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Introduction
Being a part of Expo Group, Expo Foam has been one of the most
prominent companies producing foam, mattresses and home textiles in
Bangladesh. Although they were not the first to enter the home textile industry,
they have been operating in Bangladesh for a long period of time which gives
them a competitive edge over other companies. The company produces Expo
branded polyurethane foam, and peeled (roll) manufactured with
Computerized foreign machine.
Their products are used in the field of seating and bedding, transportation seats,
furniture, toys and also in sports shoes garments (Islam, 2015).
Offered Products
Expo Group of Industries is the first company in Bangladesh to have started the
production of Polyurethane products. Their versatile flexible and rigid Custom
Formulated Products can be found in the adhesive, taxidermy and custom-
molding industries as well as in many other applications. They develop both
formulations and applications expertise for each customer's unique
requirements. Right now their product can be divided into four Category with
subcategory.
They are:
1. Foam:a) Expo Gold, b) Expo 2014, c) Expo-280, d) Expo Regular, e) Vip
280, f ) Vip 180.
2. Mattress: a. Light mattress, b. Light Coir, c. Light Re-Bonded, d. Light Felt e.
Felt Re-Bonded, f. Full Coir, g. Full Re-Bonded, h. Full Felt and i. Special
Matt Orthopedic mattress.
3. Adhesive: a. Synthetic rubber super quality. b. Synthetic rubber light quality.
4. Pillow: a. Micro fiber pillow, b.Cotton pillow, c. Foam shred pillow.
Expo Foam: Expo Foam is very popular in the foam and mattress market and
very particular about using best raw materials to make the fines quality
products for the consumer. Since last 33 years the company is producing &
marketing “EXPO” brand polyurethane Foam with reputation. They believe in
customer satisfaction thus careful about quality consistency, timely
delivery and customer service. The Company is also producing peeled (Roll)
foam with computerized Foreign Machine, which is being used in Cades/
Sportswear / Hats / Bags etc. for export purpose. Thus in the field of foam
production and marketing Expo Foam and Home Textile Ltd has made a
revolutionary change, keeping the price within customers reach and providing
constant quality, acceptable to valued users.
It is produced out of mostly nature origin raw materials such as : Steel Springs;
Coir Sheets; Cotton Felts, steel Edge Guards etc. It again ensures air
circulation and entire body weight (heavy or light) is being distributed
thoroughly on the Mattress (EXPO GROUP, n.d).
It is produced with thick Coir Sheets & Quilted Clothes. All over the world,
Cotton Mattresses have become obsolete due to the unscientific body posture it
creates when one sleeps on it for 8 hours, this results into irreparable orthopedic
problems; alternatively people needs uninterrupted sound sleep to be 100%
relaxed to start next day activities with full energy. Thus in the field of foam
production and marketing Expo Foam and Home Textile Ltd has made a
revolutionary change, keeping the price within customers reach and providing
constant quality, acceptable to valued users (EXPO GROUP, n.d.).
OBJECTIVES
Methodology
The report has been prepared on the basis of the experience gained during the period
of the internship. To prepare the report of internship, I have collected all kinds if
related data from secondary data.
For secondary data I have gone through different types of publications. I had also
used published data. They are:
Various publications of Expo group
Various publications of international bodies
Company profile of Expo
Research reports
Internet
Value Chain
The value chain of Expo Foam consists of both primary and secondary
activities.
Primary Activities:
The primary activities of Expo Foam encompasses all the core activities starting
from its internal and external logistical arrangements, operations, production,
marketing, selling of goods and also the service provided to consumers.
Inbound logistics:
Expo Foam sources all of their raw materials from abroad. Their major raw
materials are Polyurethane Adhesive, Lamination Adhesive, Synthetic
Rubber Adhesive and Unsaturated Polyester Resin. They mainly source the
raw materials from China, India, USA, Singapore, Malaysia, South Korea
and Thailand. After collecting the raw materials they store it in their own
warehouse in Tejgoan which is separated from their production plant. As the
warehouse is a bit far from the production plant, they use their own
transport to bring the raw materials to the production plant.
Operations:
Before production the raw materials are being brought to the production plant
and stored in an air conditioned storage at very low temperature for 10-12
hours. This is a prerequisite for the production procedure. There are dices
of different shapes according to the type of the foam. After cooling down
the raw materials, according the formulation raw materials are poured into the
dice and from there blocks of foams are produced. For all types of foam the
principal raw materials are polyol and TDI, they use the ratio 2:1 in their
formulation.
The finished goods are being stored in the warehouse inside the production
plant. As they mostly produce goods after getting order from their clients, the
finished good don’t required to be stored in the warehouse for longer time. The
company uses both own and rented transport to deliver the finished goods to
the whole seller, retailer and their own Show rooms. For delivering inside
Dhaka, they mainly use their own logistics and for outside Dhaka they used
hired transportation service.
Expo Foam focuses on developing new customer group and retaining the
existing customer group. Their main competitors are Expo Foam, Apex Foam
and Foamex group. In order to cope up with the competition the company
comes up with different sort of promotional campaign from time to time. At the
same time, they have developed a strong sales network throughout the whole
country. Expo Foam directly sells their products to the customers through
their 12 showrooms across Bangladesh. 8 of the showrooms are inside Dhaka
and the remaining 4 are situated in Chittagong, Khulna, Bogra and Sylhet. At
the same time they sell the products through their dealers across the
whole country. They also sell their products to the furniture producers. In
case of the corporate buyers Expo Foam usually takes the order first and
then produces the goods.
Service:
Support Activities
For the procurement of raw materials Expo Foam has a department named as
Foreign Procure Department. The employees also call it Commercial
Department. This department basically looks for the foreign vendors or raw
material supplier. They find out the cheapest vendor and contacts with them.
They negotiate for the lowest price and fix the deal. At the end the
department imports raw materials through specific procedure. In case of
urgent need of raw materials they source the raw materials from local
market. Production with the local raw materials enables them to minimize
the production cost but in this case they have to compromise with the product
quality. Normally they don’t use local raw materials.
Currently Expo foam is running the company with 300 employees which
includes 20 Executives, 80 Non-Executives and 200 production workers. In
case of hiring employees they focus on young talented manpower. In case of
recruiting executives they depend on the external source. They recruit through
proper screening. But in case of recruiting the production workers, they use
internal source. Expo Foam doesn’t have any training programs for
training their employees. The employees are trained on the Job. But every
employee is given the training of fire safety. The company ensures the proper
health and safety of the workers according to the Bangladesh Labor Law of
2006. They have attractive remuneration system for the employees. The
company gives promotion to the employees depending on the employee
performance.
Technology:
For producing the foam Expo Foam fully depends on foreign technology. The
machines used are basically from Germany, Japan and China. They have
one Mixing Machine, one Horizontal Cutting Machine, one Vertical
Machine, one Packing Machine and two Sealing Machines. Till today, they are
dependent on the old technologies for production which they brought at
the beginning of the company. However the company is planning to bring new
technology to sustain in the competition. They use a software Called Tally
Software for Accounting Division. This software helps them to measure their
Cost of production, profit-loss and so on.
Infrastructure:
Strategies
After going through the activities of Expo Foam, we have tried to
specify the important strategies Expo Foam.
Marketing Strategies
Product: The core products of Expo Foam are Foam and Mattress. They
produce 3 types Mattress which are Spring Mattress, Re-Bonded Mattress and
Coir Mattress. However they are currently planning to enter the Home Textile
market.
Price: In case of pricing Expo Foam follows competitive pricing strategy. But
at the same time they try to maintain the quality and brand value. They have to
set the price a bit higher than the average price. However this doesn’t make
Expo Foam less competition because they have a very good brand image for
ensuring the quality.
Place: Expo Foam has developed a strong supply chain throughout the whole
country. They have 12 Show Rooms of their own through which they directly
sell to the ultimate customer. At the same time they sell to the Whole Seller and
Retailer across the country.
Currently Expo Foam is operating their business only within the boundary of
Bangladesh. But they are procuring raw materials from China, India, USA,
Singapore, Malaysia, South Korea and Thailand. Through their raw material
supplier they might gather the information of prospective consumer of Foam
in those countries and the current condition of foam industry on those
countries. If they find the markets potential they might expand their
operations on those countries with the help of those suppliers. Expo Foam
might also expand their business to the neighboring countries of Bangladesh or
the South Asian countries if there is a potential market. In case of expanding
operation in foreign countries at initial stage they might go for exporting. Later
on after gaining experience they go for Foreign Direct Investment or Join
Venture.
Swan Foam:
Apex Foam:
Apex Foam was established in 1982 by Mr. Mosharraf Husain. It is one of the
largest and oldest Foam manufacturers in Bangladesh. They usually produce
PU (polyurethane foam), Cushion, Contour pillow and Contour mattress.
After the production of PU, Apex became very famous among customers.
Apex Foam has different series of products like as Gold Series, Premium
series, Acoustic Foam, Peeling Roll Foam etc. Apex Foam uses the modern
technology for the production. Employees are very effective and efficient. All of
these together make Apex Foam one of the leaders in market (Apex Husian c.n).
Akhtar Foam:
Akhtar Foam Industries Ltd. was established in 2008. They have almost 750
dealers in the whole country. They have gotten the 20% of P.U. foam
market because of premium quality foams. They use advanced technology to
continue their mission and dominance. With the strategic goal and efficient
team, Akhtar Foam is crossing the borders of the country. Their products are
Akhtar HD, Akhtar Deluxe, Akhtar Royale, Akhtar Super and Akhtar Premium.
They ensure after sales service and that brings the competitive advantage for
them. They give the guarantee that that will repair or replace the foam
(AKHTAR foam, n.d.).
Expo Swan Apex Akhter
one of the most competitive and reputed first largest and 20% of
companies in Bangladesh home textile company oldest P.U.
industry in Foam foam
Banglades manufactur market
h to have ers in
started Bangladesh
the
production
of
polyuretha
ne
products
gained the , Akhtar
first Foam is
movers crossing
advantage the
borders
of the
country
strong Employees . They
provide excellent customer service to customer are very ensure
its customers in order to attain ultimate relationshi effective after
customer satisfaction. p and sales
efficient service
and that
brings
the
competiti
ve
advantag
e for
them.
1. Foam:a) Expo Gold, b) Expo 2014, c) huge different Their
Expo-280, d) Expo Regular, e) Vip 280, f variety of series of products
) Vip 180. products products are
2. Mattress: a. Light mattress, b. Light such as like as Akhtar
Coir, c. Light Re-Bonded, d. Light Felt e. Rebounde Gold HD,
Felt Re-Bonded, f. Full Coir, g. Full Re- d foam, Series, Akhtar
Bonded, h. Full Felt and i. Special Matt Pu roll Premium Deluxe,
Orthopedic mattress. foam series, Akhtar
3. Adhesive: a. Synthetic rubber super sheet, Acoustic Royale,
quality. b. Synthetic rubber light quality. Expo ash, Foam, Akhtar
swan Peeling Super
4. Pillow: a. Micro fiber pillow, b.Cotton
exclusive Roll Foam and
pillow, c. Foam shred pillow.
etc. Akhtar
Premium.
largest produce
raw PU
materials (polyuretha
stock in ne foam),
Banglades Cushion,
h Contour
pillow and
Contour
mattress
Challenges
Although Over the years Expo Foam has established itself as one of the
most competitive companies of the home textile industry in Bangladesh, It still
face some problems conducting the business which is very much obvious for
any business. The challenges can be encompasses problems regarding
sourcing materials, market based challenges and other related problems.
As Expo Foam believes in ultimate quality of its products, it collects all the raw
materials from foreign countries which at times creates problem for them
in terms of easy access to raw materials, availability of TDI and other
chemicals etc.
Although Expo Foam imports high quality raw materials from abroad,
sourcing the raw materials becomes time consuming process at times.
Especially in case of emergency large orders, they face issues accessing
quality raw materials. Thus they have to collect raw materials from local
supplier which is not good in terms of quality. This in turn leads to
poor quality production.
Availability of chemicals:
The chemicals Expo Foam imports from abroad have shorter life. Within one to
two months the chemicals expires. So they can’t purchase bulk amount together
and they have to order chemicals in every two months. So the shipment cost
becomes higher and this leads to higher cost of production. Insufficient
resources: Market based challenges: Well established competitors: There are
few well established competitors already in the market like Expo Foam, Apex
Foam etc. and new companies are entering into the market. So it becomes tough
for Expo Foam to retain its customers because now customers have many
options in their hand and they can shift to another company easily.
Since consumers’ needs are constantly changing and the home textile industry
is an emerging market in Bangladesh, Expo Foam faces certain market related
challenges as well which include customers growing needs, increasing price of
raw materials and weak promotional efforts.
Expo Foam doesn’t offer a large variety. They only produce four types of
foams. Now-a-days customers need has been changing and they want variety in
terms of design, size, shape, color. That is why Expo Foam is facing challenges
in order to cope up with growing customer needs. Keeping customers satisfied
with their low variety in today’s changing market becomes really hard for Expo
Foam.
For advertising, Expo Foam relies on external AD agencies and the advertising
quality is not that good to attract customers. The promotional program is very
weak and they don’t pay attention to strengthen their advertising and promotion
program. The budget of Expo Foam for marketing strategy is very low which
results in poor promotion program and advertising.
Other challenges:
Expo Foam also faces certain challenge which are not in control of the company
but have serious effect on the smooth operation. These mainly include
political and regulatory problems of Bangladesh.
Political Instability:
The political situation of Bangladesh is not stable in recent years. Due to
political turmoil, the businesses here are facing many difficulties. During
blockade, Expo Foam doesn’t get the shipment from foreign importers
on time. So the production becomes delayed and the distribution to
whole country remains off during political turmoil. So the total operation
becomes stagnant.
The companies which use chemicals as their raw materials, Labor Law
2006 imposed strong safety rules and regulation for them. The investigation
team investigates the company every 6 months and if they find any violation of
law they fine a huge amount of money. As Expo Foam uses chemicals in their
operation, they have to maintain the strict safety rules and regulation.
They have to check very frequently whether the rules are maintaining or
not. It is time consuming as well as costly too.
Problems Although Expo Foam is a well reputed and profitable company
in Bangladesh home textile industry, there are certain setbacks which is
pulling the company back and restricting from being the market leader.
Expo Foam is operating for 33 years. In this long journey of their
business, a trusty relationship with their customers has built up. As the relation
with its customers becomes old and trustworthy, sometimes they sell their
products to their customer on credit. At times it results in long delayed payment
quickly and the company should wait for a long time for the payment from
customers. This is not good for the growth of any business.
The logistics system of Expo Foam is normally good. Usually they supply
products to their outlets inside Dhaka with their own transport system. But when
they make shipment outside the capital, they normally take help from the
third party transport system like as courier service. In most cases the
third parties are unprofessional and careless. As a result, the products
become defect while on their custody. So they get their product back
from the outside outlets which incurs additional cost of both remaking the
product and reshipment.
In the first portion of my intern experience I basically learned about all the
process is done in marketing department of Expo and my supervisor is an
employee over there with a target sales. It will be very unjust if he loose his
target because of teaching me office skills so that was my responsibility to help
him in his work and at the same time try to learn from that real working
experience. In this portion I basically organizing papers or bills and analysis
some data about credit allocation and finding out sales record and progress
based on previous sales history and after pointing out listing those names and
provide those names to my supervisor.
In the mid period or second month of my intern experience I involved with tale-
marketing process with the help of my supervisor. So what was my point
contribution here is listed below:
a) Building communication stronger: It’s a psychological satisfaction when
a company personally communicate with its products distributor, those
distributor can really feel connected with the company because of this
action and help in this process.
b) Findings problems: As a part of my training I learned to point out the real
problem for sales declining from the distributor’s point of view. So I
talked to them politely and asked about the real reason why the sales is
not growing that much or why it’s declining than previous records.
c) Try to increase the sales: Well the teaching of the training was after
finding out the problems of the distributor instantly solve those problems
or give positive motivation to the distributor and influence to increase the
order. I followed all the process and at the end I was succeed to increase
some order from the distributors for more sells, this are counted as my
contribution to the organization.
Recommendation
After completing the study I have found that Expo group is a potential
organization. Though it has some negative sides but still it can resolve it
weaknesses and by using its opportunity overcome its threats. Here I have
provided with some recommendation that would be helpful for the organization.
Conclusion
References
1. Expo foam. (n.d.). http://www.expo-family.com/Expo _foam.php
13. https://www.mediate.com/articles/thicks.cfm