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Executive summary:

Home appliance market is the world’s largest consumer goods market and Butterfly Marketing Ltd. is
one of the major organizations in home appliance in Bangladesh Most of the companies are moving
globally to sound growth rate. Butterfly is not exception from this criterion. The brand LG one of the
major international brands possessed by Butterfly is assisting to get moving globally. The basic intent of
the report is to present the performance LG micro wave oven of Butterfly and to enhance the value of
brand and product in a very complex competitive environment. The report discusses the competitive
market analysis of LG microwave oven. Consumer perception of a number of brand alternative, nature
of Distribution channel and their activities, advertising and promotional activities, market share and
growth. The outcomes of the analysis are shown in brief. Rivalry is likely to increase; its Butterfly’s
strategic move to global market has been successful. The life cycle stages of the products of Butterfly are
mostly in mature stage. All the big companies in the market are acquiring small companies and as the
product range-is-quite large they enjoy Economies of Scale. Customers are very brand loyal. Some rivals
have good distribution channels. As buyers’ preferences are changing it is inducing the industry to
change. An intense competition is going on in the market of home appliance between the brand and
non-brand product. The increasing demand for non-brand product is due to lower price rather than
others. Customers are not very well-known about LG/Butterfly product like due to the drawback of
advertisement. Advertisement is another key issue of sales growth through which Konka. Nova and
some other non-brand are doing very well in sales. Konka and Walton are most demanding in the gray
market because of lower price, nice getup and for guarantor period. The demand of Microwave oven is
increasing day by day which is a positive sign for LG.

BACKGROUND OF THE REPORT:

This is the report on internship program of MBA supervised by Mirza Mohammad Didarul Alam, lecturer
of StamfordUniversity. The intern was placed in LG Butterfly Marketing Company Limited. for the three
month internship to have a practical snatch over the organization activities. The topic of the report is
proposed “The competitive market analysis of microwave oven. Basically MBA Program is designed to
reduce the gap between the theoretical knowledge and practical knowledge. I am very glad for getting
this opportunity to accomplish my practical orientation at Butterfly Marketing Company.

OBJECTIVES OF THE REPORT:

The specific objective of the study is given below.

1. To understand the marketing functions of the company

2. To find out the efficiency and effectiveness of existing Marketing system.

3. To analyze the competitive market share of Microwave oven.

4. To identify the marketing problems faced by Butterfly Marketing Limited in case of Microwave
oven.

5. To evaluate the present performance of LG Butterfly in microwave oven in comparison with other
major competitors.

METHODOLOGY:

An information plan has been structured to collect the relevant data consistent with the preparation of
the report to conduct the study, primary and secondary data were reviewed thoroughly in an organized
manner. This study is based on secondary data collected from Head office, showrooms, open market,
and market survey on questionnaire basis on customers, showroom managers, corporate level and gray
market. Newspapers and other printed materials were also used for collecting relevant data.

LIMITATIONS OF THE STUDY:

Several limitations remain regarding the coverage and comparability of data.

Data collection procedure was not so easy within limited time.

All users were not cooperating with me.

In case of data collection from competitors, every place was not accessible.

In certain critical areas, reliable data are extremely scarce.

All showroom managers were not cooperative in providing data.

 Some data collected from one source contradicted with other data and actual data findings arise
confusion. As a result, actual situation was difficult to assess.

About company’s strategic task and structure:

Historical background of LG Butterfly.

Mission, Goals, and objective.

Management of Butterfly.

Structure of the company.

Description of the tasks performed by each division

SWOT Analysis of LG Microwave oven

Historical Background of LG Butterfly:

Butterfly Marketing Limited is a leading marketing company in the field of electronics home appliances
in Bangladesh. Since 1987 Butterfly marketing Ltd. has been continuously making progress surfacing
newer grounds and surmounting higher goals. They started their business with only 3 showrooms but
now they have 136 showrooms and 80 distributors in Bangladesh. Butterfly marketing company limited
is providing customers with high technology involved electronic home appliances with cash or hire
purchase. For long time, business collaboration with LG electronics Inc in 1997. PeopleRepublic of Korea,
Hansong Enterprise Ltd., PeoplesRepublic of China Butterfly Marketing Company Ltd. has achieved
reputation through offering the quality product.

The origin of Butterfly is in China. In Bangladesh, the company was founded in 12th July 1987, to
produce electronic consumer products. It merged with several companies (LG, Kelon ) and added several
products in the product line. The establishment of LG was in South Korea in 1958 as Gold star. In
November 1959, Korea’s first Radio produced. Then in November 1962 first Telephone set produced.
Korea’s first Refrigerator was Produced at January, 1965, and 1966, first black & white Television was
produced. In March 1968, Korea’s first Air conditioner was produced. Korea’s first overseas branch was
established in US in September, 1968, In 1978, sales subsidiary was established in USA. The company
changed its name from Gold star to LG electronics Inc. in Marsh 1995, The company LG vision was
declared in July 1999 In 75% of its sales (Plasma display ) 60” TV is launched. LG Electronics makes over
75% of its sales overseas. Establishing facilities in 27 countries for manufacturing, sales & marketing,
logistics, R & D, design, and customer services, LG has put together a global network of 54 subsidiaries
and offices with 50000 global employees. In Butterfly Marketing Ltd, the numbers of employees are
about twelve hundred.
BUTTERFLY AT A GLANCE

Management Office : Butterfly Marketing Limited71, Motijhee C/A, Dhaka-1000Bangladesh.

E-mail:info@butterfly-lg.net

Business Operation Started in Bangladesh : 1987

No. of Employees when Started : Management-03 & Marketing-03

Present No. of Business : 90

Present No. of Employees : About 1200

ProductRange : Air ConditionerRefrigeratorDeep Freezer

CD Music System

DVD Player

Microwave Oven

Rice Cooker

Color Television

Washing Machine

Sewing Machine

Business Collaboration with : L.G Electronics Inc.PeoplesRepublic of KoreaHansong

Enterprises Ltd.

Nanjing-210029
PeoplesRepublic of China

Business System : Cash & Hire Purchase System

STRATEGIC TASK ANALYSIS:

Mission:

Butterfly will become the acknowledged leader in electronic home appliance industry to provide quality
products into reachable price. Leadership will be achieved by establishing the industry standards of
excellence for quality of service and by maintaining the broad loyalty relative to our service
commitment.

Achievement of Mission requires:

Absolute dedication to understanding and fulfilling our customers need with the appropriate mix of
service, reliability, products and price for each customer.

A countrywide showroom and service network for customer providing with reputed brands, products
with excellent useful characteristics with different aspects for customer.

Allocation of resources consistent with the recognition that we are in number one position in
countrywide business.

An environment that rewards achievement, enthusiasm and team spirit and which offers each person
in Butterfly with superior opportunities for personal development and growth.

A professional organization able to maintain initiative and local decision making while working
together within a centrally managed network.
The evolution of our business in providing new products, new services, markets or products will be
completely driven by our single-minded commitment to anticipating and meeting changing needs of our
customer.

Goal:

To provide best quality products for the valued customers by introducing latest

technology driven products and expanding service network.

Objective:

To create and continuous upgrading the loyalty of the clients and their recommendation of our people
through: quality products and good advice, dependable service and delivery and efficient marketing
effort.

To establish a strong and distinguished corporate portfolio and image by retaining the tradition of the
world’s greatest product line up.

To continuous upgrading and monitoring and evaluating of total quality management (TQM) approach
to our all marketing and distribution system by making dynamic, honest and industrious showroom and
dealer personal, a integrated part of the family.

To reach the pinnacle of the market in Brand Category combined with customer segmentation and
strengthen our position there.

Develop an integrated human resource policy and implement its consistent use through the
organizational training, authority commensurate with responsibility and recognition for performance.

To ensure that every member of the management team will be a person of top capability.

Introduce methods to plan for the provision of required caliber and quantity if staff.

Assist the organization in becoming more customers aware and responsive in changing needs of
external marketing environment.

Define and encourage implementation of an improved communications culture throughout the

organization.

Faster a leadership style throughout the organization which encourages the respect for individuals,
teamwork and close identification with customers.
Long-range objective:

The long-term objective is to gain leadership globally in the home appliance

industry.

Short term objective:

Their short-range objective is profit maximization through customer satisfaction

by providing quality product and increase market share in electronics market.

Strategic Intent:

To be the global leader in the appliance industry.

Corporate strategy:

To earn more than average profit by exceeding customer expectation.

Business strategy:

Adding product features to different markets and thus gain substantial market

share.

Operational strategy:

To promote corporate image, to establish good production facilities and to setup a

good distribution channel.

Organizational Structure of Butterfly:

Authority controls all over the company along with the supervision of three directors (finance,
Marketing and Technical). The segmented departments are doing activities under the supervision of
both head of the department and the authority. The summaries of departmental activities are discussed
below:

Administration Department:

The major activities of administration department are as follows:

Staff recruitment, staffing, staff management (transfer, promotion ) and staff

controlling.

Administrative activities regulating, setting up workings of various subordinate

ept. and monitoring employees.

Some additional activities benefiting the company.

Accounts Department:

This dept. basically does the following activities:

Preparing monthly account’s report

Preparing and financing report

 LC import related banking activities

Central accounting process.

Credit Department; The following activities are done be the department:

Hire purchase activities.

Monitoring and preparing credit functions of field officers

Checking out and preparing arrear collection report of showroom managers

Monitoring total reporting

Checking out the latest position of hire account, monthly running amount (hire). Through out the
latest position of hire account.

Observing any type of discrepancy gap and performance evaluation of field officers.

Supervising branch level data (Hire Agreement ) through area managers and district managers

Marketing Department; This department does the following activities mainly:

Market survey

Sales promotional activities

Advertisement

Market research

Competitor analysis

Additional activities like arrangement of foreign trip or incentive bonus for employees etc.

Audit Department: The main task of the department is auditing. It does it as follows:

Visiting different branch and auditing level of physical cash and inventory.
Auditing showroom activities whether they are doing properly or not.

Computer Department: The department is doing the following activities:

Data entry of (Accounts) both weekly and monthly report.

Data entry and recording file of cash and hire sales and collection from hire sales.

Inventory Department: The following activities are done by the department:

Management of inventory.

Recording total amount of purchase of product monthly.

Preparing record of total sales unit of products weekly and monthly.

Logistic Department; The activities of the department are no less significant which are as follows:

Any type of product distribution.

Product support and logistic support.

Controlling and management of store.

Service Department: The department does the following thins:

Management of after sales service

Product service is done by expertise like service engineer and B.S.C engineer.
 Only own product servicing is done

After sale service is done at free of cost for one year.

Showroom Activities: Showroom is the grass root level of Butterfly Marketing Ltd and serving the
customers directly.

There are more than 136 showrooms all over the country. Method of selling is in both cash and hire
sales. Various forms are used in selling which are as follows:

Forms used for Cash Sales:

(a) F304 ( Final Receipt General), LPR ( without VAT)

(b) F364 (Cash Receipt with VAT)

Forms used for Hire Sale:

(a) Hirer Proposal Form

(b) Guarantor’ Form

(c) Agreement Form (F315)

(d) Salesman’s Certificate (F317)

(e) Hirer’s Down- payment Receipt (F365)

(f) Installment / Collection Receipt (F314)

Major consideration in Hire Sales:

(a) Hirer’s full name, Parent’s name address, occupation no. of years involved in the job.

(b) Students or blow 18 years aged can’t be a hirer.

(c) Two guarantor who are ‘not related’ to Hirer and also have enough financial strength to
compensate later if hirer defaults.

(d) Hirer will have to make four signatures in the agreement form and all signature in the agreement
form and all signatures should at the same language at the same manner.

(e) At first, Down Payment + 2 installments will be taken including VAT if any.

(f) for Police, BDR, Army ID No. is compulsory.

(g) Hirer can not hire more than one product at a time.

(h) Service change of collecting installment will be within 10 kilo distance Tk.20 and for every next I
kilo Tk. 3.

(i) there should not be any amendment using fluid or mutilation of the agreement form.

(j) the hirer will pay installment within 7th day of each month. Otherwise will be fined @ Tk.25 form
8 to 20th of that month.

Other Issues related to Hire Sales

(a) Revert: If hirer fails to pay installment, then the product is taken return to the showroom back.
(b) Reverse: The reverted product returned to the previous hirer if he pays arear or Sale to another
person.

(c) Sale cancel: If any hirer surrenders the product who is not capable of paying installment, the sale
is then cancelled. In this case, change of Tk. 1000 for use of each 1 month will be deducted from hire
value and the rest amount will be refunded.

(d) Delinquent list: The installments due for collection in the current month.

Forms used for reporting:

(a) Weekly Cash Sale Report (F320): Cash Receipt & Disbursement of Salary. Bulk Sales Commission &
Incentive bonus are described here. The balance goes to remittance sheet.

(b) Weekly Hire Sale Report ( F321): It includes collecting Bonus (if 100% collection – 4% bonus
otherwise not), Installment collection data from collection sheet (F322), Down Payment with or without
VAT. Stock of Hire agreement.

(c) Remittance Sheet (F312) : Balance from F320 & F 321, method of remittance transfer (DD, PO etc)
in details to the Head Office.

(d) Monthly Reporting. Summary of Month’s cash & hire sales and other relevant data.

Discount Method:

(a) If hirer makes full payments within two months, then he will get the product at cash price.

(b) If hirer makes full payment at 3rd month, he will have to pay cash price + a lump sum amount (of
course the sum will be less than hire price).

(c) If hirer makes payment at 4th to 10th month, he will get discount at a chronological down
percentage manner.
Description of the tasks performed by each division:

Home appliance market is the world’s largest consumer goods market and Butterfly Marketing Ltd. is
one of the major organizations in home appliance in Bangladesh Most of the companies are moving
globally to sound growth rate. Butterfly is not exception from this criterion. The brand LG one of the
major international brands possessed by Butterfly is assisting to get moving globally.

The basic intent of the report is to present the performance LG micro wave oven of Butterfly and to
enhance the value of brand and product in a very complex competitive environment. The report
discusses the competitive market analysis of LG microwave oven. Consumer perception of a number of
brand alternative, nature of Distribution channel and their activities, advertising and promotional
activities, market share and growth. The outcomes of the analysis are shown in brief.

Rivalry is likely to increase; its Butterfly’s strategic move to global market has been successful.

The life cycle stages of the products of Butterfly are mostly in mature stage.

All the big companies in the market are acquiring small companies and as the product range-is-quite
large they enjoy Economies of Scale.

Customers are very brand loyal

Some rivals have good distribution channels

As buyers’ preferences are changing it is inducing the industry to change.

An intense competition is going on in the market of home appliance between the brand and non-
brand product.

The increasing demand for non-brand product is due to lower price rather than others.

Customers are not very well-known about LG/Butterfly product like due to the drawback of
advertisement.

Advertisement, another key issue of sales growth through which Konka. Nova and some other non-
brand are doing very well in sales.

Konka and Walton are most demanding in the gray market because of lower price, nice getup and for
guarantor period.

The demand of Microwave oven is increasing day by day which is a positive sign for LG.

Price is the first choice of the customer for purchasing Microwave oven in the gray market but brand
loyalty and quality are not ignorable.
SWOT Analysis of LG Microwave oven:

Strength

Efficient management

good distribution channel

Long experience in this industry and good learning curve.

Reputation as a global company Environment friendly products

Wide distribution capability

Brand loyal customers

Brand image of LG

Easy access to capital investments

Economies of scale due to standardized product

Structured geographic network.

Two sales category higher purchases system or cash.

Weakness

Weak marketing strategy.

Lack of strong marketing network rather than competitors.

Lower frequency in Advertisement in electronic media.

Lack of proper decoration of showrooms.

So high price than china base product. (Microwave oven)

No warranty or Guaranty for Microwave oven.

Opportunity :

Butterfly has very positive corporate image

 Proper utilization of hire sales system can flourish the sales growth

New products developed through.

Small and local competitors are decreasing

Changes in people’s life style, enhancement of purchasing power and changes in social values.

Threat

A shift in buyer needs and tastes away from the industry’s product

Adverse demographic changes

As opportunities are increasing some Korean companies may enter the market as they already have
similar products microwave oven. (Superaristion)

The frequency of advertisement is increasing by the competitors rather than L.G.

Day by day inter new product in Bangladesh which price is so low. (China product)

Competitive Market analyses of microwave oven

Marketing strategy& marketing mix of LG Butterfly.

Product Analyses(LG Microwave oven)

Consumer Analyses of LG microwave oven.

Promotional activities of LG Butterfly.

Distribution and channel management of LG Butterfly.

Price analyses of LG microwave oven.

Marketing Strategy & Marketing Mix

Marketing Mix

This is a traditional approach to marketing planning which is based on the four Ps:
Product policy:

Product is, in fact, the range of the products (goods or services) that the organization offers to the
marketplace. Decisions have to be made about quantities, timing, product variations, associated
services, quality, style and even the packaging and branding.

Price policy:

Price is a vitally important decision area because although it is a promotional tool in many respects,

it is the main source of income to the organization. If prices are lowered for promotional purposes, the
case flow within the company, and its long-term profitability, could be seriously affected. As with
products, there is normally a range of prices. These can vary according to the quantities bought, the
importance of the customer, and the market segment. pricing can be long-term and short-term. pricing
can involve discounts, special offers, allowances, credit, and ‘trade-ins’. It is vitally important to get price
decisions right.

Place policy:

A business when planning its marketing will ask a number of questions relating to place i.e. ‘through
which outlets should we sell the product? How do we physically move the product to these chosen
outlets? How far a field do we wish to operate (locally, nationally, or internationally)? Place, or
distribution policy, is a massive, complex decision area.

The Marketing mix gives a plan by which to operate to influence and satisfy the buyer/customers. The
four Ps approach is not perfect, and is certainly not intended to cover all the marketing activities, e.g.
Marketing research, research, of course, is the provider of information for the decisions in all of the four
P areas.

Butterfly’s Marketing Mix:

Product Mix
Distribution Mix

Communication Mix

Product line rangeDesign conceptColor appeal

Style intention

Package proposal

brand name

Price structure

Service function

Waranty offer

PhysicaldistributionSupplier

Stock

Handling

Storage

Transportation

Warehousing
 DistributionchannelDirect

distributors

Trading

block

AdvertisingSales cataloguesField sales force

public relation

Direct relation

Direct marketing

Telephone sales

force(brand image)

Merchandising

Incentives Mix

Money

Off(Discount

Competitions
Sales promotion

Product analysis:

A product may be anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need. It includes physical objects, services, persons, places,
organizations, and ideas.

Product classifications

Marketers divide products and services into two broad classes based on the types of consumers that use
them-consumer products and industrial products.

(a) Consumer products

Consumer products are those that the customer usually buys frequently, immediately, and with a
minimum of comparison and buying effort. These products differ in the ways consumers buy them and
how they are marketed.

Table 6.1 Marketing considerations for consumer products

Types of Consumer product

Marketing considerations Conveniences Shopping Specially Unsought

Customer buying behavior Frequent purchase, little planning, little comparison or shopping effort,
low customer involvement Less frequent purchase, much planning and shopping effort, comparison
of brands on price, quality, styleStrong brand preference and loyalty, special purchase effort, little
comparison of brands, low price sensitivity Little product awareness, knowledge (or if aware, little
or even negative interest)

Price Low price Higher price High price Varies

Distribution Widespread distribution, convenient locations Selective distribution in fewer outlets

Exclusive distribution in only one or a few outlets per market area Varies
Promotion Mass promotion by the producer Advertising and personal selling by both
producer and resellers More carefully targeted promotion by both producer and reseller
Aggressive advertising and personal selling by producer and reseller

(b) Industrial product

Products are those bought by individuals and organizations for further processing or for use in
conducting a business.

According the above definitions, Microwave oven should be categorized as a consumer product. As a
shopping product, they are less frequently purchased consumer products that customers compare
carefully on suitability, quality, price, and style. They spend much time and effort in gathering
information and making comparison. They buyers see homogeneous shopping products, such as major
appliances, as similar in quality but different enough in price to justify shopping comparisons.

Terms & conditions for Microwave oven-Warranty

Butterfly Marketing Limited guarantees to the customer mentioned as per the details of the unit given
for a period of twelve (12) month, commencing from the date of purchase, the repair, if so required at
the sole discretion of the company, free of charge any part of microwave oven, provided the company is
fully satisfied in its sole discretion about these defects and further provided the mentioned unit is
deemed to be still in the possession of and used by the purchaser mentioned.

Types of Microwave oven:

There are three types of microwave oven in LG Butterfly.

1. Grill microwave oven

2. Convection microwave oven

3. Electric oven
Different model and price of LG microwave oven.

Brand name

Types

Model

Size (Liter)

Price

Sale system

LG

Grill

604A

28
13490

Cash & Installment

LG

Grill

5644B

27

13390

Cash & Installment

LG

Convection
808WAR

30

15990

Cash & Installment

LG

Convection

767W

28

14990

Cash & Installment

LG

Convection

7645B

30

19990

Cash & Installment

BUTTERFLY

Convection

900ESL30R

28
10990

Cash & Installment

After sale service:

The department does the following thins:

Management of after sales service

Product service is done by expertise like service engineer and B.S.C engineer.

Only own product servicing is done

After sale service is done at free of cost for one year

Table: Opinion about LG Microwave oven and it’s features.

Opinion

Good

Very Good

Excellent
No Idea

Bad

Percentage

23%

11%

4%

57%

5%

Consumer Analysis:

Consumers express themselves and communicate with each other through the consumption of goods
and services. Understanding how marketing manages its customers represents one half of the analysis.
The other half needs to focus on the aims of marketing in respect of its customers. Overriding the
commercial aims (for example, increased usage, profit and market share) is that of what marketers are
marketing and consumers are consuming. The company that really understands how consumers will
respond to different product features, prices, and advertising appeals has a great advantage over its
competitors. Consumer purchases are influenced strongly by cultural, social, personal and psychological
characteristics. The marketer needs to know what people are involved in thy buying decision and what
role each person plays. People might play any of several roles (initiator, influencer, decider, buyer, and
user) in a buying decision. Knowing the main buying participants and the roles they play helps the
marketer fine-tune the marketing program.

The customer analysis for the product Microwave oven of LG Butterfly Marketing Ltd. has been done
through a market survey. And on the basis of that survey customer analysis has been made.

Survey Type: Consumer Survey

Sample size: 120

Income Group: Within Tk.20000-Tk. 40000 and above.

Occupation: Service holder & Business personality.

Social Class: Lower-middle, Middle and upper middle.

Survey Area: Different Location of DhakaCity.

Date of Survey: 1st to 30th of August.

In this case we have gone to the butterfly showrooms (Mohammad pur, stadium market, Kazi Nazrul
Islam Avenue, Mirpur, Moghbazar, 756,Shewrapara, Rokya Sarani,Mirpur,Dhaka, 15/4,Mirpur Road,
Shaymoli,Dhaka). for collecting information of consumers . We have collected information from 120
consumers. We have tried our best to cover all levels of customers.

CONSUMER ANALYSIS

Table:3.1 Present brand users of Microwave oven of different brand.

Brand Sharp Samsung LG Panasonic whirlpool

%

32

20

25

13

10

Table:3.2 Present china brand user of Microwave oven of different brand.

Brand Butterfly Golanz superaristion konka Walton Nova Noka

1.72

6.90

12.07

22.41
24.14

17.24

15.52

Table: 3.3 Specific reason for choosing particular Microwave oven.

Reason

Price

Brand image

Features

Warranty

Getup

%
42

22

18

15

Table:3.4 Opinion about the “Brand Image” position.

Brand name Percentage Position

Sharp 24% 1st

LG 21% 2nd

Samsung 16% 3rd

Konka 12 4th

Panasonic 11 5th

whirlpool 9 6th

walton 8 7th

Golanz 5 8th

Other brand 3 9th

Table: 3.5 Opinion about low price offer high quality.

Opinion

Agree

Not sure

Strongly Disagree

Percentage

10%

42%

48%

Table:3.6 Opinion about LG Microwave oven price present. Size 27, 28, 30, (Liter) Price: 13390-14990-
15990

Opinion about price Reasonable Affordable High Unreachable

Percentage 30% 29% 35% 6%

Promotion Activity and Advertisement:

Advertising is an evolving business function. It was traditionally used to announce the availability of
products in customer, brand building, positioning conveying the USP (Unique Selling Proposition) and so
on. In recent years, advertising hag undergone a number of significant changes in both strategy and
execution. Most of the consumer product companies have come to the stage where they cannot do
business without advertising. It used to be said be that advertising was the smartest form of
communicating without telling the truth. With the cost of media skyrocketing. and the attention span of
the customers shrinking with ad clutter, we cannot blame the advertisers for not giving the entire truth.
advertising is a communication tool. In order to be successful. we must develop goals and objectives in
keeping with the communication core of advertising Once we have clearly defined the communication
goals, we must then adders the role of advertising within the overall marketing strategy of the firm.

The advertising campaign:

The campaign may be carried out an advertising agency for a large organization. The important starting
point is to have clear objectives as to what is to be achieved. The stages in the advertising campaign set
out are in a recommended order.

Identify right timing :

Timing of the advertising is crucial. Too before the event, and the customers forget; too late and they
have bought something else. Seasonal markets need careful timing. A Media Expenditure Plan should be
drawn, detailing at what stags of the campaign the money should be spent, and on which media need to
be informed first so that stocks will be in the shops when consumers get to hear about it.

Promotion to the consumer: Advertising media:

Promotional communication methods consist of advertising sponsorship, branding. Packaging, publicity.

Relations. sales promotions and merchandising. They must not offer conflicting messages. Advertising
media must be chosen for its ability to reach the right market segments. Perhaps the most significant
role that advertising plays is its advertising is its contribution to the creation of brand preference. If the
necessary ingredient for advertising is a brand name, then the key to continued successful advertising is
a good product. It goes without saying that no amount of advertising will persuade consumers to
repeatedly buy a bad product. The Key to successful advertising is to view a product as a bundle of
consumer benefits rather than as a physical commodity. Advertising must communicate messages that
address major benefits of a product and communicate realistic benefits of consumers. Examples of
primary product consideration in establishing advertising goals are:
 Brand position within a product category. Products priced at the high end of a category will require
different advertising strategies just as advertising for now products will differ from their established
competitors.

2. Product purchase cycle. Obviously. package goods bought on a biweekly cycle. such as groceries
will use different advertising approaches than durable goods,

such as appliances, which are purchased every 5 ro 10 years.

3. Product awareness and market position. Product with high market saturation has a much
different marketing strategy than others, and it is reflected in both its advertising budget and its creative
approach.

4.Product seasonality. For seasonality, Product is marketed differently.

5. Short term advertising strategy. Is a particular campaign designed to gain initial consumer trial,
encourage higher purchase levels from current customers, or based on the following.

Identity the right media:

The choice of media is large and rapidly expanding as more TV channels and the new technology of the
Internet add to the choice. Selection is therefore critical and must be based in the following:

Is the cover to be local, regional or national?

Does the overall cost rule out any medium?

How many people are reached and at what cost per person?

Which social group doses the medium reach?

How often con the message is put over- hourly, daily, weekly etc.?

Can the message be detailed / how long a life will it have?

What is the image/status/prestige of the medium?

How important are sound, movement, color, size?

 Will the results be measurable e.g. Replies to one advertisement?

These are the key questions to be asked when selecting suitable media the lists in the boxes in the
diagram have been drawn up in categories in order to help answer this question.

Advertising Pattern of Butterfly Marketing Ltd.

Butterfly’s advertising pattern is the following:

Electronic Media (Television)

Newspaper

Billboard

Road sign

Purchase of Point

Electronic Media: Butterfly Marketing Ltd. uses B.T.V., Channel I, A.T.N. Bangla, n.T.V for their
advertising purpose.

News Paper: Two Major News paper, Ittefaq & Prothom Alo are used for their advertising purpose.

The odjective of adverfising of Butterfly Marketing are given below:

1. To establish an immediate sale.

2. To bring prospect to closer to a sale.

3. To bring a long term franchise.

4. To bring consumprion among users.

5. To initiate first move towards a sale.

6. To give sales force a supporiting servise.

7. To gain market support.

8. To deeper penetrarion .

To open distrbution

To open distribution.

To develop image.

To import intormation.

To enter new marker

To create awarenes.

To support retail trade.

To promote incentive marketing.

To counter price competition.

To overcome memory laps.

To defend preseent positio.

To establish market lead.

To reinforce reputation monopoly.

Advertising Agency of Butterfly Marketing Ltd.

Butterfly Marketing Ltd. do their advertising activities through the Nishu advertising agency for specially
T.V. media.

Sales Promotion:

The techniques of sales promotion are so diverse and widely used that they are part of the promotional
programs of virtually every company. Sales promotion is directed to a number different target markets
and comes in an array of formats. Despite its many forms, all sales promotion techniques have in
common the goal of creating short- term sales. The most frequently used forms of sales promotion are
the following

Š Point- of – purchase advertising

Š Premiums

Š Specially advertising

Š Coupons

Š Sampling

Š Deals

Š Event marketing

Š Sweepstakes and contests

Š Cooperative advertising

Š Trade Shows and exhibits

Š Directories and Yellow Pages

Š Trade incentives

Butterfly’s Sales promotional objectives.

Table.3.4.1 Sakes Promotional objectives of Butterfly

Consumer Promotion Trade and industrial promotion

Matching comp

Increasing amount of purchase.

Combating own corporate purchase and image

Inducing immediate purchase.

Providing distribution sales push.

Stimulating demand push.

Retained established customers.

Reaching specific markets.

9. Extending effective distribution.

10. Overcoming seasonal patterns.

11. Developing brand awareness.

12. Controlling selling effort.

13. Acquiring marketing intelligence.

14. Inducing consumption of range.

15. Evaluating Media effectiveness.

1. Extending distribution network.

2. Meeting competitive activity.

3. Stimulating showroom/ outlet’s co-

Operation

4. Overcoming seasonal fluctuation

5. Introducing new product

6. Opening new accounts.

7. Increasing average value of order.

8. Promoting showroom target

9. Enlisting support from publicity

10. Encouraging advance stock holding.

11. Gaining merchandising support.

12. Purchasing supporting products.

13. Educating for trade.

14. Reclaiming lost or dormant business.

15. Securing media news coverage.

Types of Sales Promotion of Butterfly:

Table :3.4.1 Different types of promotional activities of Butterfly

Consumer incentive

Price reduction

Competition

Personality Promotion

5. In store and exhibitions demonstration

Trade incentive

2. Trade exhibition

3. Showroom promotion

4. Trade Bouncers

Distribution incentive

Merchandising activities

Competition
8. Point- of- Sale aids

Channels distribution of LG Butterfly Microwave oven:

“Any sequence of institutions from the producer to the consumer including one or any number of
middle men is called channel of distribution”- Mc Carthy.

Producers normally use a number of marketing intermediates for taking their products to users.
Marketing intermediaries bear a variety of names such as: sole selling agents, stockiest, Wholesalers,
franchised dealers retailers, authorized representatives, brokers/ commission agents and jobbers. All
such intermediaries constitute the distribution channel. The depots/ show rooms and other direct
outlets of producers also form part of distribution channel.

Role and Importance of distribution Channel’s

Distribution channel’s play a pivoted role in the successful marketing of most products especially
consumers products.

Channel Perform a wide variety of functions:

The importance of distribution channels can be understood clearly by analyzing the wide verity of
function performed by them.

Channels provide distributional efficiency to manufacturers.

Channels supply products in required assortments.

Channels provide salesmanship.

Channels help merchandise the products.

Channels help implement the price mechanism.

Channels look after physical distribution and financing functions.

Channels decision have a vital bearing on decision on other areas of marketing.

 Channels act as change agents and generate demand.

Channel levels.

Channel members.

Channel length.\

\Butterfly’s Channel of Distribution:

Company must decide on the best way to store, handle, and move their products so that they are
available to customers in the right assortments, at the right time, and in the right place. Logistic
effectiveness will have a major impact on both customer satisfaction and company costs. A poor
distribution system can destroy an otherwise good marketing effort. Butterfly Marketing Ltd. is
maintaining the following distribution channel under the direct supervision of logistic department
through authority to maintain the product property and to reach the final consumers.

Supply chain

Distribution Channel

Physical Distribution:

Physical distribution looks after physical handling of goods, and assures maximum customer service. It
airs at offering delivery of right goods at the right time and places to customers. Physical distribution
activities cover.

a) Order processing

b) Handling of goods.

c) Packaging.

d) Warehousing.
e) Transportation.

f) Inventory and

g) Customer service.

All middle men in distribution perform these functions and they assure putting the product with in an
arms length of customer desire and demand.

Table:3.5.1 Opinion about showroom’s decoration positive impact.

Brand Sharp Samsung LG Panasonic whirlpool

% 20% 26% 24% 14% 16%

Price analysis :

The price prevailing in the market at any given time and determined by the forces of demand and supply
is the market price. Market price is important because price changes send signals to producers which
tells them whether they should produce more or less of their good or service. If the price of a product is
raising this is a sign that producers need to supply more.

Producers will respond to this signal because, in general, higher rives lead to higher rewards for
producers (profit) and so they have an incentive to work harder and increase production. Filling pries, on
the other hand,. hand generally lead to falling profits and this is the way that the market signals to
producers that they should produce less.

The influence of price on demand: The price of a good or service is obviously one of the main factors
that influence how much we buy of it. The factors that cause the level of demand to change are
explained below. The general rule is:

An increase in demand leads to arise in price

A decrease in demand leads to a fall in price

Changes in income: Most people gain an income from working in the form of wages and salaries.
However, people con gain an income from a number of other sources. They might be from employment,
savings, retirement pension, state benefits, property ownership, share ownership or business. It is cleat
that the greater the level of people’s income the greater the level of demand. It also follows from this
that higher the level of demand the higher the market price. Obviously this logic can also be applied the
other way around- lower incomes lead to lower demand and lower price.

The price and availability of credit: The price of some goods and service that people wish to buy can
often be so high that they find it difficult to afford them out of one month’s income.

The influence of price on supply: The price of a good or service is obviously one of the main factors that
influence how much we buy of it. The general rule is that:

The higher the price of a good or service the more businesses will want to produce

The lower the price of a good or service the less businesses will want to produce

The factors that cause the level of supply to change. to change. and hence the market price of goods and
services to alter, are explained below.

An increase in supply leads to a fall in price

A decrease in supply leads to a rise a in rise in price

Changes in the cost of production: A rise in business costs will often lead to a fall in profit levels and so
firms will lose some of their incentive to produce. It the majority of firms in the industry are affected in
the same way then there will be a fall in supply. Similarly a fall in business costs tends to increase profit
levels and they have an incentive to produce more. If most firms in the industry respond in the same
way then there will be an increase in supply.

Factors to consider when setting prices:

Before setting price, the company must decide on its strategy for the product. If the company has
selected its target market and positioning carefully, then its marketing-mix strategy, including price, will
be fairly straightforward. At the same time, the company may seek additional objectives. The clearer a
firm is about its objectives, the easier it is to set price. Price is only one of the marketing- mix tools that a
company uses to achieve its marketing objectives. Price decisions must be coordinated with product
design, distribution, and promotion decisions to from a consistent and effective marketing program.

Pricing of Microwave oven:

In case of the product Microwave oven, Butterfly Marketing Ltd. has adopted the following price on the
basis of following formula.

Selling price = Landed cost (LC) + Administrative cost + Transportation cost + Warehousing cost + VAT +
Profit margin.

Different brand, different size and different price:

Brand name Size (Liter) Types Price

Sharp 27 convection 19000

Sharp 41 convection 25000

Sharp 27 Grill 15500

whirlpool 20 Grill 7100

whirlpool 30 convection 15990

Walton 17 convection 8600

Walton 23 convection 14800

Walton 30 convection 15700

Konka 25 convection 10500

Konka 30 convection 11500

Different model and price of LG microwave oven.

Brand name

Types

Model

Size (Liter)

Price

Sale system

LG

Grill

604A

28
13490

Cash & Installment

LG

Grill

5644B

27

13390

Cash & Installment

LG

Convection

808WAR
30

15990

Cash & Installment

LG

Convection

767W

28

14990

Cash & Installment

LG
Convection

7645B

30

19990

Cash & Installment

BUTTERFLY

Convection

900ESL30R

28

10990
Cash & Installment

Table –3.6.1 Price comparison of different brand for 30 Liter MC:

LG Sharp Konka whirlpool Walton

15990 21000 11500 15990 15700

Market Analyses of the Industry

Major participants of the Industry:

Market Share Analysis of Industry for global brand.

Market Share Analysis of Industry for Non brand

Market analysis of the industry:

To ensure that our analysis is consistent, it is very important to define the ‘industry’ we are dealing with.
An ‘industry’ is defined as a group of organizations or business units producing close substitutes. For the
convenience of our analysis, the industry can be defined in both wide and narrow.

Wide Definition :

Base on the available information, the industry can be defined as “Consumer durable Electronics Goods”
industry.

Narrow Definition:

For the critical analysis, the industry can be defined as “Microwave oven” industry.

Major participants of the Industry:

The companies who are performing well and have maximum market share of the industry are as follows:

Global brand:

1. LG-Butterfly

2. Sharp

3. Whirlpool

4. Panasonic

Major participants of the Industry:

Non brand:

Butterfly

Golanz

Superaristion

Konka

Walton

Nova

Noka .

Table : Market Share Analysis of Industry for global brand : (Sales Volume)

For the Year 2007

Company Name
Market Share %

LG

49.44

Panasonic

34.61

Sharp

6.04

Whirlpool

8.78

Table: Market Share Analysis of Industry for Non brand: (Sales Volume)

For the Year 2007

Company Name
Market Share %

Butterfly

1.72

Golanz

6.90

Superaristion

12.07

Konka

22.41

Walton

24.14
Nova

17.24

Noka

15.52

Recommendations:

I recommend the following steps:

Price can be reduced to attract the customers mostly.

More advertising campaign should be taken to attract the customs.

Number of showrooms should be increased.

Credit facilities could give to the dealer in some cases.

Prices should not be more frequently.

Set up a control R & D department to make R & D activities more cost effective & fruitful.

Should have in house advertising agency.

After sales services facilities should be prompt & with care.

Strengthen channel of distribution.

Can diversify in other domestic products to gain economics of scale.

Become more aggressive to cover wide area.

Setting up a strong brand image.

Can Improve promotional activities (consumer promotion, trade promotion).

Implementation plan:
Managers at all levels are involved in implementing a strategy. Of course top level managers should take
the initiatives to carry out the plan with the help of middle level and lower level managers. Then the
whole task should be divided into several parts. Procurement manager is needed to play a major role
here. He should have the capability to negotiate with the supplier in order to lower the input price. They
can also setup a central R & D department to make R & D activities more cost effective and fruitful. The
R & D team has also something to do in implementation. The manager in charge of R & D should
persuade his subordinates to come up with innovative ideas and give operational efficiency to lower the
price.

The manager of marketing department will be responsible in implementing the plan. He should explore
creative ideas to attract the customers. The advertising and promotional activities should be exceptional
to influence the consumers to buy Butterfly products.

Contingency plan:

There is always uncertainty in this world. The strategies taken to accelerate a company’s growth may go
in vain. Therefore the company should have some backup strategy. Since the average income of Asian
consumers is low, many people may be reluctant to buy Butterfly’s products. For this, Butterfly can
introduce an economic version of its product line, which will be affordable for the low-income
consumers. Not only for Asia, can it produce this economic version for any low income-earning people
all over the world.

International market is unforeseeable; the government may not act in accordance with the terms and
conditions. In this case they can seek cooperation from the govt. to put pressure on the host
government so that they comply with the international norms, rules and regulations. Local people who
have strong influence on the govt. should be convinced by parent company so they act in favor of them.
All these strategies may not produce the desired result, so insurance should always be there to cover up
this loss before entering any new country.

Conclusion:

From the study of Competitive market analyze of microwave oven, it can be concluded that functions
followed by Butterfly marketing company Ltd. is comparatively good. Since consumer demand is
changed instantly, the company should take the advance strategies and policies to grab the market. In
this regard integrated marketing can be helpful. Rivalry is likely to increase; its Butterfly’s strategic move
to global market has been successful. The life cycle stages of the products of Butterfly are mostly in
mature stage. All the big companies in the market are acquiring small companies and as the product
range-is-quite large they enjoy Economies of Scale. Customers are very brand loyal some rivals have
good distribution channels. As buyers’ preferences are changing it is inducing the industry to change. An
intense competition is going on in the market of home appliance between the brand and non-brand
product. The increasing demand for non-brand product is due to lower price rather than others.

Customers are not very well-known about LG/Butterfly product like due to the drawback of
advertisement. Advertisement is one of the key issues of sales growth through which Konka. Nova and
some other non-brand are doing very well in sales. Konka and Walton are most demanding in the gray
market because of lower price, nice getup and for guarantor period. The demand of Microwave oven is
increasing day by day which is a positive sign for LG. Price is the first choice of the customer for
purchasing Microwave oven in the gray market but brand loyalty and quality are not ignorable.

butterfly marketing