[Type text]

1

Effective Segmentation and Targeting Strategies

A study on:

2

Date: 24/04/2011

Hamidul Islam

Lecturer, Department of Marketing

Faculty of Business Administration

American International University- Bangladesh

Banani, Dhaka.

Subject: Submission of Transmittal.

Dear Sir,

It is a great pleasure for us to submit the report to you entitled by “Effective

Segmentation and Targeting Strategies: A study on Partex Group”.

It has been a great pleasure for us to work on this report as it provides many

opportunities to gain insights about market segmentation and targeting strategies.

We are grateful to you for your continuous guidance in preparing the group project.

Sincerely yours,

• Md. Ikram Hossain • Id: 10-16237-1

• Hyok Sin• Id: 10-16331-1

• Md. Tareq Hossain • Id: 07-08990-2

3

Acknowledgement

By the cordial mercy of Allah, now we are able to submit our report to our honorable

faculty Mr. Hamidul Islam. We strongly believe that it would not be possible preparing

such a report without Almighty’s grace.

Now we would like to thank our honorable faculty for his keen efforts and invaluable

guidance.

We would like to express gratitude to our university faculty members. They should be

remembered because they produced the platform of our knowledge.

Finally we are really grateful to the other employees and officers of Partex Group for

their help and valuable advice. Again, we like to thank our honorable teacher for giving

us such a chance in completion of the report

Executive Summary

4

This report mainly deals with the segmentation and targeting strategies

implemented within the Partex Group. In order to find out the bases of segmentation

and different line stretching and line filling policies within the Partex Group, various

kinds of resources and information have been gathered mainly thorough secondary

research methodology.

It also discusses the market offerings, company overview and practice of different

marketing concepts. It also holds a product mix table describing the different types of

product lines, its width, length and also its consistency.

As the report has been prepared in an academic way, it may lack some realistic

point of views in terms of marketing strategies.

We also included some recommendations for the Partex Group to improve their

marketing process.

We greatly hope that this report would fulfill all the requirements set by the

honorable faculty and we are always ready to accept our shortcomings and learn from

our mistakes.

Table of Content

5

Contents Page No

Letter of Transmittal 1

Acknowledgement 2

Executive Summary 3

Contents Page No

CHAPTER ONE

Introduction of the report

01. Company Overview 4-5

02.Objectives of Study 6

03.Limitations 7

CHAPTER TWO

Methodology of Study

Data Collection 8

CHAPTER THREE

Findings and Analysis

01. List of Market offerings 9

02.Practice of Marketing Concepts 10-11

03. Business Portfolio 12-14

04. Product Mix Table 15

05. Line Stretching Strategies 16

06.Bases Of Segmentation 17

07. Target Marketing Strategies 18

08. Pricing Strategies 19

09. Evaluation Of Close Competitors

20

CHAPTER FOUR 21

6

Suggestions

01

. CHAPTER FIVE

Conclusion

22

Reference and Bibliography 23

Appendix 24

Chapter 1

7

Introduction of the Report

1. Company Overview

Background: Partex Group is among the large Bangladesh private sector

manufacturing and service based enterprises, owning and operating over twenty

units giving value for money to all customers.

The group started modestly in 1959 in tobacco trading and with prudent

entrepreneurship of our Founder Chairman Mr. M.A. Hashem. Today we have a

stake in tobacco, food, water, soft drinks, steel container, edible oil, wooden

board, furniture, cotton yarn and the IT sector. After Bangladesh was established

our Chairman set up M/S Hashem Corporation (Pvt.) Ltd. in Chittagong city

meeting the large demand of food and materials needed for sustaining the needs of

a new nation through imports. From importing to import substitution was the next

logical step and the stepping stone into the manufacturing sector, which has

matured to the multi million dollar diverse investment of the Partex Group today.

A dedicated work force and committed board members led by our Chairman and

backed by a market oriented corporate strategy has been the cornerstone of our

success. Today the group has over twenty family owned private limited companies

with a sizable turnover. Ours is a dynamic organization always exploring new

ideas and avenues to expand and grow further.

Mission and Vision:

8

THE AIM

The Sky is not the limit for us, but our expectation is within limits. Therefore, our

imagination soars beyond conventional barriers. We share or destiny with our beloved

motherland. We want to serve her in the greater quest for national uplift.

THE WAY

To sincere traveller, the way is never too long. We believe in "progress in diversity and

service through entrepreneur". We are, both merchants and missionaries, doers and

dreamers, entrepreneurs and professionals. We are futuristic with emphasis on creating

thinking and dynamic action.

...and THE SPIRIT

Enterprise is our spirit. We manufacture superior import-substitute consumer and

industrial products. Our cutting edge precision leads to greater public utility and

hygiene, with a great care for the environment and human inhabitation. It is the very

ingredient that gives our organization the integrity upon which our reputation is built

and we zealously guard it everyday.

Many a thousand minds of our group contributed their gathered knowledge to keep the

the wheels rolling that in turn leads us to our goal. This cumulative strength of

knowledge is required, today , to find new solutions for the manifold problems of fast-

changing economic cultural and ecological milieu.

2. Objectives of the study

9

Broad Objective:

This report is mainly intended to find out more about the Partex Group in terms of their

segmentation and targeting strategies in the light of marketing management. Today,

effective segmentation and target marketing strategies play an important role increasing

the revenue and the actual profit of the market.

This report closely looks into the various aspects of segmentation of the Partex Group

and how they are targeting their customers.

Specific objective:

This report then specifically deals with the list of market offerings, practice of

marketing concepts, list of SBUs within in the Partex, different types of line stretching

strategies and etc.

3. Limitations of the Study

This report holds some limitations of its own as it only deals with the limited aspects

within the Partex Group and it also has some setbacks as the report is done without any

actual survey on the Partex Group. As the resources for the report was mainly

secondary, it holds little impact on the current happenings and the strategies

implemented within in the Partex Group. And as it deals only with segmentation and the

targeting strategies of the Partex Group, it may be misleading when trying to judge the

whole marketing strategies performed by the Partex Group accurately.

Chapter 2

10

Methodology of the study

Data Collection

Most of the data used in this report are mainly secondary sources as our group could not

take any actual surveys on the topic among the Partex Group itself. Some of the

information are from Partex Group’s official websites and various other articles and

some of them are from various kinds of magazines and newspaper articles. As we failed

to obtain any primary data on the topic, the report would be much more theoretical and

subjective rather than objective based on actual statistics.

11

Chapter 3

Findings and analysis

1. List of Market offerings

Following is the list of market offerings of the Partex Group and their various sizes and

their relevant prices. (Prices may be different from retailers to retailers.)

No Name of Product Size Price(TK)

1 Danish Sweetened Condensed Milk Net 397Gm 40

2 Danish Milk Powder Net 1000Gm 420

3 Danish Milk Powder Net 500Gm 245

4 Danish Mango and Orange Juice Net 250ml 20

5 Silver Cross Full Cream Sweetened Milk Net 397Gm 37

6 Danish High-Energy Biscuit Carton box 10

7 Danish Pineapple Biscuit Carton Box 30

8 Danish Premium Assorted Biscuit Tin 350

9 Danish Assorted Biscuit Tin 350

10 Danish Glucose Biscuit Carton Box 10

11 Danish Lemon Biscuit Carton Box 10

12

12 Danish Doreo Biscuit Carton Box 60

13 Mckenzie Vegetable Biscuit Carton Box 130

14 Mckenzie Calcium Carton Box 170

15 Danish-G Carton Box 80

16 Royal Crown Cola 500ml, 250ml 25, 15

17 RC Cola (Diet) 500ml, 250ml 25, 15

18 RC Cola (Lemon) 500ml, 250ml 25, 15

19 RC Orange 500ml 25

20 Mum Mineral Water 1.5liter, 500ml 20, 12

13

1. Practice of Marketing Concepts

Danish Food Products and Partex Beverage make up the biggest financial profit

for Partex and those funds are then invested to other sister companies to improve

both quality and quantity of their products.

Danish Food Products and Partex Beverage are combining Production Concept and

Marketing Concept. If closely examined, Production Concept plays more important

role in the Partex management. Production Concept is the idea that consumers will

favor the products that are widely available or highly affordable. In light of this

theory, Partex Beverage and also Danish Food Products are both having large

production and effectively using various distribution outlets in order to attract more

customers and to increase their satisfaction level thorough low price and

availability.

For example, customers can easily buy Danish food products and beverages

in almost every shopping malls or small shops with relatively low price. Danish

condensed milk, Danish Fruit Juice, Danish Milk Powder and Danish Biscuits are

all produced in bulk quantity and the company tries to maintain the lowest possible

price in the market by producing in large quantities. Partex Beverage is of the same

case. They are also producing beverage products in large amount and they are also

promoting their products thorough effective communication so that customers

would find the products on every possible shelf of shops. RC Cola, RC Orange and

Mum mineral water are also well established in the minds of the customers and

their impression on those products are also very positive, which can later act as a

great base to improve the sale and image of the company. The way that Partex can

14

reduce the price of their products is that they are producing in bulk amount and

because of their relative low price, they can get closer to their customers more than

their competitors do.

Partex is not only following the Production Concept but also following some of

the Marketing Concept. They do not produce products just out of blank. They are

consistently doing market research and development to pin point the exact need of

their customers and to deliver the desired satisfactions better than competitors do.

Partex has a very effective management team to manage the needs and wants of

the target market and based on the results, they are producing needed products

with state of the art technology. By relying on the market surveys and researches,

the management team is trying hard to meet everyday changing demand of

customers. Partex Beverage and Danish Food Products are also providing freedom

of choice with many different types of products of different size, packaging and

flavor.

Partex is also well-known for its quality. Danish Food Products have achieved the

quality management certificate ISO 9001-2000 and for producing quality product

Danish Condensed Milk has achieved the HACCP certificate at first in

Bangladesh.

Combination of production concept and marketing concept is the key to their

success and production concept is the main backbone for their company.

2. List of Business Portfolio

15

List of Strategic Business Units : Partex can be categorized into separate SBUs

based on their characteristics and individuality.

Danish Condensed Milk: Danish Condensed Milk Bd. Ltd. is the most rewarding

unit of Partex Group; the unit produces Danish Condensed Milk in 397 Gm. cans,

Danish Milk Powder in 1000 Gm. & 500 Gm. sachet packs and Mango & Orange

Juice in 250 ml aseptic packs. Danish Condensed Milk is the first in the

Condensed Milk Industry started operation during the year 1991 in the country

and possessing the leading position in the local market. Presently Danish

Condensed Milk is being exported in Nepal, Bhutan and some parts of India in

bulk quantity. It has been well appreciated in those markets as a result it is

expanding day by day in foreign markets.

For quality management Danish Condensed Milk bd. ltd. has achieved the ISO

certificate. It also has achieved HACCP certificate for maintaining stringent

quality in all phases of production.

Danish Milk Powder: is another SBU of pertex group. This unit of the Group

was launched with the aim of marketing high quality full cream milk powder

throughout the nation. The factory of Danish Milk Bangladesh Ltd. is located at

Kanchpur, Narayanganj. The company markets "Danish" brand spray dried full

cream milk powder both in 500 grams and 1000 grams sachet packs, enriched

with vitamin A and D. The products are packed in sachets by highly sophisticated

Automatic FFS (Form, Fill and Seal) machine. The products are marketed through

its vast nationwide distribution network by the company's distributors covering

16

the whole of Bangladesh. At a later stage, the company has a plan to market

powder milk in tins & other pack sizes.

Danish Fruit Juice: is another SBU of Partex. Recently commissioned, this unit

produces highest quality fruit drinks under the brand name Danish Fruit Juices.

Bangladeshi customers have welcomed the mango fruit and orange flavored drink,

hygienically packed in 250ml aseptic packs. Every age group can enjoy this drink,

especially when served chilled in our hot summers.

Danish Biscuit: comprise another SBU of Partex. Danish Foods Ltd. is

producing Biscuit of international standard in the world's most modern hi-tech

plant maintaining the most hygienic way. They are offering the very best quality

of biscuit in the country. Danish Biscuit contains nutritional values like vitamin,

mineral, calcium, protein etc. those are essential for human body. Danish has got

the production capacity of 40 tons Biscuit per day with its titanic plant. At present

we have launched twelve variants of Biscuit and another six variants are in the

pipeline. Danish Biscuit has been exported to Nepal. We are in the process of

expanding our export market.

RC: Rc drinks are another SBU of Partex. RC drinks combine RC Cola, RC

Orange, and RC Lemon. These products are already well-established locally with

profound history of market presence since 1997.

Mum mineral water: is another well-known SBU of Partex. Although it is in the

fierce competition among other mineral water companies, it is well received by

many customers and they are doing their best to maintain long-term relationship with

17

their customers based on the top-most quality and wide availability.

3. Product Mix Table

Pro

du

ct M

ix L

engt

h

Product Mix WidthFood and

DrinksFurniture Paper

Marine

Transportation

Particle

Boards

Clothes and

steel

Danish Condensed Milk,

Danish milk powder,

Danish Biscuits,

Danish Fruit Juice,

RC cola,

Mum Mineral water,

RC orange,

RC Lemon,

Upper 10,

Partex

Furniture,

Amber

paper

and

pulp,

Corvee

maritime

Partex Star

Particle board,

Amber

cotton,

Partex

Denim,

Rubel steel

drums,

Product Mix Depth:

As shown in the table of product mix of Partex Group, under the category of food and

drinks, the product line is very lengthy and its depth is also incredible as those brands

hold numerous different versions of different sizes or colors or tastes. For example,

under Danish Biscuits, there are tens of different versions of cookies of different price

and most importantly different taste. Also under the RC brand, there are some different

versions of RC such as RC Orange, RC Cola, RC lemon and Upper 10, which is another

variation of RC brand. Under the category of Danish Condensed Milk, there are various

kinds of packaging based on the likes of different customers.

18

Product Mix Consistency:

However, when considering the consistency, the product mix of Partex Group is not that

efficient as the different categories it holds are all of different fields. Except the

category of foods and drinks, the rest of categories are of various different fields which

require construction of different types of factories, employment of different skilled

labor and establishing different distribution lines. As the fields it is operating in is so

different, it obviously require large sums of money. In order to attract larger profits, the

Partex Group may need to look into those aspects of consolidating the consistency level

of its product lines.

Line Stretching Strategies:

Partex Beverage Ltd. has stretched the companies product line in both upward and

downward line stretching strategy. Those are:

Upward Stretching: From Danish High-Energy Biscuit, Danish Pineapple Biscuit to

Danish Premium Assorted Biscuit, Mckenzie Vegetable Biscuit, Mckenzie Calcium

etc.

Downward Stretching: Silver Cross Sweetened Milk

Target Marketing Strategies :

Undifferentiated: As our company uses production concept, thereby we mostly use

undifferentiated target marketing strategies to target consumers. For Example: 250

ml of Royal Crown Cola, RC Cola (Diet), RC Cola (Lemon), RC Orange etc. all of

these soft drinks stands for a same amount of price- 15 Tk.

19

Differentiated: Our company also uses marketing concept, so differentiated targeting

marketing strategies are also practiced by our company. For Example: Danish Doreo

Biscuit, Mckenzie Vegetable Biscuit, Danish Premium Assorted Biscuit etc. stands for

different range of pricesPricing Strategies:

Pricing Strategies :

Market Penetration: As a producer of Fast Moving Consumer Goods (FMCG),

Partex Beverage and Danish Food Products are both having large production and

effectively using various distribution outlets in order to attract more customers and to

increase their satisfaction level thorough low price and availability.

Evaluation of Competitors:

As a producer of common food products, Partex Beverage and Danish Food Products

has both Direct & substitute competitors regarding the Product category. Some

competitors of our company are:

Direct Competitors: Pran, Acme, Akij etc.

Substitute Competitors: Energy drink producers like shark, tiger, speed etc.

Appendix

We use a questionnaire consists of 10 questions. Our questionnaire is given below:

American International University Bangladesh (AIUB)

Topic Name: Effective Segmentation and Targeting Strategies

 A study on “ Partex Beverage”

Course Title: Marketing Management

Course Instructor: Mr. Hamidul Islam

20

Name:

Sex:

Occupation:

Address:

1) Which brand’s product do you use?o Partex

o Pran

o Acme

o Others ______

2) Which company’s product is more available in your area among:o Partex

o Pran

o Acme

3) Which Powder Milk do you use in your home?o Danish Milk Powder o Fresh Milk powdero Marks Milk Powder

4) Which Mineral water you use in your house?o Mum

o Fresh

o Spa

5) What do you think, what kind of RC flavor Partex should introduce in

Bangladesh?

o Ginger Twist

o Diet Lemon

o Lemon Low Calorie

o Peppermint

o Honey and Lemon

o If other, _________________

21

6) Which Biscuit do you use in your house?o Danish High-Energy Biscuit

o Al-Amin Pineapple

o Mr. Cookie

7) What do you think about the price of Partex food products, is it affordable?

Highly dissatisfied

Dissatisfied

Satisfied

Average

Highly satisfied

8) What do you think about the quality of the products of Partex?

Highly dissatisfied

Dissatisfied

Satisfied

Average

Highly satisfied

9) What’s your opinion about packaging of Partex’s product?

Highly dissatisfied

Dissatisfied

Satisfied

Average

Highly satisfied

10) Which FMCG product you want to suggest Partex to launch in Bangladesh

market?

Ans: _________________________________________________

22

Reference

www.google.com

www.wikipedia.com

www.Partexgroup.com

www.Partexbeverage.com.bd

Bibliography

1. Principles of Marketing,

By, Philip Kotler and Gary Armstrong, 12th Edition.

The End

23