Report.doc Ert

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1.1Origin of the Report

This report is originated as the graduation requirement of BBA program of Northern

University, Bangladesh. The topic was assigned by Mr. Fikret CICEK, Senior Vice

President (Sales & Marketing), Everest Rug Production Ltd., the external supervisor of

internship program and approved by my internal supervisorMd. Monirul Islam, Lecturer in

marketing, Department of Business Administration Northern University Bangladesh. My

survey was conducted on effective sales & marketing strategy of Everest Rug Production

Ltd and also on various Manufacturer and wholesalers of Rug & Floor covering market.

1.2Objective of the study

The report has been done to fulfill several objectives that are depicted below:

To gather technical and competitive information about Sole distributors of Rug &

Floor covering markets in the world.

Bile companies in our country.

To know the internal workflow of this company

To know the product line & product range of this company

To know the sales procedures of this company

To work with sales executive and gather practical experiences for further career

development.

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1.3Methodology

Before going into an in-depth research, a conceptual structure was visualized under which the

whole study was conducted. Hence the research is a descriptive type of research. Research

methodology for that matter, is the combination of tools techniques and approaches through

which a scientifically designed research is carried out. No research is complete unless a

correct methodology is followed. Any inquiry or research will definitely probe to be negative

if it is not done along certain methodology.

a) For the procedure of different marketing activities, I had observed the operations and

worked with the officers at the same time. I had interviewed the Everest Rug Production Ltd.

officially for getting more information.

b) For the analysis part, data have been collected from different statements and the documents

of the company also collected by the surveying market of Carpet manufacturing industry.

1.3.1Data collection Process

Primary data collection through depth interview

Primary data collection through Questionnaire survey

Secondary data collection through text theories, cases, brochure and internet browse

1.3.2Data Analysis Process

Data analysis by using Table & chart

1.4 Sources of data

The report is based on primary and secondary sources of information. Interviewing the

managers and officers of the company, employees of its competitors & customers has

provided the primary sources of information. Further more the secondary sources of

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information are the different published documents, Market survey, journals, official files,

printed forms, documents kept in the company.

1.5 Limitation of StudyAt the time of my research work I faced several problems:

Time: Time is an important issue in report writing. As I have been given a specific deadline

for submission I could not perform all the researches and visit of Carpet manufacturing

industry. And also its a fact that Internship session is really squeezed and contracted.

Unwillingness to cooperate: There is always a chance that survey like this would not meeta cordial invitation of all the interviewees.

Secrecy of information:Everest Rug Production Limited and other dealers/retailers wanted

to keep some information secret according to their corporate law. Thus it has not been

possible to write about those factors even if I wanted to.

Lack of experience:A comprehensive result of practice of distribution marketing could not

be found as I had some pivotal limitations like inexperience. I am aware that no survey has

been done on Carpet distribution system in Bangladesh. So I could not take a glance and learn

the factors I should be cautious about, which barriers to expect and did not have any forecasts

that could help a lot preparing this report

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2.1 Introduction of the Organization

Everest Rug Production Limited is a limited company. I choose this organization because I am

interested about the Carpet manufacturing industry so I led myself to complete my internship

with Everest Rug Production Ltd I would say, it is really a very good organization for

attachment, as there is ample of opportunities to learn with in hand experience.

2.2 Historical Background of the organization

Everest Rug Production Limited established in 1998 this is a 100% foreign investment

company in Bangladesh. Their Raw-materials to import from abroad (Woolen yarn, Silk yarn

& Cotton yarn) There are 700 workers in this industry there product name is carpet & Flore

covering this product are 100% manually, there is on interesting matter is 100% woman

workers. This Company is 100% Export oriented company. There all productive goods are

sold to abort, Canada, USA, Spain & Turkey. This company is the sister concise of Hadeks

Hali Deari Tekstil Des Tic A.S. They have another three companies in the world. They have

260 show rooms in abroad

With approximately Eleven years of operating experience, Everest Rug Production Limited

has developed a competent sales, engineering and management team to efficiently manage the

affair of the company. Coupled with modern showrooms, an exclusive PDI workshop for

examining new carpet before delivery, trained technicians and 100% customer satisfaction.

Everest Rug Production Limited has carved a niche in the field of Carpet sales and is Export

to the several foreign countries. Today Everest Rug Production is rated as one of the best

Carpet distributor in Asia. Everest Rug Production is selling Carpet of Turkey origin as of

date. Currently Carpet is the market leader by providing better quality, competitive pricing.

The reasons behind the phenomenal growth of Everest Rug Production Limited and thegrowth in the market share of Carpet as a brand in Bangladesh over the last four years can be

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attributed to a number of factors. Firstly, Everest Rug Production Limited does not market any

products from carpet that have not been manufactured in Bangladesh itself.

Various innovations in sales techniques including finance assistance have helped to boost the

sales of Rug Production carpets. Finally, the product mix of Rug Production offered in

Bangladesh is more diversified than any other manufacturers currently selling in the country.

2.3 EVEREST RUG PRODUCTION LIMITED

2.3.1 Offered products & services

Everest Rug Production Limited offer brand new carpets.

Sale best quality products as much as possible.

Provide 20 years guarantee.

2.3.2 Value added services

Solve the customers problem timely.

Provide consulting services.

Always keep contact with customers.

2.3.3 Competitors of EVEREST RUG PRODUCTION LIMITED

Top Competitor

IMA RUGS LIMITED.

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2.4 Company profile

EVERESTRUG PRODUCTIONLIMITED

Company Name: Everest Rug Production Ltd.

Address: 20/C Navana Tower

45, Gulshan Avenue

Gulshan-1, Dhaka-1212.,

Bangladesh.

Auditors: M. N. Islam & Company

Chartered Accountants

123/4 Tejkunipara, Tejgaon,

Dhaka-1212.

Bankers of the Group: Southeast Bank Limited.

Standard Chattered Bank Limited.

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2.5 Product line-up

2.6 The Vision & Mission of Everest Rug Production Ltd.

Vision

To become the preferred choice the design of carpet buyers across all segment in the world.

Mission

To be uncompromising in the quality of products and services provided to its valued clientele

while increasing the companys market share in Bangladesh.

2.7 Culture

Everest Rug Production Limited is driven by dynamic, active, flexible culture radically

opposed to fixed bureaucratic management structures, allowing it to swiftly cut through any

barriers that stand in the way of its growth.

Everest Rug Production Limited fosters creativity and entrepreneurship by creating a work

environment where ideas coming from any member of the organization are encouraged, no

matter how small.

If people were to describe Everest Rug Production Limited as a person theyd use words

like innovation, self-motivated, ambitious and initiative-taker.

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Carpet Floor covering

EVEREST RUG PRODUCTION LIMITED


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2.8 The management philosophy or corporate culture

Team work

It is sales based organization so teamwork can bring great success. Activities are like

Multi product offerings

Personalized service

Team is responsible for full delivery

Each team has its own cycle

Developing people

It includes:

Opportunities for students

Chances for fresh graduate

Promotion from within

People are allowed to do what is best for the company, they encouraged being

entrepreneurial and taking risk within a big rules and regulations that expected to follow.

Everest Rug Production Limited also believes that if we dont taker of our customer, some

body else will

2.9 The Departments name of Everest Rug Production Limited.

Sales Department

Accounts Department

Administration

Brand & marketing Department

Training Department

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2.10 Branches of Everest Rug Production Limited

Everest Rug Production Limited, Bangladesh.

Modern Rugs Limited, Srilanka

2.11 Function of the Department

2.11.1Sales Department

This department is divided into three sections like

Private & corporate

Government & tender

Defense

There are some sales team consists of sale remembers in the sales department.

They always try to full fill the target of sales.

2.11.2Accounts Department

All Payable and receivable must approve by the head of the accounted. Company makes an

agreement with the Buyer and in that agreement all things about credit facility, transaction

system of chargeable amount determined. Department head and all this controlled by account

manager must approve so all type transaction agreement.

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2.11.3Design & marketing Department

This department regulated under the supervision of design manager.

Activities are like

Increase the Design image

Overcome the Design parity.

Place the Design name in the right position.

Make easy to recognize it

Some promotional activities like

Advertising: it may electronic media add, Printing media add, which country there doing

marketing.

Sales promotion

Public relations

Personal selling

Direct marketing

2.11.4Training Department

There dose exist a complete training program for Everest Rug Production Limited employee.

If any Department head thinks that the particular employee needs training, then he sent that

employee for training. Besides this when company offer new product then to give ideas to the

sales member it is organized.

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Believing its people are its most valuable asset, Everest Rug Production Limited invests in

building knowledge workers rather than employees. Everest Rug Production Limited train and

empowers its people and prepare them to act as creative solution provider, as entrepreneurs in

their own right. Upon joining the Everest Rug Production Limited team, employees undergo

extensive orientations that familiarize them with the companys business and corporate culture

before they proceed to training in their own department.

Throughout the courser of your employment you will receive a number of internal and

external training courses to polish existing skills and gain new ones. The request for such

training is either initiated by Everest Rug Production Limited or by employees themselves.

2.11.5 Administration

All administrative actives of Everest rug production Limited supervised by the head of the

administration. The administration of the company takes care about all kind of administrative

operation and activities with efficiency. There is an administrative head and some other staffs

to maintain the administrative works.

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2.12 Organization structure of Everest Rug Production limited

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Chairman

Managing Director

Director

Executive vice president

Senior vice president

Vice president

Sales Account Design Commercial

Assistant vice president

Private & Corporate, Sales Tender & Govt. Sales Account & Finance

Senior Executive

Private & Corporate, Sales Tender & Govt. Sales Defense, Sales Commercial


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3.1The Internship Position and Duties

3.1.1: The working area:

My department of internship program is under sales department. So I am fully involved in

sales department. My position was as a sales executive. Every day I have to go office at 9:00

am like all other employees and stay up to 5:30pm. I was attached with Private and corporate

sales of this company. So, the internal workflow of private and corporate sales are describing

as below:

3.2 Work in the Organization:

3.2.1 Incase of individual Sales:

Greet the customer cordially and try to come across the requirement of the customer based

on his emphasize on

Price

Options

Luxury/comfort

o Determine the appropriate Rug for the customer from the product line up:

Entry level, Luxury level, Medium Size Luxury

o Familiarization of the preferred product through catalog/brochure and by physical

demonstration.

o While physical demonstration

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Options

Product Performance

Guaranty

After Sales Service etc. are described.

o If agreed to the price placed by the buyer, collect a formal work order with advance stating

all facts.

o In case of bank (or other types of financial institutions) financing, a quotation is given to

the institution as per discussion and the institution stating all facts provides a formal work

order.

o Registration of the Rug is completed. They dont want to pay any kinds of tax to the

government.

o Physical delivery of the Rug is arranged.

o Submission of performance guarantee and to sign contact if needed.

o Signed the delivery Challan.

3.3 Customer Create:

I have learned how to create a customer and the process like that: This is the first step of a

sales person. At first Sales person gather information about the prospect customer. Then sales

person give him an offer letter which contains all business needed condition and rules and

regulations.

Before giving him an offer letter the rate and all other factors are discussed with customer.

That offer letter contains Different features of the carpet.

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3.4 Customer follow-up:

Sales man always have to follow up the existing customer, always have to take care customer,

because Everest Rug Production Limited believe If we dont Take Care of Our Customer,

Somebody Else Will

I have visited many customers with other sales persons and which I have seen that is Follow-

up means Marking Good Relationship with Customer and exist that good relation with

customer so that he will not diversify to other competitor.

Everest Rug Production Limited fined out the problems that their customers are facing

through the Internet.

I have seen that sales person made as like good relationship with the customer that through the

customer is facing any problem but customer is not going to or diversify to other competitor

but telling about the problem to sales person so that sales person solved the problem. So

follow-up means building the relationship with customer.

3.5 Problem solving:

Some times customer faces various kinds of problem with carpet. Everest Rug Production

Limited has own Service center. Different types of services are provided from the service

center. I have learned how to advise when customer comes with problem.

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3.6 Learning Point:

From Everest Rug Production Limited I have learned many things about official work,

behavior and how to deal with customer. I have learned how to solve a customers problem.

Suppose a customer are facing a problem or wants to know his products present situation then

what I have to do that is, I have to inform it to our customer care division and give

information about product to customer as soon as possible. And I also learn some sales related

rules and techniques and how to make sales. I learn that a sales person always have to be

polite and sincere.

I also learned how to offer to a new client and create new client. This process like this: First a

sales person targets a new client and goes to that person and get information about that target

customer.

This called prospect customer and this information called the prospect information. Sales

person after getting this information make decision about the offer, that means what price or

discount sales will offer to that customer and after deciding sales person take permission from

sales Manager and give offer to that customer.

3.6.1Sales call:

I have learned how to make a customer.

3.6.2Attend show room customer:

I have learned how attend show room customer. Since Everest Rug Production Limited has

own sales point so, different customer come to show room for purchasing carpet. A sales

person should talk with the customer smartly and give information of the product that the

customer will be convinced. It is very important to present him properly.

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3.7 Some things those I have learned from my Internship program:

How to behave in an official environment.

Proper use of time and go with time to time.

To take responsibility.

Banking activities.

Learned value, norms, attitude, and culture, of the Organization.

How to face critical situation.

How to behave with the customer.

How to solve customers problem.

Presentations of own self.

Vast knowledge about different Rug.

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4.1 marketing strategy and its evaluation

Marketing Strategy:

Marketing involves satisfying consumers needs and wants. The task of any business is to

deliver customer value at a profit. In a hyper competitive econo0my with increasingly rational

buyers faced with abundant choices, a company can win only by fine-tuning the value deliveryprocess and choosing, providing, and communicating superior value.

Everest Rug production Ltd always tries to satisfy customers according to there needs and

wants. Now the value delivery process of Everest Rug production Ltd is as follows-

4.2 The value delivery process:

The traditional view of marketing is that the firm makes something and then sells it

(According to figure). In this view, marketing takes place in the second half of the process.

The Everest Rug production Ltd Company knows what to make and the market will buy

enough units to produce profits. Companies that subscribe to this view have then best chance

of succeeding economies marked by goods shortages where consumers are not fussy about

quality, features, or style.

Value creation and delivery sequence:

Choose the value Provide the value Communicate the

valueCustomer

segmentation

Market

selection

/

Value

Product

development

Service

development

Pricing

Sourcing

Making

Distributing

Servicing

Salesforce

Sales

promotion

Strategic marketing Tactical marketing

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As the figure shows the value delivery process begins before there is a product and continues

while it is being developed and after it becomes available. The Everest Rug production Ltd

has further refined this view with the following concepts:

Zero customer feedback time: The Everest Rug production Ltd provides zero

Customer feedback time continuously after purchase to learn how to improve the

product and its marketing.

Zero product improvement time: The Everest Rug production Ltd evaluate all

improvement ideas and introduce the most valued and feasible improvements ads soon

as possible

Zero purchasing time:The Everest Rug production Ltd receives the required parts

and supplies continuously through just-in-time arrangements with suppliers. By

lowering its inventories, the company can reduce its cost.

Zero setup time:The Everest Rug production Ltd is able to manufacture any of its

products as soon as they are ordered, without facing high setup time or cost.

Zero defects:The product of Everest Rug production Ltd is of high quality and free

of flaws.

4.3 The value chain:

The Everest Rug production Ltd examines its cost and performance in each value creating

activity and to look for ways to improve it. The Everest Rug production Ltd estimates its

competitors cost and performance as benchmarks against which to compeer its own cost and

performance.

The Everest Rug production Ltd Companys success depends not only on how well each

department performs its work, but also on how well the various departmental activities are

Coordinated to conduct core business process. This core business process include:

The market sensing process: All the activities involved in gathering market

intelligence, disseminating it within the organization, and acting on the information.

The new offering realization process: All the activities involved in researching,

developing, and launching new high-quality offering quickly and within budget.

The customer acquisition process: All the activities involved in defining target markets

and prospecting for new customers.

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The customer relationship management process: All the activities involved in building

deeper understanding, relationships, and offerings to individual customers.

The fulfillment management process: All the activities involved in receiving and

approving orders, shipping the goods on time and collecting payment.

The Everest Rug production Ltd also follows some strategies, which are followed by

different companies. This are-

4.4 Making Marketing plan:

The present document continuous the basic principles of crises procedures as included in

the Everest Rug Production Limited employers guide and some crises communication andmedia relations guidelines aimed at helping Everest Rug Production Limited employers

unexpected crises.

The guideline explains the public relation department procedures for handling media and

internal contacts during. Fooling sequential had to do.

4.5 Brand positioning: Advertisement in the news paper

Advertisement in the media and news

Advertisement in to out door signs

Direct Marketing-distribution of stickers etc.

4.6 To build Revenue:

Projects and programs

Special discounts offer

Distribution of gives away to customer/linkage industry customer/reception

4.7 To make public relation:

Press relies

Sponsoring national events

Display signboard in national events

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Sponsoring different publication for different charitable organization

4.8 Marketing intelligence:

Customer satisfaction survey

Customer comments

Market information through different publication on macro micro label industry.

4.9 Advertisement

This is prepared by a business to disseminate information about product or service to be sold.

The message is controlled by the business space is paid for. A relatively new phenomenon is a

cross breed of news story and advertisement. Businesses buys space in a supplement or in the

general publications in return, articles are prepare that highlight a product or service or

industry. Or an advertisement is designed to look like articles but is usually labeled as an

advertisement to alert readers that it is espousing a certain issue or product and it is not

journalistically objective. The message are controlled and published.

4.10 Delivering message:

A companys message can be delivered to the media in a verity way there are some common:

Phone calls

Interviews

Internal luncheon/briefing

Press release or press kit

Press conference

Latter to editor

Each of these methods is appropriate at different time and for different purpose.

4.11 The workflow of the Marketing Department is following:

Developing marketing plans and strategies to maximize Everest Rug Production

Limited brand awareness and visibilities in foreign countries.

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Take care of Everest Rug Production Limited brand promotional activities.

Carry out market research, customer satisfaction survey.

Collect and review information on market, top competitors.

Develop and distribute marketing handout, promotional items.

Proper budget and arrange expenses.

Complete product and report when required.

4.12 Marketing objectives:

To increase sale by specific within one year.

To offer the highest customer service in the industry.

Analysis of SOWT for service marketing.

Developing specific marketing strategies.

Developing implementation program from marketing strategy.

Devising control of marketing plan.

Analysis of the internal source and capabilities.

Analysis of the capabilities of external forces and their effect on the services

marketing.

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4.13 The four Ps of the marketing mix

Target

Customers

Intended

Positioning

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Product

Variety

Quality

Design

Features

Brand name

PackagingServices

Price

List price

Discounts

Allowances

Payment period

Credit terms

Promotion

Advertisement

Personal selling

Sales promotion

Public relations

Place

Channels

Coverage

Assortments

LocationsTransportation

Logistic


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From the buyers viewpoint, in this age of customer relationships, the four Ps might be better

describe as the four Cs

Customer solution

Customer cost

Convenience

Communication

Customer solution: The Everest Rug production Ltd solute customers problems

instantly and take care of the problems with responsibilities. When any customer complainsabout any product the company within a short time tries to solve the problem.

Customer cost: The Everest Rug production Ltd values the customer cost. The company

determines their goods with such price that fulfill the values of the customers.

Convenience: The Everest Rug production Ltd always makes products, which are

convenient for their customers.

Communication: The Everest Rug production Ltd looks after the availability of

transportation for the customers.

4.14 SWOT Analysis ofThe Everest Rug production Ltd:

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The SWOT analysis comprises of the analysis of the organizations internal strength and

weakness and the external opportunities and threats. Such an analysis gives an organization an

insight of what they do in future and how they can compete with their existing competitors.

This tool is very important to identify the current position of the organization relative to

others, who are involved in the same kind of business and also widely used in the strategic

analysis of the organization.

The SWOT analysis stands for:

S= Strengths

W= Weaknesses

O= Opportunities

T= Threats

4.14.1 InternalStrengths:

The strong management team and diversified workforce: The Everest Rug

production Ltd has a strong management team and diversified workforce. This is one of the

biggest advantages of The Everest Rug production Ltd.

Environmental facilities available: The Everest Rug production Ltd has a great

environmental facility. As Bangladesh is jute producing country the company gets a great

advantage of low cost raw materials and for over population the labor cost is also very low.

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Ability to make decision quickly: As the company has a strong management team it has

ability to make decision quickly. When any problem occurs the management team very

rapidly can solve it through strong management skill.

Globally Recognized Brand: The Everest Rug production Ltd is one of the biggest

organizations in Bangladesh. It has created a great image into peoples mind by producing high

quality of products. Whenever the buyer see that this is a product of The Everest Rug

production Ltd then without further inquiry they buy it. Because it has created a reputation

about the quality of its products to the customers mind. This benefit is directly going to the

Everest Rug production Ltd

100% export oriented company: The Everest Rug production Ltd is a 100% export

oriented company. This is possible sonly for its high quality of jute yarn is produced by it. It

has already established a good reputation to the foreign markets that its produced goods are

international quality standards. Whatever amounts it sales, it is done in advance.

Enough fixed assets: Another comparative advantage ofThe Everest Rug production Ltd

Has enough fixed assets related to its existing competitors. The company currently owns lots

of fixed assets, such as lands, buldings, vehicles and other properties.

Optimum level of production:The Everest Rug production Ltd is able to produce jute

goods of its optimum level of production capacity. 24 hours the mills remain in production.

So, it is in the highest level of production capacity obtained by The Everest Rug production

Ltd.

4.14.2 Internal Weaknesses:

Lack of employees performance monitoring system: The Everest Rug production

Ltd has poor monitoring system whether employees are performing their jobs properly or

not. They may spend their office time in unproductive purposes. Employees are coming to the

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office but the company didnt know what activit6ies they are doing in office. Another thing is

lack of accountability of its employees to management.

Lack of strategy for developing new jute products: The Everest Rug production Ltd

is not trying to develop new jute products. It is producing only its existing product, which is

jute carpet. Since there is a huge demand for different type of jute made product in the world

market. So, The Everest Rug production Ltd should develop different types of jute products.

Loss of potential coverage:As The Everest Rug production Ltd is producing optimum

level of output but the market is demanding more than that level of output. So, The Everest

Rug production Ltd is losing its potential markets and also unable to coverage the most. To

meet up this market demand The Everest Rug production Ltd should increase the level of

output by expanding production capacity and also to setup modern machineries.

Lack of networking and communication system: Lack of networking and

communication system is one of the major weaknesses of The Everest Rug production Ltd.

Strong networking and communication system is a prerequisite for performing jobs efficiently

and effectively. At present, a company has to establish information technology in order to

compete with existing competitors. Because now information is a big strength, which provides

currently updated latest business information to the company bringing from the business

world. In this case, The Everest Rug production Ltd is far behind from the IT. As a result, it

is losing lots of information which maybe helpful to the company.

Low extends of product line:The Everest Rug production Ltd has only produced one

types of product line such as carpet. Whereas other carpet industry is divided into various

lines of product.

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Lack of administrative structure:Lack of administrative structure is another weakness

for The Everest Rug production Ltd. Its administrative department is not highly established.

They need to modernize it. The Everest Rug production Ltd is a big organization in

Bangladesh but its administrative department is not able to do so many works effectively andefficiently. To fulfill this objective, The Everest Rug production Ltd needs to restructure of

its administrative department.

4.14.3 External Opportunities:

Developing new products: ERPL may develop new jute products to capture the world jute

marker. As Bangladesh has the worlds finest quality of jute fibers so ERPL can easily use

these opportunities.

Emerging new modern technology:In the modern world technology is advancing day by

day. ERPL has taken it as an opportunity. Now ERPL has there capability to use any emerging

new technology.

Establish carper-manufacturing plant:another opportunity for ERPL is to establish a

carpet manufacturing plant in Bangladesh. There is a huge demand for carper allover the

world. BJMC is the major carpet manufacturer in Bangladesh. But its carpet doesnt fulfill the

satisfactory level, because of quality like color, design, fabric, sewing and thread not up to the

standard as consumers want. BJMC maid carpet, from jute but its color is not good. Thats

why BJMCs produced carpet didnt get market till now. Except BJMC, there are few carpet

manufacturers who produce carpet, they have same problems as BJMC has. So it is a great

opportunity for ERPL to establish a carpet manufacturing plant by using modern carpet

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making technology, high quality raw materials, and also develop R & D department for carpet

plant.

Source of the best quality of raw jute: as Bangladesh has the finest quality of jute fibersso ERPL has an opportunity to use the best quality of raw jute for the production of highest

grade of jute yarn and twine which will be greater demand in international market. As a result

it can ultimately capture the market share oft jute yarn and twine.

Increase environmental consciousness:Day by day people are become more conscious

about environment. Now they are trying to avoid synthetics uses. As a result ERPL may use

this factor as an opportunity to produce pollution free products.

4.14.4 External threats:

Substitute products of jute: Substitute product of jute like polypropylene is the mainthreat for the jute industry. Because polypropylene looks nice, cheaper and more comfortable

than jute. It is also environmental friendly like jute. As a result, polypropylene taking the

market of jute and becoming more popular to the consumer day by day. Now days,

polypropylene are the largest selling substitute products of jute.

Trade union: Trade union is the second, largest threat for ERPL. New as well existing

entrepreneurs are discouraged to establish industry in our country for the devastating role of

trade union. Because it is a major obstacle for industrialization and sometimes it controls the

industry regulated by the trade union. It is deemed that the main activity of our trade union is

to do strike, block and also engaged in different destructive activities in the industry. So the4

luck of the industry depends on them.

Existing competitors: When large number of company performs their operation in a

specific industry then competition will be very high in that industry. And it is also very

difficult for newly established industry to compete with the existing competitors.

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Political instability: Political instability is another threat to the ERPL. The political teams

are biasing political leaders. Political leaders are very much sensitive against their opposition

parties activities and they have habit to declare strike. This activity damages our propertiesand all industries remain shutdown. As ERPL miss 100% export oriented organization, so

political activities are seriously affects its production and overall activities.

Changes in gove4rnment policy:Science government is doing business in jute sectors, so

any change in the government policy has its impact over the profitability return of the project.

Any government policy that may increase interest rates, Excise duties may affect carpet

industry. So before taking any desition at first ERPL has to consider that government is

involved in this sector.

4.15 Market segment strategy:

A market segment consists of a group of customers who share a similar set of needs and

wants. Market segment can be defined din many different ways. One way to carve up a market

is to identify preference segments. Three different patterns can emerge:

Homogeneous preference: A market where all the consumers have roughly the same

preference. The market shows no natural segments. We would predict that existing

brands would be similar and cluster around the middle of the scale in both sweetness

and creaminess.

Diffused preferences: All the other extreme consumer preference may be scattered

throughout the space, indicating that consumers vary greatly in their preference. The

first brand to enter the market is likely to position itself to appeal to the most people.

A second competitor could locate next to the first brand and fight for market share, or

it could locate in a corner to attract a customer group that was not satisfied with the

center brand. If several brands are in the market there likely to position themselves

throughout the space and show real difference to match difference in consumers

preference.

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Clustered preference: The market might reveal distinct preference clusters, calls

natural market segments.

Homogeneous preference

Creaminess

Sweetness

Diffused preference

Creaminess

Sweetness

Clustered preference

Creaminess

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Sweetness

4.15.1 Niche marketing: A niche is a more narrowly defined customer group seeking a

distinctive mix of benefits. Marketers usually identify niches by dividing a segment into sub

segments. An attractive niche is characterized as follows: The customers in the niche have a

distinct set of needs; they will pay a premium to the firm that based satisfies their needs; the

niche is not likely to attract other competitors; the nicer gains certain economies throughspecialization; and the niche has size, profit and growth potential whereas segments are farley

large and normally attract several competitors. Niches are fairly small and normally attract

only one or two.

4.15.2 Segmenting consumer markets

Two broad groups of variables are used to segment consumer markets. Some researchers try to

from segments by looking at descriptive characteristics: geographic, demographic and

psychographics. Then they examine whether this customer segments exhibit different needs or

product responses.

4.15.3 Geographic segmentation:Geographic segmentation cause for dividing the market

into different geographical units, such as- nations, states, regions, countries, cities or

neibourhoods. The company can operate in on or a few areas or operate in but pay attention to

local variations.

4.15.4 Demographic segmentation: In demographic segmentation, the market is divided

into groups on the basis of variables such as age family size, family life cycle, gender, income,

occupation, education, religion, race, generation, nationality and social class. There are several

reasons for the popularity of demographic variables to distinguish customer groups. One

reason is that consumer needs, wants, and usage rates and product and brand preference are

often associated with demographic variables. Another is that demographic variables are easier

to measure. Even when the target market is described in non-demographic terms (say, a

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personality type), the link back to demographic characteristics may be needed in order to

estimate the size of the market and the media that should be used to reach it efficiently.

4.15.5 Psycho graphic segmentation:Psychographics is the science of using psychologyand demographics to better understand consumers. In psycho graphic segmentation, buyers are

divided into differe4nt groups on the basis of Psychological/ personality trades, life style, or

values. People within the same demographic group can exhibit very different Psycho graphic

profiles.

4.15.6 Behavioral segmentation: In behavioral segmentation, buyers are divided into

groups on the basis of their knowledge of, attitude toward, use of, or response to a product.

Findings

On the basis of exporting business, Everest Rug production Ltd was established in Bangladeshto operate business activities with efficiency. It is not a new business system in Bangladesh.

Everest Rug production Ltd is operated according to Turkish mother factory where carpet is

produced with fine quality. In the modern world people are very much aware of environmental

healthiness. So the activities of the company are done reminding the welfare of the people and

simultaneously the environment. During the internship I have got the following findings of

Everest Rug production Ltd. Those are given bellow:

Strong total quality management

Strong financial strength.

Lack of promotional activities.

Lack of product diversification than competitors.

Lack of monitoring and controlling system.

Reward successful program implementation.

Adopt new design to its manufacturing process.

It produces 100% export oriented carpet.

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Everest Rug production Ltd produces high quality carpets.

It produces optimum level of production.

It has lack of employee performance monitoring system.

Low extent of product line.

Low monitoring capability.

Quality is of international level.

Conclusion

ERPL services for excellence in all endeavors. ERPL sets its goals to achieve customer

satisfaction and to deliver defect free products on time, which service second to none.

Implementation of this policy makes it essential that each person is committed to perform

exactly as required. It is ERPLs basic operating philosophy to concentrate on prevention

methods to make quality a way of life and perpetuate and attitude of Do it right the first

time. With this approach ERPL will continue to demonstrate to its customers that they are

reliable partner.

Analysis of production and exports problems and prospects of carpet is not so sufficient to

measure and express perfectly within this short time of my internship period. But it is a great

opportunity for me to get and use with the operational environment of ERPL. I have tried hard

and soul to incorporate the research report with necessary relevant information.

A number of reasons so far expounded for and against will keep the battle going between jute

and synthetic backing. One fact is very clear that synthetic backing is well established toprovide the total needs of primary backing for the tufted and needle punch carpets. The

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industry is primarily based on agriculture for its raw materials. Another biggest headache of

the industry and an important one has been the price of carpet backing and its changing

pattern necessitated by the factors already started plus the extra cost involved for meeting

maximum price of raw jute, export duty, export inspection fee etc.

On the marketing side, product specifications need to be reexamined and redesigned to take

account of new technology. Production methods and cost need to be reviewed and reduced. To

develop0 new products or alter existing specification demand access to end users their needs

can be recognized. To reduce production expense it is necessary to utilize modern production

methods. To reduce unit labor and energy costs, and to ensure profitable industry into the

future, ERPLshould procure efficient personnel.

During the course of my practical orientation I have tried to learn the strength of ERPL and

what could be the future threats for ERPL. And I have also tried to relate it with my

theoretical knowledge what I have gathered and going to acquire from various academic

courses.

Recommendation

Carpet Industry is fully export oriented agricultural based jute product producing industry.

The role of jute is very important for the economic development of Bangladesh. Although

carpet product export is decreasing relatively, it is deemed the third largest foreign exchange

sector in Bangladesh. For economic development of the country especially development of

rural peoples lifestyle is largely dependent on jute to keep the existence of jute and carpet

industry, government has to come to take the following steps immediately.

To flourish the issue of the jute yarn, I have identified that they have some vacuum in this

industry that need to be fulfill and lead us to find out several recommendation, which could be

effectively give a solution to boost up its existing performance. This recommendation is as

follows:

Determine the interest rate of current capital loan

Distribution assistance or subsidy.

Structuring carpet sector program.

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Diversify jute products

Ensure the use of carpet goods.

Omit pick hour rate of electricity

Enlarge market for carpet in a foreign country

Need for increasing using more domestic jute

Implementation

Implementation entails converting the recommendations into action and then into go for

results. Its a job for the whole management team of private carpet mills as well as

government of Bangladesh and for ERPL. It requires group work to work out the plan

effectively. While ERPLs head of the divitions, and key operating units are ultimately

responsible for seeing that new plan and product has been developed successfully. The

development process typically impacts every part of the organizational structure.

Implementation strategy is fundamentally an action oriented, activity developingcompetencies; capabilities, budgeting, policy making, motivating, culture building and

learning are key parts of the process.

Sizing up a firms resouces, strengths, and weekness and its external opportunities and

threats are commonly known as SWOT analysis that provides me a good overview of

whether ERPLs all departments are efficient enough to expand the market and clutch

huge market shaqre. Implementation or action plans should broadly considered the SWOT

analysis, which is grounded in the basic principle that strategy making efforts must aim at

producing a good fit betweem ERPLs production department and resource capability is

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external situation. Without implementing all these, the task of conceiving a strategy

becomes an uncertain proportion in deed. Following steps can be used to overcome the

problem:

Total quality management. (TQM)

Financial strength

Increase promotional activities

Product diversification from competitors.

Monitoring and controlling.

Reward successful program implementation

Adopt new design to its manufacturing process.

Bibliography

Reference Book:

. Cooper, Donald R. and Pamela S, Schindler (1998). Business Research

Methods, ed. Sixth Boston: MC Graw-Hill.

. Kotler, Philip. (1994). Marketing Management Analysis, ed 8th. New

Delhi: Prentice Hall of India Pvt. Ltd.

. Zikmund William G (2000). Business Research Methods, ed. Sixth.

Philadelphia: The Dryden press Harcourt College Publishers.

Internet:

Web address + Visiting date and time: http://www. koker.com

Visiting Date Visiting time

1 20-11-2008 9 am - 1 pm2 25-11-2008 2 pm 4 pm

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3 10-12-2008 11 am- 3 pm4 22-12-2008 10 am- 1 pm5 07-01-2009 9 am- 12 pm6 19-01-2009 2 pm 4 pm7 26-01-2009 11 am- 3 pm

8 06-02-2009 10 am- 1 pm

Other Reference:

1. Annual Report ofERPL

2. Special workforce of ERPL.

Documents

Report.doc Ert