Report Marketing Mix of Basundhara Group

NAME IDSyed Hamdun 09-12862-1Hasan Md. Imam 09-13657-1Tarannum Gronthy 09-13654-1

09-12 -1

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The Course Instructor,Marketing Management,Department of Marketing,American International University-Bangladesh.

Subject: Submission of report on Basundhara Group.

Dear Sir,Beg most respectfully to state that we are the student of your course of Marketing Management section ‘I’. We have done a report on a specific topic given by you which is Basundhara group. We have added information about Basundhara Group in our report as much as possible. It has done by a group and in our group we are four in number and our entire group member helped us to prepare the report. We have collected information about Basundhara group from their corporate website. Now our repot is prepared and we are submitting our report to you.

We therefore hope that you will grant our report by as we have made this. Please grant our report so that we can realize that our teamwork is meaningful.

Your obedient students1. Md. Imam Hasan

Id. - 09-13657-12. Gronthy Tarannum

Id. – 09-13654-13. Syed Handun

Id. – 09-12862-1

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Acknowledgement

We have made our report on Basundhara group successfully. To make a standard report we need much information which we have got from different sources and from different persons. We want to give thanks to the persons for whom we have made an effective report, especially thanks to our course teacher Md. Hamidul Islam who gave us correct instruction about an effective report.

Executive Summary

To make an effective report we had to collect information, put information on the report and we had to work harder. Also we have worked in a team with our group members. So we have learnt many things when we had made the report. It was a teamwork that is why we have learnt how to do teamwork. We have learnt about the Basundhara group which one of the largest corporate groups in our country. We have about the marketing strategy of that company, the pricing strategy, product mix strategy of them, promotional strategy, integrated marketing communication process of them, overall we learnt the full corporate strategy by doing this report. These learning will help us in our entire career and will effect on our performance. We believe these learning will excellent reputation for us.

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CONTENT

Name of the topic Page no.Corporate profile 04Mission & Vision 05List of market offering 06Product Mix 08Marketing concepts 09List business portfolio 11

13Bases of Segmentation 14Target Marketing Strategy 15Pricing Strategy 16Evaluation of close competitors 16Suggestion 17References 18

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Corporate profile

The Bashundhara Group has started operation as a real estate venture known as "Bashundhara" under the aegis of the Group's first concern the East West Property Development (Pvt) Ltd in 1987. This project turned out to be a very successful one and had helped foster the growth of trust and confidence of the urban people in "Bashundhara". Dhaka's burgeoning population, coupled with a conspicuously slow growth of housing led to the landmark success of Bashundhara.

More enterprises were established in the early 1990s, covering diverse activities involving the production of cement, paper and pulp, tissue paper, steel, LP Gas bottling and distribution, and a trading company, among others. The group experienced this tremendous growth in a span of less than 10 years. During this period, additional schemes on land development and real estate were launched and those projects focused more sharply on increasing responsiveness to client needs. The Group's first publicly-traded company, the Meghna Cement Mills Limited, is currently listed on the two Stock Exchanges of Bangladesh.The Group now has over 20 major concerns located in different areas of the country. The multi-faceted shopping mall and recreation centre called the Bashundhara City has added glamour to the growth of the group. The Bashundhara City Development Ltd is one step ahead in the longstanding effort to strengthen links with the general people through the unique offering of commercial operations and recreation facilities under single roof.East West Media Group Ltd is the mass media enterprise of the Bashundhara Group that was established in 2009. It now owns Bangla dailies – “The Kaler Kantho” and “The Bangladesh Pratidin”, English newspaper the “Daily Sun” and bilingual online portal “banglanews24.com.bd”. The media house is also planning to launch a FM radio and a television channel soon.

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The Group has come a long way in reaching its goals by complimenting to client needs, learning real-time lessons from past projects, innovating and partnering its project implementation process. Through major investment undertakings in all key sectors, Bashundhara has meaningfully contributed to the country’s economic stability in financial and capital markets. Underlying all of the Group's activities are the common threads of change, flexibility, and fostering closer ties with the Government, the City Corporation and Bashundhara clients. Most of its projects have been success stories - this fact alone is enough to justify a sense of confidence in the Group's future.

Mission & Vision

The era of information and communication technology has changed the world with a whisker and now communication has emerged as the key to trade and development. The rapid development of information and communication technology has turned the world into a global village. Moreover globalization and its all pervasive impacts on states and their economies have made life more competitive, complex and technology driven.

Proximity has turned meaningless as the world is now in the tip of a finger and economy the ultimate focus of a nation and national life. Inter-state trading dependence, investment potentials and free flow of information and raw materials have made the world thriving on the edge of competitiveness.Now ‘staying competitive’ is the key to survival in today’s world of business where quality rules and standard products and services sneak in shedding physical boundaries. Now, the recent global recession and its impacts have shown yet another challenge and the bitter side of the globalization.But despite the global challenges and its impacts on local economy, Bashundhara Group has kept on its forward march with visionary goal, best use of its human resources and meticulous planning. Varied range of products with ensured standard, quality services and most effective managerial efficiencies have made the company a market leader in the respective sectors of its operation.

Keeping main focus on business expansion and growth in the most prospective sectors, the group is continuously taking up projects to make it the largest conglomerate in the business

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arena of Bangladesh despite fast-changing business trend and tricky situation.Depending on the firm foundation and highly professional human resources, the Bashundhara Group is still making good use of its business potentials and also contributing to the development of the local corporate culture and making a significant contribution to the overall development of the country and its economy.But despite intriguing growth and business expansion, the company’s aims and objectives remain the same – to serve people with maximum satisfaction and keep on working for the greater welfare of the people and the country. Still each and every Bashundhara Group companies care for their clients as their obligation and customer satisfaction remains the key to their success.

List of Market offerings Basundhara group is one of the big corporate groups in our country. They have different types of products and services.

Enterprise Products & services Size

East West Property Development Ltd.

Flats, Appartments, Complete home

Meghna Cement Mills Ltd.

Cement

Basundhara Paper Mills Ltd.

Paper

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Basundhara LP Gas Ltd.

LP gas

Basundhara Steel Complex Ltd.

Rod, Steel

Basundhara Media Group

The Daily Sun, Kaler Kontho, Bangladesh Protodin.

Product MixProduct mix consists of all the products and services that a particular company or seller offers for sale. Product mix has different dimensions by which we can categorize the products of the company. The dimensions are:

Product mix width: Product mix width is the number of different product line the company carries. We have mentioned below the product mix width for Basundhara group are like, Housing, Lands & Properties, stationary, Construction & heavy material, Shopping mall & party solution and Media center.

Product mix length: Product mix length is the total number of items the company carries within one product line. The product mix length for Basundhara group are like, under housing they have flats, apartments and complete home solution.

Product mix depth: Product line depth is the number of versions offered of each product in the line. The product mix depth for Basundhara group is like they have different sizes of tissue paper like family size, large size, mini-pack size, etc.

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Product mix for Basundhara Group:

Housing Lands & properties

Stationary product

Construction material & heavy product

Shopping mall & party arranging solution

Media center

Flats Apartments Complete

home solution

Space for home

Plot

Paper Tissue

paper

Rod Steel Cement Ship

Basundhara city

Convention center

The daily Sun

Kaler kontho

Bangladesh protidin

Practice of Marketing Concepts

NO: Company name Logo Marketing concept1.

East West Property Development (Pvt) Ltd.

Product concept

2. Meghna CementMills Ltd.

Production concept

3. Bashundhara PaperMills Ltd.

Production concept

4. BashundharaLP Gas Ltd.

Product concept

5. Bashundhara CityDevelopment Ltd.

Selling concept

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6. Bashundhara SteelComplex Limited

Marketing concept

7. Bashundhara IndustrialComplex Ltd.

Production concept

8. Bashundhara SteelAnd Engineering Ltd.

Selling concept

9. BashundharaLogistics Ltd.

Marketing concept

10. BashundharaFoundation

Marketing concept

11. BashundharaConvention Center

Product concept

12. ToggiWorld

Product concept

13. Gold’sGym

Product concept

14. Bashundhara DredgingCo. Ltd.

Marketing concept

15. BashundharaTechnical Institute

selling concept

16. Bashundhara Food andBeverage industries Ltd.

Production concept

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17. Sundarban IndustrialComplex Ltd.

Selling concept

18. Bashundhara CementIndustries LTD

Production concept

19. Eest WestMedia Group

Product concept

20. Kaler Kantho Product concept

21. Daily Sun Product concept

22. BangladeshPratidin

Production concept

23. Bangla News 24 Production concept

List Business Portfolio:

Basundhara group has several strategic business units. They have developed their strategic business units day by day. All the business units are not equally developed some are highly developed and some are less developed. To see the situation of their strategic business units we have to justify their SBUs by BCG matrix. The strategic business units of Basundhara group are East West Property Development Ltd., Meghna Cement Mills Ltd., Basundhara Paper Mills Ltd., Basundhara LP gas Ltd., Basundhara Steel Complex Ltd., etc.

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Stars: Stars are high-growth, high share businesses or products requiring investment to finance rapid growth. They will eventually turn into cash cows. When growth slows down, stars become cash cows if they able to maintain their category leadership. Basundhara Paper Mills and Basundhara LP Gas are considered as stars because they have adequate market share and growth rate that we have found. Basundhara paper and LP gas are now using rapidly in everywhere and now-a-days they are growing.

Cash cows: cash Cows are low growth, high-share businesses or products that are established and successful SBUs requiring less investment to maintain market share. These are mature, successful business with relatively little need for investment. They generate to continue the strong cash flows that the company needs for its stars.

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Stars

Basundhara LP Gas Ltd., Basundhara Paper Mills Ltd.

Question Mark

Basundhara Steel Complex Ltd.

Cash Cow

Basundhara Media Group, East West Property Development Ltd.

Dogs

Meghna Cement Ltd.

We have considered Basundhara Media Group and East West Property Development Ltd. as Cash Cows because they are generating money more money. They have huge market share but the market growth rate is relatively low.

Question Marks: Question Marks are low share business units in high-growth markets requiring a lot of cash to hold market share. A question mark has the potentiality to gain market share and become a star, also cash cows when the market growth slows down.We have considered the Basundhara Steel Mills Ltd. as question mark because they have high growth rate in market but their market share is low. So they need lot of money to gain market share.

Dogs: Dogs are low growth; low-share businesses and products that may generate some cash t maintain themselves but do not promise to be large sources of profit for the organization. These levels are typically called “break-even”, generating barely enough cash to maintain the business’s market share.We have considered Meghna Cement Ltd. as dog because it has lost their appeal from the market. It had the market share but now-a-days it has fallen down. It needs more money to bring it to the back place.

Downward market stretching : when company introduce an low profile product to respond the competitors attack that’s called Downward market stretching for Boshundhara introducing “Bangladesh protidin “ is one kind of Downward market stretching.

Upward market stretching: When company introduce any high profile product to add prestige or to respond competitors attack is called Upward market stretching. For Boshundhara Introducing Boshundhara city is one kind of upward market strategy.

Combination of both: When company located in the upper or middle range of the market but to achieve both goals of upward or downward they offer both high and low profile products. Boshundhara has high profile product like boshundhara city as well as they have “Bangladesh protidin” as low profile product.

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Bases of Segmentation used by your company

NO: Company name Logo segment1.

East West Property Development (Pvt) Ltd.

Geographic segmentation

2. Meghna CementMills Ltd.

Geographic segmentation

3. Bashundhara PaperMills Ltd.

Geographic segmentation

4. BashundharaLP Gas Ltd.

Geographic segmentation

5. Bashundhara CityDevelopment Ltd.

Demographic segmentation

6. Bashundhara SteelComplex Limited

Geographic segmentation

7. BashundharaConvention Center

Demographic segmentation and Behaverial segmentation

8. Gold’sGym

Demographic segmentation

9. Bashundhara Food andBeverage industries Ltd.

Geographic segmentation

10. Bashundhara CementIndustries LTD

Geographic segmentation

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11. Eest WestMedia Group

Physiographic segmentation

12. Kaler Kantho Physiographic segmentation

13. Daily Sun Physiographic segmentation

14. BangladeshPratidin

Physiographic segmentation

15. Bangla News 24 Physiographic segmentation

Target Marketing strategies followed by the company

Boshundhara follows differentiated marketing strategy as a target market strategy. They offer different products with different design, colors, and characteristics for different segments.

Pricing Strategies followed by the company (Bashundhara Group):-

Bashundhara group can adopt a number of pricing strategies. The pricing strategies are based much on what objectives the company has set itself to achieve.1. Penetration pricing- Is where the organization sets a low price to increase sales and market share.

Characteristics for charging skimming price:-

Effective in price sensitive market.Inverse relationship of production and distribution cost to sales growth can help the company.Low prices must keep competition out of the market.

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2. Skimming pricing- The organization sets an initial high price and then slowly lowers the price to make the product available to a wider market. The objective is to skim profits of the market layer by layer.

Characteristics for charging skimming price:-

Product quality and image must support the price.Buyers must want (demand) the product at the price.Competitors should not be able to enter the market easily (very difficult to copy).

3. Product Line Pricing- Pricing different products within the same product range at different price points. An example would be a video manufacturer offering different video recorders with different features at different prices. The greater the features and the benefit obtained the greater the consumer will pay. This form of price discrimination assists the company in maximizing turnover and profits.

4. Bundle Pricing- The organization bundles a group of products at a reduced price. Bundle pricing increase the revenue & profit of the organization through large volume sales and satisfy the customer by low price.E.g Package price for Travel agencies and set menus of fast-food and restaurants.

Evaluation of the company’s close competitors in terms of marketing mix (4 P’s):-

CompetitorsList of Substitute ProductsThe marketing mix is the set of controllable tactical marketing tools (four Ps) Bashundhara group uses to implement its marketing strategies;

- Product- Price- Place- Promotion

That the Bashundhara group blends to produce the response it wants in the target market. Product: - Product is the goods and services or combination of those that the company offers to the target market at a price.

Price: - Price is the amount of money customers have to pay to obtain the product.

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Place (distribution):- Place (distribution) is the company activities that make the product available to target customers at their convenience.

Promotion: - Promotion is the activities that communicate the merits if the product and convince the target customers to buy it.

>Product:- >Place:-

- Variety -Channels- Quality -Coverage- Design - Assortments- Features - Locations- Brand Image -Inventory- Packaging -Transportation- Services -Logistics

Target Customers

>Price:- >Promotion

- List Price -Advertising- Discounts -Personal Selling- Allowances -Sales Promotion- Payment Period -Public Relations- Credit Terms

Suggestions:

Now a days Bsahundhara Group is leading our market and contributing in our social and economic sector. Now ‘staying competitive’ is the key to survival in today’s world of business where quality rules and standard products and services sneak in shedding physical boundaries. Now, the recent global recession and its impacts have shown yet

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another challenge and the bitter side of the globalization.

But despite the global challenges and its impacts on local economy, Bashundhara Group has kept on its forward march with visionary goal, best use of its human resources and meticulous planning. Varied range of products with ensured standard, quality services and most effective managerial efficiencies have made the company a market leader in the respective sectors of its operation.

Keeping main focus on business expansion and growth in the most prospective sectors, the group is continuously taking up projects to make it the largest conglomerate in the business arena of Bangladesh despite fast-changing business trend and tricky situation.

Depending on the firm foundation and highly professional human resources, the Bashundhara Group is still making good use of its business potentials and also contributing to the development of the local corporate culture and making a significant contribution to the overall development of the country and its economy.

Beside this as a big business group they have to increase their CSR project for the the people a society of this country

REFARENCE

1. Principles of Marketing by Philip Kotler and Gary Armstrong- Twelfth Edition published by Prentice Hall, Upper Saddle River, New Jersey 07458.

2. Advertising and Promotion, G E Belch & M A Belch, 6th Edition.3. Google search4. Corporate Website of Basundhara Group.

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