Marketing Mix
-A Study on KDS Garments Limited, Chattagram.
{This internship report submitted in fulfillment of the requirement for the degree
of Bachelor of Business Administration with a major in Marketing}
Prepared by:
Najowa Noor
Matric No:B-161256
Program: BBA
Major: Marketing
Semester: Spring19
Internship Duration: ( 2nd November 2019 to 2nd February 2020)
Department of Business Administration
Faculty of Business Studies
International Islamic University Chittagong
Marketing Mix
-A Study on KDS Garments Industries limited, Chattagram.
{This internship report submitted in fulfillment of the requirement for the degree
of Bachelor of Business Administration with a major in Marketing}
Supervised By:
Mrs. Tania Sultana
Lecturer
DBA, IIUC
Prepared by:
Najowa Noor
Matric No:B-161256
Program: BBA
Major: Marketing
Semester: Spring19
Internship Duration: ( 2nd November 2019 to 2nd February 2020)
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Department of Business Administration
Faculty of Business Studies
International Islamic University Chittagong
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ACKNOWLEDGEMENT
Internship Report program is an integral part of BBA course. Every BBA student is
to prepare and present Internship Report. The writing of this Internship Report
has been one of the most significant academic challenges I have ever had to face.
Firstly, I like to thank and offer my gratitude to Almighty Allah for enabling me to
do this work. I also thank the authority IIUC to give me chance to go through the
program and assist me for completion of the same.
I am grateful to my respectable supervisor Mrs,Tania Sultana
Lecturer, Department of Business Administration (DBA). Without her support,
patience and guidance, this study would not have been completed. It is to her
that I owe my deepest gratitude.
I would like to thanks honorable Managing Director of KDS Garments Limited
Md. SohelAmanfor giving me permission to take and survey their company all the
information to prepare this report. I also like to thanks Mr. Gunjon. Actually, it
was not possible for me to complete a serve task without such. During my
research period, I am satisfied to Mr. Md Abdul Kalam, Operation Manager. My
thanks are extended to the many contributions of this report, especially the
various officials of KDS Garments limited, Chittagong.
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Executive Summary
KDS Garments Limited was incorporated on 21 April 1991 as a private limited
company under the companies Act, 1913 (since replaced and substituted by the
Companies Act 1994) with the Registrar of Joint Stock Companies & Firms,
Chittagong (Registration no-C-H-C-862/154 of 1991). The company commenced
its commercial production on 01 July 1991. Head office of the company is located
at 255 Nasirabad Industrial Area, Chittagong 4211. Bangladesh. Subsequently the
company established its 2nd unit in Mirjapur, Gazipur at Dhaka in the year 2009.
KDS Garments Limited is the largest garments producing company in Bangladesh.
Since beginning, the company tried and accomplishes to provide the best quality
of its services to its clients without any topsy-turvy state of affairs.
The main objective is to know about Marketing mix policy of KDS Garments
limited. And the specific objectives are to understand the sales and marketing
policy, to know about service quality, overall scenario of KDS, finding problems
which is related with service and provided some possible solution.
The scope of this report is to work in every department of the bank. Besides this
the report covers the background, organizational structure, functions and
performance of the company and also tried to observe & understand the all
activities especially marketing mix and other day to day functions of the company.
I have collected data from two sources. Data includes primary and secondary.
Primary data consists with face to face conversation, desk work, notes, branch
report, questionnaire etc. And secondary data consists with annual report, books,
web sites, journals and different procedure mutual that established by KDS.
Methods used in analysis is questionnaire method. Results that found in analysis
put on the column and pie chart to understand the differences and find the real &
service-related problems.
After completing my analysis part, I have found some problems. Which include
slack of inventory management, shortages of product variation, unstructured
marketing department etc.
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To remove those, I have suggested some possible solutions such as: new product
development, focus on advertisement, well structure in inventory and marketing
department etc.
And the last topic of my report is conclusion. In conclusion part I have discussed
overall position of the garments and its marketing strategy. I have also discussed
about total position of KDS Garment in our country and its future. I have
expressed my experience that I have gathered in my internship period.
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Table of content
Particular
Letter of Transmittal
Acknowledgement
Executive Summary
Chapter-One: Introduction
1.1 origin of the study
1.2 Objective of the report
1.3 Scope of the study
1.4 Methodology of the study
1.5 Limitation of the study
Chapter-Two: Company Overview
2.1 Company profile
2.2 Nature of business
2.3 Product and service of the company
Chapter-Three: Sales and Marketing Policy of KDS
3.1 Garments Market in Bangladesh
3.2 Sales and Marketing policy of KDS
3.3 Financial risk of KDS garments
3.4 Major raw material and procurement process
3.5 IT in internal control
3.6 Market position of KDS
Chapter-Four: Analysis and Evaluation of
Marketing mix
4.1 Marketing Mix
4.2 Analysis of Marketing mix of KDS
Chapter-Five: Findings and Recommendations &
Conclusion
5.1 Findings
5.2 Recommendations
5.3 Conclusion
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CHAPTER -ONE
INTRODUCTION
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1.1 origin of the study
I have worked under the Sales & Marketing Department for past three months. My
internship program is an educational requirement of BBA Program under an
assigned of Institute of Global Management & Information System which is a
professional degree. BBA students have to do an internship program as a practical
orientation to the workplace where he can amalgamate the traditional hypothetical
knowledge with practical work experience.
1.2 Objective of the report
Broad Objective
The main objective of the study is to know about Marketing Mix of KDS
Garments Limited, Chittagong.
Specific Objectives
 To observe the activities of Sales & Marketing Department of KDS
Garments
 To demonstrate different aspects of KDS Garments
 To know the marketing mix of KDS Garments Limited.
 To present suggestions regarding marketing mix.
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1.3 Scope of the study
This report has been prepared through extensive discussion about sales and
marketing. Prospectus provided by the KDS also helps to prepare the report. At the
time of preparing the report, I had a great opportunity to have an in-depth
knowledge of all the Sales and Marketing policy of any company like KDS
Garments.
1.4 Methodology of the study
Primary sources
i. Face-to-face conversation with employees
ii. Practical work
Secondary sources
i. Annual Report
ii. Website
iii. Assignments and reports
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1.5 Limitation of the study
The officers are very co-operative but they are too busy to give me time to get
knowledge about practical activities. Moreover, they have to deal in a very
competitive environment based on money related activities. I have to prepare this
report alone. Every task has some limitations. I faced some usual constraints
during the course of my internship. These are as follows:
 Short of time: I had to complete this report writing within a shorter period
of time. So, the time constraint of the study hindering the course of vast area
and time for preparing a report within the mentioned period is really
difficult.
 Busy working environment: The officials had some times been unable to
provide information because of their huge routine work.
 Lack of sufficient well-informed officials: Many officials of the branch are
not well informed about different systems of KDS Garments. They know but
less. I had to face much difficulty to collect this information.
 Insufficient data: Some desired information could not be collected due to
confidentially of business.
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CHAPTER – TWO
COMPANY OVERVIEW
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2.1 Company profile
KDS Garments Limited (formerly KDS Packaging Industries ltd) was incorporated
on 21 April 1991 as a private limited company under the companies Act, 1913
(since replaced and substituted by the Companies Act 1994) with the Registrar of
Joint Stock Companies & Firms, Chittagong (Registration no-C-H-C-862/154 of
1991). The company commenced its commercial production on 01 July 1991. Head
office of the company is located at 255 Nasirabad Industrial Area, Chittagong
4211.
Bangladesh. Subsequently the company established its 2nd unit in Mirjapur,
Gazipur at Dhaka in the year 2009. KDS Packaging Industries Limited was
changed to KDS Garments Limited pursuant to the Special Resolution in the Extra
Ordinary General Meeting held on 22 April,2010 and certified by the Register of
Joint Stock Companies & Firms on 11 May 2010 pursuant to the provision of
section 11, sub section (7) of the Companies Act 1994 (Act XVIII of 1994). The
company re-fixed the face value of its shares from Tk. 100 to Tk. 10 each and
enhanced its Authorized Share Capital from Tk. 200,000,000 to 2,000,000,000 as
per approval of the shareholders in an Extra Ordinary General Meeting held on 10
August 2018.
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2.2 Nature of Business
KDS Garments Limited is the largest garments Garments producing company in
Bangladesh. Since beginning, the company tried and accomplishes to provide the
best quality of its services to its clients without any topsy-turvy state of affairs.
The Company is engaged in production of different types of textile Garments like
cartons, labels, tags, printings, narrow fabrics, elastics, heat transfer printing and
button.
2.2.1 Vision
 To become a globally preferred supplier of apparel solutions upholding our
social responsibility.
2.2.2 Mission
 Delighting our customers through sustained performance.
 Achieving excellence in progress and technology.
 Building a culture of cost consciousness.
 Leveraging through competent people.
 Leadership through innovation.
 Thrust in new product design.
 Excellent product range to deliver a seamless diversity of customer-specific
solutions through a single point of access. Nationally and internationally.
2.2.3 Objectives
KDS Garments is probably topping the list in Bangladesh. It has name objectives
for the development of the society. The objectives are:
.
.
and customer services.
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 Product & service of the company
2.3
• Packaging
The company is one of the first corrugated cartons manufactures in Bangladesh by
deploying state of the art, fully automatic board plants along with other advanced
machineries. In order to meet continuous demand of customers as well as world
class service, KDS has two plants in strategic locations of Bangladesh. In addition
of carton, back board, neck board, Bottom Board, Divider, Card Board, Sticker,
Top Bottom, also manufactures by the company.
KDS packaging is very familiar in producing cartons for renowned retailers like
Wal-Mart, George UK, ZARA, K-Mart, C & A, JCP, CSI, Marks & Spencer,
Tesco, H&M, Levies, GAP, American Eagle, Nike, POLO, Promo Doro, IKEA
etc.
• Heat Transfer Label
Transfer label are rapidly gaining popularity worldwide in comparison to
traditional garment labels for apparels and related applications. It conveys the
brand image effectively carry important information & care instructions, while
being comfortable to the user. KDS is the first and has a comprehensive Heat
Transfer Label printing facility in Bangladesh with the most advanced line of
equipment & material meeting global standards & safety compliances.
KDS Heat Transfer Printing is very familiar in producing printed items of the
renowned retailers like Wal-Mart, Tesco, Matrix, TARGET, CHAPS-USA, Adidas
etc.
• Labels & Tags
KDS Labels & Printing unit is one of the fastest growing contributors in KDS
Business portfolio. This setup is with very high specifications precision machines
like SulzerRuti of Switzerland & Dornier of Germany. This state-of-the-art
Machines display a high precision of quality. Theproduct line includes RFID
Labels, DR Security labels, Security Ink Printing, Organic, Cotton Ribbon and
Polyester Ribbon printing. The unit also produce narrow fabrics and elastics.
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KDS Label Printing is very familiar in producing woven label, printed label &
smart label items of the renowned retailers like Tesco, TARGET, JC Penny,
ASMARA, George etc.
• Offset Printing
KDS Printing unit installed world renowned 5 colors Heidelberg Machine from
Germany and other advance machineries which is established its demand and
quality to market.
KDS Printing is very familiar in printing offset, silk screen, web and thermal items
of the renowned retailers like Tesco, GARAN, US POLO, WALMART, George
etc.
• Button
With a vision to be one stop trim and Garments solution for the country’s growing
RMG industry, KDS Garments Limited has recently introduced “Button” item with
its product line. The product line includes Pearl Button, Horn Button, Chalk
Button, Diffuser button, fisheye button, Transparent Button etc. The company
uses World famous BONETTI, Italy machines.
The company has the capacity of producing 30,000 grade gross (GG) Button per
month, which include 16,000 GG for normal button and 14,000 GG leaser button
and operating at gradually increasing capacity to its maximum capacity.
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The Group Overview KDS Group is one of the most renowned business and
industrial conglomerates of Bangladesh, based mainly in the port city of
Chittagong but with extensive operations in Dhaka as well. It has also established
offices and agencies in India and Hong Kong and is currently expanding into
Europe and North America, thereby paving the path intobecoming a Bangladeshi
based multinational. The group was founded in 1983, through the establishment of
one of the first garments industries of Bangladesh, and over the last 30 years,
through innovation, dynamism, untiring effort and dedication, the business in terms
of assets and revenues have grown exponentially by sometimes over 500% a year.
The fields of business have also extended from being just apparel exports to a
whole array of other industries. KDS values human capital and is therefore
committed to attract, groom and nurture talent through industry leading
compensations and benefit packages apart from invests in training its potential
employees under local as well as foreign trainers. KDS has engaged the
internationally renowned organizational development consultants “Ernst & Young”
to develop upgraded Human Resource Management practices such as, appraisal
through the Balance Score Card method, talent mapping through Boston Matrix,
etc. The Group adheres to international compliance requirements closely, and has
taken many social initiatives for the betterment of the lives of its workforce going
even beyond foreign requirements.
Industries in which KDSL is involved
• Apparel
• Textiles
• Apparel Trims & Packaging
• Steel
• Information and Communication Technologies
• Logistics
• Shipping
• IT Training Services
• Banking
• Insurance
• Investment Management
• Shares and securities trading
• Other trading operations
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CHAPTER- THREE
PRODUCT AND SALES OF KDS
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3.1Garments Market in Bangladesh
Jkhkuu
Even for a local outfitter, making a dress is not just about taking measurements or
cutting and stitching fabric. There are a lot of nitty-gritty elements that are needed
to deliver a finished garment. Large-scale manufacturers spend 50 percent on
fabric and 18 percent on Garments to make a finished garment. In the readymade
garments sector, the items other than fabrics are called “Garments”. Garments are
as important as the fabric itself. The garment Garments trade, therefore, has
flourished worldwide along with the RMG sector.
In Bangladesh, the garments sector grew rapidly over the last several years for a
lower cost of production, but growth of the Garments industry crystallized later. In
the beginning, Bangladesh used to import almost all kinds of garment Garments.
But as local companies thrived, dependency on imported Garments gradually
subsided. The country initially imported Garments from countries like China,
Hong Kong, Singapore, Japan and India, spending a large portion of profits. But
now, the country is almost self-sufficient in garment Garments manufacturing, as
the ancillary industries blossomed and flourished here, driven by high demand.
Zippers, buttons, labels, hooks, hangers, elastic bands, thread, backboards,
butterfly pins, clips, collar stays, collarbones and cartons are the major garment
Garments produced in Bangladesh.
The use of high-end Garments also adds value to the garment. As a result, large
manufacturers and exporters try to use sophisticated Garments to pull in better
prices from international buyers. The import of Garments declined sharply as many
local companies have developed the capacity to supply.
The accessory market is dominated by multinational companies operating in
Bangladesh because in majority cases, garment buyers prefer Garments from them
over the locally available items. The local Garments suppliers, however, dominate
the low-end RMG segment, because the low-end manufacturers cannot pay big
bucks for almost the same quality of Garments just because they carry the names
of global giants.
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Relative Contribution of the services contribution more than 10% of the total
revenue
Associates, subsidiary/related holding company and their core areas of
business
Competitive Condition
The company maintains one gas base generator with capacity of 525 KW as a main
source of power and 2 diesel base generators with a capacity of 160 KW and 135
KW as alternative source of power in Gazipur Factory. Besides, the company has
a REB line with 25 KW for general purpose. Chittagong Factory is connected with
a 550 KW PDB electricity line which is used jointly with two entities of the group
namely KDS Cotton Poly Thread Industries Ltd and KDS Poly Industries Ltd and
sharing the expenses according to the usage.
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Customer providing 10% or more revenue KDS Garments does not have any single
customer who provides 10% or more revenue of the company. However, top ten
customers based on turnover as on 31 December 2019 are given follows:
Products:
 Sewing Threads
KDS Thread was the second sewing thread manufacturing unit in Bangladesh.
Now having more than 23 years of manufacturing experience, we have stood out
clearly in the market with the range of our products and the quality which we
sustained by using world class European machines such as "Thies" for dyeing and
"SSM" for coning. Another new plant is coming up in 2018.
Our delivery is very based on the stock that we maintain for new shades a quick
dye to match from our highly sophisticated lab and skilled technical team.
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 General packing
KDS packaging, being one of the first corrugated carton manufacturers in
Bangladesh, maintains its leading position by deploying state of the art, fully
automatic board plants along with other advanced machineries.
In order to meet continuous customer demand and ensure world class service, KDS
now have two plants in strategic locations in Bangladesh making it accessible to
the industry geographically. Both plants together it produces the highest number of
carton boxes in Bangladesh. We employ intelligence in developing packaging
products. Our solution-based products and services help in reducing lad time,
improving quality, and providing overall value savings for the end-users of our
boxes. Our packaging products are approved by H&M, Levies, Nike, GAP,
Promodoro, IKEA and many more.
KDS packaging is also very familiar in producing the cartons of the following
world renowned buyer like Walmart, George UK, ZARA, K-Mart, C&A, JCP,
CSI, Marks & Spencer, Tesco etc.
 Hangers
Having more than 25 years of experience we have set an example in the industry
by being the frontrunner in securing a strategic partnership with global retailers for
distributing floor ready hangers across the world. These strategic relations are
continuously evolving into ever stronger partnership with new retailers and their
sourcing agents.
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 Poly bags
KDS Accessories has by far one of the biggest polybag manufacturing facilities in
Bangladesh which is established in 1991.
The quality of our poly bags with respect to strength & variety keeps the customers
satisfied and the Competitors away. We manufacture blister poly and hanger poly
bags, including eight color print with adhesive tape. Furthermore. We have ziplock poly manufacturing facilities in place to cater the certain need of certain
customers. KDS poly bags are used by buyers. Who require quality at the best
possible price like Tommy Hilfiger, NEXT, FILA, Tesco.
Finance & Accounts: The Company maintains accounting software namely
“Accounts Management System”, developed by internal IT department.
Management of the company is fully dependent on this software for internal and
external reporting. Besides this, the company also maintain as HRIS software to
maintain Human resources and payroll of the organization.
Seasonal Aspect of the Company’s Business: There is no such seasonal aspect of
the company’s business as it receives orders from the buyers throughout the year.
However, sales decreases during September to November and treated as lean
production season which is very generic to the RMG export industry.
Known Trends, Events or Uncertainties:
Known events that may affect the business operations of the company are:
• Up-trend price of raw material in the international market
• Shortage of power supply
• Government policy and natural disaster
• Political instability
• Technological advancement
• Downturn in the garments sector
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Personnel Related Scheme
The Company believes in supporting its employees and offering incentives and
bonuses for its continued profitability and growth. With a view to supporting these
objectives, KDS Garments Limited operates an unrecognized contributory
Provident Fund and Gratuity scheme. Moreover, company also introduces workers
Profit Participation and Welfare Fund facilities for the employees as per Labor Act
2006. Short descriptions about them are presented below:
 Short Term Employee Benefits
Salaries, bonuses and allowances are accrued in the financial year in which the
associated services are rendered by the employees of the Company.
 Workers’ Profit Participation & Welfare
Fund the Company maintains a Worker’s profit participation & welfare fund as
per the requirement of The Companies Profit (worker’s participation)
(amendment) ordinance 1985 & Labor Act 2006 but no Board of Trustees have
yet been constituted.
 Provident Fund
The company maintains an Unrecognized Provident Fund for its officers only.
Both the employees and company contribute 10% of basic salary to the fund.
 Gratuity
The company maintains a Gratuity scheme for its officers only. Officers are
entitled to gratuity when their length of service reaches five years. Provision has
been made in the books on monthly basis based on the rules of the scheme.
 Statement of Compliance
The financial statements of the company under reporting have been prepared on a
going concern basis following accrual basis of accounting except for cash flow
statement in accordance with the International Accounting Standards (IASs) and
International Financial Reporting Standards (IFRSs) as adopted in Bangladesh by
the Institute of Chartered Accountants of Bangladesh as Bangladesh Accounting
Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs).
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 Regulatory Compliance
as required, KDS Garments Limited complies with the following major legal
provisions in addition to the Companies Act 1994 and other applicable laws and
regulations:
a) The Income Tax Ordinance 1984
b) The IncomeTax Rules1984
c)The Value Added Tax Act 1991
d)The Value Added Tax Rules 1991
e) Securities and Exchange Commission Rules 1987
f) The Customs Act 1969
g) The Labor Act 2006
3.2 sales and Marketing policy of KDS Garments
3.2.1 Products:
Product is the core of all marketing activities. There are two types of organizations
according their product. Some organization’s core product is goods on the other
hand some organization’s core product is service.
Range of Products:
Range of products here represents different types of items of products. The
pharmaceutical companies divide their medicines into three categories- infusions,
formulations and pharmaceuticals. The total number of products KDS has is 32,
whereas competitive company has about 25-27 types of products within their
Garments range. Therefore, Square is occupying the leading position in producing
the widest range of products. MNU Garments is currently marketing about 17
products. Babyloon holds the fourth position. Teehung and markets a
comprehensive range of more than 20 products covering all major product cotton,
level, elastic, zipper, bottom etc. Olympic have the lowest range of products
compared to the above-mentioned companies. The survey results, as depicted in
the above figure, more or less reflect the reality. However, it fails to show the huge
gap in the product range between KDS and MNU. According to the clients, the
difference between the product ranges of the two companies is narrower. The other
bar in the figure above mostly represent
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Product Quality
The quality of any product includes everything associated with it, ranging from the
raw materials to the effectiveness when consumed. Client usually emphasizes on
less side long time and quality product.
Product Decisions
The term “product” refers to tangible, physical products as well as services. Here
are some examples of the product decisions to be made:
 Brand name
 Functionality
 Styling
 Quality
 Safety
 Packaging
 Repairs and Support
 Warranty
 Garments and services
Product list of KDS
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Product Presentation
The product presentation of any product includes everything associated with it,
ranging from the color to the design. It has been found that the companies can even
charge a high price if their product presentation is good even if it is of the same
quality as the others. According to the Clients opinion, KDS has the leading
position in terms of product presentation. MNU and Babylon also have good
positions in terms of product presentation. This is due to the fact that some their
products are imported from abroad.
Moreover, the imported raw materials have very few alternatives in the local
market. KDS competitive position is not quite good in terms of product
presentation.
Product design and style
Although product design varies from company to company, but the leading local
and foreign companies have certain standard on product designing that is
acceptable to world market. They use quality design of packs.
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Price
In the garments market of Bangladesh, there is not much price differentiation, in
general, among the different companies due to the highly competitive nature of the
industry. Whatever price differentiation is there, it is between the multinationals
and the national companies. It is due to the fact that the multinationals charge a
premium price for their product. Moreover, price is not a very important factor due
to the nature of the product.
Quality is more important. However, the purchasing capacity of the clients is also
an important consideration. Therefore, it is important for the companies to charge a
reasonable price for their product. According the survey, most of the company as
offering reasonable pricing for their product. It may be due to the fact that KDS
has recently come up with a very competitive price for some of its key products.
Price Decisions
Some examples of pricing decisions to be made include:
and wholesale pricing
Pricing Strategies
KDS Garments Limited maintain competition-based pricing strategies. In the
Garments market there, is not much price differentiation, in general, among the
different companies due to the highly competitive nature of the industry.
Price is not a very important factor due to the nature of the product. Quality is
more important. However, the purchasing capacity of the clients is also an
important consideration. Therefore, it is important for the companies to charge a
reasonable price for their product.
According the survey, most of the company suggest KDS as offering reasonable
pricing for their product. It may be due to the fact that KDS has recently come up
with a very competitive price for some of its key products.
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Pricing strategy for new product
Since the government strictly controls price of Garments products, a new
company should adopt shadow or indirect pricing method.
Pricing Approach
The prices of products under controlled category are determined by the
government. The manufacturing companies are allowed to propose the prices of
the products that are under decontrolled category and the approvals of these
proposed prices are given by the government. Since the local government
strictly controls price of Garments products, there is a very negligible price
difference. The maximum price of a product shall be just double the price of TP
plus value added tax at 8% VAT. But, the price of raw materials is competitive
which is fixed based on international market situation. As Garments
manufacturers have to depend on imported raw materials, increase in prices of
raw materials internationally impact directly to the cost of production.
Distribution (Place) Decisions:
Distribution is about getting the products to the customer. Some examples of
distribution decisions include:
logistics
Basic Requirements for recruiting a Sales Representative:
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Major Responsibilities
to choose the right and potential client, like:
Regency, KDS.
es department
42-day long Induction Training Program to develop
Channel design
KDS has its own large distribution network having many depots all over the
country. They make the products available in all Garments office. The depots
are located in Dhaka, Chittagong & Comilla. KDS marketing their products in
13 countries of the world through our distribution partners.
3.2.2 Promotion
Due to high competition in the industry among the different players in the
market, aggressive marketing has been adopted by the different companies. In
this regard, promotion has become a useful tool to fight competition. Moreover,
promotional materials of companies have an impact on client. Therefore,
different companies have set out different promotional tools to increase market
share.
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Promotion Design
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 includes
 Promotional strategy
 Advertising
 Personal selling & sales force
 Sales promotions
 Public relations & publicity
 Marketing communications budget
Promotional Strategies
Before clients can benefit from the steady stream of Garments flowing from this
type industry, an important part of the fast-moving process of innovation is to
keep the company, Garments and other company up to date with the work going
on in research and to inform them about the availability of new products.
Studying different market characteristics is the main function of marketing
department. There are different types of market for products. According to the
market characteristics a product can be classified in three major parts: So
personal selling is the way the products can be advertised and sold. As, Over
the Counter products do not require any rule to buy or sell it has a chance to go
through print advertising and television advertising. Different buying behavior
has a great impact on marketing a product. Understanding the consumer’s
buying attitude is the first job of any marketer. To analyze behavior, the
marketer has to visit the place, gain knowledge about their financial condition,
culture, tradition and the competitor position.
Advertising Appeals
“Perception defined: “Perception is defined as the process by which an
individual select, organizes and interprets stimuli into a meaningful and
coherent picture of the world.” It can be described as “how we see the world
around us.” For Garments products, clients are the ultimate consumers of the
products. However, in most cases they purchase those products that are
suggested by the satisfied clients.
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3.3 Financial Risk of KDS Garments
An investment in equity carries risks. Investors should carefully consider all the
information in this Prospectus, including the risks and uncertainties described
below, before making an investment in equity shares of KDS Garments
Limited. Any of the following risks as well as other risks and uncertainties
discussed in this Prospectus could have a material adverse effect on business,
financial condition and results of operations of KDS and could cause the trading
price of Equity Shares to decline, which could result in the loss of all or part of
one’s investment. In addition, the risks set out in this Prospectus may not be
exhaustive and additional risks and uncertainties, not presently known to us, or
which we currently deem immaterial, may arise or become material in the
future. Unless otherwise stated in the relevant risk factors set forth below, we
are not in a position to specify or quantify the financial or other risks mentioned
herein:
A. Interest Rate Risk
Change in interest rates and banking policies resulting in an increase in
financial expenses may have an adverse effect in Company’s profitability. The
company is dependent on bankfor working capital requirements. Therefore, any
change in the existing banking policies or increase in the interest rates may
reduce profit of the company.
Management Perception
The management of the Company is always aware of the interest rates at which
the debts of the company are being financed. Management finances both longterm & short-term funds at competitive rates. The company has been repaying
borrowed funds on a continuous basis to reduce such interest risk.
b. Exchange Rate Risk
The company carries foreign exchange rate fluctuation risk as it imports raw
materials against payment of foreign currency. Unfavorable volatility or
currency fluctuation of foreign currency to BDT exchange rate may have
negative impact on the cost structure and profitability of the company
Management Perception
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The risk of foreign exchange cannot be eliminated fully as we would have to
import raw materials. However, the management is always alert in minimizing
the negative impact of currency fluctuation cost by identifying new sources of
raw materials and constantly negotiatingwith suppliers for reducing price.
Furthermore, as a natural hedge, this 100% export-oriented company enjoys the
benefits of any further devaluation of BDT in against foreign currency.
c. Industry Risks
Due to lower barriers to entry in this sector, Competition may increase with too
many new players. If economic growths as well as development activities of the
country are not up to the mark, market will be more competitive due to excess
capacity in the industry.
Management Perception
KDS Garments Limited is the largest export-oriented carton box producing
company in Bangladesh. Since inception, the company has tried and
accomplishes to provide the best quality of its products to its valuable clients
without any topsy-turvy state of affairs as being a partner of this fraternity.
These made the company pioneer in Garments sector. Moreover, at the end of
the third quarter of 2013 the company has introduced three more products in
their product line i.e. Label, Narrow Fabrics, Elastics etc.
d. Market and Technology-Related Risks
Change / up gradation in technology is one of the key factors for the sustainable
growth of business operations. Inability to adapt required changes/up gradation
in technology may place the competitors at an advantage in terms of costs,
efficiency and delivery of products and consequently would have an adverse
impact on business operations and financial condition of the company
Management Perception
KDS owns modern technology with R&D infrastructure and able to adapt any
new inventions with moderate investments as it had been doing in the past. As
part of this philosophy KDS is the first who has comprehensive Heat Transfer,
Label printing facility in Bangladesh with the most advanced line of equipment
& material meeting global standards & safety compliances.The Company is
aware of technological changes and has adopted new technology according to
its needs. Furthermore, routine and proper maintenance of equipment carried
34
out by the company ensures longer service life for the existing equipment and
facilities.
3.4 Major Raw Material and procurement process
To facilitate international sourcing of raw materials, KDS Garments Division has
operations in Hong Kong with a highly experienced sourcing team, responsible for
global supply chain network. This service allows clients to step down on
production cost. As a large-scale buyer KDS avails the best possible price with the
assurance on agreed lead time. In the head office, the company has a separate
sourcing team to monitor and control sourcing facilities. The basic raw material for
producing packaging products is medium paper, liner paper, duplex paper and
adhesive gum which are imported mainly from Australia, Canada, China, USA,
Thailand, Korea & Srilanka. KDS maintains a strong relationship with the
suppliers. The major supplier of raw material is Firn Overseas, Visy Paper PTY
Ltd., Cooperative Trading Global Inc, Inter Pacific Paper Co. Ltd., Panjapol Paper
Industries Co. Ltd. etc. To ensure availability of raw material in view of lead time
and factors for smooth production process, the Company maintains safety stock,
minimum stock levels etc.
3.5 IT in MIS and Internal Control
Application of information technology in every phase of the Garments Garments
industry is vital. Integrated software provides real time information to the
management to take prudent decision. Accounts Department of KDS uses
customized IT facilities to record all day to day business
transactions.
However, integrated software is yet to be initiated, which may facilitate to manage
the whole operation in a more sophisticated manner. Segregating and delegation of
work and responsibility is properly defined among individual employees through
the establishment of a well-functioning internal control. Besides, the core
functionality of internal audit is delegated to an audit team constituted by 4 nos.
personnel’s who are from renowned audit firms. The team prepares a monthly
internal audit report and makes power point presentation of the same before the
Directors and high-officials of the Company.
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3.6 Market Position of KDS
being one of the first corrugated carton manufacturers in Bangladesh, maintains its
leading position by developing State Of The Art, fully automatic board plants
along with other advance machineries. The products of the company include
carton, box carton, printed tags, label, back lift, neck lift etc. Various types of
packaging items include 3 ply, 5ply, 7ply, master carton, inner carton, PDQ Box,
divider board and printed items- label, tag, bar code, back board, neck board etc.
KDS produces to meet the in-house demand (5-7% of total revenue) although a
large quantity sales are made to local buyers (93-95% of total revenue) through
Back to Back L/C. Captive buyers of the company include Cosmopolitan Fashions
(Pvt.) Ltd., FCI (BD) Ltd., Four H. Fashions Ltd., HKD International Ltd., Jeans
Plus Ltd., Karnaphuli Sports Wear Industries Ltd., Kenpark Bangladesh (Pvt.) Ltd.,
MBM Garments Ltd., Merim Co. Ltd., Metro Knitting & Dyeing Mills Ltd., Saver
Sportswear Co. Ltd., Seatex Ltd., Section Seven Ltd., Sinha Industries Ltd., Smart
Jeans Ltd., Square Fashions Ltd., Sterling Creations Ltd., Vision Apparels (Pvt.)
Ltd. and Youngone (CEPZ) Ltd., Same kind of packaging items is also being
produced by MU Garments Limited, Beta garments Limited, Tehang Limited, UNI
LABEL Limited, Shovon Packaging, Montrims, DBL garments, Babylon,
Epylion etc. However, KDS has a market share of about 15%.
36
CHAPTER-FOUR
ANALYSIS AND EVALUATION OF MARKETING MIX
37
4.1 Marketing mix
jljj
The marketing mix definition is simple. It is about putting the right product or a
combination thereof in the place, at the right time, and at the right price. The
difficult part is doing this well, as you need to know every aspect of your business
plan. As we noted before, the marketing mix is predominately associated with the
4P‟s of marketing, the 7P‟s of service marketing, and the 4 Cs theories developed
in the 1990s. Here are the principles used in the application of the right marketing
mix:
Marketing mix 4P’s
Price
Product
Target
Market
Place
Promotion
A marketing expert named E. Jerome McCarthy created the Marketing 4Ps in the
1960s. This classification has been used throughout the world. Business schools
teach this concept in basic marketing classes.
38
The marketing mix of KDS Garments
1. Product
A product is an item that is built or produced to satisfy the needs of a certain group
of people. The product can be intangible or tangible as it can be in the form of
services or goods. We must ensure to have the right type of product that is in
demand for your market. So, during the product development phase, the marketer
must do an extensive research on the life cycle of the product that they are
creating. A product has a certain life cycle that includes the growth phase, the
maturity phase, and the sales decline phase. It is important for marketers to
reinvent their products to stimulate more demand once it reaches the sales decline
phase. Marketers like KDS garments must also create the right product mix. It may
be wise to expand your current product mix by diversifying and increasing the
depth of your product line. All in all, marketers must ask themselves the question
“what can I do to offer a better product to this group of people than my
competitors”.
2. Price
The price of the product is basically the amount that a customer pays for to enjoy
it. Price is a very important component of the marketing mix. It is also a very
important component of a marketing plan as it determines the KDS garments profit
and survival. Adjusting the price of the product has a big impact on the entire
marketing strategy as well as greatly affecting the sales and demand of the product.
This is inherently a touchy area though. If a company is new to the market and has
not made a name for them yet, it is unlikely that your target market will be willing
to pay a high price. Although they may be willing in the future to hand over large
sums of money, it is inevitably harder to get them to do so during the birth of a
business. Pricing always help shape the perception of your product in consumers
eyes. Always remember that a low price usually means an inferior good in the
consumers‟ eyes as they compare your good to a competitor.
39
Consequently, prices too high will make the costs outweigh the benefits in
customers eyes, and they will therefore value their money over your product. Be
sure to examine competitors pricing and price accordingly. When setting the
product price, marketers should consider the perceived value that the product
offers.
There are three major pricing strategies, and these are:
3. Place
Placement or distribution is a very important part of the product mix. We have to
position and distribute the product in a place that is accessible to potential buyers.
This comes with a deep understanding of KDS Garments target market.
Understand them inside out and you will discover the most efficient positioning
and distribution channels that directly speak with your market. There are many
distribution strategies, including:
4. Promotion
Promotion is a very important component of marketing as it can boost brand
recognition and sales. Promotion is comprised of various elements like:
Advertising typically covers communication methods that are paid for like
television advertisements, radio commercials, print media, and internet
advertisements. In contemporary times, there seems to be a shift in focus offline to
the online world. Public relations, on the other hand, are communications that are
typically not paid for. This includes press releases, exhibitions, sponsorship deals,
seminars, conferences, and events. Word of mouth is also a type of product
promotion. Word of mouth is an informal communication about the benefits of the
40
product by satisfied customers and ordinary individuals. The sales staff plays a
very important role in public relations and word of mouth.
It is important to not take this literally. Word of mouth can also circulate on the
internet. Harnessed effectively and it has the potential to be one of the most
valuable assets you have in boosting your profits online. An extremely good
example of this is online social media and managing a firm’s online social media
presence. Promotion will depend on your budget, the message you want to
communicate, and the target market you have defined already in previous steps.
Job Responsibilities:
1. Maintain a data base.
2. Making cold call
3. Fix an appointment
4. Daily sales and visit report
5. Giving guidelines to the new comers
6. Attend team meeting
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4.2 Analysis of Marketing Mix of KDS Garments
1.Capital of KDS Garments what is the relation between this item and the
topic, delete this analysis
Analysis:
KDS Garments Limited is the largest export-oriented carton box producing
company in Bangladesh. Since inception, the company has tried and accomplishes
to provide the best quality of its products to its valuable clients without any topsyturvy state of affairs as being a partner of this fraternity.
42
These made the company pioneer in Garments sector. Moreover, at the end of the
third quarter of 2015 the company has introduced three more products in their
product line i.e. Label, Narrow Fabrics, Elastics etc.
2. Total Sales of KDS Garments in 2019
43
Analysis:
KDS Garments does not have any single customer who provides 10% or more
revenue of the company. It is good indicator for KDS. There are many which
generates less than 7% revenue from products. But KDS minimum revenue is 10%.
3. Sales, GP & NPAT with sales growth
2014
2015
2016
2017
2018
2019
Sales
680
810
970
1210
1650
1700
GP
138%
13%
26%
21%
31.78%
9.06%
NPAT
0.7%
0.60%
0.80%
0.70%
0.60%
0.70%
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Analysis:
Since commercial operation on 1 July 1991 there was a steady growth in the
revenue of the company showing maximum growth of 138% in the year 2014. In
2018 revenue of KDS Garments Limited increased by 31.78%mainly due to
commencement of new products (i.e. Label, Narrow Fabrics, Elastics) from the
end of 3rd quarter of 2018. In the year 2017 profit declined due to introduction of
Deferred Tax as required by Bangladesh Accounting Standard. During 2017 and
2018 re-arrangement of expense heads was made to conform Accounting
Standards resulting an increased Gross Profit although it had no effect in the
Operating Profit. In the year 2015 sales growth was 9.06% but comparatively
profit was not satisfactory. It was due to the political unrest throughout the year.
45
4. Product distribution Channel of KDS Garments
Highly Agree
12%
Agree
28%
Neutral
48%
Disagree
12%
Highly disagree
0%
Analysis: The graph shows that distribution channel of KDS Garments. 12%
respondent are highly agreed with current distribution channel that used by KDS
Garments is very good. 48% respondent think it is normal like other garments
company. 12% respondent think that current distribution channel is not good
enough. To increase sales, they need to modify their distribution channel.
46
5. Product line or number of products of KDS Garments
Highly Agree Agree
17%
37%
Neutral
42%
Disagree
4%
Highly Disagree
0%
Analysis: The graph shows that Product line of KDS Garments. 17% respondent
are highly agreed with current product line system that used by KDS Garments is
very good. 42% respondent think it is normal like other company. Only 4%
respondent think that product line is not good enough. They need to increase their
product line.
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6. Product Quality of KDS Garments products
Highly Agree Agree
37%
42%
Neutral
18%
Disagree
3%
Highly
disagree
0%
Analysis: The graph shows that product quality of KDS Garments. 37%
respondent are highly agreed with current quality that provided by KDS Garments
is very good. 42% respondent mark as only good. And 18% respondent think it is
normal like other re-rolling company. Only 3% respondent think that current
quality is not good enough.
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7. Price range of the products
Highly Agree Agree
12%
28%
Neutral
48%
Disagree
12%
Highly
disagree
0%
Analysis: The graph shows that price range of KDS Garments. 12% respondent are
highly agreed with current product price is reasonable for all classes of people.
48% respondent thinks it is normal like other company. 12% respondent think that
current price is high.
49
8. Price against other Garments company
Highly Agree Agree
13%
38%
Neutral
35%
Disagree
12%
Highly
Diagree
2%
Analysis: The graph shows that price against other company. 38% respondent are
highly agreed with current price that lower than other garments company like
Pacific Jeans. 35% respondent think it is normal like other garments company.
12% respondent think that current price is higher in some product against other
company. To increase sales, they need to change their price.
50
9. Different kinds of offer for client of KDS Garments
Highly
Satisfied
17%
Satisfied
Neutral
25%
38%
Dissatisfied
17%
Highly
Dissatisfied
13%
An
alysis: The graph shows that different kinds of offer for wholesaler. KDS
Garments provide some bundle offer different kinds of foreign clients for
encourage them for increasing sale. 25% respondent are highly agreed with current
offer that used by KDS Garments is very good. 38% respondent think it is normal
like other company. 17% respondent think that current offer is not good enough.
To increase sales, they need to attractive their offer.
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10. Offer in Quantity that Provided by KDS Garments
Highly
Satisfied
23%
Satisfied
22%
Neutral
38%
Dissatisfied
15%
Highly
Dissatisfied
2%
Analysis: The graph shows that quantity offer policy that provide by KDS
Garments. 22% respondent are highly satisfied with present quantity policy that
provided by KDS Garments is very good. 38% respondent think it is normal like
other company. 12% respondent think that present quantity offer is not good
enough. To increase sales, they need to modify their offer in quantity.
11. After sales service of the KDS Garments
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Highly Agree
Agree
Neutral
Disagree
42%
37%
18%
3%
Highly
Disagree
0%
Analysis: The graph shows that after sales services of KDS Garments. 42%
respondent are highly agreed with current services that used by KDS Garments is
very good such delivery on site free of cost. 18% respondent thinks it is normal
like other company. Only 3% respondent think that current facilities is not good
enough. To have to increase after sales services.
Promotional activities:
1.Promotion via newspaper& television that provided by KDS Garments
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Highly Agree
Agree
Neutral
Disagree
42%
37%
18%
3%
Highly
Disagree
0%
Analysis: The graph shows that newspaper and television promotion of KDS
Garments. 37% respondent are highly agreed with current promotional
procedure. KDS Garments provides regular advertisements on Tv channel and
newspaper. People understand more clearly about KDS Garments. 18%
respondent think it is normal like other company.
2. Promotion via Online
54
Highly Agree
Agree
Neutral
Disagree
32%
30%
28%
10%
Highly
Disagree
0%
Analysis: The graph shows that online promotions of KDS Garments. 30%
respondent are highly agreed with current promotional procedure. KDS
Garments provides regular update on websites. This type of promotion is very
helpful for the business. 10% respondent think it is normal like other company.
3. Target Marketing policy of KDS Garments
55
Highly
Agree
22%
Agree
Neutral
Disagree
38%
28%
12%
Highly
Disagree
0%
Analysis: The graph shows target marketing of KDS Garments. 38%
respondent are highly agreed with current target marketing policy of KDS
Garments is very effective. Because KDS Garments target marketing such as
real estate company. 28% respondent think it is normal like other company.
Only 12% respondent think that target marketing is not in this sector. They need
to change their policy.
Impact of Marketing Mix
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1. Impact on Sales of KDS Garments
Year
2015
Percentages 7.30%
2016
2017
2018
2019
8.50%
8.30%
10.50%
14.23%
A
n
a
l
y
s
i
s
:
T
h
e
graph shows that how marketing policy of KDS Garments helps in sales in
last five years 2015-2019. In 2016 sales increasing about 8.50%. But in
2017 it was 8.30% that means decreasing. In 2018 it was 10.50% which is
higher than 2015, 2016 means increasing. In 2019percentages was 14.23%.
KDS Garments runs their business with higher sales because of effective
marketing.
2. Impact on Profit earning of KDS Garments
Year
2015
2016
2017
2018
2019
57
Percentages 3.20%
4.10%
4.23%
4.70%
5.13%
Analysis: The graph shows that how marketing policy of KDS Garments helps in
profit earning in last five years 2015-2019. In 2016 profit increasing about 4.10%.
In 2017 it was 4.23% that means increasing. In 2018 it was 4.70% which is higher
than 2015, 2016& 2017 means increasing. In 2019 percentages was 5.13%.
3.Impact on Market share KDS Garments
58
Year
2015
Percentage 18.23%
2016
2017
2018
2019
15.23%
16.65%
18.51%
18.72%
Analysis: The graph shows that how marketing policy of KDS Garments helps in
market share in last five years 2015-2019. In 2016 market share was 15.23%. In
2017 it was 16.65% that means increasing. In 2018 it was 18.51% which is higher
than 2016& 2017 means increasing. In 2019 percentages was 18.72%
59
CHAPTER – FIVE
FINDINGS, RECOMMENDATIONS & CONCLUSION
60
5.1 Findings
 Product: Very little variation in the product line. So, it is establish the
product in new market.
 Price: Some products price is higher than other company. For covered the
whole market it is a threat for KDS Garments.
 Place: Place coverage of KDS garments is not perfect area. Transportation
system is not good enough. That’s why sometimes they are late in delivery.
 Promotion: KDS garment doesn’t advertise their company products and
services in different media.
 Sales Target: Sales target of KDS Garments is not well developed. With
discussion supervisor impose target which is hard to fulfill by the sales
team.
 Marketing department: Marketing department of KDS Garments is not well
structured.
 Product quality: Product quality is average like MNU Garments, Teehung
Garments etc.
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5.2 Recommendations
 Product: Need to develop the product line to attract more customer.
 Price: Some products price is higher than other company. So, product price
must be developing with other company.
 Place: Need to move their main factory in easy transportation area.
 Promotion: KDS garments should develop their promotional activities to
attract more customers.
 Sales Target: Sales target should be developed after the discussion with
sales team.
 Marketing department: Marketing department of KDS Garments should be
well structure.
 Product quality: Product quality is average. So, KDS need to improve their
product quality.
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5.3 Conclusion
We should study marketing because in our personal life, we all use selling
techniques. In my internship program, I found marketing is really an interesting
job. If we want to work in business, we need to know about marketing because
marketing people play a vital role in the welfare of an organization. Marketing job
is really interesting because of the variety of people encountered and activities
undertaken. In addition, marketing offers opportunities for financial rewards and
promotions. Marketing people engage in a wide range of activities including
providing information of products and services to customers and employees as
well. Most of us are not aware of many of these activities because the
salespeople we meet most frequently work in retail stores. However, the most
exciting, rewarding and challenging sales position involve building partnerships:
long term, win-win relationship with customers. Working in KDS Garments
Limited. I found marketing in a new way. KDS Garments Limited is the largest
garments Garments producing company in Bangladesh. Since beginning, the
company tried and accomplishes to provide the best quality of its services to its
clients without any topsy-turvy state of affairs.
After completing my internship program, I have gathered a lot of knowledge
about corporate world and marketing and sales policy of a company. In my
internship program I have found some problems which is directly related with the
company. If the company remove those problems by observing my suggestions
hope they will run their business more successfully.
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References:
Add references here:
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