Final Report On Tiles 1r1s36

Final Report on

Sales Management MKT-401 Sec-1

Tiles Industries in Bangladesh

EAST WEST UNIVERSITY Sales Management MKT-401 Sec-1

Final Report on Tiles Industries

Submitted toMujahid Mohiuddin Lecturer Department of Business istration East West University

Submitted byMd.Kamrul Ahsan 2004-2-10-005 Arifur Islam ID:2004-2-10-175

Date of submission: 31 July 2007.

2

31 July 2007 The Course Instructor Mujahid Mohouddin East West University Dhaka, Bangladesh. Subject: Submission of Final Report on Sales Management. Dear Sir, With due respect and honor, we are submitting our project paper on Tiles Industry in Bangladesh We have learned a lot and have gained valuable experience while collecting material for this Report. We have done our level best to complete the project paper with the quality of standard. We hope that our report will be able to satisfy you. Yours truly,

Md.Kamrul Ahsan ID:2004-2-10-005

Ariful Islam ID:2004-2-10-175

Md.Samsul Islam Sihab ID:2004-2-10-153

Sonia Sunjid ID:2004-2-14-003

3

Acknowledgement At first, we want to give special thanks to our respective teacher Mujahid Mohiuddin because he gave us the opportunity to prepare the report on company, promotes different types of products to the markets. As our preference, we have chosen R.A.K. Ceramics (Bangladesh) Pvt. Ltd, FUWANG Ceramic Industry Ltd. prepares report based on primary data, information, and follow the slandered format. During the report preparation, we have learned; how to prepare report how to work within group. We have acquired unique knowledge through practical experiences and it will help us in future to prepare other reports or to work in an organization or to do own business. For our report we have visited R.A.K. Ceramics (Bangladesh) Pvt. Ltd, FU-WANG Ceramic Industry Ltd. We want to give thanks to Mohammad Kabir hossain Area Manager (MKT) of FU-WANG and Imtiaj islam Sales Manager because he gives lots of information and it helps us to prepare the report. We also visited some retail stores to know about the retail price and trade price, but the retailers give information to us, it vary from one store to another store and we have done our best.

4

Executive Summary In our country tiles industry is growing day by day because of increasing of demand through out in the country. As our people have more money was before they are thinking for the very good his/her dream house .So this industry in growing rapidly. Presently we have some good local and foreign invested tiles industry in our countries which are expanding their range day by day. Most of them are ISO holder .Such as R.A.K. Ceramics (Bangladesh) Pvt. Ltd, FU-WANG Ceramic Industry Ltd., and Mir Ceramics, CBC Limited and there are lots of new companies in the market. Local companies are not doing so well as good as in the pharmacy market. A Fu Wang Ceramic industry is the pioneer ceramic industry in Bangladesh established in 1995 as a t venture company. In 1996 it turned into 1005 local .the company was primary engaged in production of various types of wall and floor tiles but in short time The Company promotes quality products with competitive price. Fu Wang uses imported raw material, Italian machineries and high experienced Taiwanese technician and engineers. They are already having a well equipped studio for design development. They are using first time laser cut technology for Homogeneous tiles. R.A.K. Ceramics (Bangladesh) Pvt. Ltd. is a UAE – Bangladesh venture. Its mother concern Ras Al Khaimah (R.A.K.) Ceramics, UAE was established in 1989 and within the short time they are become one of the leading producers of high quality Ceramic Wall & Floor tiles and Sanitary wares and exporting to more than 132 countries across the world.R.A.K. Ceramics (BD) Pvt. Ltd. is located at Sreepur, Gazipur in 1999 and started its commercial production in November 2000. The company is equipped with most modern machineries from Italy and successfully started producing Wall, Floor and Gres Porcellanato tiles. R.A.K. Ceramics (BD) Pvt. Ltd. never compromises with its quality One of the main things for our tiles industries all leading company has ISO 9001 or 9002 which assures their quality, quality as European tiles with

5

affordable price. As tiles are comfortable ,hygienic and fashion exotic house living so its getting popularity very rapidly .Now a days after giving our local market we are exporting a big number of countries .We can hope and wish it will expand more and more as days progress.

Table of content Serial No. 1

2 3 4

Topics Name Introduction

Company Information [Fu Wang]

Page No. 8

8-10

Design of the Sales force[Fu Wang]

10-12

Management of the sales force[Fu Wang]

12-13

Role of salesmanship and sales management in this industry: [Fu Wang]

5 Use of digital technology[Fu Wang]

6

13 13

Market potential, sales potential, sales forecast:

7 8 9

[Fu Wang]

13

Maintenance of relationship[Fu Wang]

13

Anything exclusive to that industry to the company: [Fu Wang]

14

6

10

Company Information[Rak]

14-16

11

Design of the Sales force[Rak]

16-18

12

Management of the sales force[Rak]

13

Role of salesmanship and sales management in this industry: [Rak]

14

Use of digital technology[Rak]

18-19

20 20

Market potential, sales potential, sales forecast:

15

[Rak]

20

16

Maintenance of relationship[Rak]

20

17

Anything exclusive to that industry to the company: [Rak]

20

7

Introduction In our country tiles industry is growing day by day because of increasing of need of quality house and apartment through out in the country. As our people have more money was before they are thinking for the good his/her dream house .So this industry in growing rapidly. Presently we have some good local and foreign invested tiles industry in our countries which are expanding their range day by day. Most of them are ISO holder .Such as R.A.K. Ceramics

(Bangladesh) Pvt. Ltd, FU-WANG Ceramic Industry Ltd., Mir Ceramics, CBC Limited. In our report we are working on R.A.K. Ceramics (Bangladesh) Pvt. Ltd, FU-WANG Ceramic Industry Ltd. Which is giving respectively one after another.

Company Information

It is our great pleasure to introduce FU-WANG Group. Since their beginning, always they have been trying to maintain the best quality standard of their products. They produce a comprehensive range of Foods, Beverage & Ceramic Tiles with high quality & standard. They constantly innovate by frequently introducing new foods and beverage creations. Their ceramics tiles are designed to give luxurious and comfortable glance. The mission continuously innovates to increase customer satisfaction by offering high quality taste and standard products.

8

[*].Company Profile: (*). Company Name

:

FU-WANG Ceramic Industry Ltd.

Date of Incorporation:

:

31 March 1995

Listed in Dhaka Stock Exchange

:

May 1998

Listed in Chittagong Stock Exchange

:

May 1998

Commercial Production

:

October 1996 in Unit-1 October 2000 in Unit-2

ISO Certification

:

ISO-9002 Certified on 04 November 1998

Business line

:

Manufacturing various type and size of Homogeneous, Glazed Tiles

Authorized Capital

:

TK. 500 Million

Paid-up Capital

:

TK. 300 Million

Number of Employees

:

491

Products Manufacturing various type and size of Homogeneous, Glazed Tiles, Wall tiles, Border tiles and etc

9

Place 42 Dealers, through out the countries. Mainly in major point area Such as Hatirpul, Mirpur-10.Kakrial in Dhaka city also through out the country. The sale only through on dealer no direct sealing is being made by them.

Promotion At present the Ceramics Market is very competitive. That’s why promotion is must. FU-WANG Ceramic Industry Ltd also performs promotional activities. They use different media for advertising. The common Medias are listed below: 1. Billboard, Sing board(Main promotion activity) 2. Electronics (Television, Radio, Internet etc.) 3. Word of Mouth 4. Showing all FU-WANG products in a particular Shop.

Price Although their price is some time higher than their competitors, they are maintaining high quality. They are the 2nd market leader in case of product quality and production. As their product’s quality are unique and consumers are aware about the quality. So, consumers don’t bother about the pricing

Design of the Sales force Sales Objective: For the entire sales forces the ultimate objective is to create customer satisfaction and companies’ revenue. In spite of that the doing some traditional thing such as Searching and targeting, commutating, allocating scarce product and main objective is selling also.

Sales forces structure:

10

They are mainly using Territorial basis structure but some time they are going for complex structure sales forces for better result.

Size of the sales force: FU-WANG Ceramic Industry Ltd has not much sales force and distributor. But thy said that those sales forces done their job effectively. Those are followings: Based on the above information Sales force or sales people approximately 16 now in the ceramics and the group have 491 employees.

Company Sales Force Qualification: M anagem ent R S M 9 5 -9 8 M id -M a n a g e m e n tS E J u n io r M a n a g e m e nSt O M anagem ent R S M SE M id -M a n a g e m e n t T E 9 9 -0 2 JS E SO J u n io r M a n a g e m e n t AMO

M a s t e rs + E x p e rie n c e M a s t e rs G ra d u a t e M a s t e rs + E x p e rie n c e M a s t e rs B u s in e s s G ra d u a t e s M a s t e rs M a s t e rs G ra d u a t e B u s in e s s G ra d u a t e s / M a nage m e nt R S M /A S M M a s t e rs / M B A SE B u s in e s s G ra d u a t e s 2 0 0 3 -0 5M id -M a n a g e m e n t T E B u s in e s s G ra d u a t e s JS E M a s t e rs / M B A SO M a s t e rs / M B A J u n io r M a n a g e m e n t AMO M a s t e rs / M B A

11

Duties and responsibilities of the concerned personal: Management---Regional sales Manager/Area Sales manger control and monitor the juniors. Evaluate all the activity what are they doing and monitoring that is it up to the mark or not. Mid-Management----Sales executive, Team executive, junior sales executive They are collect data from different Sales officer and prepare report and submit to the top Management. Junior Management-Sales officer is responsible for a particular small area. The person informs Mid-Management about the current market position, new constructions over the area, what could be the next month demand and finally the sale

Strategy Followed: They are not mainly maintaining any particular strategy. Their strategy goes only objective base means they are going for different strategy for different types of customer. Such as one style for individual customer another for Government as a customer.

Management of the sales force: Recruitment and selection Procedure: FU-WANG follows typical Recruitment and selection Procedure. They go for advertising on news paper & online posting. On response based on the short list they select candidate.

Training: For making efficient people for any type of job training is the best way so they do this. FU-WANG mainly goes for on the job training after recruit any people they keep them 6(Six) month provision which means in that time they are trained for him/her work. If necessary the go for abroad training.

12

Supervision: Companies very how closely they supervise sales forces. FU-WANG does supervise their sales forces by showing how to go in a difficult condition while they face.

Motivation: Motivating is the best way to increasing employees productivity for that reason they are providing a very good bounces skim. In spite of that the employees get the TADS, cell phone bill etc.

Controlling and Evaluating of sales force. Controlling and evaluating is very important for any kind of industries mainly for sales forces. The company prepares an action plan to that will help to identify what are jobs they have to do who will responsible to finish the jobs within given period of time. The company will measure the performance, evaluate the performance and take corrective action through tight control. The superior manager report his/her juniors are doing their job or not .From that information the top level manager match with their job list because from that they are approving their tads .They are contorted their dealer 100% as they are works as FU-WANG sales forces.

Role of salesmanship and sales management in this industry: As this is not a convenient item this is why role of salesmanship and sales management is very important. The sales people have to satisfy customer by deleing with their product for good word of mouth and repeat purchase.

Use of digital technology: FU-WANG sales people uses a little digital technology .For the big customer they are providing a multimedia presentation also they have two laptop for use .If any body need they will take it for attending their customer and potential customer.

Market potential, sales potential, sales forecast: Market potential can be 8 cruor taka. as a market leader they are having the highest sales potential as same as 70% of the market potential. 13

Maintenance of relationship: FU-WANG keeps a good relation ship with is external and internal people because they believe they are the life of the company for building up the equity.

Anything exclusive to that industry to the company: FU-WANG differentiated its self by its exclusive design and quality. As they are claiming 2nd highest production and sealing company in the country .Now a days as a local company they are exporting their goods to India, Taiwan, Saudi Arabia and Malaysia. In Malaysia for Malaysian airport all the tiles are goes from FU WANG. In our countries situation the total market is not good but for good relationship over syelet people with their sales people their sales is increasing because their income comes from

Company Information

R.A.K. Ceramics (Bangladesh) Pvt. Ltd. is a UAE – Bangladesh venture. Its mother concern Ras Al Khaimah (R.A.K.) Ceramics, UAE was established in 1989 and within the short span of time it has firmly established itself as one of the world’s leading producers of high quality Ceramic Wall & Floor tiles and Sanitary wares and exporting to more than 132 countries across the world including Europe, America and Australia. It had obtained the ISO 9001 certificate by CICS (Ceramic Industry Certification Scheme), UK in 1997. R.A.K. Ceramics (BD) Pvt. Ltd. is located at Sreepur, Gazipur in 1999 and started its commercial production in November 2000. The company is equipped with most modern machineries from Italy and successfully started producing Wall, Floor and Gres Porcellanato tiles.

14

R.A.K. Ceramics (BD) Pvt. Ltd. never compromises with its quality. Their goal is to satisfy their valued customer by providing ‘High Quality Product’ at affordable price. Quality made them market innovator.

Target Customers in Bangladesh 1. Private : •

House & Flat Owners

•

Engineers

•

Developers

•

Builders

2. Governments : •

Military, LGRD and PWD

Marketing Mix: Product Line & Product Mix

R.A.K Ceramics

Sanitary Ware

Tiles

Wall Tiles Tiles Ceramic s

Mirror Polish (Salt & Pepper)

Floor Tiles Asian WC

European WC

Homogeneou s

Mirror Polish (Soluble Salt)

Mirror Polish (Double Charge) 15

Pricing Although their price is higher than their competitors, they are maintaining high quality. They are the market leader in case of product quality. As their product’s quality are unique and consumers are aware about the quality. So, consumers don’t bother about the pricing. For wall and Flore tiles starts from below 35 taka to over 2000 tk

Promotion At present the Ceramics Market is very competitive. That’s why promotion is must. R.A.K Ceramics (BD) Pvt. Ltd. also performs promotional activities. They use different media for advertising. The common Medias are listed below: 5. Electronics (Television, Radio, Internet etc.) 6. Newspapers 7. Billboard 8. Event Sponsoring 9. Word of Mouth

Place As tiles industries mainly depend on dealer so the are having more than 100 dealer across the countries. They are not going for direct sealing from the dealer shop they sale their product.  Mohammed Trading (Dhaka)  Ipsheeta Trade (Dhaka),  Saikat Trading Co. (khulna)  Kanika Commercial (chitagong) and etc

Design the sales force: Sales Objective: RAK have a great completive sales executive in their department. They are fully capable to take any decision or to set their own objective. In most time

16

RAK sales department set own objective and that approved by the higher authority.

Sales force Structure: RAK follow product or service sales force structure because have too many product line and customer varied in nature. RAK design an efficient sales force which help then to gain Bangladeshi market at a short time.

Sales Manager Marketing Executives

Assistant Marketing Executives

Area Sales Persons

Duties and responsibilities of the concerned personal: Sales Manager: Sales Manager Collect all reports from all Marketing Executives about the country and take decision for his sales department.

Marketing Executives: Marketing Executives collect report from Assistant Marketing Executives and prepare divisional report. That report is submitted to Sales Manager.

Assistant Marketing Executives: Assistant Marketing Executives collect data from different Area Sales Persons and prepare zonal report and submit to Marketing Executives

Area Sales Persons: Area Sales Persons is responsible for a particular small area. The person informs the Assistant Marketing Executives about the current market position, new constructions over the area, what could be the next month demand and finally the sale.

17

Company Sales Force Qualification: For high level sales people they are looking for experience and the educational qualification but in the entry level position early time the asked only graduate but now a days they are looking for MBA holder.

Size of the sales force: As they are controlling Dealers fully so they are working as a sales force in spite of this their main number of sales people is 16.

Strategy Followed Mostly of this organization are flowed individual sales forces strategies so the do and try to avoid Teem or page keg sales forces

Management of the sales force: Recruitment and selection Procedure: RAK follow typical Recruitment and selection Procedure. They go for advertising on news paper & online posting. RAK don’t go for any written test. On response based on the short list they select candidate for oral test.

Training: RAK arrange on job training for its sales force. They don’t have any special program for that, but when necessary they even send their employee to foreign country for more and better training.

Supervision: Supervision is very good for maximum production so mainly they are supervene new sales people for getting his/her target. For commission only section they do supervise.

Motivation: RAK believe that the sales force and the other employee are the key to success. They are very careful about motivation. To motivate the dealers, R.A.K Ceramics (BD) Pvt. Ltd. gives discounts and allowances on the basis of

18

quantity of products purchased by the dealers. Sometimes they give some fixed discounts. To motivate their employee they offer compensation packages. Their sales person’s compensation packages Fixed amount (Salary) + Variable amount (bonus, commission, profit bonus) + Expanse allowance (traveling, lodging, dining etc) +benefits.

Sales Force Control: Sales Force: RAK control its management too strictly every sales person have to give proper reason for every step as very low or high sales. To motivate the dealers, R.A.K Ceramics (BD) Pvt. Ltd. gives discounts and allowances on the basis of quantity of products purchased by the dealers. Sometimes they give some fixed discounts. Distribution Control R.A.K Ceramics (BD) Pvt. Ltd. distributes their products to the dealers and dealers distributed the products to the consumers. Manufacturer

Dealers

Consumers

Pricing Control R.A.K Ceramics (BD) Pvt. Ltd. set up their product price according to their production cost.

19

Role of salesmanship and sales management in this industry: Role of salesmanship and sales management in this industry is very high, 63% of total sales of RAK is done by its sales people. And the ratio is all most same to industry.

Use of digital technology: RAK use in house soft and take its IT department’s help maintain its sales record.

Market potential, sales potential, sales forecast: Market potential: as Bangladesh become a immerging country RAK find a great market potential. Sales potential: Its sales potential is 67% of current sale.

Maintenance of relationship: RAK keeps a great relation ship with is external and internal people because they believe they are the life of the company.

20

References The flowing mentioned wed sites have been used for secondary data.

http://www.fuwanggroup.com/products.html http://www.rakceramics.com/

21