CONSUMERS PERCEPTION FOR BUYING CERAMIC TILES AND ITS MARKETING STRATEGY A STUDY ON X CERAMIC LIMITED

CONSUMERS PERCEPTION FOR BUYING CERAMIC TILES AND ITS MARKETING STRATEGY A STUDY ON X CERAMIC LIMITED

Prepared for: Professor Abdul Mannan School of Business University of Liberal Arts Bangladesh

Prepared by: Ahammad Khan I !"#$"%%"&" School of Business

May "'( $"%$

Letter of Tran !"tta#

May "'( $"%$

Professor Abdul Mannan School of Business University of Liberal Arts Bangladesh ear Professor Abdul Mannan Sub)ect: Submission of the report titled *+onsumer,s Perception for Buying +eramic -iles and its Mar.eting Strategy!A Study on / +eramic Limited0 1ith profound respect and honor I 2ould li.e to inform you that( I have completed my internship report on *+onsumer,s perception for buying +eramic -iles and its Mar.eting Strategy ! A study on / +eramic Limited03 -his report assisted me to gain significant .no2ledge about +onsumer,s perception and / +eramic Mar.eting Strategy3 I am e4tremely delighted for having the chance to prepare such a report3 5ours 6aithfully(

7A8AMMA K8A9: I ! "#$"%%"&$ epartment of USB University of Liberal arts Bangladesh

Letter of En$or e!ent

-he Internship ;eport entitled *+onsumer,s Perception for Buying +eramic -iles Placement and Alumni( in partial fulfillment of the re<uirements for the and

its Mar.eting Strategy!A Study on / +eramic Limited0 has been submitted to office of egree of Bachelor of Business Administration( Ma)or in Mar.eting( and School of Business Administration on spring $"%$( by Mr3 Ahammad Khan( I = "#$"%%"&"3 -he report has been accepted and may be presented to the Internship efense +ommittee for evaluation3 7Any options( suggestions made in this report are entirely that of the author of the report3 -he university does not condone nor re)ect any of this opinions or suggestions:3

Professor Abdul Mannan School of Business University of Liberal Arts Bangladesh

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Ta%#e of Content
Content Pa&e
Letter of Transmittal...................................................................................................................... i Letter of Endorsement ................................................................................................................. ii Table of Contents........................................................................................................................ iii Contents Page............................................................................................................................................ iii Acknowledgement........................................................................................................................ v Executive Summary.................................................................................................................... vi 1. !ntroduction............................................................................................................................ 1 1.1 "e#ort Preview...................................................................................................................1 1.$ %b&ectives of t'e "e#ort ....................................................................................................$ 1.$.1 Primary %b&ective........................................................................................................$ 1.$.$ Secondary %b&ective( ................................................................................................$ 1.) Sco#e of t'e "e#ort........................................................................................................... $ 1.* Limitations of t'e "e#ort.....................................................................................................$ 1.+ ,et'odology....................................................................................................................... ) 1.+.1 "esearc' -esign......................................................................................................... ) 1.+.$ "esearc' A##roac'.....................................................................................................) 1.+.) Sam#ling ,et'od.........................................................................................................) 1.+.* -ata Collection............................................................................................................ ) 1.+.+ -ata Analysis ,et'od..................................................................................................) $. Ceramic Tiles !ndustry %verview ...........................................................................................) $.1 !ndustry Leaders................................................................................................................. * ). Com#any %verview ............................................................................................................... + ).1 . Ceramics Limited............................................................................................................ / ).1.1 0asic !nformation......................................................................................................... / ).1.$ %wners'i# 1 Ca#ital....................................................................................................2 *. Consumer3s Perce#tion for 0uying Ceramic Tiles..................................................................2 *.1Ceramic Tiles ,arket ..........................................................................................................2 iii

*.$ Ceramic Tiles 0uying Pur#ose...........................................................................................4 *.) 5ariety of Ceramic Tiles 6sage..........................................................................................7 *.* P'ysical attributes of Ceramic Tiles ...................................................................................7 *.+ !nfluencing 8actors in 9ew Ceramic Tiles Purc'ase -ecision..........................................1 +. . ,onica3s ,arketing Strategy ...........................................................................................11 +.1 Situational Analysis.......................................................................................................... 11 +.1.1 S:%T Profile............................................................................................................. 11 +.1.) :eaknesses.............................................................................................................. 1) +.1.* %##ortunities............................................................................................................. 1) +.1.+ T'reats....................................................................................................................... 1* +.$ Customer Analysis........................................................................................................... 1* +.$.1 Target ,arket............................................................................................................ 1* +.$.$ Communication Target...............................................................................................1+ +.$.) -istinctive Ca#abilities ..............................................................................................1+ +.$.* ,arket Segmentation.................................................................................................1+ +.$.+ ,arket 9eeds ........................................................................................................... 1/ +.$./ ,arket Trends and ;rowt'........................................................................................1/ +.) Com#etition Analysis........................................................................................................1/ +.* Positioning Strategy......................................................................................................... 1/ +.*.1 Positioning by Price 1 <uality....................................................................................12 +.+ ,arketing ,ix Strategy.....................................................................................................12 +.+.1 Pricing Strategy..........................................................................................................12 +.+.$ -istribution Strategy...................................................................................................17 +.+.) Product Strategy........................................................................................................$ +.+.).1 Product %fferings....................................................................................................$ +./ -esign t'e Sales 8orce....................................................................................................$* +./.1 Sales %b&ective.......................................................................................................... $* +./.$ Sales 8orce Structure................................................................................................$* +./.$ Sales ,anager........................................................................................................... $* +./.) -uties and "es#onsibilities of t'e Concerned Personal.............................................$+ /. 8indings .............................................................................................................................. $/ 2. "ecommendation and Conclusion.......................................................................................$2

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4. "esearc' timeline ............................................................................................................... $4 "eference ................................................................................................................................. $7 APPE9-!.................................................................................................................................. )

A'(no)#e$&e!ent
6irst of all( I 2ould li.e to than. to Almighty >? for letting me finish my internship report timely3 I 2ould li.e to e4press my gratitude to my academic supervisor Professor Abdul Mannan from the core of my heart for his .ind support( guidance( constructive supervision( instructions( and advice and for motivating me to do this report3 I am also than.ful to my organi@ational supervisor Mr3 Mu)ibur ;ahman3 I am also grateful to the employees of / +eramic Limited3 -hey have been very helpful in sho2ing me the 2or. process and provided relevant information for my report 2henever I approached3 -hey never hesitated or did not feel disturbed 2hen I as.ed <uestions3 It 2as a great opportunity to do internship in such an organi@ation3 -he e4periences I have gathered 2ill be very beneficial for building my career

E*e'+t",e S+!!ar-he purpose of this report is consumer perceptions for buying +eramic tiles in Bangladesh and conte4t of that ho2 / +eramic Limited fi4 their mar.eting strategy3 -iles industry is gro2ing day by day because of increasing demand throughout the country3 -here are some mar.eting strategies follo2s by / +eramic Limited3 In Bangladesh / +eramics Limited is the Brand Ambassador for the Brand Ma)orca( Monica and Auro tiles in the name of B/ MonicaB3 / +eramics mar.eting strategies is almost covering all the customers buying perception( 2hich I got from my research on the 6inding section3 I thin. they run their business on the right 2ay3 / +eramics is e<uipped to produce variety of colors( designs( si@es of 2all and floor tiles3 / MonicaCs full range of collections of Interior and A4terior tiles shall meet your esthetics desire to complete your any dream pro)ect3 1ithin the South Aast Asian ;egion / +eramics Limited going to be the largest +eramic tiles producing industry3

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1 CONSUMERS PERCEPTION FOR BUYING CERAMIC TILES AND ITS MARKETING STRATEGY A STUDY ON X CERAMIC LIMITED

./0 Intro$+'t"on As the final re<uirement of the BBA program in University of Liberal Arts Bangladesh( it is a must for every student to undergo a three months internship program in an organi@ation3 -he interns are re<uired to carry an e4tensive analysis of real 2orld business problem in this Program3 -herefore( I had been placed at / +eramic Limited and get the opportunity to see the overall aspects of that organi@ation specifically the mar.eting side during the internship program3 Mr3 Abdul Mannan( Professor( School of Business( University of Liberal Arts Bangladesh( 2as my internal supervisor and e4ternal supervisors 2as Mr3 Mu)ibur ;ahman( Assistant Manager( Mar.eting( / +eramic Limited 3

./. Re1ort Pre,"e) -he ceramic tiles mar.ets of Bangladesh are gro2ing day by day3 Because <uality house and apartment increasing throughout in the country3 As our people have more money 2as before so they are thin.ing to build hisDher dream house 3So this industry in gro2ing rapidly3 Presently 2e have some good local and foreign invested tiles industry in our countries 2hich are e4panding their range day by day3 Most of them are IS? holder3 Such as ;3A3K3 +eramics Ltd( 6U!1A9> +eramic Industry Ltd3( Mir +eramics( +B+ Limited and / +eramic Limited 3 In this report 2e 2ill see that the perceptions for buying +eramic tiles in Bangladeshi consumer and conte4t of that( 8o2 / +eramic Limited fi4 their mar.eting strategy3

./2 O%3e't",e of t4e Re1ort ./2/. Pr"!ar- O%3e't",e Understand the perception of the ceramic tiles consumer and conte4t of that ho2 / +eramic Limited fi4 their mar.eting strategy3 ./2/2 Se'on$ar- O%3e't",e5 -o .no2 about tiles industries strategy3 -o find out 2hat is the suitable mar.eting strategy for ceramic tiles mar.et3 -o gain practical .no2ledge about ceramic tiles mar.et3

./6 S'o1e of t4e Re1ort As an intern of a ceramic tiles company this study is very much related3 Being an intern I can have the comfortable access to the necessary data and some s.illed peoples help ma.es the scope strong3 ./7 L"!"tat"on of t4e Re1ort >etting perfect respondents can be the main limitation for the study because sometimes they don,t have interest or 2illingness to give the information3 ?n the other hand this study have specific respondent 2ho( are the consumer of the ceramic tiles3 -o reach them I have to visit some different places 2hich can be time consuming as 2ell as costly3 And the last limitation is the total time frame of the study 2hich is strictly fi4ed up3

./8 Met4o$o#o&./8/. Re ear'4 De "&n -he purpose of this study is consumer perceptions for buying +eramic tiles in Bangladesh and conte4t of that ho2 / +eramic Limited fi4 their mar.eting strategy3 So completing this report I need some data about consumer buying perception so I thin. e4ploratory research 2ill be more appropriate for that3 And organi@ational data collected from organi@ation employs and I also fi4 some open!ended <uestion for them3 ./8/2 Re ear'4 A11roa'4 -he respondents 2ill be the consumer of ceramic tiles 2hom are interested to cooperate3 -o collect the data the laddering techni<ue under the in!depth intervie2 method 2ill be preferable3 ./8/6 Sa!1#"n& Met4o$ -he in!depth intervie2 for this study 2ill be limited to ha.a city only due to certain limitations3 Also( it has been mentioned earlier that( the intervie2 2ill be only on the consumer of ceramic tiles3 Intervie2 2ill ta.e )ust '" minutes3 -he sample si@es 2ill be '" for this study3 ./8/7 Data Co##e't"on -he primary data 2ill be collected from the buyer of ceramic tiles3 Moreover( these data 2ill be gathered directly from the respondents through an in!depth intervie23 In addition( the secondary data 2ill be collected from / +eramic Ltd( different articles and from internet3 ./8/8 Data Ana#- " Met4o$ -he data analysis of this research 2ill be mostly represented on <ualitative manner3 It has been mentioned earlier that( the data 2ill be gathered by in!depth intervie2 so most of the analysis 2ill be <ualitative3 8o2ever( there 2ill be fe2 <uantitative solutions3 6or efficient analysis and presentation( application pac.ages li.e ?ffice /P 7Microsoft 1ord( Microsoft A4cel: 2ill be used3

2/0 Cera!"' T"#e In$+ tr- O,er,"e) More players are )oining the ceramic tiles business that has so far pulled in over -. %(""" crore investments 2ith around $" percent annual gro2th rate3 -he construction industry( including

residence( shopping malls and others( is gro2ing so fast that the tiles business is becoming one of the booming and prospective sectors3

Gra14 .5 Gro)t4 Tren$ Local production in the period bet2een %E#& and $""E( 2e 2ill see tiles production has increased from '"" s<uare meters to around %""(""" s<uare meters per day3 Appro4imately %F companies are no2 operating in the mar.et 2ith over -. %(""" crore annual sales turnovers( industry3 According to a mar.et study( the e4isting factories produced nearly '$$ million s<uare feet of tiles in $""F( up from $FF million sft a year ago3 Production reached 'F& million sft in $""# and it is estimated to gro2 at %F percent in $""E and $"%"3 Bangladesh has an opportunity to e4port tiles because the ma)or global player( +hina( is losing advantage to rising production cost3 2/. In$+ tr- Lea$er Already %G factories are operating in the mar.et that has been gro2ing at about $" percent rate for the past several years and posts over -. %(""" crore annual sales turnovers( industry people said3 Use of tiles is no more a fashion3 It,s become an essential increasingly being used in urban and semi!urban areas3

Gra14 25 Mar(et S4are According to mar.et study( e4isting factories produced nearly '$$ million s<uare feet 7sft: of tiles in $""F( up from $FF million sft a year ago3 Production reached 'F& million sft in $""# and it is estimated to gro2 at %F percent in $""E and $"%"3 ?f the total production in $""F( ;AK alone made F& million sft( follo2ed by +hina!Bangla( 6u!1ang and Mir each slightly over '" million sft3 Industry people said history of tiles factories in Bangladesh is not very old3 -he first factory 2as set up by Bangladesh +hemical Industries +orporation( a state!o2ned enterprise( in %E#$3 Private sector established the second one( Modhumoti -iles( in %E##3 -he situation started changing rapidly after $""" 2hen tiles became too cheap to easily replace mosaics3 ;AK +eramics 7Bangladesh: Ltd( a UAA!based company set up in $""'( brought a drastic change in the tiles industry and no2 o2ns one!fourth of the domestic mar.et share3

6/0 Co!1an- O,er,"e) Inde4 is a rapidly gro2ing globally engaged conglomerate based in Bangladesh3 -he business operations of Inde4 currently encompass a number of sub!sectors trough various products and services: Building H Infrastructure +onsultancy H +onstruction( ;eal Astate evelopments( +eramics( Poultry Breeding H 8atchery( Animal 6eed and 6eed Supplements

Manufacturing( +ommodity -rading( 8otels( Advertising H Media( and fe2 other related business activities3 P;? U+-S H P;?IA+ Inde4 +onstruction Ltd3 Inde4 +onsultancy / +eramics Inde4 Agro Industries Ltd3 Inde4 6eeds Ltd3 / Ideas 6orce Inde4

6/. X Cera!"' L"!"te$ Ma)orca( Monica and Auro tiles are the famous names in Aurope and around the 2orld 2hich are ma)or Italian Brands since %EGG3 -he company sets the standard for high <uality and continual innovation3 In Aurope( Monica is one of the fashionable brands of today3 International -echnicians( beyond3 In Bangladesh / +eramics Ltd3 is the Brand Ambassador for the Brand Ma)orca( Monica and Auro tiles in the name of B/ MonicaB3 / +eramics Ltd3 possess the e4clusive right to all three brands of Ma)orca Spa including the Latest 6ashion -iles brand / Monica for Bangladesh( India( 9epal( Bhutan( Myanmar( Sri!Lan.a( and Maldives3 1e are proud to introduce to you the brand /!Monica to fulfill the long e4pected desire of customers 2ithin the region3 / +eramics is e<uipped to produce variety of colors( designs( si@es of 2all and floor tiles3 / MonicaCs full range of collections of Interior and A4terior tiles shall meet your esthetics desire to complete your any dream pro)ect3 esigners( A4perts have e4tended their s.ills to shape Monica for $%st century and

6/./. Ba "' Infor!at"on

+ompany 9ame: Business -ype:

/!+eramics Ltd Manufacturer

ProductDService Address: Brands:

+eramics 1all -iles(+eramics 6loor -iles

8ouse = '&( ;oad = %$(Bloc. = K( Baridhara iplomatic Jone /!Monica Above %""" People http:DD22234ceramics3com

9umber of Amployees: +ompany 1ebsite U;L:

6/./2 O)ner 4"1 9 Ca1"ta# 5ear Astablished: $""# USK$3L Million ! USKL Million +orporationDLimited Liability +ompany Mahin Bin Ma@har

;egistered +apital: ?2nership -ype:

Legal ;epresentativeDBusiness ?2ner:

7/0 Con +!er Per'e1t"on for B+-"n& Cera!"' T"#e -he results are derived from the <uestionnaire of in!depth intervie23 -he <uestionnaire has been already given on the Appendi4 and the outcomes are given in the follo2ing simultaneously:

7/.Cera!"' T"#e Mar(et

Gra14 65 Mar(et ":e 6rom the above pie chart 2e can see that( urban customer is main buyer of ceramic tiles3 -hey cover total FLM mar.et share3 ?n the other hand Semi urban customers cover $"M and village people cover )ust LM of total mar.et share3

7/2 Cera!"' T"#e B+-"n& P+r1o e

Gra14 75 B+-"n& P+r1o e 6rom the above pie chart 2e can see that( &"M customers buying tiles for cost saving3 Because they thin. that tiles cost is less than from other procedure( %"M customer thin.s that tiles save our time3 ?ther L"M buyer thin.s that ceramic tiles are so attractive3

7/6 ;ar"et- of Cera!"' T"#e U a&e

Gra14 85 ;ar"et- of Cera!"' T"#e 6rom the above column diagram 2e can see that( floor tiles mar.et share is greater than 2all tiles3 About F" M mar.et share floor tiles already gain3 1all tiles mar.et share )ust '"M3 7/7 P4- "'a# attr"%+te of Cera!"' T"#e

Gra14 <5 P4- "'a# attr"%+te 6rom the above pie chart 2e can see that( #"M people buying tiles )ust for outloo. they don,t interested about ingredient or duration3 7/8 Inf#+en'"n& Fa'tor "n Ne) Cera!"' T"#e P+r'4a e De'" "on

Gra14 =5 Inf#+en'"n& Fa'tor 6rom the above pie chart 2e can see that( 2hile purchasing ne2 tiles customers firstly loo. for price and their percentage is '"M3 -hen( secondly $LM customers goes for available brand3%EM consumers see. for foreign brand and %$M see. for national brand3 6inally( only %'3''M people hunt for advertisements3

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8/0 X Mon"'a Mar(et"n& Strate&In Bangladesh / +eramics Ltd3 is the Brand Ambassador for the Brand Ma)orca( Monica and Auro tiles in the name of B/ MonicaB3 / +eramics Ltd3 possess the e4clusive right to all three brands of Ma)orca Spa including the Latest 6ashion -iles brand / Monica for Bangladesh( India( 9epal( Bhutan( Myanmar( Sri!Lan.a( and Maldives3 / +eramics produce porcelain and ceramic floor and 2all tiles both for interior and e4terior use( ho2ever( production of e4terior ceramic tiles 2ill be uni<ue in sense that it is for the first time that tiles made of ceramics intended for e4ternal use 2ould be manufactured 2ithin our country3

8/. S"t+at"ona# Ana#- " -his situation analysis starts 2ith a snapshot of the current environment in 2hich / Monica finds itself by providing a brief S1?- 7strengths( 2ea.nesses( opportunities( and threats: analysis3 After this overvie2( the analysis goes into greater detail 2ith regards to industry( competitors( company( and consumers3

8/./. S>OT Prof"#e -he internal and e4ternal situation analysis can produce a large amount of information( much of 2hich may not be highly relevant3 -he S1?- analysis can serve as an interpretative filter to reduce the information to a manageable <uantity of .ey issues3 -he S1?- analysis classifies the internal aspects of the company as strengths or 2ea.nesses and the e4ternal situational factors as opportunities or threats3 Strengths can serve as a foundation for building a competitive advantage( and 2ea.nesses may hinder it3 By understanding these four aspects of its situation( a firm can better leverage its strengths( correct its 2ea.nesses( capitali@e on golden opportunities( and deter potentially devastating threats3

8/././. Interna# Ana#- " -he internal analysis is a comprehensive evaluation of the internal environmentCs potential strengths and 2ea.nesses3 6actors should be evaluated across the organi@ation in areas such as: +ompany culture +ompany image

1$

?rgani@ational structure Key staff Access to natural resources Brand a2areness

Mar.et share 6inancial resources A4clusive contracts Patents and trade secrets

-he S1?- analysis summari@es the internal factors of the firm as a list of strengths and 2ea.ness3

8/././2 E*terna# Ana#- " An opportunity is the chance to introduce a ne2 product or service that can generate superior returns3 ?pportunities can arise 2hen changes occur in the e4ternal environment3 Many of these changes can be perceived as threats to the mar.et position of e4isting products and may necessitate a change in product specifications or the development of ne2 products in order for the firm to remain competitive3 +hanges in the e4ternal environment may be related to: +ustomers +ompetitors Mar.et trends Suppliers threats3 Partners Social changes 9e2 technology Aconomic environment

-he S1?- analysis summari@es the e4ternal environmental factors as a list of opportunities and

1)

8/./2 Stren&t4 %: Ma)orca( Monica and Auro tiles are the famous names in Aurope and around the 2orld 2hich is ma)or Italian Brands since %EGG that is the primary and .ey strength of / Monica3 $: ?ne of the main strength of / +eramic is their latest technological imported plant 2hich is highly computeri@ed3 ': ?ne of the strength of / +eramic is highly professionals and s.illed foreign employees3 &: ?ne of the strength of / +eramic is its production capacity3 It can produce more that %L""" S<Dmeter per day 2hich is the highest as compared to the local competitors3 L: -hey have a computeri@ed system through 2hich communication bet2een different departments can be done faster3 G: -hey have their o2n ;esearch and evelopment department and they al2ays try to see. the ne2 opportunities to improve the <uality and bringing ne2 innovations3 F: -hey have a big distribution net2or. all over the Bangladesh3 -hey have good and long term relationships 2ith their dealers3 #: ?ne of their strength is their loyal and highly s.illed labors3

8/./6 >ea(ne e %: ?ne 2ea.ness of / +eramic is the maintenance and repairing of its manufacturing plant3 ?nce there is a problem in plant then it re<uires a 2hole day for repairing and again become in 2or.ing positions so it could be another 2ea.ness of / +eramic3 $: Another 2ea.ness of / +eramic is that net2or.ing system because there 2hole internal communication based on net2or.ing3 If there could be any problem in main server than their 2hole communication 2ill stop or brea. do2n 3

8/./7 O11ort+n"t"e %: ?nly and first Italy Bangladesh )oint venture industry in Bangladesh for production of lu4ury tiles for floor and 2all3

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$: ?ne of the big opportunities for / +eramic is the gro2ing rate of construction 2hich increases the demand for tiles3 / +eramic is planning to e4pand their production capacity to meet the future demand3

8/./8 T4reat %: ?ne of the threats for / +eramic in local mar.et is huge amount of tiles supply from unorgani@ed local manufacturers3 -his is a threat for reduction in mar.et share of / +eramic3 $: ?ne of the threats for / +eramic is lo2 entry barriers in the industry3 Because of the gro2ing potential of the industry it becomes an attractive industry for ne2 entrants3 -hese ne2 players can capture the mar.et share3 ': ?ne of the threats for / +eramic is price 2ars from the main competitors in the industry3 -o capture the mar.et share the local competitors their prices to catch the more customers and can reduce the mar.et share3

8/2 C+ to!er Ana#- " 9o2 -iles has become an essential part for the decoration of our residential and commercial buildings3 So our target mar.et is those people 2ho can afford and 2ho 2ant to ma.e their lives 2orth living by using these tiles and 2ho focus on beauty as 2ell as lu4ury and style and design3 So company main target mar.et is upper middle class and elite class because lo2er middle class and poor class customers cannot buy tiles3

8/2/. Tar&et Mar(et Pr",ate 8ouse H 6lat ?2ners Angineers evelopers Builders

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Go,ern!ent Military( L>; and P1

8/2/2 Co!!+n"'at"on Tar&et -he communication target is broad in nature as compared to the target mar.et3 8ere( / +eramic targets the people is upper middle class and elite class3 +ommunication target defines the target audience for 2hich the company is going to advertise( people 2ho 2ill 2atch the ads3

8/2/6 D" t"n't",e Ca1a%"#"t"e ?nly and first Italy Bangladesh )oint venture industry in Bangladesh for production of lu4ury tiles for floor and 2all3 9o e4isting product in the mar.et3 Uni<ue design and shape3

8/2/7 Mar(et Se&!entat"on / +eramic segments their mar.et according to geographical and demographic areas >eographic segmentation emographic Segmentation

8/2/7/. Geo&ra14"' Se&!entat"on -he population of the country is segmented into three parts 2hich are urban( sub urban and rural area consumers3 / +eramic targets urban( sub urban people3 8/2/7/2 De!o&ra14"' Se&!entat"on 9o2 -iles have become an essential part for the decoration of our residential and commercial buildings3 So our target mar.et is that people 2ho can afford and 2ho 2ant to ma.e their lives 2orth living by using these tiles and 2ho focus on beauty as 2ell as lu4ury and style

1/

and design3 So company main target mar.et is upper middle class and elite class because lo2er middle class and poor class customers cannot buy tiles3 8/2/8 Mar(et Nee$ / +eramic captured its mar.et by smartly meeting their needs( li.e: ./ Internat"ona# ?+a#"t- T"#e / +eramic is providing the International Nuality tiles3 -hey have hired specially trained <uality employees 2ho are al2ays involved in the <uality chec.ing of the product throughout the manufacturing process3 2/ Pro$+'t Attr"%+te Secondly( the product attributes li.e shape of the tiles( color of the tiles( labeling and uni<uely designed 2hich actually sho2s the <uality of / Monica3 -he product attributes 2ere so attractive that it really helped / Monica strongly entering into the e4isting tiles mar.et of Bangladesh3 8/2/< Mar(et Tren$ an$ Gro)t4 >lobali@ation( technological advancements and innovation changed people personalities( perceptions and preferences3 As a result( no2 a day tiles have become an essential part for the decoration of our residential and commercial buildings3 People 2ant more fashionable and branded tiles3 -his 2as the actual need at the time 2hen / Monica 2as launched3 / +eramic rightly too. the advantage of the available opportunities and satisfied the need of the time3

8/6 Co!1et"t"on Ana#- " In this section( 2e,ll deeply analy@e the direct and indirect competition of / Monica 2ith other ceramic tiles3 -he direct competitor of / +eramic,s is ;AK ceramic3 Both the brands are great threat to each other3 ;AK +eramics 7Bangladesh: Ltd( a UAA!based company set up in $""'( brought a drastic change in the tiles industry and no2 o2ns one!fourth of the domestic mar.et share3

8/7 Po "t"on"n& Strate&-he positioning strategy is the heart of the brand strategy3 Positioning statement typically identify the set of associations 7benefits( <uality( user imagery: that the brand should o2n( the

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support for claiming these associations( and perhaps the tone or personality by 2hich the brand should spea. to its prospects about these concepts3 Positioning statements are the arguments for the brand relative to the other brands in the category and are based on abstracted associations3 6or e4ample( the positioning statement of / +eramic used by Inde4 +onstruction is as follo2s: *+ompany main target mar.et is upper middle class and elite class because3 >lobali@ation( -echnological advancements and innovation changed people personalities( perceptions and preferences People 2ant more fashionable and branded tiles0

8/7/. Po "t"on"n& %- Pr"'e 9 ?+a#"t6or / +eramic( positioning by price it,s a big matter because lots of ceramic tiles factories are in the mar.et3 8o2ever( they strongly focus on positioning by <uality3 -hey have efficiently positioned their product on the basis of product attributes3 6or e4ample( attributes li.e shape of the tiles( color of the tiles( labeling and uni<uely designed 2hich actually sho2s the <uality of / Monica3

8/8 Mar(et"n& M"* Strate&8/8/. Pr"'"n& Strate&?ne of the four ma)or elements of the mar.eting mi4 is price3 Pricing is an important strategic issue because it is related to product positioning3 6urthermore( pricing affects other mar.eting mi4 elements such as product features( channel decisions( and promotion3 1hile there is no single recipe to determine pricing( the follo2ing is a general se<uence of steps that might be follo2ed for developing the pricing of a ne2 product: %: De,e#o1 !ar(et"n& trate&- @ perform mar.eting analysis( segmentation( targeting( and positioning3 $: Ma(e !ar(et"n& !"* $e'" "on @ define the product( distribution( and promotional tactics3 ': E t"!ate t4e $e!an$ '+r,e @ understand ho2 <uantity demanded varies 2ith price3 &: Ca#'+#ate 'o t @ include fi4ed and variable costs associated 2ith the product3

14

L: Un$er tan$ en,"ron!enta# fa'tor @ evaluate li.ely competitor actions( understand legal constraints( etc3 G: Set 1r"'"n& o%3e't",e @ for e4ample( profit ma4imi@ation( revenue ma4imi@ation( or price stabili@ation 7status <uo:3 F: Deter!"ne 1r"'"n& @ using information collected in the above steps( select a pricing method( develop the pricing structure( and define discounts3 -hese steps are interrelated and are not necessarily performed in the above order3 9onetheless( the above list serves to present a starting frame2or.3

8/8/./. Mar(et"n& Strate&- an$ t4e Mar(et"n& M"* Before the product is developed( the mar.eting strategy is formulated( including target mar.et selection and product positioning3 -here usually is a tradeoff bet2een product <uality and price( so price is an important variable in positioning3 Because of inherent tradeoffs bet2een Mar.eting Mi4 elements( pricing 2ill depend on other product( distribution( and promotion decisions3

8/8/./2 Pr"'"n& Met4o$ -o set the specific price level that achieves their pricing ob)ectives( managers may ma.e use of several pricing methods3 -hese methods include: +ost!plus pricing ! set the price at the production cost plus a certain profit margin3 -arget return pricing ! set the price to achieve a target return!on!investment3 Oalue!based pricing ! base the price on the effective value to the customer relative to alternative products3 Psychological pricing ! base the price on factors such as signals of product <uality( popular price points( and 2hat the consumer perceives to be fair3 In addition to setting the price level( managers have the opportunity to design innovative pricing models that better meet the needs of both the firm and its customers3

8/8/./6 Pr"'e D" 'o+nt -he normally <uoted price to end users is .no2n as the list price3 -his price usually is discounted for distribution channel members and some end users3 -here are several types of discounts( as outlined belo23

17

Nuantity discount ! offered to customers 2ho purchase in large <uantities3 +umulative <uantity discount ! a discount that increases as the cumulative <uantity increases3 +umulative discounts may be offered to resellers 2ho purchase large <uantities over time but 2ho do not 2ish to place large individual orders3

Seasonal discount ! based on the time that the purchase is made and designed to reduce seasonal variation in sales3 +ash discount ! e4tended to customers 2ho pay their bill before a specified date3

-rade discount ! a functional discount offered to channel members for performing their roles3 6or e4ample( a trade discount may be offered to a small retailer 2ho may not purchase in <uantity but nonetheless performs the important retail function3

Promotional discount ! a short!term discounted price offered to stimulate sales3

8/8/2 D" tr"%+t"on Strate&/ +eramic Ltd3 is using t2o distribution channels: %: irect istribution3 $: -hird Party istribution3

8/8/2/. D"re't D" tr"%+t"on In direct distribution channel( there are no middle!men or intermediaries3 -he se<uence of direct distribution channel is as follo2s: Producer P ;etailer P +onsumer 7P!;!+: -his istribution channel is applied in ha.a3

8/8/2/2 T4"r$ Part- D" tr"%+t"on -hird party distribution channel involves the sale of offering using intermediaries or Bmiddle! menB to distribute our product or service to the retailers3 -he se<uence of direct distribution channel is as follo2s: Producer! istributor!;etailer!+onsumer 7P! !;!+:

-his

istribution channel is applied in +hittagong3 As tiles industries mainly depend on

dealer so they having more than %"" dealer across the countries3 -hey are not going for direct sealing from the dealer shop they sale their product3

8/8/6 Pro$+'t Strate&8/8/6/. Pro$+'t Offer"n& / +eramic Limited,s product offerings are as follo2s: ANUA ;?MBI

BUBBLA

PAP5;US

$1

6?I;A

PU++I

8?9A5 +?MB

>;A9I-A PI9K

+;?6I;A

>;A9I- BLA+K

6L?1A;

>;A9I-A ?66 18I-A

$$

SA9-UAL S-;A+-U;A

IMPA;IAL 9A;BLA

8/8/6/2 Pro$+'t L"fe C-'#e Product Life +ycle Management is the succession of strategies used by management as a product goes through its product life cycle3 A productCs life cycle 7PL+: can be divided into several stages characteri@ed by the revenue generated by the product3 -he life cycle concept may apply to a brand or to a category of product3 Its duration may be as short as a fe2 months for a fad item or a century or more for product categories3

8/8/6/2/. Intro$+'t"on Sta&e Is the product is the result of 9P or copy competitorsQ 1hich pricing strategy to adoptR penetration or s.immingQ Build channels of distribution( selective distribution3 Any USP( stress on it3 Aducate the mar.et about the product benefits and features3 -he product for the time being is a loss ma.er3 8/8/6/2/2 Gro)t4 Sta&e Sales rises if the ne2 product gain acceptance( production rises( unit costs fall3 8ere( the product starts to yield profits and competitors are attracted3 6irms must put more emphasis on the brand name of the product since consumers are no2 a2are of the product,s benefits3 istribution should become more intensiveRenter ne2 distribution channels3 Pricing may be revie2ed if a s.imming pricing strategy 2as adopted3 +ompanies should lo2er the prices to attract the ne4t layer of price sensitive buyers and finally a firm must attempt to ma4imi@e mar.et share3

$)

8/8/6/2/6 Mat+r"t- Sta&e -his is the stage of fierce competition3 Sales gro2th is slo2do2n3 Most products spend most of their time in the maturity stage of the PL+3 Profits are good3 Improve product <uality and add ne2 product features and improved styling3 Add ne2 models and flan.er products 7i3e3 provide products of different si@es( flavors and so forth that protect the main product:3 Anter ne2 mar.et segments and defend mar.et share3 Secure more support and display in the e4iting outlets3 ;e!positioning of the product in the mind of customers may be a valid alternative as 2ell3

8/8/6/2/7 De'#"ne Sta&e In the declining stage( sales may fall rapidly3 6irms should maintain the sales of the product so far it is contributing to profits or enhances the effectiveness of the product mi43 ;e! positioning may be conducted to e4tend life cycle3 Mar.eting mi4 must be ad)usted accordingly3 8arvestingRgradually reducing a product or business cost 2hile trying to maintain salesRreduce sales force si@e( ;H costs( plant and investment costs( advertising e4penditures and slo2ly pulling out of the business3 ;e)uvenate a product by adding value to the original declining productR5amaha Pianos3 */ Monica falls in bet2een the introductory and gro2th stage of the Product Life +ycle3 Since( / Monica is a 9e2 Product +ategory( hence it is moving to2ard the gro2th stage3 If it gains acceptance( the sales 2ill increase more 2hich 2ill results in the increasing production process and finally the unit cost 2ill be decreased3 -his thing may lead to the threat of more competitors in the future3 -hey may emphasi@e largely on the brand name because the consumers 2ill be a2are of the product,s benefit and they may need to focus more intensive distribution3 8/8/7 8/8/7/. A$,ert" "n& 9 Pro!ot"on Strate&A$,ert" "n& Ca!1a"&n

8/8/7/2 B+$&et */ +eramic spending %LM on advertisement and promotion from their yearly income0

$*

8/8/7/6 T-1e of Me$"a O+t#et At present the +eramics Mar.et is very competitive3 -hat,s 2hy promotion is must3 / +eramic Ltd3 also performs promotional activities3 -hey use different media for advertising3 -he common Medias are listed belo2: Alectronics 7-elevision( ;adio( Internet etc3: 9e2spapers Billboard Avent Sponsoring 1ord of Mouth ?thers

8/< De "&n t4e Sa#e For'e 8/</. Sa#e O%3e't",e / +eramic have a great completive sales e4ecutive in their department3 -hey are fully capable to ta.e any decision or to set their o2n ob)ective3 In most time%G sales department set o2n ob)ective and that approved by the higher authority3

8/</2 Sa#e For'e Str+'t+re / +eramic product or service sales force structure because have too many product line and customer varied in nature3 / +eramic design an efficient sales force 2hich help then to gain Bangladeshi mar.et at a short time3

8/</2 Sa#e Mana&er Mar.eting A4ecutives

$+

Assistant Mar.eting A4ecutives

Area Sales Persons 8/</6 D+t"e an$ Re 1on "%"#"t"e of t4e Con'erne$ Per ona# Sales Manager

Sales Manager +ollect all reports from all Mar.eting A4ecutives about the country and ta.e decision for his sales department3 Mar.eting A4ecutives

Mar.eting A4ecutives collect report from Assistant Mar.eting A4ecutives and prepare divisional report3 -hat report is submitted to Sales Manager3 Assistant Mar.eting A4ecutives

Assistant Mar.eting A4ecutives collect data from different Area Sales Persons and prepare @onal report and submit to Mar.eting A4ecutives Area Sales Persons

Area Sales Persons is responsible for a particular small area3 -he person informs the Assistant Mar.eting A4ecutives about the current mar.et position( ne2 constructions over the area( 2hat could be the ne4t month demand and finally the sale3 +ompany Sales 6orce Nualification

6or high level sales people they are loo.ing for e4perience and the educational <ualification but in the entry level position early time the as.ed only graduate but no2 a day they are loo.ing for MBA holder3 Si@e of the sales force ealers fully so they are 2or.ing as a sales force in spite of this their

As they are controlling

main number of sales people is %G3

$/

</0 F"n$"n& -he purpose of this report is consumer perceptions for buying +eramic tiles in Bangladesh and conte4t of that ho2 / +eramic Limited fi4 their mar.eting strategy3 In our country tiles industry is gro2ing day by day because of increasing of demand throughout in the country3 My main )ob 2as to define the / +eramic mar.eting strategies3 Let,s see on the present / +eramic,s mar.eting strategies are suitable for the consumers or not3 6indings are given belo2: Mar.et Share urban !FLM semi urban!$"M AGra14 @2B / +eramic targets urban( Semi urban people3 So company main target mar.et is upper middle class and elite class3 A8/2/. tar&et

!ar(etB #"M people buying tiles )ust for outloo. they Ma)orca( Monica and Aurotiles are the don,t interested about ingredient or duration3 famous names in Aurope and around the AGra14 @<B 2orld 2hich are ma)or Italian Brands since %EGG3 -he company sets the standard for high <uality and continual innovation3 In Aurope( Monica is one of the fashionable brands of today3 International -echnicians( esigners( A4perts have e4tended their s.ills to shape Monica for $%st century and beyond3 Purchasing ne2 tiles customers firstly loo. 1ithout %'3%'M / +eramic cover rest for price and their percentage is '"M3 -hen( mar.et share3 secondly $LM customers goes for available brand3 %EM consumers see. for foreign brand and %$M see. for national brand3 ?nly %'3''M people hunt for advertisements3 AGra14 =5 Inf#+en'"n& Fa'tor B

$2

=/0 Re'o!!en$at"on an$ Con'#+ "on By this study I have ac<uired some practical .no2ledge about consumer buying perception and ceramic tiles mar.eting strategies3 9o2 I li.e to provide some recommendation( 2hich may be helpful for / +eramic Limited3 As per earnest observation some suggestions for improvement of the situation are given belo2: / +eramic Ltd3 must 2or. hard for the brand image3 Ma.e something for lo2er middle class and poor class customers3 / +eramic Ltd3 should undergo brand e4tension of their product3 istribution net2or. should be clearly segregated to2ards specific product segments3 choice 7customi@ed design specification:3 More introduction of matching 2all and floor tiles3 More focus on pac.aging and product merchandising3 More focus on ;esearch and design!development activities to achieve the cost and product design leadership3 / +eramics is e<uipped to produce variety of colors( designs( si@es of 2all and floor tiles3 / MonicaCs full range of collections of Interior and A4terior tiles shall meet your esthetics desire to complete your any dream pro)ect3 I thin. / +eramic run their business on the right 2ay3 -hey are going to be the largest ceramic tiles producing industry 2ithin the South Aast Asian ;egion3

+ustomers and also give customer a chance to design product in their o2n 2ay of

$4

C/0 Re ear'4 t"!e#"ne $"%$ $"%$ $"%$ $"%$ $"%$ 6ebruary March March April May Information search and purpose of the study 2riting3 Literature revie2 2riting and ta.ing in!depth intervie23 ;esearch <uestion 2riting and ta.ing in!depth intervie23 ;esearch methodology( analysis and rest of the report 2riting3 Submission of internship report3

$7

Referen'e %3 A4plore( Bangladesh3 *Mar.er Shares of +eramic -iles +ompanies0 "'D%ED$""E3Oie2ed "& D%" D$"%$3 Shttp:DDe4plore!bangladesh3blogspot3comD$""ED"'Dmar.er!shares!of!ceramic! tiles3html $3 2223Bangladesh!Aconomy3org *-iles mar.et heats up0%"D$ED$""E3 Oie2ed "$D%"D$"%$ Shttp:DDbangladesheconomy32ordpress3comD$""ED%"D$EDtiles!mar.et!heats!upD

'3 -he 6inancial A4press3 */!+eramics to go for trial production by end of ne4t month0 "FD"LD$""E3Oie2ed "& D%" D$"%$3 Shttp:DD2223thefinanciale4press!bd3comD$""ED"FD"LDF$""&3html &3 2223mar.etresearch3com *+eramic!1all!6loor!-iles!Bangladesh0 "GD %LD$""E3Oie2ed "& D%" D$"%$3 Shttp:DD2223mar.etresearch3comDmapDprodD$'""#&%3html L3 Inde4 3 +ompanies */ +eramic Limited *"%D "%D$""E3 Oie2ed "$ D%" D$"%$3 http:DD2223 Inde4!companies3comD 4 ceramic D-ilesD'!'F!"!$#$#!"!"!/!+eramic! Ltd3html

APPENDIX
Nuestionnaire for In! epth Intervie2 9ame: >ender: Male 6emale

Age: TTTTTTTTT3 Profession: Service Business ?thers 7Please mention:TTTTT &"(""% to %""(""" Above %""("""

Monthly Income:

Belo2 &"("""

7-his intervie2 is only for the educational purpose and all the information about the respondents 2ill be .ept confidential: %3 1hat are the purposes behind for buying ceramic tilesQ +ost saving -ime saving Attractive $3 1hat .ind of ceramic tiles do you usually li.e to buy for your homeQ Indoor o 6loor o 2all ?utdoor o 6loor o 1all Both '3 1hen you buy tiles 2hich things attract firstQ

)1

Ingredient uration esign

&3 1hat are the factors that influencing you at the time of purchasing ne2 soapQ 9ational Brand 6oreign brand Price Availability Advertising L3 o you buy any fi4ed brand of ceramic tilesQ Ans :TTTTTTTTTTTT -hese <uestions are only to give an idea about the type of information e4pected to be gathered from the in!depth intervie23 -he patterns of the <uestions may be changed based on circumstances and some ans2ers form the intervie2ee3 Some additional <uestions may be added from the conversation

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! -8A9K 5?U OA;5 MU+8UU I really appreciate your time and effort for this intervie23