Background
Bextex
Ltd. (the "Company") was incorporated in Bangladesh Dhaka
and Chittagong Stock Exchanges of Bangladesh.
Bextex
Ltd. is the most modern composite mill in the region. Bextex Ltd. has an
installed capacity of 288 high-speed air-jet looms in its weaving section and a
high-tech dyeing and finishing section with a capacity of 100,000 yards of
finished fabric per day. This company is located at the Beximco Industrial Park
Bextex Ltd. has a state of the art composite knit fabric production mill, which serves the growing needs of high-quality knit garments exporters inBangladesh
Bextex Ltd. also has cotton and polyester blended yarn-spinning mill, with 122,000 spindles is one of the largest spinning mills of the country. The mill was set up to feed the country's export oriented industries.
Bextex Ltd. produces specialized finishes of denim cloth for export in finished as well as cloth only form.
Bextex Ltd. has a state of the art composite knit fabric production mill, which serves the growing needs of high-quality knit garments exporters in
Bextex Ltd. also has cotton and polyester blended yarn-spinning mill, with 122,000 spindles is one of the largest spinning mills of the country. The mill was set up to feed the country's export oriented industries.
Bextex Ltd. produces specialized finishes of denim cloth for export in finished as well as cloth only form.
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Company Profile:
CORPORATE HEADQUARTERS:
17 Dhanmondi R/A, Road No. 2 Phone: 880-2-8611891-5, 8618220-7 9677701-5, 7701165 E-mail: beximchq@bextex.net Web Site: www.bextex.net
OPERATIONAL HEADQUARTER:
Kashimpur,
FACTORY: Sarabo, Kashimpur, Gazipur
DATE OF INCORPORATION:
COMMERCIAL PRODUCTION: 1990
BUSINESS LINE:
Manufacturing and Marketing of Yarn, Woven, knit and Denim Fabrics.
LISTING STATUS: Public Listed Company.
STOCK EXCHANGE LISTING:
AUTHORIZED CAPITAL IN BDT: 3,000 Million Taka
PAID UP CAPITAL IN BDT: 1,882.50 Million Taka
NUMBER OF SHAREHOLDERS: 37,929
NUMBER OF Woven LOOMS
INSTALLED: 293
NUMBER OF Spindles
INSTALLED: 119,520
NUMBER OF Denim LOOMS INSTALLED: 56
NUMBER OF Circular knit Machine
INSTALLED: 30
PRODUCTION CAPACITY: 28 Million Linear Meters
NUMBER OF EMPLOYEES: 5,181
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2.2 Vision
• Gain
market leadership in high value added apparel in USA & Europe.
• Use
“Innovation” & “Speed” as prime drivers, rather than cotton & cheap labor.
• Dominate
these markets in high quality:
- Men's,
Women's , Children
- Shirts
( Dress & Casual )
- Blouses
( formal & casual ) , Skirts, Jackets
- Jeans
& Casual non - denim bottoms
- Knitted
tops & bottoms
2.3 Mission
BEXTEX
Ltd. is a full service vendor with strong vertically integrated production
facilities as well as creative & analytical capabilities which clearly set
us apart from most other South Asian vendors.
2.4 Goal
Our goal is to achieve a distinction like the luminaries in the
sky. Our prime objective is to deliver a quality that demonstrates a true
reflection of our vision-Excellence in manufacturing.
2.5 Organogram
The span of control of Beximco
textiles is almost tall. In office high officials control the subordinates and
subordinates are liable for there work to their authorized superior boss. In
this organization all the people works in tremendous pressure. Here crucial decision is taken by the
chairmen and directors-
Figure-01: Organogram
2.6 Marketing mix
The
marketing mix is probably the most famous phrase in marketing. The elements are
the marketing tactics also know as the 4 P’s. Marketing decision generally
falling in to the following 4 controllable categories.
- Product
- Price
- Place
- Promotion
2.6.1 Product
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Yarn
Products
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Lyocell,
Tencel, Modal, Rayon, Viscose etc.
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Fabric
Products
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Solid
Dyed
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Yarn
Dyed
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Finishing
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Dobby
Designs
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Yarn
Count
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Knit
Products
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Denim
Products
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2.6.2 Price
Textile
sector is very competitive market. Normally as Beximco produces fabrics for
making export quality RMG that’s why quality is here main concern. Maintaining good quality is the reason for
high cost of Beximco fabrics. Normally shirts starts from $3-35, pants starts
from $7-40, ladies dress starts from $2-30, children items starts from $2-25.
2.6.3 Promotion
It
is textile industries, so they never take TV advertisement or radio
advertisement. They offer their product to the buyer directly on E mail. BexTex
has a well decorated web page that is www.bextex.net. They also directly communicate to
the buyer. All the
promotions done in Beximco textile is under personal promotion. High level
officers are designed and implemented it. Stuffs are maintained channels by the
supervision of managers. Participation in BTMAs various program is one of the
major ad objective of Beximco. Giving advertisement in textile directory is
also a promotion work for Beximco.
2.6.4 Place
BexTex
limited sales their product to different countries and different organization
like Walmart etc.
Beximco textiles marketing place is its head office of marketing. Corporate
buyers are the clients of Beximco.
2.7 SWOT Analysis
STRENGTH:
- Vertical integration ensures
their freedom of work and minimizes the dependency to the outsiders.
- ISO approval is one of their
biggest advantages about the question of quality.
- Experienced managers are great
advantage for Beximco. They take decisions on time
and systematically manage all things.
- Low taxation on raw materials
is helpful for reducing overall cost. And makes easier for the company
product to compete the markets existing products.
- Good brand image and fame means good market reputation.
It helps their marketing department to get order easily.
OPPORTUNITIES
Set up ERP and supply chain
management system (SCM) in Beximco is an opportunity. It will speedup
the over all performance of the company, saves storage cost, and overall time
and money.
- Our local market is very
potential. So penetrate on local market could be beneficiary for
Beximco.
- Now men are fashion concuss,
so using this positive potentiality creating new product line and do
market segmentation is easier.
- Update and installation of new
machinery will increase company’s product quality and production capacity.
- Arranging on job and off job
training for the employees will helpful for increasing the efficiency of
employees.
- Now we have many fashion
institutes in our country. Searching talents and incorporate them to
produce new product will be a great opportunity for
Beximco.
WEAKNESS:
- Beximco textile doesn’t have any
strong IT infrastructure. Digitations system is very much required to run
a modern production oriented firm. Without a strong IT infrastructure
operation of a firm is the symbol of inefficiency.
- Centralize decision making
authority system is one of the main problem of this company.
- There is no R&D practice
in Beximco
textile.
- Insufficient and unstructured
data system.
- Management and stuffs doesn’t
have adequate transport facility.
- Not heaving any structured
system for the intern student
- Weak HRM department is one of
the most weak point of Beximco groups.
- Less job facility for the
employees and workers de-motivated the employees. Arranging good facility
is very important for this group.
- Employees’ high turn over rate
is a major weakness of Beximco textile.
THREATS:
- Textile market is very much
related to the high-tech machineries. So, rapid technological advancement
will bring new challenges for the textile industry in very year.
- Heavy competition and
overcrowded industry makes the textile business highly competitive.
- Less job security will be a
threat for the employees and for the company also. Because employees are
direct related to the companies performances. And any kind of
dissatisfaction toughly hampers the performances of the production firm.
THEORETICAL ASPECTS
3.1. Marketing
Theory:
ü Marketing:
The process by which individual and groups obtain what they need
and want through exchanging and creating value with others.
Example: Volvo Car.
ü Needs:
A state of felt deprivation.
ü Wants:
Wants are the from human needs take take as they are shaped by a
person’s knowledge culture and personality.
ü Demand:
Human wants that are backed by buying power. It must include the
following things-
- Desire something
- Ability to
purchase product
- Wish to spend
money for something.
ü Marketing Management:
The art and science of choosing target market and building
profitable relationship with them.
ü Marketing Research:
The systematic design, collection, analysis, and reporting of data
relevant to a specific marketing situation facing an organization.
ü Target Market:
A set of buyers sharing common needs or characteristics that the
company decides to serve.
ü Market Segment:
A group of consumers who respond in a similar way to a given set
of marketing efforts.
ü Market Positioning:
A clear distinctive and desirable place of a product relative to
competing products in the mind of target consumers.
ü Market:
The collection of actual and potential buyers of a product and
service.
Example: Share market.
ü Vision:
Vision is a statement that is not so much clear
objective of an organization.
ü Mission
Mission is a statement of
the organizations purpose- what it wants to accomplish in the larger
environment. That is mission is more clear than vision.
ü Goal:
Goal is a gross diversification. It indicates that
to achieve all the purpose of the organization in the long run.
ü To build poverty frees Bangladesh
ü To remove illiterate.
ü To reduce corruption.
ü Marketing Offering:
Some combination of products, services, information, or
experiences offered to a market to satisfy a need or want.
Concept of Marketing
·
Product Concept:
The idea that consumers will favor products that offers the most
quality, performance, and features.
·
Production Concept
The idea that consumers will favor products those are available
and highly affordable.
·
Selling Concept
The idea that consumers will not buy enough of the firm’s products
unless it undertakes a large scale selling and promotion effort.
·
Marketing Concept
The marketing concept that achieving organizational goals depends
on knowing the needs and wants of target markets and delivering the desired
satisfaction better than competitors do.
·
Societal Marketing Concept
A company may make good marketing decisions by considering
consumers want, the company’s requirements, consumers’ long-run interests and
society’s long-run interests.
ü Service
Any activity or benefit that one party can offer to another that
is essentially intangible and does not result in the ownership of anything.
ü Service Intangibility
A major characteristic of service-they cannot be seen, tasted,
felt, heard or smelled before they are bought.
ü Service Perish ability
A major characteristic of service-they cannot be stored for late
sale or use.
ü Customer Satisfaction
Dependent on the products perceived performance relative to
buyers’ expectations.
3.2 Marketing Mix:
In achieving the target, effectively marketing tools are used to
provide the products to the customers. Marketing tools is known as marketing
mix or 4ps.
The marketing mix is probably the most famous phrase in marketing.
Marketing decisions generally fall into the following four controllable categories:
ü Product
ü Price
ü Place (Distribution)
ü Promotion
According to Kotler Armstrong, the
marketing mix is a set of “controllable tactical marketing tools (product,
price, place promotion) that the firm blends to produce the response it wants
in the target market”. The marketing mix consists of everything the firm can do
to influence the demand for its product.
Product: Product is something offered by marketers to customers for
exchange and that can satisfy needs and wants of the targeted people.
Price: Price is the amount of money, goods or services that must be
sacrificed to acquire ownership or use of a product.
Place: Place is the channel of distribution used to get products and
services to the market. Place decisions are those associated with channels of
distribution that serve as the means for getting the product to the target
customers.
Promotion: Promotion is the personal and impersonal means used
to inform, persuade, and remind customers about products and services.
4p’s in
Detail:
3.2.1. Products:
The product is the most important aspect of the marketing mix.
Products have both tangible and intangible benefits. Tangible benefits include
benefits, which can be measured such as the top speed of a car. Intangible
benefits are benefits that cannot be measured such as the enjoyment the
customer will get from the product. It is important that the product is changed
as necessary to bring it up to date and prevent it from being overtaken by
competitors.
Exactly what product or service are you going to sell to this
market? Define it in terms of what it does for your customer. How does it help
your customer to achieve, avoid or preserve something? You must be clear about
the benefit you offer and how the customer's life or work will be improved if
he or she buys what you sell.
The term "product" refers to tangible, physical products
as well as services. Here are some examples of the product decisions to be
made:
ü Variety
ü Quality
ü Design
ü Features
ü Brand name
ü Packaging
ü Services
ü Sizes
ü Warranties
ü Returns
3.2.2. Price:
It is very important that the correct price is charged for a
product. If the price is too high consumers will avoid the product as they will
believe it to be too expensive yet if the product is priced too low they may
believe that there is something wrong with the product for it to be so cheap.
Also if the company charges too low a price, it may not cover its costs. There
are many different pricing strategies that companies can use to decide on a
price for their product including market and psychological pricing methods.
Exactly how much are you going to charge for your product or
service, and on what basis? How are you going to price it to sell at retail?
How are you going to sell it at wholesale? How are you going to charge for
volume discounts? Is your price correct based on your costs and the prices of
your competitors?
Some
examples of pricing decisions to be made include:
ü Pricing strategy (Skim, penetration, etc.)
ü Suggested retail price
ü Volume discounts and wholesale pricing
ü Cash and early payment discounts/ bonus
ü Seasonal pricing
ü Bundling
ü Price flexibility
ü Price discrimination.
3.2.3. Place:
The place is where you can expect to find your
customer and consequently, where the sale is realized. Knowing this place, you
have to look for a distribution channel in order to reach your customer.
The
place is not where is located your business but where our customers are. For a
retailer it is the same but for a boat producer located in Philippines the
real place is the entire world. Do not confuse positioning and place. Here
place means the real physical position of the customer in a geographic area or
along a distribution channel.
Distribution is about getting the products to the customer. Some examples of
distribution decisions include:
ü Distribution channels
ü Market coverage (inclusive, selective, or exclusive distribution)
ü Specific channel members
ü Inventory management
ü Intermediaries
ü Distribution centers
ü Order processing
ü Transactions
ü Reverse logistics
In consumer marketing channels, we have to consider three main
distribution channels:
ü Selling to the customer
ü Selling to the retailer
ü Selling to the wholesalers
3.2.4. Promotion:
In the
context of the marketing mix, promotion represents the various aspects of
marketing communication, that is, the communication of information about the
product with the goal of generating a positive customer response. Marketing
communication decisions include:
ü Promotional strategy (push, pull, etc.)
ü Advertising
ü Personal selling & sales force
ü Sales promotions
ü Public relations & publicity
ü Marketing communications budget
However, the strategies
for the four P’s require some modifications when applied to services. For
example, traditionally promotion is thought of as involving decisions related
to sales, advertising, sales promotions and publicity. In services these
factors are also important, but because services are produced and consumed
simultaneously, service delivery people are involved in real-time promotion of
the service even if their jobs are typically defined in terms of the
operational function they perform.
3.3 Customer
Satisfaction: From Theoretical View:
Customer
satisfaction is the extent to which a product or service’s perceived
performance matches a buyer’s expectations. If the product or service’s
performance falls short of expectations, the buyer is dissatisfied. If
performance matches or exceeds expectations, the buyer is satisfied or
delighted.
Expectations
are based on customers past buying experiences, the opinion of friends and
associates, and marketer and competitor information and promises. Marketer must
be careful to set the right level of expectations. If they set expectations too
low, they may satisfy those who buy but fail to attract enough buyers. In
contrast, if they raise expectations too high buyers are
likely
to be disappointed. Dissatisfaction can arise either from a decrease in product
and service quality or from an increase in customer expectations. In either
case, it presents an opportunity for companies that can deliver superior
customer value and satisfaction.
Today’s
most successful companies are rising expectations—and delivering performance to
match. Such companies track their customers’ expectations, perceived company
performance, and customer satisfaction. Highly satisfied customers produce
several benefits for the company. Satisfied customers are fewer prices
sensitive, remain customers for a longer period, and talk favorably to others
about the company and its products & services.
Although
the customer centered firm seeks to deliver high customer satisfaction relative
to its competitors, it does not attempt to maximize customer satisfaction. A
company can always increase customer satisfaction by lowering its price
increasing its services, but it may result in lower profits. Thus, the purpose
of marketing is to generate customer value profitably. This requires a very
delicate balance: The marketer must continue to generate more customer value
and satisfaction but not “give away house.”
Now,
we have a very good idea regarding the importance of customer satisfaction. So,
it is also important for the company to know about the satisfaction level of
the customers. When any problem is identified, it becomes easier to solve the
problem.
Customer
satisfaction is the relation between Expected (E) and Perceived (P) value of
the service, where
 Value= |
Benefits
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=
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Outcome
+ Process
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Price
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Price
+ Cost of acquisition
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Here,
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P
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means
Dissatisfaction
P=E
means
Satisfaction
P>E
means
Delight
The satisfaction or dissatisfaction of a
consumer for a service depends on 5 gaps. If gap increases then customer’s
dissatisfaction will also increases.
Therefore, the service providers strive to breeze this gap. These gaps are
- Customer gap:
Not knowing what the service actually is.
- Provider
gap 1: Not knowing what the customer wants
- Provider
Gap 2: Not having the right service design and standard
- Provider
gap 3: Not delivering the service standard
- Provider
gap 4: Not matching performance with promises
3.4 SWOT Analysis
SWOT states
for S- Strength, W- Weakness, O-Opportunities and T- Threats. SWOT analysis is
a very important factor for a Company. To compete with rivals and measure the
current position of the Company it is must to analysis SWOT.
·
Strength
Strength is something that a company is good at
doing. Strength can be skill, a competence, and a valuable organizational
resource or competitive capability or an achievement that gives a company a
market advantage.
Example: Superior technology, excellent customer service, high quality product.
- Weakness
A
weakness is something a company lacks or does poorly or a condition that puts
it at a disadvantage.
Example: Obsolete facilities, Lack of managerial talent,
falling behind in R & D.
- Opportunities
An
opportunity is something that a company may grab for company growth and
profitability. It is favorable condition in a company’s external environment.
Example: Diversifying business, Prospect of entering new
markets.
- Threats
A threat is something a company may be exposed to in
the external environment that may cause suffering in growth or profitability.
It is an unfavorable trend in the external environment.
Example: Rival’s introduction of chapter products or better
products.
3.5 Product Life Cycle
The course of a product’s sales and profit over
time
ANALYSIS AND FINDINGS
4.1 Industry Analysis
(Source: www.fiber2fashion.com).
Currently
the number of membership of BTMA is 1192 under:
Spinning
(Yarn Manufacturer) = 341
Weaving
(Fabric Manufacturer) = 641
Dyeing-Printing-Finishing
(Textile Product Processor) = 210
Over
4.00 billion EURO has been invested in these mills and about 4.00 million
people are currently employed.
Labor
cost incurred in the industry is the lowest compared to its competitors.
Table
no-1: Labor cost & its competitors
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Country
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Labor cost per hour
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Country
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Labor cost per hour
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$
1.00/Hour
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$
0.40/Hour
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$
0.60/Hour
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$
0.40/Hour
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$
0.45/Hour
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$
0.35/Hour
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$
0.40/Hour
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$
0.25/Hour
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(Source:
BKMEA websites)
Energy
cost in Bangladesh India Pakistan
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Country
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Cost/KwH
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$ 0.095/KwH
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$ 0.08/KwH
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$ 0.07/KwH
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(Source: BKMEA websites)
4.1.1 Bangladesh
Table
no-2: Bangladesh
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1
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Spinning
Sub-sector
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No.
of Unit:
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a.
Private Sector:
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301
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b.
Public Sector:
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23
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No.
of Spindles:
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a.
Private Sector :
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6320000
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B.
Public Sector :
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62000
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Rotor
Spinning (Open-end)
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(Approx)100890
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Annual
Production Capacity (million Kg)
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500
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Man
power:
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125000
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2
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Woven
Sub-sector:
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a.
Large Weaving & Weaving Dyeing composite mills:
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420
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b.
Specialized Power Loom Unit
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1065
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Annual
Production Capacity: (million meters)
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2000
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Manpower:
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55000
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3
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Hand
Loom Sub-sector:
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No.
of handloom:
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498000
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Annual
Production Capacity:(million meters)
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837
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Manpower:
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1160000
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4
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Knitting
& Knit Dyeing Sub-sector (Export Oriented Unit):
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800
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Annual
Production Capacity (million meters)
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2000
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Man
power:
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78000
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5
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Dyeing-Printing-Finishing:
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a.
Mechanized dyeing & finishing unit:
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130
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b.
Semi-mechanized dyeing & finishing unit:
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180
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Annual
Processing Capacity: (million meters)
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2800
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Manpower:
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27000
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6
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Export
Oriented RMG Sub-sector:
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4500
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Annual
Production Capacity: (dozens)
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475
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Manpower
:
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5
million
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(Source: BTMA websites, Last
Update, February 2010)
As the export increased in the
knitwear sector the capacity of backward linkage also gradually increased
accordingly. The result is local suppliers can improve 90% of the total fabric
requirement of the sector.
Figure 04: Competitive composition and Local Supply of Fabric and
Yarn
(Source: BKMEA websites)
The growth of spinning mills also
stepped with the growth of knitwear exports. In 2003-04 the total number of spindles
was 1.38 million that supplied 10.70 million KG yarn. In 2003-04 the number
almost tripled and it becomes 3.7 million that supplies 239.00 million KG yarn.
As of now the total investment in the backward linkage industry is more than
US$ 4.00 billion.
In
figure number 4, though oven is the highest contribution (41.58%) in terms of
gross export, but the knit becomes the most significant component if we see the
net export share (32%). It happens because the backward linkage industry has
grown over the time which happens the knitwear sector to have the higher value
addition and there fore a much higher net retention rate.
(Source: BKMEA websites.)
Figure 05: Comparative Structure of Gross and Net Exports of Bangladesh
Figure 06: Export scenario of Bangladesh
The graph shows us the overall
export situation of our country over the year
of
1972-73 to 2004-05. In the graph we have seen that after 1990-91 the export of Bangladesh
radically increases. Finally in
2004-05 it is in booming situation and crosses 8000 million US $ yearly
exports. Behind this dynamic growth few positive components like low labor
cost, privatization, favorable duty policy and over all a good impression about
our Bangladeshi RMG products on foreign buyers work most.
Table no-3: Competitive statistics of
Knitwear (Volume in million US
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Year
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Knitwear
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Woven Wear
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Total Export
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volume
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%change
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share % in
BD export
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volume
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%change
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share % in
BD export
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RMG
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1999-00
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1269.83
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22.64
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22.08
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3082.56
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3.27
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53.56
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4352.39
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5752.2
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2000-01
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1496.23
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17.83
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23.14
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3364.2
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9.14
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52.02
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4860.43
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6467.3
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2001-02
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1459.24
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-2.48
|
24.38
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3124.56
|
-7.12
|
52.2
|
4583.8
|
5986.09
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2002-03
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1653.83
|
13.34
|
25.26
|
3258.27
|
4.28
|
49.75
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4912.1
|
6548.44
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2003-04
|
2148.02
|
29.88
|
28.25
|
3538.07
|
8.59
|
46.54
|
5686.09
|
7602.99
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2004-05
|
2819.47
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31.26
|
32.58
|
3598.2
|
1.7
|
41.58
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6417.67
|
8654.25
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2005-06
|
3816.98
|
35.38
|
36.26
|
4083.82
|
13.5
|
38.78
|
7900.8
|
10526.16
|
|
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2006-07
|
4553.52
|
19.30
|
37.39
|
4657.63
|
14.05
|
38.25
|
9211.23
|
12177.86
|
|
|
2007-08
|
5532.52
|
21.50
|
34.58
|
5167.28
|
10.94
|
32.30
|
10699.80
|
14110.79
|
|
|
2008-09
|
6429.00
|
16.20
|
41.30
|
5918.51
|
14.54
|
38.02
|
12347.51
|
15565.19
|
|
|
2009-10
|
6483.29
|
0.84
|
40.01
|
6013.43
|
1.60
|
37.11
|
12496.72
|
16204.65
|
|
Source: Export promotion Bureau.
Figure 07: Competitive statistics of woven wear of Bangladesh
Figure 08: Competitive statistics of knitwear of Bangladesh
The growth of knitwear and oven sector
is increasing at an increasing rate. The cumulative average growth rate of the
knitwear sector is 20%. And it is continuously grabbing a more portion in the
export pie of Bangladesh
4.1.2 Association of
Textiles Industry
- BTMA
Bangladesh
Textile Mills association (BTMA) is the national trade organization
representing Yarn, Fabric Manufacturers and Textile Product Processors mills of
the country under private sector. BTMA is registered in 1983 with the Joint
Stock Companies as an Association, not for profit, under the Companies Act
1994. BTMA’s initial memberships of 22 mills have some objectives also.
- BKMEA
BKMEA
was founded in 1996 to promote the exclusively the knitwear sector of Bangladesh
4.2 Company market
analysis
4.2.1 Product of BexTex
Figure-09: Product of
BexTex
(Source: Annul
Report of BexTex.)
The product of BexTex is knit, denim, fabrics, and yarn. At
present BexTex produce around 34% knit, 27% fabrics, 24% denim, 15% yarn. BexTex
produce their product according to the customer or buyers demands.
4.2.2 Reason for
buying
Figure-10: Reason for buying
From
the survey it is found that out of 31 responses 55% buy BexTex for its quality,
10% for its other reason, 10% for its service, and 25% for its price.
Most
of the consumer or buyers consume BexTex because of its quality.
4.2.3 Buyers opinion
about quality
From
the survey it is found that out of 18 respondent 56% buyers are fully
satisfied, 27% buyers are moderate, and 17% buyers are dissatisfied about its
quality.
Most
of the buyers or customers are happy with its quality. As a reason, most of the
consumer or buyers consume BexTex because of its quality.
4.2.4 Buyers opinion
about price
Figure 12: Buyers opinion about price
From
the survey it is found that out of 18 respondent 17% buyers are fully
satisfied, 44% buyers are moderate, and 39% buyers are dissatisfied about its
price.
Most
buyers or customer are unhappy with its price. They think BexTex charge more
for their product.
4.2.5 Buyers opinion
about the promotional activities
Figure 13: Buyers opinion about the promotional activities
From
the survey it is found that out of 18 respondent 11% buyers are fully
satisfied, 33% buyers are moderate, and 56% buyers are dissatisfied about
promotional activities.
Most
buyers or customer agree that proper advertisement can increase its sales as
well as profit. Like –arranging fair, ad in website.
4.2.6 Buyers opinion
about the employee
Figure 14: Buyers opinion about the employee
From
the survey it is found that out of 18 respondent 39% buyers are fully
satisfied, 33% buyers are moderate, and 28% buyers are dissatisfied about employee’s
activities.
Buyers
or customer are happy with BexTex employees work and behave. They also think
they require more training to improve their work.
4.2.7 Employees
opinion about R & D
Figure 15: Employees opinion about R & D
33%
employees are happy with the research and development of BexTex and 32%
employees are dissatisfied with the research and development of BexTex. They think
it require more R&D.
4.2.8 The main buyers
of BexTex
Figure 16: The main buyers of BexTex
The pie indicates the Export percentage of Beximco Textiles
in various region of the world. Here European region leads by 55.4%. Then US
Beximco textiles division
offer readymade garments, as its product. The main customers of Beximco textiles are
from Europe and America
a) Inditex
(zara and bershka)-Spain
b) JC
penny purchasing corporation-USA
c) Charter
house holding- UK
d) Mother
care-UK
e) The
cotton group SH- Belgium
f) GH
imported merchandise- Canada
g) Lindex
h) Orsay
GMBH-Germany
i)
PVH
j)
Perry Ellis
k) Shoeby
l)
Matalan
And
many more.
4.2.9 Competitor
analysis
|
Partex Textiles Ltd.
|
Jamaluddin Textiles Ltd.
|
Shah Fatehullah Textile Mills
Ltd.
|
|
Alhaj Textile Mills Ltd.
|
Kader Synthetic Fibres Ltd.
|
Shohgpur Textile Mills Ltd.
|
|
Asian Textile Mills Ltd.
|
Mowla Textile Mills Ltd.
|
Faizun Nesa Textile Mills Ltd.
|
|
Square Textiles Ltd.
|
Mascot’s Textile Mills Ltd.
|
Habibur Rahman Textile Mills
Ltd.
|
|
Unilon Textiles Ltd.
|
Newtex Dyeing & Printing
Ltd.
|
The Chittagong Textile Mills
Ltd.
|
|
Nahid Fabrics Ltd.
|
Padma Txtle Mills Ltd.
|
The Padma Fabrics Pvt. Ltd.
|
|
H.H. Textiles Ltd.
|
Rahim Textile Mills Ltd.
|
Uttara Knitting & Dyeing
Ltd.
|
|
Jamuna Textiles Ltd.
|
Raz Textile Mills Ltd.
|
Faizunnesa Textile Mills Ltd.
|
|
Shasha Denims Ltd.
|
Techno Textile Mills Ltd.
|
Zaber & Zobair Fabrics Ltd.
|
Figure 17: Competitor analysis
From
the survey it is found that out of 51 responses 35% buy Bextex, 20% buy Partex,
16% buy squar tex and 29% buyers buy product from others.
At
the present Bextex Ltd is the market leader in this industry. They should take
some more action so that they can keep the market leadership.
4.2.10 Important
season for buy
Figure 18: Important
season for buy
From
the survey it is found that out of 37 responses 41% buy at summer, 32% buy at
winter, 16% buy at spring and 11% buyers buy product at autumn.
Most
important season for buying product is summer and winter.
4.2.11 How Buyers Buy BexTex product
Figure 19: How Buyers
Buy BexTex product
From
the survey it is found that out of 36 responses 39% buyers buy product through E-mail,
22% buyers buy product through direct marketing, 25% through personal selling
and 14% buyers buy product through advertising.
Buyers
thinks BexTex should take more advertising so that they can easily choose their
product from advertising.
4.2.12 Production of
BexTex product (2005-2009)
Source: Company
Journal.
Figure 20: Production
of BexTex product (2005-2009)
BexTex
produce around 2.5 million yard of yarn, 8 million yard of knit, 4.5 million
yard of denim, 5 million yards of fabrics in the year of 2005. In 2006 it
produce around 3.5 million yard
Of
yarn, 9.8 million yard of knit, 7 million yard of denim, 7.9 million yards of
fabrics. In 2007 it produce around 4.5 million yard of yarn, 12.8 million yard
of knit, 10 million yard of denim, 11.5 million yards of fabrics. In 2008 it
produce around 5 million yard of yarn, 13.5 million yard of knit, 10.8 million
yard of denim, 10 million yards of fabrics. In 2009 it produce around 5.8
million yard of yarn, 14.2 million yard of knit, 12 million yard of denim, 13
million yards of fabrics.
From
the figure it is shown that the production capacity as well as the demand of
BexTex is increasing day by day.
4.2.13 Target Market
of BexTex
RMG
companies are the target market of BexTex. BexTex are mainly looking for the
international RMG companies and buyers rather than national buyers.
- Customer Group
Ø All RMG companies.
- Consumer Group
Ø People from all walks of life.
Ø Market, show room.
4.2.14 Demographics
Market of BexTex
The
profile for the BexTex
customers are consists of the following geographic, demographics & behavior
factors.
- Geographic
Ø BexTex
Products cover the whole of World specially EU & USA.
Ø It
also sell product with in the country.
·
Demographic
Ø Both
male & female are buyers of BexTex.
Ø The
main consumers are in the age group of 12-45.
Ø Consumers' growing awareness about new features and facilities.
Ø They prefer different color and combinations.
Ø Usually prices don’t matter that much.
4.2.15 Market Positioning
BexTex plays the Niche Market segment
with specific positioning of final
B2B sales. Due to their strong
public relation and competitor inactiveness they are gradually positioning
themselves among these target places.
4.2.16 Market Needs
Ø
Good Features.
Ø
Availability.
Ø
Competitive pricing.
Ø
Nice Packaging.
Ø
Strong Marketing Activities ( Like Arranging
Fair)
4.2.17 Company Policy
Ø To
produce goods as per customers requirement.
Ø To
select employees on the basis of qualification.
Ø To
keep hygienic conditions in the factory.
Ø To
ensure the health of the workers.
Ø To
improve the quality management system continuously
MAJOR FINDINGS
5. Major Findings
- Big size of industry.
- Large contribute in national
income.
- High competition among every
textile.
- Most of the buyers chose knit
products of Bextex ltd.
- Most of the buyers buy Bextex
products because of their quality.
- Most of the buyers are
satisfied with the quality of Bextex products.
- Most of the buyers are
dissatisfied with the price of Bextex products.
- Most of the buyers are dissatisfied with
promotional activities of Bextex.
- Most of the buyers are
satisfied with the employee of Bextex ltd.
- Employees are neither
satisfied nor dissatisfied with R & D of Bextex ltd.
- Main buyer of Bextex is EU.
- At the present Bextex Ltd is
the market leader in this industry.
- Most of the buyers prefer
summer season to buy products from Bextex.
- Most of the buyers prefer
E-mail to buy their products from Bextex.
- Never use of promotional
activities.
- Mainly focus on abroad
customer.
- Facing international
complexity.
- Fastest growth industry.
CONCLUSION
In the whole system of Beximco
textiles and as well as in the textile industry I found few problems. These
problems are two types. One is internal problem, means problems which exist in
Beximco textiles or group and which hampers the performance of Beximco textiles
or group. The second one is overall problem; means problem which exists in the
system and as well as in the industry. Beximco enter to the world market of
textile and RMG is about 33 years. In these years we have faced lot of
challenges and have got lot of experience. After crossing these time now we
have get the golden time to re-infrastructure and reshape our whole industry
and make a revolution. It is the
appropriate time when we should think about our future industry newly. Keeping
these things mind I have tried and designed my report on textile industries. I
think it is not only my course requirement of BBA but also a step towards my
professional career. I firmly believe that it will definitely add some values
in my future goals.
Though there are some limitations;
however I have tried to do my best to learn and to write the real working
situation out of my internship. Over all the performance of Beximco textiles is
satisfactory. I think in farther development this firm needs few promotional
activities, should look for other countries rather than EU and USA
RECOMMENDATION
I have tried to suggest some
possible solutions of these problems.
·
Beximco
textile should give importance to their yarn products.
·
Beximco
textile should improve their quality as well as focus to price and other
service so that they can satisfy all buyers.
·
They
should improve their products quality by offering different features; color etc
so that they can satisfy all buyers.
·
BexTex
should need more concern about their pricing strategy to capture all the
customers.
·
They
should do some advertising for their product. Like-arranging fair, ad in
website.
·
They
should train up their employees periodically.
·
R&D
department should be established in Beximco textiles to modernized existing
product and quality increase.
·
Beximco
should give more importance to other countries too. Like-Middle East.
·
Beximco
textile should take different marketing strategies to be the market leader in
the highly competitive industry.
·
Beximco
should give importance to sell their products all round the year.
·
They
should take more advertising so that buyers easily buy the product.
·
IT
system needs to be upgraded according to the expert suggestions.
·
Market
penetrate can be done into local market to increase sells.
·
Website
should be upgrade after every 3 moths and more information needs to incorporate
into that web.
·
International
lobbing should be done to increase foreign exports
·
Modern
research institute should be established nationally to do vast research on
fiber, yarn and textile products.
·
Loan
facility need to be more increase.
·
Government
policy should be more liberalize for textile sectors growth.
·
Bureaucracy
in government sector should be reduced and
·
Corruption
rate should be controlled.
BIBLIOGRAPHY
·
Kotler Philip and Keller Kevin Lane
·
Baaquie E. Belal (2005) Major investment
incentives, Statistics Pocket of Bangladesh, Retrieved July
5, 2007
·
Hussain
Azfar (2003, March) Competitive statistics of Knitwear. Export promotion bureau,
Retrieved July 7, 2007 ,
page number 52
·
Bangladesh
Textile industry at a glance, Labor cost & its
competitors, from
http://www.btma.org
·
Introduction
of Bangladesh
·
Rahman.
M. Dr. (2003,
June). Tech textile symposium technical
Papers, Research institute at tech textile, Industrial Fabrics Bulletin 2,
Retrieved July 3, 2007
·
www.bkmea.com
ANNEXURE
Name/Organization
name………………………………., Address……………………………….
1.
What type of Bextex product do you
prefer?
Ans:
a) Denim, b) Yarn, c) Fabric, d) Knit.
- Why do you
prefer Bextex fabrics?
Ans:
a) Quality, b) Service, c) Price, d) Others…………………
3.
Which color of product do you prefer?
Ans:
a) Dark indigo, b) Blue black, c) Black, d) Others…………………
4.
How much weight of product do you prefer
for per square meter?
Ans:
a) 10oz-12oz , b) 8oz-12oz , c) 10oz-15oz
, d) 10oz-14oz
5.
How much you want to cost for Bextex
fabrics in per yd?
Ans:
a) USD 1.5 , b) USD 1.8 , c) USD 2.0 , d) USD 2.5.
6.
What qualities of product you imported from Bextex?
Ans:
a) High, b) Medium, c) Low, d) No comment.
7.
Are you satisfied with its price?
Ans:
a) Fully satisfy, b) Moderate, c) Dissatisfied.
8.
Do you think advertisement in different
media can increase profit?
Ans:
a) Yes, b) No.
9.
Which channel of media would you prefer?
Ans:
a) TV, b) E-mail, c) Web site, d) Others…………………
10.
Are you satisfied with its employee
work?
Ans:
a) Fully satisfy, b) Moderate, c) Dissatisfied.
11.
From which textiles you collect product?(please indicates their name)
Ans:
a) BexTex, b) PaeTex, c) SquarTex, d) Others
12.
Which season export volume is high?
Ans:
a) Summer, b)Winter, c) Spring, d) Autumn.
13.
What is your level of satisfaction about
various fabrics seller in BD?
Ans:
|
Company Name
|
Level of satisfaction
|
||||||
|
|
100
|
90
|
80
|
70
|
60
|
50
|
Below 50
|
|
|
|
|
|
|
|
|
|
|
ParTex
|
|
|
|
|
|
|
|
|
Square Textiles
|
|
|
|
|
|
|
|
|
Padma Textiles
|
|
|
|
|
|
|
|
|
Others
|
|
|
|
|
|
|
|
- In comparison with other local
competitors, how will you fix the rate of Bextex fabrics?
(Please mark the number)
Ans: Quality: Poor Quality Neutral High Quality
1 2 3 4 5
Price: Costly
Neutral Cheap
1 2 3 4 5
- What is your satisfaction level of using local (
(Please
mark the number)
Ans: Highly Dissatisfied
Neutral Highly Satisfied
1 2 3 4 5
- What is your satisfaction level of using
local Bextex fabrics?
(Please mark the number)
Ans: Highly Dissatisfied Neutral Highly Satisfied
1 2 3 4 5
17.
Will you prefer to use Bextex Fabrics next time?
Ans:
a) Yes, b) No, c) May be.
18.
By how you know about or buy Bextex product?
Ans:
a) Advertising, b) Personal selling, c) Direct marketing, d) E-mail.
19.
Do you like Bextex fabrics? Why?
Ans:………………………………………………………….
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