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Term paper about Marketing strategies of Keya Cosmetics
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INTERNSHIP REPORT
ON
COMPARATIVE MARKET ANALYSIS, CUSTOMERSATTITUDE AND STRATEGIC MANAGEMENT PRACTICES OF
KEYA COSMETICS LTD STUDY ON KEYA SUPER BEAUTY SOAP.
INTERNSHIP REPORT
ON
COMPARATIVE MARKET ANALYSIS, CUSTOMERSATTITUDE TOWARDS KEYA BEAUTY SOAP AND STRATEGIC MANAGEMNET PRACTICES BY KEYA COSMETICS LIMITED
Submitted to
Managing DirectorKeya Cosmetics Limited
Jarun, Konabari,Gazipur, Bangladesh.
Prepared by
Md. Kazim UddinID # 2008041003036
15th Batch MBA (ICT)The School of Business
Southeast University Dhaka-1213
October 18, 2009
Letter of Transmittal
October 18, 2009
ToMd. Anamul HabibCourse InstructorHRM
Dear Sir,
I have the pleasure to submit the Internship Report “Comparative Market Analysis, Customers attitude towards Keya Super Beauty Soap and Strategic Management practices by Keya Cosmetics Limited”. This term paper was assigned to me as a partial requirement of my “Internship Program”.
It was a nice subject to work on and demands huge information gathering, Preparation, understanding, and concentration and subject Knowledge. I made two questionnaires for gathering enough information, prepared much and worked hard to make this report a complete one. I hope this report will convince you that my knowledge on this subject is complete as required by you.
I express by gratitude towards you for assigning me such a nice topic and giving me the opportunity to work on it and submit this report. I stand answerable to any query regarding this report.
Thanking you Sincerely yours,
Md. Kazim UddinID # 200804100303615th Batch MBA (ICT)The School of BusinessSoutheast University Dhaka-1213October 18, 2009
CONTENTS
Code PageAcknowledgement 01Executive Summery 02Introduction 01Historical background of KCL 04product list of KCL 06Objectives of the Study 07Methodology 08Limitations of the Study 09“Part-A” Comparative market analysis 10Market Share of different Soap 11Market Share of KEYA 12Market Share of Tibet & Camelia 13Market Share of Meril & Lily 14Market Share of Aromatic and others Soap 15Comparative market share of different Soap 16Part-B 17Literature Review 18Findings 19Table-1, Graph-1 19Table-2, Graph-2, Graph-3 20Tabel-3, Graph-4, Table- 4 21Graph-5, Table-5 22Graph-6, Graph-7 23Table-6, Graph-8, Table- 7 25Table- 8 26Tabel-9, Garph-9 Table-10 27Table-11, Graph-10, Table-12 28Table-13, Table-14, Garph-11 29
Code Page Part-C 30Objectives of KCL 31Future Policies of KCL 32Goal Setting 33Financial goals of KCL 34Crafting Strategy 35Types of Strategy 37Business Strategy 38Functional & Operating Strategy 39SWOT Analysis 40Core Competencies of KCL 42Value Chains of KCL 43Local & Global Strategy 44Implementing Tasks 45Execution of strategy tasks 46Budgeting 47Manpower policies 48Reward & Incentive System 49Conclusion 50Suggestions 51Appendix 52Bibliography 55
Acknowledgement:
At first I would be very pleased to express my image gratitude, Md. Shaheenur Rahman AGM (Marketing) of Keya cosmetics Limited for his close-up guidance in preparing the desired report.
My special Thanks go to Md. Mahabub Alam AGM (Marketing) of keya cosmetics Limited and also to Manager (Research) Md. Sarower Hossain who helped and supplied all the information to me with the required materials cordially.
I also appreciate and gratitude to all the personnel of marketing and sales department for their cordial cooperation and help.
Executive Summary:
The KEYA Cosmetics Limited is one of the largest cosmetic industries in Bangladesh. It is currently producing international quality cosmetics and toiletry within the normal range of price. Ensuring the high quality, maintaining the reputation, providing reliable products to customer within a convenience price is a complex task for an organization. But “KEYA” can provide all of these because it has maintains strategic plan for achieving its target performances. It has backward linkage integration and both primary and supportive value chain activities. It also maintains the corporate culture and reward and incentives systems for better performance of its employees. Wholesalers, Traders, retailers, and various shopping malls and chain stores. The questionnaire was about the highest, second highest, third highest and fourth highest selling soap’s name, about the quality, current advertisement, packaging and promotion of keya Beauty Soap.
For completing “Part-B” I have also done a survey on the ultimate user of keya super beauty soap and it was about how long they use it? Why they switch of this brand? What kinds of promotion they want? What is their opinion about the quality and price of the soap etc? Both for “Part-A” and “Part-B” I select the random sampling method for collecting data, which is a systematic way to gather information from a large number of populations. Both for “Part-A” “Part-B” the total samples are hundred in numbers.
After completing survey and analysis it is found that in the Soap industry KEYA has only 14.7% market share. 72% respondents said its price is reasonable and only 21% said its quality is excellent. 92% respondents said they get the message from television and they buy number of respondents income level is monthly tk. 5001-15000, whish indicates that the users of KEYA are, lower and lower middle class people.
INTRODUCTION
A successful company is one that customer choose first and customers choose that company which is committed to the four basic pillars-
a) Availability of the product,
b) Provide product with convenience and reasonable,
c) Provide better and qualitative product,
d) Meet the core demand of the consumer by its product,
Keya is stand on the above four pillars and established a strong brand name in the local and foreign market within five years of its Establishment. Before launching any kinds of products or services top management has to think the attitude, preference, likeability, value, taste, and demographical terms etc, which are vital components of target customer of any segmentation. So, it is quite impossible to continue the responsibility of marketing deeds without knowing the behavior of target market. The rapid growth of market share and increase of sales volume clearly indicate it that “Keya” is an established brand in the cosmetics industry of the country.
For completing my MBA program it is very essential to take the internship program and work on a particular subject and that’s why I choose Keya cosmetics limited. I have the curiosity about the market share of keya Beauty Soap in the soap industry and know the behavior of its ultimate user. After completing the survey and its analysis I have learned a lot of which increase my practical knowledge and also will be very helpful on my job field to build up my career.
Page -01
Historical Background of The Company
The Keya Cosmetics Limited is one of the largest and high quality cosmetics Company in Bangladesh. It was incorporated in 14th July 1996 as private limited company under the companies’ act 1994 and registered on joint Stock Company. Subsequently the company has been converted into public limited company by adopting special resolution extra ordinary general meeting of the shareholders held on 20.06.99. The company manufacture and sales cosmetics goods including soaps and chemicals in local and foreign market. Since inception in 1997, KCL has established itself as one of the leading soap manufacture in the country located at jarun, Konabari, Gazipure. Keya Cosmetics Limited came into being in 1996 and commence production in early 1997 as a sister concern of Khaleque group of industries.
By dint of sincere effort, courage and guiding the proper strategy of quality and price its products win the hearts and minds of the populace and achieved on upsurge in consumer within a short span of time. The company, as a result, expanded by adding Euro based most sophisticated machinery. Keya Cosmetics occupies a huge position in the cosmetics world of Bangladesh and its heart and mind-pacifying fragrance has spread over the foreign territories as will. Now the project is fulfilling the long cherished desire of the people of our country by supplying international cosmetics and toiletries products within the competitive range of price.
Keya’s international standard production unit is equipped with modern quality control procedure and microbiological lab with the latest technology and a group of top professional. All of the cosmetics and toiletries are marketed under the brand name of “Keya” Each stage of production undergoes rigorous testing and quality control process. The finished products are again tested to ensure the desired standard of quality before placing products in the market. The raw materials and active ingredients of products of keya cosmetics Ltd. Are imported reputed manufactures of Malaysia, Indonesia, Italy, France, Germany, Japan, Singapore, England, Switzerland and USA. Producing guaranteed international quality cosmetics and toiletries for quality conscious people of home and abroad is its main motto.
Page -02
Keya Cosmetics Limited at a glance
Status Public company limited by shares.
Year of Establishment 14th July, 1996Converted into public Limited Company.
1997
Subscription opened on 11 June, 2001Subscription Closed on 14 June, 2001Commercial production Early 1997Nature of Business Manufacturing and marketing
of cosmetics and toiletries. Number of Sales Depots 06Number of Distributors 130Number of distributors in Dhaka 11Manpower 296Number of shares 16,000,000
The following are the major competitors of Keya cosmetics limited.
1. Lever Brothers Bangladesh Limited.
2. Kohinoor Chemicals Industries Limited.
3. Aromatic Cosmetics Bangladesh Limited.
4. Square Toiletries Limited. 5. Advanced Chemicals Industries
Limited. 6. Lily Cosmetics Limited.
Page -03
Product list of Keya Cosmetics Limited.
Name of the Product Pack size M.R.P Keya petroleum Jelly 15 ml 9.00Keya petroleum Jelly 50 ml 18.00Keya Lip-Gel (Purple) 10 gm 15.00Keya Lip-Gel (Red) 10 gm 15.00Keya Talcum Powder 100 gm 32.00Keya Talcum Powder 50 gm 22.00Keya Coconut Oil 400 gm 75.00Keya Coconut Oil 200 gm 44.00Keya Good morning tooth pasteKeya Good morning tooth paste (gel) 70 gm 32.00Keya shaving Cream 50 gm 30.00Keya Jasmine Beauty Soap 90 gm 14.00Keya Fairness Beauty Soap 90 gm 14.00Keya Herbal Beauty Soap 90 gm 14.00Keya Skincare Beauty Soap 90 gm 14.00Keya super Lemon Soap 90 gm 14.00Keya Super Lemon Soap 125 gm 16.00Keya Super Lemon Soap 50 gm 7.00Keya super Beauty Soap (Pink) 90 gm 14.00Keya super Beauty Soap (Pink) 125 gm 16.00Keya super Beauty Soap (Pink) 50 gm 7.00Keya super Beauty Soap (Green) 90 gm 14.00Keya super Beauty Soap (Green) 125 gm 16.00Keya super Beauty Soap (Green) 50 gm 7.00Keya super Beauty Soap (Purple) 90 gm 14.00Keya super Beauty Soap (Purple) 125 gm 16.00Keya super Beauty Soap (Purple) 50 gm 7.00Keya super Beauty Soap (White) 90 gm 14.00Keya super Beauty Soap (White) 125 gm 16.00Keya super Beauty Soap (White) 50 gm 7.00Keya Mou-Mini Soap 40 gm 6.00Keya Glycerin Laundry Soap (Yellow) 140 gm 9.00Keya Glycerin Laundry Soap (Green) 140 gm 9.00Keya super Excel 500 gm 75.00Keya Super Jet 450 gm 36.00Keya Super Jet 225 gm 19.00Keya Super Jet 110 gm 10.50Keya Lemon Detergent 1000 gm 36.00Keya Lemon Detergent 500 gm 19.00Keya Lemon Detergent 200 gm 8.00
Page -04
Objective of the study:
To furnish a brief picture of Keya Cosmetics Limited.
To Know about its present & future policies.
To identify its Value chain & Core competences.
To know which class of customers mostly uses it.
To identify the market share of Keya Super Beauty Soap.
To know the distributors, wholesalers, traders, retailers and
Customers opinion about the price, package and quality of the
Soap.
To know the satisfactory level of the Customers.
Page -05
METHODOLOGY:
The entire report is divided into three parts. As-
Part A- Comparative Market Analysis
Part B- Customer Attitude towards Keya Beauty Soap Part C- Strategy Management practices by KCL.
For completing “part-A” I have done a survey on distributors, wholesalers, traders, retailers, and various shopping malls and chain stores. The questionnaire was about the highest, second highest, third highest and fourth highest selling soap’s name, about the quality, current advertisement, packaging and promotion of keya Beauty Soap.
For completing “Part-B” I have also done a survey on the ultimate user of keya super beauty soap and it was about how long they use it? Why they switch of this brand? What kinds of promotion they want? What is their opinion about the quality and price of the soap etc? Both for “Part-A” and” Part-B” I select the random sampling method for collecting data, which is a systematic way to gather information from a large number of populations. Both for “Part-A” and “Part-B” the total samples are hundred in numbers. The collection of data is large and it takes a large span of time.
For “Part-C” I collected information from the executives of keya cosmetics limited. I was dependent upon them basically for the Strategy Crafting and executing related information and for the overview of the company. I was also dependent upon the annual report published by the Keya cosmetics limited. Oral Interview was used as the data-collection instrument in this section.
After finishing the survey successfully I design a table for finding out various relations with one-question elements to another question element. Then I articulate the result and discuss it according to the questionnaire. I have also added some graph and table. Lastly, I give some recommendation for different problems. Which claim the customers? I don’t fell shy to articulate that I am not so much expert to give appropriate recomMendation but I have tried the best to complete this deed.
Page -06
Limitations of the study: A wholehearted be applied to conduct the research work and to bring a reliable and fruitful result from which a sound knowledge can gathered.
In spite of giving the wholehearted effort, there may exist some limitations, which will act as barriers to conduct the research. The limitations of the research are-
1. The area of research is vast. 2. It is difficult to give a concrete result or opinion based on a vast area
within the short time. 3. Necessary data collection becomes hard. 4. It is difficult to give a comprehensive view without sufficient written
documents.
Page -07
PART-ACOMPARATIVE MARKET ANALYSIS
Page -08
MARKET SHARE OF DIFFERENT SOAP
On the basis of data that is provided by the distributors, wholesalers, Traders, Retailers of Dhaka-A, and Dhaka-B Jone the market share of different Soap is measured.
Frequency of selling the different soap
Name of the Soap
Selling 1st
HighestSelling 2nd
HighestSelling 3rd
HighestSelling 4th
HighestLux 81 17 02 00
Keya 08 16 27 13Tibet 05 14 18 30
Camelia 00 09 07 22Meril 00 08 11 14Lily 00 07 02 13
Aromatics 00 07 02 08Others 06 22 31 00
MARKET SHARE OF LUX:
Grade Point:First Highest = 04Second Highest = 03Third Highest = 02Fourth Highest = 01
Total Point = 10
Page -09
Total frequency pointPercentage= 10
100
Grade Number of
frequency
point Frequency.
Point
Percentage
1st Highest 81 04 324
2nd Highest 17 03 51
3rd Highest 02 02 04 = 37.9%
4th Highest 00 01
Total 379
Grade Number of
frequency
point Frequency.
Point
Percentage
1st Highest 08 04 32
2nd Highest 16 03 48
3rd Highest 27 02 54 = 14.7%
4th Highest 13 01 13
Total 147
Page -10
MARKET SHARE OF TIBET:
Grade Number of frequency
Point Frequency. Point
Percentage
1st Highest
05 04 20
2nd
Highest 14 03 42
3rd Highest
18 02 36 =12.8%
4th
Highest 30 01 30
Total 128
MARKET SHARE OF CAMELIA:
Grade Number of frequency
Point Frequency. Point
Percentage
1st
Highest 00 04 00
2nd
Highest 09 03 27
3rd
Highest 07 02 14 = 6.3%
4th
Highest 22 01 22
Total 63
Page -11
MARKET SHARE OF MERIL:
Grade Number of frequency
point Frequency. Point
Percentage
1st Highest
00 04 00
2nd
Highest 08 03 24
3rd
Highest 11 02 22 =6.0%
4th
Highest 14 01 14
Total 60
MARKET SHARE OF LILY:
Grade Number of frequency
Point Frequency. Point
Percentage
1st
Highest 00 04 00
2nd Highest
07 03 21
3rd
Highest 02 02 04 =3.8%
4th
Highest 13 01 13
Total 38
Page -12
MARKET SHARE OF AROMATICS:
Grade Number of frequency
point Frequency. Point
Percentage
1st
Highest 00 04 00
2nd Highest
07 03 21
3rd Highest
02 02 04 = 3.3%
4t
h Highest 08 01 08
Total 33
MARKET SHARE OF OTHERS SOAP:
Grade Number of frequency
point Frequency. Point
Percentage
1st Highest
06 04 24
2nd Highest
22 03 66
3rd Highest
31 02 62 = 15.2%
4th Highest
00 01 00
Total 152
Page -13
PART-BCUSTOMER ATTITUDES TOWARDS KEYA BEAUTY SOAP
Page -15
LITERATURE REVIEW:
Customer perception and expectation of product quality is increasingly used to forecast company profitability and prospects for improved market share. Although many others quality focused initiatives have often failed enhance company performance and customer perceived service.
Improvements have been shown empirically to improve profitability. The shift from and industrial to a customer value paradigm places product quality at the center of company efforts to improved profitability. As virtually all organization compete with one another to some degree on a basis of it’s product quality, and as the Bangladesh economy has become a predominantly product based and service economy so product quality then becomes significantly important to achieve a genuine and sustainable competitive advantage. Manufacturing companies are compelled by their nature to provide excellent product in order to prosper in increasing competitive domestic and global market places.
Meeting rising customer expectations has proved to be one of the most difficult challenges to the manufacturer. Quality is found to measure most articulate through the eyes of the customer and it is not found to improve unless it is regularly measured. Customer are therefore never mistaken when they say that quality is bad because quality is perceived it so, it necessarily so. Companies that actively search for and incorporate the best service methods and process to improve the performance, regardless the sources and ultimately the perceptions of their customers are found to excel in relation to their competitors. In practice companies that exceed customers without impairing profit margins have frequently been found to develop a solid foundation of customer loyalty. Recognition of customers, perception and expectations to improve performance is one of the vital ingredients to achieve the company goal in local and foreign market.
Page -16
Cross interrelation between the age distribution and the frequency of using the keya soap-
Age This is the 1st time
Less than 6 months 6 to 9 months More than 1 Year
Total
15 1 1 2 0416 1 2 0317 1 1 2 0418 1 0119 1 0120 3 5 0821 1 0122 2 022324 1 0125 1 2 0326 1 012728 1 1 022930 1 6 0731 1 1 0232 2 4 0633 1 0134 2 1 0335 2 3 053637 1 3 0438 2 023940 2 3 3 084142 3 2 054344 2 0245 2 1 1 4 0846 1 014748 2 024950 3 03Above 50
3 2 5 10
Total 9 12 22 57 100
Page -21
11. About current promotion of the keya soap-
82% respondents are satisfied by current promotion
06% respondents are not satisfied by current promotion
12% respondents have no comment about current promotion.
12. What types of promotion respondents want-
Types of promotion Frequency Percentage Discounts 27 27%Free goods 54 54%Free sample 19 19%Total 100 100%
Table-8: About promotion
From the above table it is observed that the highest numbers of respondents 54% want free goods which indicate that the on going promotion program is appraisable.
13. Why the respondents buy more-
6% respondents said they buy more if the price is reduced;
81% respondents said they buy more if bigger pack size is offered by current price.
13% respondents said they buy more if extra goods is offered with the product.
Page -23