“ABUL KHAIR STEEL” (AKS) is the one of the organization of “ABUL KHAIR GROUP”. It started its journey in 1993 at Feni primarily by purchasing the MEB’s ‘Tammanna Steel Mills’. Then it setup its factory at Madambibirhat in 1998. Since then it has been catering the needs of its customers very sincerely. All production facilities are built with state of art technology incorporating latest digital drives and automation process controls, automatic gauge controls and customized automatic elongation control to ensure length in meters per metric ton as per customer’s need.
At Abul Khair Steel, the aim is to ensure that the customer’s requirements are met and this means providing them with the materials that most closely match their specific needs and value for money. Product specification: Cold Rolled Steel Coils and Sheets Full Hard Quality, as per JIS G3141 SPCC1B and equivalent International Standards. The product is also available as per customer’s specification. Thickness Range:0. 11-0. 50 mm Width :750-1000 mm Coil Weight : 2.
0-9. 0 MT Coil I. D. : 508 mm Length of the Sheet:3048 mm max.
Hot Dip Galvanized Steel Coils & Sheets (plain & corrugated) as per JIS G3302 & equivalent International Standards. The product is also available as per customers’ specifications. Zinc Coating : 100 to 275 gms/sqm Base Metal : 0. 11-0. 50 mm Thickness GP Sheet Width : 750-1000 mm Length of GP or : 3048 mm max. GC Sheet Quality : Hard Quality Production Process: Mine Iron Slab H. R. Coil C. R. Coil GPI GCI In the factory AKS uses two methods of production:
Sheet to sheet Continuous galvanizing line Vision: “Our customers never are less than fully satisfied- that is our continuing commitment and we will be the quality leader in the industry.
” Mission statement: “Abul Khair Steel always cares and sincerely serves the needs of its customers and seeks to accomplish this in a manner that contributes to the development and growth of its stakeholders and to the goals of countries and communities in which it operates. ” Company Objectives: The company’s mission needs to be turned into detailed supporting objectives for each level of management.
Each manager should have objectives and be responsible for reaching them. Financial objectives: 1. To achieve 15% return on equity. 2. To achieve a return on asset (ROA) of 10% per year. 3. Earn an annual rate of return on investment (ROI) over the next five years of 12% after taxes. 4. Produce net profits 320 million Tk. in 2004-05. 5. Increase the inventory turnover rate by 15% within next 2005. Marketing Objectives: Generate sales by 15% or by 900 metric tonnes in the North Bengal within June 2005. Increase awareness at Rajshahi by 20% within June 2005.
Generate sales revenue of 320 million Tk. in 2004-2005 fiscal years. Modify the market by targeting the contractors and real estate businessman for encouraging the use of GCI in the construction and fencing thus the sales can be generated by 15% within 2005. Generate sales in the Middle East market by 10% in 2005. Competitive advantages: The key to wining and keeping customers is to understand their needs and buying process better competitors do and to deliver more value. To the extent, that a company can position itself as providing superior value to selected target markets its gains competitive advantage.
Abul Khair Steel is the leading company is GCI market with having the highest market share (35%) and gaining the highest net profit of 280million tk. in the last fiscal year (2009-2010), which is 80 million, more than its nearer competitors (PHP). This highest net profit indicates the highest sales and ROA& ROI of the AKS in the GCI industry. Abul Khair Steel has some competitive advantages over its competitors, which helps it to become the leading company in the industry. The competitive advantages are described below- Distribution channel:
The most important and sustainable competitive for AKS is its distribution channel. AKS has separate distribution channel and the excellent sales force of AKS operates it. The competitors of AKS follow indirect distribution, which incurred much cost, but AKS follow almost direct distribution system. The distribution system of AKS is— AKS Retail shop Customer The sales force of Abul Khair Steel goes to every retail shop of its coverage directly and takes the order of GCI from them.
The important thing is, through this direct selling, the sales force can estimate the demand clearly and understand the market so closely. Only for this, AKS has not to arrange any survey over the retailer to understand their behaviors towards the product. Brand Name: The brand name of the AKS is another sustainable competitive advantage. Because ABUL KHAIR GROUP is a trusted name in Bangladesh and they have the acceptability in the minds of the people. The success of the products helps AKS to create a favorable position in the minds of its target customers, which is not possessed by its any competitors.
Highest production capability: AKS has four CR COIL factories in Bangladesh where the production capacity of AKS is the highest in GCI industry and it is considered as the sustainable competitive advantages in the market over competitors. Acid regenerate plant: In the production of GCI, hydro-chloric acid is used which is very much harmful for the environment and the wastage which comes out after production process is so much poisonous. That’s why AKS has installed a acid-generate plant 2002 for reusing the acid in the production and to keep the environment polluted free.
This machine has reduced the cost of production so much because it regenerates the hydro-chloric acid again and again, where the competitors can’t use it. Target market: All companies first must define their target markets and then decide how they will position in these markets. Too many companies fail to define their target markets and positions clearly. They try to have “something for everybody” and end up satisfying no market value. In contrast, successful companies define their target markets well and position themselves strongly.
So to become a successful company, everyone has to target their customers very precisely; otherwise all attempts will go in vain. That’s why marketers always segment the market and then select the best segment which match with their resources and capabilities and then target that segment to achieve the goals. In case AKS, it has also a separate target market and that is described below on the basis some characteristics- Demographic segmentation Psychographic segmentation Behavioral segmentation Demographical Segmentation:
In demographic segmentation, the market is divided into groups on the basis of variable such as –gender, age, income, occupation, education, religion, social class. Demographic variables are the most popular bases for distinguishing customer groups. One reason is that consumers’ wants, preferences, usage rate are often associated with demographic variables. Another is that, demographic variables are easier to measure. Even the when the target market is described in non-demographic terms the link back to demographic characteristic is needed to estimate the size of the target market and the media that should be used to reach it efficiently.
The demographic segmentation of AKS is like that- Age: 35-60 Gender:Male Income:40,000- 2, 50,000 (Per Year) Occupation:Any occupation in village. Education: Uneducated and low educated (primary level) Social Class: Lower class (upper and middle) Psychographic segmentation: In psychographic segmentation, buyers are divided into two different groups on the basis of lifestyle or personality and values. People within the same demographic group can exhibit very different psychographic profiles. The psychographic segmentation of AKS is like that- Lifestyle:Ordinary, General
Personality:Prestigious Value:Who wants roof solution? 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. Many marketers believe that behavioral variables- occasions, benefits, user status, usage rate, loyalty status, buyer readiness stage and attitude- are the best starting points for constructing market segments. The behavioral segmentation of AKS is based on – benefits, user status, loyalty status. Base for benefits- a) Price b) Size c) Quality d) Durability.
Base for user status- a) Non-user b) Ex-user c) Potential user d) First time user Size of the market: The industry is a high capital-intensive business. Here both entry and exit barriers are high. That’s why the risk and return are also high. For this reason, only few want to enter this business who have the bulk amount of capital. There are so many steel companies in Bangladesh. But as our product only GCI, that’s why we have considered only GCI manufacturers. From this point of view, there are six companies in Bangladesh who produce GCI (Galvanized Corrugated Iron-sheet).
And those are- ABUL KHAIR STEEL PHP STEEL KY STEEL S. ALAM STEEL APOLLO STEEL R. M. STEEL KSRM STEEL Why do customers need the product: GCI (Galvanizing corrugated iron-sheet) is basically used in the purpose of roof solution. But now-a-days the use of GCI has increased and it is now used in the purpose of fencing, construction, covering, doors etc. But still the main use of GCI is in the roof of housing. That’s why the target customers are also the people who want the roof solution. It is true that the new use of GCI is a part of the sales, but the core product of GCI is roofing. Advantages: 1.
GCI is better than the bamboo or wood made roof. 2. It is a long lasting but not more than brick roof. 3. It is easily repairable and the cost is relatively low than the cost of brick and wood. Disadvantages: 1. It produces so much heat in the daytime, which is so intolerable and uncomfortable. 2. The Hydro choric acid, which is used in production, is harmful for the environment. Where do they buy the product: The most of GCI customers reside in the village area and they are both uneducated and low educated. These people use this product as their roof and it is the most special product for them.
The decision making process are very much longer in their case. They don’t buy the product frequently and they always attracted or motivated by the reference groups. That’s why the marketers of GCI always use a opinion leader as a member of reference group. The customers of this product from the retail shop of GCI and this retail shop are generally located in the Hat, market of village area. AKS distributes their product throughout the retail shops of Bangladesh to make the product available to the target customers. Moreover, the retailers also influence the customers also by telling his/her preferable brand’s benefits.
That’s why the purchase decision of this product is really complex. In fact, in Bangladesh most of the products’ successes depend on the retailers’ attitude towards it. If the retailers don’t want to take the product, the manufacturer has no way to survive. That’s why the AKS also dependent to the retailers for their sale. When do the customers buy the product: The target customers GCI are mostly lower class (upper and middle) people who have not enough money. The occupations of those people are- farmer, fishermen, milkman, daily laborer, etc. Bangladesh is agro-based country and more than 80% people live in the village.
And still most of the village occupations are centered with the agriculture. There are two seasons for producing crops in our country and the times are March-July and Aug- Nov. At this time, the village people especially farmers have not enough money in hand, because they invest all their money in the production. At this time, the other people have not enough money to buy GCI because of rainy season. Except the fishermen, no other occupation can generate enough money in this season. After getting the crops, farmers sell it and get the cash of their crops.
At this time, the people of other occupation also earn cash. So in total all people have money at that time and they also want to spend. For the above reason, the target customers of GCI also buy the product at the dry season (Nov- March) and the sales also rise in this season. That’s why this time can be called as peak season for GCI market. In these five months, the village people use to build houses and they buy as much as need. The sales graph of AKS’s are furnished below- The half portion( 50%) of the total sales are in the period of January- March and it starts to raise from October- December(25%).
The reason for the raise in sales in the cash in hand of the target customers and most of them use it as a roof of their house. That’s why they select the dry season to build their house. The ? sales are occurred in the May-September, just because of the lack of cash in hand. It’s true that some customers buy GCI in this period but they are a small portion of the total target market. Competitor’s profile: To prepare an effective marketing plan, a company must study its competitors, as well as its actual and potential customers. Companies need to identify ompetitor’s strategies, strengths, weakness and market share. The major competitors of AKS’s are – PHP Steel KY Steel. Apollo Steel. S. Alam Steel. But in the degree of competition, we have considered only PHP and KY for their advancing performance in various areas. And we have eliminated Apollo steel and S. Alam steel for their weak and current inefficient performance in the industry. PHP Steel: PHP is the major competitors of AKS. It has started its journey in 1999 from then they are providing the GCI to market. This company believes in quality and their production cost is also high for that.
This company has got a remarkable achievement from its journey by raising its market share fast. The current market share of this company is now 25%. The company believes that, the production procedure of its environment friendly (poribesh badhov). PHP belives in quality. They say quality never comes automatically, it comes after technology. PHP thinks that, they always remains first in the race of technology in its field. NOF (Non- oxidizing furnace) type of galvanizing is the world’s latest technology in galvanizing. In Bangladesh PHP is the pioneer to install a NOF type of continuous galvanizing of capacity 18. 0 metric ton per hour with a process speed of 160 mpm. Product range and specification: Thickness: 0. 13mm to 1. 00mm Width:600mm to 1050mm Zinc coating:80gms/m2 to 350gms/m2 Grade: Full hard soft as per IS277, BS2959, ASTM- A361/653, DIN59231, JISG-3302 Per day production:140mt. High and huge promotional budget. Environment friendly production process. (NOF) Skilled management. More customers caring. Weakenesses: Distribution channel system. Costly production process. (High) Pricing strategy. (Premium) Less number of CR Coil mills. Low production capacity in comparison to AKS. (150,000 metric ton).
Over promising advertising. KY Steel: KY Steel is a subsidiary of KDS Group. It is one of the major competitors of AKS. It started its journey in 2000 and from then it is providing the product (GCI) to its target market. This company believes in technology and it wants to become technology leader in the industry. It has setup a plant which is only European plant of its kind in the country, supplied by SMS DEMAG Germany, a world leader in this sector. The complex which is built on a 10 acre site, houses pickling line, 6 Hi CVC cold rolling mill, slitting and rewinding line with an annual capacity 250,000 mt.
Commissioned in 18 months under direct supervision and technical assistance of SMS DEMAG Germany. The mill is fully controlled through latest computer systems. The result is a continuous and efficient supply of flawless quality product unrivalled by any other in the industry, thus enabling them to be the most reliable supplier of GCI in the country. The current market share of this company is 19%. Product specification: Thickness:0. 10mm to 0. 60mm Width:762mm to 1050mm Coating thickness:120gms per sqm to 220gms per sqm Grade:Z12 to Z222, JIG G 3302, BE 2696 Per day production:70metric tones. Strengths:
Developed technology (production). Skilled and expert managers. Benchmarking. Weakness: Recruitment process of employees. Bureaucratic management. Low production capacity. Distribution channel system. No credit sale. Stable growth rate. Comparison and issue analysis: From the evaluating the strengths and weaknesses of the competitors with AKS, there are some differences are found and those are described below- Technology: In the area of technology, it is found that, KY is the technology leader because they use the German technology for their production and it is similar to the international standard.
This technology is followed by few manufacturers of the world. On the other hand, both PHP and AKS use the ordinary production process. Production capacity: In the comparison of production capacity, AKS is in the leading position because of having 4mills where PHP has only 2 and KY has1 mills. The production capacity is very much important for each and every company because to meet the market demand. ProductionAKSPHPKY Per annum (max)300,000mt150,000mt100,000 mt Growth rate of market share : In the area of market growth rate, PHP has the highest growth rate 8% of market share.
Where KY are in the stable position 2% and AKS is in the moderate rate 5%. Distribution channel: In the area of distribution channel, AKS is in the superior position in comparison to PHP and KY. AKS has a separate sales force department, which goes to each and every retail shop of their coverage and takes the sales order from them. After taking the order from the retailers, the sales force department tells it to the transport and logistic department to deliver the product. Then transport and logistics department delivers the product swiftly by their own vehicles.
In this way the delivery is occurred so fast and smoothly. On the other hand, both PHP and KY follow the indirect distribution channel system, where they are totally controlled by behaviors of the dealers and distributors. Distribution system of AKS (GCI): Sales force distributes GCI to Sell the GCI to AKS Retail Shop Customers Benchmarking: In benchmarking comparison, KY is in the leading position. They always try to develop their product and compare the product with the competitors’ products.
KY spends more than 5,000,000tk research and development for their product, which is the highest expenditure by any company in the GCI industry. Promotional budget: In promotional budget comparison, PHP is in the leading position because of its highest budget for this purpose. It spent more than 42 million tk for promotional purpose in the last year where AKS spent 35 million tk and KY spent 22 million tk for promotion. This highest amount of promotional budget helps PHP to raise its sales in the last year. Acid regenerate plant: In this comparison, AKS is obviously the leader because of having the acid regenerate plant.
For this the cost of hydro-chloric acid, which is used in GCI production, has decreased in comparison to other. Marketing Objectives : Generate sales by 15% or by 900 metric tonnes in the North Bengal within June, 2005. Increase awareness at Rajshahi by 20% within June, 2005. Generate sales revenue of 320 million Tk. in 2004-2005 fiscal years. Modify the market by targeting the contractors and real estate business-man for encouraging the use of GCI in the construction and fencing thus the sales can be generated by 15% within 2005. Generate sales in the middle east market by 10% in 2005.
Marketing Strategy: Marketing strategy reflects the company’s best opinion as to how it can most profitably apply its skills and resources to the marketplace. It is inevitably broad in space. It is the means by which, a company achieves its marketing objectives and are usually concerned with the four P’s. MARKETING MIX VarietyList priceChannels Advertising QualityDiscountsCoverage Personal selling DesignAllowancesAssortment Sales promotion FeaturesPayment periodLocations Public relation Brand NameCredit termsInventory
PackagingTransportation ServicesLogistics Warranties Returns Product: Product means the goods and services combination the company offers to the target market. It is anything that can be offered to a market to satisfy a need or want. The concept of product is not limited to physical object- anything capable of satisfying a need can be called a product. A product is anything that can be offered to a target market for attention, acquisition use or consumption that might satisfy a want or need. In another it can be defined as a bundle of benefits or anything offers some values.
The product of our company is GCI (Galvanized Corrugated Iron-sheet). Now it has described below according to the elements of marketing mix Product variety: Abul Khair Steel Mills has no product variety in the GCI as well as there is no product variety in the industry. Only the GCI ( Zinc) are available in the market. Quality: Quality means free from defects. Product quality indicates the capability of a product to perform its functions. So from this perspective, AKS’s GCI is the best in the market.
In production procedure they use any kind of poisonous lead and gases and metal which pollutes the environment. Moreover they use a acid regenerate machine which is used to refine the acid until it perished. They refined their raw materials by using the heat and gas. For this technology the GCI looks more shining and durable. Design:Design is a larger concept than style. Design is more than skin deep; it goes to the very heart of a product. Good design contributes to a product’s usefulness as well to its looks. AKS 20 designs of GCI and those are given below in a chart with weights- Feature:
Feature means additional benefits given by a product relatively to others. It is basically a technical term. The features AKS’s are given below- Hot dip Galvanized steel coils and sheets (plain and corrugated as per jis G3302 and equivalent international standard . The product is also available as per customers specifications. Zinc coating : 100to 275 gsm/sqm Base Metal thickness : 0. 11-0. 50 mm GP sheet width :750-1000 mm Length of the GP or GC sheet :3048 mm max. Quality : hard
Packaging: Each CR/GP coil is packed with polythene/ HDPE sheets and completely enclosed in metal cover of galvanized sheet. Metallic edge protectors made out of galvanized sheets are provided to ensure seaworthy packaging. The coil is secured with 3 high tensile metal strapping around the circumference and 4 metal bands through the eye of the coil. Metallic id sleeve is provided to prevent coil collapse. The CR/GP sheets are packed in 1to 3 MT bundle weight on wooden skids, completely wrapped in polythene /HDPE sheets and enveloped with galvanized steel sheet all over.
The packed sheets on wooden skid are secured with high tensile metal strapping adequate enough to withstand extreme rough handling by road/rail/ sea transport. Brand name: The brand name of the AKS steel is COW BRAND which is very popular in Bangladesh just because of the similarity with life of village people. This brand name easily attracts the customers of village who have the cows. Return: AKS does not generally take return their product or replace the product from the customer but incase of damage of the GCI product they replace the product for the retailer . PLACE:
Where the product is sold may, similarly, have a considerable impact on consumer perceptions of a brand. The nature of the outlet which stocks a particular brand may transfer certain dimensions of image to the brand itself and make it more or less desirable as a purchase. Channels: Distributions channels will be most effective when each member is assigned the tasks it can do best. AKS has a great distribution channel in all over the Bangladesh. The success of Aks or overall its channel success depends on the success individual channel members. All the channel member of AKS work together smoothly.
Coverage: The AKS coverage of AKS is spread all over the Bangladesh. It operates its distribution through the sales force which is divided into six parts according to the six divisions of Bangladesh. The divisions are DistrictsSales target (%) Chittagong 30% Dhaka20% Rajshahi10% Khulna15% Sylhet15% Barisal10% Inventory: Generally AKS use to hold inventory for the next 4 or 5 for months , the size of the inventory is 15000 metric ton. AKS has to import raw materials from the Brazil, Russia and some European country. Sometimes ships delayed that’s why they hold the inventory.
Transport: AKS has fully a separate transport and logistics department to collect raw materials and deliver the goods to its customers efficiently and effectively. Discounts They use cash discount method for the retailer. When the retailer purchases the product in high volume the company gives them cash discount. If any retailer buys 1 metric ton at a time they get 500tk Payment period: According the sales information of AKS retailer has to pay the credit money within 10-15 days of sales date. Promotion AKS takes various types of promotional activities to increase the short-term ales. They arrange a cultural program at Rajshahi at 25th April performing by Abdul Kuddus Boyati. They also advertise in different media to attract their target customer. Advertisement: AKS has do lot of advertising through out the year for promoting the product. They spend 35million tk in last for ad because it is the tool of generating sales. AKS do ad in the following medias- Television Radio Newspapers ATL and BTL. But out of those medias, tv and radio is the most effective media for AKS because of its target customer education level, taste and preferences. Sales promotion:
According to the information of marketing department of AKS they do sales promotion only for the retailer, if any retailer buys 1 mt GCI they got 500 tk. as discount. They also arrange coupon system to attract their target customer. They do sales promotion because sales promotion invite and reward quick response. It helps them to building long term brand preferences Sales force: Their sales force is stronger than their competitors. Their selling channel is in good position all over Bangladesh. For their sales force increasing they do some expense for the better training with their channel member.
Public relation: AKS do various types of public relation to aware the target customers about their product. They use press release in the newspapers for promoting the product. Some times it seems more real and believable than ads do their public relation can also reach many prospects who avoid sales people and advertisement. Action Prorgam: Action program are things, which have to do for attaining the desired objectives. This a very important task by which the company becomes able to reach its expected position. AKS has also some action programs and those described objectives by objectives-
Generate sales by 15% or by 900 metric tonnes in the North Bengal within June, 2005. Increase awareness: AKS is not the most preferable brand at Rajshahi although it is market leader in GCI industry. That’s why to make AKS as a preferable brand to the target customers, it has to make some promotional activities by which the awareness can be increased by 20% in this way- Ad in Radio: The target customers of GCI are mostly village people and still the main source of recreation is Radio. The economic solvency is another reason for using Radio. In fact, still radio is the best medium for advertising to target the village people.
In this case, AKS has to develop the ad in the local Rajshahi language because local language is very much influential to them and they will understand the ad message easily. Many companies has diminished just to fail to understand the importance of local values, language and culture. Conversation by Nana-Nati: At Rajshahi Nana- Nati program is the most famous character. The local people like their conversation very much. Through the conversation, they make understood about the product. That’s why; AKS should use Nana- Nati as opinion leader for its GCI. Cultural program:
The people of Rajshahi like the cultural program very much because only these things are the source of entertainment for them. So promote the product of AKS, it should use some people for performing the cultural program like- Abdul Kuddus Boyati to promote the product. Develop a official website: Website is the most important things for each and every company because it is the main source of information. In foreign countries, buyers order the product through website and it is common practice in the foreign countries. They take the information from the website and then send email for giving the order.
So to get those order, AKS has to develop a official website having with required information regarding the sales of GCI. Local marketers: AKS has to appoint an Arabian sales manager to monitor the middle side for generating more export sales in middle east. Because a local people has more influential power than a foreign people. And the language of Arabian is also big problem for any foreign because most of the Arabians can communicate in English. So generate more sales AKS should select and Arabian sales manager only to monitor and generate the sales of export sales.
Arabian advertisement: To generate more sales in Middle East market AKS should make an advertisement in Arabian style performed by Arabian model. Because, Arabian will be attracted easily if AKS will develop an advertisement in Arabian style. Objective: Modify the market by targeting the contractors and real estate business-man for encouraging the use of GCI in the construction and fencing thus the sales can be generated by 15% within 2005. Develop an ad in the business magazine to attract the contractors and engineers for encouraging the use of GCI in fencing and construction.
Budget: Budget is that which is essentially a projected profit and loss statement. It shows expected revenues (forecasted no of units sold and the average net price) and expected cost (of production, distribution and marketing). The difference is the projected profit. Once approved by higher management, the budget becomes the basis for materials buying, production scheduling, personal planning and marketing operations. AKS has also a marketing which is the part of the master budget of AKS’s total budget. The marketing budget of AKS is described below-
Items of budgetMay- OctNov-JanFeb- April Trade fair680,000 tk1,020,000tk1,700,000tk Gifts and promotion472,800 tk709,200tk1,182,000tk Seminar and meeting46,400tk69,600tk116,000tk Sponsorship84,000tk126,000tk210,000tk Advertising6,220,000tk9,330,000tk15,550,000tk Coupons400,000tk600,000tk1,000,000tk Measurement: There is two tools for measurement and those are – Monitoring, Controlling. Monitoring: According to the sales information of AKS, it sold 70,000 metric tonnes GCI in the 2004. And it plans to sell 80,000 metric tonnes GCI in the next year 2005.
Out of all sales, AKS exports 15% of its AKS are now providing its products in the six divisions of Bangladesh and has the plan divisionary sales target. The sales force management has to set up a division wise target of each division and then have to monitor the sales whether the sales are generating according to plan or not. The maximum sale of AKS in Chittagong (30%), then Dhaka (25%), the weakest division is Rajshahi (10%). As there is no sales office in Rajshahi, it is the most challenging division for Rajshahi and PHP, the main competitors are very strong in Rajshahi.
So to grab the sales of PHP, AKS has to operate its sales force very carefully. AKS has to setup a monitoring department to monitor the regional sales as well as the export sales. The department structure are furnished below- The monitor department will monitor the sales target division wise and continent wise. The divisional sales manager will look all sales targets and he will collect the information from the sales force. He will go to the important sales area and collect information regarding the sales after every two months. Controlling:
The divisional sales manager is the liable person for controlling the sales information. Because sales is the indicator of market share and the net profit. If the divisional sales manager finds that the sales target of any division are not generating as expectation, then he will check the sales information very carefully and go to that area where the sales are not generating. Then he will find out the reason for this failure and then report it to the general manager of monitoring department. Generally the divisional sales manager has to repot to the GM after every 1months about the progress of sales.
And the junior sales manager, who is appointed for the retail shop distribution, will report to the divisional sales manager after every 15days. If they will find any failure or irresponsibility of any employees he or she will be showed cause for to the General Manager. If General Manager finds that he/she is guilty, then GM should dismiss him/her from the company. Contingent plan: If the total sales will not increase then AKS can follow this plan: Reduce The Fixed Cost: If the projected sales will not increase in the next year, AKS could generate the forecasted profit. And this will hamper every functions of the management.
At that situation, AKS would have to decrease the fixed cost. By reducing the fixed cost, it could make up the loss on sales and maintain the activities easily Seasonal discount: AKS can give the seasonal discount to generate the more sales in the off-season. Because the target customers of GCI are very much price sensitive and if they will get any extra discount in the off season, may be they will buy the product in the off season instead of dry season. In this way AKS can generate more sales. If the export sales will not increase in the middle-east then AKS can do the following things-
Strategic alliance: AKS can make a strategic alliance with any distributors of the UAE to generate the sales in the export market. Conclusion AKS is the most dominant company in GCI industry of Bangladesh. Their marketing strategy and policy contributed a lot for their success. But for some wrong planning and decision like not emphasizing in Rajshahi sales, lack of monitoring in export sales growth, AKS has to lose the potential growth rate. To overcome with this sort of problems, AKS has to set new policies and strategies for the next two years which are emphasized in this marketing plan.
Despite of these things, the position of AKS is satisfactory. Acronyms: GCI = Galvanized Corrugated Iron- sheet GPI= Galvanized Plain Iron- sheet CR Coil= Cold Rolled Coil HR Coil=Hot Rolled Coil NOF= Non- Oxidizing Furnace MT=Metric Ton (1000 kg= 1 Metric Tonnes) RSM= Regional Sales Manager DSM=Divisional Sales Manager Bibliography: Principles of Marketing Philip Kotler, Gray Armstrong, Prafulla Y. Agnihotri & Armstrong ;13th edition; 2010. Marketing Plans Malcom Mcdonald; 4th edition; 2002. Official web site of “ABUL KHAIR STEEL” (AKS)