INTERNSHIP REPORT ON COMPARATIVE MARKET ANALYSIS, CUSTOMERS ATTITUDE AND STRATEGIC MANAGEMENT PRACTICES OF KEYA COSMETICS LTD STUDY

ON KEYA SUPER BEAUTY SOAP.

INTERNSHIP REPORT ON COMPARATIVE MARKET ANALYSIS, CUSTOMERS ATTITUDE TOWARDS KEYA BEAUTY SOAP AND STRATEGIC MANAGEMNET PRACTICES BY KEYA COSMETICS LIMITED

Submitted to Managing Director Keya Cosmetics Limited Jarun, Konabari, Gazipur, Bangladesh.

Prepared by Md. Kazim Uddin ID # 2008041003036 15th Batch MBA (ICT) The School of Business Southeast University Dhaka-1213 October 18, 2009

Letter of Transmittal
October 18, 2009
To Md. Anamul Habib

Course Instructor
HRM

Dear Sir, I have the pleasure to submit the Internship Report Comparative Market Analysis, Customers attitude towards Keya Super Beauty Soap and Strategic Management practices by Keya Cosmetics Limited. This term paper was assigned to me as a partial requirement of my Internship Program. It was a nice subject to work on and demands huge information gathering, Preparation, understanding, and concentration and subject Knowledge. I made two questionnaires for gathering enough information, prepared much and worked hard to make this report a complete one. I hope this report will convince you that my knowledge on this subject is complete as required by you. I express by gratitude towards you for assigning me such a nice topic and giving me the opportunity to work on it and submit this report. I stand answerable to any query regarding this report. Thanking you Sincerely yours, Md. Kazim Uddin ID # 2008041003036 15th Batch MBA (ICT) The School of Business Southeast University Dhaka-1213 October 18, 2009

CONTENTS

Code Acknowledgement Executive Summery Introduction Historical background of KCL product list of KCL Objectives of the Study Methodology Limitations of the Study Part-A Comparative market analysis Market Share of different Soap Market Share of KEYA Market Share of Tibet & Camelia Market Share of Meril & Lily Market Share of Aromatic and others Soap Comparative market share of different Soap Part-B Literature Review Findings Table-1, Graph-1 Table-2, Graph-2, Graph-3 Tabel-3, Graph-4, Table- 4 Graph-5, Table-5 Graph-6, Graph-7 Table-6, Graph-8, Table- 7 Table- 8 Tabel-9, Garph-9 Table-10 Table-11, Graph-10, Table-12 Table-13, Table-14, Garph-11

Page 01 02 01 04 06 07 08 09 10 11 12 13 14 15 16 17 18 19 19 20 21 22 23 25 26 27 28 29

Code Part-C Objectives of KCL Future Policies of KCL Goal Setting Financial goals of KCL Crafting Strategy Types of Strategy Business Strategy Functional & Operating Strategy SWOT Analysis Core Competencies of KCL Value Chains of KCL Local & Global Strategy Implementing Tasks Execution of strategy tasks Budgeting Manpower policies Reward & Incentive System Conclusion Suggestions Appendix Bibliography

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Acknowledgement:
At first I would be very pleased to express my image gratitude, Md. Shaheenur Rahman AGM (Marketing) of Keya cosmetics Limited for his close-up guidance in preparing the desired report. My special Thanks go to Md. Mahabub Alam AGM (Marketing) of keya cosmetics Limited and also to Manager (Research) Md. Sarower Hossain who helped and supplied all the information to me with the required materials cordially. I also appreciate and gratitude to all the personnel of marketing and sales department for their cordial cooperation and help.

Executive Summary:
The KEYA Cosmetics Limited is one of the largest cosmetic industries in Bangladesh. It is currently producing international quality cosmetics and toiletry within the normal range of price. Ensuring the high quality, maintaining the reputation, providing reliable products to customer within a convenience price is a complex task for an organization. But KEYA can provide all of these because it has maintains strategic plan for achieving its target performances. It has backward linkage integration and both primary and supportive value chain activities. It also maintains the corporate culture and reward and incentives systems for better performance of its employees. Wholesalers, Traders, retailers, and various shopping malls and chain stores. The questionnaire was about the highest, second highest, third highest and fourth highest selling soaps name, about the quality, current advertisement, packaging and promotion of keya Beauty Soap. For completing Part-B I have also done a survey on the ultimate user of keya super beauty soap and it was about how long they use it? Why they switch of this brand? What kinds of promotion they want? What is their opinion about the quality and price of the soap etc? Both for Part-A and Part-B I select the random sampling method for collecting data, which is a systematic way to gather information from a large number of populations. Both for Part-A Part-B the total samples are hundred in numbers. After completing survey and analysis it is found that in the Soap industry KEYA has only 14.7% market share. 72% respondents said its price is reasonable and only 21% said its quality is excellent. 92% respondents said they get the message from television and they buy number of respondents income level is monthly tk. 5001-15000, whish indicates that the users of KEYA are, lower and lower middle class people.

INTRODUCTION
A successful company is one that customer choose first and customers choose that company which is committed to the four basic pillars-

a) Availability of the product, b) Provide product with convenience and reasonable, c) Provide better and qualitative product, d) Meet the core demand of the consumer by its product,
Keya is stand on the above four pillars and established a strong brand name in the local and foreign market within five years of its Establishment. Before

launching any kinds of products or services top management has to think the attitude, preference, likeability, value, taste, and demographical terms etc, which are vital components of target customer of any segmentation. So, it is quite impossible to continue the responsibility of marketing deeds without knowing the behavior of target market. The rapid growth of market share and increase of sales volume clearly indicate it that Keya is an established brand in the cosmetics industry of the country. For completing my MBA program it is very essential to take the internship program and work on a particular subject and thats why I choose Keya cosmetics limited. I have the curiosity about the market share of keya Beauty Soap in the soap industry and know the behavior of its ultimate user. After completing the survey and its analysis I have learned a lot of which increase my practical knowledge and also will be very helpful on my job field to build up my career.

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Historical Background of The Company

The Keya Cosmetics Limited is one of the largest and high quality cosmetics Company in Bangladesh. It was incorporated in 14th July 1996 as private limited company under the companies act 1994 and registered on joint Stock Company. Subsequently the company has been converted into public limited company by adopting special resolution extra ordinary general meeting of the shareholders held on 20.06.99. The company manufacture and sales cosmetics goods including soaps and chemicals in local and foreign market. Since inception in 1997, KCL has established itself as one of the leading soap manufacture in the country located at jarun, Konabari, Gazipure. Keya Cosmetics Limited came into being in 1996 and commence production in early 1997 as a sister concern of Khaleque group of industries. By dint of sincere effort, courage and guiding the proper strategy of quality and price its products win the hearts and minds of the populace and achieved on upsurge in consumer within a short span of time. The company, as a result, expanded by adding Euro based most sophisticated machinery. Keya Cosmetics occupies a huge position in the cosmetics world of Bangladesh and its heart and mind-pacifying fragrance has spread over the foreign territories as will. Now the project is fulfilling the long cherished desire of the people of our country by supplying international cosmetics and toiletries products within the competitive range of price. Keyas international standard production unit is equipped with modern quality control procedure and microbiological lab with the latest technology and a group of top professional. All of the cosmetics and toiletries are marketed under the brand name of Keya Each stage of production undergoes rigorous testing and quality control process. The finished products are again tested to ensure the desired standard of quality before placing products in the market. The raw materials and active ingredients of products of keya cosmetics Ltd. Are imported reputed manufactures of Malaysia, Indonesia, Italy, France, Germany, Japan, Singapore, England, Switzerland and USA. Producing guaranteed international quality cosmetics and toiletries for quality conscious people of home and abroad is its main motto.

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Keya Cosmetics Limited at a glance Status Year of Establishment Converted into public Limited Company. Subscription opened on Subscription Closed on Commercial production Nature of Business Number of Sales Depots Number of Distributors Number of distributors in Dhaka Manpower Number of shares Public company limited by shares. 14th July, 1996 1997 11 June, 2001 14 June, 2001 Early 1997 Manufacturing and marketing of cosmetics and toiletries. 06 130 11 296 16,000,000

The following are the major competitors of Keya cosmetics limited. 1. Lever Brothers Bangladesh Limited. 2. Kohinoor Chemicals Industries Limited. 3. Aromatic Cosmetics Bangladesh Limited. 4. Square Toiletries Limited. 5. Advanced Chemicals Industries Limited. 6. Lily Cosmetics Limited.

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Product list of Keya Cosmetics Limited.

Name of the Product Keya petroleum Jelly Keya petroleum Jelly Keya Lip-Gel (Purple) Keya Lip-Gel (Red) Keya Talcum Powder Keya Talcum Powder Keya Coconut Oil Keya Coconut Oil Keya Good morning tooth paste Keya Good morning tooth paste (gel) Keya shaving Cream Keya Jasmine Beauty Soap Keya Fairness Beauty Soap Keya Herbal Beauty Soap Keya Skincare Beauty Soap Keya super Lemon Soap Keya Super Lemon Soap Keya Super Lemon Soap Keya super Beauty Soap (Pink) Keya super Beauty Soap (Pink) Keya super Beauty Soap (Pink) Keya super Beauty Soap (Green) Keya super Beauty Soap (Green) Keya super Beauty Soap (Green) Keya super Beauty Soap (Purple) Keya super Beauty Soap (Purple) Keya super Beauty Soap (Purple) Keya super Beauty Soap (White) Keya super Beauty Soap (White) Keya super Beauty Soap (White) Keya Mou-Mini Soap Keya Glycerin Laundry Soap (Yellow) Keya Glycerin Laundry Soap (Green) Keya super Excel Keya Super Jet Keya Super Jet Keya Super Jet Keya Lemon Detergent Keya Lemon Detergent Keya Lemon Detergent Pack size 15 ml 50 ml 10 gm 10 gm 100 gm 50 gm 400 gm 200 gm 70 gm 50 gm 90 gm 90 gm 90 gm 90 gm 90 gm 125 gm 50 gm 90 gm 125 gm 50 gm 90 gm 125 gm 50 gm 90 gm 125 gm 50 gm 90 gm 125 gm 50 gm 40 gm 140 gm 140 gm 500 gm 450 gm 225 gm 110 gm 1000 gm 500 gm 200 gm M.R.P 9.00 18.00 15.00 15.00 32.00 22.00 75.00 44.00 32.00 30.00 14.00 14.00 14.00 14.00 14.00 16.00 7.00 14.00 16.00 7.00 14.00 16.00 7.00 14.00 16.00 7.00 14.00 16.00 7.00 6.00 9.00 9.00 75.00 36.00 19.00 10.50 36.00 19.00 8.00

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Objective of the study:

To furnish a brief picture of Keya Cosmetics Limited. To Know about its present & future policies. To identify its Value chain & Core competences. To know which class of customers mostly uses it. To identify the market share of Keya Super Beauty Soap. To know the distributors, wholesalers, traders, retailers and Customers opinion about the price, package and quality of the Soap. To know the satisfactory level of the Customers.

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METHODOLOGY:
The entire report is divided into three parts. AsPart A- Comparative Market Analysis Part B- Customer Attitude towards Keya Beauty Soap Part C- Strategy Management practices by KCL. For completing part-A I have done a survey on distributors, wholesalers, traders, retailers, and various shopping malls and chain stores. The questionnaire was about the highest, second highest, third highest and fourth highest selling soaps name, about the quality, current advertisement, packaging and promotion of keya Beauty Soap. For completing Part-B I have also done a survey on the ultimate user of keya super beauty soap and it was about how long they use it? Why they switch of this brand? What kinds of promotion they want? What is their opinion about the quality and price of the soap etc? Both for PartA and Part-B I select the random sampling method for collecting data, which is a systematic way to gather information from a large number of populations. Both for Part-A and Part-B the total samples are hundred in numbers. The collection of data is large and it takes a large span of time. For Part-C I collected information from the executives of keya cosmetics limited. I was dependent upon them basically for the Strategy Crafting and executing related information and for the overview of the company. I was also dependent upon the annual report published by the Keya cosmetics limited. Oral Interview was used as the data-collection instrument in this section. After finishing the survey successfully I design a table for finding out various relations with one-question elements to another question element. Then I articulate the result and discuss it according to the questionnaire. I have also added some graph and table. Lastly, I give some recommendation for different problems. Which claim the customers? I dont fell shy to articulate that I am not so much expert to give appropriate recom Mendation but I have tried the best to complete this deed.

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Limitations of the study:

A wholehearted be applied to conduct the research work and to bring a reliable and fruitful result from which a sound knowledge can gathered. In spite of giving the wholehearted effort, there may exist some limitations, which will act as barriers to conduct the research. The limitations of the research are1. The area of research is vast. 2. It is difficult to give a concrete result or opinion based on a vast area within the short time. 3. Necessary data collection becomes hard. 4. It is difficult to give a comprehensive view without sufficient written documents.

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PART-A COMPARATIVE MARKET ANALYSIS

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MARKET SHARE OF DIFFERENT SOAP

On the basis of data that is provided by the distributors, wholesalers, Traders, Retailers of Dhaka-A, and Dhaka-B Jone the market share of different Soap is measured.

Frequency of selling the different soap

Name of the Soap Lux Keya Tibet Camelia Meril Lily Aromatics Others Selling 1st Highest 81 08 05 00 00 00 00 06 Selling 2nd Highest 17 16 14 09 08 07 07 22 Selling 3rd Highest 02 27 18 07 11 02 02 31 Selling 4th Highest 00 13 30 22 14 13 08 00

MARKET SHARE OF LUX:

Grade Point: First Highest Second Highest Third Highest Fourth Highest Total Point = 04 = 03 = 02 = 01 = 10

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Total frequency point Percentage= 100 Grade 1 Highest 2nd Highest 3rd Highest 4th Highest Total
st

10 Number of frequency 81 17 02 00 point 04 03 02 01 Frequency. Point 324 51 04 379 Percentage

= 37.9%

Grade 1 Highest 2nd Highest 3rd Highest 4th Highest Total

st

Number of frequency 08 16 27 13

point 04 03 02 01

Frequency. Point 32 48 54 13 147

Percentage

= 14.7%

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MARKET SHARE OF TIBET:

Grade 1st Highest 2nd Highest rd 3 Highest 4th Highest Total Number of frequency 05 14 18 30 Point 04 03 02 01 Frequency. Point 20 42 36 30 128 =12.8% Percentage

MARKET SHARE OF CAMELIA:

Grade 1st Highest 2nd Highest rd 3 Highest 4th Highest Total

Number of frequency 00 09 07 22

Point 04 03 02 01

Frequency. Point 00 27 14 22 63

Percentage

= 6.3%

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MARKET SHARE OF MERIL:

Grade 1st Highest 2nd Highest rd 3 Highest 4th Highest Total Number of frequency 00 08 11 14 point 04 03 02 01 Frequency. Point 00 24 22 14 60 =6.0% Percentage

MARKET SHARE OF LILY:

Grade 1st Highest 2nd Highest 3rd Highest 4th Highest Total Number of frequency 00 07 02 13 Point 04 03 02 01 Frequency. Point 00 21 04 13 38 =3.8% Percentage

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MARKET SHARE OF AROMATICS:

Grade 1st Highest 2nd Highest 3rd Highest 4t h Highest Total Number of frequency 00 07 02 08 point 04 03 02 01 Frequency. Point 00 21 04 08 33 = 3.3% Percentage

MARKET SHARE OF OTHERS SOAP:

Grade 1st Highest 2nd Highest 3rd Highest 4th Highest Total Number of frequency 06 22 31 00 point 04 03 02 01 Frequency. Point 24 66 62 00 152 = 15.2% Percentage

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PART-B CUSTOMER ATTITUDES TOWARDS KEYA BEAUTY SOAP

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LITERATURE REVIEW: Customer perception and expectation of product quality is increasingly used to forecast company profitability and prospects for improved market share. Although many others quality focused initiatives have often failed enhance company performance and customer perceived service. Improvements have been shown empirically to improve profitability. The shift from and industrial to a customer value paradigm places product quality at the center of company efforts to improved profitability. As virtually all organization compete with one another to some degree on a basis of its product quality, and as the Bangladesh economy has become a predominantly product based and service economy so product quality then becomes significantly important to achieve a genuine and sustainable competitive advantage. Manufacturing companies are compelled by their nature to provide excellent product in order to prosper in increasing competitive domestic and global market places. Meeting rising customer expectations has proved to be one of the most difficult challenges to the manufacturer. Quality is found to measure most articulate through the eyes of the customer and it is not found to improve unless it is regularly measured. Customer are therefore never mistaken when they say that quality is bad because quality is perceived it so, it necessarily so. Companies that actively search for and incorporate the best service methods and process to improve the performance, regardless the sources and ultimately the perceptions of their customers are found to excel in relation to their competitors. In practice companies that exceed customers without impairing profit margins have frequently been found to develop a solid foundation of customer loyalty. Recognition of customers, perception and expectations to improve performance is one of the vital ingredients to achieve the company goal in local and foreign market.

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Cross interrelation between the age distribution and the frequency of using the keya soapAge 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Above 50 Total This is the 1st time Less than 6 months 1 1 1 1 3 2 1 2 1 1 1 1 2 1 2 2 1 1 3 3 2 3 3 3 2 2 4 1 6 1 4 1 5 1 6 to 9 months 1 1 More than 1 Year 2 2 2 Total 04 03 04 01 01 08 01 02 01 03 01 02 07 02 06 01 03 05 04 02 08 05 02 08 01 02 3 5 57 03 10 100

1 1 2

3 9 12

2 22

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11. About current promotion of the keya soap82% respondents are satisfied by current promotion 06% respondents are not satisfied by current promotion 12% respondents have no comment about current promotion.

12. What types of promotion respondents wantTypes of promotion Discounts Free goods Free sample Total Frequency 27 54 19 100 Percentage 27% 54% 19% 100%

Table-8: About promotion From the above table it is observed that the highest numbers of respondents 54% want free goods which indicate that the on going promotion program is appraisable. 13. Why the respondents buy more6% respondents said they buy more if the price is reduced; 81% respondents said they buy more if bigger pack size is offered by current price. 13% respondents said they buy more if extra goods is offered with the product.

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