1

Executive Summery
KDS Accessories offers one of the most comprehensive range of apparels
Trims

and

Packaging

products

and

services.

In

Bangladesh

they

manufacture almost all the product in their IMS (ISO-9001:2000, ISO14001:2004, OHSAS-18001:1999) certified international standard facilities
and their products meet global quality standards.
KDSs extensive experience in the industry has helped them acquire
knowledge and information to design products and services that best
suites

their

requirements

of

their

clients.

They

offer

flexibility,

competitiveness and sharper lead times to facilitate demanding sourcing

requirements.
KDSs regional network suppurated by a dynamic team of professionals
allows them to serve their clients as a strong supply chain partner
providing production, consolidation and solution based services.
KDS Accessories believe in working closely with their clients to
understand their core needs to design services accordingly and align
themselves as a strategic partner, helping them realize their vision.

Mission Statement
KDS Accessories intends to supply to its industry with the most visually
interesting buttons available today. They will delight their users and
provide a springboard for creative activity by introducing three types of
buttons i.e. KDS Hand-crafted button, KDS Machine-manufacture button
and KDS Vintage button. KDS believes artistic expression enhances life. It
appreciates the skill of human hands and the sensitivity of human hearts.
It regards buttons as small works of art in which we are able to see
ourselves.

Vision
The vision of KDS Accessories is To be a globally preferred trims and
packaging solutions company.

Current Market Situation

Established in 1983, KDS Group has walked a long journey from being one
of the pioneers of apparels manufacturers in Bangladesh to one of the
biggest conglomerates. Today KDS is fired by a strong ambition to be a
global organization with capabilities to be a world class participant in all
its areas of business.
Operation in industries like Apparels exports, Textiles, Trims and Packaging
, Steel, IT, Inland Container Terminal, Finance & Banking, Insurance and
Investment Management, KDS Group aspire to create value for all through
growth and diversity. At present KDS Group has more than 8000 people in
its different business and generates annual revenue of over US$350
million.

Pioneering in backward linkage industries for the garments industry of

Bangladesh, KDS set up its Accessories manufacturing units KDS
Accessories. The accessories facility at KDS is one of the only composite
units with all its manufacturing units complex. Each factory installed in
separate buildings makes each product development independent source
under KDS Accessories Division. This Makes the Vendors be at comfort
being able to source a wide range of products from just one source. The
quality of the wide range of products that KDS offers has always been
setting standards for our competitors to follow!

Market Description
KDS Accessories is a specialty accessories manufacturing factory offering
a collection of backward linkage accessories to its customers. They are
going to introduce their new product KDS Button to the market. These
buttons are distinguished from those available in the marketplace by the
quality of materials, workmanship and design.
A very simple need which KDS addresses is the need to have fun! Buttons
are wonderfully expressive objects that add unexpected vitality to
clothing. Apparel manufacturers are witnessing a competitive advantage
to using fun and distinctive buttons.
KDS makes such buttons available from home sewers to industrial users.
It means the KDS Button will have their market for both the professional
users in garments industries and the stylish home sewer or designers.
With growth, KDS Button will also establish a market outside the
boundaries of our country depending on the market demand and
opportunities. Buttons of different variety and style will be offered
throughout the year. These will be maintained by the own distribution
channel of KDS Accessories and by the other vendors with particular

expertise.

Target Market
In Bangladesh the Readymade Garments industry is a booming and
matured sector. The garment industry of Bangladesh has been the key
export division and a main source of foreign exchange for the last 25
years. At present, the country generates about $5 billion worth of
products each year by exporting garment. The industry provides
employment to about 3 million workers of whom 90% are women.
The

main

target

of

KDS

Buttons

is

the

Readymade

Garments

manufacturer of the countries who have the export order from the world
renowned stylish brand like Zara, Gucci, Versace, Prada etc.

KDS will target the home sewers also. The home sewer's profile of
Bangladesh looks like:

95 percent female

20 to 42 years of age

Both School/College educated and uneducated.

household income of BDT15,000 and up

Artistic, values originality

Sewers of varying ability

This profile is supported by direct observation of KDS customers.

People who pursue the creative industries value objects made by hand
and purchase them for themselves, their friends and their families. They
are deeply involved in home-based leisure activities such as reading,

gardening and exploring the culinary arts.

Statistics shows that 23 percent of households sew and 20 percent
practice a form of needlework. This is slightly above the national average
and compares favorably to the country. A larger percentage of people
from all over the country attend cultural events and patronize fine art and
antique galleries.
KDS also serves design businesses that focus on residential interiors.
Buttons are used increasingly in the home as an element of interest and
design.

Product Review
The special product features of KDS Button are:

KDS Buttons offers both the aristocratic hand-crafted and machine-

manufactured apparel buttons in a range of materials and finishes.

A high percentage of these buttons are made of natural materials

such as horn, bone, wood, glass and clay.

The hand-crafted buttons are crafted by the professional designers

and they are original and unique in design.

The machine-manufactured buttons are also designed by the graphic

designers and these designs are also unique.

Manufactured metal and synthetic buttons are also offered, together
with a collection of vintage and antique buttons.

All garments benefit from buttons that contribute to their character. KDS
offers an opportunity to reinvent ready-made clothing and engages
people in a creative process. Buttons are a form of ornament. They allow
people to express their personal style in a novel manner.
Designers of garments who have invested a great deal of time and energy
are unwilling to use buttons with nothing to offer but an attractive price.
These people are looking for the perfect button for their creation. KDS
helps people accomplish this and brings the entire process to a satisfying
conclusion.
Buttons are often purchased not for reasons of utility, but simply for their
beauty. Collections of antique style buttons represent a significant
investment and historically rise in value.

Competitive Review
Direct competitors exist in the market. They are A1 Fashion Handlers,
Mastex Accessories, Recent Touch Bangladesh Limited, D.H. Accessories
and

DEKKO

Accessories.

All

of

them

are

Garments

accessories

manufacturer. The strength of these competitors lies in the reputation that

they have in business. Awareness of their product is well established.
A1 Fashion Handlers and Recent Touch Bangladesh Limited offers a limited
selection of unusual buttons produced by their own factory and at a
reasonable price. They offer one-stop shopping for the knitting and
weaving industry, but buttons are not their focus. KDS will compete by
focusing on buttons and by offering a broader and more exciting
selection.
Mastex Accessories appeals to serious sewers who are given to spending
considerable sums on fine fabric. They offer a very broad selection of
buttons in the same price range as KDS. However, access to the buttons
is difficult. They are poorly promoted and customers must be very
determined to select buttons they find attractive. Buttons will be
promoted prominently by KDS in a manner consistent with their quality
and character. Again, KDS will compete by focusing on buttons. The
company will also compete on the basis of design. Those whose needs are
met by both price and design and who may be unwilling or unable to
import at a higher cost will depend on KDS for distinctive buttons.
D.H. Accessories and DEKKO Accessories Ltd offer a product impressive in
its range of quality, price and character. They are the model upon which
KDS patterns itself.
KDS will entice customers away from the D.H. and DEKKO by diligently
manufacturing buttons of high originality. KDS will also manufacture a
large amount of production of vintage and antique design buttons.
Relationships with the local Readymade Garments manufacturer are also

vital to success.

Promotional Objective and Strategies:

One of the greatest challenges KDS will face for its home sewer customers
in its first year of operation is lack of awareness. Initially in the first year,
the targeted customer base is 15%. The company's goal is to double this
number over the next one year and making a market share of 30%.
Strategies for achieving this goal include:

Establishing an auxiliary sales display at the local market on

weekend throughout the year.

Distributing business cards and reprints of the "Grandstand" article
about KDS which appeared in few magazines during the first half of

the year.
Open few outlets in different big supermarkets in the city.
Publishing a quarterly newsletter to existing customers and selected
businesses. The newsletter will solicit referrals, advertise additions

to inventory and notify readers of current sales promotions.

Establishing quarterly sales promotions in May, August, November
and February.
The May sales promotion will be in honor of Mother's Day.
Customers will be treated to an afternoon tea; discounted gift
certificates for mothers will be offered.
During August, Collage will celebrate its anniversary. A fashion
show/competition or other activity will be planned.
November will focus on year-end festivities.

February will highlight Valentine's Day.

Continuing to advertise in the daily newspaper.
Participating in the fundraising activities of public radio.
Supplying area interior designers with button samples mounted on
fabric for them to use with their clients.

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Pricing Policy
Three categories of buttons will be manufactured by KDS for sale. They
are Hand-crafted buttons, Machine-manufactured buttons and Vintage
buttons. The standard industry mark-up is 100 percent.
The average retail price of Hand-crafted and Vintage buttons Tk. 8.25,
Machine-manufactured buttons range in price from Tk. 1.45 to 2.00,
depending on what material is used. Buttons of natural materials are
more expensive.

SWOT Analysis
KDS Button has several powerful strengths on which to build, but their
major weakness is the availability of raw material and inconsistent raw
material prices. The major opportunity is the import substitutions. They
will also face the competition of countries like India and China in the
international market.
Strengths
Demand Driven Industry (more than 4000 units for textiles alone)
Strong presence in local market
Availability of cheaper labor
Geographically situated at ideal location (near end users)
Most setups are self employed and have simpler management
structure

Weaknesses
Obsolete technology machinery and equipment used for manufacturing
Availability of raw material and inconsistent raw material prices
Unskilled labor (only 1% workers have certificate / diploma from

technical training institutions)

Absence of research and development culture
Lack of synergies between Govt. support institutions and practical
market.

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Lack of standardization and quality control

Non-sophisticated marketing sense. (branding & grading)
Unorganized vendor base
Limited access to information (availability of finance, technological

know how & Govt. regulations)

Energy cost

Opportunities
Import substitution.
Free trade agreements like SAFTA
Lesser sophisticated foreign markets.
Research and development and reverse engineering

Threats

Competition from countries like India & China, which have more

advanced engineering technology base.

Lagging in technology, hence producing substandard goods that

hamper consumer perception about local engineering products.

Non-organized manufacturing and vendor base and unhealthy

competition.
Uncertainty in inputs costs
Allowance of duty free textile machinery.
Increasing duties on import of machinery / tools used in manufacturing

of textile machinery and parts

High dependence on single supplier of raw material
Non-existence of research and development culture lily to widen
technology gap more.

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Marketing Strategy
Positioning
After the company has decided which market segment to enter with which
product, it must decide what positions it want to occupy a clear distinctive
and desirable place relative to competing products in the mind of target
customers. The companys entire marketing program should support the
chosen positioning strategy.
Since if a product is perceived to be exactly like another product on the
market, consumers would have no reason to buy it, KDS Button brings
special features on the product as well as significant various services that
positioned the products in the target segments. Products can be
positioned with some positioning strategy. We find that KDS has taken
multi-various strategy to position its various products in the market.

Marketing Mix (4 Ps)

Product Policies:
KDS Button has chosen its all three products (Hand-crafted, Machinemanufactured and antique style) to increase its earnings at a steady
manner from different segments of the country. To attract the customers
the company is providing various design and style which are not available
with competitors products.
KDS Hand-crafted buttons are for those customers of the market who are
well aware of fashion and style. KDS Machine-manufacture buttons are for
the market for huge volume of production and who also care about the
design. KDS Vintage button is for the market who give extra effort on
clothing and for the renowned brands.

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Pricing Policies:
KDS Button came to allow more people in this country to use the most
fashionable buttons in this country. The Bangladesh Garments Industries
entered into a new era, an era of price competition to penetrate the
global market. Bangladeshs economy is growing at a healthy rate which
in turn means that disposable income of Bangladeshis has been on the
rise. And these factors will contribute to a very healthy growth in
garments industry in this country. The mechanics of pricing are simple.
KDS Button launched its business with the penetration strategy to set the
price. It offers the lowest price in the market. Because of the market is
very competitive and price sensitive, growth rate is very high and the
company has to capture new market share as well as retain the old users.

Place:
KDS follows both push and pull strategies in its distribution systems in its
value chain of distribution. In its direct distribution layer KDS will appoint
dealers in different area who are responsible to distribute the product.
Retailers sell those products to final consumer. Customers can choose and
buy new products from nearby customer retail shop.

Advertising & Promotion:

KDS Button basically undertakes advertisement on basis of their product.
They

use

both

of

personal

and

non

communication like

Print Media (Newspaper, Magazine, etc.)

Display Media (Sign Board, Bill Board, etc)
Brochure.
Telephone Marketing.

personal

advertisement

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Their advertising strategy is like Sales Promotion, Good Will building,

Sales discount etc. They use personal or direct marketing only for their
valuable client. This will help them to get discounts in different shops and
stores. On the occasion of different religious and cultural festivals KDS
Button can provide greetings through leaflets, festoons, banners and so
on as a public relation to their existing and potential customers.
Involvement with various social welfare events like, Prothom-alo & KDS
Button Concert to Say No to Drug and promote with Porjoton Corporation
to promote Coxs Bazar & Sundarban to be selected in seven natural
wonders.