Beximco Fabrics LTD

Project Report on International Knitwear & Apparels Limited of Beximco Group 1
1. Introduction
Large-scale production of readymade garments (RMG) in organized factories is a relatively
new phenomenon in Bangladesh. Until early sixties, individual tailors made garments as per
specifications provided by individual customers who supplied the fabrics. Since the late
1970s, the RMG industry started developing in Bangladesh primarily as an export-oriented
industry. The sector rapidly attained high importance in terms of employment, foreign
exchange earnings and its contribution to GDP. With the growth of RMG industry, linkage
industries supplying fabrics, yarns, accessories, packaging materials, etc. have also expanded.
In addition, demand for services like transportation, banking, shipping and insurance has
increased. The total indirect employment created by the RMG industry in Bangladesh is
estimated to be some 65000 workers. The hundred percent export-oriented RMG industry
experienced phenomenal growth during the last 15 with the government giving high priority
to the development of RMG industry.
One of the largest garment manufacturers is Beximco Group who has widespread contribution
to the success of RMG sector in Bangladesh. This report is based on one of the nine strategic
business units of Beximco Group which is called International Knitwear & Apparels Ltd., a
complete knit composite unit. I have tried my level best to analyze the entire work process in
terms of departmental coordination of this unit. I have also tried to identify major
shortcomings of various departments as well as potential risk factors which affect overall
marketing of Beximco Fabrics Ltd.
1.1 Origin of the study

As a fresh graduate from the department of MBA of Prime University Bangladesh, I was
required to meet the requirements of Project work as a part of MBA program. Consequently,
my orientation to Beximco Fabrics Ltd. to serve this purpose has given me the chance to make
myself familiar with the organizational culture, behavior and other aspects. In addition, I am
supposed to conduct a research and submit it in the form of a report in accordance with the
company’s interest as well as the academic requisition. Hence, this report is proposed and
assigned by my administrative supervisor Mr. Ferdous Hossain (Factory Manager,
International Knitwear & Apparels Ltd. ) and approved by my academic supervisor Md.
Azizur Rahman (Lecturer, Department of Business Administration, Prime University). In this
regard, I would like to add that this report is completely confidential and prepared with a view
to expose myself to the practical exposure and knowledge.
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1.2 Scope of the study

The scope of this report is limited to the factories of International Knitwear & Apparels Ltd.
situated at Sarabo, Kashimpur, Gazipur and corporate office of Beximco Group. All the tasks
and information have been collected from these two locations. The analyzing and
interpretations of the report have been done with the help of academic supervisor in the
university campus.
1.3 Objective of the study
1.3.1 Broad objective:

The broad objective of this report is to analyze the entire departmental work process of
International Knitwear & Apparels Ltd and addressing related departmental shortcomings in
light of marketing.
1.3.2 Specific objectives:
To address the broad objectives, there should have some specific objectives. These are:
1. To find out how major five departments of International Knitwear & Apparels Ltd.
operates.
2. To analyze critically all aspects of the departmental work procedures.
3. To analyze how all departments coordinate among themselves.
4. To find out major existing and potential controllable and uncontrollable shortcomings
of all departments and their effects on overall marketing of the organization.
5. To find ways to overcome the shortcomings in light of marketing tools and concepts.
6. To represent a brief overview of RMG sector and Beximco Group.
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1.3.3 Objective briefings:

Above stated specific objectives have been covered in different parts as follows:
Specific objectives Chapters Points

Objective 1 C-6: Findings of the Study Point 6.1
Objective 4 C-6: Findings of the Study Point 6.3 & 6.4
Objective 5 C-7: Recommendations Point 7
Objective 6 C-4: Company Overview Point 4.1 & 4.2
1.4 Limitations of the study

Major limitations of this study are outlined below:
1. First of all, Bextex operates its business fully from their factory situated at Sarabo,
Kashimpur, and Gazipur that is very far from where I live. It used to take me at least
three hours on up and down to there from Dhaka.
2. All personnel are always very much busy and work under extreme pressure for their
nature of job and huge volume of the business. Thus they couldn’t give me sufficient
time.
3. Since all their buyers are located outside of the country therefore it was not possible to
measure their image from customers’ point of view.
4. Due to time and cost restriction, the study is concentrated in selected major
departments.
5. The study has been conducted based on observing and interview of the employees.
6. Limited sample size for interview.
2. Methodology
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Methodology is defined as a particular procedure or set of procedures, refers to the rationale

and the philosophical assumptions that underlie a particular study.
However, this study is a ‘Non-intervention Study’, a type in which the researcher just
observes and analyses researchable objects or situations but does not intervene. Thus I have
closely observed all departments’ work procedures and tried to analyze them from my own
point of view and from company’s personnel’s point of view by interviewed them. All
necessary and relevant information and data have been collected thorough following ways:
2.1 Sources of information

To carry out the proposed study, data have been collected from two sources: Primary and
secondary sources.
2.1.1 Primary source: Primary sources include interacting with employees and face-to-face
interviews with the personnel through an open-ended questionnaire.
2.1.2 Secondary source: Secondary sources are company website, brochure, outlets, other
research reports, literatures/magazines and the internet.
2.2 Data collection

Two types of data collection techniques have been used as follows:
2.2.1 Observation Technique: Participant observation approach has been used where I have
been took part in daily work routine of the organization.
2.2.2 Interview Technique: I have followed the ‘Researcher Administered Interview’. Open
ended questionnaire has been used for interview where all respondents used their own words
to describe particular work process and problems.
2.3 Sampling plan of the study

Sample for the interview has been taken as three employees from each department randomly.
Thus total sample size is 15 out of total 110 employees.
Departments Total number of employee Respondents
Marketing 20 3
Merchandising 18 3
Production 23 3
Logistics 24 3
Commercial 25 3
Total: 110 15
3. Industry Overview: Ready-Made Garments (RMG) Sector

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The sector of RMG in Bangladesh can be broadly subdivided into two product categories,
namely woven and knitted garments. Since the industry accounts for approximately 80% of
overall exports of Bangladesh and generates a significant amount of foreign exchange its
activities form a vital part of the national economy. Geographically, most of the garment
enterprises are clustered around the urban areas of Bangladesh.
Both external and internal factors contributed to the phenomenal growth of RMG sector. One
external factor was the application of the GATT-approved Multifibre Arrangement (MFA),
which accelerated international relocation of garment production. Under MFA, large
importers of RMG like USA and Canada imposed quota restrictions, which limited export of
apparels from countries like Hong Kong, South Korea, Singapore, Sri Lanka and India. On the
other hand, application of MFA worked as a blessing for Bangladesh. As a least developed
country, Bangladesh received preferential treatment from the USA and European Union (EU).
Thus by 1985, Bangladesh emerged as a powerful competitor for traditional suppliers in the
US, Canadian and European markets along with the government initiated pragmatic steps to
streamline export-import formalities.
Till the end of 1982, there were only 47 garment manufacturing units. The breakthrough
occurred in 1984-85, when the number of garment factories increased to 587. The number of
RMG factories shot up to around 2,900 in 1999. Bangladesh is now one of the 12 largest
apparel exporters of the world, the sixth largest supplier in the US market and the fifth largest
supplier of T-shirts in the EU market. The industry has grown during the 1990s roughly at the
rate of 22%. In 1998-99, the export earnings of the RMG sector were $5.51 billion, which was
75.67% of the total export earnings of the country. In 2007 total export earnings from RMG is
$ 7.8 billion. Although Bangladesh exports garments to some 30 countries, its exports are
highly concentrated in two major markets, the USA and EU. USA imported 43.24% of total
garments exported from Bangladesh in 1998-99. However, if European Union is considered as
a single market, the US market becomes the second largest. Bangladesh exported 52.38% of
its apparel exports to the EU in 1998-99. In the last five years Bangladesh's exports to the EU
have grown by 174%. The main reason for this phenomenal growth is the almost duty free
(due to GSP privileges) and quota-free access to this market.
Today the contribution of this sector is much higher among 140 export items. Global market
share of top five export items are as, RMG 74.16%, Frozen Foods 4.86%, Jute goods 3.55%,
Leather 2.55% and Raw Jute 54.88%. [Source: Export Promotion Bureau].
Table-1: Macro Contribution of RMG Sector:
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RMG Earnings Amount As Percentage of GDP

(billion US$)
Total RMG Exports 4.5 9.5
Local Value Retention 2.1 4.4
Direct Value-Addition by RMG 1.2 2.4
Source: Export Promotion Bureau
Diagram-1: Product-Wise Contribution to GDP on 2007-8:
3.2 Emergence of Knit-RMG

The growth dynamics of the sector over the last decade evince two clearly discernible phases:
during the initial period it was the woven-RMG which dominated the structure of apparel
exports, whilst in recent years which could be termed as a second phase, it is the knit-RMG
which emerged as no less of an important segment in the RMG sector with its share growing
up steadily and local value retention fast approaching the level of woven-RMG. During the
July-November period of fiscal year 2007-08 woven export fell by 3.17 per cent while
knitwear exports increased by 6.19 per cent.
Table-2: Statement of monthly export’ 09 (Value in thousand Taka)
SL. H.S. Code/ December July-Dec. July-Dec. % of total
No. Heading No. Name of Commodities 2005 2006-2007 2007-2008
37.98%
8. H.S Code Knitwear: 31063216 117095217 163068805
38.07%
9. H.S Code Woven Garments 31931629 124838687 163467864
3.3 Diversification of RMG Sector
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Within the apparels sector, Bangladesh has been able to accomplish product diversification by
extending product line from T-shirts, pajamas, ordinary shirts, shorts, caps, women’s and
children's wear to shirts of complicated designs and jackets; and some brand items have also
emerged where the value was added to both the export earnings and the local value retention.
Table-3: Main apparel items exported from Bangladesh (in Million. US$)
Year Shirt T-Shirt Trousers Jackets Sweater
1999-2000 805.34 225.90 80.56 126.85 -
2000-2001 791.20 232.24 101.23 146.83 -
2001-2002 807.66 366.36 112.02 471.73 70.41
2002-2003 759.57 391.21 230.98 309.21 196.60
2003-2004 961.13 388.50 333.28 467.19 296.29
2004-2005 1043.11 471.88 394.85 393.44 271.7
2005-20006 1021.17 563.58 484.06 439.77 325.07
2006-2007 1073.59 597.42 656.33 573.74 476.87
2007-2008 (December) 666.18 403.98 449.18 296.82 362.23
3.4 Challenges of RMG Sector

Bangladesh’s Ready Made Garments (RMG) sector today operates in a highly competitive
global environment. The phasing out of quota privileges and varied facilities from developed
countries offers new challenges as well as opportunities. The challenges include becoming
more competitive in terms of quality, price, timely delivery, financial capacity, labor
compliance standards, customer base, vertical setup, design and product development
capability, advanced production facilities and long term business relationship. Increasing its
international market share of existing exports, product diversification, efficiency gains
through economies-of-scale and possible gains from vertical integration (e.g. establishment of
composite industries for garment) can be characterized as the key opportunities.
There are several weaknesses of the RMG industry of Bangladesh like low labor productivity,
the industry is vulnerable because as highly dependent on the imported raw materials,
underdeveloped infrastructure, problems in power supply, transportation and communication,
inadequate port facilities and port congestion. For RMG sector, the backward linkages are
weaving the fabric, spinning the yarn, and dyeing, printing and finishing operations.
4. Company Overview: Beximco Group and International Knitwear &

Apparels Ltd.
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4.1 Introduction to Beximco Group

Beximco Group is one of the market leaders in RMG sector of Bangladesh, started in 1991
and since then it has expanded its business from the Far East to the West with Europe,
America and Canada. The Group has nine units with 11456 skilled professionals, 227 set of
Circular Knitting Machine, 1213 set of Sewing Machine and 465 set of Sweater Machine.
Moreover, all the companies of Mondol Group are interwoven in such a way that each
company if necessary will receive active supports in production from other concerned. So,
The Beximco Group never fears the heavy rush of orders from buyers. Beximco Group
always tries to keep confidence of buyers from around the world. The group has a team of
dedicated professional workers (5,560) who are earnestly sincere and careful about their
responsibilities to produce garments products.
4.1.1 Eleven SBUs of Beximco Group:

Four largest units in terms of production combination: Beximco textile division, Beximco denims limited,
Beximco knitting limited, Padma textile limited, Shinepukur ceramics limited, ESS fashion limited, Prestex
limited, Crisent fashion and design limited, International knitwear & apparels limited- (unit-1), (unit-2), & (unit-
3), & Beximco pharmaceuticals limited, Beximco food & beverage limited.
*This report is prepared on Bextex Fabrics Ltd.
4.1.2 Products of Beximco Group:

Basic T-Shirt, Polo Shirt, Tank Top, Ladies Dress, Night Gown, Fleece Shirt, Jogging Suits, Fleece Jacket,
Rugby Shirt and Sweater, Medicine & Foods.
4.1.3 Buyer and Exporting Country of Beximco Group:

Matalan Retail, UK, H&M, Sweden, Carrifour, France, Dikies, Musto/Volvo, Rivermead, Animal, UK, Inditex–
Zara, Spain, Tuscania, Italy, A.B.C.I. SPA, Guess, Phard, Italy, Instyle, SPA, Italy, Pizza Italia, Italy, Tessival,
Italy, OBS. Italy, DHL (Melchers) Germany, Guldenpfennig, Germany, Samar SPA, Italy.
Diagram-2: Graphical representation of major buyer’s positions of Beximco Group
Buyer Positionaccordinglyquantity NewWave
0%
3% 4% GoodMan
4%
8% Joules
29%
1% LionStar
0%
Markstyle
DanysFashion
First textile
ZXY
4.1.4 Table-4: Production Capacity
51% of Beximco Group:
Others
Items/Products Quantity
Finished Fabrics 18000 Kg. per day
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Basic T-Shirt 104, 0000 pieces per month

Polo Shirt 330,000 pieces per month
Sweat shirt (One side brush) 130,000 pieces per month
Yarn died 4000 kg. per day
Brush 4,000 kg. per day
Emarizing 3,000 kg per day
Printing 25,000 pieces per day
Embroidery 30,000 pieces per day
Total Production Capacity 179, 4000 pieces per month
4.1.5 Table-5: Export history of Beximco Group:

Year Amount in USD
1997 3.2 million
1998 3.5 million
1999 4.0 million
2000 7.0 million
2001 13.60 million
2002 10.67 million
2003 14.00 million
2004 30.00 million
2005 35.00 million
2006 45.50 million
2007 50.16 million
2008 58.39 million
Source of all information: Corporate office of Beximco Group
4.1.6 Backward Linkage:

This is a term related to various raw materials required to fulfill a contract and produce an
ordered garment. Major components of BL consist of fabrics, accessories (sewing, thread,
buttons, labels, etc.), packing materials (poly bags, cartoons, pp band, etc.). Most of the time
production has to depend on various suppliers for accessories. In this regard Beximco Group
is successful in establishing own yarn and accessories plants that speeded up its production
process to a larger extent.
4.1.7 ERP System:

Beximco Group has well-established software called ‘Enterprise Resource Plan’(ERP) which
facilitates all departments/SBU required information flow, buyers’ info and shipment data.
Below is the graphical representation of one of the system’s pages.
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Diagram-3: Graphical view of total volume in ERP System
Organogram: Beximco Group
Managing Director
Director Marketing Director Cotton

Concern
Director Commercial
Director Knitting
Director Finance
Director Dyeing
Director Printing
Executive Director Director Montrims

Embroidery & Stock Lot
Director Apollo
4.2 Introduction to Beximco Fabrics

Beximco fabrics is a complete composite unit of Beximco Group which is having all kinds of
major facilities in-house to manufacturing garments. Facilities are knitting, dyeing, cutting,
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sewing, finishing and packaging. It has also an added advantage of having washing, printing
and embroidery processes.
Spinning: This is a facility where yarn is producing, fiber used as raw materials by the
twisting, bonding and interlocking through the machine fiber turn into yarn.
Fiber: In the textile, fiber is the raw material of the yarn. There are two configurations of
fibers: staple fibers and filament fibers. Staple fibers are of a comparatively short length, e.g.
cotton and wool fibers. Filament fiber is a fiber of identified length, e.g. silk which requires
combining with other filaments with some twist to produce a yarn of sufficient bulk.
Fabrics: The fabric is the finished product of fiber which is used for the manufacturing of the
garments. Knitting fabric: It is the construction of the fabric which is based on loop formation.
Organogram: International Knitwear & Apparels Ltd.
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Production
Manager
Miscellanies
> Iron man-19
Cutting Section > Folding man-11
Quality Section > Incharge > Assort Man-10
>Supervisor-2 Floor Incharge > Cutting > Poly Man-06
> Line Chief-4 > HangTagMan-1
> Line Quality- Supervisor-2
(T-Shirt) Finishing Machine Section > SpotWash Man-
6 > Machine
> Supervisor-10 Section > Assistant 07
Cutter-3
> Table > Incharge-1 Machenical-1 > Time Keeper-2
> Machine > Scessior
Quality-15 > Incharge-2 > Electrician-1 > Check-up -1
Operator-146 Cutter Man-19 > Cleaner-10
> Finishing > Input Man-2 > Peon-1
> Helper-180
Quality-19 > Cutting > Reporter-1
> Loader-6
Helper-15 > Finishing -23
4.2.1 Procedure of producing Knitwear:

Following procedure shows how knitting garments shipped out after the confirmation of the
order:
1. Order collection
2. Performa invoice
3. L/C receive
4. Back to back L/C open
5. Fiber Collection
6. Spinning for making yearn as per order sheet
7. Knitting of fabric making as per order sheet
8. Dyeing for fabric color and shrinkage as per order sheet
9. Cutting as per style
10. Sewing as per style
11. Finishing as per customer requirement
12. Packing as per customer requirement
13. Shipment
In each phase of production, samples are to be sent to buyer for checking. More elaboration
has been depicted in ‘Production Department’ part.
4.2.2 Example of estimated cost per unit of knitwear:
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Full chest 112cm+8cm (allowance) = 120cm 150GSM (Gram Square Meter)

Total length 70+5 (allowance) = 75cm
Sleeve length 30.5 (allowance) = 35cm
-----------------------------------------------------------------
Full length (body sleeves) = 110cm
Total fabric required
Consumption= 120cm*110cm*150GSM*12dz*/10000000=*10%/+ =2.62kg
Fabric price= 2.62*$5 (FOB price) = $ 13.10
Collar & cuff= $5
Cutting/Machine charges= $5
Print/embroidery= $ 2.4
Accessories= $3
Commission= $ 1.8
Total= $ 30.3 per dozen
Per unit price of a complete knitwear= $30.3/12 = $2.53
Note: Price varies from item to item.
5. Concept Analysis
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Since the research topic is on explaining work process of International Knitwear & Apparels
Ltd. and also to find out related shortcomings and ways to improve those in light of
marketing, therefore available literature on this subject must be reviewed. In this context,
available studies, from where important information has been collected, are outlined in
‘Bibliography’ part. And different marketing concepts and models suggested for BFL in light
of objectives of this study are discussed in this chapter as per the sequence of suggested
strategies stated in ‘Recommendation Chapter’.
5.1 Marketing
The Chartered Institute of Marketing defines marketing as ‘The management process
responsible for identifying, anticipating and satisfying customer requirements profitability’.
Philip Kotler defines marketing as ‘satisfying needs and wants through an exchange process’.
5.2 Elements of Marketing

Marketing decision variables are those variables under the firm's control that can affect the
level of demand for the firm's products. They are distinguished from environmental and
competitive action variables that are not under the firm's control.
5.2.1 Controllable: The 4 Ps represents elements of marketing strategy that the marketer can
control and are called ‘Marketing Mix’. They depend upon such "givens" as budget; personnel
or human resources; physical resources, such as office equipment, space, etc. But the marketer
can do a lot to influence them.
Table-6: Marketing mix
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Product/Service Individual goods,Includes Product/Service features and benefits that

product lines ormeet consumer wants and needs as identified through
services market research.
Place/(Means of Getting the product toChannels, distribution systems, middlemen,

Distribution) the customer. warehousing, transportation and shipping as identified
in research as meeting consumer expectations.
Price Setting a price thatPrice of the Product/Service, level pricing, introductory

serves the customerpricing, discounts, allowances, geographic terms.
well and maximizesAgain, this is established in relations to consumer
justifiable profits towillingness to pay as identified via market research.
the company.
Promotion Communicating withPublic Relations, Advertising, Personal selling and

the customer,Sales Promotion. If the Product, Price and Place are in
developing sync with what consumers want/need, Promotion
relationships reminds them the needs-satisfying Product/Service is
available.
5.2.2 Uncontrollable: The current economic environment includes elements such as

consumer confidence, unemployment, new technologies that threaten to displace one’s own,
competitors that suddenly appear on the horizon, government regulations thought up by the
marketer’s favorite controlling or anti-business political party, and changing consumer
references. This also includes things like famine, flood or natural disasters. The marketer just
can't control these and they can play havoc with his marketing and promotional plans.
5.3 The International Marketing Mix
When launching a product into foreign markets a company can adopt to use a standardized
marketing mix around the world or an adapted marketing mix in each country.
5.3.1 International Product Strategies Standardization Vs Adaptation: In international

markets, one has to take into consideration consumers’ cultural background, buying habits,
levels of personal disposable income etc in order to deliver a tailored marketing mix program
to suit their needs. The arguments however for standardization suggest that there is no need to
adapt products to local markets. In many circumstances a company will have to adapt their
product and marketing mix strategy to meet local needs and wants that cannot be changed.
5.3.2 International Promotion Strategy: As with international product decisions, an

organization can either adapt or standardize their promotional strategy and message.
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Advertising messages in countries may well have to be adapted because of language barriers
or the current message used in the national market may be offensive to overseas residents.
5.3.3 International Pricing Strategies: Pricing on an international scale is difficult. The

organization needs to consider the costs of transport, any tariffs or import duties that may be
levied on their product(s) when they are sold on the international scale. Exchange rate
fluctuation will also impact profitability and influence pricing decisions. Other factors to
consider include local incomes, general economic situation of the country and their influence
on pricing.
5.3.4 International Distribution Strategies: A standard distribution channel may go from a

manufacturer, wholesaler and retailer to consumer or direct from a manufacturer to a retailer.
In an overseas market there may well be more intermediaries involved.
5.4 Competitor analysis
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Any organization that wishes to succeed and survive in their market needs to analyze their
competitors’ strategies. Competitor analysis is a vital part of the marketing planning process.
Competitor analysis enables an organization to:
1. Collect information on competitors that will directly influence the firms’ strategy.
2. Help the firm anticipate what the actions of their competitors will be, to their entry
within the marketing.
3. To exploit the competitor’s weaknesses so the firm can gain an overall competitive
advantage.
If a firm is to enter a market, some of the information they would need to know about
competitors is listed below.
1. Who are your competitors?
2. What is the size and dominance within the market?
3. Which customer base are they aimed at?
4. What is their positioning within the market?
5. What are their objectives?
6. What are their strengths and weaknesses?
Data of competitors can be acquired as below:

5.4.1 Recorded data: This is data on competitors that already has been published. This data
could be internal to the organization e.g. annual reports or external e.g. newspaper articles or
magazine reviews of competitor products.
5.4.2 Observable data: This is data collected through observation of competitors. This could
include looking at competitors marketing mix strategy, product or service ranges.
5.4.3 Opportunistic data: This data involves the firm talking to those who have or have had
contact with the competitor’s suppliers. These people could give inside information on the
company. The company could also actively recruit people who worked for their competitors,
or head hunt others.
5.5 Relationship marketing

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Relationship marketing is a form of marketing developed from direct response marketing

campaigns conducted in the 1960's and 1980's which emphasizes customer retention and
continual satisfaction rather than individual transactions and per-case customer resolution. It
differs from other forms of marketing in that it targets an audience with more directly suited
information on products or services, which suit retained customer's interests. Relationship
marketing relies upon the communication and acquisition of consumer requirements solely
from existing customers in a mutually beneficial exchange. A key principle of relationship
market is the retention of customers through varying means and practices to ensure repeated
trade from preexisting customers by satisfying requirements above those of competing
companies through a mutually beneficial relationship. Theories suggested that the cost of
acquisition occurs only at the beginning of a relationship, so the longer the relationship, the
lower the amortized cost. Long-term customers tend to be less inclined to switch, and also
tend to be less-price sensitive. This can result in stable unit sales volume. They may also
initiate free word of mouth promotions and referrals.
5.6 Customer Relationship Management (CRM)

CRM consists of three main elements:
1. Identifying, satisfying, retaining and maximizing the value of a firm’s best customers.
2. Wrapping the firm around the customer to ensure that each contact with the customer
is appropriate and based upon extensive knowledge of both the customer’s needs and
profitability.
3. Creating a full picture of the customer.
Major components of the successful implementation of CRM are:
1. A front office that integrates sales, marketing and service functions across all media.
2. A data warehouse that stores customer information and the appropriate analytical tools
with which to analyze that data and learn about customer behavior.
3. Business rules developed from the data analysis to ensure the front office benefits
from the firm’s learning about its customers.
4. Measures from performance that enable customer relationship to continually improve.
5. Integration into the firm’s operational and support systems ensuring the front office’s
promises and delivered.
5.7 Organizational Design for Inter-functional Cooperation

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Organizations are typically designed what Galbraith and Nathan Son have defined as the “
Segmentation of work into roles such as production, finance and marketing and recombining
roles into departments or divisions around functions, products, regions or markets and the
distribution of power across this role structure. To resolve conflict and disputes between areas
of specialty and to assure that board organizational goals will be obtained, coordination of the
various functional activities is normally achieved vertically through the hierarchy of authority
or through committee work and liaison roles.
5.7.1 Designing for Competitive Advantage: Macmillan and Jones have suggested that an
organization can better serve its purpose if it is designed to be competitive rather than
efficient. In pursuing a competitive organizational structure, an organization must address
such important issue as
1. What major task groupings are feasible design alternatives?
2. What linkages are necessary between groupings?
3. What support systems are needed?
Key Linking Mechanisms
1. Task Force: A group is selected from various activities to tackle a specific inter-group
problem. It is automatically disbanded after the problem is solved.
2. Team: A group is selected from various activities in the organization to respond to
recurring problems that cross over group boundaries.
3. Integrating role: An individual is charged with formal responsibilities for coordinating
between two groups.
4. Integrating Department: A department with independent resources and staff whose
task is to ensure coordination between two groupings.
5. Matrix: A person simultaneously reports to and has responsibility for a number of
managers, each in-charge of different activities or resources which must be
coordinated.
5.7.2 Decision Support Systems: Decisions support system (DSS) contributes much towards
integrating personnel in different departments, enabling a firm to use its competitive
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advantages better and to overcome interdepartmental conflict. Decision support system are
computer systems develop to aid managerial decision making by employing state-of-the-art
quantitative models that analyze proposed actions by evaluating how those actions would
affect all primary areas of an organization.
5.4 Product Life cycle

The product life cycle concept suggests that a product passes through four stages of evolution:
Introduction, growth, maturity and decline. As a product evolves and passes through theses
four stages profit is affected and different strategies have to be employed to ensure that the
product is a success within its market.
Diagram-4: PLC
Introduction: As a new product much time will be spent by the organization to create
awareness of it presence amongst its target market.
Growth: If consumers clearly feel that this product will benefit them in some ways and they
accept it, the organization will see a period of rapid sales growth.
Maturity: Sales slow down as the product sales reach peak as it is accepted by most buyers.
Decline: Sales and profits start to decline, the organization may try to change their pricing
strategy to stimulate growth, and the product will either have to be re-modified, or replaced.
6. Findings of the Study
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This chapter covers specific objectives 1 to 4. How all the departments operates individually
to furnish a particular order, what tasks they perform, what are the requirements, how they are
interrelated, what are the requisites they share in a work, what are their major limitations and
their impacts on overall marketing, all have been critically analyzed based on available
information and observation. Also the possible controllable and uncontrollable risks factors
that may affect firm’s survival in the long run have also been depicted in this chapter.
6.1 Departmental work process Beximco Fabrics Ltd.

Montex Fabrics Ltd. is consists of 5 major departments as follow:
1. Departments of Marketing
2. Departments of Merchandising
3. Departments of Production
4. Departments of Logistics
5. Departments of Commercial
Beside above, it has two more departments; one is Finance, which basically serves for entire
nine SBU of Beximco Group. This department performs accounts, HR, admin and other
financial tasks for the entire group. Another department is IT (Information Technology) which
also serves each units of Beximco Group by providing timely data and IT solutions.
However, the business of RMG starts with buyer’s confirmation of an order (for example,
50000 pieces T-shirts) to Beximco Fabrics. Terms of payments and all transactions are settled
by opening LC (letter of credit) by both buyer and seller in their respective origin banks. After
that marketing department of Beximco Fabrics receives order sheet and pass it to
merchandising department to create sample as per buyer’s requirements. Once sample is
approved, production department starts production as per instructions of merchandising
department. Raw materials for production are ordered and purchased by merchandising
department from suppliers against back-to-back L/C against the original/master L/C. Limit of
back-to-back L/C is up to 80% of the total value of original L/C. Once production completes,
logistics department pack the goods and send to buyer nominated forwarder/carrier to ship out
the goods towards destination. Commercial department, in this occasion, prepares and provide
all documentations of entire shipment as per buyer and organizational requirements and
specifications. Once goods sailed, commercial department submits all documents to the L/C
opening bank who again endorse and send those to buyer’s L/C opening bank for payment of
goods being shipped out. Buyer needs to release necessary documents from their bank by
payment of goods and use those documents for releasing goods from the custom/carrier. Once
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buyer paid to his bank, they instructed seller’s bank to pay the seller. Thus the seller gets their
payment through their L/C opening bank.
Above tasks are performed by major five departments of Beximco Fabrics, which are well
established and work in great concert in carrying on each of its orders. From importing raw
materials to production and from packaging to ship out, Beximco Fabrics provides its
customers highest value by ensuring quality production and on time delivery with full security
and compliance. Behind the success of Beximco Fabrics is ensuring customer solution
through commitment towards quality, operational performance and timely delivery.
Now let’s have a look at below departmental work processes and work coordination among all
of them:
6.1.1 Marketing Department

Marketing department of BFL plays the vital role for the entire business. Orders from buyers
came through this department and all sorts of communication also pass through the marketing
people. Thus marketers of Beximco Fabrics must possess high quality and high knowledge of
the entire operational procedures as well as both exporting and importing countries’ laws and
regulations. As involved in International Marketing, BFL has two types of buyers, such as
direct buyers (who place orders directly with Mondol) and buyers through buying agents (who
place orders via buying agents). Beximco Fabrics believes its marketing process should
encompass three aspects as follows:
Handling: The marketer should carefully handle all needs and wants of buyer keeping own
interest intact.
Managing: Managing all requirements of buyers from start to end of an order process.
Execution: An effective execution of the entire order process that requires utmost
coordination of all departments and value chain partners of the company.
MFL marketing policy is to serve its existing buyers with priority as they have long term
relations with the existing buyers (10 years with most of the buyers) and also to seek new
buyers through websites, trade fairs and from other sources. Currently BFL has target US
market which is emerging one.
However, Beximco Fabrics marketers approach a new buyer with a well-equipped
presentation. The marketer needs high skills of communication, clarity, appealed
conversation, leadership, technically and analytically sound and must have knowledge of all
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areas in order to introduce the company in a confident and realistic manner. A BFL marketer
also possesses followings to perform all related marketing tasks:
1. Extensive knowledge of the associated service to be rendered.
2. Sound knowledge of merchandising and procurement of raw materials.
3. Industry knowledge of own region as well as those of the competitive regions.
4. A complete idea of own company’s strengths and weaknesses as well as potential
threats and market opportunities in order to gain more buyers.
5. Technologically and operationally sound and be well-known of the company’s
capacity of producing units. Beximco’s volume handling capacity (two million units)
is also used as an effective marketing tool by its marketers.
6. Outstanding knowledge of product costing and pricing policies.
7. Last but not the least, Beximco’s principle of business is quality and on time delivery
for which its marketers must have commitment. To observe this commitments,
marketers duty not only ends by getting orders but also follow up with other
operational departments to provide buyers confidence and feel happy about Beximco
Group. This practice also adds value to overall corporate image of the organization.
Marketing process at a glance:
Seeking buyer
Price quotation
Price negotiation
Order approval
Order confirmation
Preparing pro-form invoice
LC opening by Comm. Dept.
Order Sheet receive
Order Sheet send to merchandising dept.
Follow-up with production & all other dept.
Keep buyers updated with all info.
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6.1.2 Merchandising Department

Merchandising, as commonly used in marketing, means maximizing merchandise sales using
product selection, product design, product packaging, product pricing, and product display
that stimulates consumers to buy more. This includes disciplines in pricing and discounting,
physical presentation of products and displays, and the decisions about which products should
be presented to which customers at what time.
The person especially involved in garment trade is known as merchandiser. Garment
merchandisers buy raw materials and accessories, producing the garments, maintain required
quality level and export the garments within scheduled time.
1. Checking Purchase Order such as Size Spec, Measurement Sheet.
2. Collection of Consumption such as Fabrics Y.P.D and others from pattern maker or
other as per Size Spec.
3. Preparing Price Quotation.
When an export order is placed to a merchandiser he has the following main functions to
execute the export order perfectly on time.
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Merchandising process at a glance:
Order sheet receive from Mkt. Dept.
Sample development & send to buyer
Sample approved by buyer
Fabric requirement calculation
Accessories requirement calculation
Sourcing of fabrics
Sourcing of accessories
accessories
Possible date of arrival of fabrics and
in the garment factory
Costing
Production planning
Pre-shipment inspection
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Flow chart-1: Follow-up of merchandising department
J=Job
A+J = Admin + Job
Negotiating Price
with
Marketing & Costing
Dept.
Once Sample
Once Price
Approved by the
Place Order approved
Buyer its come to
By Buyer Submit Sample with
Merchandiser
Artwork to
dept. again for
Merchandiser
Bulk Production
A R
A - -
- 1 1
3 Merchandi
ser will Will
Follow Come to R
up with follow the -
R-1,R-2, Sample
Knitting Go for
2
R-3,R- Section
Section Fabric
4,R-5 Bookin
A
- g
R
4 -
Follow Yarn
A 3
up with Bookin Taking
-
Dyeing g Fabric
2
Section Follow up color
A
with shade
- R
Commercia approval
5
by -
Follow l Dept. for
Buying 4
up with L/C
Openning house Go for
Cutting A
Section - Purpose Accessor
6 ies R
Follow up booking -
with PM A 5
for - Go for
Sewing 7 imported
Follow up
Fabrics with accessori
correctly. Logistic es
Dept. for booking
Packing if any
Instruction
R
-
6
n Once sample
And Lastly Products Se ing completed
are Shipped by the d am Last & Final
S le
Logistic Dept. p Review will be
to uy done by the
B Merchandiser
er
again
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Organogram of Merchandising Department
DIRECTOR
Bulding-01
Bulding-02
A.G.M.(Mr.Robiul
Alam) G.M.(Mr.Abul
Kalam Azad)
Knitting (A+J)
Knitting (J)
Dyeing (J) Dyeing (J)
Sewing (A+J)
Sewing (A+J)
Quality (A+J)
Quality (A+J)
Sample (A+J)
Sample (A+J)
Merchandising (A+J) Mershandising (A+J)
Mr.Raza & His Associates

(A+J)
Mr.Mannan & His Associates Mr.Reza & His Associates
Buyer
(A+J) (A+J) Merchandiser
1) Good Man (M.B)
= Mr.Chan Mia + Atiar
2) Mark Style
= Mr.Joy + Naser
Buyer Merchandiser 3) Danish Fashion
1) Good Man (Ladies+Girls) = Mr. Alam + Mr.Shohel = Mr.Joy + Naser
2) Good Man (Todlers) = Mr.Hossain + Mr. Babul. 4) Higlotex
3) Joules = Mr. Saquib = Mr.Joy + Mr.Naser
4)Samples = Mr.Awal
5) TMS
= Mr.Joy + Mr.Naser
6) Sols
= Mr.Joy + Mr.Naser
Buyer Merchandiser 7) Lion Star
1) New Wave(Conway + Alpena+Pittsburge+ Hefa+ Any Fleece Prg.+Any Spl. = Mr.Nazir
Order = Mr.Badsha Mia. 8) Classic Fashion
2) New Wave(Clique+Spinning) = Mr.Abu Syed+ Ms.Jesmin. = TBC
3) First Tex = Mr.Abu Syed+ Ms.Jesmin. 9) Samples
4) DTO = Mr.Hasan = Mr.Shohag
5) Free Zone = Mr.Hasan.
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6.1.3 Production Department

Once the merchandising department issues order sheets and buyer’s all requirements,
production department starts its works. A composite knit unit starts from procurement of yarn,
then the process starts knitting of gray fabrics, dyeing of fabrics, finishing of fabrics for
making of garments and finally of readymade garments. A typical flow process for the
manufacturing of the above products Mix is show below:
Production process at a glance:
Yarn
KNITTING Grey Fabrics Knitting
Inspecting
Measuring
Fabrics Turning
DYEING Scouring & Bleaching
Dyeing
Washing
Fabric unload
Squeezing (Tube)
Dyeing
FINISHING
Compacting
Inspection
Measuring
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Fabric laying
Fabric cutting
Garments sewing
GARMENTS
Cuff/collar/button attaching
Washing
Finishing & packaging
6.1.4 Logistics Department

After the production has been complete as per buyer’s specification, order sheet and other
documents of production quantity are supplied to Logistics departments. Then they prepare
packing list and invoice as per production quantity, arrange cartoons packaging and trucking
of goods and send good to the nominated freight forwarder/carrier with all required
documents and ‘truck challan’. They also provide packing list and invoice of goods being
dispatched from the factory to commercial department for further processing.
Logistics process at a glance:
Order sheet & finished goods received

from production dept.
Arrange cartoon packaging and loading

goods on truck
Prepare p/list & invoice and provide to

Comm. Dept.
Prepare truck challan and dispatch goods

to forwarder.
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6.1.5 Commercial department

As soon as an order is placed, commercial department starts its work. Once the LC (Letter of
Credit) is opened by buyer and order is received by BFL, commercial department received a
copy of that LC from marketing department. Then the L/C has been scrutinized by them. Unit
price, quantity, clause, expiration terms and conditions, payment clause, bill of lading clauses,
amendment clauses of yarn and accessories and other terms and conditions based on
negotiation between buyer and seller must be examined very carefully by this department. At
the one end while the production is running, commercial department also is involved in
arranging related documentation on the other end for the shipment of goods. This department
has to communicate with other departments as well as suppliers, shipping lines, freight
forwarders, clearing and forwarding agents and several other parties including buyers for
preparing and dispatching accurate documents as per L/C. Beside this, this department also
has to prepare several more documents which have been stated in ‘Appendices Part’.
Below are the two most important documents commercial department deals with:
Letter of Credit (LC): Originally, a Letter of Credit (LC) was quite literally that - a letter
addressed by the buyer's bank to the seller's bank stating that they could vouch for their good
customer, the buyer, and that they would pay the seller in case of the buyer's default. They
were used then, as they are now, for any transaction wherein one or more parties to the
transaction require the comfort zone of guarantee of payment by a reputable bank. The
sequence of information on an LC and the trade terms used are set forth in the standards
established by International Chamber of Commerce (ICC).
Back-To-Back Letters of Credit: Back-to-Back Letters of Credit are used in international
and domestic trade. The parties to a Back-to-Back Letter of Credit are:
• The buyer and his bank as the issuer of the original LETTER OF CREDIT,
• The seller/manufacturer and his bank,
• The manufacturer's subcontractor and his bank.
This type of credit transaction is used when a seller/manufacturer has to purchase a
component or farm out part of the manufacture of a product, but may not have the cash flow
to do so. In this case, the seller/manufacturer applies to his bank for a letter of credit,
identical to the original Letter of Credit he received from the Buyer, except that it is for a
lesser value. This second letter of credit, called a Back-to-Back, is sent to the subcontractor's
bank and therefore the subcontractor knows that he will be paid and can proceed with his part
of the transaction - supplying components or service to the manufacturer.
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6.2 Departmental coordination of Beximco Fabrics Ltd.

All departments of Beximco Fabrics Ltd. must work in concert for the nature of the business.
Marketing department passes the order received to merchandising department and also follow
up with every departments in order to update buyers. At the same time they pass the L/C to
commercial department for necessary amendments. Merchandising department once process
the order and related supply negotiation as per buyer’s requirements pass all specifications to
production departments and keep a follow up for smooth production within the set time frame.
Also they coordinate with marketing and commercial departments for any changes,
amendments and shipment process. Once the production is complete production department
coordinates with logistics department for smooth dispatching of goods as per specification and
commercial department as well for preparation of required documents on time. Logistics and
commercial departments also work side by side for smooth flow of goods and documents until
payment received from buyer. At the end of the day all the departments are required to have
great coordination among them to keep the commitment of the company (quality,
performance and timely delivery) to satisfy the buyers. A flow chart has been illustrated
below to have a graphical understanding of departmental work coordination of Bextex Fabrics
Ltd.
Flow-chart-2: Departmental work relation
Merchandising
Marketing
Department
Department Order sheet
LC sent Production instruction
Commercial Production
Department Department
Provide docs Provide finished goods
Logistics
Department
Finished goods for packaging and dispatching from factory
Support
Finance
IT Department
Department
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6.3 Departmental shortcomings

Like any other organizations Bextex is also not free from risks and shortcomings. Major
factors affect its day to day operational and marketing processes have been categorized into
two groups- controllable factors (which BFL can rectify) and uncontrollable (which cannot be
solved but to be adjusted with). Below are the department-wise shortcomings:
6.3.1 Marketing department:

Size & position of the buyer in home country (Controllable): A major decision-making
element of MFL’s marketing is the size and position of the buyer in international arena. Since
the profit margin in RMG sector is minimum (2-3%) and heavily depends on volume thus this
decision is crucial. A marketer needs continuous study on buyer’s nature of business. In this
regard BFL has good long term relationship with their buyers and have sufficient competitive
advantages to attract new customers.
Fall in end-user demand (Controllable): Since apparel is a non-essential product in general,
thus end-user demand may fall because of unexpected economical change or newly imposed
high govt. tax or devaluation of money in importing country. There are many other reasons
for which people cut-down their budget on clothing in order to increase budget in other
accounts. A marketer must understand and anticipate such factor in marketing. In this regard
Beximco usually seek buyers who holds high ticket items that have high brand value and
demand for these items usually doesn’t fall at times. Thus BFL’s strategy is to gain limited
large buyers who will generate high revenue for them. On the other hand BFL is very much
careful in selecting small buyers who hold low ticket items because fall in end-user demand
for these products can drastically drop the sales.
Large volume (Controllable): Though Beximco has capacity to produce 2 million units per
month; it is reluctant to offer this full capacity to a single buyer. This is because in this
process buyer’s bargaining power increases to a greater extent and if the order is canceled for
any reason, the impact is immense. Sometimes timely supply also hampered for large volume
production. In this context BFL used to divide their capacity and offer to a number of buyers
in relatively small quantity in a particular period of time in order to reduce potential risk.
Overbooking & repeat orders in pick season (Controllable): Another major challenge a
marketer has to face in apparel marketing is the overbooking and repeat orders in the pick
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season. Beximco’s marketer has to deal this situation very carefully and must judge his
capacity and resources before processing an order. Sudden repeat orders always come in pick
season. Many marketers take these orders irrespective of knowing own capacity and rush
situation in production during pick season and thus lead to disaster. Often they go for sub-
contacts with other factories to supply these orders in a very rush condition and thus fail to
ensure optimum quality and maintain short lead time. In such a situation Beximco’s marketers
always coordinate with production departments before taking these repeat orders. This
facilitates them to work in concert and increase high professionalism in the business. Another
strategy to face these problems is their regular buffer stock.
Change in existing laws & regulations in both export & import countries
(Uncontrollable): This is a factor a company must comply with. Since MFL is one of the
market leaders, thus they can easily comply with any rules imposed by govt. In such context
MFL has high marketing capacity to attract new customers.
6.3.2 Merchandising department:

Since this department is involved in processing buyer’s requirements thus any change in
buyer’s specification may affect existing work process. Also since this department also
involved in raw materials purchasing, thus delay from suppliers or change in supplier decision
may affect the business comprehensively. These risks are controllable and may solve through
strong negotiating and management capacities.
6.3.3 Production department:

Power and gas (Uncontrollable): These problems hamper production and reduce
productivity to greater extent. This is an uncontrollable factor and requires govt. intervention.
Labor skill and migration (Controllable): Most of the labors of Bangladesh have lack of
education and proper skill. This controllable factor can be overcome by better training. One
biggest problem in RMG sector is labor migration. Most of the labors used to switch after
they get training. This controllable factor may also rectified by proper intensive and effective
HR policies. Govt. also needs to take initiative as labor wages are too poor in this sector in
Bangladesh. Labor unrest can also be a threat which still not affects MFL because of their
strong administrative and organizational structure.
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Accidents (Controllable to some extent): A garment factory consists of heavy machineries.

Any accident may occur anytime and loss of life cannot be repaired. However proper work
place protection and security and compliance measures must be undertook in this regard.
6.3.4 Logistics department:

Lead time (Controllable): Lead time—the turnaround time from receipt of an order to the
delivery of the product—has emerged as an important issue in the global market and retailers
value those manufacturers who can respond quickly to orders. For Bangladesh lead time was
120 to 130 days during 90s. This controllable factor, however, reduced to 30 to 60 days
because of improved manufacturing and transportation technologies and govt. support to
RMG sector. Still this lead time can be affected by problems in any departments and the
impact can be colossal.
Infrastructure support (Uncontrollable): Infrastructure support of Bangladesh is very poor
and disorganized which require govt. initiative.
Environmental & weather (Uncontrollable): Environmental changes and bad weather
condition in sea might affect a shipment that causes loss of huge amount of money. This
uncontrollable element is however addressed to some extent by insurance coverage.
Political unrest (Uncontrollable): Political unrest of the country causes significant loss in
RMG sector and needs a favorable political environment to survive.
6.3.5 Commercial department:

Contract amendment (Controllable): Since commercial departments used to serve
documentation need for the organization, thus any change or amendment in contract might
affect current shipment process. On time delivery sometime may also hampered due to this
reason. However, highly skilled workforce and systematic work process can quickly adjust
with such difficulties.
Other parties (Controllable): Commercial department has to work with some external
parties, e.g., freight forwarders (nominated by buyer who handles their shipments), carrier
(shipping/containers lines), and C&F agent (clearing and forwarding agent who performs
custom formalities for manufacturer). Sometime these channels become vital and non-
cooperation from them shall cause delay for the shipment. In order to avoid such risks, the
department should maintain good relation with them, provide timely data when they need and
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comply with their work processes. To be familiar with their work process is also helpful in
smoothening entire supply chain.
6.4 Potential risks factors that might affect Beximco Fabrics Ltd.
Below are some summarization of some factors or risks that are found through analyzing
above shortcomings, company’s strengths and weaknesses, observations and employee
interview. These potential risks can harm the organization’s business and marketing
performance in international areas. However the factors are divided into controllable and
uncontrollable headings in below chart. Different marketing tools and strategies have been
suggested in ‘Recommendation Chapter’ in order to overcome the potential controllable risk
factors. The potential uncontrollable elements however are out of control of the organization.
Therefore Montex Fabrics Ltd. must be organizationally, operationally, financially and
technologically sound enough to face these problems anytime.
Table-7: Potential risks of MFL

Diversifiable Risk Market Risk
Demand fluctuation of products Change in govt. regulations
Change in buyers’ taste and preference Change in international trade policies
Fail in order fulfillment (overbooking) Infrastructure problem
Changing trends in garment fashion Political unrest
Price of raw materials increase Terrorism (if alarming)
Threat of competitor Utility problems
Bargaining power of buyer and supplier Change in global environment
Labor unrest Global recession
New technologies and operation methods Inflation in economy
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SWOT Analysis for Beximco Fabrics Ltd.
SWOT analysis is a marketing audit that considers an organization's strengths, weaknesses,

opportunities and threats. It is the first stage of planning and helps marketers to focus on key
issues. Strengths and weaknesses are internal factors. Opportunities and threats are external
factors. Beximco Fabrics Ltd. SWOT analysis has been conducted based on information
collected through interviewing BFL personnel.
Strengths:
1. One of the largest companies

2. Brand image and reputation
3. Mass production capacity and technology
4. 15 tons per day dyeing capacity
5. 40 tons gray fabric production per day
6. Wins third prize as largest exporter
7. Maintain all compliance issues
8. On time payment to supplier
9. On time delivery
10. High quality
11. Large volume handling capacity
12. Well established backward linkage
13. Well marketing and administrative skills
14. Well equipped production process
15. Highly skilled workforce
16. Accessibility to raw materials
17. Good relation with buyers
18. Financial stability
19. Entrepreneurial orientation
20. Technical qualifications TQM environment
21. Establishing Effluents Treatment Plan
22. High growth rate
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Weaknesses:
1. Limited space in terms of production volume

2. Labor migration
3. Factory location
Opportunities:
1. USA market is growing

2. GSP facility
3. RMG Sector is getting more mature
4. China no more a competitive threat in terms of currency falls to 14% and wages
increased 30%
5. Expected govt. subsidy to remain (currently 5%) as BFL uses its own produced yarn
Threats:
1. Vietnam is rising as new competitor

2. Expecting political situation to be worse in coming days
3. Other manufacturers are growing in terms of production and technology
4. IF GSP facility is withdrawn, it would be a vital threat
5. Increased costs and economic inflation
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7. Recommendations
This chapter covers specific objective 5 of this study. In this chapter I have tried to
recommend some do’s for Bextex Fabric Ltd. based on the findings of this study in order to
overcome existing shortcomings, potential risks and to become successful in future in the
industry. All the tools and strategies recommended are based on different marketing concepts
and models that have been described in ‘Concept Analysis’ chapter.
In light of major existing bottlenecks and potential risks discussed in ‘Findings Chapter’, BFL
as involved in international business, should reshuffle their international marketing mix
strategies tailored to face future possibility of reduce buyers’ demands, tastes, changing
global fashion trends, fail to deliver access orders at the quality and quantity level and price
increase of raw materials. BFL to face these challenges should go for research and
development activities to find more opportunities and scopes for new market entry, adopt new
technologies and production methods quickly and so on. They can use below marketing mix
strategies in this regard:
1. Product strategy: Since apparel fashion trend varies from country to country, thus BFL
should adopt their products and make those customized in order to serve different
local markets. At the growth stage BFL should go for product extension or design
extension of existing product for repeat orders. Product features, design, packaging,
distributing must associate value added service in order to meet target market
specifications.
2. Pricing strategy: Their international pricing strategy should also be undertaken in
accordance with company objectives, position planning, global competition, costs and
customer needs and willingness to pay.
3. Distribution strategy: BFL should also know more about the power of intermediaries
that are vital for their international distribution strategy. Adapting modern supply
chain management and partnership with main value chain players can help them build
an effective distribution system which is a prime demand of buyer to get their goods
on time.
4. Promotional strategy: As for promotion in international market, BFL should attend
more trade fairs and arrange the same for their buyers to be more familiar with them.
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They should also go for their image promotional campaign by sponsorship or event
management internationally. BFL can also go for different sales promotional activities
like providing incentives, premiums and specialty advertising by giving buyers
calendars, ballpoint pens, cigarette lighters, baseball caps, etc.
Competitor is a vital threat for any business and especially for international marketer in this
rapid growing globalization era. BFL should go for competitor analysis in order to gain
competitors’ insights, anticipating own actions in return to their moves and to gain advantage
over competition. They should keep below points in mind when go for competitor analysis:
• Recognizing competitors
• Competitors’ size, position and dominance in the market
• Which area of customer relation are they targeting and what their objectives are
• Their strengths and weaknesses
Important data of competitors can be collected from their websites, annual reports, observing
them, news and articles, from customers, visiting trade shows, visit them as a customer, from
their suppliers, recruiting competitors’ employees, using marketing espionage, etc.
Beside competitors, BFL should also beware of new strong entrants, bargaining powers of
buyers and suppliers and emergence of substitute products. In order to face any new strong
market entrant, BFL should concentrate to be financially strong, introduce economies of scale
in production, strong distribution channels, gaining cost advantage and have rich product lines
and variety to serve different market segments. In order to handle buyers’ bargaining power,
BFL should follow its group corporate policy of order receiving, for instance, production
capacity should be distributed and offered a number of buyers so that one single buyer cannot
be a threat for entire business. As BFL has its own yarn and accessories plants, thus it has low
risk from suppliers’ bargaining power. Diversifying product line and variety and target
different segments is the best way to face emergence of substitute products.
Besides above, since BFL is involved in industrial business as much as in international
business, long term relationship with the existing customers as well as attracting and retaining
new customers is of utmost importance. In order to create a strong customer relationship base,
BFL should calculate its customer retention rate and thus find out major customers and serve
them in a more systematic and effective manner. In this regard, BFL may use modern
methods of ‘Customer Relationship Management’ as stated in ‘Concept Analysis’ part in
order to identify, satisfy, retain and maximize the value of a their best buyers.
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In order to comply with technological and operational improvements and mitigate labor
migration problem in new competitive age, BFL can utilize modern ‘Organizational Design
for Inter-functional Cooperation’ (described in ‘Concept Analysis Part’) from industrial point
of view. This will also help them in developing new structural departmental coordination and
to be more competitive to face any potential challenges in future. Also they can be more
organized and operationally sound to adjust with the potential ‘uncontrollable factors’ that
might cause them problems in future.
Using ‘Organizational Design for Inter-functional Cooperation’ BFL can coordinate all the
departments in such a way to individually serve customers’ entire needs. Also they create a
‘Team’ consisting people from each department and trained them to solve departmental
disputes to get competitive advantage. In order to address inter-departmental conflict they can
also introduce ‘Decision Support System’.
Based on BFL business activities, we can conclude that their position is in ‘Growth Stage’ in
‘Product Life Cycle’. In this regard I would like to suggest them to emphasize on its existing
customers and new customers at the same time. At this stage, BFL should go for below
strategies:
1. BFL should penetrate different markets by offering competitive price.
2. They should concentrate on rapidly maximizing sales, profit and market share.
3. In order to be cost effective average cost per customer must be calculated and
promotional budget should be reduced to take advantage of demand.
4. They should go for product extension and provide more value added services like
guarantee, warranty, etc.
5. They should build up a strong intensive distribution strategy in order to reach
geographically dispersed customers.
At this stage, MFL can also utilize ‘Market Expansion strategies’ that emphasizes on below
two tasks:
1. Try to grow Sales with existing products primarily by getting new market segments
(buyers of different segments) to buy, and/or
2. Try to grow Sales with new products by introducing new models containing different
sets of features in order to attract new buyers as well as encourage repeat ordering by
existing buyers.
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8. Concluding Remarks
Despite of all shortcomings stated above, Beximco Fabrics Ltd. is very much successful over
the years in gaining customers’ confidence. Their continuous efforts of keeping the
commitment in terms of high quality, performance and timely delivery took them at the pick
of the industry. The way of their business development, growth rate, increased orders and
profit and future expansion plan will continue to help them be more competitive in this sector
as well as contribute to the country’s national revenue increase to a larger extent. However,
Bextex as well as this sector must need govt. initiative in establishment of composite mills or
individual units of weaving, spinning and processing that will reduce lead time and increase
value addition and employment, in addition to improving the cost advantages.
If the govt. and the BGMEA take good care of this sector and implement the suggested
measures for the purpose, experts expect the country will be able to attain the status of a major
exporter to the extent of $25 billion a year in the next 20 years.
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Appendix-1
Questionnaire
Beximco Fabrics Ltd. Questionnaire for

interview
Nayapara, Kashimpur, Gazipur
Tel: 9297894-6
1. How you get information of a buyer?

2. How you place a order proposal to the buyer
3. Why and when buyer used to switch?
4. Is global fashion trend has any impact on your business?
5. What are the internal and external factors affect your business?
6. Is there any price and promotion related issues that might affect the business?
7. What are your respective department’s existing and potential limitations?
8. What are the factors affect the business severely that are out of your control?
9. What are the factors buyers consider before placing orders?
10. What are your responses against buyer’s requirements?
11. Do you maintain any specific database for your customers?
12. What is ‘backward linkages?
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Appendix-2
Important Production Terms
Yarn: Yarn is the main raw materials for knit fabrics; knitting yarn is of special type different
from weaving yarn. In general yarn of 20, 24,26,30,32 counts are used in the knit fabrics.
Gray Fabrics Knitting: After receiving the yarn in carton or gunny bag in cone from, it is
measure and put in the creels of the Circular Knitting Machines. The machines continuous
knits, whenever a cone is empty being replaced by a new one. Fabrics come out in rolled in
Grey form. Rolls are stacked as per the sizes and GSM for delivery to dyeing section.
Inspecting: After the knitted fabrics are produced, it is inspected in running condition while
passing over a table of the inspection machine. Inspection in this stage done by one Gray
Fabrics. Collar and Cuff are inspected piece by piece.
Measuring: Before Delivery Fabrics for dyeing are inspected and measured in scales.
Scouring: Scouring is the clearing of textile materials of natural facts, waxes, dirt’s, oils,
grease etc, by treating with alkalis. The bleaching process if essential for a good white effect
and may be carried out with peroxide a bleaching power solution. After scouring and
bleaching, the Fabric becomes hydrophilic.
Dyeing: After scouring /bleaching, the knitted fabrics will be dyed in machine using Suitable
dyes and chemicals, for dyeing of knitted goods specials treatment is necessary. Temperature
control in every stages of dyeing is very important.
Washing: After scouring, bleaching and dyeing necessary washing will be carried out.
Folding and Rolling: A folding and rolling machine to facilitate easy and convenient
transportation of the goods will do folding and/or rolling baling of the finished goods.
Fabrics Lying: The finished fabric is delivered to the Garment section, for final production of
T-shirts polo, Sportswear, Nightwear and dresses.
Fabrics Cutting: Finished fabrics in roll Orin plaited form dyed in a long table. The fabrics
of same dial and weight lay in the table five/six layer. Pattern matter places market on the
fabrics. Fabrics cut by brand knit or by any sophisticated cutter following the markers. So,
after cutting the desired cut fabrics are ready for sewing.
Sewing: This is the main functional stage of a garment plant. All the fabric’s parts according
to the desired pattern/maker are stitched together. If cuff/collar required, they are attached
with the body. Different types of dresses has different requirement of trainings.
Tread Cutting: Finished garments it its ultimate shapes/ sizes were ready, now requires being
cleaned pass inspection. Before inspection the threads remaining in the garment cut off.
Inspection: Before folding and poly packing the garments in finished form are inspected by
the in-house quality controllers and cartooning.
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Poly Packing: After passing inspection the finished garments are poly packed singly as per
size and color and cartooned for final delivery. Cartoons contain the name of the buyer, pack
size, Color and destiny, etc. Finally the cartoons are ready for delivery.
Appendix-3
Important Commercial Terms
GSP Certificate: Generalized System of Preferences (GSP) is a preferential tariff system
extended by developed countries (also known as preference giving countries or donor
countries) to developing countries (also known as preference receiving countries or
beneficiary countries). It involves reduced MFN Tariffs or duty-free entry of eligible products
exported by beneficiary countries to the markets of donor countries.
Certificate of origin: A Certificate of Origin (often abbreviated to CO) is a document used in
international trade. It traditionally states from what country the shipped goods originate. The
CO is primarily important for classifying the goods in the customs regulations of the
importing country, thus defining how much duty shall be paid. But it may also be important
for import quota purposes and for statistical purposes, and especially for food shipments, it
may also be important for health regulations.
Pro-forma Invoice (PI): A PI is similar to a sales contract. It is issued by the seller addressed
the buyer. Once pieces are agreed upon, the seller issues PI to the buyer where the unit price
of the items as well as other sales conditions are stipulated. This PI is then submitted by the
buyer to his bank and LC is opened in favor of the seller.
Commercial Invoice: Commercial goods moving internationally must be accompanied by
documentation reflecting the commercial transaction. This information is usually contained on
the commercial invoice and will form part of the package presented to Customs at the time
goods are released, or provided at the time of final accounting. In respect to export shipments,
a commercial invoice is the basic document on which the importer (buyer) pays the exporter
(seller).
Packing list: This contains the list of goods packed into the cartoons which is required for
shipment of goods and by buyer to offload the goods from container.
BTMA Certificate: Certificate issued by Bangladesh Textile Mills Association for export
purpose.
UD: This means ‘Utilization Declaration’ for fabric consumption which is issued by
BGMEA.
Bill of Lading: The Bill of Lading (B/L) is evidence of the delivery of goods to the carrier as
well as constituting a contract of carriage between the shipper and the ocean freight carrier. It
is, when fully executed, constitutes the actual deed to the goods being shipped and is an
official "document of title". Essentially, this means that the Ocean Bill of Lading can be used
to meet banking requirements in issuing letters of credit as the bank may use this document to
retain control over the merchandise.
Beside above documents commercial department also has to have clear concept of different
types of shipment process like below:
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FOB: Under the Incoterms standard, FOB stands for "Free On Board". Indicating "FOB"
means that the seller pays for transportation of the goods to the port of shipment, plus loading
costs. The buyer pays freight, insurance, unloading costs and transportation from the arrival
port to the final destination. The passing of risks occurs when the goods pass the ship's rail at
the port of shipment. When the Incoterms version of the FOB term is agreed upon, the parties
to the contract should expressly specify it, including the version of the Incoterms to be
applied; e.g., "FOB New York (Incoterms 2000)".
C&F: C&F stands for Cost and Freight, is a contract between buyer and seller agreed to pay
shipment cost by seller from origin to buyer’s door. Thus as per L/C negotiation, a particular
order can be on FOB basis or C&F basis.
All sample documents have been illustrated in appendices part.
Note: Commercial documents are enclosed.
Bibliography and References
1. Malhotra, N., 2000, Marketing Research-An Applied Orientation, (4th Ed.). Upper
Saddle River, N.J: Prentice Hall.
2. Mc Daniel, Carl, Dr., Contemporary Marketing Research, (4th Ed.). South Western
College Publishing.
3. Creswell, J. (1998). Qualitative inquiry and research design: Choosing among five
traditions. Thousand Oaks, California: Sage Publications.
4. Abramson JH (1990, 4th Ed.) Survey Methods in Community Medicine. London:
Churchill- Livingstone.
5. Kotler, P., Marketing Management, (11th Ed.). Upper Saddle River, N.J: Prentice
Hall.
6. Robert R. Reeder Edward G. Brierty, Betty H. Reeder, Industrial Marketing, Analysis,
Planning and Control. Upper Saddle River, N.J: Prentice Hall.
7. J.R. Galbraith and D.A. Nathanson, Strategic Implementation: The role of structure
and process (St. Paul, Minn.: West Publishing Co., 1978).
8. Berry, Leonard (1983). Relationship Marketing. American Marketing Association,
Chicago, 146.
9. Levitt, T. (1983) "After the sale is over", Harvard Business Review, Sept-Oct, 1983
10. Don Peppers and Martha Rogers, Managing Customer Relationships (Hobroken, NJ:
Wiley, 2004).
11. Simon Knox, Stan Maklan, Adrian Payne, Joe Peppard and Lynette Ryals, Customer
Relationship Management: Perspectivs from the Marketplace, Oxford: Butterworth-
Heinemann, 2003.
12. The Marketing Mix Revisited: Towards the 21st Century Marketing: Journal of
Marketing Management 2006, 22, 407-438
13. FY 1998 Country Commercial Guide: Bangladesh Report prepared by US Embassy
Dhaka, released August 1997.
14. A competitive scenario of industries in Bangladesh: A study-conducted by Institute of
Strategic Studies.
15. Frederick H. Abernathy, Anthony Volpe, and David Weil, The Apparel and Textile
Industries after 2005: Prospects and Choices. Harvard Center for Textile and Apparel
Research.
16. Kunz, Grace (2005). Merchandising: Theory, Principles, And Practice. Fairchild
Books. ISBN 1563673533.
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17. Debapriya Bhattacharya, Mustafizur Rahman, Ananya Raihan, Contribution of the

RMG Sector to the Bangladesh Economy. A study by Centre for Policy Dialogue.
18. Data International, STATUS, CONSTRAINTS, AND DEMAND FOR SKILL
DEVELOPMENT IN THE RMG SECTOR (31 OCTOBER, 2005). German Technical
Cooperation (GTZ).
Websites:
www.google.com
www.bgmea.com
www.quickmba.com
www.learnmarketing.net
Prime University

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Project Report on International Knitwear & Apparels Limited of Beximco Group 1

1.1 Origin of the study

1.2 Scope of the study

1.3 Objective of the study

1.3.1 Broad objective:

1.3.3 Objective briefings:

Specific objectives Chapters Points

1.4 Limitations of the study

Methodology is defined as a particular procedure or set of procedures, refers to the rationale

2.1 Sources of information

2.2 Data collection

2.3 Sampling plan of the study

3. Industry Overview: Ready-Made Garments (RMG) Sector

RMG Earnings Amount As Percentage of GDP

Diagram-1: Product-Wise Contribution to GDP on 2007-8:

Source: Export Promotion Bureau

3.2 Emergence of Knit-RMG

3.3 Diversification of RMG Sector

3.4 Challenges of RMG Sector

4. Company Overview: Beximco Group and International Knitwear &

4.1 Introduction to Beximco Group

4.1.1 Eleven SBUs of Beximco Group:

*This report is prepared on Bextex Fabrics Ltd.

4.1.2 Products of Beximco Group:

4.1.3 Buyer and Exporting Country of Beximco Group:

Basic T-Shirt 104, 0000 pieces per month

4.1.5 Table-5: Export history of Beximco Group:

4.1.6 Backward Linkage:

4.1.7 ERP System:

Diagram-3: Graphical view of total volume in ERP System

Organogram: Beximco Group

Director Marketing Director Cotton

Executive Director Director Montrims

4.2 Introduction to Beximco Fabrics

and embroidery processes.

Organogram: International Knitwear & Apparels Ltd.

4.2.1 Procedure of producing Knitwear:

Full chest 112cm+8cm (allowance) = 120cm 150GSM (Gram Square Meter)

5.2 Elements of Marketing

Table-6: Marketing mix

Product/Service Individual goods,Includes Product/Service features and benefits that

Place/(Means of Getting the product toChannels, distribution systems, middlemen,

Price Setting a price thatPrice of the Product/Service, level pricing, introductory

Promotion Communicating withPublic Relations, Advertising, Personal selling and

5.2.2 Uncontrollable: The current economic environment includes elements such as

5.3.1 International Product Strategies Standardization Vs Adaptation: In international

5.3.2 International Promotion Strategy: As with international product decisions, an

5.3.3 International Pricing Strategies: Pricing on an international scale is difficult. The

5.3.4 International Distribution Strategies: A standard distribution channel may go from a

5.4 Competitor analysis

Data of competitors can be acquired as below:

5.5 Relationship marketing

Relationship marketing is a form of marketing developed from direct response marketing

5.6 Customer Relationship Management (CRM)

5.7 Organizational Design for Inter-functional Cooperation

5.4 Product Life cycle

6. Findings of the Study

6.1 Departmental work process Beximco Fabrics Ltd.

6.1.1 Marketing Department