Internship Report Spring 2010

A working Report On Marketing Strategy of Defoin Printing Bangladesh

By

Shadab Iqbal Siddiqui Id. 0510159

An Internship Report Presented In Partial Fulfillment Of the Requirements for the Degree Bachelor of Business Administration

Independent University, Bangladesh April 2010.

Working Report on Marketing Strategy of Defoin Group Bangladesh

By

Shadab Iqbal Siddiqui Id. 0510159

Has been approved by

Mohammed Sohel Islam Lecturer

School Of Business Independent University, Bangladesh

April 2010.

April 25. 2010.

Mohammed Sohel Islam

Lecturer

School Of Business

Independent University, Bangladesh (IUB)

Subject: Letter of Transmittal.

Dear Sir,

I would like to take this opportunity to thank you for the guidance and support you have

provided me with during the course of this report. Without your help this report would

not have possible to complete. With deep gratitude, I also acknowledge the help provided

by Mr. Mehfuz Ali Khan, Manager Marketing, Defoin Printing, for providing me with

utmost supervision during my internship report in the company.

I would really appreciate if you would enlighten me with your thoughts and views

regarding the report. In addition, if you wish to enquire about an aspect of me report, I

would gladly answer your queries.

Thank you again for your support and patience. Yours sincerely

Shadab Iqbal Siddiqui Id. 0510159.

Acknowledgements

In the completion of this internship report I would like to thank a few people for their

support and guidance.

First I would like to express my gratitude to Mr. Mehfuz Ali Khan, Manager Marketing,

Defoin Printing, for his special care and huge encouragement during the path of my

internship. I would like to thank Mohammed Sohel Islam, my supervisor for preparing

throughout the planning and writing of the report. He made sure all my questions were

answered, kept me on track and gave me the support I needed.

I would also like to thank Mr. Helal Uddin Mia and Mr. Sahid ullah of Defoin Printing

for their immense help, support and most importantly for believing in my capabilities and

me.

Table of contents

Sl. No Descriptions Page

1. Introduction 1

2. Company Background 1

3 Marketing Activities of Defoin Printing 4

4 Marketing Departments 6

5 Competitive Scenario 7

6 My Position as internship at Defoin Group 8

7 Daily routine and my contribution 9

8 My Learnings 11

9 Problems Identifications 13

10 Recommendation 16

11 Conclusion 17

12 Appendix 18

13 Reference 23

Executive Summary

As part of my internship program of Bachelor of Business Administration course

requirement, I choose Defoin Printing, Bangladesh for doing my marketing internship for

a period of three months starting from 1st February 2010 till 25th April 2010. I was

assigned in marketing department of Defoin Printing. I was placed at the head office of

Defoin Group at Mirpur. I worked under the supervision of Mr. Mehfuz Ali Khan,

Manager Marketing of Defoin Printing, at the entire time I prepared a working report on

Marketing strategy of Defoin Printing. My University supervisor was Mohammed Sohel

Islam, Lecturer, Independent University, Bangladesh. He approved and guided me to

prepare this report.

My report will give an overview on Defoin Printing's marketing strategy. It will also

highlight the task I have performed as Defoin Printing, my contribution and learning

during my path of internship.

I used both primary and secondary data to complete my report. Information on the

company and printing regulations was retrieved from the country and company profile.

However the primary data was collected through discussions in the organization and also

through my experience during the course of my internship.

1. Introduction Defoin Printing is the largest printing company all over the country. It has a very good

reputation in the garments printing and the department I was assigned to is marketing

department of the company. My report is "on the marketing strategy" of Defoin Printing.

Defoin Printing took the opportunity to be more competitive in the market by introducing

four color process printing which was introduce by the Defoin Printing as pioneer in the

printing sector. Defoin group has more unite like embroidery, garments, Shari factory etc.

As their businesses field got broadens, the company has got a change in to group of

company's named Defoin Groups.

2. Company Background Defoin Printing is the recognized leader in Bangladesh garments printing sectors,

providing its buyers with high quality at reasonable price. Defoin Printing was

established in 1983 as M/S. Defoin at Adabor, operating on one floor with to production

line. It was a small factory with around 30 workers and 2000sq floor. Gradually as time

passed the company's business got better and within a short period of time it shifted to

Mirpur in 1990, with the 6000sq floor and 300 workers, with 2 production floors. At

present the company has 8 production floors with 21 lines and 1000 workers with

production capacity of 150,000 pieces various types of prints per day.

The company's main purpose is to provide best quality, price and delivery within the

given time and in doing so the company enhanced in greater extent that international

buyers like gap, Wal-Mart, Walt Disney, Sears become their major clients and how the

company has 7 production floors with more than 500 workers.

Recently they have taken broader steps forward by starting different branches along side

their main factory, which includes in-house printing and embroidery facilities to handle

multi technique graphics. The company has a wide base of chemical supplier from

international and local markets. Present scenario is the company is capturing 59.83% of

the total screen print market. The companies now have four printing factories two outside

Dhaka, which is in Kabirpur and one in Mirpur.

Skilled workers working in totally social and technically compliant environment with

multi buyer certification. Strong technical team work to handle quality. Employing the

most professional and experienced personnel’s has been their competitive advantage.

The management at Defoin Group works together as family towards the same goal and

faces challenge with great courage. Thus it makes Defoin Group a great place to work in

and has earned M/S Defoin to Defoin Group.

Product Profile. Defoin Printing is based on 100percentage export oriented screen print. The company's

main products are all prints on T-shirts, Polo shirt, Jeans, etc. Those are characterized by

print names such as

1. Plastic soul print

2. Rubber print Appendix-02

3. Flock print Appendix-06

4. Crack print Appendix-03

5. Four colour process Appendix-04

6. Normal color print

7. Paper Transfer

8. Glitter print

9. Metallic print

10. Glow print (Radium)

11. Discharge print Appendix-01

12. Reflective print

13. Foil print

14. Puff print

15. Photo print Appendix-05

16. Pigment print

Company Diagram.

Chairman Managing Director Executive Director

Manager Marketing Factory General Manager

Marketing Executive

Sample In charge

Manager Finance

Manager HRD

Production Manager

Delivery

man sample

supervisors All In charge

All workers

3. Marketing Activities of Defoin Printing. The main product of my company is garments printing and the printing sectors are mainly

maintained by the marketing department. The marketing styles of Defoin printing are as

follows.

Direct buyers

Through the buying houses

Through the garments

Without direct buyers, in all cases the marketing people have to deal with the respective

merchandiser and according to buyers demand we go for rubber, pigment, Discharge,

flock, puff, glitter and so many uncommon printing. At the same time Defoin Printing is

using its website name www.defoin.com and they take part in various garments oriented

exhibitions like Bangladesh Knit Manufacturing Export Association, as well Bangladesh

Garments printing Association trade fair. These two Exhibitions are the biggest hold in

printing sector. With the help of these exhibitions it enables the company attract direct

buyers without connecting via buying houses and garments. The buyers basically

recommend to the garments to develop prints on Defoin which as a result the Company

gets to hold the direct buyers.

Moreover in Bangladesh there are lots of buyer house, those who Intent to develop their

prints in Defoin due to there better quality. Not only this also buyers recommend Defoin

for superior quality and used production live. Accordingly to Defoin Printing SWOT

analysis their

Strength - GAP, Wal mart, Walt Disney nominated factory

automatic printing machine, importing

chemicals from Korea, England, company

goodwill

Weakness - Niche Company's price, does not have their own

garment knit factory

Opportunity- Starting new units with knit garments facilities

Threats - Political issue, labour unrest, close down of knit

garments industries, high price of chemical.

Defoin believes in good, better, best. When the company started then it was good, after

25 years Defoin climbed a step up which is better and now Defoin strives to be the best.

The company rate themselves as the no.1 company in Bangladesh but to learn more and

acquire more skills through technology, innovation, more better quality are their main

motive to hold their position to be the best in the market and cement their position.

4. Marketing Departments For marketing purpose Defoin Printing is having the following sectors.

Marketing Manager

Marketing Executive

Sample In charge

Buyer or Merchandise

r

Camera Section

Sample or Artwork

Design Section

Sample Section

5. Competitive Scenario. Competition is a very fast growing challenge is today's world. Many company's have

emerged, which more then 1000. Factories are operating in niche and some who has knit

garments have started composite unit where they have printing facilities as well not only

that as new companies growing the battle of price is taking as well. As new companies

tend to offer their best price which is lesser compared to Defoin. Many buyers tend to

adjust their order to the competition Defoin Printing has kept its goodwill in the market

as by providing the best quality at the same time started more units, one in Kabirpur and

one in Mirpur. By doing so the advantage that Defoin Printing has created their

production belt gets much more bigger and at the same time they can minimize cost by

doing greater production.

Printing like flock, glitter, high-density, discharge are the technologies which new

companies can not afford to do. Which Defoin does and Defoin maintains the standard.

Therefore that's one more benefit and a reason to choose Defoin. Apart from that the

company import chemical from Korea. Which is one of their biggest strength compare to

their competitors and last but not the least the company is gap and Wal-Mart nominated

as a result 12 months the work on these giant buyer.

Major Competitors

Hams Luna Viyalatex HTMS

1. Hams : Another big printing factory in Dhaka. They have 10 production

lines and 75,000 pieces capacity per day.

2. Luna : They Have 11 production lines and 65,000 pieces Capacity per

day.

3. Viyalatex : They have own Knit garments and 5 automatic printing

machines.

4. HTMS : They have 5 production lines and 20,000 pieces capacity per day.

6. My position as an intern at Defoin Group

Defoin Group gave me the opportunity to work in Defoin printing. I was under marketing

manager’s supervision. My responsibility was to work with the marketing team. To

consult on daily marketing activities and to report marketing manager, in regard take help

whenever I required. Due to confidential reasons, I was not allowed to work on other

departments of Defoin Group. In addition, as a non-routine I was engaged in number of

activities mentioned on my daily routine and my contribution.

7. Daily Routine and my contribution. Working under Marketing Manager My work was to check new queries about any new development as per the instruction of

my marketing manager. Accordingly, I used to consult regarding the print with the

sample in charge to know which chemicals required and what the effects will be. After

the development was completed I along with the marketing executive team used to go to

garments even in buying houses for approval.

Dealing with Merchandisers

During meeting with the merchandisers I had to make them understand the prints as per

developed. Before going, the buying houses with new sample developments I had to

report to the marketing manager and give him a short viva regarding the print. In relation

rectifying my mistakes and correcting it. After that If, there were any changes on the

sample then to figure out what its solution.

Working with Marketing Executive Team

The times when there was not any new developments to work on, I was sent with the

marketing executive team with some company profile and exclusive samples for the new

buyers and visit some reputed buying houses, garments and try to attract them about our

company for the new orders. I also had to mail new clients for new orders and existing

ones with their current orders report along with the quality of production as well, helped

by the production manager.

Giving better Marketing Ideas

Marketing manager gave me the responsibility to give them more innovative ways of

marketing. On that basic, I gave better marketing ideas to the marketing manager.

Sometimes buyers used to visit our factory to check our product.

The company showed them practical sample where critical prints were involved. Often

buyers used to have vague idea as what the print was and questions used to arise. So

provide the service and improve marketing technique, I advised them to carry a power

point presentation where unknown prints work will be marked with arrows with different

print names. I also dealt with sample section to look over the position of the sample

developing as per the buyer’s requirements. Where most of the times mainly I had to be

involved as part of my the marketing team

I also suggested expanding on those places and areas where there are lots of knit

garments factory and hardly any screen-printing factory. As to attack on those, market

will always be a good marketing strategy where printing factories are less and more knit

garments factories are. This will enable to get many orders from the knit factories.

Other Activities

Sometimes I used to go to production floors to have a look on how production takes place

in bulk quantities and how the production carried after the approval. At the same time

does the quality is maintained properly. Apart from my intern activities, I also arranged

dinner parties for buyers and attended with the man agent.

Contribution

But most important I have earned a new order from my own hard work as after preparing

the sample for a rubber print, for a new buying house as per instructed from the

marketing department I sealed the order of 40,000 pieces. This was a great achievement I

believe in the beginning of my professional career, which I tend to choose for my future.

8. My learning

I had very little knowledge about screen-printing and its marketing techniques. However,

over the last 3 months I have become familiar with the business and its whereabouts.

Doing my internship in the same department of my field of education was a great

exposure for me. I gained knowledge on garments sector and how the entire unit works,

especially screen-printing. To talk with foreign clients and to present information has not

been regular part of my education and I have not done previously. But being involved in

corporate world over the last three months has made me more positive about my

communication and presentation skills.

Being part of the marketing department of Defoin printing, dealing with buyers and

receiving new orders has vastly enlightened the creative part of me. Given the chance of

participating in Bangladesh Knit Manufacturing Export Association was a great learning

for me in terms of marketing the product, providing information and being more

professional towards commitment. I had to be very conscious as to what I tell foreign

clients and the manner I speak with the buyers. By doing so I had better understanding

about people and also the ability to tactfully manage them.

The experiences I overcome in the three months internship are all new and informative to

me and there were many things to learn from. They have made me more outspoken and

social, creative and strong enough to deal with different people from diverse background.

Over the last four years of my BBA program I have acquired immense knowledge on

diverse subjects like Management, Marketing, Media and Communication, etc. As

whenever I used to go to production floors I used to motivate workers by helping them on

their task. Even by shaking hands and asking "how are you?" Here I followed

management theory of motivating workers.

My minor was on media and communication, which has given me the knowledge as how

to disseminate message among the working team. That I applied whenever I used to work

on new queries with marketing team and sample people. In addition to have the best body

language when communication with someone.

I was able to relate many theories of marketing like to capture new market (gorilla

attack), creating brand loyalty to its buyers, satisfaction etc. This was way easier for me

to understand and relate these terms with that of the books.

9. Problems Identifications

During my internship time I have got the following problems inside the garments printing

which is not only for Defoin Printing but also for the all garment printers.

Working via garments.

Commissioning problem.

Threats from Niche company.

Electricity problem.

Mode of payment.

Uniform website.

Working via garments.

Printing companies usually work with the garments. For this reason, the company gets

fewer prices based on the buyer's actual price from the garments, for instance if the

buying house gives us 5 dollar per dozen the garments gives us 4 or 4.25 or even lesser.

The garments quality controllers give unnecessary pressure. The production gets slower

and sits idle if the short cutting of fabric takes time to receive from garments. In some

situations the garments does their shipment and then wants to give payment as per their

company policy.

Commission problem.

If we do not get the order from the direct buyer then the word commission comes and for

this reason, we have to pay some extra money to the merchandiser who is involved with

the order. This part is very negative for the honesty of business and if commission or

other entertainment is not provided to the merchandiser’s then the possibility of getting

the order become lesser.

Threats from Niche Companies

To start a screen-printing factory the initial investment is very less as it is around 10 to 11

lakhs taka. Compare to any other garments related industry investment, like starting a

knit garments factory or Owen garments factory. Sometimes key personnel’s from

marketing, design, sample who acquire full experience regarding printing starts their own

factories. As a result, they try to get order at any cost and thus the overall printing price

becomes less than the expected one. This hampers big companies like Defoin printing to

cope up with their price requirements.

Electricity problem.

Electricity is one of the most important factor in our daily life and when it comes to

industrial sectors its mandatory. Without electricity or gas support almost all process get

hamper as for instance after printing on cutting part of fabric when it goes to final process

which on curing machine the goods gets back lot. That's not only the problem during

production time the work of dyers, heat seal machine, lights are not operating in this case

the production gets stop.

When the company runs production floors with the help of generator the cost increases.

Electric cost per day is 6000taka on the other hand when the company operates on

generator from 4 to 5 hours then the cost is 9000taka. Therefore, electricity cost without

generator per month is 155,000Taka plus generator and fuel makes it 350,000Taka per

month.

Mode of payment.

Besides the direct buyer most of the cases we get the payment 15 days differ from the

L/C. The buyer gives L/C to via garments or buying house. After the final goods are

delivered then the garments or buying house gives us the acceptance later the company

purchases the acceptance. This often gives trouble to the company as workers, staff, and

utilities get delayed.

Uninformed website.

Bangladesh garments printing association does not have any website or any kinds of

international pages. That is why we are not getting any knock from the European buyers

and also they are not visiting our personal website in a good number.

10. Recommendation.

Commission problem- is an issue that the company has to face when dealing with

respective buying houses or the merchandisers. If the company gets the order from the

direct buyer such as Gap or Wal-Mart then the payment of commissioning issues will not

the major cause, the reason is if the company does not pay commission to the third parties

then they opt for different options. Importantly the mode of payment won’t be trouble as

the company will get direct L/C.

Therefore to collect orders from buyers or buyer’s recommendation is going to be the

ultimate way of marketing, and to set the printing price without commission problem.

The company needs to send its marketing team to China where every year an exhibition

takes place where companies from all over the world participate.

Uninformed website-Garments print Association needs to emphasis on to have every

printing companies web site from where the buyers the can direct come into contact with

the factories. In addition, if it is done Defoin printing will be highly benefited, as they are

the largest in the industry.

Working Via Garments- The company must start knit garments as that will a core

competence as the company has printing and embroidery facilities compared to their

competitors. As a result working via garments and getting lesser price then the actual

price will be reduced. Hence not only that, transport cost will also be minimized from

going to various garment factories, which is time consuming. Moreover, if a garment

starts on the same place, the waste production time will enhanced. In doing so Threats

from niche companies will be solved as well.

Electricity- is the biggest problem in our country, to combat the adverse situation the

company can have their own solar panels or power plant if necessary. The company can

start their own shop where they can have there own designed printed T-Shirts with

various new and demand artwork from consumers.

Others

At last but not the least the government should give extra care towards the garments

printing. As the company’s 50% income is gained from garments sectors and Bangladesh

is on 2nd position in Asian garments market. So political unrest like strike, political havoc

need to be under control as buyers wants their goods to be shipped on time and at the

same time it’s a great loss for the factories as well if they cannot. Also infrastructure has

to be enhanced for better communication.

11. Conclusion.

Entire period of my internship time I got vast knowledge about garments printing and

printing related most of issues. I have understood the basic work and prospect of

garments printing factory as well as came to know the problems and its solution during

my internship period. The management was extremely helpful, believed and encouraged

e in whatever task I was assigned to. This behavior of their heavily boosted my moral; I

feel more confident and ready to make an impact to the corporate world. This will help

me a lot for my future career in this particular field and its marketing policy.

Appendix-01

11. Discharge print

Appendix-02

Rubber Print.

Appendix-03

Crack Print.

Appendix-04

Four Colour Process.

Appendix-05

Photo Print.

Appendix-06

Flock Print.

References:

www.defoin.com

Internal Sources

• Interview with marketing manager

• Interview with buyers

• Face to face communication

• Yellow pages