TABLE OF CONTENTS

SL Chapters Pages
1.0 Executive Summary 4
2.0 Methodology 4

5.0 Introduction 5
6.0 Marketing Audit 6-11
7.0 Marketing Planning 12-16
8.0 Evaluation Report 17- 18
9.0 Bibliography 19
10.0 Reference 19
11.0 Appendix 20-23
Executive summery:
This industry was established at June 2010 and recently wants to settle on commercial
production. Before doing this, a brief marketing plan is needed. Because, it is an important issue
that without planning the whole preparation would be failed. From marketing audit there is
identified some information about its market, customers, competitors, distributors and some other
internal and external issues.
There have found many opportunities and some threats in the market. The plan is helps this
industry to utilize those opportunities and reduces or control the threats. Moreover, firm should
not go for segmenting their market rather differentiate their product in their customers mind by
giving something new and do the best. By adding value company can make its profit higher rather
reducing their price. There is a brief discussion about how can facilitate a cost leadership
advantage. They use some new technologies and sophisticated machine so it is needed to make
skill their labors. Because, high technology would be danger if anyone can’t handle it properly.
Implementation is needed for any plan so; management should allocate their resources in proper
way.
It has no doubt that this plan if implemented in the right ways will achieve the desired outcome
for launching there new product in the market and setting a new standards for socks industry in
the Bangladesh.

Methodology:
Preparing for this marketing plan I get information from primary and secondary data.
Primary data: Primary data are collected from survey, FGD with some experienced persons,
deep discussion with company’s Chairman, Managing director and other responsible persons.

Secondary data: From websites, articles, journals, previous student’s reports and other sources
secondary data are collected.
Introduction:
This marketing plan is concerned with the development of strategies that are based on the
planning term’s measurement of the market and perceptions of managerial expectations and
organizational capability. Various tools and terms are used for medium term planning marketing
strategy under this process:

This report is structured to discuss the following:

 Analyze the situation
 Set the realistic objectives
 Generate ideas and develop sensible strategies
 Choose different tactics to support strategies
 Implementation the strategies with action plan
 Control, monitor, measure, report and adjust.
Marketing Audit / Current Situation:
Marketing audit is identified as a crucial part of a professional marketing planning process. It is
nothing but an analysis to find out the past and present situation of an organization. There are
various internal and external factors which influences the company’s current situation. For this
reason marketing audit describes those factors so that we can make decision what will be our
strategy for making effective marketing plan.

Overview of the market:

Market

- The fastest growing industry in Bangladesh with Readymade Garments (RMG) accounting for
more than 75% of total exports.
- Bangladesh is best place in the region for textiles and garments because of cheap labor and trade
status with the EU.
- Sock industry is under the criteria of Readymade Garments (RMG). So, it would be great
opportunity for launching this product.
- Though most of the people (about 70%) people live in rural area urbanization is not stop in
recent years. Country people are getting education and office going people are growing. Demand
of sock is increasing day by day both urban and rural area.
- The population in Dhaka city is more than 7.0 million (est. 2008) and the population is growing
by an estimated 4.2% per year and literacy rate is 62.3%.
-

Competitors:
- There have a small number of sock industries (i.e. Total Socks Ltd., Prag Socks, Hamim Socks,
Savar Socks Ltd., Zara Socks etc.). Prag, Zara and Hamim go for product branding. But their
product quality and production capacity is not same as Classsical Socks.
- Prag has two sock’s outlet in Dhaka (Capital city of Bangladesh) city. From their outlet Prag
make order for retail and wholesale. They have few Indian machines and poor production
capacity, so they cannot go for export or make huge order.
- Total Sock is not interested for local market. Their production capacity is 1.5 lac / month. This
industry is using Korean machine and technology similar to Classical Sock.
- Zara and Hamim go for product branding in the local market. But they can’t get success in this
market due to lower quality and lack of strong positioning.
- Sometimes retailers changing the tags and telling customers this sock is made in France, China,
India, Thailand. People not to buy brand or quality, people just buy the name of made in or
attractive packet.

Customers:
- We found most of the customers are living in urban area, educated, students, and office going
executives.
- Male prefers socks rather than female in Bangladesh. Because female prefers sandal shoes
rather than shoes.
- Customers are not aware of local socks brand. Most of them go branded shoe stores (i. e. Bata,
Apex, Jennys, etc.) or road side socks stalls. Sometimes they buy Nike, Power, Foreman, Addidas
and many other tagged socks. Even the socks are not produced by those companies. Interesting
thing is Bata, Apex, Jennys are not sock manufacturer.
- Customers are price sensitive. In the survey question we got, 52% people considerd the price as
their first choice while go for buy socks. Moreover they (customers) put their first choice for
quality 36%, 4%for style, 3% for design and 5% for color. (plesase see the appendix-D)
- None of them can recall the brand name of Zara, Hamim sock from their memory. Only 1%
people know the name Prag socks and buy from their outlet
- Branded shoe stores have huge demand of socks. Bata country (Bangladesh) production
manager- Mr. Mefuj Ahmed says, “We have demand of 15 million socks per year. Most of the
time local manufactures fails to provide that orders and quality what we needed.”

Analyze the Macro and Micro Environment:

The below three analyses will represent both macro environment (political / legal, economic /
demographic, social / cultural, and technological) and micro environment (customers,
competitors, distributors and suppliers):

 PEST analysis
 SWOT analysis
 Porter’s five forces

PEST analysis: PEST analysis is the most common and important tool for marketing audit.

Political analysis / legal:

Bangladesh is a country of river and has tropical monsoon-type climate, with a hot and rainy
summer and a dry winter. The government is followed by parliamentary democracy.

Legislation: The legislations in force are as follows:

 Patent and design act of 1911
 Patent and design rule of 1933
 Trademark act 1940
 Copyright act of 1999

Government polices for foreign investment:

There are equal similarities between foreign and domestic private investors regarding investment
incentives or export import polices in Bangladesh. Incentives for investors: 100% ownership in
most sectors; tax holidays; reduced import duties on capital machinery and spares; duty free
imports for 100% exports; and tax exemptions.

Economic analysis:

Economy situation:
In 2011 Bangladeshis per capita income is estimated US$1,700 (adjusted by purchasing power
parity) which is increasing. But this income is significantly lower than India and Pakistan, both
which are also lower than the world average of US$10,497. The economic growth rate is 6-7%
per annum over the past few years. There more than half of the GDP belongs to the service
sector; almost half of the Bangladeshis are employed in agriculture sector, with RMG; fish
vegetables, lather and lathe goods, ceramics, rice and others produce. The ease of doing business
rank is 107th position.

Bangladesh corporate tax rates: In 2008 – 2009 tax years corporations tax rate are as follows:
 Publicly traded company 27.5%
  Non publicly traded company 37.5%
 Bank, Insurance & Financial company 45%
 Mobile phone operator company 45%

If any publicly traded company (excluding Mobile Operator Company) declares more than 20%
dividend, the company is allowed 10% rebate on total tax.

Social analysis:

Bangladesh has the highest population density in the world, excluding a handful of city-states and
small countries such as Malta.

Demographics of Bangladesh:
 Population: 156,050,883 (July 2010 est.)
 Growth rate: 1.292% (2009 est.)
 Life expectancy: 60.25 years
Age structure:
 0 – 14 years: 34.6% (male 24,957,997/female 23,533,894)
 15-64 years: 61.4% (male 47,862,774/female 45,917,674)
 65-over: 4% (male 2,731,578/female 2,361,435) (2006 est.)

Here major Ethnic group is Bengali and minor ethnic are Santhal, Chakma, Garo, Bihari, Oraon,
Munda, Rohingya. Official language is Bengali, people spoken in Bengali, Tribal languages and
English. Mega-city of Dhaka has a huge population, but the majority of the people nonetheless
still live in villages in rural areas.

Technological analysis:
Bangladesh has been struggling to achieve their basic needs of its people. Besides their living cost
and inflation rate is increasing day by day. Bangladesh Government takes some initiative for their
technological advances and ICT related projects. Some foreign technologies come to this country
and produce machineries and other technological equipments and developing roads and highways
in recent years. Also there is improvement at telecommunication sectors and digital media
sectors. There have allowance and duty free facilities for importing computer and IT related
products in Bangladesh.

SWOT analysis: One of the most important tools of marketing audit is the SWOT analysis or
Strengths, Weakness, Opportunities, Threats analysis.

Strengths:

1. Financial capability: There have strong financial capability of this industry.

2. Suitable Location: This factory is situated alongside Dhaka – Sylhet high way and
there have enough parking area for loading and unloading goods and materials. For this
reason suppliers and buyers can easily communicate with this factory.
3. Management expertise: Managing director and other managing body has more than
20 years business experience at garments and textiles sector.
 4. Large factory space: There have more than 6500 sqf. space for knitting and finishing
area. Because of two stored building there have enough space for warehouse keeping
their stocks, cottons and other materials.
5. Production capacity: There have more than 1lac pair socks production capacity with
good quality per month.
6. Intangible factors (Such as brand): Their brand name is Classical Socks is a product
of I. Ahmed Textile Mills Ltd. This industry is a sister concern of Classical Home Tex
Ind. Ltd. Locally Classical is a very well reputed brand for home textiles.

Weakness:

1. Raw materials: This industry is highly dependent on cotton. Bangladesh also much
more dependent on other foreign countries for this raw material.
2. Dependent on local buyer: Till now this firm is not targeting foreign buyers. So,
most of their socks buyer is local and not willing to pay more though raw material
cost is increasing.
3. Unskilled/uneducated labor: Only 2% workers have academic certificate or have
technical certificate.
4. Energy maintenance cost: There is not sufficient power supply in this country. For
this reason, they are dependent on generator which increases the industry energy
maintenance cost.

Opportunities
1. Demand of quality socks: Business buyers like Bata Shoe Company (Bangladesh)
Ltd., Apex Footwear Ltd., and Bay have huge demand for quality socks.
2. Emerging new technologies: Emerging new technologies socks knitting machine
suppliers will supply advanced machine by which sock’s core quality will improve.
3. Increasing new shopping malls: Local shopping malls and shoe stores are
increasing. For that reason, socks demand will be high at that retails outlets.
4. Increase purchasing power: Bangladeshis disposable income and purchasing
power is increasing gradually.
5. Not enough competitors: There have many garments factory in this country but
have few of them interested in sock industry.

Threats:
1. Existing competitors: Already Comfort socks and Total socks are enjoying fast
mover advantages.
2. Other developing countries: Competition from other developing countries like
China already captured international market and using modern technology.
3. Duty free textile machinery: Allowance of duty free textile and garments machinery
is an opportunity of other competitors.
4. Local banks have not sufficient reserves: In recent year banks and other financial
institutions reserve is not good because of stock market corruption and some other
reasons.
5. Balance between price and quality: There is a challenge for making balance
between price and quality.
Porter’s five forces model: According to Porter (1980) the competitive structure of an industry
can be analyzed using Porter’s five forces. This model attempts to analyze the attractiveness of I.
Ahmed Textile Mills by considering five forces within a market. In this analysis micro-
environment factors (customer, competitor, distributor and supplier) are considered. Those five
forces are defined as:

1. The likelihood of new entry:

 Socks knitting machine is highly sophisticated and technological based. For example:
There must have proper air passing system with each and every machine. After machine
installation the whole knitting room will have to control air temperature for continuous
production. So this types of industry has high entry cost.
 Bangladesh government imposes high tax for imported readymade garments. For this
reason it is a great opportunity for local manufactures of readymade garments.
 Majority of local customers are not loyal for brand socks (See the page 5, market
overview). But there have huge demands of socks in local and international market.
 There have huge demands for quality sock in the existing market. But it should be in
reasonable price.

2. The power of buyers:

 I. Ahmed targets some business buyers who have needed quality socks (i.e. Bata Shoe
Company Ltd., Apex Footwear Ltd., Jennys Footwear Ltd. etc.). Those firms are few in
number, so buyers have more bargain power for reducing price.
 Business buyers can’t switch another provider easily while they searching for high-
quality socks. Because, there have few providers who are capable for providing high-
quality socks. Local wholesalers can easily switch another provider. Moreover, they are
concern about their sales commission rather than quality.

3. The power of supplier:

 There have many cotton suppliers in local market. A big retail market is in Narayngonj
named Tanbazar. All of those suppliers manage cottons from knitting garments which
price is more or less same. So, there have many options for buyers. But the thing is one
supplier can’t provide large quantity of similar color cotton at a time. For this reason,
sometimes buyers depend on suppliers and have to pay high price due to unavailability
of same types or same color cottons in market.
 Switching to another supplier is not so difficult or expensive at this market. In this
situation suppliers don’t have more power.
 In this year international cotton market was out of controlled and fluctuated. So, local
suppliers can easily playing game in recent year. Besides, Uzbekistan, India and some
other countries stop exporting cottons.

4. The degree of rivalry:

 There have few dominant firms where high competition does not exist.
 Cost for leaving is high for this type of large firms. Because there have some high
installation cost and machines resell value is not good enough.
 Bangladesh is an over populated and developing country. Moreover educated persons and
office executives are increasing gradually. Because there are rising many multinational or
group of companies. Educated and officials are the end users of this product. So, market
is expanding and firms can easily gain their profits and sales.
 There is little brand loyalty in the market so customers of socks are likely to switch
easily between products.
5. The substitute threats:
 In summer season there is so much sun in Bangladesh. Most of the People prefer sandal
shoes in summer time. For that reason socks demand is fallen down at summer season.

(For detail analysis, please see page-5, Overview of the Market )

Likelihood
of new
1.0 - Time and Demand of entry
quality socks in existing
marketSources of raw
materials
2.0 Dependent on local buyers
3.0 Unskilled & uneducated
labors
4.0 High maintenance cost of
The power The power
of buyer
energy, machinery of supplier
equipments. The degree
- xisting market of rivalry
high entry cost.
- Great opportunity for local
manufacturer.
- Business buyers can’t - Local -customers
Have fewaredominant
not brand - Depends on local cotton
switch to another industry loyal. companies. supplier for raw materials.
easily. - Huge- Cost
demandof leaving is high.
of quality socks. - Switching to another
- Business buyer’s have -Existing
-Government market
policy is notisso supplier is not costly.
bargain power in some hard. expanding. - Local suppliers have
cases. - Little brand loyalty in the
- Consumers can easily existing market.
switch.

The
substitute
threats
- Shoe sandal is substitute
for shoes at summer time.

Porter’s five forces used at I. Ahmed Textile Mills Ltd.

Assumptions:

From that discussion some assumptions come out:

1. There have much potential in the current market.
2. Market is expanding so always be careful about new entrants and existing competitors.
3. Customers are sensitive, so do the best thing and do the thing best.
4. Bangladesh economy is stable. It could be opportunity for launching new product.
Similarly it may be a threat while other competitors use that possibility.
5. Check and balance between demand and supply.
Marketing Plan:
It is obvious that without planning it is not possible to achieve the goal what you want to be or
where you want to reach.

Mission:
Try to be number one manufacturer within 3 year due to capacity and quality.

Objectives:
There have few objectives for marketing plan of this industry. Objectives should be clear,
measurable and have a stated time frame for achievement. The below objectives are subject to
SMART criteria, that makes sure chosen objectives are Specific, Measurable, Achievable,
Realistic and Time-related.

Obj. # 1: Within 3 months achieve best output from machine.

This objective can make sure the quality of the core product.

Obj. # 2: Try to achieve 80%production of total machine capacity within 6 month.

Till now this industry is testing their machine and not going for commercial production. It will be
generate the overall efficiency of this industry.

Obj. # 3: Reducing overhead cost and making balance between cost and price.
As a new industry there have many mistakes and lack of knowledge about sock’s knitting
machine. Labors must be aware of the overhead cost and maintenance process of new high
technical machine. Price should be reasonable.

Obj. # 4: Increase sales in retail stores by 20% within 1 year.

Obj. # 5: Make this industry as a trusted manufacturer within 1 year.

Establish its trusted brand name (Classical Socks) in customers mind.

Strategy:

Johnson and Scholes (Exploring Corporate Strategy) define strategy as follows:

"Strategy is the direction and scope of an organization over the long-term: which achieves
advantage for the organization through its configuration of resources within a challenging
environment, to meet the needs of markets and to fulfill stakeholder expectations".

An organization takes different strategy in different way due to their particular objectives and
purposes. Strategy has no value if there is not found any action and action should be measure by
resources and other factors. Company’s strengths and opportunities can be used for reduces
weakness and control threats. If we use the strengths and opportunities in a competitive way by
following strategy it will be helpful for achieving the goal.
So, we come to know why we should follow strategies for an organization. Here this industry’s
SWOT transformed to TWOS by following some strategy.

How I. Ahmed Textile Mills Ltd. used the TOWS matrix in its sock division:

Internal Strengths: Internal Weakness:

- Enough financial
capability
Strategies - Suitable location
- Management Expertise
Tactics
- Large factory space
Actions - Production capacity
- Intangible factor (i.e.
Brand name)
- Sources of raw materials
- Dependent on local buyers
- Unskilled & uneducated
labors
- High maintenance cost of
energy, machinery
equipments.

External Opportunities: S-O strategy W-O strategy

- Demand of quality - Increase production - Trying to catch new
socks in existing capacity market(market
market - Purchase new machines development)
- Emerging new - Develop new brand and - Develop HR and R&D
technologies design and quality sector
- Increasing new - Promote the brand - Reduce maintenance cost
shopping malls
- Increasing purchasing
power of parity of
customers.
- Not enough
competitors in existing
market

External Threats: S-T strategy W-T strategy

- Existing competitors - Reduce production cost - Waiting for bank’s stable
- Other developing - Develop new position
countries technologies and - Product development
- Duty free for textile & logistics
garments machineries - Develop customer
in Bangladeshi market relationship
- Recent financial crises management
in local bank
- Balance between price
& quality

The TOWS matrix (adapted from Weihrich, 1982) 9

Target market: I. Ahmed Textile is neither a retailer nor a trader. They are only manufacturing
the socks. For this reason if, this industry can’t utilize its product capacity or can’t 100% sale of
its total production it is obvious it’s per unit production cost will be high. In this case, this
industry should targets:
 Large quantity buyers (Bata Shoe Com., Apex Footwear, Jennyes Etc.)
 Wholesalers
 Importers (Develop new market)
So, this industry goes for planning how to serve those buyers and how to make ensure quality
with minimum cost of production. There have huge demand of sock at business buyers. (See the
explanation at page-5, Market overview)

Positioning statement:
Classical Socks – A brand you can trust.

It will not be a wise decision to go narrow market for I. Ahmed Textile Mills Ltd. Because, this
industry has large capacity and trying to reach at the number one position of socks manufacturer
in Bangladesh. For that reason, as large volume industry areas of differentiation would be:
 Product
 Distribution
 Image

Product Differentiation: The following uniqueness can give competitive advantage:

 The size, shape and the components of the sock. For example, manufacturer present plain
socks with formal or simple design. But there are lots of youngsters wear plain socks
without satisfy the socks design, shape or color. Because, there have changed at
Bangladeshi culture, people’s psychology, thinking and behavior etc.

 The product performance and quality can be a measurable issue. Form our research we
found that people define the quality of sock’s by elasticity, cottons, color durability etc.
(see appendix – D)

 The product performance consistency, that means hold the same quality for all orders.

Distribution: In Bangladesh retail stores sales sock by single pair and there is a tradition that
socks must be covered by plastic bag. It is manufacturer responsibility to package all of the
products for end users. In this case, while Manufacturer Company distributes their products they
must aware of how they package and how they distribute?
 It is important for this industry develop their website for making foreign buyer.
  Business buyers give order for a month, but want delivery twice or thrice in a month. So,
there must have the arrangement of transportation for delivering goods with good
condition.
 Unique channel--offer a service over the phone or Internet instead of in person or in their
office rather than manufacturer.
Image: Manufacturer while choose wholesales or business buyers, generally they are not concern
about creating brand image if they can’t use their brand name on the product. This industry has to
think different way:
 Bangladesh Government arraigning Trade Fare in every year. Lots of foreign countries
are come together with their various products. I. Ahmed Textile has to go for promoting
their product (Classical Socks). In this way they can make influence the foreign business
buyers.
 Customer relationship management can create its image to their customer.
 Though first time this industry becomes much depended on their business buyers, it will
not be wise decision in long term it is continuing. Besides, they can’t make profit much if
they can’t reach the end users. Bata and other business buyers are not selling others brand
though they selling others product. In this situation, this industry may arrange press
conference and take another public relation activities. For example, this industry may
arrange seminar, invite their buyers give chance to say something and forecast it by
popular TV, Radio, and Press media.

Similarly this industry has to be cost leadership in different way: It is needed also be a cost
leadership in different way for a firm. Because, without minimize their cost they can’t get profit
though they differentiate their product. In this present situation of the world there always
recession is occurred. For this reason, we must concerned about to reduce or control our cost but
not stop adding value. So, it is important to follow the bellow techniques:
 Labor efficiency
 Standardization, specialization, and methods improvements
 Technology-Driven Learning
 Better use of equipment
 Changes in the resource mix
 Product redesign
 Network-building and use-cost reductions
 Shared experience effects

Actions:

Risk management:
There may have something that could be wrong with this company. The marketing plan for the
new product / service may not implement within this industry.

A risk management process should be in should any of the below incidents occur:
 Lack of knowledge about new machine and handling tools.
 Unskilled cheap labor selected.
 Lack of budget
 Communication gap between industry and head office.
Action plan:

The below chart describes the action plan for the year:
Activity Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Building the team X
Allocate the X
planning budget
Launch an X
informational
brochure
Choose CRM system X
Choose distributors X X
Build supply chain X X
management
Develop the website X X
and upgrade
Develop design of X X X X
the product
Create a launch X X
event and invite
media
Trained the quality X
control team
Arrange internal X
seminar
Building strong X
communication with
buyers even vacation

It will take time for every planning and implementing. But from the first we have to concern
about what would be our action and how to control the present situation. Consequently, company
top management should make clear the plan and organizational goals. As a new established
industry the must to make it complex. Because, all of the stuffs and employees are new to this
organization and it’s working environment. Sometimes, even a hard and complex task would be
easy while management take the instant initiatives in easy way.