1.

0 Executive Summary
BD food of Bangladesh plays significant role from the beginning of its operation in our country. Now a days, BD food consider as one of the leading consumer based company with a marginal market share in our consumer based food industry. Due to their high market growth and low market share they are consider to be in the cash cow position according to BCG matrix growth. BD Food is in the growth stage and that s why they follow corporate le!el strategy with !ertical and hori"ontal integration. Because of their di!ersified product they can maintain their market share e!en though one particular product is in the dead position of product life cycle. #n economic analysis, we ha!e shown the recently changed factors in worldwide food sectors. $ike, %DB forecasted that the Bangladesh would register the least gross domestic product &GD'( growth in the current fiscal year due to the impacts of global recession. BD Food industry s sales did not get affected due to inflation or recessions. BD food s exports rose )*.+) percent to , ).** million in the -anuary./arch period of the current fiscal year, backed by competiti!e prices and up market buyers shift to ethnic snacks as recession s0uee"es pockets of the consumers in the western economies. 1uarterly sales report of each product shows that all products ha!e met targeted sales units expect for /ango 'ickle and Beef sausages. /ango 'ickle could not compete in the market because competing offers had better taste due to better recipe. Beef sausages experienced low sales because of the %nthrax alert. #n addition according to porters fi!e forces model we see that the threat of new entrants in this particular industry is !ery low. 2ubstitute product for this industry a!ailable like s0uare, 'ran foods and many others consumer based company operating the market with same category of product. #n 2345 analysis we ha!e shown the strength, weakness, opportunities and threat of BD foods. #n recommendation part, we ha!e tried to gi!e some suggestion based on our findings and analysis like, 2etup organi"ational mission, goal and strategies than analysis 2345 s action which can be taken.

2.0 Background
6ecently, the world is facing a serious global crisis of recession and inflation. Bangladesh is mainly facing inflation which is causing price increase of almost e!ery product. /ost industries are finding it !ery difficult to cope up with increase in production cost and decrease in sales amount. 2ales are decreasing ob!iously because price of products are increasing, as a result people are !ery careful about their purchase decisions. 5his is a challenge e!ery business has to o!ercome. 7owe!er, food is something people hardly compromise with. 5herefore, the food sector is not harshly affected by inflation. BD foods limited, is therefore in stable position. /ost products usually meet with the company s budgeted units to be sold. 4ur report is concerning the 0uarterly sales of the period -anuary to march 8+*+. 4ur products names are BD chatni, sauces, chanachurs, fro"en foods and spices. 3e are also exporting these products to other countries especially to Dubai, 2audi %rabia, /alaysia and other countries in 9urope. 3e are pro!iding *++: halal food for people of those and our country. 5he following pie chart shows and o!er!iew of the products on the basis of its units sold in comparati!e to each product.

3.0 Company Profile

B !ood"# is currently the most well known household name among the millions of

people in Bangladesh and abroad also. 2ince its inception in 8+++, B food" ha!e grown up in stature and became one of the largest fruit and !egetable processor in Bangladesh. #t also has the distinction of achie!ing prestigious certificate like #24 ;++*<8+++, and being one of the largest exporter of processed agro products with compliance of 7%$%$ = 7%CC' to more than >+ countries from Bangladesh including ?2%, @2%, ?@, #ndia, ,2audi %rabia and different %frican nations. #n 8++* ABD foods has been registered as pri!ate limited company. By the year 8++B, BD foods went public. %uthori"ed capital 'aid up capital Business line Number of shareholder 2tock exchange listing Number of factories $ocation of the factory < 5k. C++,+++,+++ < 5k. D+,+++,+++ < Food = be!erage < )B, D*,+++ < Dhaka and Chittagong <* < Ghorashal, 'alash, Narshingdi.

$.0 Economic %naly"i"

$.1 &ro"" ome"tic product '& P( decline )ut food "ector not affected %DB forecasted that Bangladesh would register the least gross domestic product &GD'( growth in the current fiscal year due to the impacts of global recession. 5his year s growth at C.B: is lower by +.B: point of the pre!ious year s achie!ement. %cti!ity in the manufacturing sector decreased for a sixth month in -anuary &.E.*:(. 9xport.oriented sub. sector was particularly cold as the !olume of merchandise exports decreased >.+: in -anuary. 5he !olume of wholesaling acti!ity continued to fall in -anuary &.E.):(. But the wholesaling of food product increased.

$.2 *mpact due c+anging inflation, #n 8++;, inflation in our country was ;.*+. Beginning of the year 8+*+, inflation slowed

down, but still it is not good enough for Bangladeshi people. 5hey are still struggling to manage their food. 4n the other hand, globally food price also increased. #n the *8 weeks to 88nd march food inflation stood at ;.E;: compared with a trade of D.>: seen in the prior four.week period. 2o they looked for cheaper food product. #t is good news for Bangladeshi food producers because of cheaper prices compared to their food product. %s a result BD food took ad!antage of this opportunity and experienced high export sales in most of its popular products, during the period of -anuary8+*+./arch 8+*+.

$.3 Even if rece""ion i" going on )ut food indu"try a Sound *nve"tment#, 5he food industry is a particularly attracti!e in!estment due to the low risk factor it offers, especially in light of the recent economic slump. 'eople always need to eat which sustains the food industry and makes it a stable economic prospect during tough times. 5herefore, BD Food industry s sales did not get affected due to inflation or recessions.

$.$ !ood export ri"e $1 percent

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BD food s exports rose )*.+) percent to , ).** million in the -anuary./arch period of the current fiscal year, backed by competiti!e prices and up market buyers shift to ethnic snacks as recession s0uee"es pockets of the consumers in the western economies.

Export by Commodities (January-March 2010)

Commoditie" !ro1en !ood %gricultural product

-illion .S/ 2.32 3.42

S+are 0 $.23 0.32

2.0 Product"
BD food limited is highly moti!ated and dedicated towards producing and deli!ering high 0uality and tasteful products. 4ur products gained 0uick popularity among Bangladeshi citi"ens, when it was first introduced in the market, after immense anticipation. 4ur products are BD pickles, snacks, spices, sauces and fro"en foods. #n the period -anuary to /arch 8+*+, we ha!e experienced satisfactory sales in most of our products. 2ales summary of each product, for the abo!e mentioned period has been reported in this section of the report 2.1 B Pickle" and c+atni", 'ickle is a special traditional food item lo!ed by people from the #ndian subcontinent, especially Bangladeshi people. 5hus, these categories of product always obtain successful sales. 5here are three fla!ors of pickles and chatnis manufactured by BD foods limited in the bottles of )++ grams, which are< i. ii. iii. BD Boroi chatni BD 5armarind chatni BD /ango pickles 2ales unit of chatni for this 0uarter&#n context of Bangladesh( -ont+" 6anuary !e)ruary -arc+ 5otal unit" "old Boroi C+atni Units sold BEC++ BECB> BE8>C *D;))8 5amarind C+atni Units sold BECB> >8+EE >C+** 8*+B** -ango pickle Units sold C8++* C8CEE BEB>> *BD8**

From the abo!e table we can see that during this 0uarter BD chatni and tamarind chatni had sales abo!e 8++,+++ units respecti!ely. 5hus these two fla!ors ha!e reached the company s sales target. 3hereas, mango pickle failed to hit the standard company target of 8++,+++

units by a margin of E*>D; units exported sales unit for the period where Boroi pickle *++,+++ units and tamarind pickles *++,+++ and mango people C+,+++ units. 2.2 B "pice", 2pices are ingredients that are regularly used in Bangladeshi dishes. 2pices are manufactured by BD foods limited, especially by keeping Bangladeshi kitchens and dishes in mind. BD foods ltd mainly produces two types of spices. 'ackets come in two different si"es. i. ii. BD red chilie powder &*++ gms , E++ gms( BD turmeric powder &*++ gms , E++ gms( 2ales unit of BD 2pice for this 0uarter&#n Context of Bangladesh( -ont+" 7ed c+ili po8der Units sold 100 gms BB+++ DCEB> ;+C+* 8)*DBD 00 gms E+>>B EBE8) )+EEB *+>)EB 5urmeric Po8der Units sold 100 gms BBC)+ DDEB> D;;;) 8));+* 00 gms E+C)) EBB>C )+*8+ *+>EE;

6anuary !e)ruary -arc+ 5otal unit" "old

From the abo!e table we can see that both red chili powder and turmeric powder ha!e successfully reached the company s 0uarterly sales target of 8++,+++ units for *++ gms packs and *++,+++ units for E++ gms packs. BD food exported sales unit for the total period were *++,+++ units of red chili powder for each *++ gms and E++ gms packs. 9xactly same amount for turmeric powder as well.
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2.3 Snack", Chanahcur is a popular snack for Bangladeshi people. #t is a great way to pass time. Because of its popularity we ha!e launched our own chanachur in 8++B. 3e ha!e E si"es of packets a!ailable in the market. !ormal Chanachur" /ainly this chanachur is for kids and people f who donot like spicy foods. 5he sales unit of C++gm packets of chanachur were )C++, 8C+gm packets of chanachur was 8C++F mini packets of chanachur were highly accepted in the rural areas because it is !ery cheap. From this package we had satisfactory profit. 2ales unit of chanachur for this 0uarter&#n context of Bangladesh( -ont+" "mall Units sold !ormal 8++++ 8C+++ 8++++ BC+++ Jhal *C+++ E++++ 8C+++ 8;C+++ 9arge Units sold !ormal *C+++ 8++++ 8++++ C>+++ Jhal *++++ 88+++ *C+++ )C+++

6anuary !e)ruary -arc+ 5otal unit" "old

2.$ !ro1en !ood", Fro"en food makes our life !ery easy. #t sa!es our time. 2ausages are !ery popular among all fro"en food, because children like it. %s a result, children are our main target. 5here are two types of fla!or, Chicken and Beef and there are *++: halal. 2ausages always gi!e us satisfactory profit.

2ales unit of fro"en foods for this 0uarter&#n Context of Bangladesh( : pc" 12 pc"
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-ont+ 6anuary !e)ruary -arc+ 5otal

#ee$ Unit sold 8C++ 8+++ EC++ D+++

Chic%en Unit sold EC++ E+++ )+++ *+C++

#ee$ Unit sold E+++ 8C++ )+++ ;C++

Chic%en Unit sold )+++ EC++ C+++ *8C++

From the abo!e table we can see that during this 0uarter chicken sausages had sales of *++++ units. 5hus this fla!or has reached the company s sales target. 3here as, beef sausages failed to hit the standard company target of *++++ units. !uggets" Nuggets are highly acceptable among e!ery age group. /ostly it is popular among teenagers. Nowadays, we are so busy that we don t ha!e that time to spend on preparing food. Nuggets are !ery tasty and *++: halal. 3e are !ery happy with its profit. 2ales unit of nuggets for this 0uarter&#n Context of Bangladesh( -ont+ 6anuary !e)ruary -arc+ 5otal : pc" Unit sold )+++ E+++ )C++ **C++ 12 pc" Unit sold C+++ )+++ )C++ *EC++

From the abo!e table, we can see that during this 0uarter nuggets ha!e sales abo!e *+,+++ units thusF this product has reached the company s sales target. 9xported sales unit for the total 0uarter was C+++ for sausage and >+++ for nuggets. &rench &ries" 5here is not a single person who can resist this product and as a result it is highly popular and !ery profitable.

2ales unit of French fries for this 0uarter&#n context of Bangladesh( -ont+ "mall 9arge
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6anuary !e)ruary -arc+ 5otal

>+++ D+++ ;+++ 8)+++

BC++ >C++ DC++ 88C++

From the abo!e table we can see that during this 0uarter, French fries ha!e sales abo!e 8+,+++ units. %s a result sales target of 8+++++units ha!e been reached.

4.0 !inding"

Porter;" !ive !orce" -odel

Threat of New Entrants (Low) - High cost for capital investment. - High start up cost. ong time nee!e! to capture mar"et share.

Threats of Substitutes (High) - #ifferent su$stitutes are arising in home as %ell as from a$roa!. 10

Rivalry among the existing ompetitors (High) )ompetitors arise in previous 'ears. )ar$onate !rin" are ta"ing a strong mar"et position. *ntro!ucing ne% pro!uct line $' the rivalr'.

Bargaining power of buyer (Low) #ue to current economic slump countries li"e +,-. +/ is more !epen!e! on 0angla!eshi foo! pro!ucts an! $everage. 0ecause of high 1ualit' an! cheaper price.

Bargaining power of supplier

(Low) - &rices of ra% material are comparativel' lo%. - (overnment incentives to%ar! farmers.

S<=5 %naly"i"

Strengths
Potential Market in USA, KSA, UK, India and some other countries. Low manufacturing Cost Innovative roduct.

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Threats
Local com etition !oreign Com etition Price wars with com etitors Com etitors have su erior access to channels of distri"ution #a$ation

Weaknesses SWOT Analysis

%elativel& new fields 'istance and trans ortation cost Perisha"le item Com etitors have "etter reci e for mango ickle.

Opportunities
(uge demand 'evelo ing market Moving into new market segments that offer im roved rofit. (uge market

3.0 7ecommendation

*. 5hey should implement !ertical integration for their raw material collection. 5hat means they should concentrate on producing raw material by their own rather than collecting from the suppliers. 8. 5hey should concentrate on continuous impro!ements of their product. #t also in!ol!es new product de!elopment. E. 1uality can be considered as competiti!e ad!antages for them. 2o they should be concern about it and try to implement it in e!ery phase of their organi"ation.

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). 6eengineering will be a good option for them. #t in!ol!es with high.tech machinery and inno!ation. C. 'ay more attention on exporting products. B. Build more strong relationship with marketing intermediaries, such as distribution channels. >. 2ince, factory is situated relati!ely far from target markets, transport cost can be reduced by making arrangement of company s own transport system rather than depending on other goods deli!ery firms. D. Come up with better impro!ed recipe for /ango pickle.

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:.0 Conclu"ion
4!erall, BD Food has been stable in the period -anuary G /arch 8+*+. Despite of local and global recession, it has managed to makes sales according to its budget and of course profitably. 5here are strengths and opportunities, which can be used in fa!or of the company. 4n the other hand, it should make serious efforts to o!ercome weaknesses and minimi"e threats. #t should continue to follow its current sales and marketing strategy, in order to perform with such success.

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>.0 7eference"

<e)"ite,

!" http<HHwww.thedailystar.netH 2. 3.
http<HHwww.khaleeItimes.com &Dubai based Newspaper( http<HHwww.bd.foods.bd.com

Pu)lication", *. %nnual report of BD foods 8. 'roduct manual of BD foods

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10. %ckno8ledgement

At the very beginning we would like to express my deepest gratitude to the almighty Allah for giving us the strength and the composure to finish the task within the scheduled time.

This is high time to convey our special gratitude to our respected teacher Mr.Moinuddin Chowdhury, faculty of Independent University of Bangladesh, for his careful suggestions, guidance and support to complete this report. 2pecial thanks should go to those people who really tried their le!el best to make this report effecti!e and successful like<

6aisa 7asan 'riya, C94 of BD Foods %shraful %lam %bir , /anaging Director of BD Foods 5asnia 5abassum, 7ead of the 76 of BD foods %"i"ul 7akim %u!i, 7ead of /arketing of BD Foods

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