Overall Marketing System of Bengal Plastic Industry Ltd

Scope of the Study

The study focuses on the sales & Marketing department in Bengal Plastic Industries Ltd. Its objectives, activities, shortcomings and plus Point of Plastics goods manufacturing. Day by day demand of Plastics goods increasing globally. That’s why there is a good scope of exploration of this business & this study will help the investor, manufacturer as well as learner.

            Methodology of Data Collection:

 I have used both primary and secondary data for preparing this report. But most of the data are collected from primary source. I observed various activities of Bengal Plastic Industries Ltd. My practical experience in Bengal Plastic Industries Ltd. was a great source of information.

Primary source of Data

  • Primary data is collected the different departments of Bengal Plastic Industries Ltd.
    • Day to day desk job (Informal conversation with the clients)

Secondary sources of Data

  • Prospectus of Bengal Plastic Industries Ltd.
  • Published journal and articles on plastics industries market in Bangladesh.
  • Some of the data are collected from internet and newspaper.

            Limitation of the study

Lack of time

Lack of time one of the major limitation of the study was limited time. The nine allocation of the study was inadequate. Because in this short time one inter student had to both attend the office and also do the survey. For the scarcity of time I could not communicate largely with concern persons and authority, which would be very helpful for preparing, the report could be made much more comprehensive.

Administrative secrecy

Another major problem every private company maintains some secrecy of its all import and export activities. The authority kept much information as secrete.

Unwilling to response

While communicating with responsive persons most of this was very busy in their daily work at that time. So they were not eager to answer my question and should me many causes to avoid me.

Lack of adequate information

There were lacks of necessary information what I was needed. That is primary and secondary data.

Company Profile

 Name                                                   Bengal Group of Industries

Logo

Slogan                                                 Where Quality Matters

Established In                                                 1969

Geographical Location                        Dhaka

Industry                                              Plastic Manufacturer

Major Units                                         Flexible Packaging

Mode of Business                               Business to Business

Business Based                                   Manufacturer and Exporters

Major Buyer                                        Wal-Mart, K-Mart etc

History

  • 1969: Started operation with a single hand operated plastic injection molding machine in a rented premise in the old Dhaka by Morshed Alam.
  • 1971: After independence of Bangladesh in 1971, started full pledged production of Jute & Textile Spare Parts, which were used to import from India and Europe.
  • 1978: Manufactured household utensils such as plastic Jug, plate and other plastic domestic wares.
  • 1980: Bengal Adhesive and Chemical Products manufactures adhesives for various industrial usages such as wooden furniture industry, shoe industry, lather industry and others.
  • 1981: Registered Bengal Plastic Industries Ltd. as limited company with the Joint Stock Company, Dhaka, Bangladesh.
  • 1991: Introduced Plastic Apparel Hangers in Bangladesh for 100% export oriented garment industries for exporting to the U.S.A. and the EU.
  • 1993: Approved by Coca-Cola Export Corporation, Atlanta, Georgia, USA to manufacture Molded Bottle Crates for Coca-Cola for the territory of Bangladesh tapes, and strapping bands. The plant is completed on April 2000.
  • 2000: Acquired a Chinese plastic factory (Build-up Plastics BD Ltd.) with 12 injection molding machines in Dhaka Export Processing Zone, Bangladesh for a price of US $2 million, later named as Bengal Build-up BD Ltd. 1994: Became the licensee manufacturer of Batts Inc., Michigan, USA, which later acquired by A&E Products Group LP- a TYCO International Limited Company.
  • A&E Products Group is the largest apparel hanger manufacturer in the world with more than 50 distribution centers in over 28 countries.
  • 1995: Bengal Overseas Corporation Ltd., – imports and exports various products to/from Bangladesh. It is now successfully representing leading global industrial brands in Bangladesh, such as Rinnai Japan, Cornelious UK, Crown Cork & Seal USA, Videojet USA, and Linnex USA.
  • 1998: Became the licensee of Scheoller Wavin System, Germany- the leading manufacturer and designer of Bottle Crates for Coca-Cola, Pepsi-Cola and other major soft drinks with licensees and production partners in more than 50 countries in the world.
  • Founder Chairman- Morshed Alam awarded CIP (Commercially Important Person) by the Government of Bangladesh (GOB) for our contribution in the economy.
  • 1999: Grew up as the largest plastic processing plant in Bangladesh with 72 Injection Molding Machines capacity from 250 tons to 1600 tons consuming more than 250 tons of raw materials each day.
  • Initiated an expansion plan of US $5 million for installing the single largest production facility at Zerabo, Savar, Dhaka – 15 km away from the Dhaka International Airport with 20 acres of land area and 120,000 square feet of production area along with 36 units of Injection Molding Machines, 4 film extruder machines, a set of printing and converting machines for manufacturing garment hangers, poly bags, packaging.
  • Mr. Jashim Uddin, Director of the Company awarded CIP (Commercially Important Person) by the Government of Bangladesh (GOB).
  • 2001: Power Utility Bangladesh Ltd. – an energy company to contribute in the power sector to meet the country’s fastest growing demand for electricity by installing power plants at strategic locations in Bangladesh.
  • 2002: Bengal Poly & Paper Sack Ltd. – PP Woven Sacks manufacturing industry at Tongi, Gazipur, Bangladesh with a capacity to produce 200,000 woven sacks of different types. The company is meeting the demand of cement industries, fertilizer industries, and poultry/fish feed industries by supplying quality woven sacks.
  • Bengal Plastic Industries Ltd. received ISO 9001:2000 certification for quality management system and ISO 14001 certification for environmental system. Bengal Plastic is the only company in Bangladesh having both the certifications.
  • 2003: Added Molded Furniture in the production fleet by manufacturing 12 different types of plastic chairs, 4 types of plastic tables, and other large molded products.
  • Bengal Corrugated Carton Industries Ltd.- a packaging unit to produce corrugated cartons to supply to the entire Group companies with a capacity of 50,000 pieces of cartons of different sizes each day. Now, it is fulfilling all the demand of our entire sister companies.
  • 2004: Acquired Rahmania Biscuits & Bread Industries Ltd.A biscuits making factory located at Noakhali, Bangladesh. The plant is capable of making soft biscuits with a capacity of 500 kg per hour. Later named as Romania Food & Beverage Ltd.
    Bengal Agro Estate Ltd. aims to process fruit and vegetables to meet the country’s growing demand and to export to other countries. Recently, the company allotted 100 acres of land in Gazipur from the Government of Bangladesh (GOB) to grow and process different types of vegetables and fruits.
  • Bengal Concept & Holdings Ltd.- a development and construction company established to develop large-scale construction projects mainly high raised buildings, shopping malls, super markets, residential apartments and plots. Currently it took a project named Golden Bengal a 20-storied mixed-type construction on a 1.25 acres of land in the posh area of Dhaka City with a cost of US $25 millions.
  • Hamilton Metal Corporation Ltd.- manufacturer of metal hooks and clips for apparel hangers of other Group companies. The plant is installed with four bending and forming machines with a fully automatic electroplating line. Installed capacity to produce 500,000 pieces of metal hooks and 800,000 pieces of metal clips per day.
  • 2005 : Acquired Polycord Ltd.- a flexible packaging unit at Savar, Dhaka producing various packaging materials for food & beverage, pharmaceutical, detergent, and others industries.
  • Bengal Windsor Thermoplastics Ltd. – an injection-molding unit at Dhaka Export Processing Zone received ISO 9001:2000 certification for quality management system (QMS).
  • 2006: Bengal Concept & Holdings Ltd. initiated 20-storied ‘Bengal Tower’ at Motijheel- the financial hub in Dhaka City with a land area of 12,000 square feet and total caste area of 184,000 square feet including three basements car parking.
  • Bengal’- Received Superbrands Award- Superbrands is an independent arbiter of branding. It promotes the discipline of branding and pays tributes to exceptional brands around the world. Only those brands that score highly on an average, qualify to be dominated. Superbrands programs now operate in more then 60 countries.
  • Romania Food & Beverage received ISO 22000 certification for food safety management system. ISO 22000:2005 specifies requirements for a food safety management system where an organization in the food chain needs to demonstrate its ability to control food safety hazards in order to ensure that food is safe at the time of human consumption.
  • 2011: Bengal Plastic Pipes Ltd- to produce various sizes uPVC & HDPE pipes and uPVC door and door profile. Starting commercial operation in April 2011.

Mission & Goals

Our mission is to strive continuously to exceed customers’ expectations for achieving unlimited excellence by providing greater value to our customers than our competitors.

Our goal is to be the best company in our industry and it is our policy to deliver total quality goods and services to all of our customers. We accomplish this by adopting a set of quality policy throughout the organization.

Commitments

Chairman’s Message

In 1969, a history of creation and challenge took its first step with the incorporation of Bengal Plastic Industries. Over the years, Bengal Plastic has made a remarkable advancement with a progressive spirit of challenge by producing import-substituting products that have been contributing a great deal in foreign currency savings.

Riding the wheels of difficulty over the past several years, Bengal Group has taken a firm root, growing into, what it is today. All achievements are the rewards for the sweat, shed by a highly motivated and loyal team of professional, working round-the-clock, hand-in-hand at Bengal Group of Industries. It’s only the Bengal Group family members who have made utmost efforts to overcome adverse environments and hardship to ensure our customers’ satisfaction.

The company’s positive business philosophy is to fulfill and discharge its prime responsibility to the community and environment, through the development of its members’ creativity and self-innovation.

Based on such proud tradition, built around spirit, sweat and drive, the Bengal Group of Industries is preparing itself to make a bold jump towards opening of a new era of creativity to meet the challenges of the new millennium.

Environment

Bengal Group is committed to environmental excellence, instilling high environmental values in all employees and maintaining good corporate citizenship in the communities in which we operate. Bengal Group’s all units are responsible for complying with environmental laws and regulations applicable to their facilities and operating in a manner that conserves natural resources and protects the environment.

Community

Bengal Group’s commitment to acting with Integrity, Excellence, Teamwork and Accountability contributes to our being a good citizen and socially responsible in the communities in which we reside. We strive to enhance the well being of our communities by respecting the diversity of people and cultures.

People & Value

 Our employees play a vital role in ensuring the success of our daily business activities. Every employee, manager and director throughout the organization is expected to adhere to our core values of Integrity, Teamwork, Excellence and Accountability. These values are also the basis on which we build the trust and integrity that will allow our businesses to continue to succeed.

Corporate Philosophy

 Bengal Plastic is a centralized and formalized organization. It believes in 1969, a history of creation and challenge took its first step with the incorporation of Bengal Plastic Industries. Over the years, Bengal Plastic has made a remarkable advancement with a progressive spirit of challenge by producing import-substituting products that have been contributing a great deal in foreign currency savings.

Riding the wheels of difficulty over the past several years, Bengal Group has taken a firm root, growing into, what it is today. All achievements are the rewards for the sweat, shed by a highly motivated and loyal team of professional, working round-the-clock, hand-in-hand at Bengal Group of Industries. It’s only the Bengal Group family members who have made utmost efforts to overcome adverse environments and hardship to ensure our customers’ satisfaction.

The company’s positive business philosophy is to fulfill and discharge its prime responsibility to the community and environment, through the development of its members’ creativity and self-innovation.

Based on such proud tradition, built around spirit, sweat and drive, the Bengal Group of Industries is preparing itself to make a bold jump towards opening of a new era of creativity to meet the challenges of the new millennium.

Bengal Group is committed to environmental excellence, instilling high environmental values in all employees and maintaining good corporate citizenship in the communities in which we operate. Bengal Group’s all units are responsible for complying with environmental laws and regulations applicable to their facilities and operating in a manner that conserves natural resources and protects the environment.

Bengal Group’s commitment to acting with Integrity, Excellence, Teamwork and Accountability contributes to our being a good citizen and socially responsible in the communities in which we reside. We strive to enhance the well being of our communities by respecting the diversity of people and cultures.

Our employees play a vital role in ensuring the success of our daily business activities. Every employee, manager and director throughout the organization is expected to adhere to our core values of Integrity, Teamwork, Excellence and Accountability. These values are also the basis on which we build the trust and integrity that will allow our businesses to continue to succeed.

Bengal Plastic is a centralized and formalized organization. It believes in team work.

Code of Business Principle

 Bengal Plastic is an equal opportunity employer and safe guards the

  • Rights of gender
  • Religion
  • Race

Encourage Employees on the basis of:

  • Education
  • Experience
  • Professionalism

The Company does not discriminate on the basis of:

  • Color
  • Religion
  • Race
  • Ethnic Values
  • Gender
  • Cost

Company’s customers

 Bengal Plastic Industry has customers both in the country and outside of the country. They are mainly the RMG Accessories manufacturers & suppliers.

Business

  • Bengal Plastic Industries Ltd
  • Bengal Polymer Wares Ltd
  • Bengal Plastic Pipes Ltd
  • Bengal Poly & Paper Sack Ltd
  • Windsor Thermoplastics Ltd
  • Bengal Adhesives & Chemical Prod. Ltd
  • Bengal Corrugated Carton Industries Ltd.
  • Bengal Overseas Corporation Ltd
  • Bengal Concept & Holdings Ltd
  • Romania Food & Beverage Ltd
  • Hamilton Metal Corp. Ltd
  • Power Utility Bangladesh Ltd

Products

  • Garment Hangers
  • Plastic House ware
  • Plastic container
  • Plastic furniture
  • Plastic pallets
  • Stationary
  • Packaging tape
  • Corrugated carton
  • Woven bags
  • Flexible packaging
  • Food & beverage
  • Mattress foam and adhesive
  • Upvc pipes and fittings
  • Upvc door & door profile

Share Holders

  • Mercantile Bank Ltd
  • National Life Insurance Co. Ltd National Finance Ltd
  • Desh General Insurance Co. Ltd
  • United Hospital Limited
  • Peoples University

When a company or a manufacturer produces goods or services, it has the immediate responsibility to distribute and sell them to the industrial and institutional customers. The industrial customers generally constitute of wholesalers, retailers, manufacturers, educational institutions, governments, hospitals, public utilities, and other formal organizations. There are various intermediaries who are involved in a distribution and selling process helping the manufacturers to make their goods reach the end users. Thus, a network or channel that helps to flow the goods from the producer to the consumer through a set of interdependent organizations (intermediaries) is called distribution channel or trade channel or marketing channel. Channels are the tools used by management to move the goods from the place of production to the place of consumption. In the progression, the title of goods gets transferred from sellers to buyers.

The nature of industrial distribution channel

 

The nature of industrial distribution channel is quite different from the consumer goods distribution channel. The intermediaries stock the products they are distributing thereby assuming part of the burden of marketing the product and maintaining close contact with customers. There are various factors that affect the distribution of industrial goods.

Geographical Distribution: The industrial distributors are concentrated highly in the industrial markets they serve and certain other places that have large number of industries like large towns and cities.

Size: Unlike consumer markets, the industrial markets tend to have fewer channels of distribution. Even the industrial channel is shorter in size as organizational buyers expect immediate product availability, technical expertise and prompt after-sales service. This indirectly demands investment in training and physical facilities for the industrial organizations.

Intermediary characters: The intermediaries involved in industrial marketing are technically qualified who maintain very close relationship with industrial organizations. Industrial manufacturers tend to depend more heavily on each member of the channel and may do more to support that channel member. Industrial distributors, brokers and agents are some types of intermediaries used by industrial marketers to reach customers.

Mixed channels: A combination of direct and indirect channels is used by some industrial marketers to cater to different market segments or when they have some resource constraints. To cater to large-volume customers, industrial firms generally use their own sales force, and to cover small scale organizations, they use independent distributors. In case of large geographical territories, due to resource constraints they use their agents called as manufacturer’s representatives‘.

Industrial Marketing Channel (with various levels)

  • Zero level – Manufacturer to Customer
  • One level – Single intermediary involved
  • Two levels – Two intermediaries are involved in the channel network

Structure of Industrial Channel

There are different ways in which an industrial channel can be structured. Some of the industrial channel structures are direct while some are indirect.

Direct Channel Structures:

In direct channel structures, the entire task necessary to create sales and to deliver the products to industrial customers is performed by the manufacturers themselves. The various tasks involved in this process are contacting the potential customers, communicating and negotiating with them, financing and selling, storing the products, transportation and providing related services. This approach is viable to the company only if –

  • The buying process is lengthy,
  • The selling includes extensive technical and commercial negotiations at various levels, including top management,
  •  The industrial buyer insists on buying directly from the manufacturer, and
  • The value of each transaction is large.

Indirect Channel Structures:

In indirect channel structures, the various tasks discussed above is shared both by the manufacturer and the intermediaries. An indirect distribution approach is appropriate when –

  • The industrial buyers are widely dispersed,
  • The value of transaction or sales are low,
  •  The industrial buyers purchase many product items in one transaction, and
  • The manufacturer has limited resources.

Some of the examples of indirect channel are manufacturer‘s representatives (or agents), brokers, commission merchants, commission merchants, industrial dealers or distributors, value-added resellers, jobbers, drop shippers. Indirect distribution is used in industrial chemicals, construction materials, electrical wiring materials and supplies, general industrial machinery, iron and steel products, etc.,

            Types of Industrial Middlemen

 The industrial middlemen are the intermediaries used by the manufacturers to deliver their products to the end users. They are categorized based on the number and the extent to which they specialize in the performance of certain functions. Different types of industrial middlemen are manufacturer’s representatives’ (also called agents), brokers, commission merchants, industrial dealers or distributors, value-added resellers (VARs), jobbers, drop shipper.

Manufacturers’ Representatives:

The manufacturer‘s representatives (sales agents or manufacturer’s agents) are very commonly seen middlemen who secure orders from existing and potential customers. They provide relevant information on market conditions to the manufacturers as well as customers. They are paid a certain amount of pre-specified commission on sales and other tasks performed to make the sales. Generally small and medium-sized industrial firms use the services of agents in territories with low market potential. Agents are cost-effective for them because commission is paid as per the orders generated. The agents particularly have good knowledge about the product, their target market apart from excellent contacts with the buyers.

Brokers: Brokers are the middlemen who represent either the buyer or the seller. They help the manufacturer to find potential buyers and vice versa and take the commission when sales process is complete.

Commission Merchants: They deal with large quantities of items like raw materials. They are paid commission by the manufacturers when they perform certain functions. Their general functions include getting the raw materials inspected, negotiating during sales and finally close the sales. They receive the commission based on the net sales value as is compensated to agents and brokers.

Industrial Distributors: Industrial Distributors are the important and most preferred middlemen that are typically small and independent serving narrow geographic markets. They perform functions like buying, transportation and warehousing, promotion and selling, and offering credit. Because of such varied functions, they are sometimes referred to as full function intermediaries. They are offered trade discounts on the price list of the products as their compensation.

Jobbers: They get orders from the customers and pass them to the manufacturers. Though they do not handle the goods physically in any form, they take the title to the products they sell. Jobbers specialize in marketing bulky products like coal, iron ore etc, that are transported in huge quantities and do not require assorting or grouping of products.

            The Functions and Responsibilities of Distributors

 Nothing prevents a producer from meeting his customers directly and effecting sales. If he does not use this privilege, he has to borrow the services of different middlemen who act as a vital link in the distribution network to pass on the production to the actual users. A full function intermediary or the distributor performs all or most of the distribution functions like –

  • Purchasing products from the producer to resell back to the industrial buyers
  • Promoting the product through ads, negotiating by offering discounts and securing orders from customers
  •  Extending credit to customers while reselling the products
  • Storing the products safely at warehouses and ensuring its availability to the customers
  •  Inspecting and testing the product, and assigning distinct quality grades. (Various grades of products are sold to different end users at different prices)
  •  Transporting the product from warehouses to customers‘place
  • Providing information on product features, price etc., to the customers and competition, market demand etc., to the manufacturers.
  •  Providing pre-sales and after-sales services to the customers through their technical service personnel.

As the intermediaries perform all or most of the above functions, the industrial marketers find it more suitable to use their services rather than doing all the things by themselves. But, they should analyze certain functions that are very important for them but cannot be performed effectively due to reasons like cost effectiveness or service inefficiency. Such tasks should be outsourced to those intermediaries who have the expertise to perform them effectively and efficiently.

            Developing and Managing a Distribution Strategy

  • A distribution strategy defines how you are going to create and satisfy demand for your products.
  • A distribution strategy defines how you are going to move products from point of creation to points of consumption in an efficient and cost-effective manner.
  • A distribution strategy also defines how you are going to develop and maintain customer loyalty.
  • But first and foremost, a distribution strategy must be in sync with how customers want to shop and buy.
  • Today’s customers shop and buy very differently than ever before.
  • Their access to high-quality information via the internet, combined with their heightened price sensitivity, has created a customer that is more sophisticated, better informed and often times, more adversarial than customers of the past.
  • This new breed of customer no longer plays by the rules of traditional distribution channels. Despite this fact, manufacturers and distributors continue to support outdated distribution strategies that actually make it hard for customers to shop for and purchase their products.

Why the growing importance of marketing channels?

  • The explosion of information technology and E-commerce
  • A greater difficulty in gaining a sustainable competitive advantage
  • The growing power of distributors, especially retailers in marketing channels
  • The need to reduce distribution costs

The change of focus to channel strategy

  • Creates competitive advantage with long-term viability.
  • Builds strong relationships between manufacturers and channel members
  • Based on trust, confidence and people power

Reasons of preference of Industrial Customers than  Distributors

 There are many reasons why industrial customers buy from distributors. Some of the common reasons include –

Delivery: Industrial customers particularly the small scale manufacturers find the distributors to be more reliable who delivers them goods in less time and at a lesser price. This helps them reduce their inventory level as well as the inventory carrying cost.

Information: Distributors provide relevant information on various products like technical information, price, and availability, quality that helps the customer select and buy the best.

Variety: The distributor stocks variety of products at one place that caters to all the requirements of the industrial buyers.

Credit: The distributor offers credit facility to his reputed and credible buyers whenever they purchase from him. Besides above, it is the relationship and best customer service that matters the most to the customers to prefers a particular distributor.

Manufacturer and Distributor – Partners in progress

Though there would be lot of conflicts and disputes existing between the manufacturer and the distributor, both need to maintain good relationship that help them to be partners in progress. The manufacturer should provide the distributor with all the assistance that is economically feasible to enhance the distributor‘s performance. The assistance from the manufacturer could be in the form of –

  • Providing increased margins or financial help that stimulates the distributor to increase inventory levels
  • Improving distributor‘s performance through deploying its sales force where supplemental technical support can be provided or joint sales calls can be done
  • Imparting technical and general training to the distributor personnel to improve their effectiveness and strengthen the bond

Simultaneously, the distributors should also execute all their basic functions and meet their responsibilities (that have been discussed earlier) in a systematic way that would help the manufacturer perform better. In addition, they should recognize the significant trends unfolding in the industry by understanding the market dynamics and forecasting its future directions. Eventually, the efforts of both the ‘partners in progress’ should be to grow together that can happen only through mutual coordination and understanding each other in a better way.

Summary of industrial distribution

There are various channels that are involved in a distribution system that help the manufacturer to deliver the goods to the end-users. Industrial distribution is quite distinct compared to the channels used for consumer goods or services. It carries out the distribution through the direct channel structure that involves the company‘s sales force and the direct marketing through various means. The other way is the indirect channel structure where different kinds of intermediaries are involved like the agents, distributors, brokers, Commission Merchants; Value added Resellers, jobbers, drop shippers.

There are various functions these intermediaries perform that vary from buying the product, promoting and selling, financing or giving credit to buyers, warehousing, grading, transporting, providing information to customers and suppliers, providing technical support. Most of the above services are performed by the distributors because of which they are called as full function intermediaries. The distributors are preferred by the industrial customers as they find them more dependable, offer varied products, give liberal credit apart from providing the requisite information about the product, price and other related items.

Finally, the manufacturer and the distributors should be partners in progress who has to understand each other and solve any conflicts arising between them.

Distribution Channels of Bengal Plastics

A company’s channel decisions directly affect every other marketing decision. Place decisions, for example, affect pricing. Distribution decisions can sometimes give a product a distinct position in the market. The choice of retailers and other intermediaries is strongly tied to the product itself. Manufacturers select mass merchandisers to sell mid-price-range products while they distribute top-of-the-line products through high-end department and specialty stores. The firm’s sales force and communications decisions depend on how much persuasion, training, motivation, and support its channel partners need. Whether a company develops or acquires certain new products may depend on how well those products fit the capabilities of its channel members.

Basically the Bengal group of industries they provides their product in customized way.. In the polyethylene sector they mainly provide their poly to garments industries. Sometimes they also provide for the food industries. Their distribution system is perfectly well. They conduct directly to the customer by the help of their sales executive officer. In this case they can minimize the price of the product which is really better for the customer. They set the fixed price it also goodwill for the company. If they conduct any intermediary in that time the price will be vary customer to customer because the intermediary wants get more profit and it will be great disadvantage for the company and the company loss their reputation from the market.

The Nature of Industrial Distribution Channel

 

The nature of distribution channel is totally different from others company. The directly distribute their product to their customer. There is no intermediary as a result they can save their time, money and other consumption. There are some factors that affect the distribution such as geographical distribution, size, intermediary characters, and mixed channels.

Geographical Distribution: The Bengal plastics, they are industrial distributor so they have to serve their business where has the large industrial market. They mainly distribute their product within the Dhaka city and its related places.

Intermediary characters:  There is no intermediary level.

Mixed channels: There is no intermediary level.

Industrial Marketing Channel (with various levels)

Zero level – Manufacturer to Customer

The Structure of Industrial Channel

 There are different ways in which an industrial channel can be structured. Some of the industrial channel structures are direct while some are indirect.

Direct Channel Structures

The Bengal plastics they follow the direct approach the entire task necessary to create sales and to deliver the products to industrial customers is performed by the manufacturers themselves. The various tasks involved in this process are contacting the potential customers, communicating and negotiating with them, financing and selling, storing the products, transportation and providing related services. This approach is viable to the company only if –

  • The buying process is lengthy,
  • The selling includes extensive technical and commercial negotiations at various levels, including top management,
  •  The industrial buyer insists on buying directly from the manufacturer, and
  • The value of each transaction is large.

The Functions and Responsibilities of Distributors of Bengal

  • Purchasing  the raw materials  from the outside of the country and produce the product and  resell back to the industrial buyers
  • Promoting the product through ads, negotiating by offering discounts and securing orders from customers
  •  Extending credits to customers while reselling the products and when create the good relationship with the customers.
  • Storing the products safely at warehouses and ensuring its availability to the customers
  •  Inspecting and testing the product, and assigning distinct quality grades. (Various grades of products are sold to different end users at different prices)
  • Providing information on product features, price etc., to the customers and competition, market demand etc., to the manufacturers.
  •  Providing pre-sales and after-sales services to the customers through their technical service personnel.

Developing and Managing a Distribution Strategy of Bengal

  •  They always try to create and satisfy demand of their products to the desired customers.
  • Their distribution strategy indicates to move products from point of creation to points of consumption in an efficient and cost-effective manner.
  • They always try to develop and maintain customer loyalty.
  • Their access to high-quality information via the internet, combined with their heightened price sensitivity, has created a customer that is more sophisticated, better informed and often times, more adversarial than customers of the past.

B 2 B business of Bengal group

 B2B marketing also has also found an outlet on the internet as many enterprises have established their operations online. Bengal plastics that are involved in import and export have found the internet very useful conducting their businesses. This is because of some comparative advantages that the internet offers them. These include:

  • The enhancement of the supply chain management system’s operations
  • Enhances the product content and internal messaging system
  • Enhances the Return on Investment (ROI)

Reasons of preference of Industrial Customers than distributor

There are many reasons why industrial customers buy from distributors. Some of the common reasons include –

Delivery: Industrial customers particularly the small scale manufacturers find the distributors to be more reliable who delivers them goods in less time and at a lesser price. This helps them reduce their inventory level as well as the inventory carrying cost.

Information: Distributors provide relevant information on various products like technical information, price, and availability, quality that helps the customer select and buy the best.

Variety: The distributor stocks variety of products at one place that caters to all the requirements of the industrial buyers.

Credit: The distributor offers credit facility to his reputed and credible buyers whenever they purchase from him. Besides above, it is the relationship and best customer service that matters the most to the customers to prefers a particular distributor.

  • Bengal Plastics have advanced machineries that are used for their production and high standard & quality products are produced according to customer choice and order.
  • Bengal Plastic is one of the leading   organization in the plastic industry, therefore they offer low price on their products. So the Bengal Plastic has the strong relation with the local garment manufacturers as well as international companies and all business depends upon the relationship.
  • It’s only possible because both the parties well understand each other needs. Bengal plastic rules and regulations and policies of trade and meets the need of their customers.
  • Bengal plastic manufactures products totally on high grade HYPLAS (Taiwan) machines, premium brand in this industry so it’s have competitive advantage from the quality and cost.
  • Bengal plastic belief in building a long term relationship with employees that is enriching and beneficial to both sides.
  • Bengal Plastic has the systematized production unit.  All the process of manufacturing raw material of plastic follows the lean system.  So it reduces both time and cost of manufacturing finished products.
  • In Bengal Plastic all the production system is based on the machine. Bengal Plastic invest huge amount on research and development and acquiring the machinery. Now all the productions are based on mechanized system.
  • The employees of Bengal Plastic are loyal with the organization especially on executive seats.  They work with their full concentration and accept responsibility of their work.  It’s all because of strong management.
  • Company is working with the limited staff on executive seats which providing their services to company from many years and they don’t have new qualified staff which fill the seats of existing staff whenever they leave.
  • There is a centralize decision making due to which there is delays in taking decisions which required immediate response.
  • HRM department is not performing its duties as per the need of the organization due to lack of HR professional.  The duty of HR department is not only hiring and firing the employees, but they should arrange training programs, different entertainment events and skill deployment to employees, become the loyal with the organization.
  • Bengal Plastic has great grip on local market but at the same time it tries to focus on the global market and wants to grip on global market as well as at the local market.  So in this way it tries to produce their products according to international standard.
  • Bengal Plastic is very lucky that there is no much competition in this field and the business which this company runs is no wide and there are only 1 or 2 major competitors in the market. So that company can easily expand its business and earn more and more profit from the market.
  • Growing global technological advancement is the biggest threat for the company and also company doesnot have any brand name if they market their products into the market so there will be problem that Bengal Plastic products don’t have any market value because it don’t have its brand name and also it is important for company that company advertise its products globally which is very helpful for the company.
  • The promotional activity is the important part of a company that creates awareness about the products to customers mind but there is no promotional activity in Bengal group.
  • There is no other products that can be used as a substitute for the current products. So the threat from the other industry is very low.
  • There are not many competitors in the local level and BPIL manufacturers’ high quality products. So the competition is very high among the competitors.

Recommendation

As Bengal Plastic Industries Ltd. is a commercial organization in our country and wanted to make a surplus over their business, they needs to take some initial steps to solve their existing problem. Though the officials of the company were gave positive information about the company in most of the cases. Bur I think they need to immediately focus on their problematic areas. According to my point of view I point out some significant recommendation in their perspective. I believe that if they can take initial step to solve that problem, I hope that they will be able to remove their problem. Some of the major recommendations are given below-

  • The company needs to maintain all the rules and regulation of import activities properly.
  •  Buyer is the king of poly business. So that the company’s needed to continue a better a relationship with all of their existing buyer and tries extend this relationship with other new buyer.
  • The information section of the company is not strong. Because most of the officials of the company agreed in this regard. For this reason officer of the company can not effectively and timely communicate with different organization.
  •  The company needs to hire more skilled and experienced sales officers and commercial employee to effectively deal with buyer and properly maintain import & export activities.
  • HRM department is required to hire efficient employees according to the qualification and performance not as reference basses.
  • Company should start E business.
  • Company working with the limited brands so it have to increase its marketing and make new more customers because company is fully depended on the existing customer and whenever they leave company have no choice.
  • Bengal Plastic should increase employee’s commitment by encouraging and rewarding them that can lead toward the high performance.
  • Keeping high quality is not only the responsibility of quality department, but it should be embedded in each employees minds. Every employee should take it as personal responsibility.
  • There should be clearly written slandered about the demand of buyer’s requirements about the production.
  • Company should increase the salary package of employees to become more loyal.
  • Company should do local and international marketing.

Conclusion

The plastics business is the potential source of export earning of Bangladesh. The beginning of plastics sector was not so good in our country. At first Bengal Plastic Industries Ltd. was starting its business in a small form. Its import and export activities were limited within some countries. Recently, Bengal Plastic Industries Ltd. raises the boundary of their business and tries to handle its import and export activities. To conduct import and export activities, the company directly related to some other organization like bank, EPZ, BGMEA etc and tries to maintain all the formalities of import and export activities from those organization.

This industry brings so many possibilities for the people of Bangladesh. Though it has all the facilities, working environment, labor, skill and many other supporting variables but this sector did not develop in our country expectedly. There are some problems in Bengal Plastic Industries Ltd. to develop its business more like illegal practice in different governmental offices, lack of better transportation system and lack of modern working system of different organization related with import and export activities of Bengal Plastic Industries Ltd. and many more.

Actually governmental intervention in this sector is very much essential. If government create better opportunities for the owner of the plastics company in case of import and export activities like faster Customs activities, install modern technology, change the old Procedure of official activities etc then it will better for import and export activities of Bengal Plastic Industries Ltd. Beside this the company needs to ensure their effectiveness in all the activities to perform better in this sector.

Reference

   Hawaldar, K. Krishna (2002), “Industrial Marketing” (1st ed.), TATA McGraw-Hill Publishing Company Limited, New Delhi.

  Richard M.Hiii, Ralph S.Alexander & James S.Cross (2003), “Industrial Marketing” (4th ed.), All India Traveller Book Seller Publishers and Distributors, Delhi

  Robert R.Reeder, Edward G.Brierty & Betty H.Reeder (2001), “Industrial Marketing” , 2nd Edition, Prentice-Hall of India Private Limited, New Delhi

  Peter M. Chisnall, “Strategic Industrial Marketing’’, 1st Edition, Prentice-Hall International, 1985.

  Woodruffe, Helen (2000), “Service Marketing: Operation, Management and Strategy”,

  2nd Edition, Macmillan India Limited

  Anderson, James C., and Narus, James A.  “Business Market Management: Understanding, Creating, and Delivering Value”, 2nd Edition, 2004, Pearson Education, Inc.

  Dwyer, F. Robert, Tanner, John F. (2006) “Business Marketing: Connecting Strategy, Relationships, and Learning”, 3rd Edition, McGraw-Hill/Irwin

  Greco, John A. Jr., (2005) “Past indicates promising future for b-to-b direct; BtoB magazine, June 13, 2005

  Hutt, Michael D., Speh, Thomas W. (2001) Business Marketing Management: A Strategic View of Industrial and Organizational Markets, 7th Edition, Harcourt Inc.

  Industrial Marketing, Richard M Hill, Ralph S Alexander and James S Cross, 4th Edition, AITBS Publishers and Distributors

  Industrial Marketing, Krishna K Havaldar, 2nd Edition, Tata McGraw Hill

  Industrial Marketing Management, Michael D Hutt and Thomas W Speh, The Dryden Press

  Article Source: http://EzineArticles.com/5440771

  Article Source: http://EzineArticles.com/407951

  www.bengalgroup.com.bd

  www.bengal.com.bd

Appendix

Impact of Experience on My Career

As I am a student of Marketing, so my experience as an internee in this company will help me in future when I get the full time job as a professional.  I have learned about,

  • How to create a good relationship with customers.
  • How to create a long term relationship with the companies.
  • How to attract new customers.
  • In which way you advertise your products and in which way customers want to accept the products.
  • How to prepare journal voucher (JV), balance payment voucher (BPV), balance receipt voucher (BRV), cash receipt voucher (CRV) cash payment voucher (CPV).
  • How to let people know about your product/ services.
  • How to retain customers by giving those superior products quality and value added services.
  • Analyzing competitors and markets that any one doesn’t copy your product.
  • Product improvement and innovation, reducing customer’s complains and choosing the right way to attract customers.
  • Through this internship experience of working into an organization helps me to understand rules and regulations, duties during my career.

Flexibility in work environment matters a lot; I have learnt it while I was doing my internship in Bengal Plastic Industry. The office environment always remains intensive and the individual have to manage it accordingly in the office, in case of failure he will be no more at the job; this is in the ethics of the work environment and all these ethics become more exhaustive when you are in the Marketing Department and have to deal with all type of employees. You have to prove yourself a calm and pleasant personality.

Bengal Plastic Industry Ltd