Report on Air Conditioners Marketing Survey in Bangladesh

Executive Summary

 Unitech Products (BD) Limited is a renowned Manufacturer Air-Conditioners  Marketing company. Unitech  is a Singapore Bangladesh Joint venture first in Manufacturing Air-condition Company in Bangladesh. From 1999 and is today Unitech is one of the leading and fastest growing diversified business in Bangladesh.  Unitech is the sister concern of Penguin engineering Ltd. Last 12 Years Penguin is doing business in Air- condition Sector (Window, Split & Central Air-Conditioning System). On that time Penguin imported Saijo Denki  & Eubank Brand Air-conditioners.

Unitech Products (BD) Limited is the First Air-Conditioning Manufacturing Company in Bangladesh, situated at Kabirpur, Saver, Dhaka. It is about  60 Kilometer West  of Dhaka.

The market size of  Unitech Brand Air-Conditioners are  3000 Pcs. is holding Third  position in terms of market share.  General is leading the  Air-Conditioners market. The market growth is 20% from 2004 to 2005. The potential market of  Air-Conditioners are  50000 above  Pcs in 2006. Companies making well in this arena are General, Carrier , American Aire, Hays & Hier, LG, Samsung, and Toshiba. Recently some Chinese brand like Gree,  Walton, TCL, Changhong, Toshin, Media, Apollo, etc. have launched into the market and created a good position in the market place. Their aggressive marketing policy created severe crisis for the renowned and established brand products because, these Chinese brands are sold cheaply. Beside these, some companies developed own brand. e.g. Rangs Industries developed “Toshin”, Otobi developed Apollo,  High quality products from home and abroad are marketed in these names and have a very good demand in the existing market. The price of consumer durable products has declined dramatically after the launch of these Chinese brands. Still the brand products are reliable to the customers.

In this study I developed some hypothesis and adopt questionnaire methods to measure customer satisfaction given by Unitech Products (BD) Limited.

I used survey technique of descriptive research to continue the study. I also used some graphs to present the data more appropriately. For successful analysis of the Air-Conditioners Marketing of  Unitech Products (BD) Ltd. I have taken SWOT analysis. Some photographs were also attached here form realizing about the standard of the Air-Conditioners.

UNITECH brand  Air-Conditioners equipment of Unitech Products (BD) Ltd. We further introducing you that Unitech Products (BD) Ltd. a Singapore Bangladesh Joint Venture Company engaged in manufacturing of  high-tech Air Conditioning technology, and steel furniture in Bangladesh. Our Manufacturing Plant is located at Kabirpur, Savar and our production capacity is about 8000 units of Window and Split type Air Conditioners per eight hour shift  per  year.

There another information is that  in the last six years  of  Unitech  our existence, Unitech  have been able to build up an impressive client list comprising of Industrial Groups, Banks, Schools and Universities, Government Agencies, Multi National Companies, Hotels, and Restaurants and various other entities. Some of our more distinguished clients include, Square Group, Beximco Group, Apex Group, Youth Group, BRAC Bangladesh, Bangladesh Oxygen Company, Acme Laboratories, Grameen Phone Ltd., Pacific Bangladesh Telecom Ltd., (City Cell), Standard Chartered Bank, HSBC, City Bank N/A, Islami Bank Bangladesh Ltd., Stamford University Presidency University, UITS, NBR, Planning Ministry, Hotel Sarina Inn, and many more within Dhaka, Chittagong, Sylhet and other District as well.

Unitech Products (BD) Limited is a renowned is a Manufacturer Air-Conditioners  Marketing company. Unitech  is a Singapore Bangladesh Joint venture first in Manufacturing Air-condition Company in Bangladesh. from 1999 and is today Unitech is one of the leading and fastest growing diversified business in Bangladesh.  Unitech is the sister concern of Penguin engineering Ltd.

Last 12 Years Penguin is doing business in Air- condition Sector (Window, Split, Ducted Split , Package  & Central Air-Conditioning System). On that time Penguin imported Sijudanki  & Eubank Brand Air-conditioners

1.1 ORIGIN OF THE STUDY

 This internship report has been prepared as the fulfillment of the requirement of MBA program as authorized by the management of Stamford University Bangladesh. The area of the study “ Air-Conditioners Marketing Survey in Bangladesh” on the basis of  Unitech Products (BD) Limited. This has been prepared within the internship period, which compasses from February 2006 to April  2006.

Without practical exposure, theory can never be fruit full. For this MBA program has been designed in such a way that a student can get practical knowledge in his/her two-year course. A student needs to go for practical orientation after completion of the required semester, in some organization where his/her duty is to bear all the same things from operations and activities of that organization.

1.2 OBJECTIVES AND GOALS

 Observe and Collect the market situation of Air-Conditioners users & future market in Bangladesh.

• Realize the Unitech Air-Conditioners position in the market.
• The goal of Unitech Products (BD) Ltd., wants to marketing Unitech Air-Conditioners in Bangladesh by providing Chief rate but high quality to the customers in Industrial, Corporate & Consumer level.
• The major objectives of Unitech Products (BD) Limited to Create a big market or become a market leader in Bangladesh, Unitech establish a manufacturing plant in saver, Kabirpur, Dhaka.
• To Provide Customers satisfaction Unitech establish a strong maintenance and customer care service in poribagh, Dhaka.
• Unitech Products (BD) Limited also wants develop Hospital, Pharmaceuticals, corporate & Industrial sector by providing decorative, lucrative, fresh air, 100% Germ Free and Chief rate but over facilities to customers.
• The another major objective of Unitech Products (BD) Limited, maximizes profit through customer’s satisfaction.

1.3 OBJECTIVES OF THE STUDY

 The objectives of my study are:-

 Analyzing the customer’s opinion about the products and services.

• To find out the satisfaction level of the customer with the facility and service by the Unitech Products (BD) Limited.
• Find out the major competitors of Unitech Air-Conditioners.
• Find out the market share of all the competitors
• Evaluate consumer’s perception about Unitech Air-conditioners.
• Find out the strength of Unitech Air-conditioners.
• Find out the weakness of Unitech Air-conditioners.
• Find out the opportunities of Unitech Air-conditioners.
• Identify the factors of weakness
• Possible guidelines of overcoming the weakness
• Find out suitable marketing strategy for customers satisfaction and profit making offered by Unitech Products (BD) Limited.
• To proved my problems to be right.

Major competitors of Unitech Air-Conditioners:

 The companies who are performing well and have maximum market share of the industry are as follows:

1. Square  Electronics Ltd. ( General)
2. Harun Engineering Ltd. (Carrier)
3. Gulf  International Ltd. (American Aire)
4. Gulf Environmental Ltd. (Infinity)
5. Dolphin Air-Conditioning & Engineering Co. (Emerald)
6. Mitshumaru Bangladesh (Maitshumaru)
7. Rangs Industries Ltd. ( Toshin)
8. Butterfly Marketing Ltd  (LG)
9. Electra International (Samsung)

10.Bay Engineering  (Super Admiral)

Market Share of Companies:

 The market share of different companies in the Air-Conditioners  is described in the following manner:

Market share of Companies

For the year 2005

Strength of  Unitech Air-conditioners :

 a)  Organization  reputation as Air-Conditioners Manufacturer in Bangladesh

(b)  Managerial Efficiency

(c)  Long Experience & Good Learning Curve

(d)  Global Reputation

(e)  Brand Image of Unitech Air-Conditioners

(f)   Economies of  Scale

(g)  Special Features of Products

(h) Good location

(i)    Technologically efficient

Good baking of foreign country.

Weakness of Unitech Air-conditioners :

a)  Frequency of Advertisement of  Unitech is lesser than its competitors.

(b)  Showroom Locations are improper in some cases

(c)  Lack of proper decoration of  Showrooms

(d)  Lack of  proper awareness of  the Unitech brand Air-Conditioners.

(e)  Unitech Price is high than the others products.

Opportunities of Unitech Air-conditioners:

(a)  Unitech has positive corporate image

(b)  People of  Bangladesh likes local but heavy duty full Products

(c)  Unitech give 05 (Five) Years unlimited Guarantee but others competitors can’t unlimited guarantee .

(d)  Unitech  are the heavy duty full Air-Conditioners.

Possible guidelines of overcoming the weakness:

(a)   Unitech should develop  advertisement .

(b) Television Ad. Is more effective for sale increase.

(c) Unitech should increase their  Showroom.

(d) The showroom should be important place and well decorated.

(e) Unitech should be cut down the price. 

     Unitech should start some promotional activities.

1.4 SIGNIFICANCE OF THE STUDY

The competition in the air-conditioning sector is very high so in order to stay into the long run as a Manufacturing Air-Conditioning Company in Bangladesh  the Unitech Products (BD) Limited must have to provide very good service an also have to offer attractive facility of product to it’s customers. So by carrying this report as an employee’s perspective. I can really know the perception of the clients the Unitech Products (BD) Limited, the product and services the same things goes for the management of the organization or the employers.

1.5 PROBLEM DEFITION

I have two problems for my project part-

• The first problem of my study is, It is the luxurious Products and big budgets for purchase the products but Unitech Products (BD) Limited  not provide credit facilities to the customers.
• After finalize the decision, every Customer wants to delivery the machine immediately and installation the Air-Conditioners emergency but Unitech Products (BD) Limited can not  Delivery quickly cause of Production & Distance of Factory location that’s why the customers of Unitech not satisfy

1.6 METHODOLOGY

It is the plan for collecting information essential of my study. To gather the information, an information plan was developed. To conduct the study, secondary data and related literature was thoroughly revealed. The collected information was analyzed in an organized manner. Efforts were also given to gather primary data on related subject. For primary data collection non-participatory observation, discussion and interviews were conducted.

The study has conducted on two sources of data.

(A)  Primary sources:

Questionnaire survey of the Corporations i.e. major competitors

• Questionnaire to the Marketing managers of  different Competitors
• Questionnaire to the open market/ Gray market managers
• Observation , discussion and interview were also conducted
• Telephone survey
• Formal and informal interview with existing and prospective customer.
• Informal talks with the executives and managers of UBPL.

 (B)   Secondary Sources:

Air-Conditioners Brochures

• Newspaper articles
• Publications of Corporations
• Text books
• Internet websites of different companies
• Reports.

Sampling:

In my survey I have made random sampling, where every consumer of electronic goods (Refrigerator) has equal chance participation. My sample size is shown in the following table:

02.Showroom Survey ( Unitech  5 & others 18)

03.Open Market / Gray Market Survey

04. Corporation Survey

100

23

20

07

During the survey of Consumer, Open market Showrooms, judgment sampling is made to have accurate information.

1.7 SOURCES OF INFORMATION

The survey has been competed in two major sectors in most of the cases, primary data has been used and in some cases corporate from the periodic information. Primary data has been collected through interviews of the organization officials of the organization and from the questionnaires.

1.8 SCOPE OF THE STUDY

The scope of the report is limited by the customer satisfaction and services provided by the Unitech Products (BD) Limited in a specific area. The whole report covers the organizational stricture, background of the organization, objectives functions, departments, business performance and activities of the Unitech Products (BD) Limited. The main part of the works in the “Air-Conditioning Marketing survey” of Unitech Products (BD) Limited

1.9 LIMITATION OF THE STUDY

During the internship program I enjoyed lot this time. I tried to get the flavor of  Air-Conditioners environments and I am so lucky because I find nice gang of executives in office all of them help me to make this report on basis of facts and complete information but there are some limitations too.

• Most of the open Marketing  Managers paid less attention to answer the questionnaire.

• The sampling of 100 consumer actually can’t reflect the actual scenario of the country

• Short of experience: It was my first opportunity to get work in a First manufacturer of Air-Conditioners in Bangladesh Which is the Singapore Bangladesh Joint Venture Company. But most the executives and officer help me in develop this research soundly. For lack of my experience the report might suffer in some areas.
• Limitation of times: Three months period is enough to complete this report but within this time I try to learn the different operations, activities of the Factory & Corporate Office environments before starting the report work.
• Incomplete information: Some respondent did not ill or not like to communicate due to innovation. This sort of acts definitely affected to fulfill report objectives. Some respondent did not want to give the questionnaire answer for their lack of time.
• Miss interpretation of questions: The respondents who are questioned by telephone might misunderstand those and give on answer which is not correct cause when the respondents are not familiar to this kind of survey.
• This report has to be more accurate but much information is damaged and missing cause computer hard disk crash.
• Slow decision market authority.

In spite of the above limitations, I have tried my best to collect appropriate information.

2.1 BACKGROUND INFORMATION 

The increasing demand for Air conditioners during the scorching summers has led to a rapid rise in the import of Air conditioners from various countries. Imported Air conditioners resulted in the availability of higher priced air conditioners in the market. To cater to the local market, Engr. Anis Ahmed, Managing Director of Penguin Engineering Ltd. and a Mechanical Engineer by profession took the initiative to establish an Air conditioner manufacturing Plant here in Dhaka. Mr. Ahmed is a reputable, socially well connected personality, and has been responsible for successfully managing four profitable industrial establishments namely:

1.     Unitech Products (BD) Limited
2.     Penguin Engineering Ltd.
3.     Afa Steel Industries Limited
4.     Hi-tech Spares Ltd.

The foreign Sponsor of the project is Unitech Products (Pte.) Limited and is represented by Mr. Chung Miah Huat and Mr. Ong Chu Tek. Both Mr. Huat and Mr. Tek are experienced industrialists and are well known in their native county.

2.2          COMPANY INFORNATION or Company Profile

Organization Name           : UNITECH PRODUCTS (BD) LTD.

Location

1) Head Office               : House # 84 (2^nd floor)

Road # 7/A, Dhanmondi R/A

Dhaka-1209, Office Space : 4100 sq. ft.

2) Factory:                               :  Kabirpur I/A, Savar

(On the way to Jamuna Multi purpose Bridge)

Land Area                                    :  1,56,000 sq. ft. 

Constructed Area                            :      40,000 sq. ft.                                            

3) Installation & Maintenance  : 12, Paribagh, Sonargaon Road

Dhaka-1209, Office Space      :  2,000 s

Number of Employees

Brief Overview

Unitech Products (BD) Limited is a private company limited by shares and was established as a Joint Venture Entity on December 20, 1999.  The Company is presently producing the following:

• Air Conditioners,
• Steel Furniture ( for Industrial & Household purpose)
• Light Shed
• Industrial Light shed

Product Description:

The Company manufactures and sells the following Products:

1)     Window Type Machines with cooling capacities of  1.5 tons to 2 tons with & without Remote Controls

2)    Split Type Machines

i.                   Split Wall Type – having cooling capacities of 1 ton, 1.5 tons & 2 tons
ii.                 Split Ceiling Type – having cooling capacities between 1.5 tons to 5 tons
iii.              Cassette Type – with cooling capacity of 2 tons to 4 tons
iv.               Duct Type – with cooling capacity between 2 tons to 5 tons.
v.                 Floor Type – with cooling capacity of 4 tons only.
vi.               Package Type Air conditioner – All capacities on order basis

 All Split units are complete with LCD Remote Control units.

The equity of Unitech Products (BD) Ltd. has been financed as follows:

1) Penguin Engineering Ltd.                                       50%

(Local Sponsor)

2) Unitech Products (Pte.) Ltd.                                   50%

(Foreign Sponsor)

i.                  Penguin Engineering Ltd.

Penguin Engineering Company is the local sponsor of the company and has been in the Air conditioning business for more than a decade. The company is well known among some major corporations in the country and has successfully completed some significant projects including-

• Karnaphuli Garden City
• Ekushey Television
• Pan Pacific Sonargaon Hotel
• Rifles Square
• Hotel Sarina Inn
• Square Pharmaceuticals Ltd. (Pabna)
• Acme Pharmaceuticals
• Pacific Pharmaceuticals
• Square Textiles (1,2 & 3)
• Square Sarah Knit Fashion
• Youth Spinning Mills
• Silver Line Composite Textile Mills

The company is associated with various foreign brand names including Mazzini ICI, McQuay International, and Thermax Ltd.

ii.                 Unitech Products PTE Ltd.

The Foreign Sponsor, Unitech Products Pte. Ltd. is experienced in the manufacturing and exporting of Air conditioner parts for the last 30 years.

Our Foreign Office is mainly responsible for outsourcing of raw materials used in the manufacturing of Air Conditioners. It is also where our Research & Development Center is based.

Unitech Air Conditioner Parts

1)     Imported Parts

Activities performed at Unitech

 1)     Local Functions & Activities

At Unitech Factory, a list of disciplined activities carried out by our various qualified and skilled engineers and technicians ensure the final quality of our Air Conditioners. Some of the various activities that are involved in the production process include:

1. Engineering
2. Coil Production
3. Fabrication
4. Assembling
5. Testing
6. Maintenance

2)    Machinery & Equipment being used–

Apart from our skilled and efficient staff members and technicians, our factory houses some of the most technologically advanced machinery that ensures the smooth finishing of our products. Some of these machines including

1. CNC Bending machine
2. CNC Press Brake
3. Fin Press Machine
4. Coil manufacturing unit
5. Automatic Powder Coating Machine
6. Chemical Treatment Plant (Hot Treatment)
7. Assembly line equipped with all necessary equipment, auto-charging vacuum etc.
8. Testing Laboratory
9. Hydraulic sharing machine
10. Hydraulic bending Machine
11. Corner Cutting Machine
12. All types of welding machines
13. All equipment’s and machines for testing air-conditioner

Advantages of  Unitech  Air -Conditioners

Apart from local manufacturing of high quality Air conditioners and the presence of an R&D Department in Singapore, we at UPBL sincerely believe that Customer Satisfaction is our top most priority. In this regard, we provide the following services:

5 years full warranty for all Spare parts including Compressor

–         Availability of All spare parts even beyond the warranty period

–         24 hours After Sales Service

–         Attend to customer complains/queries within 24-48 hours within city limits and between 24-78 hours for outside city limits.

–         Reliable quality

Names of a few Clients of Unitech Air Conditioners

Unitech has always been particular regarding the needs and requirements of our Clients, which explains our extensive Clientele. Most of our Clients make repeat purchases since to us Customer Satisfaction is an integral part of business relationship. In the four years of our existence we have been successful in building up an impressive client list comprising of Industrial Groups, Banks, Schools and Universities, Government Agencies, Multi National Companies, Hotels and Restaurants and various other entities not only in Dhaka but all over Bangladesh.

Some of our major Clients in various sectors include:

    Corporate Clients:

•  Square Groups
•  Beximco Group
•  Bangladesh Oxygen Company
•  Grameen Phone Ltd.
•  TM International (Bangladesh) Ltd. (Aktel)
•  Pacific Telecom Bangladesh Ltd. (City Cell)
•  BRAC Bangladesh
•  Acme Laboratories Ltd.
•  Apex Group
•  Youth Group

And more……………………..

Banks:        

•  Standard Chartered Bank
• Citi Bank N/A
• HSBC
• Islami Bank Bangladesh Ltd.

Janata Bank

And more ……………………

Schools & Universities:         

1)      BUET

2)      Presidency University

3)      Stamford University

4)      UITS

5)      BRAC University

6)      Australian International School

Others:

1)      Bitopi Advertising

2)      Banker’s Association

3)      Helvetia Fast Food & coffee House

4)      National Board of Revenue

5)      Planning Ministry

6)      Japan Garden City

7)      Family Needs Ltd.

8)      Keari Ltd.

And more ……………………

 Unitech Products (BD) Limited

Unitech  represents  Steel Furniture & Air-Conditioners  Italy &  South Africa for exports from Bangladesh.

Unitech Products (BD) Limited

The Company is the official license of  Unitech Industries Pte. Ltd , Singapore for Shade lighting products, Air-Conditioning, Refrigerator  and Steel Furniture in Bangladesh.

 Unitech  :

Unitech Products (BD) Limited is Manufacturer in Bangladesh. The products include Light Shade, Steel Furniture, Air- Conditioners and other Industrial Products.

McQuay :

The Mother company of Unitech Products (BD) Ltd is Penguin Engineering  Limited which is authorized sole distributor for McQuay USA   Chiller , AHU, FCU of Comfort & Industrial

application.

Mazzini :

Unitech Product (BD) Ltd, is  sole agent for Mazzini  Italy, is  a Humidification system  with dust & waste separation  and collection system for Textile Industry.

Light Shade, Steel Furniture & Air-Conditioners: 

It is the own brand developed by  Unitech Products (BD) Limited. High quality products from home and abroad are marketed in the name of Unitech . Own brand so far, Bulb, Tube light, Air conditioner, Refrigerator etc.

EMI Engineering Pte Ltd.

EMI is a leading producer of  Unitech  radios in Bangladesh and is the official license of  Unitech. The company was incorporated in 1993 as a subsidiary of  Unitech, Singapore.

2.3 Management Structure of Unitech Products (BDE) Ltd.

 2.4 Nature of Business

The Name of the company expresses the nature of its business. Unitech Products (BD) Ltd is a manufacturing  company. It is concentrating on consumer durable electronic & Household  goods.

2.5 Brands marketed by Unitech Product (BD) Ltd.

Now Unitech Product (BD) Ltd is  marketing the only One brand but various Products :

(a)  Unitech Light Shade

(b)  Unitech Steel Furniture

(c)  Unitech Window type Air-Conditioners

(d)  Unitech Split  type Air-Conditioners

(e)  Unitech Cassette type Air-Conditioners

(f)   Unitech Ducted type Air-Conditioners

(g)  Unitech Package Ducted type Air-Conditioners

2.6 Mission of the Company

Unitech  will become the acknowledge leader in Air-Conditioners & home appliance industry to provide quality products into reachable price. Leadership will be achieved by establishing the industry standards of excellence for quality of service and by maintaining the board loyalty relative to our service commitment.

2.7 Objective of the Company.

 a) To create and continuous upgrading the loyalty of the clients and their recommendation of our people through: quality products and good advice, dependable service and delivery and efficient marketing effort.

b) To establish a strong and distinguished corporate portfolio and image by retaining the tradition of the world’s greatest product line up.

c) To continuous upgrading, monitoring and evaluating of total quality management (TQM) approach to all marketing and distribution system by making dynamic, honest and industrious showroom and dealer personnel, an integrated part of the family.

d) To reach the pinnacle of the market in Brand category combined with customer segmentation and strengthen our position there.

e) Develop an integrated human resource policy and implement its consistent use through the organizational training, authority commensurate with responsibility and recognition for performance.

f) To ensure that every member of the management team will be a person of top capability.

g) Introduce methods to plan for the provision of required caliber and quantity if staff.

(h) Assist the organization in becoming more customers aware and responsive in changing needs of external marketing environment.

i) Define and encourage implementation of an improved communications culture throughout the organization.

j) Faster a leadership style throughout the organization which encourage the respect for individuals, teamwork and close identification with customers.

2.8 Sales Methods

Unitech Product (BD) Ltd has two sales methods. These are:

(a)  Cash Sales

(b)  Credit Sales

2.9 Products

Unitech Product (BD) Ltd  is introducing are:

• Unitech Light Shade
• Unitech Steel Furniture
• Unitech Window type Air-Conditioners
• Unitech Split  type Air-Conditioners
• Unitech Cassette type Air-Conditioners
• Unitech Ducted type Air-Conditioners
• Unitech Package Ducted type Air-Conditioners

2.10 Number of Showrooms

Currently  Unitech Product (BD) Ltd  has 04 nos own showroom and  20  nos. dealer outlets (12 nos. Exclusive and 08 nos. non- exclusive).These showrooms are also work as service centers.

2. 11  Departmental Activities in a Brief

At the beginning of this chapter, the management structure of Unitech Product (BD) Ltd  is given. Now I will briefly discuss the activities of different departments.

(a) Administration Department :

The activities of this department are:

• Administrative works of Unitech Product (BD) Ltd
• Staff Recruitment
• Staff Management
• Staff Controlling

i) Organizing

ii) Rearrangement

iii)  Controlling

IV) Working Program setup

(b) Accounts Department:

The activities of this department are:

• Accounting work centrally
• Financing report
• L/C or import related works, Banking
• Employee salary disbursement
• Preparing monthly  & annual Accounts report

(c) Sales Department

The activities of this department are:

• Cash purchase activities
• Monitoring and supervision cash functions of field officers
• Checking out and preparing arrear collection report of showroom managers
• Monitoring total sales report
• Checking out latest position of accounts
• Observation of any sorts of discrepancy, gaps and performance evaluation of showroom.
• Supervision branch level data through area and district manager.

(d) Marketing Department

The activities of this department are:

• Sales promotional activities
• Advertisement (Print media, Holding, Banner )
• Sales promotion project (Package, Gift item, Foreign trip )
• Market survey
• Competitor analysis

(e) Audit Department

The activities of this department are:

• Showroom Audit
• Checkup of Cash, Inventory and Hire sales Accounts.

(f) Inventory Department

The activities of this department are:

• Physical position of inventory of Head office and Showroom
• Recording total amount of import of products monthly
• Preparing record of total sales unit of products weekly and monthly
• Management of inventory for the Showrooms.

(g) Logistic Department

The activities of this department are:

• Any type of product distribution
• Product support and logistic support
• Controlling and Management of  Store

(h) Service Department

The activities of this department are:

• After sales service
• Servicing of only own product

 (i) Showroom Activities

The activities of this department are:

• Sales
• Maintenance of sales related paper
• After sales service

(j) Data entry Department

The activities of this department are:

• Entry of sales data comes from Showroom
• Entry of arrear of the Showrooms

Thus, from the above discussion, se can understand the activities of Unitech Product (BD) Ltd.  in a brief manner.

2.12 DEPARTMENTS OF UBPL.

ACCOMMODATIONS

 Corporate Office:

Head Office Located: House  #  84 (2^nd Floor) , Road # 7/A , Dhanmondi R/A , Dhaka-1209. Office Accommodation: 4000 sq.ft.

Factory Accommodation:

Factory  Located: Kabirpur I/A, Saver (Onthe way to Jamuna Multi Purpose Bridge), Land area : 1,56,000sq.ft. Construction Area : 40,000 Sq. ft.  

 2.14   Price List  of Unitech.

 SWOT Analysis consists of four dimensions. These are: Strength, Weakness, Opportunity and Threats.

3.1 STRENGTH

• Largest Manufacturing Plan in Kabirpur, Saver, Dhaka.
•  Organization reputation as Air-Conditioners Manufacturer in Bangladesh
•  Efficient and skilled  Management
•  Long Experience & Good Learning Curve
•  Global Reputation
•  Brand Image of Unitech Air-Conditioners
•  Economies of  Scale
•  Special Features of Products
•  Good location
•  Technologically efficient
•  Good baking of foreign country.

3.2 WEAK

•  Frequency of Advertisement of  Unitech is lesser than its competitors.
•  Showroom Locations are improper in some cases
•  Lack of proper decoration of  Showrooms
•  Lack of  proper awareness of  the Unitech brand Air-Conditioners.
•  Unitech Price is high than the others products.

3.3 OPPORTUNITY

•  Well reputation and Positive Corporate image
•  People of  Bangladesh likes local but heavy duty full Products
•  Unitech give 05 (Five) Years unlimited Guarantee but others competitors can’t unlimited guarantee .
•  Unitech  are the heavy duty full Air-Conditioners.

3.4  THREATS

•  New products in Market.
•  Entrance of Chinese Products, which dumping the market price dramatically.
•  Imposition of high import duties on intact product.
•  Others competitors sales the products lowest price by  dishonesty.
•  Bad economic conditions of customers lead to purchase cheap priced products.
•  Limited Market.

 4.1 Marketing Strategy

The marketing Strategy of Unitech Product (BD) Lt is to improve Customer Service, reduce cost and improve productivity.

4.2 Marketing Mix

We  know  that  marketing mix  is  a  combination of  four  elements  i.e. (a)  Product, (b) Incentive, (c) Distribution, (d) Communication. The following figure will make it clear:

4.3 Distribution Channel

Unitech  has established its own outlets all over Bangladesh. The distribution channel of Unitech Product (BD) Ltd  is as follows:

4.4 Operational Plan

The operational plan of Unitech Product (BD) Ltd  can be presented in the following manner:

4.5 Sales Promotion

The Sales Promotion activities of Unitech Product (BD) Ltd  are described in the following pattern:

4.6             Advertising Objective & Pattern

The advertising is made:

• To establish an immediate sales
• To bring prospect to closer to a sale
• To bring  a long time franchise
• To bring consumption intension among users
• To initiate fast move towards sale
• To give sales force a supporting service
• To gain market support
• To deepen penetration
• To open distribution
• To develop image
• To combat competition
• To enter new market
• To create awareness
• To support retail trade
• To defend memory laps
• To establish market lead
• To reinforce reputation monopoly

I have collected data in four phases. From the 10^Th  February, I have started data collection and completed data collection by the 15^Th of April.

5.1 Corporate Survey

Sample Size: 7

Survey Area: Different Locations of Dhaka City

Date of Survey: 11^Th February,2006 to 25^Th of February, 2006

Air-Conditioning Ltd.

2. Rangs Electronics Ltd.

3. Fujian Electronics Ltd.

4. Limo Electronics Ltd.

5. Electra International

6. Rangs Industries Ltd.Rapa Plaza, Dhanmondi, Dhaka.

12 Sonartory Tower

112 Airport Road

228/ B Tejgaon 1/A

56 Purana Palton , Shokh Center

113-116 Old Airport Road11^Th February

15^th February

16^th February

19^th February

22^nd February 25^Th February

5.2 Showroom Survey

Sample Size: 19

Survey Area: Different Locations of Dhaka City

Date of Survey: 27^Th February to 2^nd  of March

( 5 Showrooms so far )

 22 B.B Avenue, Dhaka

— Gulshan 1

— Gulshan 1

—  Kawran Bazar2. Rangs Electronics Ltd.

( 2 Showrooms )12 Sonartory Tower

240 Outer Circular Road, ( Mouchak )3. Rangs Industries Ltd.

( 2 Showrooms )116 Malibagh DIT Road

38 Inner Circular Road, Kakrail ,Dhaka4. Singer Bangladesh Ltd.

(2 Showrooms )7 Bangabandhu Avenue, Dhaka

— Shewrapara5. Limo Electronics Ltd.

( 2 Showrooms )78/1 Airport Road, Dhaka

79 Outer Circular Road, Moghbazar, Dhaka6. Electra International

( 2 Showrooms )112 Airport Road, Dhaka

—- Shewrapara7. Siemens Bangladesh Ltd.

( 2 Showrooms )44/9 West Panthopath, Dhaka

1037 Begum Rokeya Sarani8. Esquire Electronics Ltd.

( 1 Showroom )12 Kawran Bazar, BSRS Bhaban9. Electro Mart ( 1 Showroom )78 Airport Road

5.3 Open Market / Gray Market Survey

Sample Size: 20

Survey Area: B.B National Stadium

Date of Survey: 3^rd March to 10^th March

2. Electra International

3. M.M Enterprise

4. Beacon Electronics

5. Electro House

6. S.A Electronics

7. Palash Electronics

8. Hitachi Electronics

9. General Enterprise

10. Apollo Electronics

11. Victor Electronics

12. Modern Radio Service

13. VIP Electronics

14. Asia Electronics

15. Talukder Electronics

16. Abarani Electronics

17. Prime Electronics

18. GMG Stores

19. M/S Asif Electronics

20. Siemens

 18 B.B National Stadium Market

27 B.B National Stadium Market

115 B.B National Stadium Market

96 B.B National Stadium Market

26 B.B National Stadium Market

92 B.B National Stadium Market

32 B.B National Stadium Market

112 B.B National Stadiium Market

91 B.B National Stadium Market

25 B.B National Stadium Market

101 B.B National Stadium Market

16 B.B National Stadium Market

89 B.B National Stadium Market

71/1 B.B National Stadium Market

1 B.B National Stadium Market

13 B.B National Stadium Market

8 B.B National Stadium Market

18 B.B National Stadium Market

52/B B.B National Stadium Market

119 B.B National Stadium Market

5.4 Consumer Survey

Sample Size: 100

Survey Area: Different Locations of Dhaka City

Date of Survey: 11^th March to 17^Th of March

2

3

6

7

8

9

10

12

13

14

15

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

37

38

39

40

41

42Md. Mahbub

Mrs. Puspo Gomes

Dipak Talukdar

Uttam Baul

Abbas Uddin

Md. Khaled Ahmed

Md. Mostafa Kamal

Rokeya Begum

Arjun Kumar Ghosh

Biplob Sarkar

Jahiruddin

Hanif Khan

Sahidul Isam

Abdul Awal

Soharb Hossain

Md.Fakrul

Md.Oli Mia

S K Asraf

Anowar Hossain

Md. Muzibur Rahman

Abaidul Hossain

Salauddin

Sumon Talukder

R.N. Saha

Rajatangshu Saha

Sajal  Sarker

Prokash Boiddya

Md. Ashuque Iqbal

Md. Shoriful Alam

Md. Azad Rahman

Md. Abdullah Al Mamun

Aminur Rashid

Md. Mustofa Kamal

Md. Fazlur Rahman

A K M Amirul Haque

Biplob

Zulfiker Ali

38

45

37

25

33

40

32

35

36

33

42

32

40

39

50

30

32

36

35

36

39

45

60

30

31

32

34

27

36

32

31

45

30

29

30

36

41

795 Satmosjid Road, Dhanmondi  R/A

100/1 East Tejturibazar

781/1 West Shewrapara

198 Tejkunipara

193/1 Tejkunipara

Kajipara,Dhaka

28/A Monipuripara

10 Pollobi, Mirpur, Dhaka

629 West Shewrapara

51,B.K. Das Road,Farashgong

22/5/A/1 Tejgaon 1/A

303/1 West Shewrapara

13/C Mirpur

1113 East Sewrapara

North Begunbari

795 West Shewrapara

808West Shewrapara

Dakhin Chyabithi Gazipur

Pubail, Gazipur

795West Shewrapara

793 West Shewrapara

796West Shewrapara

Road No-9/A,16/2 Dhanmondi

51,B.K. Das Road,Farashgong

Dhanmondi, Dhaka

12/ B Katasur, Mohammadpur

45 Banianagar, Lomkhibazar

21/57 Rupnagar R/A, Dhaka

Kalabagan

24/1 Block A, Mirpur -6

H#1,R# :8 Block A,Mirpur 10

356/A Road: 4, Tilpapra, Khilgaon

629 West Shewrapara

12/5 Mirbag, Modhubag Bazar

45/3 S Mugda, Dhaka- 1214

64 Nawabpur Road, Dhaka

1/7 Pallabi , DhakaUnitech Toshiba

Rangs

Singer

Singer

LG

National

Toshiba

Rangs

TCL

Sony

Samsung

Toshiba

National

TCL

Sony

Tanin

Toshiba

Sony

Sony

Sony

Konka

Sony

Konka

Sony

Samsung

Panasonic

Panasonic

Sony

National

Walton

Toshin

Rangs

TCL

Icon

TCL

Singer

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100Zakir Hossain

Md. Mazharul Islam

Uttam Kumar

Habib Mollah

Ripon Mia

Reba Begum

Mrs. Diba kobir

Ariful Haque

Shanaz Akter

Parvin Akter

Maleka Fazlunnahar

Mofazzal Hossain

Aminul Islam

Md. Saiful Tahman

A K M Kaiser

Md. Sadekul Alam

Abdus Samad Chowdhury

Mosharaf Hossain

Md. Jasim Uddin

Kamrul Bhuyan

Sultana Shirin

Md. Serajul Islam

Md. Robiul Alam

Masudur Rahman

Shafiqul Inam Khan

Badrul Islam

Md. Mohiuddin

Ratan Kumar Poddar

Dipika Halder

Seikh Md. Halim

Monir Hossain

Maksuda Parvin

Khandakar Marium

Shanaz Begum

Rashida Akhter

Samsun Nahar

Rahima Akhter

Sayeeda Jahan

Sahida Parvin

Nasima Akhter

Hazera Khatun

Mrs. Mahamuda Islam

Mrs. Zakia Akhter

Abdullah al Khaled

Saidur Rahman

Abdus Samad

Ariful Islam

Momtaz Begum

Masum Ali

Zakir Hossain

Polash Ahmed

Arjina Khatun

Habibur Rahman40

32

32

48

33

33

39

30

32

35

50

55

30

55

24

28

47

30

50

27

30

26

28

29

33

35

26

32

27

31

31

35

31

29

33

30

30

35

33

35

38

35

30

35

35

45

35

42

29

37

32

35

3988/1 Moiddya Madartek, Dhaka

333/C Khilgaon, Dhaka

181/1 West Shewrapara

F-101, GP Ga, Mohakhali

32 West Kafrul, Agargaon, Dhaka

668/A Shamoli

TNT Market, Tongi

129 Ahmedbagh, Dhaka

328 Gulbagh , Dhaka

338 Gulbagh, Malibag

320 Gulbagh

138/1 Ahmedbagh, Dhaka

334 Gulbagh, Malibag

392 Gulbagh, Dhaka

369/11/A Gulbagh , Dhaka

Middle Badda, Ga- 58, Gulshan

Sobahanbag ,Dhaka

822/2 Rokeya Sarani, Mirpur

6-B 3/10 Mirpur

Narinda

North Shajahanpur

Jatrabari, Dhaka

West Kazipara

231 Shewrapara

45/A Eskaton

739 West Kazipara

64 West Tejturi Bazar

822/3 West Kazipara

28/1 North Circular Road, Dhanmondi

527/26 Nayapolton

4Dhalpur, Dhaka 1204

13/1 North Jatrabari

104/A North Jatrabari

North Jatrabari

Matuali – 2, Demra, Dhaka

60/F/3 Dhalpur, Dhaka

76/1/H/3 Bibir Bagicha, N. Jatrabari

76/1/H/3 Bibir Bagicha, N. Jatrabari

Shyamoli , Dhaka

Plot: 77, Donia Rasulpur

605 Donia Bazar, Dhaka

13 Avoidash Lane, Tikatuli

419 BA Housing, Mohammadpur

36/A Dilu Road, New Eskaton

130 Ahmedbagh, Dhaka

35 West Zatrabari

35/1 North Zatrabari

578/ B Noyatola, Mogbazar

Road # 2, 12/Cha Shyamoli

88/1 Moddya Madertek

73/3 Monipuripara, Dhaka

4 Natok Saroni, New Baily Road,

F 101, Mohakhali, DhakaNippon

Walton

Philips

LG

Philips

Panasonic

TCL

Sharp

Daewoo

Sony

Sunflower

Haier

Rangs

Nakai

TCL

TCL

Singer

Changhong

Sony

Panasonic

Konka

Akira

LG

Canca

Hisense

National

Videocon

Singer

Konka

Singer

Walton

Haier

Butterfly

Panasonic

–

–

Toshin

National

Nippon

TCL

Sony

Sony

Rangs

Konka

–

–

Panasonic

Singer

Philips

Nippon

Singer

Sony

Sony

6.1 Definition of Industry

An Industry is a group of firms that offer a product or class of products that are close substitutes for each other. The Industry can be defined into two ways. Wide definition and Narrow definition.

(A) Wide Definition of the Industry

For the convenience of analysis, the industry can be defined as “Consumer durable Electronics Goods” Industry.

(B) Narrow Definition of the Industry

For the convenience of our analysis, the industry can be defined as

“Air-Conditioners ” Industry

6.2 Major Competitors of the Industry

The companies who are performing well and have maximum market share of the industry are as follows:

•  Esquire  Electronics Ltd. ( General)
•  Harun Engineering Ltd. (Carrier)
•  Gulf  International Ltd. (American Aire)
•  Gulf Environmental Ltd. (Infinity)
•  Dolphin Air-Conditioning & Engineering Co. (Emerald)
•  Mitshumaru Bangladesh (Maitshumaru)
•  Rangs Industries Ltd. ( Toshin)
•  Butterfly Marketing Ltd  (LG)
•  Electra International (Samsung)
•  Bay Engineering  (Super Admiral )

6.3 Market Share of Companies

The market share of different companies in the Air-Conditioners  is described in the following manner:

Market share of Companies

For the year 2005

6.4   Market Demand / Size of Industry 

In the year 2005, the non-brand products are influencing the brand market size. As a result the size of Brand  Air-Conditioners demand is in a declining trend. Total Market Demand or size of  Air-Conditioners in 2005 was   50,000 units. Out of this volume, 29,000 is for brand products and the rest 21,000 is for non – brand product.

The following figure shows the market demand for brand and non-brand Air-Conditioners :

In 2005, the market demand is increasing but the proportion of Non- brand increased and proportion of Brand Air-Conditioners is declined. The non- brand products are imposing tremendous

Pressure on Brand products.

6.5   Growth of  the Market 

The trend of the Air-Conditioners  market from 2003 to 2004 is overall increasing trend. In the year 2003 the market demand for Air-Conditioners  was around  1, 25,000 units. Then in 2004 the market demand / size of  Air-Conditioners increased to 1, 50,000 units. So, the growth rate in 2004 is 20 %.

Thus, from the above discussion, we can understand the market share, market demand and market growth of the Air-Conditioners industry.

6.6   Corporate  Questionnaire Analysis

The answers provided by different corporations are summarized in the following:

Question 1: Product Brand

Question 2: Target Market on the basis of income group:

Question 3: Size & Scope of Potential Market of  Air-Conditioners:

Question 4: Mission

Question 5: Objectives

Question 6: Price Sensitive Brand?

Question 7: Benefits Provided by the Products

Question 8: Unique Physical Characteristics

Question 10: Term to be used “Guaranty” or “Warranty”

Question 11: Part of Guarantee not welcome by the customer

2.3 Management Structure of Unitech Products (BDE) Ltd.

Question 12: Media that influence the Market

Question 13: Percentage of Revenue used for advertisement

Question 14: Market Share

Question 15: Market Trend

Question 16: Major Competitors

Question 17: Doing Better than Competitors

Question 18: Sales Practics

Question 19: Number of Showrooms / Sales Centre

Note: Here I have summarized the answer of 20 questions due to preference on the basis of importance.

6.7   Showroom Questionnaire Analysis :

I have surveyed 20 Showrooms. Out of these 23, 5 Showrooms are of  Unitech Products (BD) Ltd  and rest is of other companies (Singer, Samsung, Toshiba, General etc.). Here I am discussing the summery of Showroom Questionnaire Analysis:

Question 1: Why customers demand your product?

Interpretation:

30% said that customers demanding the product for price, 5% said Brand, 30% said getup and 35% said quality. Quality is the maximum response.

Question 2: Who are your current customers?

Interpretation:

70% said that their current customers are of High income group. 30% said of Middle income group.

Question 3: Who are your Best customers?=

Interpretation:

45% said that their best customers are Corporate Organization , 25% said of Trading Organization , 20% said of  House Hold  and 10% said of  Others..

Question 4: What are your sales practices

Interpretation:

65% of total respondents said that they sales only in cash and 35% of the respondents said they practice both Cash and Hire sales.

Question 5: Which Capacity sold maximum (Consumer)?

Interpretation:

Most of the participants answer that 1.5 Ton  sold maximum i.e. 60%

Question 6: Which Capacity sold maximum (Corporate)?

Interpretation:

Most of the participants answer that 5.0  Ton  sold maximum i.e. 60%

Question 6: How many Air-Conditioner You have sold monthly

Interpretation:

35% of the respondent said that they sold monthly 1-30 units of  Air-Conditioners.

Question 7: Can you fully meet the customer demand

Interpretation:

50% of the manager answered that they can meet customer demand. Only 4% said they made it 100% and 20% said that they could not meet customer demand.

Question 8: Warranty Period?

Interpretation:

60% of respondent said that they provide 5 years warranty, 10% said 2 years and 20% said 1 year warranty.

Question 9: Who are your major competitors?

Interpretation:

20% of the respondent said their competitor is General and 25% of the respondent said their competitor is American Aire.

Question 10: Promotional Program at present ?

Interpretation:

50% of the respondents said they are providing cash discounts as a promotional activity. 25% is not providing any providing program. 20% is giving gifts and 5% is making advertisement

6.8  Open market Showrooms Questionnaire Analysis:

I have surveyed 20 Showrooms in the gray market i.e. Dhaka National Stadium market. Our Showroom choice was on random basis.

Here I am discussing the summary of showroom questionnaire analysis:

Question 1: Which type of customer coming here most?

Interprétation:

30% of the Showroom manager said that customers are of  Corporate Client  income class, 45% said that they are of Whole Sale Client  and 25% of them are of  Consumer Client.

Question 2: Reason for buying from here? Comparing ……..

Interpretation:

50% of the open market Showroom managers said that customers come here for flexibility. 25% said that customers come here for quality.

Question 3: Why the customers choose a particular brand?

Interpretation:

40% of the gray market showroom managers said that customers choose a particular brand for warranty.

Question 4: Why do you want to sell a particular brand?

Interpretation:

60% of the gray market showroom managers said that they want to sell a particular brand for making profit.

Question 5: Who is the market leader?

Interpretation:

35% of the gray market showroom managers said that General  is the market leader and 20% said that Carrier & Unitech  are the 2^nd  market leader.

Question 6: Direction of the market growth?

Interpretation:

45% of the gray market showroom managers said that the market is stable

Thus, from the above discussion and questionnaire analysis, we can understand the perceptions of corporate managers, showroom managers and open market showroom managers. Since the samples are not of big number, the result may not reflect the actual scenario.

7.1 Definition

Advertising is  any   kind  paid  from  of  impersonal  presentation  and  promotion  of  ideas , goods  or  services  by  an   identified   sponsor

7.2 Decisions in developing an advertising program 

There are five major decisions in developing an advertising program. These are:

(a)  Mission: What are the advertising objectives?

(b)  Money:    How much can be spent?

(c)  Message:  What message should be sent?

(d)  Media:  What media should be used?

(e)  Measurement: How should the results is evaluated?

7.3             Setting Advertising Objectiv

The object of advertisement can be set up according to the aim of information, persuading and reminding.

The three types of advertisement objective are:

(a)  Informative Advertisement:  Suitable for pioneering stage of a product category.

(b) Persuasive Advertisement:   It is done in competitive age. A company’s objective is to build a selective demand for a particular brand. Informs the features and facilities provided by the product, better than other competitors.

(c)  Reminder Advertisement:  It is highly important for mature product. Unitech should set the last two objectives of advertisement to attract mass people.

7.4             Advertisement Budget

After determining the advertisement objective, the company can proceed to establish its advertisement budget for each product. Although advertisement is treated as current expense, part of it is really an investment that builds up an intangible asset called Goodwill (Brand Quality). While determining budget of advertisement, following five specific factors should be considered:

(a)  Stage in the Product Life Cycle

(b)  Market share and Consumer Base

(c)  Competition and Clutter

(d)  Advertising Frequency

(e)  Product Substitutability

7.5             Advertising  Message

During approaching advertising message the following factors should be taken into consideration

(a)  Style

–         Lifestyle

–         Fantasy

–         Mood or Image

–         Musical

–         Personality Symbol

–         Technical Expertise

–         Scientific Evidence

–         Testimonial Evidence

(b) Tone

(a)  Words

(b) Format

All the above factors should deliver a cohesive image and message.

7.6             Media available for use

To the media where the advertisement is made can be of the following types:

February 3,2006 February 3,2006 February 3,2006

7.7             Evaluation Advertisement Effectiveness

The effectiveness of advertisement can be measured using the following research procedures.

(c)  Communication Effect Research

It seeks to determine whether an ad is communicating effectively. It is also called copy testing. It can be done before an ad is put into media and after it is printed or broadcast. This test can be done in three methods. The methods are:

(i)    Direct Rating Method

(ii) Portfolio Tests

(iii)                       Laboratory Tests

(d) Sales Effect Research

What percentage of awareness is increased or what percentage of sales volume is increased because of the advertisement campaign.

7.8             Advertisement Observation Analysis on Daily Newspaper

I have observed “Prothom Alo” advertisements of the month of February and March 2006. The data are summarized in the following manner:

From the above observation, we found that Unitech ( Unitech Products (BD) Ltd) is doing a very few number of Newspaper advertisements. On the other hand, the other companies are making mass advertisement campaign through newspaper.

7.9             Advertisement Observation Analysis on ATN Bangla

The above table reveals that the days observed does not have any Unitech Product

related advertisement.

7.10        Advertisement Observation Analysis on Outdoors

LG, Samsung, General are much more advance in Billboard advertisement. Their choice of location is excellent and the advertisements are more colorful and impressive than  Unitech.

Figure 20 : Logo of  Unitech

 CHAPTER – 8:  Competitive Pricing Analysis.

Chapter –8 :  Competitive Pricing Analysis.

8.1 Introduction

In this chapter, I will explore the current prices of different Air-Conditioners Types introduced by different companies. Then I will to make pricing trees to get the pricing trend followed by different competitors. As the data of market prices are collected 1 month ago, the price may not accurately reflect the current market price. But still some idea can be gathered looking at this analysis.

8.2 Price list of Major Competitors

Unitech Products (BD) Limited

Split Ceiling18000 BTUH (1.5 Ton)

61,000

724000 BTUH (2.0 Ton)

73,000

830000 BTUH (2.5 Ton)

89,000

936000 BTUH (3.0 Ton)

99,000

1048000 BTUH (4.0 Ton)

1,20,000

1160000 BTUH (5.0 Ton)

1,28,900

12

Cassette Type

36000 BTUH (3.0 Ton)

1,35,000

1348000 BTUH (4.0 Ton)

1,55,000

14Ducted Type36000 BTUH (3.0 Ton)

1,10,000

1548000 BTUH (4.0 Ton)

1,25,000

1660000 BTUH (5.0 Ton)

1,40,000

8.3 Pricing Tree Analysis among competitors

(a)  Pricing Tree of  1.5 Ton Split  Wall  Type Air-Conditioner.

  Unitech   FWC-18/CU-18  (TK. 59,000)   Carrier    SCT-18  ( TK.65,000 )

  TOSHIBA  SVW-18  (TK. 67,000 )   SAMSUNG   WCS-18  (TK. 55,000 )

Interpretation: The price of  1.5 Ton Split Wall Type Air-Conditioner  is 4^th highest and Carrier , General , Toshiba’s  price is higher than  Unitech  and Samsung ’s price is lower than Unitech .

Marketing Plan

Unitech Products (BD) Limited marketing plans, is that Unitech will recovery the  last three years loses within the next two years. The Organization plans, the products reputations will be build up in the competition market by awareness about the products benefit, Products Quality to the prospective customers.

All distinguish factors or functions are proving a trended operational system. Unitech Product (BD) Ltd successfully capable to fulfillment their target market by giving a better quality product to the customer that the customer desire/want.

Unitech  Products (BD) Limited, another plan is that the Unitech Air-Conditioners have to build up it’s market share and leading the market against others competitors.

Unitech is a local manufacturing products, some customers are not agree to purchase local products against, and some customers can not trusted the local products quality & duty that,s why Unitech organization’s target to assurance and build up the products / service quality to the customer from earlier  products/ Service (By Guarantee & Warranty).

Every products have a growth stage from the very beginning, Unitech Air-Conditioners now according the growth stage, the Organization’s plan to keep it reputation by service quality.

Finally, the Organization’s target for profit margin, with out  profit none company can’t viable in the market.

Major Findings

9.1 FINDINGS

(a) Findings: From the perspectives of Corporate Analysis

•  The market size of  Unitech Air-Conditioner  was 1,24,000 units in 2004
•  Non brand (Chinese) proportion of market share has increased
•  From 2003 to 2004 the market growth is 20%
•  Chinese brands are entering in the market rapidly
•  Corporations are targeting mostly the High Corporate &  High level income group
•  Brands are now becoming price sensitive
•  All the companies are providing Warranty, Guarantee, after sales service etc.
•  Customers are becoming  Decorative & Price sensitive
•  Major competitors have well-decorated showrooms and sales centre, General has strong dealer network.
•  In most cases credit related problems of Hire Sales arose for the companies.
•  Buyers are willing to pay for additional features
•  Major modifications will do nothing better for the renowned brands.
•  In most cases, companies are failing to provide prompt and quick services
•  Customers want full replacement of defective products
•  Advertisement through Electronic Media, Print Media Outdoor Billboard directly influence the sales of products
•  Major competitors of  Unitech disburse around 10% of their revenues for advertisement purpose.But Unitech  is using only 2%- 3% in this respect.
•  The market is showing a growing trend.
•  The major competitors of  Unitech  are  General, Carrier, American Aire, Emerald, Apollo,   Toshin,  and  Gree.
•  Companies are practicing Cash Sales in every case and Hire Sales in most cases.

(b) Findings: From the perspective of  Showroom Analysis

• Customers are demanding quality products and price is Their second considerations
• Most of the current customers are of middle class income group
• Corporate  Group & High level Service holders are the best customers
• The most common sold  Capacity  of  Air-Conditioners are  1.0 Ton, 1.5 Ton & 2.0 Ton Window / Split Type Air-Conditioners.
• Showrooms can not fully meet the customer demand every time
• Most of the companies providing 5 Years warranty period
• Cash discount , Gift items are used for promotional purpose

 (c) Findings: From the perspective of Gray market  Corporate Office &   Showroom Analysis

• All category of customers visits gray market showrooms
• Customers go to gray market for flexibility of choice and lower price
• As a Consumer Products 1-2 Ton Split / Window type Air-Conditioners are preferred by the customers of the city  and  3.0 – 5.0 Ton  Split Ceiling Type Air-Conditioners are  used by the industrial or  Corporate Office space.
• Customers values the Guarantee & warranty period most
• Quality is the first thing to become successful
• Market is stable according to the gray market Managers’ opinions

(d) Findings: From the perspective of Customer Analysis

•  20% of the customers are interested to buy General, 15% of the customers are interested to buy Carrier  and only  10%  are interested to buy  Unitech Air-Conditioners.
•  Most of the customers are Corporate Group & Highest income level.
•  56% of the consumers surveyed have no idea about the features of  Unitech Air-Conditioners.
•  The major considerations of consumers are quality and price
•  Most of the consumers said the price of  Unitech Air-Conditioners are  reasonable

(e) Findings: From the perspective of Advertising Mix

•  My observation says that in the Newspapers, General  – Esquire, Carrier –Harun Engineering, Toshin- Rangs  made colorful advertisement frequently.
•  In case of  Air-Conditioners  Advertisement  General, Carrier, Toshin and LG are making frequent advertisement in BTV and ATN. But Unitech  advertisement  not shown

(f) Other Findings:

• The Showrooms of Unitech are smaller than that of their competitors like Toshin- Rangs Electronics, Toshiba – Rangs Industries, Samsung – Electra International, General- Esquire Electronics, LG- Butter fly Marketing etc.

The number of own showroom of  Unitech Products (BD) Ltd. are very few. There are some places where  Unitech  has no dealer but other company set their dealers in that place

RECOMMENDATIONS

9.2 RECOMMENDATIONS

• Unitech  should provide 7 years Warranty of Compressor other companies are doing so
• The frequency of advertisement through Electronic media i.e. Air-Conditioners must be introduced as the other competitors are making mass advertisement campaign. It is important because many of the customers have no idea of the features of  Unitech Air-Conditioners.
• The Advertisement in Newspaper and Billboards are also to be increased and the advertisement in the Newspaper should be colorful. Black and white image does not reflect the proper impression. Billboards have to be placed in appropriate locations where people makes gathering and will watch the billboard easily.
• Unitech should disburse at least 5% of their revenues for advertisement purpose.
• Unitech must have to provide quick and prompt after sales services, otherwise bad impression may arise.
• Unitech should try to make the customers aware of their responsibility on handling their products in and appropriate manner, so the risk of damage will be lower and question of replacement or warranty will not rise then.
• Unitech  analyze the strategies of its major competitor’s i.e. General , Carrier, and American Aire in a regular manner so that it can tackle the market competition properly.
• Unitech Air-Conditioners machine include fresh Air System, Auto Start System which clear to the customer.
• Since the customers are demanding quality products, the quality of  Unitech products must be assured completely.
• Evaporator coil thickness, Fresh Air Louver facilities should be introduce to the customer.
• Unitech  should try to reach all the income group of the society.
• Corporate, Business man  & High level Service holders are the best customer currently. So it Unitech provides some further facilities to the theirs  that why the sales volume will increase more.
• The supply of  Products to the showrooms should be in regular basis. Sometimes customers are returning home not finding the product model they want.
• Unitech  should design a master plan of over taking its major competitors.
• The price of  1.5 Ton  Window / Split  is higher than its competitors. So it should be decreased.
• The front side of the showrooms should be neat and clean. No hawkers should be allowed to stay in front of the showrooms.
• Unitech have to develop the believeness of the Unitech Air-Conditioners service benefit to the customers
• More Cool, Low Noise, Low power Consump, Heavy duty full Compressor should be introduced so the customers will have enough flexibility to choice the product.
• After sales service, Customer benefit  should be ensure to the customer.
• Ø Finally, The Promote Officer, Corporate Officer & Maintenance staffs should be trained more efficiently. In some cases, they are not effective enough to approach to customers.

Recommendation

While working in Unitech Products (BD) Limited. I have uncovered some trebles in the company which must be solved to a certain extent. Some important suggestions to solve the problems are given below:

1. Window Type Air-Conditioners of Unitech Products (BD) Limited are too costly. The authority should minimize the Window type Air-Conditioners to get more customers.
2. The Price  of (1.0, 1.5 & 2.0 Ton Wall Type) of split type Air-Conditioners is very high and Indoor unit looking  is not lucrative. So, you should lessen the cost and develop the Products quality.
3. 3.0 TR, 4.0 TR, & 5.0 TR, Ceiling Type Air-Conditioners price are reasonable but  Indoor Sound Level is high, so, your should reduce the sound level.
4. Multi Machine are not available but some customer wants multi machine for site basis  and for low price, So, you should produce that machine.
5. There are no, display machine in the Corporate Office, where as majority customers wants to see the machine there, I, think, you should show the some machine  in your corporate office as for display.
6. Majority customers wants to gat credit facilities within 06 (Six) Month, but you not provide accordingly, so you, have provide that.
7. Some machine related, customer complain about swatting, I think, develop the machine quality and stop the swatting.
8. You should arrange available all kinds of Air-Conditioners as the customers need.
9. Maintenance service should be improved as per customer’s satisfaction.
10. HRM department is very important to conduct the organization’s  employee in a better way. You should create HRM department urgently.
11. You should implement your future plans very quickly for attract more customers

Conclusion

As such, from the above discussion it is clear that customer satisfaction survey is highly important for the Unitech Products (BD) Limited company. By doing this, the Organization can reveal the current performance in customer satisfaction scenario.

I can make sure the company that this survey report will be a milestone for the company to expend its service facilities to the customer. It will assist it to get the expected output that the company desires

From all the discussions, In fine we can say that, Air-Conditioners service has huge future prospect accordingly Unitech  Products have potential market in Bangladesh. If the company can update it’s facilities and other program as to the expected level. I am sure the Unitech Products (BD) Ltd will merge as a leading Air-Conditioners service company within short-times in Bangladesh.