of services make up the tertiary sector of industry. Key attributes of service are:
• Perish ability.
• Lack of transportability.
• Labor intensity.
• Lack of homogeneity.
• Demand fluctuations.
• Buyer involvement.
• Client-Based Relationship.
Product life cycle
Product life cycle is the course of a product’s sales and profit over its life time. It involves five distinct stages: product development, introduction, growth, maturity, and decline.
Product Development: It begins when the company finds and develops a new product-idea. During product development, sales are zero and the company’s investment costs mount.
Introduction: Introduction is a period of slow sales growth as the product is introduced in the market. Profits are non-existent in this stage because of heavy expenses of product introduction.
Growth: Growth stage is the product life-cycle stage in which a product’s sales start climbing quickly. It is a period of rapid market acceptance and increasing profit.
Maturity: Maturity is the stage in the product life cycle in which sales growth slows or levels off. This maturity stage normally lasts longer then the previous stages and it poses strong challenges to marketing management. Most products are in the maturity stage of the life cycle and therefore most of marketing management deals with a mature product.
Decline Stage: It is a product life-cycle stage in which a product’s sales decline. Sales decline for many reasons, including technological advances, shifts in consumer tastes and increased competition.
A Product mix (or product assortment) consists of all the product lines and items that a particulars offers for sale. Each product line consists of several sub-lines. Each line and sub-line has many individual items. A company’s product mix has four important dimensions: width, length, depth, and consistency.
Product mix width: It refers to the number of different product lines the company carries.
Product mix length: It refers to the total numbers of items the company carries within its product lines.
Product line depth: It refers to the numbers of versions offered of each product in the line.
Consistency: The consistency of product mix refers to how closely related the various product Lines are in end use, production requirements, distribution channels, or some other way.
The Company Profile
Corporate Headquarters: – 195 Motijheel C/A,
Sena Kalyan Bhaban (16th floor)
Dhaka- 1000, Bangladesh.
Web:WWW. Partex group.Com
Sales Headquarters: – 14 – 15, Motijheel C/A .
Ispahani Building (4th Floor)
Factory:- Shimrail, Kanchpur,Narayanganj.
Year of establishment: – 1992
Status: – Private limited company.
Authorized Capital in US$:- US$ 150 million.
Turnover in US$ of 2000-2001:- US$ 160 million.
Number of shareholders: – No shareholders. (Private Ltd. Company)
Number of Employees: – 7,000
Export Activities: – South East, Middle East Countries.
Number of Distributors: – 350 distributors around the nation.
Estimating growth rate: – Around 15% annum.
Industries under Partex Group:
The Partex Group currently consists of 11 companies
Star Particle Board Mills
Danish Condensed milk Bangladesh
Danish Milk Bangladesh Ltd.
Amber Cotton mills Ltd.
Partex Real Estate Ltd.
Amber Pulp And Paper Mills Ltd.
Partex Beverage Ltd.
Rubel Steel Mills Ltd.
Danish Fruit Juice.
Back ground of the Company :
The market place is unpredictable a virtual battle with cutthroat competition, acquisition. Attaining total success is an arduous task as one needs to win the hearts and souls of the people by adopting proper marketing strategy with a competitive quality to price ratio. Quality and service are the major tools for us in this dual.
The history of Partex group is no different. It had its modest beginnings in tobacco trade in 1959. And day by day its founder chairman Mr. M .A Hashem it has grown steadily over the gears to become one of the leading industrial conglomerate in the country .
In the early seventies, M/S Hashem Corporation Ltd was established with headquarters in the part-city of Chittagong the missionary zeal and unflinching commitment to quality and services took the group to higher elevations. At a time when the newly independent country needed almost everything, the company involved itself in the import of essential items like iron, steel, cement, sugar, rice, spices, wheat, salt, milk, and other commodities. It did not stop there but to make the country self- reliant went on to substitute imported products by manufacturing them locally. Guided by this visionary dream and backed by an inexhaustible repository of effort, the group emerged as one of the largest corporate body of the country.
The towering heights reached by the group were possible due to a market friendly strategy, evolved by its pioneers. Modern management optimized on the initiative and imagination of the personnel was the watch word .No work is too little for us, no service insignificant. The pace of growth was further strengthened with our dedicated and capable board members. Mrs. Sultan Hashem, Mr. Aziz Al kaiser, Mr. Aziz Al Mahmood, Mr. Aziz Al Masud , Mr ShowKat Aziz Russell and Mr Ashfak Aziz rubel , under the leadership of our founder chairman Mr . M.A Hashem. We are not merely prifit seeking business men, but believe in social responsibility to the community .We live in and with. We have initiated high level of safety and environmental awareness in our workplace as a first step. Outside the work place we support worthwhile philanthropic efforts in education and health care sector among others.
Our mission is to provide satisfaction at a competitive cost, growth in diversity and continue to contribute cost, growth in diversity and continue to contribute to the growth of industrialization in Bangladesh by being the market leader.
Customer Focused and innovation:
They believe their success depends on their customers. They believe their success depends on their customers. Thus their primary value is fulfillment of their customer’s needs. Their manner of achieving this success is to include value for money.
Integrity: They are committed to conduct their business in such a way that demonstrates highest ethical standards .They believes integrity is our imperative utility to succeed in what they do. To uphold the superiority in the Danish maintains the following policies.
Quality Policy: To produce goods as per customer’s satisfaction. To select employees on the basis of qualification. To keep hygienic conditions in the factory. To ensure the health of the workers. Continuous improvement in the quality management system.
Danish Condensed milk Bangladesh Ltd.
Danish Condensed Milk Bangladesh Ltd. is the most rewarding Unit of Partex Group; the Unit produces Danish Condensed Milk in 397 Gm Cans. Danish Condensed Milk is the first in the condensed milk industry started operation during the year 1991 in the Country and processing the leading position in the local market. Presently Danish Condensed Milk is being exported in Nepal, Bhutan and some parts of in India in bulk quantity. It has been well appreciated in those markets as a result it is expanding day by day in foreign markets.
At present, Danish condensed milk is on the maturity period on which there is a slow down in sales growth, because the product has achieved acceptance by most potential buyers.
Condensed milk Companies of Bangladesh living in an oligopolistic Competition, because the market consists a few sellers. There are only three Condensed milk producing companies in Bangladesh. There was another company named Goalini Condensed Milk but it could not survive or compete with other competitors for which they were compelled to shut down their business. Danish is the first Condensed milk manufacturing company which started operation during the year 1991 and possessing the leading position in the local market. At present it holds 65% of its total market share competing with others. So, Danish is the market leader, starship is challenger and newly entered Fresh Milk is the follower in Condensed Milk industry of Bangladesh. From survey, researchers see that condensed milk is basically used for making tea, sweet and sweet dishes. Even though it is used both at home and small stall or shops, it has greater demand in business market than consumer market.
Since there are very few competitors exist in market currently, new condensed milk producing company can easily enter into the market. But they have to compete strongly with the market leader Danish.
A product is anything that maximizes utility of consumers. With respect to product, strategy consists of some vital features of a product such as- product variety, quality, design, brand name, packaging, sizes, warranties, return etc. Danish Condensed Milk BD Ltd. Also has the specific product strategy for the Dhaka metropolitan area. Danish Condensed Milk BD Ltd. has designed its product policy in such a way, which ensures the availability of its products to fulfill the demand of the customers at a competitive price an to achieves the organization goals.
Profit level off or decline because of increased marketing outlays to defend the product against competition.
The factory of Danish condensed milk Bangladesh Ltd is located at Shim rail, Kanchpur, Narayangonj. It covers two major Production ranges, Danish Sweetened condensed Milk” and” Silver Cross Full Cream Sweetened condensed Milk, both in tin containers of 397 grams.
Being the market leader, latest developed recombination, pasteurization and flash cooling DTD (Danish Turnkey Dao roes) Technology are used to make both these products which are fit for international Standard.
Brand – Danish Condensed Milk
Pack/ Quality – Net 397 Gums
Quantity / Carton – 48 Pcs
Can – Metal Can
MARKET – PRODUCT FOCUS
Target Market and Consumer:
The market consists of many types of customers, products and needs. Every marketer has to differentiate the market using some such as:
• Demographic characteristics
• Psychographic characteristics
• Behavioral characteristics
• Geographic characteristics
The process of dividing a market into distinct groups of buyers is called market segmentation. And every segment has not equal usefulness. So, a company always chooses the group of buyers who are lightly to buy their products and/or services. These groups are known as the target market.
According to the survey it can be said that, the target market for Condensed milk is mainly tea stalls. Since by using a little amount of Condensed milk it gives a rich color and taste to the tea, it proves economical. And for this reason, tea seller prefers to use this. The survey also conveys that, it is also widely used in domestic purposes. It can be used in making various kinds of sweets. So, the target market is firstly the tea seller and secondly the middle and higher class people for their domestic use.
Customers are very sensitive bout there buying. There is no right or wrong idea that a company can implement over the customers. The choices of customers switch very quickly. There is hardly any customer who has high brand loyalty. Usually customers buy the product by using their intention and perception. Customers seek variety and they test various products to satisfy a specific demand. Every customer chooses such kind of product, which is better from another one. Customers are influenced by some one who used the product or commercials or his or her own perception. Some customers are habituated.
Product is a solution to a problem. A product satisfies a certain need. The product Danish also satisfies the needs of consumers. Different products have different levels since we, think about one of our products Danish condensed milk so its levels develop like this:-
Levels of product
In Bangladesh, Danish condensed milk is the market leader in condensed milk and has pioneered its export. Danish condensed milk assure export quality product to all customers.
Partex group evaluates their strategic business Unit in forms of their market growth rate and relative market share. Subs are classified as Stars, Cash cow, Question Marks or Dogs. Partex Group has 11 types one of them. It is an established SBU of Partex Group. It needs less investment to hold their market share. Thus they produce a lot of Cash that uses to support other Sub’s that need investments.
Packaging is the activities of designing and predicting the container or wrapper for a product. The package includes a product’s primary container. Nothing but a product’s looked and feels to its buyer. And for good products packaging is the important styling weapon a marketer can use. That is because the first encounter a layer with the product is though its packaging is the initial factor that can turn the layer on or off.
Danish condensed milk is one of the proud conglomerates of Partex Group. It products “Danish” Sweetened condensed milk in tin cans of 397 grams. The packaging system is very important part for milk. This product uses hygienic cane for packaging condensed milk. For packaging this product the company uses metal tin. But because of tin, there may create some problem. Like, it is risky to open the tin because it may cause some accidents. To avoid this sort of accident, company is planning of use the flip cap Jar.
Danish condensed milk takes special care to take packaging decision. They leave a professional team for packaging.
The following matter they consider which taking packaging decision:-
• Product protection and safety.
• Careful about bacteria and hygienic.
• Ensure product quality as when it was produced.
• Brand name in clear and big font.
• Attractive color.
• Environment friendly material.
• Ingredients friendly material.
• Ingredients in appropriate proportion are written.
• The company name is clearly stated in the product.
• The weight of individual product is clearly mentioned.
Pricing is very important and sophisticated decision for any commercial organization. The present and future position, decision, policy, target market, objective, goal, market share and many other things depend on pricing policy.
The product pricing depends not only on the internal and external factors but also on how they want to see them in future. It they have a goal to achieve current profit maximization, the price will be little but high. It if they have the goal to be the market share leadership; they will sell the product with a very small market up. The prices will logically higher if the organization offer high quality product.
Bangladesh is basically a tea-drinking nation. So for making tea condensed milk play an important and basic role. And Danish condensed milk is the market leader is the market. We assure export quality product to all our customers. Danish condensed milk is use every where in Bangladesh.
It consumed in every section of the society but mainly this condensed milk use more in tea-stall. We can use if for decorating food, making cake, and for test. Danish condensed milk is not much expensive.
Danish condensed milk comes in one size and name. It mainly target the tea-stalls.
|Name of Brand||Weight||Price|
|Danish condensed milk||397 grams||48.|
Place company activities that make the product available its target consumers. Bangladesh is the place where Partex Group is doing their business. They have developed a network for their success. Danish condensed milk Bd. Ltd is the one of the largest distribution network in Bangladesh. Hundreds of eager energetic and effective sales representatives are working supported by their dedicated sales and marketing supported by their dedicated sales and marketing division. They have developed the network through sales people, agents, distributions retailers, government and private organization.
They have their own distribution channels in every district. Condensed milk exported in Nepal, Bhutan and some parts of India in bulk quantity. It has been well appreciated in those markets as a result is expanding day by day in foreign markets. They sell Danish condensed milk to its distributor directly.
The distributors distribute the products to whole sellers. After that they sell the products the retailer. And finally the consumers buy the products from shop for consumption.
Usually we can buy Danish condensed milk can from every confectionery shop. General shop and stationary shop Agora, Mina Bazaar, of stop & shop etc and all most all over in Bangladesh. The factory of Danish condensed milk Bangladesh Ltd. is located at shim rail, kanchpur, Narayanganj.
Promotion means activities that communicate merits of the product and persuade, target consumer to buy it. Partex spends a large amount each year on advertising to tell consumers about the company and its potential buyers & persuade them that Danish milk is the best condensed milk for them.
The main feature of Danish condensed milk’s promotional activities is advertising. Basically it is done through the broad casting media, mainly the television. The main target market is the Tea Sellers and Household users. So the advertisements are designed by confederating all those things.
The dialogues of the advertisements are attractive and non-conventional like, “Danish, The test of life”.
For advertisement Partex group of industry spend a large amount because they use international stars in their advertisement.
Partex group has discount Policy:
1. 4% discount for wholesalers.
2. 3% discount for wholesalers.
And if any consumers buy 48 cans then he/she may get a discount.
A product’s position is the way the product is defined by consumers on important attributes – the place the product occupies in consumers’ mind relative to competing products. A company always tries to position his product brightly in consumers mind. The product’s position is the complex set perceptions, impressions, and feelings that consumers have for the product compared with competing products. Marketers make plans that will give their products greater advantage in selected target markets. Positioning begins with actually differentiating the company’s marketing offer so that it will give consumers more value than competitor’s offers do. Danish is positioned as tasty, hygienic liquid healthy sweet milk.
Positioning involves implanting the brand’s unique benefits or competitive advantages and differentiation in consumer mind. Danish uses competitive advantage positioning strategy to capture their target market. Because they know, the key to winning and keeping target consumers is to understand their needs better than competitor do and to deliver more value. For this, they always try to increase their market. By providing the best quality and service, it now becomes the market leader in Condensed milk industry of Bangladesh. Moreover they use “The Same for Less” Strategy which is another powerful value proposition. Danish Condensed milk offers equivalent quality milk at a lower price at Mina Bazaar Super Store. (Currently Offered). From the survey it is proved that, Danish always consider their customer’s needs and required quality. And it is their main tool for market positioning.
Market Expansion Grid:
The product to adapt or enter in a new market Danish is always investing a huge amount of many for R & D. They are always trying to find the way in which they can develop the existing product in the market. They scrutinize the market from every possible point of view to the gainer. They follow this strategy to get the cream (maximum benefit) of the business being a pioneer by launching a new product.
The following is the product market expansion grid to find new market or develop the existing product or launch a new product.
1) Danish Fruit Drinks is under market penetration because, company neither changes the product nor the market, they only decrease the price (From Tk. 12 to Tk. 10) to increase their sales.
2) Danish Condensed milk is under market development because, at present Danish Condensed Milk is exporting their existing to Nepal and Bhutan.
3) Mum drinking water is under Product development because it is completely a new product for this company, which operates in the existing market.
4) Dhaka.com is totally a diversified business because it has no link with the existing business of Partex Group. And the market of this business is also totally different.
R & D ream of Partex Group of Industry is constantly striving towards.
• Developing new formulations.
• Simplifying manufacturing processes.
• Minimizing product costs.
• Solving & trouble shooting problems during manufacturing operations.
The market leader in condensed milk industry is Danish condensed milk. It produces “Danish” sweetened condensed milk in tin cans of 397 grams. The brand a market leaders is produced under the latest development recombination, pasteurization and flash cooling DIP (Danish Turkey Dairies) technology of internal standard. The quality of the product is maintained stringently at all levels established under the technical assistance of A Australian Dairy Corporation.
Danish condensed milk is food item. So, the product is to be package under good protection. The packages are also air tight to keep it free from air so that any virus can do no harm. For packaging this product we use metal tin which must he hygienic and bacteria free. Danish condensed milk takes special care to take packaging decision. They leave a professional team for packaging.
Danish Distribution Network Ltd.
Danish Condensed Milk Ltd is the one of the largest distribution network in Bangladesh. Hundreds of eager energetic and effective sales representatives are working supported by our dedicated sales and marketing division.
They are marketing many products namely or RC Cola, Mum- natural Drinking water in PET bottles, Danish condensed milk, Danish Milk Powder and Danish fruit Juice.
In addition to their vast sales and distribution network of dealers, they have 6 sales depends located at strategic points. They have mobilized adequate distributors to serve all parts of the regions; they are one of the largest distribution organizations in Bangladesh. This network makes possible the fellow of goods from the producer through intermediaries to the buyer.
Highlights of Danish Distribution Network Ltd.
No, of towns under regular coverage- 177
No of distributors 194
No of Sales Area 14
No, of Sales Territory 80
Danish Condensed milk is a market centered company because it pays balanced attention to both customers and competitors in designing its marketing strategies. So it never ignores competitors whether the company is small or big.
At present Condensed Milk Industry of Bangladesh is intensely competitive with 3(three) brands in the market. (They are – Danish Condensed Milk ltd., Starship Condensed Milk and Fresh Condensed Milk Ltd.). Danish Condensed Milk Bangladesh Ltd. stands at this competition with its strong brand positioning and innovative marketing approaches. As we know, Condensed milk is mainly used for making tea, sweets and other sweet dishes, so we should also consider milk powders as their competitors. Because they are also used for making such items.
Since, Partex Group has an individual milk powder producing company (named Danish Milk Powder Ltd.). Danish Condensed milk does not have to directly compete with other milk powders but they are not ignoring them.
Abul Khaer Industries Ltd.
Meghna Group of Industry
Other Foreign Companies
So, we can see here the main competitors are Starship and Fresh Condensed milk.
Danish Condensed Milk Bangladesh Ltd. is the most rewarding Unit of Partex Group; the Unit produces Danish Condensed Milk in 397 Gm Cans. Danish Condensed Milk is the first in the condensed milk industry started operation during the year 1991 in the Country and processing the leading position in the local market. Presently Danish Condensed Milk is being exported in Nepal, Bhutan and some parts of in India in bulk quantity. The factory of Danish condensed milk Bangladesh Ltd is located at Shim rail, Kanchpur, Narayangonj. It covers two major Production ranges, Danish Sweetened condensed Milk” and” Silver Cross Full Cream Sweetened condensed Milk, both in tin containers of 397 grams. Being the market leader, latest developed recombination, pasteurization and flash cooling DTD (Danish Turnkey Dao roes) Technology are used to make both these products which are fit for international Standard.
Brand – Danish Condensed Milk
Pack/ Quality – Net 397 gms Quantity / Carton – 48 Pcs
Can – Metal Can
Ingredients – Milk power, sugar, water, vegetable fat
Employees are very important assets. All operations are undertaken in terms of a team with a strong leader where in the norm is to expect and reward creativity.
In order to accomplish their vision, they have an effective & efficient operations management where the design, operation & improvement of the systems create & deliver the firms primary products. In addition, Partex Group has clear line management responsibilities.
By SWOT analysis a company can evaluate their strength, weakness, opportunity and threat. Let us now bring out what are the strength, weakness, opportunity and threat of Danish Condensed Milk of Partex Group.
Goodwill of the much known Partex Group brand image and the assurance of quality with a very strong personnel management besides a very conscious thinking about the environment and Safety of people are the main strengths of us. Again we at Partex Group have always opted for the latest in technology and our products in many instances are superior to our neighbor. For that’s why they got ISO and HACCP certificate.
Through Partex Group is very confident about itself but there are a few problems like- Test of consumers change rapidly, and as consumers are not that much loyal they may divert choice to another condensed milk.
The selection of the manufacturing machinery is complete and letters of credit will be opened very shortly. Moreover bank loans are easy to get new project. In Partex Group Satisfaction is getting acceptance as a brand symbol. Danish has another opportunity that they have very limited number of competitors.
a) Starship condensed Milk and Fresh Condensed Milk are the two main potential market competitors around the country.
(b) Customers are more inclined to the market leader of the industry.
Human Resource Management:
Partex Group is a dynamic organization, which regularly undergoes change. It promotes individuals who demonstrate on-the-job learning and constructive critical thinking, and who freely and generously share information. At all stages of recruitment, selection , hiring and promotion it seeks individuals with the best match of skills to the need, the highest standards of personal integrity and a willingness to face the challenges of living at the frontlines while demonstrating a commitment to develop themselves within a dynamic organization. During the introduction of a new addition, the proposed organ gram, job descriptions and staffing plans are reviewed and approved by the HR department. Vacancies may occur when new positions are created or when the incumbents of an existing position separate from Pepsi or is transferred to another section. These opening may be temporarily or permanently filled.
Positions are generally filled through competitive processes. Education qualification may be relaxed in case of highly experienced candidates, both external and internal. All position as a general rule, are opened to qualified internal and external candidates. Staff Managers (for office staff) and Operations Managers (for operations staff) are authorized to recruit and recommend for previously approved and budgeted positions. Human Resource manager, Hiring managers and Recruitment Boards are accountable for correct screening and short-listing procedures. Members of the Recruitment Board are required to sign a declaration that none of the short-listed and interviewed candidates are relatives or friends. The Recruitment Board must consist of a minimum of three employees. It must represent diversity in terms of gender and program approach. While it is vital that at least one member of the board have adequate knowledge about the job and have specific skills and competencies of the position being interviewed, It is equally important that others bring a broader perspective about what Partex Group does to the recruitment process. Interview questions must focus on areas relevant to the performance of the job. All staff is hired on contracts, the maximum duration of which is one year. Permanent or extended contacts shall be provided, subject to performance. Negotiation of salary and benefits of the candidates are handled by Human Resource Department. Each employee is provided with a job description, upon re-designation, employment, promotion or change of assignment by the supervisor.
The quality of an organization’s human resources depends on the quality of its recruits. Recruitment is the process of finding and attracting capable applicants for employment. Managers become involved because they want the best people they can get, and they often know about places where appropriate applicants can be found. In large organizations such as Partex Group, specialists in the recruiting process, called recruiters are often used to find and attract capable applicants.
Partex Group not merely profit seeking Organization, but believe in social responsibility to the community. They prove it by mentioning statement “Condensed Milk should not be used as breast milk substitute. And it is not suitable for diabetics and infants” on the can of the condensed milk. Partex group have a special commitment to protect the environment. Their industries take all possible steps to minimize adverse effect on echo system from their industrial process and its byproducts. They also sometime organize some social campaign like tree plantation and acid victim campaigns.
For producing the quality products and sound management of the company, it has achieved the Quality Management Certificate ISO 9001-2000.
For producing quality product Danish Condensed Milk has achieved HACCP certificate at first in Bangladesh.
Suggestions and Recommendations
Now a day Partex Group is one of the renowned organizations of the country. The towering heights reached by the group are possible due to a Market friendly strategy evolved by its pioneers. At present Partex Group are operating 11 manufacturing service and trading corners. All these corners are offering best value for money to customers. Though all the units are doing very well even after then they should be very careful about holding same quality product and further improvement. They should always motivate and encourage their R&D Department for betterment of their products. This is all about the overall organization. Now the recommendation regarding Danish condensed milk is discussed below. Danish Condensed Milk is a familiar product in the Bangladeshi market. From household kitchens to road side tea stalls Danish condensed milk is one of the most popular condensed milks in the market. But to maintain this quality and image, Danish needs continuous and careful attention for its improvement. And they must consider some issues which may decrease their sales.
• At first they have to be very cautious about green journalism. Because in 2002, they faced some problems for this. They had a misunderstanding with the BSTI regarding their ingredients but media exposed this issue in a very bad manner for which the company had to suffer a lot.
• Packaging is the silent sales person. According to the survey, it can be said that, their packaging is normal and inconvenient. By using colorful plastic bottle or can with flip cap, company can make the packaging more convenient and attractive.
• Partex Group can introduce another version of condensed milk without sugar for health conscious people and diabetic patients.
• Danish condensed milk uses international models in their advertisement. Since, rural people are also potential customers of this product; the company should use national figures and models in their advertisement which will be more acceptable to the rural people.
Danish condensed milk is available in Tin cans of 397 grams at the price of Tk.48. If they introduce condensed milk in Tin cans of 297 grams at Tk. 38they can earn more profit by hidden pricing. Moreover, they can capture small families as their consumers.
The opportunity of the completion the thesis report in a renowned condensed milk company like Danish Condensed Milk BD Ltd. has given me a lot of practical experience about the marketing sector and FMCG market of Bangladesh.
Danish Condensed Milk BD Ltd. has established itself as one of the strongest local condensed milk of our country. Though, Danish Condensed Milk BD Ltd. claims that they are using most modern and sophisticated production technology as well as various quality control devices yet consumers are not highly satisfied about the quality product. Consumers opined that the quality of Danish Condensed Milk BD Ltd. product could be improved to a great extent.
Marketing is one of the vital sectors in performing a business. To capture the market and make a rapid growth of the business marketing mix strategies plays an important role. After the deep observation to Danish Condensed Milk BD Ltd., it is found that Danish Condensed Milk BD Ltd. successfully practices and implements all the tools of marketing mix to achieve its organizational goals. For this reason, now the name “Danish Condensed Milk BD Ltd.” generates the assurance of profit and good business in mind of its distributors, wholesalers, retailers etc.
Nowadays Danish Condensed Milk BD Ltd. has moved towards with its products for the international business and thus it has forwarded its step to be a global product.