Marketing Mix Practices

A study on Smart Group of Companies, Ruby Gate, Chittagong

[The Internship Report is submitted for the partial fulfillment of the requirements for
the Degree of Bachelor of Business Administration with a major in Marketing]

Prepared by:
Nasrin Akther Nishi
ID No. B-141298
Program: BBA
Major: Marketing
Semester: Spring – 2018

Internship Duration: 8th November, 2018 to 8th February, 2019

Date of Submission: 26th February, 2019

DEPARTMENT OF BUSINESS ADMINISTRATION

FACULTY OF BUSINESS STUDIES
INTERNATIONAL ISLAMIC UNIVERSITY CHITTAGONG
 Marketing Mix Practices
A study on Smart Group of Companies, Ruby Gate, Chittagong

[The Internship Report is submitted for the partial fulfillment of the requirements for
the Degree of Bachelor of Business Administration with a major in Marketing]

Prepared by:
Nasrin Akther Nishi
ID No. B-141298
Program: BBA
Major: Marketing
Semester: Spring – 2018

Supervised by:
Kulsuma Akther Nahid
Lecturer
DBA, IIUC

Internship Duration: 8th November, 2018 to 8th February, 2019

Date of Submission: 26th February, 2019

Signature of Supervisor

DEPARTMENT OF BUSINESS ADMINISTRATION

FACULTY OF BUSINESS STUDIES
INTERNATIONAL ISLAMIC UNIVERSITY CHITTAGONG
 Letter of Submission
24th February, 2019

The Convener
BBA Internship/ Dissertation Committee
Department of Business Administration.
International Islamic University Chittagong.

Subject: Submission of Internship Report

Dear Sir,

I felt immense pleasure in submitting the report on “Marketing Mix Practices- A

study on Smart Group of Companies Ltd”. I tried my best of my sincerity to prepare
the report covering of the aspects of the topics as per your suggestions.

I have tried to gain practical experience and also tried to know about the captioned
subject by observing its activities which reflect the same in report with my limited scope
and knowledge.

I sincerely believe and hope that you will find this study very interesting, informative
and enlightening and will help future researchers for extended research in this field. I
beg your kind excuse for the unintentional error that may take place in this Thesis in
spite of my best efforts. I hope that you would be kind enough to receive this Thesis
and bless me heartily.

Kind Regards,

_________________
Nasrin Akther Nishi
ID NO. B-141298
Program: BBA
Major in Marketing
Semester: Spring 2018
Department of Business Administration
International Islamic University Chittagong
 Acknowledgement
First of all I would like to express my heartiest gratefulness to the almighty Allah. The
topic of Internship report assigned to me was “Marketing Mix Practices - A Study on
Smart Group of Companies Ltd, Chittagong”. I am very glad to be the part of this
study & enormous debts are accumulated on the way to complete this report. This report
is prepared as a partial fulfillment of BBA program in the department of business
administration.

I would like to thank from the core of my heart to Mr.Saif Uddin Kamal, HR manager
of Smart Group of Companies Ltd for his unconditional support, when assisted me
to complete my internship program successfully. I like to offer my thanks to
Mohammad Nesar, Manager of Merchandising of Smart Group, MD.Shaqib,Assistant
Manager of Smart Group, Mr. Nur Mohammad Babu,CEO of Smart share & securities
of Smart Group helped me a lot by giving their valuable responses during my internship
period. They helped me in every possible way even though they used to remain busy all
through the day. I also acknowledge for the help and co-operation receipts from the
officials of Smart Group of Companies Ltd, Chittagong.

I am deeply indebted to my supervisor Mrs Kulsuma Akther Nahid, Lecturer of

DBA, IIUC for her whole hearted Supervision to me. Without her supportive hand and
recommendations, it would be difficult for me to complete this report.

Thanks to all from the core of my heart.

 Executive Summary
The Report is based on three months working experience at Smart Group of Companies,
Chittagong. This report gives a clear idea of the Marketing Mix of the company; Product,
Price, Place and Promotion. The report is the outcome of the study of relevant issues and
activates of the company in the field of Marketing Mix.

Marketing Mix is the heart of any business entity. Any business in the world must have its
own Marketing Mix. Product, which is the core of any business, Price is the monetary value
charged against the product, Place is the distribution channel to consumers, and Promotion
is the way of leveraging the sales. Therefore, for any company there must be a Marketing
Mix.

This report contains 5 chapters. A brief description of the chapters is as follows:

Chapter 1 – In the first chapter, the objective of the study was discussed. Also there is the
scopes of study, limitations of the study, methodology etc. Two types of data were used in
this research, Primary and Secondary. As the research is a qualitative one, Primary data
was collected through direct observation and secondary data was collected through various
sources like website, brochure, existing research papers etc.

Chapter 2 - In the second chapter, overview of Smart Group of Companies Limited with
brief description and “at a glance” has been pointed out. The company was incorporated on
February, 2000 under the companies Act 1994 as a Private Limited Company by shares for
carrying out all kinds of banking activities. Smart Group is one of the big goup of
companies in the country, recognized as a dynamic, innovative and client focused company.
Smart Group is playing a pioneer role among its competitors in providing various products
and services anywhere in Bangladesh.

Chapter 3 – Chapter 3 described the basics of Marketing Mix. The 4 P’s of Marketing Mix
are Product, Price, Place and Promotion are described here.

Chapter 4 - Described the Marketing Mix of the company. Smart group has multiple
concerns and they offer various types of products. RMG, Textile, Food, Container Depot,
Energy and Media is their main categories of product.

Smart Group has their own pricing strategies for various types of products. The price of
every individual product are very competitive compared to the competitors. BM LP Gas
has the lowest price than Bashundhara, Total Gaz etc. New ventures like Smart Bio
Inception is following Penetrative pricing strategy to capture the market share.
The distribution channel of Smart Group is structured and strong. They have separate
distribution channel for each of the product categories. Distribution method for every
individual product category is different. The Channel partners varies product to product.
Direct Channel like Producer to Consumers and also Multiple Channel Distribution
methods are available.

Promotional activities of the company were also discussed in details. The use different
promotional tools for different products. Though they have various new products, they
don’t have enough promotional activities. BM LP Gas is one of the most promoted products
of the company.

Chapter 5 - In this chapter, the finding of this study was discussed. There are also some
recommendations based on the findings. The company should go for further research on
individual products to identify the scopes and work with the recommendations.

Smart Group is a huge group of companies with multiple business segments. They are
maintaining portfolio businesses. They have a very prospective future. To achieve the
expected growth, the company needs to evaluate their business and take strategic decisions
based on the findings.
 Table of Contents
Particulars Page No.

Chapter – 1: Introduction 1-4

1.1 Introduction 2
1.2 Objectives of the study 3
1.3 Methodology of the study 3
1.4 Scope of the study 4
1.5 Limitations of the study 4

Chapter - 2: Overview of The Company 5-10

2.0 Overview: Smart Group of Companies LTD 6
2.1 Mission of Smart Group 7
2.2 Vision of Smart Group 7
2.3 Values of Smart Group 7
2.4 Smart Group of Companies- at a glance 8
2.5 Concerns under Smart Group 8
2.6 Organogram of the company 9
2.7 CSR activities of the company 10

Chapter – 3: Marketing Mix 11-15

3.0 Marketing Mix 12
3.1 Product 13
3.2 Price 13
3.3 Place 14
3.4 Promotion 15

Chapter - 4: Marketing Mix Practices of Smart Group of 16-40

Companies Ltd
4.0 Marketing Mix of Smart Group of Companies Ltd 17
4.1 Product of Smart Group of Companies 17
4.1.1 RMG 17 - 18
4.1.2 Textile 18 - 19
4.1.3 Energy 19 - 21
4.1.4 Logistics 21 - 22
4.1.5 Real Estate 22 - 23
4.1.6 Food 23 - 24
4.1.7 Media 24
4.2 Price 25
4.2.1 Pricing Objectives 25
4.2.2 Pricing Strategy 25 - 27
4.2.3 Product-wise Pricing and Strategy 27 - 29
4.3 Place 30
4.3.1 Marketing Channel 30
4.3.2 Product-wise Distribution Methods & Strategies 30 - 33
4.4 Promotion 34
4.4.1 Product-wise Promotional Tools & Strategies 34 - 37

Chapter – 5: Findings, Recommendations & Conclusion 38 - 42

5.1 Findings 39
5.2 Recommendations 40
5.3 Conclusion 41
5.4 References 42
Chapter 01
Introduction

1|Page
1.0 Introduction
Marketing Research is the systematic and objective identification, collection, analysis,
dissemination, and use of information for the purpose of improving decision making related
to the identification and solution to the problems and opportunities in Marketing (Naresh
K. Malhotra). This study has been done with an objective of exploring Marketing Mix of
the company Smart Group of Companies Limited. A company’s Marketing Mix consists
of four elements – Product, Price, Place and Promotion. This report is the outcome of
studying all the four elements of Marketing Mix of the company.

The readymade garments industry acts as a catalyst for the development of Bangladesh.
The "Made in Bangladesh" tag has also brought glory for the country, making it a
prestigious brand across the globe. Bangladesh, which was once termed by cynics a
"bottomless basket" has now become a "basket full of wonders." The country with its
limited resources has been maintaining 6% annual average GDP growth rate and has
brought about remarkable social and human development.

The industry that has been making crucial contribution to rebuilding the country and its
economy is none other than the readymade garment (RMG) industry which is now the
single biggest export earner for Bangladesh. The sector accounts for 81% of total export
earnings of the country.

The Smart group is an industrial conglomerate, headquartered in Chittagong, Bangladesh

and has become a nationally recognized, award winning company with a consistent record
of excellence in all phases of its businesses. The ready-made garment division of Smart
Group is a manufacturer and exporter of apparels and textiles, which is named as Smart
Group of Companies.

As one of the leading Group of Companies of the country, Smart Group is engaged in multi-
dimensional businesses like Energy, Textile, Food and Media.

2|Page
1.1 Objectives of the study
The main objective of this study is to understand the Marketing Mix (Product, Price, Place
and Promotion) of Smart Group of Companies.

Making this more elaborate, following are the key objectives of this study:

1. To know about Smart Group of Companies.

2. To understand the marketing mix of the company.
3. To explore the product mix, the pricing strategy, the Promotional Mix and the
distribution channel and process of the company.
4. To find out the problems regarding marketing mix of Smart Group of Companies
and provide some suggestions to overcome the problems.

1.2 Methodology of the Study:

Exploratory Research is an examination into a subject in an attempt to gain further insights.
As Exploratory Research allows the researcher to be more flexible and versatile, it was
suitable to go for Exploratory Research to fulfill the objectives of this study as well to gain
deep knowledge about the 4 Ps (Product, Price, Place and Promotion) of the company.

Types and sources of data: Both Primary and Secondary data were used to complete the
study.

Source of primary data: A set of structured open ended questions was prepared to be
responded by the respective employees of the company. Various primary data was also
collected through direct observation and one to one interview with the respective persons
from various departments across the company.

Sources of secondary data: Secondary data were collected from the following sources:

 Annual report of Smart Group

 Website of the company
 Product brochure
 Corporate brochure
 Previous research reports

3|Page
1.3 Scope of the Study
This report focused on the Marketing of Smart Group of Companies. This study will explain
about the products, the pricing and strategies, the distribution channel and the promotional
tools and strategies of the company. This report also explained the background and reason
of studying the company’s Marketing Mix and Strategies.

The study also gave a clear cut idea of all the sister concerns of Smart Group and the CSR
activities of the company. The various pricing strategies were also discussed.

1.4 Limitations of the Study

Limitations acts as the barriers to do something. Like all other researches, this research is
not beyond the limitations. So there were some limitations for collecting information from
the inner sources of the company. But we have tried best to stay in line and to gather the
information accurately from the inner sources.

1. Time Constraint: Although there was very little time to gather information and data to
prepare the report for such a large industry we have tried to be more accurate with the
present situation.

2. Company Secrecy: Because of the specific policy of disclosure of information,

respondents were not agreed to provide all the necessary information about the strategies
and budget of the promotional activities.

3. Respondent’s Limitations: Respondents of the survey were very busy in their daily
activities. So sometimes it was difficult to get their time and detailed information.

4. Fund Constraint: Information collection from the primary market through

questionnaire is very expensive. Visiting the customers at their shop and working place is
very expensive. But we have tried to go to them to collect information from them.

4|Page
Chapter 02
Overview of the Company

5|Page
2.0 Overview of Smart Group of Companies
Smart Group is one of the well- established conglomerate industries in Bangladesh. Smart
Group started its ready-made garments business in 2000 with 3 production lines with a
partnership with Lowland fashion international which is a Netherland-based company.
After that, day by day they developed their business in line with productivity and capacity
using modern technologies. It has become a nationally recognized, award winning company
with a consistent record of excellence in all phases of its businesses.

Smart Group has consistently placed on quality, and this dedication to superior service and
products has led to a portfolio of high profile clients and business partners. In order to stay
on par with the ever evolving technology, Smart Group is committed towards constant
development and modernization. They believe in investing in their profile and utilizing
their finances in a resourceful manner. Today the total group is able to take any challenge
with its skilled human resource of 25,000 employees.

The ready-made garment division of Smart Group is a manufacturer and exporter of

apparels and textiles. This sector also has an entity (Chittagong Denim Mills Ltd) which is
a leading denim fabric producer in Bangladesh. To maintain brand excellence of
international clients, all the products are manufactured using the most modern machineries.

The Smart Group’s mission is to add value to the lives of the society. Smart Group patronize
in ample humanitarian scheme to help the destitute, patronize to build 45 houses for
homeless people every year, established several educational institutions, set up tube well
for drinking pure water and hygienic sanitation. Smart Group also constructed the
communication system and provided fund to reconstruct of huts for the flood affected
people. Its main objective follows the principle to reduce rural poverty and foster
sustainable economic development of the country.

In today’s highly technological world, Smart Group Apparel Division ensures that every
product measures up to the highest international standards. This is the reason why most
quality conscious buyers and in particular most foreign garments industry working in
Bangladesh buy garments from Smart Group Apparel Division.

6|Page
2.1 Mission of the Company
 To manufacture world-class products of outstanding quality that gives our
customers a competitive advantage through superior products and value, so we can
make every customer smile.
 To encourage people’s ownership, empowerment and working under team
structure.
 To attain highest level of efficiency, integrity and honesty.

2.2 Vision of the Company

To manufacture products comparable to international standards, to be customer-focused
and globally competitive through better quality, latest technology and continuous
innovation.

2.3 Values of the Company

 Customer’s satisfaction and delight.
 Superior quality of performance.
 Concern for the environment and the community.
 Passionate about excellence.
 Fair to all.
 To provide a safe workplace and promote healthy work habits.

7|Page
2.4 Smart Group of Companies – At a Glance

Name of the Organization Smart Apparel Promoters Limited

Location of the Company
Corporate office
Website of the Company
Type of the Company
Date of Incorporation
Date of Commercial
production
Production Line
Chairman of the Company
Directors of the Company
Insurance Company Name
Number of Employees
Production Capacity
Bangladesh (Chittagong and Dhaka)
1206/A Nasirabad I/A, Bayzid Thana Road
Bayzid, Chittagong-4201, Bangladesh.
http://www.smartgroupctg.com.bd
Private Limited Company
February, 2000
May, 2000
150
Mr. Mustafizur Rahman
Mr. Mujibur Rahman
Union Insurance Co. Ltd
25000
2.8 million pc’s per month

2.5 Concerns under Smart Group

1. Smart jeans Ltd.
2. Smart Jacket (BD) Ltd.
3. Shehan specialized Textile mills ltd.
4. BM Energy (BD) Ltd.
5. BM Energy(BD) Ltd. (Unit 2)
6. Denim mills ltd.
7. BM Container Depot Ltd.
8. Globe Textile Mills Ltd.
9. City Home Properties Ltd.
10. Smart Share & Securities Ltd.
11. Smart Bio-inception Ltd.
12. The Daily Purbodesh

8|Page
2.6 Organogram of the Company

Chairman

Managing
Director
Director

General Manager General Manager Head of Accounts

(Group) (Project) & Finance

Head of Business Head of HR &

(Export Products) Admin

Head of Business
(Energy)

Head of Business
(Food)

Head of Business
(Container
Depot)

Head of Business
(Real Estate)

9|Page
2.7 CSR Activities of the Company
Smart group is greatly determined to enhance the socio-economic condition of mass people.
Hence, they initiated multifarious ventures in “Banshkhali”, one of the coastal areas in
Chittagong which is natural calamity prone area as well. They patronize lot of humanitarian
schemes to help the destitute, so that they can get rid of their sub-human condition.

CSR ventures of Smart Group at a glance:

 Master Nazir Ahmed Degree College, Banshkhali.

 Ambia Khatun Mohila Madrasha, Banshkhali.
 Master Nazir Ahmed Government primary school, Banshkhali.

Other Non-Project CSR Programs:

1. Smart Group established “Master Nazir Ahmed Trust”, the mission of which is to
eradicate the poverty and to enhance the quality of life of people living. For social
development “Master Nazir Ahmed Trust” drives a scheme called “Allowance
scheme for destitute & Old people”. Moreover, they patronize to build 45 houses
for homeless people every year in Banshkhali by this trust.
2. Smart Group, with deep respect built many mosques in different corners of
“Banshkhali”. So that people can perform their prayer and other religious activities
smoothly.
3. For health safety, they provide fund to set up tube well for drinking pure water and
hygienic sanitation system. We arrange medical camp twice in a year for serving
the under privileged people with free treatment, medicine etc.
4. As Banshkhali is a coastal area, its communication system always been affected by
flood, cyclone and other natural calamities. Smart Group patronizes to construct the
destroyed communication system and provide fund to reconstruct of huts of the poor
people.
5. Smart Group have taken a crash program for tree plantation in different area of
Banshkhali to decrease the effect of environmental pollution for better healthy life
of people.
6. Smart Group established an orphanage to ensure proper education, health care,
entertainment etc. for orphans. Their aim is to give them a nice and sound future
life.

Smart group is supremely determined to ensure job security, amiable job atmosphere for
the employees. Moreover, the company provides some extra care and facilities for
employees and their families as well.

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Chapter 3
Marketing Mix

11 | P a g e
3.0 Marketing Mix
The marketing mix (also known as the 4 Ps) is a foundation model. The marketing mix has
been defined as the "set of marketing tools that the firm uses to pursue its marketing
objectives in the target". Thus the marketing mix refers to four broad levels of marketing
decision, namely:

 Product
 Price
 Promotion
 Place

Marketing practice has been occurring for millennia, but marketing theory emerged in the
early twentieth century. The contemporary marketing mix, or the 4 Ps, which has become
the dominant framework for marketing management decisions, was first published in 1960.
In services marketing, an extended marketing mix is used, typically comprising 7 Ps, made
up of the original 4 Ps extended by process, people, and physical evidence.

12 | P a g e
3.1 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.

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 must also create the right product mix. It may be wise to expand current product
mix by diversifying and increasing the depth of 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”.

In developing the right product, marketer have to answer the following questions:

 What does the client want from the service or product?

 How will the customer use it?
 Where will the client use it?
 What features must the product have to meet the client’s needs?
 Are there any necessary features that you missed out?
 Are you creating features that are not needed by the client?
 What’s the name of the product?
 Does it have a catchy name?
 What are the sizes or colors available?
 How is the product different from the products of your competitors?
 What does the product look like?

3.2 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 definition.

It is also a very important component of a marketing plan as it determines firm’s 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 themselves yet, it is unlikely that your target market will be willing to pay
a high price. Pricing always help shape the perception of product in consumers eyes.

13 | P a g e
Always remember that a low price usually means an inferior good in the consumer’s eyes
as they compare our good to a competitor.

Consequently, prices too high will make the costs outweigh the benefits in customer’s
eyes, and they will therefore value their money over 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:

 Market penetration pricing

 Market skimming pricing
 Neutral pricing

Here are some of the important questions that marketers should ask themselves when they
are setting the product price:

 How much did it cost you to produce the product?

 What is the customers’ perceived product value?
 Do you think that the slight price decrease could significantly increase your
market share?
 Can the current price of the product keep up with the price of the product’s
competitors?

3.3 Place
Placement or distribution is a very important part of the product mix definition. Marketers
have to position and distribute the product in a place that is accessible to potential buyers.

This comes with a deep understanding of their target market. Understand them inside out
and they will discover the most efficient positioning and distribution channels that
directly speak with their market.

There are many distribution strategies, including:

 Intensive distribution
 Exclusive distribution
 Selective distribution
 Franchising

Here are some of the questions that marketers should answer in developing their
distribution strategy:

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  Where do your clients look for your service or product?
 What kind of stores do potential clients go to? Do they shop in a mall, in a regular
brick and mortar store, in the supermarket, or online?
 How do you access the different distribution channels?
 How is your distribution strategy different from your competitors?
 Do you need a strong sales force?
 Do you need to attend trade fairs?
 Do you need to sell in an online store?

3.4 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
 Sales Promotion
 Public Relations
 Direct Marketing

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 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
marketers have in boosting their profits online. An extremely good example of this is online
social media and managing a firm's online social media presence.

In creating an effective product promotion strategy, marketers need to answer the following
questions:

 How can you send marketing messages to your potential buyers?

 When is the best time to promote your product?
 Will you reach your potential audience and buyers through television ads?
 What is the promotion strategy of your competitors?

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Chapter 04
Marketing Mix Practices of
Smart Group of Companies Limited

16 | P a g e
4.0 Marketing Mix of Smart Group of Companies
Smart Group is a renowned and huge group of companies in Bangladesh. Marketing Mix
of the company consists of all the concerns of the company. They have a huge line of
Products and for each product there are others P’s as well.

Several types of Products and services like RMG, Textile, Media, Food, Energy etc. are
being offered by the company. They are maintaining the portfolio business and they have
several Strategic Business Units. Different Pricing Strategy, Distribution Strategy and
Promotion Strategy are there for different products.

4.1 Products of Smart Group of Companies

In marketing, a product is a system made available for consumer use; it is anything that can
be offered to a market to satisfy the desire or need of a customer. In retailing, products are
often referred to as merchandise, and in manufacturing, products are bought as raw
materials and then sold as finished goods. A service is also regarded to as a type of product.

Commodities are usually raw materials such as metals and agricultural products, but a
commodity can also be anything widely available in the open market. In project
management, products are the formal definition of the project deliverables that make up or
contribute to delivering the objectives of the project. In insurance, the policies are
considered products offered for sale by the insurance company that created the contract. In
economics and commerce, products belong to a broader category of goods. The economic
meaning of product was first used by political economist Adam Smith.

Smart Group of Companies offer several products and services in their product line. The
major categories of their products are as follows:

1. RMG
2. Textile
3. Energy
4. Logistics
5. Real Estate
6. Food
7. Media

4.1.1 RMG:
The RMG sector is the backbone of SMART Group. They have established their First
Garments factory in July 2000 with a small plant. They have dealt with the garments
business magnificently. From the day one, they concentrated to achieve quality and
delivery. Then they constructed other garment factories in 2007, 2011 and 2015 with the
most modern state of the art machineries. For Brand excellence, they always make an effort

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to keep up their standard as world class and obviously they always maintain full compliance
and safety constraints. Quality management system, dynamic & enthusiastic leadership
always supports them to achieve the goal of leadership in this sector.

 Facilities: All kinds of Washing, drying

process and Embroidery etc.
 Capacity: 2.5 million bottom and 0.50-
0.70 million outer wear per month
 Export Value: USD 130-160 million per
year
 Achievements: National award in 2011
& 2012, The Best of the Best award on
Quality from customer in 2011 & 2012. Denim Fabric produced at CDML

The Apparel division of Smart Group offers sourcing of basic to high-end apparel for
clients around the globe. The product range includes apparel for Men, Women and Kids in:
circular knitted, flat knitted and woven fabrics of cotton, polyester, rayons, acrylic and a
variety of blends.

Some of the items we specialize in are:

 Men - tees, polos, shirts, Bermudas, pants, sweaters, jackets

 Women - knitted and woven tops and dresses, shirts, shorts, skirts, sweaters, jackets
 Kids - baby suits, rompers, 2 pc sets, shorts, tees and polos, party dresses, tops

Smart Group stays current with global fashion trends - new innovative fabrics, unique
washes, embroidery and trend-setting trims and accessories. Leveraging our network of
suppliers, factories and strategic relationships allows us to offer products at a competitive
cost.

4.1.2 Textile:
CHITTAGONG DENIM MILLS LTD. is one of the leading denim fabric producers in
Bangladesh. CDML has started its journey at 2007 to cater the need of the American,
European and Asian Denim market in Bangladesh.

The vision of CDML is “To produce the best quality Denim Fabric”. Its existing capacity
is 10.8 million yards per year which is going to expand to 30 million yards per year. It has
achieved global standards in quality, cost, service & scale of operation. It is fully compliant
with International, social and Environmental standards. It is certified by Oeko-Tex®
Standard 100. It focused in latest process and technologies to produce finest product with
reasonable cost.

Over the years CDML has got certain strength and to capture future opportunity it has to
expand. It is very confident that it will be successful in the expansion project also.

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CDML is also act as a backward integration of other Garment division of SMART Group.
CDML supplies the denim fabric locally for the International buyers of SMART Group.

 Capacity: 10.8 million yds / year

 Production: 100% Cotton denim, 98% Cotton 2% spandex 60-70% Cotton & 30-
40% Polyester Poly-Stretch
 Product Finish: Regular Denim Finish Mercerized Denim, Coated Denim
 Manpower: 410
 Year Started: April-2007

4.1.3 Energy:
BM Energy (BD) Limited is a joint venture (Netherlands – Bangladesh) company
incorporated in 2012. It was founded with an aim to assist and develop the country to be
more energy efficient with an onset of depletion of Natural Gas.

To achieve this vision, BM Energy has constructed a LPG plant with jetty facility for
Importing, Storing and Bottling in Barabkunda, Sitakunda, Chittagong. This was in
operation from 3rd July 2015. This plant has a capacity of handling 80,000 MT LPG per
year. It has all the European standard, top of the line LPG Storing and Bottling equipment.
It’s ultra-modern automated firefighting system is capable to protect the plant from any
major fire related disaster. Our LPG offloading terminal is a kind of system with 2.2
kilometer pipeline connected with underwater Pipe Line End Manifold (PLEM) and our
Conventional Buoy Mooring (CBM) jetty is designed to berth 5,000 GRT Pressurized LPG
ships. We also have two spherical Tanks with the capacity of 3,000 MT and 24 post carousel
cylinder filling system which is designed and installed by the renowned Kosan Crisplant,
it can fill up around 1,200 pcs cylinder per hour.

They have a plan to expand our current storage capacity by installing new tanks in the
current LPG factory. A Dolphin Jetty is also being constructed to take bigger capacity ships
in our Terminal. Our plan of growth is to build a world class

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 Products of BM Energy (BD) Ltd.
cylinder plant in Boalkhali which will come into operation by May 2017. Our Satellite plant
has already been established in Dhaka which can handle around 20,000 MT in a year. A
new LPG station will be built in Chalna, Mongla. We have a plan to set up Auto gas stations
around the country to promote the use of LPG in the vehicle. The use of LPG in Auto gas
is very popular around the world.

They have been successfully operating in the LPG market since the beginning of our
commercial production from 3rd July 2015 and have become the 3rd largest LPG cylinder
bottler in the country in 2016 after Bashundhara LPG and Jamuna Spacetec JV.

Smart Group hopes to move ahead with our expansion projects to meet the growing need
of LPG. We wish to have your support and wishes to make our dream come true.

4.1.3.1 Features of the Products:

1. 4 different sizes as 12, 20, 33 & 45 kg LP Gas filled Cylinder.
2. Every cylinder follows International DOT 4BA 240 standard.
3. Each size has 2 different color to identify two different size of cylinder valve as
22mm & 20mm.
4. Every cylinder is marketed with Imported valve, Branded safety cap & Security
seal.

4.1.3.2 Uses of BM LP GAS Products:

BM LP GAS offers solution for Residential, Commercial and Industrial needs. Multi
Storied projects, Housing Projects, individual apartments are the main customers of
Residential category.

Hotel/ Restaurants, Bakery, Corporate Houses, Hospitals, Shopping Malls and Function
Malls are the main customers in Commercial Category.

Foam/ Polymar Industry, Iron Industry, Textile, Glass and Ceramics industries are the main
customer in Industrial Categories.

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4.1.3.3 Autogas – Another product oBM Energy:
Cost Effective, Safer, Greener & Cleaner Fuel for vehicles

Figure: Comparison among Fuels of Vehicles

Autogas is the name for Liquefied Petroleum Gas when it is used to power internal
combustion engines of vehicles. Your vehicle just needs a conversion in its engine with the
special Autogas kits to avail various facilities like:

1. An Autogas-powered engine reduces fuel costs: around 40% compared to

2. traditional fuels like Petrol, Octane
3. It requires lower Maintenance cost
4. The conversion kit costs 50% less than a cng kit
5. An Autogas-vehicles have enhanced engine life
6. Auto LPG is safer because of significantly lower tank pressure as compared to CNG.
7. (CNG is stored at 200-250 Bars pressure while LPG is at a pressure of 10-12 Bars.)
8. Autogas is greener & cleaner as it’s a low carbon-content fuel that can reduce your
carbon footprint & harmful emissions with lower engine noise.
9. Auto LPG has far better distribution to gas stations & availability due to ease &
safety in storage transportation by Road Tankers.

4.1.4 Logistics:
BM Container Depot Ltd is a Netherlands-Bangladesh Joint Venture Company located in
Chittagong of Bangladesh. Mr. Bert Pronk from Netherlands is the Chairman and Mr.
Mostafizur Rahman of Bangladesh is the Managing Director of the Company. The sponsors
of the project are resourceful & experienced businessmen since long & they have proven
track records of successfully managing them over the years.

BM Container Depot Ltd is set up as an Inland Container Depot (ICD) which is operating
from the beginning of May 2011 as Export & Import Containerized Cargos
Stuffing/Unstuffing bonded area approx. 20 km from chittagong Port with all sorts of
modern facilities for keeping Export & Import cargos & Empty/Laden Containers.

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Modern ICD Machineries/ Equipment’s like Reach Stackers, Empty Handlers, Forklifts,
Cranes, Prime Movers, Trailers etc be used to operate the activities inside & outside the
ICD. Most of the Machineries/ Equipment’s are being imported from Japan, Sweden, and
Srilanka & India as “Brand New”.

By adhering a global standard of an off dock facility, BM Container Depot Ltd will follow
advanced security systems & automation in operation to give best service to our valued
customers. BM Container Depot Ltd is keen to enhance the growing economy of
Bangladesh & at the backdrop of it is formulating a mission oriented Inland Container
Depot (ICD). Owing to the mission oriented purpose, BM Container Depot Ltd is taking
adequate care in its security systems, equipment’s, construction & business arenas etc. Not
only that BM Container Depot Ltd will adhere to all compliance requirements as well. This
is important to mention that despite Chittagong Port Authority’s (CPA) yard congestion,
productivity has been improving day by day after establishment of private depots (Off
Dock) for empty stacking, stuffing & de-stuffing facilities.

Customer’s satisfaction would be our prime concern & in response to our customer support,
BM Container Depot Ltd is ready to incorporate any new innovation. In the economic
growth of Bangladesh, BM Container Depot Ltd is keen to contribute to the optimum &
thus help our country reach a new dimension in economic progress.

BM Container Depot Ltd looks forward to working in a harmonious relationship with all
the valued Customers & establish itself as one of the finest ICDs in the region.

4.1.5 Real Estate:

CITY HOME PROPERTIES LTD - A Netherlands-Bangladesh Joint Venture Company.

Housing is a fundamental right of all human beings. In keeping with the idea City Home
Properties Ltd. A Netherlands- Bangladesh joint venture company started its journey in
2010 in real estate business sector in Bangladesh to provide ‘Secure Housing’ for the
community. Since its inception from 2010 City Home Properties Ltd-has become one of
the most trusted & leading company in Real estate sector in Bangladesh. Our goal is to
provide our customers trendy, stylish, safe, cost effective and comfortable housing
facilities.

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Current Projects:

1. Ali Vila – Amirabad

2. Ferdous Castle (Agrabad)
3. Furjahan’s Tower (Katalgonj)
4. Kashem Villa (Hajipara)
5. Khan Celestial (Amirbag)
6. Lanostrakasa (Batagali)
7. Mannan Villa (M.M.Ali Road)
8. Mas Manor (Chandanpura)
9. Tower 56 (Patherghata)

4.1.6 Food:
SMART BioINCEPTION LTD. (SBioL) has recently started its journey to bring an
innovative change in the food sector of Bangladesh to ensure better health through
emphasizing on home-grown biotech basedraw/ finished products and processes through
utilizing cutting edge technology. SBioL promises to create a platform to develop skilled
manpower with technological expertise in biotechnology for achieving the national
sustainable developmental goal (SDG). The company has ensured available funding,
intellectual abilities and sufficient collaborative approach between stakeholders to make
the next generation food products available for a healthy life. In this context, SBioL is
intending to work in both local & global arenas through complying the BSTI, FDA, WHO,
ISO- 22000/2005, & ISO-9000/HACCP protocol to bring utmost prosperity inhealth
security &safety. The idea of innovating food products using indigenous resources and
transmit them to industrial venture is obviously new and first time in Bangladesh.

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Currently SBioL is offering the following products to market:

1. Chocolate
2. Candy
3. Nuts
4. Ice-cream (Upcoming)

4.1.7 Media:
The Daily Purbodesh is one of the most modern and widely published newspapers in
Chittagong. Though The Daily was published from Dhaka before and after the
independence of Bangladesh, its publication had been postponed for a long time. In 2012,
Smart Media Limited, a sister concern of the country’s leading industrial group ‘Smart
Group’, has taken over the ownership having been registered as The Daily Purbodesh in
Chittagong. On 12th December, 2012, The Daily Purbodesh has been published with great
enthusiasm from Chittagong for the first time and got reader’s wide acclamation within a
miniscule of time. In the quantity of circulation, The Daily Purbodesh has achieved the 2nd
position among the Dailies published from Chittagong. After publication, The Daily of
‘Smart group’ has been playing crucial role in disseminating education and building the
society in rural and hill track areas in the Chittagong Division.

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4.2 Price
One of the four major elements of the marketing mix is price. Pricing is an important
strategic issue because it is related to product positioning. Furthermore, pricing affects
other marketing mix elements such as product features, channel decisions, and promotion.
Price is the quantity of payment or compensation given by consumers to the company in
return for goods. As the market of Soya bean is unpredictable sometimes it needs to lower
the prices and sometimes it needs to be rationalized. So price of Soya bean oil doesn’t
remain constant due to lack of stability of economic environment, change at exchange rate,
high interest and political unrest. Facing these complexities, NEOL tries to continually
examine and reexamine the prices to make affordable price for the target customers.

4.2.1 Pricing Objective

Pricing objectives or goals give direction to the whole pricing process. Determining what
your objectives are is the first step in pricing. Smart Group’s pricing objectives must be
identified in order to determine the optimal pricing. Common objectives include the
following:

 Current profit maximization - seeks to maximize current profit, taking into

account revenue and costs. Current profit maximization may not be the best
objective if it results in lower long-term profits.
 Maximize quantity - seeks to maximize the number of units sold or the number of
customers served in order to decrease long-term costs as predicted by the experience
curve.
 Maximize profit margin - attempts to maximize the unit profit margin, recognizing
that quantities will be low.
 Quality leadership - use price to signal high quality in an attempt to position the
product as the quality leader.
 Partial cost recovery - an organization that has other revenue sources may seek
only partial cost recovery.

4.2.2 Pricing Strategy

An organization in a competitive market, can adopt a number of pricing strategies. The

pricing strategies are based much on what objectives the company has set itself to achieve.
Smart Group screened its pricing objectives according to its business operations & values.
Pricing strategy, objective and method vary product to product.

1. Pricing at a Premium: With premium pricing, businesses set costs higher than their
competitors. Premium pricing is often most effective in the early days of a product’s life
cycle, and ideal for small businesses that sell unique goods.

25 | P a g e
Because customers need to perceive products as being worth the higher price tag, a business
must work hard to create a value perception. Along with creating a high-quality product,
owners should ensure their marketing efforts, the product’s packaging and the store’s décor
all combine to support the premium price.

2. Pricing for Market Penetration: Penetration strategies aim to attract buyers by offering
lower prices on goods and services. While many new companies use this technique to draw
attention away from their competition, penetration pricing does tend to result in an initial
loss of income for the business.

Over time, however, the increase in awareness can drive profits and help small businesses
to stand out from the crowd. In the long run, after sufficiently penetrating a market,
companies often wind up raising their prices to better reflect the state of their position
within the market.

3. Economy Pricing: Used by a wide range of businesses including generic food suppliers
and discount retailers, economy pricing aims to attract the most price-conscious of
consumers. With this strategy, businesses minimize the costs associated with marketing
and production in order to keep product prices down. As a result, customers can purchase
the products they need without frills.

While economy pricing is incredibly effective for large companies like Wal-Mart and
Target, the technique can be dangerous for small businesses. Because small businesses lack
the sales volume of larger companies, they may struggle to generate a sufficient profit when
prices are too low. Still, selectively tailoring discounts to your most loyal customers can be
a great way to guarantee their patronage for years to come.

4. Price Skimming: Designed to help businesses maximize sales on new products and
services, price skimming involves setting rates high during the introductory phase. The
company then lowers prices gradually as competitor goods appear on the market.

One of the benefits of price skimming is that it allows businesses to maximize profits on
early adopters before dropping prices to attract more price-sensitive consumers. Not only
does price skimming help a small business recoup its development costs, but it also creates
an illusion of quality and exclusivity when your item is first introduced to the marketplace.

5. Psychology Pricing: With the economy still limping back to full health, price remains a
major concern for American consumers. Psychology pricing refers to techniques that
marketers use to encourage customers to respond on emotional levels rather than logical
ones.

For example, setting the price of a watch at $199 is proven to attract more consumers than
setting it at $200, even though the true difference here is quite small. One explanation for
this trend is that consumers tend to put more attention on the first number on a price tag

26 | P a g e
than the last. The goal of psychology pricing is to increase demand by creating an illusion
of enhanced value for the consumer.

6. Bundle Pricing: With bundle pricing, small businesses sell multiple products for a lower
rate than consumers would face if they purchased each item individually. Not only is
bundling goods an effective way of moving unsold items that are taking up space in your
facility, but it can also increase the value perception in the eyes of your customers, since
you’re essentially giving them something for free.

Bundle pricing is more effective for companies that sell complimentary products. For
example, a restaurant can take advantage of bundle pricing by including dessert with every
entrée sold on a particular day of the week. Small businesses should keep in mind that the
profits they earn on the higher-value items must make up for the losses they take on the
lower-value product.

4.2.3 Product-wise Pricing and Strategy

Product Unit Unit Price

RMG PCS BDT 50 – BDT 1000
Textile Yards BDT 65
Energy KG BDT 180
Real Estate SFT BDT 4000 – BDT 12000
Media PCS BDT 5
Figure: Product-wise Unit Price

1. RMG: RMG products are basically produced based on pre ordering system. The price
has been negotiated before starting the production. Smart Group set the price of RMG
products based on many criterions. Before setting the price the buyer’s requirement has
been analyzed very seriously.

Pricing Strategy of RMG: Smart Group follows Cost Based Pricing strategy for RMG
products. When buyer place order, they find out the Cost Per Unit and add a markup amount
to finalize the price.

2. Textile: CHITTAGONG DENIM MILLS LTD. is one of the leading denim fabric
producers in Bangladesh. Textile products are produced for B2B Business. The apparel
industry consists of designers, manufacturers, distributors and retailers dealing in clothing
and fashion accessories targeted at different consumer segments. Its many niches are mostly
saturated, creating a fierce price competition among some brands and an equally fierce
brand-image competition among others. Apparel companies can employ a number of
pricing strategies to differentiate their brand and gain competitive advantages in the
marketplace. Understanding these pricing options can help you develop the ideal pricing
strategy for your own clothing business.

Pricing Strategy for Textile Products: Smart Group follows value pricing strategy for
Textile Products. Value Pricing Strategy sits somewhere between the budget and luxury
27 | P a g e
segments. The key to value pricing is to strike a balance between cost and quality. Value
shoppers are not willing to sacrifice quality for extremely low prices, but they also are not
willing to pay more than apparel is worth simply for a popular brand logo. Consumers in
this segment look for clothing and accessories that will last several years or more, making
the durability of materials a prime concern.

3. Energy – BM LPG: BM LP Gas is the concern of Smart Group where they offer
Cylinder LP Gas for Home Users and Industries. The prices of all variant is as follows:

Products Price
12 KG Cylinder BDT 2350
20 KG Cylinder BDT 3800
33 KG Cylinder BDT 6200
45 KG Cylinder BDT 8500
Figure: Price of BM LP Gas

The current pricing is a mixed system where government is subsidizing all its products and
the importers are following international price trail.

The encouraging fact in Bangladesh’s current LPG pricing is – it follows the international
price. Since the importers are getting bigger in numbers and hence supplying the most
portion of demand (about 80% or more) – they have been following the Saudi Aramco CP.
As government is not controlling price, more investors, local and foreign, are getting
increasingly interested to invest in this sector where demand is showing much higher than
the supply. The existing price of LPG is therefore mostly market driven.

4. Logistics: BM Container Depot Ltd is a Netherlands-Bangladesh Joint Venture

Company located in Chittagong of Bangladesh. Container terminals charge customers a flat
rate per container moved. To be sure, there are a couple of variables; operators charge more
for laden boxes than for empties, and many charge less for transshipment than for import
and export cargoes. By and large, however, terminal pricing is fairly simple: “a hundred
bucks a lift.”

Does one size fit all? In the examples above, we see two kinds of differences. Certain
industries capitalize on their customers’ different levels of price sensitivity; for a variety of
reasons, some people or businesses will pay more for a given good or service than others
will. Companies also reward customers for efficient performance by offering benefits such
as volume discounts.

5. Real Estate: CITY HOME PROPERTIES LTD - A concern of Smart Group. Pricing
of Real Estate business are mixed with various strategies. It is very much depended on the
economy of the country. When the economy booms, they can charge higher price, in the
reverse, the prices fall harmonically.

28 | P a g e
Also the price varies based on the below factors:

1. Location of the Property

2. Size of the Property
3. Class of the Property
4. Existing customers of the property

Considering the above, City Homes set the price of individual projects in individual ways.
The price ranges from BDT 4000 per SFT to BDT 12000 per SFT.

6. Food: SMART Bio INCEPTION LTD. (SBioL) has recently started its journey to bring
an innovative change in the food sector of Bangladesh. As this a new venture and there are
already plenty of competitors in the market. Smart Group set the price using Penetration
Strategy.

The prices of all products are as follows:

Products Price
Candy BDT 1.00
Wafer BDT 8.00
Milk Chocolate BDT 20.00
Gift Pack BDT 200.00

7. Media: The Daily Purbo Desh is a daily newspaper of Smart Group. Usually the price
of the newspaper is Tk. 5 per copy. But the earnings basically come from the
Advertisements. Below there is a list of Press Advertisement of the Newspaper:

Pages Price per Column Inch

Front Page (Color) BDT 1000
Back Page (Color) BDT 500
Page 2 (Black & White) BDT 300
Page 3 (Color) BDT 300
All other Black & White Pages BDT 300
Special Supplement Varies

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4.3 Place
Place is concerned with various methods of transporting and storing goods, and then
making them available for the customer. Getting the right product to the right place at the
right time involves the distribution system. The choice of distribution method will depend
on a variety of circumstances. Smart Group has their own Logistics and Distribution
methods for their every individual product.

4.3.1 Marketing Channel

Avenues used by marketers to make products available to consumers. Wholesalers,

distributors, sales agents, retailers, and all other sources used in getting the product to
consumers are included in the category of marketing channels. Smart Group uses own
designed marketing channel over the country based on the product type and customer type.

4.3.2 Product-wise Distribution Methods and Strategies:

1. RMG & Textile: RMG Products are manufactured based on the client’s custom order.
The manufactured products are delivered abroad as all the manufactured products are
export oriented. In that case the following channel partners are involved in the process:

 Producer
 Consumer

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Distribution method: The process starts with the order received in system. The
specification, quantity and other relevant information. Sales Department forward the order
copies to Production and the production starts. After getting the production done, the
logistics department do the shipment as per the delivery address. The product has been
received directly by the customer abroad.

2. Energy – BM LPG: BM LP gas distributes its product through the indirect marketing
channel. The channel contains two or three intermediary levels. They distribute their
product through a conventional marketing channel.

BM LP Gas initially imports; bottles offer the product to market. The company has state-
of-the-art LP Gas plant in Chittagong which houses 6 gas storage tanks with a capacity of
500 metric tons each. And the 48 filling posts of Carousel Filling System of the plant have
daily refill capacity of 50,000 units of Gas Cylinders.

Distribution Method: For better customer service BM LP gas properly maintains

warehousing, inventory management and transportation. It manages its inventory manually
or on software basis. For the inventory management they use ERP. They have own road
tanker and truck. They have no any third party logistics.

4. Logistics - BM Container Depot: Container Depots are actually the facilitator of

Distribution Channel Management. Usually Container Depots are the place where
containers are stored for a certain time period in order to load and unload the goods.

BM Container Depot is situated in Keshebpur, Sitakund, Chittagong which is strategically

very near from Chittagong Port and placed in Dhk – Chittagong Highway. That’s the main
advantage of BM Container Depot.

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 Figure: Functions of BM Container Terminal

Physical movement represents the transport and transshipment of containerized freight;

storage is the stocking of freight and warehouse management; information management
concerns all accompanying information that comes with the physical movement of freight;
value added activities consist of handling that increases the value of the products
transported (e.g., assembly); financing is the payment for the services that are provided;
ordering is the management of the newly ordered products; complaint handling is the
handling of a dissatisfied final consumer and all actions that are necessary to improve that
(e.g., a helpdesk). The marketing channel flows run through the complete channel from
global producer to logistics service provider, to global shipping line and global terminal
operator. These elements form the maritime part of the marketing channel

6. Food - Smart Bio Inception (SBioL): Their recent venture of Food Products has their
own distribution channel which is working all over the country. As this is a FMCG Product,
they use a full-fledged distribution channel consisting of the following channel member:

i. Manufacturer (SBioL): SBioL manufactures the product in their factory. The

product is packaged and get ready to be sent to next channel partner.
ii. Distributor: Distributor purchases a huge volume for a specific region. Currently
there are 14 regions all over the country as per the cluster divided by SBioL. 14
Distributors are working in their own regions. They stock all the necessary quantity
for a certain region.
iii. Wholesaler/ Agent: In the regional level wholesalers purchase from the Distributor.
They earn a certain percentage of commission from the total sale. Distributors
divides the whole region into small territory and for each territory individual
wholesaler is appointed.
iv. Retailer: Retailers are small shop owners who have direct contact with the
consumers. Retailers get the products from wholesalers and sells directly to
consumers.
v. Consumers: Consumers are the end users who purchase for own consumption.

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7. Media – The Daily Purbo Desh: There are hundreds of ways in which goods and
services can be distributed to consumers. There is no standard distribution system that can
satisfy the needs of every firm. Many organizations use several distribution channels to
reach different market segments. A distribution channel consists of the set of people and
firms involved in the transfer of title to a product as the products move from producer to
ultimate consumer or business user (Stanton 1994). In other words, channel of distribution
is a set of interdependent organizations involved in the process of making a product or
service available for use or consumption by the consumer and business user (Kotler, 2003).

Cost of Distribution: Cost of distribution of Purbo Desh is very high. It’s about 42% of
per unit selling price. The major portion of the distribution cost is agent’s commission,
which is about 85% of the total distribution cost. The details of distribution cost of Purbo
Desh is shown below:

 Agent’s commission — 35%

 Unsold, Trade promotion, Bad debt — 6.5%
 Total distribution cost — 41.5%

Territory Analysis of Circulation: Study shows that Dhaka city is the largest territory of
Purbo Desh’s total circulation. About 46% of its total circulation covers by the circulation
of Dhaka city only. The major sales territories are shown in the following table:

Territory Sales [December 2018]

Dhaka City 33,000 copies
Dhaka Division [excluding Dhaka city] 55,000 copies
Chittagong + Sylhet Division 20,845 copies
Rajshahi division 7,400 copies
Khulna Division 4,250 copies
Barishal Division 1,235 copies
Figure: Region-wise Sales Unit

4% Sales
1%
6% DhakaCity

Dhaka Division [excluding Dhaka

27% city]
17% Chittagong + Sylhet Division

Rajshahi division

Khulna Division
45%

Barishal Division

Figure: Territory Analysis of Circulation

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4.4 Promotion
In marketing, promotion refers to any type of marketing communication used to inform or
persuade target audiences of the relative merits of a product, service, brand or issue. The
aim of promotion is to increase awareness, create interest, generate sales or create brand
loyalty. It is one of the basic elements of the market mix, which includes the four P's;
Product, Price, Place, Promotion.

Promotion is also one of the elements in the promotional mix or promotional plan. A
promotional plan specifies how much attention to pay to each of the elements in the
promotional mix, and what proportion of the budget should be allocated to each element.
The tools of Promotional Mix are:

1. Advertising
2. Sales Promotion
3. Public Relation & Publicity
4. Direct Marketing
5. Personal Selling
6. Digital Marketing

4.4.1 Product-wise Promotional Tools and Strategies

1. RMG & Textile: RMG and Textiles are mainly B2B business. Niche Marketing
Strategies are very suitable for B2B business and Smart Group uses BTL (Below the Line)
promotional tools for this concerns:

Promotional tools for RMG & Textile:

 Advertising: Advertising is the major tool of Promotional Mix. For RMG and
Textile, some sort of BTL Advertising is used like Leaflet, Brochure etc.
 Sales Promotion: Various discounts and offers are available for B2B clients. Credit
sales is also a way of attracting the customers.
 Direct Marketing: Direct Marketing is very powerful promotional tool for B2B
communication. Smart Group uses Direct Marketing to develop new customers,
business and persuade clients with attractive offers.

2. Energy – BM LP Gas: BM LP Gas is one of the major concern of Smart Group. As the
product has several powerful competitors in the market, BM LP Gas needs to do lots of
promotional activities to capture the market shares.

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Promotional Tools for BM LP Gas:

 Advertising: BM LP Gas uses both ATL and BTL advertising for their products.
The major ATL Advertising used by BM LP Gas are:
 Electronic Media: BM LP Gas has their TVC and Corporate AV. This are being
played in TV Channels and Social Medias.
 Print Media: BM LP Gas does Print Media Advertising for the target market.

Figure: Print Media Advertisement of BM LP Gas

 Billboards: Currently BM LP Gas has 50 Billboards all over the country. Billboards
are very useful to communicate with the mass market. The following creative matter
is being used for Billboards:

Figure: Billboard Advertisement Matter of BM LP Gas

 Sales Promotion: As per the practice of Smart Group, they offer discounts, credit
sales and various schemes for the customers.

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 Public Relation & Publicity: BM LP Gas has several publication of news in various
national dailies. Other than this, they sponsor various relevant programs to get
connected with target customers.

Figure: BM LP Gas Sponsorship

 Digital Marketing: As a part of current trend, BM LP Gas are doing various social
marketing activities to capture consumer’s mind. They deliver regular Facebook
posts and promote their Corporate AV in Facebook and YouTube. A few snapshot
of their recent Facebook posts is below:

Figure: Facebook Posts of BM LP Gas

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3. Real Estate – City Home Properties Limited: A real estate company need various
promotional activities to survive in the competitive market. City Home Properties Limited
uses the following promotional tools to promote their business.

 Advertising: Mainly BTL Advertising is done by City Home Private Limited. They
use Leaflet and Brochure to promote their projects. Moreover, they use Project Sign
as ATL activity to promote their individual projects.
 Direct Marketing: Direct Marketing is very effective tool for Real Estate industry.
City Home Limited has their skilled sales people who are always dedicated to
communicate with the customers. Other direct marketing methods like email
marketing, SMS marketing etc. are also done by the company.
 Digital Marketing: City Home Limited uses Facebook for promoting their projects
and various info to the customers. Some snapshots from Facebook page:

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Chapter 05
Findings, Recommendations & Conclusion

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5.1 Findings
1. Smart Group Limited has numerous products in their bucket and they are managing
portfolio business. Their main concerns are Textile & RMG, BM LP Gas, Real Estate
and Food.

Product:

2. Textile and RMG are export oriented B2B Business. Around 30% of total profit comes
from this segment.
3. BM Energy is a new addition to the portfolio and its growing. As the demand of LP Gas
is rising day by day, smart group is expecting good profit from here.
4. The Brand Name, Packaging and Brand color is satisfactory for BM LP Gas. Different
sizes of packaging are helpful to capture all types of customers.
5. City Homes Limited has multiple attractive projects in suitable locations of Chittagong.
Currently they have 9 ready projects and 5 ongoing projects.
6. Smart Bio Inception Ltd. Is a new venture of Smart Group and expecting to capture the
chocolate market of Bangladesh.
Price:

7. Pricing strategies varies product to product. The most common pricing strategies
followed by Smart Group are, Cost based Pricing for RMG & Textile, Market
Penetration Pricing for Food, Mark Up Pricing for energy etc.
8. LPG Price is reasonable compared to the competitors.
9. There are no products in the product line of the company, which was priced as premium.

Place:

10. The distribution channel for Export Oriented products is direct. Only Producer and
Consumer are the channel partners.
11. The distribution channel for BM LP Gas is conventional. The channel partners are
Producer, Dealer, Retailer and Consumers.
12. New products of Smart Bio Inception Limited are FMCG Products and they have
different distribution Channel. The distribution channel is very conventional.

Promotion:

13. The corporate AV of BM LP Gas is informative and attractive in terms of audience

views. They have presence in Digital Medias also.
14. City Homes Limited is promoting their projects using Print Media, Digital Media and
Direct Marketing. Niche Market is highly targeted as this is a real estate product.
15. There is some sort of Sponsorship activities in relevant programs and events.
16. A lot of CSR Programs are run by the company which helps to accelerate the brand
image of the company.

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5.2 Recommendations
1. As Smart Group is maintaining the Portfolio Business, they should analyze all their
Business units as per BCG Matrix. After identifying them, the units from “Dogs”
category should be shut down after hard judgements and Stars, Cash Cows should be
taken cared for future business.
2. Textile and RMG sector should maintain their good quality to survive in the
competitive market.
3. Promotional Activities of BM LP Gas, City Homes and Bio-Inception Limited is very
low. TO capture the market share and retain a good position, company must invest on
Marketing Activities.
4. For BM LP Gas company should increase OOH (Out of Home) branding and Digital
Marketing. Presence in Electronic Media is also recommended.
5. BTL Activities for City Homes Limited should be increased as well as direct
marketing.
6. The company needs Brand-wise promotional activities. The suitable promotional tools
should be come up from proper Marketing Research. As there is lack of Marketing
Research now, company should increase Internal and External Marketing Research to
identify the scopes and problems.

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5.3 Conclusion
Smart Group of Companies a leading corporate house in business arena in Bangladesh.
They try to contribute to our county’s GDP by serving their group of industries.

Smart Group of Companies needs to conduct more marketing research to find out the actual
market position for individual products. Customers or end users are the main strength for
any company, so company need to evaluate the customer response about their product.
Then company can adopt the appropriate marketing strategies.

Based on the study few possible recommendations have been made for the betterment of
the company. If these recommendations can be followed it can be expected that in-future,
all plans are successfully run and they will reach their targeted position.

In this report there may be some limitations because of various factors and also for the
limited knowledge of the researcher. But it was tried best to avoid or minimize mistake in
my report.

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5.4 References
1. Malhotra, Naresh K., Das, Sattyabhushan (2012 – 2013). Marketing Research – An
Applied Orientation, Sixth Edition
2. Belch, George E, Belch, Michael A, 2016-2017. Advertising and promotion: An
integrated Marketing Communication perspective, Tenth Edition, Mc. Grow Hill
Education.
3. Kotler | Armstrong, Principles of Marketing, Pearson Prentice Hall, 14th Edition,
2013, pp 243-251, 408-412.
4. http://www.bgmea.com.bd/home/pages/aboutgarmentsindustry
5. http://www.smartgroupctg.com.bd/
6. http://www.bmenergybd.com/
7. http://www.smartgroupctg.com.bd/smart-bioinception-ltd/#
8. http://smartsharebd.com/
9. https://quickbooks.intuit.com/r/pricing-strategy/6-different-pricing-strategies-
which-is-right-for-your-business/
10. https://www.mckinsey.com/industries/travel-transport-and-logistics/our-
insights/how-to-rethink-pricing-at-container-terminals

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