Executive Summary
Since independence Bangladesh has come a long way, and the Beximco Group of Companies is
honored to have had a role in the development of its parent nation. The Group has worked with a
simple philosophy; identify an important need and then do everything possible to successfully
satiate that need, in a manner, which best facilitates the well-being of the nation. As a result
Beximco has focused on those industries, which give Bangladesh a competitive advantage in the
global market place in many cases creating the industries for the first time in the region.
Presently Beximco Group comprises twenty one companies of which five are listed with the Dhaka
Stock Exchange employing over 35,000 personnel and is the largest private sector industrial
conglomerate in the nation. . In the course of its growth, it has created industrial and management
capabilities that will serve the country for generations to come. It was the first local conglomerate to
embrace an international corporate structure which is the foundation of its success. BEXIMCO’s
industrial businesses include jute, textiles, basic chemicals, pharmaceuticals, and ceramics.
Introduction:
Internship is the mandatory for all MBA students to fulfill his Master of Business Administration in
Marketing because it gives first-hand experience of the complexities of practical life. As a result it
benefits the students to relate our acquired knowledge with practical job life. The prime objective of
the internship program is to work under organizational environment so that, we can tern up
ourselves as professionals with practical experience and can get a opportunity to reconcile the
theoretical knowledge with real life situation. For this reason internship is an indispensable part of
MBA program. I try to prepare this report on the basis of practical knowledge, which I gather from
this organization.
Origin of the report:
As a part our MBA program I have to accomplish my Internship from an organization. And in this
process I have completed 3 months internee in Beximco Textile limited. Beximco is one of the largest
organizations in our country and I have to involve all most all activities related with marketing. This
company has four sections and I’m involved in the woven fabric section. I work only in head office of
this company. The report mainly concentrates on the processing system of buyers order on woven
fabric in the Beximco textile Limited (Head Office).
Objectives of the study:
The study attempted to explore and examine the present market situation of Textile and the
Marketing Implications in Textiles Industry specially the objective of the study as follows:
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To know the present scenario of the market of BexTex Ltd.
To identify the marketing objectives of BTL.
To analysis the marketing mix strategies of BTL.
To learn about the product manufacturing policies of BTL.
To know the quality control system of BTL.
To know the market controlling policies of BTL.
To find out the operational procedure of BTL.
To learn about the different challenging segment of BTL.
To know about the marketing environment of BTL.
1.1 Methodology of the study:
I have used both primary and secondary data for preparing this report. But most of the data are
collected from primary source. I observed various activities of Beximco Textile Limited. My practical
experience in Beximco Textile Limited (Head Office) was a great source of information.
(A) Primary source of Data:
Primary data is collected through unstructured personal interview with officials of Beximco Textile
Limited.
Day to day desk job (Informal conversation with the clients)
(B) Secondary source of Data
Annual report on BexTex Ltd.
Recent published brochure of BTL.
Prospectus of BexTex Ltd.
Published journal and articles on textile market in Bangladesh.
Some of the data are collected from internet.
1.2 Limitation of the study:
The limitations of the report including the following:
Lack of time: one of the major limitations of the study was limited time. The nine allocation of the
study was inadequate. Because in this short time one inter student had to both attend the office and
also do the survey. For the scarcity of time I could not communicate largely with concern persons
and authority, which would be very helpful for preparing, the report could be made much more
comprehensive.
Administrative secrecy: Another major problem every private company maintains some secrecy of its
sales and Bextex Ltd. Was not expected in this regard. The authority kept much information as
secrete.
Lack of adequate information: there was lack of necessary information what I was needed. That is
primary and secondary data.
The training department has failed to give proper direction.
Information’s is not updated.
Lack of knowledge about textile industries.
Lack of self-knowledge concerning report preparation, was also a limiting factor in preparing a better
report.
The secondary data that have been observed was in a form, which is not helpful for this study.
The Company Profile
2.1 Establishment and History:
Beximco Group is the largest and most diversified business conglomerate in the private sector in
Bangladesh. It employs about 25,000 people and its core businesses are Textiles, Jute, Chemicals,
Real Estate, Ceramics, Marine Foods, and Trading. Beximco holds 17% of the market capitalization of
Dhaka Stock Exchange.
Beximco Textiles is one of the leading and technologically most advanced textile industries in Asia.
Our vertically integrated operation is located on 200 acres of private industrial park in Dhaka,
Bangladesh.
Padma Textile Mills Ltd, the yarn manufacturing unit produces 36 million pounds of ring spun yarn
per year.
Beximco Textiles Ltd. weaves, dyes and finishes 100,000 mts. of fabric per day. It produces Solid and
Yarn dyed fabrics like Twill, Canvas, Sateen, Poplin, Dobby, Oxford, Seersucker, Chambray etc. in
various compositions like 100% Cotton, T/C (65p/35c), CVC (60c/40p) etc. It also produces stretch
fabrics and the garments made out of our stretch fabric can use the Dupont Lycra label. It can insert
a maximum of 6 colors in the weft and do various finishes like wrinkle-free, chintz, paper touch,
teflon (Dupont), water repellent, dry and wet peach, airo finish etc. It is very strong in cotton
wrinkle-free products and can achieve a D.P. rating of 3.5+. Its fabric is Oekotex certified and is
produced from high quality ring spun, auto-spliced, electronically cleaned yarn, woven on latest
Toyoda air -jet looms from Japan and continuously dyed, finished and pre-shrunk on state -of-the art
machines from Monforts, Theis, Goller, Beninger of Europe.
Beximco Knitting Ltd. produces 14 tons per day of a wide range of knit fabrics like Single Jersey, Polo
Pique, Lacoste, bubble-knit, waffle knit, popcorn, herringbone, lycra jersey, auto/feeder stripe
pique/jersey, engineering stripe etc. Its special items include, semi-jacquard, teflon finish, UV
protection finish, core-spun wrinkle-free fabrics etc.
Beximco Denims Ltd. manufactures 18,000 yds. per day of Indigo Denim, bull twills, sulphur black
denims, slub denims, stretch denims, dobby denims etc. in weights ranging from 4.5 oz to 13.00oz.
Five apparel manufacturing units, Beximco Apparels Ltd. (1 & 2), IKAL (1&2), and Beximco Fashions
Ltd. produces about 20 million pieces of apparels per year (mostly dress/casual shirts, bottoms, polo
shirts etc.).
Freshtex (BD) Limited, a world class washing plant, put up in collaboration with ALT Group of
Germany does various washing including sandblasting, whiskering, tie-dye etc.
Apart from manufacturing, we have also focused on innovation and service. Our R&D cell is
constantly looking for possible new developments. Our designers are directly linked with Spanish,
Italian, and German fashion houses and are in active interaction with key customers in USA and
Europe. We visit various trade shows and exhibitions like MAGIC, Premiere Vision, Expofil, Texworld
etc. Our enterprise wide software and private satellite connection enables us to link with our
customers as well as suppliers.
We are major user of US Pima cotton for high-value fabrics with fine counts like 50/1, 60/2, 80/2,
100/2 etc. We have license agreement with Supima and Cotton USA to use labels on garments.
In the US we are supplying to Phillips Van Heusen (DKNY, Calvin Klein, Kenneth Cole, Arrow, Geoffrey
Beene, Izod, Bass, John Henry etc.), JC Penney, The Gap, Perry Ellis, Levi’s (Dockers, Levi’s etc.),
Federated etc. In our roster of European buyers we have NEXT, Zara, H&M, C&A, Carrefour, Auchan,
BHS, M&S, Hagger, IC Company, Marks & Spencer, Mango etc.
2.2 Company Mission:
Bextex Ltd. is a full service vendor with strong vertically integrated production facilities as well as
creative & analytical capabilities which clearly sets us apart from most other South Asian vendors.
2.3 Company 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
2.4 Their Commitment to the Environment:
Our company is very committed to preserve a healthy and pollution-free environment. It has a very
efficient waste collection and disposal system. In order to reduce air pollution by exhaust of gas from
engine-generators, it maintains a costly plant that uses the exhaust gas to generate steam for chilling
unit. Above measures not only help keep the water & air free from pollution but also help save cost
of water treatment & air conditioning. Your company uses only AZO-free dyes and is dedicated to
ensure a healthy and eco-friendly environment.
BEXTEX Limited
Corporate Headquarter
Operational Headquarter
Factory
Date of Incorporation
Commercial Production
Business Line
Listing Status
Stock Exchange Listing:
Authorized Capital in BDT:
Paid Up Capital in BDT:
Number of Shareholders:
Number of Woven Loom Installed:
17 Dhanmondi R/A, Road No. 2
Dhaka -1205, Bangladesh
Phone:8611891-5,8618220-7,9677701-5,7701165
E-mail:beximchq@bextex.net
Web Site: www.bextex.net
Sarabo, Kashimpur, Gazipur
BeximcoIndustrial Park,
Sarabo, Kashimpur, Gazipur
30 May, 1984
1990
Manufacturing and Marketing of Yarn, Woven, knit and
Denim Fabric.
Public Listed Company.
Dhaka and Chittagong.
3,000 Million Taka
1,882.50 Million Taka
37,929
293
Number of Spindles Loom Installed:
Number of Denim Loom Installed:
119,520
56
Number of Circular Knit Loom Installed:
30
Production Capacity:
28 Million Linear Meters
Number of Employees:
5, 018
BOARD OF DIRECTOR AND MANAGEMENT TEAM
2.5 Main Buyers of Beximco Group:
Beximco textiles division offer readymade garments, as its product. The main customers of Beximco
textiles are from Europe and America. The main customers are:
JC penny purchasing corporation ,Springfield ,Phillip VAN Heusen ,Calvin Klein ,H&M ,
C&A ,Zara ,Next ,IZOD ,St. JohnsBay ,Arrow ,J. Ferrar ,Bershka ,Kenneth Cole
Reaction ,ESPIRIT ,CHAPS,Levis ,Tom Tailor ,DKNY ,Decree ,Geoffory Beene
2.6 Management Structure:
The company is operating through a well-defined management structure headed by a chief
Executive Officer under whom there are various departmental heads and according to hierarchy,
various senior and mid-level management staffs. The chief executives officer and departmental
heads meet at regular interval
2.6.1 The Board of Director:
The board of director is responsible to the shareholders for the strategy development of the
company, the management of the company’s assets in a way that maximized performance and the
control of the operation of the business.
The board of the directors is responsible for approving company policy and is responsible to
shareholders for the company’s financial and operational performance. Responsibility for the
development and implementation of company policy and strategy, day to day operational issues is
delegated by the board to the management of the company.
2.6.2 Board Structure and Procedure:
The membership of the board during the year ended 2007 may 2005 stood at four director, which is
higher than the legal minimum requirement of three director. The shareholders appoint the director
in annual general meeting and through them exercise their control proprietorship over the company.
The company’s board currently comprise the chairman( Also Managing Director) And other three
director of the others three director to are nominated by Bangladesh Export Import Company Ltd (
One of them is also the Chief Executive officer ) and other one is the nominee of Industrial
promotion & Development Company of Bangladesh( IPDC). The quorum of the board is at least three
directors present in person.
2.7 Functional Department of Beximco Textile Ltd:
Beximco Textile Ltd. is one of the structured organizations of Beximco Group? All the responsibilities
of the company are divided to ten different departments. The department looks after total factory
operations. It has a number of sections and each section has definite responsibility.
1. Production Department
2. Marketing and Sales
3. Planning, Commercial & Marketing
4. Procurement Department
5. Computer Department
6. Finance and Accounts
7. Management Information Department (MIS)
8. Administration Department
9. Human Resource Development (HRD) Department
10. Marketing Research, Development & Sales
2.7.1 Production Department:
The production depart is headed by director operation and has wide range responsibilities. This
department looks after total factory operations. It has a number of sections, namely production
planning, administration, stores and go down, power and fuel, maintained and delivery sections.
Each section has definite responsibility.
2.7.2 Marketing & Sales:
The main duty for the marketing department is to convince the buyer. The search for the buyers who
are looking for RMGs from Bangladeshi Garments coming from deferent part of the world. As the
buyers are highly concern in fabrics they test the sample and marketing department deals this
sample- testing price and time of shipment.
2.7.3 Planning, Commercial and Marketing:
As the company’s product is very sensitive that without period specification no buyer will take any
fabric until and unless the construction matches exactly with their requirement. So getting the
contract of order from marketing department they prepare and order Execution schedule specifying
the amount and construction of the fabric for production department considering lead time they
sent the schedule at least two month prior to the production. And finally they sent a production
order to the production department confirming the contract.
2.7.4 Procurement Department:
The principal function of the procurement depart is to source the materials both local and foreign as
required and requested by the user department. In the case of imported materials the responsibility
of the procurement department included the establishment of LC in favor of foreign vendors
2.7.5 Finance & Accounts:
The department comprises two sections- Finance & accounts. Finance is mainly responsible for
source and uses of funds, and inventory management. In this connection they have to prepare a
number of reports necessary to express the inventory position and have to go to the factory at least
ounces in a month to inspect the physical position of the inventory and to investigate whether there
are anomalies in records and physical existence. Another task of the department is to deal with the
long-term lone in paying the installment and interest.
The final result of all the works in the accounts department are financial statement balance sheet.
Profit & lose accounts, Cash Flow statement etc. to produce such report there deal a lot of works.
The department is required to do the same for monthly than quarterly and finally for the year. All
the payment is through the accounts department. It may be for raw materials purses of salary of the
employees any other expanses. Similarly all the Inflows are through the accounts.
2.7.7 Software Use in Beximco:
I saw in production sector complicated production machineries operated by special designed
software. In the liaison/head office of marketing is using very little general software suppose for
payments of bills and other document preparation they are using Ms Access. The internal
communication (office to office) is done through internet. Auto CAD, CAD CAM, Photoshop is widely
used by the designers. Corporate office widely uses tally and Ms Access to maintain their accounts
and financial dealings. For Email communication, all people are using EUDORA mail client program.
2.7.8 Beximco exports
Beximico exports their goods in the in France, Belgium, Germany, Holland, Denmark, Norway, Italy,
UK, Spain, Finland, Switzerland, USA and Canada.
3.1 Specific Internship Position &Duties:
Mainly I have done my internship in marketing and sales department in Beximco textile industries
Ltd. I work under the supervision of manager of marketing and my main task was receiving various
types of data information and making database. During my internship period my daily task was
taking data from the buying house and sends it to the factory to produce the fabric through the Email or send it to the factory physically.
As most of the time I have to manipulate with various raw data so that time I was also able to help
accounting division by providing various necessary data. In preparing database I have used Microsoft
Excel and Microsoft Word. I also took access to the Internet and office Internet for providing and
taking necessary information.
In the course of my internship I also did some task in the marketing division. Some of the task during
my internship is mention bellow:
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To check daily E-mail of the different Buying house. I try to communicate with buying house
and identify our order, which are beneficiaries for this organization. Most of the times we
communicate with them on E-mail and show them our fabric sample, swatch, cad and
garments. Then I prepare the documents, which is necessary for our organization.
To compare their order in the percentage base. For this reason I collect last month data to
compare increasing or decreasing rate in the percentage base.
To summaries there order at the end of the month. At the end of the month I collect data
and try to compare data with previous month. Then I inform it to the mid-level authority.
To receiving organizations or customer phone call for providing required information.
Sometime buyer call me and try to get information about our customer and try to know
about our fabric processing procedure then I provide them book or brochure etc. Our peon
physically communicates with them.
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To sales order processing. I go to the delivery store and request them for delivering my
customer fabric.
To communicate with the yearn factory to get my yearn which is necessary yearn for my
fabric as the buyer requirements. In the mean time I visit the factory and I saw how they
produce the yearn. I saw there firstly they collect the cotton from Thailand, India, Pakistan
and then they processing it in their comber matching. And finally this matching produce the
yearn.
To prepare print out, photocopy documents, which is very important for this organization.
I communicated with the design studio. At first buyer came in the studio for checking our
design. I try to show my design, which is previously produced in this factory.
I collected cheek from the accounts at the end of the month. And give it to my concern
party.
I communicated with the quality control department for prepare my fabric. Fabric quality is
good or bad I try to identify it by using their quality control department. To complete this
task I visit the factory and I saw how they produced the fabric.
I went to the design cell for collecting the dispo number. It is the color number, which is
related with the fabric. Every day we need to dispo number for preparing the fabric. Most of
the time I collect it and give it to the planning department for preparing the costing function.
I went to the yarn store for collecting the necessary yarn, which is needed for fabric. For this
I prepare the document and give it to the yarn store manager.
3.2 Major Learning Points:
During the time of internship program in the Beximco Textile Limited, I assemble many learning
things, which inspire me. The learning things are pointed in the following
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In the time of my internship period I learnt how to make a document for the buyer order I
try to summarize how many order collect in a month and how many fabric sale in a month.
Before joining as an internee in the Beximco Textile Limited I do not understand properly
about the fabric making process. After three month of working period I have a clear
conception about the fabric making process.
problems arise in the marketing section in Beximco Textile Limited then I try to
communicate with the concern party for the problem. So my communication skill must be
increase for this.
Before working in the Beximco Textile Limited I have no job experience and have no concept
how an organization follows time management. After working in the Beximco Textile Limited
I have clear conception about time management practices of an organization.
Adoption in any situation is not so easy. Every time I try to communicate with the higher
authority and lots of employee who working here but they are not Bangladeshi. Lots of
foreign people work in the Beximco. I try to communicate with them for my necessary
information. For this reason I things my adaptation power must be increase.
Before working in the Beximco Textile Limited I was very week in speak in English but After
working in the Beximco Textile Limited I gather some experience to communication with in
English.
Before working in the beximco I have no idea about yarn making process but now I have
clear idea about the making process of yarn.
Previously I have no idea about the graphics design but at present I can make the design for
fabric.
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Before working in the Beximco I have no idea about the CAD, swatch, sample, and count of
the yarn but now it is very familiar word for me. I know very well about the CAD, sample,
swatch and count of the yarn and those making process.
In the time of my internship I learnt about the comber machine which is very popular for
producing the yarn and how it done the work.
In the time of my internship I learnt about how a person can develop his career and maintain
his subordinate.
I learnt about the corporate culture, which is strictly maintained by the organization.
Theoretical Aspects
3. 3 Customer- Centered Marketing strategy
To succeed in today’s competitive market place, companies or banks need to be customer centered.
They must win customers form competitors, then keep and grow them by delivering greater value,
but before it satisfy customer, a company or bank must first understand their needs and wants.
Thus, sound marketing requires a careful customer analysis. Companies or banks know that they can
not profitably several all customers in a giving market-at least not all customers in the same way.
There are too many different kinds of customers with too many different kinds of needs. Moreover,
most companies or banks are in position to serve some segments better than others are. Thus, each
company must divide up the total market, choose the best segments and design strategies for
profitably serving chosen segments. This process involves three steps:
Market segmentation
Target marketing
Market positioning.
Marketing Strategy - Marketing Mix
Figure-: Customer Centered Marketing Strategy & Marketing Mix
Market segmentation:
Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior
and who might require separate services or marketing programs is called market segmentation. A
market segment consists of customers who respond in a similar way to given set or marketing
efforts.
Target Marketing:
The process of evaluating each market segments attractiveness and selecting one or more segments
to enter. A company should target segments in which it can profitability generate the greatest
customer value and sustain it over time.
Market positioning:
Arranging for product or service to occupy a clear, distinctive, and desirable place relative to
competing products or service in the minds of target customer. Thus marketers plan positions that
distinguish their products or services form or competing brands and give them the greatest strategic
advantage in their target markets.
3. 4 capturing value form Customers
The first four steps in the marketing process involve building customer relationship by creating and
delivering superior customer value. The final step involves capturing value in return, in the form of
current and future sales, market share, and profits. By creating superior customer value, the firm
creates highly satisfied customers who stay loyal and bye more. This, in turn, means greater long-run
returns for firm. Here, we discuss the outcomes of creating customer value: customer loyalty and
retention, share of customer, and customer equity.
Creating Customer loyalty and Retention
Good customer relationship management creates customer delight. In turn, delighted customers
remain loyal and talk favorably to others about the bank and its services. Studies show big
differences in the loyalty of customers who are less satisfied, somewhat satisfied, and completely
satisfied. Even a slight drop from complete satisfaction can create an enormous drop in loyalty.
Companies are realizing that losing a customer means losing more than a single sale. It means losing
the entire stream of purchase that the customer would make over a lifetime of patronage. For
example- here is a dramatic illustration of Customer Lifetime value.
Growing Share of Customer
Beyond simply retaining good capture customer lifetime value, good customer relationship
management can help marketers to increase their share of customer- The share they get of the
customers purchasing in their service categories. Many marketers are now spending less time
figuring out how to increase share of market and more time trying to grow share the customer.
Customer Equity
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The combined customer lifetime values of all current and potential customers.
Measures a firm’s performance, but in a manner that looks to the future.
Choosing the “best” customers is key.
3.5 Customer Needs, Behaviors, and Values Clarified
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Banks achieve better prospect and customer management by combining profitability,
behavioral segmentation, and analysis
Banks deliver information to customer touch points (e.g., branches or call centers) to
influence customer activity and workflow management
Stage Two banks manage and influence the workflow of their branches and call centers, and
generate more effective customer acquisition and management activities
3. 6 Building the Right Relationships with the Right Customer
Companies should manage customer equity carefully. They should view customers as assets that
need to be managed and maximized. Nevertheless, not all customers, not even all loyal customers
are good investments. Surprisingly, some loyal customers can be unprofitable, and some disloyal
customer can be profitable. Which customers should the company or bank acquire and retain. The
company can classify customers according to their potential profitability and manage its
relationships with them accordingly customer relationship groups. This group classifies customer
into one of four relationship groups, according to their profitability and projected loyalty. Each group
requires a different relationship management strategy. Which are discussed follows very briefly:
Butterflies
Good fit between companies or banks offerings
and customer’s need; high profit potential
Strangers
Little fit between companies or banks offerings
and customer’s need; lowest profit potential.
True Friends
Good fit between companies or banks offerings
and customer’s need; highest profit potential.
Barnacles
Limited fit between companies or banks
offerings and customer’s need; low profit
potential
Butterflies: Are profitable but not loyal. Good fit between companies or banks offerings and
customer’s needs. However like real butterflies, we can enjoy for only a short while and there gone.
True Friends: Are both profitable and loyal. There is strong fit between their needs and the
companies or banks offerings. The firm or bank wants to make continuous relationship investments
to delight these customers and nature, retain and grow them. It wants to turn true friends into “true
believes” who come back regularly and tell others about their good experiences with the bank or
company.
Strangers: It shows low profitability and little projected loyalty. There is little fit between the
companies or banks offerings and their needs. The relationship management strategy for these
customers is simple.
Barnacles: Are highly loyal but not very profitable. There is a limited fit between companies or banks
offerings. For example- a Uttara bank customer who is regularly but do not generate enough returns
to cover the costs of maintaining their accounts. Like barnacles on the hull of a ship they create drag.
Barnacles are perhaps the most problematic customers. The bank might be able to improve their
profitability by selling them more, raising their fees, or reducing service to them. However, if they
cannot be made profitable, they should be “fired”.
The point here is an important one: That is different types of customers require different
relationship management strategies. The goal is to build the right relationships with the right
customers.
Findings and Analysis
4.1 Present Scenario of the Textile Market in Bangladesh:
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 20% 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-March 2006-07 periods, overall exports of the country
reached US $9036.4 million. Represents a surge of over 20%, especially on the back of footwear and
garments. Knitwear industry failed to achieve target exports of $3485.2 million and earned around
$3335.2 million. Fazlul Haq, President, Bangladesh Knitwear Manufacturers and Exporters
Association (BKMEA), explained, “The failure is due to the adverse effect of labor unrest in the
garment sector in May 2006.”
(Source: www.fiber2fashion.com).
Currently the number of membership of BTMA is 935 under:
Weaving (Fabric Manufacturer) = 458
Dyeing-Printing-Finishing (Textile Product Processor) = 159
Over 2.50 billion EURO has been invested in these mills and about 3.50 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
Thailand
$ 1.00/Hour
India
$ 0.60/Hour
Sri Lanka
$ 0.45/Hour
Vietnam
$ 0.40/Hour
(Source: BKMEA websites)
Country
Indonesia
Pakistan
China
Bangladesh
Labor cost per hour
$ 0.40/Hour
$ 0.40/Hour
$ 0.35/Hour
$ 0.25/Hour
Energy cost in Bangladesh in lower compared to India and Pakistan
Country
India
Pakistan
Bangladesh
(Source: BKMEA websites)
Cost/KwH
$ 0.095/KwH
$ 0.08/KwH
$ 0.07/KwH
Competitive Position in the local industry:
BEXTEX Limited by nature operates in the weaving and finishing segment of the complex structure of
the Textile & Clothing industry of Bangladesh. The local textiles producers did never exert threats to
the company. Rather it is the textile giants in Chaina, India, Indonesia, Pakistan are the major
competitors of BTL as the company’s perception, because most of them operate in the same
markets as like as BEXTEX Limited.
In the local industry BexTex Ltd. is currently grabbing a big volume in terms of the share in the
export-oriented RMG market.
4.2 The Objectives of the Company is given below:
Beximco Textile Ltd (BTL) runs their business with secure growth in terms of profit for re-investment
to sustain market share and to diversity into new areas. It also contributes to the yarn industries that
produce thread garments manufacturing and other subsidiary unit some goals of the companies are
–
1.
2.
3.
4.
5.
6.
7.
8.
To increase to company’s familiarity.
To diversify the business.
To ensure growth both in terms of sales and profitability.
To maintain growth and market share.
To create more employment opportunity to the nation.
To provide the consumers better quality products.
Provide highest standard products and secure customer satisfaction.
Secure strongest competitive production through creative product and operational excellence.
4.3 Marketing Mix Strategies of BTL:
In deciding on tile marketing program, a company must decide how much to adapt its marketing mix
i.e. 4p’s (product, price, promotion and place) to local conditions, at the two ends of the spectrum
are standardized and adapted marketing mixes, with many step in between. At the product level,
firms can pursue a strategy or striate extension, product adaptation, or product invention, at the
promotional level, firm may choose communication, adaptation or dual adaptation. At the price level
firms may encounter price escalation and grey market and it may be very difficult to set standard,
prices. At tile distribution level firm need to take a whole- channel view at the challenge of
distributing its product to the final users. In creating all elements of the marketing mix firm must be
aware of the cultural, social, political, Environmental, technological and legal limitations they face in
other countries.
Now here we will examine potential adaptations that Beximco Textile Ltd. Might make to their
product, promotion, price, and distribution as they enter foreign market.
4.3.1 Product:
Weave fabric:
Solid dyed – poplin, twills, dobies, oxfords, secrsuckers, canvas, rib stops in 100% combed cottonCVC and CVS/TC stretch satten.
Yarn Dyed– Ginghams, strips, Fat-a-fills / End-on-ends, chambrays, Seersuckers, Pint point, Oxford,
Dobbies, plaids in 100% combed cotton CVC and CVS/TC-stretch- Sateen.
Dobby designs– Herringbones, Bedford Cards/Coteles, Waffles and various structures in 100%
combed cotton. CVC and CVS/TC.
4.3.2 Promotion:
Promotion, the marketing tools, standards for the various activities the company under take to
communicate Its product’s benefits and to pursued taget customer by it. The firm has a plan to
expand its market and according to that plan it has stands to increase its promotional function.
Action to be taken:
In the overseas market the company promotes its product byProvide Sample, Brochure, Collection, Attending international fair, CD supply, Participation in
auction over internet, Fashion Show, E-mail, Fax, Various Journal, Cortex, Magazine, etc.
4.3.3 Price:
The amount of the company charged for a product or service, or the sum of the value that customer
exchange for the benefits of having or using the product or service called price.
Determining Demand:
This organization determines demand by analyzing its previous sales volume. The company market
estimates are helpful in establishing the relationship between its product price and the quality.
Pricing Policy:
As the company has an objective to stay in the market along possible with this business, it has
adopted the market based price policy.As the shops are either franchise or agent of the mother
business, they try to follow the pricing strategy formulated by them. In such case some shop like
Reebok, Woodland set prices of their items as their franchiser wants. The other surveyed shops set
price by adding their desired profit margin to the purchase price.
4.3.4 Distribution:
Our objective is this study was to know about the distribution toward the existing marketing system.
To fulfill objective some selected issue that are influencing the existing marketing system have been
discussed.
Distribution Channel:
The channel structure used to transfer product and service foreman organization to its market.
Generally the company is issued direct channel.
H&M give the order directly to BTL.
At first the companies try to fulfill the buyer demand. If 5% lower or over production from the order
then it will be acceptable by the buyer in according to contract schedule. On the other hand when
tile quality of tile product is not as good as there requirement or expectation then they canceled it.
Then the company tries to sell this reject product to buyer by corresponding with each other.
Otherwise the company sells this reject product in the local market. The local market distribution
channel is as follows. Another distribution channel maintained by the BTL for our local market. Firstly
they produce the fabric for our local market then they give it in their sale center yellow shop in our
country then customer can purchase it from the sell center.
Transportation:
BTL maintain its own transportation system for delivering product to intermediaries as well as the
company contract with cargo-Bungle Transport Agency for delivering product.
4.4 Product Manufacturing Policies of BTL:
Bextex Ltd is the most modern composite textile in the Asia- Pacific region. The Bextex Ltd has a
capacity of 288 high speed air-Jet looms in its weaving section and a high tech dyeing and finishing
section with capacity of 1,00,000 meters of finished fabric per day. A good number of technician and
engineers had been abroad for getting to adjust with this machine. But the company can able to
utilize 80% of their production capacity.
BTL produce high quality 100% cotton fabrics, which help to maintain of modern civilized life. The
company spends large efforts toward marketing of textile product by trying to provide high quality
with reasonable price.
Source of raw materials:
Availability of raw materials is important for product and its quality as well as further production.
Cost of product also depends on the availability of raw materials. The basic raw materials of textile
products are:
1. Yarn
2. Dyes & Chemical
Yarn: The Company collects their yarn 90% to 95% from Padma Ltd. And 5% to 10% from overseas
such as India & Pakistan.
Dyes & Chemical: The Company collects their dyes and chemical 90% are imported from India,
China, Germanys and Europe and 10% are local insuring quality and consistency in fabric shading.The
following table shows the raw material Consume in different year:
Year
1998
1999
2000
2001
Source: Annual report
Material consumer
1,459,899,333
1,603,592,994
1,859,780,935
1,827,364,739
Positioning is the act of design companies offering and image so that they occupy a meaningful and
distinct competitive position in target customer mind. Comparing with the competitive product a
company might position its product on the basis of one or few difference such as importance,
distinctiveness superiority, communicability, affordability, profitability and so on.
BTL has positioned its entire textile product at the high quality and reasonable price, with respect to
other company’s textiles product in tile market.
Testing activities:
Table No-2: Beximco Fabric Testing Standers, Process and Guidelines
Test Name
Standard Reference
Test Reference
Performance
Standard
Washing Stability
Tensile Strength
Seam Slippage
Abrasion Resistance*
Piling resistance**
BS 4923
BS 2576:1986
BS 3320:1986
BS 5690
BS 5811:1986
2A Tumble Dry
-3% Warp and Weft
18 kg
8.0 kg
20000 revs
4
Tear strength***
ASTMD
SO 6mm
Break Down
36000 revs After
Wash
700g
142483
Wash Fastness
BS 1006
CO6 C2S
4S, 4C
Water fastness
BS 1006
E01
4S, 4C
Dry Rub Fastness
BS 1006
X12
4S
Wet Rub Fastness
BS 1006
X12
3S
* Abrasion test will only be carried out on fabrics for using in trousers or heavy uses finishing.
** Pilling test will only be carried out on fabrics, which contain synthetic fibers in staple form.
*** Test strength will only be carried out on lightweight, 100% cotton fabrics.
In addition to the above tests all fabrics will be tested for the following
Thread per Inch (Warp and Weft)
Fabric’s weight (g/m)
Fabrics Width (Overall and useable)
Monitor group of quality control:
(i)
(ii)
(iii)
BSTI
The company has developed product wise quality control specification.
Customers then self’s also do specify minimum requirements of fabrics.
Checking Activities:
1. On-line quality control
2. Right from yarn dyed through weaving up to finished fabric
3. Off- line testing to maintain the minimum requirement at every stage of processing line to
achieve right finished product.
4. On-going scheme we do optimum the new product or process introduce into the production
line.
Packaging:
BTL is using high-quality Polly for packing. Its depend on size of the products. The cost of packing is
generally 10% of the production cost. Packing materials consumption (opening stock purchase –
closing stock). The following table the packing materials consumed in few years
The company is producing usually the following major product4.5 Manufacturing process for Textile Goods:
There are two types of manufacturing process for textile products:
Manufacturing process for yard dyed
Manufacturing process for solid dyed
4.5.2 Spinning:
The main materials used in the spinning sub-sector are raw cotton and synthetic fibers such as
viscose and polyester staple fibers. In this process natural and synthetic fibers are cleaned and
twisted into yarn. The row materials are move through the blow room where all impurities are
removed from natural fibers only and those are rolled into laps. The laps then go through a carding
machine, wee they are cleaned further and formed into silvers, thick and loosely spun yarn. In order
to produce combat yarn, the fibers need to be undergoing further processing in the comber
machine, were the sort stands are removed, and the remained processed into silver. The silver then
fed to the draw frame, and speed removing frame where they are twisted to and drafting take place
and yarn is produced. The yarn is then spun around a bobbing or cone, using autoscores or cone
winding/reeling machines, packed and marked.
4.5.3 Weaving and Knitting:
The yarn is made into gray. At this stage fabrics processed using looms or knitting machines. At this
point the material has got no color and we have to color it according to our requirement (weaving
produced cloth).
Prior to weaving the yarn is wrapped around beams and dipped in a size, an adhesive, which when
dries gives the yarn a rigid and uniform structure. This yearn is then filled into the looms and called
yard. A tread of yarn, called the waft, passed between altering ward yarn with the aid of a shuttle,
air jet or rapiers. Knitting is also used to make gray. Instead of looms, circular knitting machine are
also used for knitting. Knit fabrics are much softer and more flexible than the produced on looms,
and is commonly used for producing article of casual wars such as T-shirts and undergarments.
4.5.4 Dying, Printing, and Finishing:
At this stage the gray goes for dying, printing and finishing. After the gray is inspected, it goes
through a process called the batch method when it undergoes scoring, bleaching and dying. Scouring
is the treatment of gray in chemical solution in order to remove the size, natural fats, waxes,
proteins and other impurities, and to make the fabric hydrophilicTe batch processing is next. It is
essential in giving the cloth a clean white color. It is done using two different methods. One is
bleaching with dilute hydro chloride solution at room temperature or by using hydrogen peroxide
solution at elevated temperatures (80 to 90 degree Celsius). The later method is more expensive and
usually results better and longer-lasting whiteness.
The scoured cloth is then dyed and then printed on. Printing is done using perforated rollers that
allow certain chemicals and colors to diffuse through the holes. After that the printing has been
completed and finally the fabric is washed again.
4.6 Market Controlling Policies of BIT:
Control and analysis of marketing costs complement each other. Control being with the assignment
of marketing expanse to various costing group such as territories, customers and products. Control
and analysis are enhanced by
(1)
Predetermine cost allowed for marketing effort and
(2)
Establishing functional costing rate base as standards and budgets design to aid in achieving
objectives.
Marketing Department of BTL. Analysis of marketing cost control and profitability, which are
presented under the following topics(1)
Comprising of manufacturing and marketing costs.
(2)
Marketing cost control.
(3)
Control of functional activity by the flexible budget and standards
(4)
Marketing profitability analysis.
(5)
The contribution margin approach.
(6)
Marketing cost and profitability analysis problem.
The Marketing Department of BTL are control and compared the actual with a budget under the
following cost





Selling
Warehousing
Packing and shipping
Promotional
Credit and collection
General accounting (for marketing)
When the expansion variance is adverse then corrective action and analysis the company tries to
find out why is to be done. Many time the company cannot able to export their product, which was
expectation then the company take proper step to achieve the target as per example the design
teams along with business department staff were already in USA in September 2001 presenting their
collection. They were meeting all their existing customers while targeting other big names, which are
still not on their customer list. Some of there are Wal-Mart in Mexico, USA and Europe, Federated
store of USE, Hudson Bay of Canada. For this reason after September I’ll 2001, hit the economies of
the world the company going on with successfully.
4.7 Operational Procedure of Beximco Textile Ltd:
The main task of Beximco textiles is producing various types of fabrics. Generally according to the
buyers demand the firm produces these fabrics. Like other organization Beximco textiles also have
various departments these are: – administration, accounts, marketing, production and quality
control. For Beximco Textile budgeting, financing and administration work is directly supervised and
controlled by its corporate office. Beximco textiles management of raw material, production
operation management, production, quality assurance, storing finished goods, and a bit accounts’
maintenance is done by the production department. Liaison office works as head office of the
Beximco textiles Ltd.
In this branch odder collection, production time and customer desired quality executing, document
processing, legal complicacy handlings, dealing with LC s’ and payments and accountants
maintaining, shipment, network maintaining with foreign and national buyers is done. In textile most
of the order comes from firm’s reputation, firma managements’ network and liaison and few comes
from the new local buyers. Beximco RMG direct place there in the production plant to the
production DGM.
The main function of the organization may be divided into two parts as:
1. Export
2. Import.
The phases/ Functions in export procedure include:
a. Manufacturing readymade garments and fabric
b. Ex-out the garments
c. Shipment the garments
d. Preparing documents
e. Receive foreign Currency.
Import/ Procurement of raw materials follow the under-mentioned steps:
Order placing
Getting/Receiving Performa Invoices
Opening Back to Back L/C
Receiving raw materials
The finance department where I have worked performs to manage the inflow of the company.
Inflow management includes the following:
a. Opening back-to-back L/C
b. Local bill discounting;
c. Arrange packing credit
d. Export bill purchase.
e. Receiving payment from maturity.
f. Opening inland L/C.
4.8 Different Challenging Segments in BTL are:
4.8.1 Beximco Denim:
Beximco denim Ltd is a high quality composite denim fabric plant with dyeing, weaving and finishing
facilities. It’s also including a modern government washing and dyeing plant to enable the fully
integrated production of denim appeals.
Indigo dyes and other chemical are all imported from Germany to ensure tent shades and washing
result.
The mills produce in excess of 18000 yards of denim fabrics per day ranging from 41/4 oz. chambray
and lightweight shirting denims to heavy bottom weight denims (6 oz.to15 oz). Fabrics are produced
using open end /open end, and ring/ring yarns to produce different style. In addition to standard
indigo denims, black, colored warp dyed, oven dyed and bull denim are produced. Other fashion
denims can be made to suit customer requirements.
4.8.2 Beximco Knitting:
Beximco Knitting Ltd. Is quipped with circular knitting, stare-of the-art computerized kitchen dyeing,
and finishing. It produces fine quality cotton and blended knit fabrics in a variety of styles. Jerseys,
ribs, piques and other single knits textures care all available. Current production in tubular and open
wide exceeds 14 ton per day. Fabric weight range from 130gsm to 260gsm in styles, which include
Jersey, piques needle out textures, ottomans mock thermals, popcorns and fabrics with Lycra.
The Beximco Textile industries park is operational 350 days a year-the company has gone to vast
length to ensure its smooth running by investing in its own in-house power supply, infrastructure
and in-house telecommunication link to the rest of the world.
4.9 Marketing Environment:
Marketing environment of Beximco textiles are the actors and forces outside marketing that affect
marketing manager’s ability to build and maintain successful relationships with targeted customers.
Marketing environment is divided into two parts microenvironment and macro environment of the
company.
4.9.1 Micro Environment
Marketing micro environment contains suppliers, marketing intermediary’s customers, competitors
and public. In the case of Beximco textiles the component “Company” itself almost works well with
its departments.
Beximco’s suppliers of raw materials policy and cost of raw materials or inflation directly effect the
macro environment of Beximco. Customers of Beximco are mostly our RMG producers. So quality
ensuring is a big concern here. In the case of marketing intermediaries; company fame, managers’
strong liaison/ network with business buyers are the main strategy of Biswas to sell products.
Government policies (favorable) are the main publics here. C Beximco competitors’ of Beximco
textile are local producers of Bangladesh. Name of some close competitors of Beximco textile is
given billow.
4.9.2 Macro Environment
Macro environments and major forces of Beximco’s are discussed below.
Demographic factor– South Asian region is suitable for textile industry. Big working population and
raw materials outsourcing facility, supports the industrial growth of Bangladesh.
Economic factor- Low production cost, energy availability, workers availability and suitable
government policy is the economic factor for Beximco.
Technological factor- China machinery are available and cost-efficient for Beximco.
Political factors– Unstable political situation and various types of strikes play a negative roll on
Beximco.
Natural and cultural factors- Natural and cultural factors don’t play a significant role in the macro
environment of Beximco.
Analysis:
Service delivery Process:.
Table-18
Lengthy
Comfortable
Total
Source: Questionnaire Survey
Percentage
65%
35%
100%
Person
13
7
20
The survey shows that service delivery process is lengthy, so that the customers feel uncomfortable
to take this service. Low range of people goes for comfortable, which is alarming for any service
organization.
Skill of service provider:
Table-19
yes
No
Total
Source: Questionnaire Survey
Percentage
75%
25%
100%
Person
15
5
20
Out of 20 people 15 people said the employees are skilled. Only 5 people said they ere not skilled
enough.
4.3.8 The office layout is identifiable:
Table-21
yes
No
Total
Source: Questionnaire Survey
Percentage
20%
80%
100%
Person
4
16
20
Out of 20 people 16 people disagree with the office layout is identifiable and other are agree with it.
4.3.10 The bank’s image:
Table-23
yes
No
Total
Source: Questionnaire Survey
Percentage
50%
50%
100%
Person
10
10
20
The banks todays are operating IT-based operation and their marketing strategies are highly
slandered. So that the service takers of UCBL do not get that much encouragement by their colleges,
peers, friends etc. so that 50% of my respondent goes for yes and other 50% answer no to this
question.
Evaluation of General Banking Services of Uttara Bank Limited
I evaluate the General Banking Services of Uttara Bank Limited based on my customer’s survey
through questionnaire. I survey fifteen customers to measure the General Banking Services of Uttara
Bank Limited.
{The Questionnaire is used to evaluate General Banking Services of UBL. This question was aimed at
finding out the General Banking services provided by Uttara Bank Limited at present. This
identification will help in developing the subsequent part of the research.}
5.0 Maximum numbers of people carry Savings Accounts
Uttara Bank Limited is the largest and oldest private bank in Bangladesh. They have huge number of
accounts holders under various accounts.
Table: Percentage of account
Account Name
Percentage of accounts
Number of Customer
Savings A/C
Current A/C
FDR A/C
STD A/C
CC A/C
47%
27%
13%
7%
7%
7
4
2
1
1
The above graphical presentation shows that 47 percent customers are maintaining Savings Account
in Uttara Bank where 27, 7, 7 and 13 percent people have respectively maintains Current, Cash
Credit, STD and FDR account.
5.1 Moderate customer satisfaction level
Table: Customer Satisfaction Level
Particulars
Percentage
Number of the Customers
Delight
7%
1
Satisfied
27%
4
Moderate
53%
8
Dissatisfied
13%
2
The above graphical presentation shows that 53 percent customers have moderate satisfaction level
on Uttara Bank Limited. Some customers are 27 percent satisfied and 7 percent delighted to it. But
they have13 percent dissatisfied level.
5.2 Account holders are reliable on Uttara Bank Limited
Uttara Bank Limited serves people through various deposits accounts since 1983. They can able to
gain customers reliability on them very quickly.
Table: Reliable
Particulars
Reliable
Non reliable
Percentage
80%
20%
Number of the Customers
12
3
The above graphical presentation shows that 80 percent customers are reliable on Uttara Bank
Limited. Some Client also has 20 percent non reliable.
5.3 Competitive interest rate provided for deposit accounts
Uttara Bank Limited provides competitive interest rate on deposit accounts.
Table: Interest provided on deposit account by Uttara Bank Limited
Particulars
Attractive
Competitive
Good
fair
Percentage
7%
47%
27%
20%
Number of the Customers
1
7
4
3
The above graphical presentation shows that a 47 percent customer says Uttara Bank Limited
provides competitive interest for deposit accounts to accounts holder. 7 percent attractive and 27
percent good and 20 percent fair.
5.4 Average quality of General Banking service
Customers are average satisfied on the performance of General Banking service.
Table: Quality of General Baking Service
Particulars
Standard
Average
Good
fair
Percentage
7%
53%
20%
20%
Number of the Customers
1
8
4
3
The above graphical presentation shows that 53 percent customers are average satisfied on General
Banking service where 7 percent standard and 20 percent good and 20 percent fair.
4.10 SWOT Analysis:
The SWOT analysis having identified the company’s internal strength and weakness as well as
external opportunities and threats. We need to conceder by previous marketing and other related
analysis an overall picture has revealed of BTL. It an develop new function business of corporate
strategies to accomplice this changes. A SWOT analysis shown in the bellow:
Strength is the power of the company by using it a company may achieve the competitive advantage
“Bextex Ltd. Is a well reputed company in the textile industries of the country. It is enormous assets,
vast market; leading market position has created an image and position in the textile industries.
Here the existing strength of the company is mentioned as bellow:
Huge capital involvement.
A large amount of assets.
A well-known reputed brand name.
Management competence. Sound marketing skills.
Good material management system.
Availability of efficient and qualified human resources world latest.
Appropriate organizational style. Good financial management.
It has in-house power generation capacity is 12 megawatts.
Road leading to the complex has been built by and are maintained by Beximco.
Tube wells ensure an abundant flow of water.
On-site employee housing provides comfort and easy access to work, and promotes better work
performance.
Supervisors and foreign technician live on-site to provide 24 hour coverage.
Dependent on 100% imported raw materials and technology
Difficulties to cope with always upgraded new technology
Administrative cost is comparatively higher
Higher dependency of borrowed capital





Very higher quality product which have a good demand in both national and international
Market
Market for a large portion of product is insured with in the other sister company of Beximco
Group.
After withdrew of the quota system of garments product from early 2006 demand of the
yearn will be higher
After full integration of total BEXIMCO Textile Division the administrative cost might be
lower
There is a good opportunity for marketing more production in future
1. Very competitive national and international market
2. Many new companies are coming in front with new port and new technology
3. Dependency of foreign countries so far raw materials
4. Many neighboring companies are in more advance situation
5. National and international yearn market is always Fluctuating.
5.1 Conclusion:
In the basis of finding and analysis, this paper is examined and described how we can collect the
order from the buyer and it is too difficult to collect the order from the buyer. Sometime Beximco
people need to go abroad for collect the order. Document must be necessary all of the function.
Buyer firstly searches on the web page of Bexinco Textile Limited and they collect the necessary
information from the web site. Then they give the order by using buying house. So they need to
prepare such type of document and Bexico also prepare such document varies on the buyer
document. According to the buyer aspect company try to prepare the fabric. In the fabric processing
stage they need to collect dispo number, design, layout, cad, swatch, sample, cost related document
etc. For this reason marketing section need to prepare sample form, requisition form, swatch
request form etc. So all document and fabric making process complete very carefully.
As product marketer, BTL should maintain reasonable flexibility in blending the elements of its
marketing management to cope with the changing needs of the markets. A pragmatic approach in
this direction warrants continuous and regular evaluation of dynamic technological and
socioeconomic millennium.
Business line of this company in manufacturing and marketing of high quality fabric, which have
large, yet share in textile sector in Bangladesh. If the BTL wants to complete with world class textile
industries, they must have analyzed about marketing distribution channel, price margin maintains by
them and the promotional activities given to traders etc, In order to know the current marketing
management system of this companies they must have to do market research.
Beximco enter to the world market of textile and RMG is about 30 years. In these years we have
faced lot of challenges and have got lot of experience. After crossing this 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. It is not only my course requirement of BBA
but also a step towards my professional career. I always believe that it will definitely add some
values in my future goals.