May 5, 2014

INTERNSHIP REPORT ON “PRESENT MARKET CONDITION OF BEXIMCO TEXTILE LIMITED”

Background

Bextex Ltd. (the "Company") was incorporated in Bangladesh as a Public Limited Company with limited liability on 8, March 1994 and commenced commercial operation in 1995 and also went into the public issue of shares and debentures in the same year. The shares of the Company are listed in the 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 in Bangladesh. The project was set up as a state of the art knit fabric knitting, dyeing and finishing facility. During the year the Company produced and sold high quality of knit fabrics and bringing forth all the latest in hard and soft technologies in knitting, dyeing and finishing of knit fabric.

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.



Company Profile:

CORPORATE HEADQUARTERS:

17 Dhanmondi R/A, Road No. 2
Dhaka -1205, Bangladesh
Phone: 880-2-8611891-5, 8618220-7
          9677701-5, 7701165
E-mail: beximchq@bextex.net
Web Site: www.bextex.net

OPERATIONAL HEADQUARTER:

Beximco Industrial Park, Sarabo
Kashimpur, Gazipur , Bangladesh .

FACTORY: Sarabo, Kashimpur, Gazipur

DATE OF INCORPORATION: 30 May, 1984

COMMERCIAL PRODUCTION: 1990

BUSINESS LINE:

Manufacturing and Marketing of Yarn, Woven, knit and Denim Fabrics.

LISTING STATUS: Public Listed Company.

STOCK EXCHANGE LISTING:

Dhaka and Chittagong.

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





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


Yarn Products





  • Count - Ranging from 6 – 120

  • Fiber - Cotton ( super – combed, combed, carded)

  • CVC - 60% cotton, 40% polyester

  • TC - 65% polyester-35% cotton; 100% polyester both regular and sewing thread
          Lyocell, Tencel, Modal, Rayon, Viscose etc.













Fabric Products







Solid Dyed
  • Poplins
  • Twills
  • Dobbies
  • Oxfords
  • Seersuckers
  • Canvas
  • Ribstops in 100% Combed Cotton
  • CVC and CVS/TC
  • Stretch
  • Satten
Yarn Dyed
  • Ginghams
  • Stripes
  • Fil-a-fils/End-on-ends
  • Chambrays
  • Seersuckers
  • Pinpoint
  • Oxfords
  • Dobbies
  • Plaids in 100% Combed Cotton
  • CVC and CVS/TC
  • Stretch
  • Satten
Finishing
  • Wrinkle Free
  • Easy Care
  • Peach
  • Chintz
  • Paper Touch
  • Teflon Coated
  • Water Repellent
  • Water Resistance
  • Rubberized





Dobby Designs
  • Herringbones
  • Bedford Cords/Coteles
  • Waffles and various structures in 100% Combed Cotton
  • CVC and CVS/TC
Yarn Count
  • Ranging from 7 to 120






Knit Products







  • JerseyIn 100% Combed Cotton, CVC, CVS/TC, and Lycra mix

  • Polo Pique : In 100% Combed Cotton, CVC and CVS/TC

  • Back Pique : In 100% Combed Cotton, CVC and CVS/TC

  • Herringbone : In 100% Combed Cotton and CVS/TC

  • Popcorn : In 100% Combed Cotton and CVS/TC

  • Bubble Knit : In 100% Combed Cotton, CVC and CVS/TC

  • Crepe : In 100% Combed Cotton and CVS/TC

  • Engineering Stripe : In 100% Combed Cotton and CVS/TC

  • Feeder Stripe : In 100% Combed Cotton and CVS/TC

  • Auto Stripe : In 100% Combed Cotton and CVS/TC

  • Rib : In 100% Combed Cotton and CVS/TC

  • Jacquard : In 100% Combed Cotton and CVS/TC





Denim Products







  • Chambray : In classic indigo colors ranging from 4oz to 5.5oz/Yd2

  • Denim (blue) : In classic indigo colors ranging from 4oz to 15oz/ Yd2

  • Denim (black) : In sulfur black color ranging from 4oz to 15oz/ Yd2

  • Colored Denim : In a variety of colors - both in sulfur & reactive dyes(warp dyed)

  • Over dyed Denim : In a variety of colors on indigo blue & sulfur black

  • Bull Denim : In a variety of reactive colors ranging from 10oz to 13oz/ Yd2 (piece dyed)

  • Stretch Denim : In classic indigo colors ranging from 4.5 oz to 13.75 oz/Yd2

     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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
  • Opportunity to shift employees, one to another SBU. It often helps management to solve urgent crisis. It reduces cost and time and gives management flexibility to decision making.
  • 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
=
Outcome + Process
Price
Price + Cost of acquisition
 

Here,
P
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
  1. Customer gap: Not knowing what the service actually is.
  2. Provider gap 1: Not knowing what the customer wants
  3. Provider Gap 2: Not having the right service design and standard
  4. Provider gap 3: Not delivering the service standard
  5. 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

Bangladesh is the best place in the region for textile and garments industry due to cheap labor and favorable trade status with the EU.  There is a huge yarn and fabric demand and supply gap in RMG industries which is presently met by import. Presently is about 85%-90% of the demand is met by import from countries like China, India, Hong Kong, Singapore, Thailand, Korea,  Indonesia, Taiwan etc. fabric requirement is increasing at 25% per annum. In order to stimulate rapid economic growth of the country Bangladesh Government encourage foreign investment and establish six individual export processing zone (EPZ). During the July-June 2009-10 periods, overall exports of the country reached US $12496.72 million. Represents a surge of over 20%, especially on the back of footwear and garments. Knitwear industry earned around $6483.29 million export.
(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

Country
Labor cost per hour
Country
Labor cost per hour
Thailand
$ 1.00/Hour
Indonesia
$ 0.40/Hour
India
$ 0.60/Hour
Pakistan
$ 0.40/Hour
Sri Lanka
$ 0.45/Hour
China
$ 0.35/Hour
Vietnam
$ 0.40/Hour
Bangladesh
$ 0.25/Hour
(Source: BKMEA websites)
Energy cost in Bangladesh in lower compared to India and Pakistan
                 
Country
Cost/KwH
India
$ 0.095/KwH
Pakistan
$ 0.08/KwH
Bangladesh
$ 0.07/KwH

   
(Source: BKMEA websites)





4.1.1 Bangladesh Textile Industry at a glance
Table no-2: Bangladesh Textile Industry at a glance
1
Spinning Sub-sector
No. of Unit:

a. Private Sector:
301

b. Public Sector:
23

No. of Spindles:


a. Private Sector :
6320000

B. Public Sector :
62000

Rotor Spinning (Open-end)
(Approx)100890

Annual Production Capacity (million Kg)
500

Man power:
125000



2
Woven Sub-sector:


a. Large Weaving & Weaving Dyeing composite mills:
420

b. Specialized Power Loom Unit
1065

Annual Production Capacity: (million meters)
2000

Manpower:
55000



3
Hand Loom Sub-sector:


No. of handloom:
498000

Annual Production Capacity:(million meters)
837

Manpower:
1160000



4
Knitting & Knit Dyeing Sub-sector (Export Oriented Unit):
800

Annual Production Capacity (million meters)
2000

Man power:
78000



5
Dyeing-Printing-Finishing:


a. Mechanized dyeing & finishing unit:
130

b. Semi-mechanized dyeing & finishing unit:
180

Annual Processing Capacity: (million meters)
2800

Manpower:
27000



6
Export Oriented RMG Sub-sector:
4500

Annual Production Capacity: (dozens)
475

Manpower :
5 million
(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 (FY 2003-04)


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 $)

Year
Knitwear
Woven Wear
Total Export

volume
%change
share % in
 BD export
volume
%change
share % in
 BD export
RMG
Bangladesh
1999-00
1269.83
22.64
22.08
3082.56
3.27
53.56
4352.39
5752.2
2000-01
1496.23
17.83
23.14
3364.2
9.14
52.02
4860.43
6467.3
2001-02
1459.24
-2.48
24.38
3124.56
-7.12
52.2
4583.8
5986.09
2002-03
1653.83
13.34
25.26
3258.27
4.28
49.75
4912.1
6548.44
2003-04
2148.02
29.88
28.25
3538.07
8.59
46.54
5686.09
7602.99
2004-05
2819.47
31.26
32.58
3598.2
1.7
41.58
6417.67
8654.25
2005-06
3816.98
35.38
36.26
4083.82
13.5
38.78
7900.8
10526.16
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. The knit ware is heavily driven by the favorable policies and took the opportunity to develop a strong backward linkage for the sector.



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. Knitwear is the second largest export earnings sector of the country which is expected to become number one very soon. BKMEA is committed to enhance social compliance status of its member units. BKMEA has ensured children labor free knitwear sector.

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
 Figure-11: 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 region covers 34.29% and the rest portion of export is done in the other countries. So here as statistics shows EU countries are more potential for Beximco Textiles.


Beximco textiles division offer readymade garments, as its product. The main customers of Beximco textiles are from Europe and America. The main customers of this organization are listed below:
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, train up the employee and also give equal importance to all product. Not only Beximco textiles but also for the future growth of our garments industry we need to do some reforms


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 (2005), Marketing Management (12th edition.)

·         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 textile sector, from www.fiber2fashion.com

·         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.
     
  1. 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
Bex Tex







ParTex







Square Textiles







Padma Textiles







Others









  1.  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



  1.  What is your satisfaction level of using local (Bangladesh) fabrics?
(Please mark the number)

Ans:              Highly Dissatisfied                     Neutral                    Highly Satisfied

                                     1                    2              3               4               5

  1.  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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