ASSIGNMENT ON Marketing Orientation of Different Companies of Ceramics Industries in Bangladesh COURSE Marketing Theory & Practices (M 501) PREPARED FOR Dr. Md. Iftekharul Amin, Professor INSTITUTE OF BUSINESS ADMINISTRATION, UNIVERSITY OF DHAKA PREPARED BY Md. Kazal Arifen; ID-06, Sajib Saha; ID-07, Rajib Kumar Saha; ID-19, BATCH-37, SECTION-A, EMBA Date of Submission 06-10-2023-2023 Bangladesh Ceramic Industry Overview: In Bangladesh currently, about 63 tiles, sanitary-ware and tableware manufacturer are enlisted into business of which 33 are actively in tiles operation. Investment in this sector by local as well as foreign investors already accumulated BDT 60 billion, of which mostly has held in Tiles segment. At present, total yearly production capacity of Tiles stood at 140 million SQM which is expected to rapidly expand in next 35 years span. The industry employed around 21,000 workers in skilled category while it has catered 4 Lac more laborers in the value chain. Sectorwise Domestic Sales in 2021-2022 FY 898.37 cr. No. of Active Players in the Industry 582.93 cr. 9% 13% Saniaryware 18 Tiles 78% Tableware Tiles 5349.94 cr. 33 Tableware Sanitaryware 20 0 10 20 30 40 Tiles Market Share RAK Ceramics (BD) Ltd., 10% Great Wall Ceramic Ind. Ltd., 12% Others (27 Companies), 52% Fresh Ceramics, 9% Akij Ceramics Ltd., 6% DBL Ceramics Ltd., 6% Mir Ceramics Ltd., 5% Price Per Sq. ft. Companywise Price Comparison 250 200 150 100 50 0 Meghna 20X30 25X40 30X50 30X60 30X30 40X40 60X60 80X80 60X120 46 0 84 87 63 74 106 130 175 Akij 51.5 65 90 98 73 84 107 136 204 RAK 47 67 80 97 75 81 111 0 193 Tiles Size Different Marketing Orientation: Marketing Orientation Y/N RAK Ceramics Example of Marketing Campaign in Brief Y/N Akij Ceramics Example of Marketing Campaign in Brief N RAK Ceramics offer premium price tiles in the market so their marketing is not focused in production concept The Product Concept Y 1. Pioneer in Developing Ceramic Industry in BD since 2000, they have huge investment in R&D for quality new product development 2. RAK has an in-house team to address customer complaints which they track officially to close within 72 hours 3. Their product portfolio is targeted mostly for high end customers Y 1. One TVC showcases the durability of their ceramic tiles by showing that they can withstand a heavy impact even from hammer drop. 2. They uses state of the art German technology to produce export quality products for local & global market The Selling Concept N Not Applicable N Not Applicable Y 1. They have flexibility to offer product as per customer choices, i.e. Decor & bordering is a unique & expensive feature offered to customers 2. RAK offer virtual visualization of room fittings with tiles of customer choice through Augmented Reality platform Y 1. Providing Experience zone, Concept room at Akij Selection to choose from different varieties of products 2. Live 2d, 3d demo available through their official website 3. They launched Braille engraved tiles for visually impaired people on language day campaign The Production Concept The Marketing Concept Y/N Fresh Ceramics Example of Marketing Campaign in Brief 1. Fresh Ceramic entered into the tiles market in 2021 by targeting the periphery market by achieving economics of scale, Currently Fresh holds the position of market leader with 12% market share 2. Since volume is the strategic factor to gain the market share they sell products of premium quality at less than premium but above the market avg. price. 1. They source the highest quality raw materials from the origin based in EU, and process them using the latest technology from the USA to accommodate the largest production capacity under one shade and the longest kiln of 261 meters. 2. From Dealer's testimonial on lowest breakage & better joints compared to other tiles brand give evidence of the product orientation of fresh ceramics N Akij Ceramics offers the most premium price tiles in the market so their marketing strategy is not focused in production concept Y Y N Not Applicable N The company is still in the evolving stage, they lacks r&d & focusing more on low segment customer to generate the volume Holistics Marketing Orientation Relationship Marketing (customers, employees, partners, financial community) Integrade Marketing (communications, product & services, channels, price) Internal Marketing (Marketing department, Senior Management, Other departments) Perormanace Markeing (revenue, brand & customer equity, ethics, environment, social) Y/N RAK Ceramics Example of Marketing Campaign in Brief Y 1. They have identified Stakeholders, influencer & they have annual programs for each category of stakeholder which they cater. 2. Sending greeting & wishes to top notch architects on any remarkable achievement & life events. Y 1. Communication: They are widely active on different social media platforms, and they participates in different global ceramics exhibition as well as local expo 2. They brand themself as countries' only multinational brand Y Y 1. They organize employee interaction programs like town hall to update business performance 2. New joiners irrespective of working department are sent to factory for process orientation 1. RAK being a listed company their financials are well communicated across the stakeholders 2. Promote recyclable & reusable packaging 3.Dedicated to design environment friendly product 4. Create eco-friendly products & promote sustainable production & consumption Y/N Akij Ceramics Example of Marketing Campaign in Brief Y 1. Arrange different programs to recognize different key stakeholders like retailers. 2. Pays tribute to architects of the national memorials through AV, Congratulate architects on their achievements in their social media platforms, Y 1. Akiz Ceramics promotes a wide range of products, from tableware to ceramic tiles, as highlighted by their tagline "এক ছাদের নিদে সব পিয" (All products under the same roof). This indicates their commitment to meeting various customer needs and preferences under a single brand, appealing to a broad customer base. Y Sheikh Bashir Uddin, MD of Akij Group in his interview to reputed news portal expresses their internal commitment to be the country’s no. 1 ceramic brand Y 1. Akij Ceramics is committed to equipping itself with rainwater harvesting facilities by the end of 2023. This will ensure 100% conservation of water resources. 2. In addition, they have a green plan by way of planting trees. Our target is to plant at least 500 trees with long lifespans between the years 2022-2023. Y/N Y Fresh Ceramics Example of Marketing Campaign in Brief 1. In addition to the other relationship marketing strategy under fresh ceramics Eid Express campaign they are Offering free transportation to the Tiles Worker before Eid Holidays to move to their hometown. 2. Under the campaign “Nandonikotar Karigor” arranges dinner program for tiles fitters in different regions of the country. N 1. Being a new player in the industry, Fresh keeps it focus on customer retention with quality product at an affordable price. However, it preaches technical aspects of tiles fixation through its presence in social media. Y All H/O employees of MGI are gifted with magiclock polypacks with fresh ceramics branding on it to distribute the meats of their sacrificed animals during Eid-Ul-Azha N Fresh ceramics lacks performance marketing in their marketing strategy compared to other major players Scope of Improvement: RAK Ceramics: RAK’s current marketing strategy is mainly focused in urban market to the premium customers. Their Marketing strategy should encompass the rural market to capture market share in low end market as well. With its wide range of products and brand positioning, they should go for capacity expansion targeting the Upazilla market segment. Akij Ceramics: Akij ceramics being started in 2012 with its installed capacity significantly lagging behind to cater more market share. Their high pricing might be a reason to that. They may need to adopt a quasi-production marketing strategy to improve maximum capacity utilization. Fresh Ceramics: To stay in the competition and to avoid the lone low-end customer segment label, Fresh Ceramics should aggressively invest in urban market as well. The brand Fresh is easily buy–in for customers of any segment. It needs to place itself now in key markets across the mega cities with showrooms. Its high end product should be more featured through social media and TVC. To get entry in the market & capture a big chunk of market share the production concept clicked well for fresh but for the future development they should invest in r&d, product customization & different digital features like augmented reality visualization for customers to beat other competitors in the race. Fresh is currently doing business only in tiles, so they lacks the scope of cross selling of the products of sanitary ware & tableware segments unlike other competitions like RAK or Akij. So fresh may consider investing in sanitary ware & tableware as well to retain the customer base they are creating. Reference: Annual Report of FY 2021-22 Bangladesh Ceramics Manufacturer and Exporters Association (BCMEA) https://www.youtube.com/watch?v=lbupH2ryxkg&ab_channel=RAKCeramicsBangladesh https://www.facebook.com/rakcerambd/videos/344165184695775 https://www.youtube.com/watch?v=MrFtAxWZlWg&ab_channel=RAKCeramicsBangladesh https://www.linkedin.com/posts/rak-ceramics_rakceramics-responsiblebusiness-esg-activity7109785716162764800--sj3?utm_source=share&utm_medium=member_desktop https://publisher.tbsnews.net/interviews/akij-wants-be-countrys-number-one-ceramic-brand-367369 https://rb.gy/z2zsz https://www.youtube.com/watch?v=V_FSv5U4AFE&ab_channel=FahrenheitMarketingCommunicati onsLtd https://www.linkedin.com/posts/akij-ceramics-ltd_akijceramics-promiseofperfectionnumberoneceramictilesbrand-activity-7114644264755609600atWz?utm_source=share&utm_medium=member_desktop https://www.youtube.com/watch?v=3rK89wN7vG0&ab_channel=AkijCeramics https://www.youtube.com/watch?v=1W9S8vejNB8&ab_channel=TheBusinessStandard https://www.youtube.com/watch?v=qqUi9SWngeI&ab_channel=AkijCeramics https://www.youtube.com/watch?v=z7ug7-0PXog&ab_channel=FreshCeramics https://www.youtube.com/watch?v=fRRWmVNvXn4&ab_channel=FreshCeramics https://fb.watch/nvupL98pJt/