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Group - 05
MBA Program, 2015 (16th Batch)
Supervisor
Sabnam Jahan
Assistant Professor
Department of Management
Faculty of Business Studies
University of Dhaka
Letter of Transmittal
April 30,2015
Sabnam Jahan
Assistant Professor
Department of Management
University of Dhaka
Dhaka-1000
Subject: Submission of the Report on Recruitment and Selection of Berger Paints
Bangladesh Limited.
Dear Madam,
We consider our self very fortunate to have had the opportunity to prepare a report under
your valuable guidance.
Your teachings of Human Resource Management in Bangladesh helped us in our study
Recruitment and Selection of Berger Paints Bangladesh Limited. was very appropriate.
This study enabled us to gain new insights about how theoretical knowledge acquired in the
classrooms helps us to understand the practical field Human Resource management in
multinational organizations.
We would like to express my sincere appreciation and gratitude to you for giving us the
opportunity to show our gained knowledge while preparing of this report.
We shall be glad to answer any queries you may have in this matter.
Sincerely yours,
______________________________
Group 5
Roll: 209, 211, 217, 272
Department of Management
University of Dhaka
Acknowledgement
An internship program is a very important and essential means for acquiring practical
knowledge because the knowledge of a student does not get fulfilled until he acquires
knowledge theoretically and practically. At the very beginning, I obviously express my
deepest thanks and appreciation to my honorable faculty Assistant Professor Sabnam Jahan,
Department of Management, for giving his valuable time, guidelines and advice in
preparation of my r report on Recruitment and Selection of Berger Paints in Bangladesh.
In this connection, I would like to thank Abul Khair Sabbir (Manager-Market Research and
Consumer Insight) and other executives of Berger Paints Bangladesh Limited for their
suggestions and comments which inspired me greatly to prepare the report successfully and
their heartiest co-operation which makes my destination easier.
Finally, we convey our sincere thanks to my friends and family who inspire in different ways
to complete the report and the course as well.
Roll No: 209, 211, 217 & 272
Department of Management , 16th batch
University of Dhaka
Declaration
I declare that the internship report entitled Marketing Strategy of Berger Paints Bangladesh
Limited: A Critical Analysis embodies the result of my own work, perused under the
supervision of M. A. Akkas, Professor of Management Studies, University of Dhaka.
I further affirm that this internship report is original. Materials of work found by other
researcher are mentioned by reference. This report, neither in whole nor in part, has been
previously submitted for any degree.
_____________________
Signature of the student
Certificate of Supervisor
We have pleasure to certify that the entitled Recruitment and Selection of Berger Paints
Bangladesh Limited:, ID No. 209, 211, 217 & 272, student of MBA program of Department of
Management , University of Dhaka, is the candidates own achievement and is not a conjoint
work.
We also certify that we have gone through the draft report thoroughly and found it satisfactory for
submission to the Department of Management in fulfillment of the requirement for the degree of
MBA (Management ).
_________________________
Assistant Professor Sabnam Jahan
Department of Management
University of Dhaka
Executive Summary
Now Berger Paints BD Ltd. (BPBL) is one of the major market share capturer. They have
some excellent strategies, which I have discussed in this report. Their strength is more than
their weakness. For this reason Berger Paints BD Ltd. (BPBL) is one of the best companies
in Bangladesh. The paper is an attempt to observe how Berger Paints Bangladesh Limited is
influencing the urbanization pattern by their effective marketing strategy. The report is
categorized in six different chapters. In chapter one introduction, purpose, objective, scope,
limitations are discussed. Chapter two narrates methodology. Chapter three describes the
company profile. Chapter four concentrates on the theoretical framework of marketing
strategy. Chapter five describes the marketing strategy of BPBL. In formulating strategies the
company first makes SWOT analysis on the basis of mission & objective. They make
strategies depending on STP (Segmentation, Target market selection & positioning). So first
it segments its market on the year basis and then product basis. Then they select their target
market. After selecting market they position its product by product differentiation, service
differentiation and image differentiation. They price their product as they could capture most
of the market share and better quality product at reasonable price. Finally conclusion &
recommendations are given in the chapter six. The main objectives of the report are
identifying the marketing strategy of Berger Paints Bangladesh Limited.
Abbreviations
BPBL
Table of Contents
Chapters
Particulars
Chapter - 1 Introduction
Pages
1-5
2
3-4
5
5
Chapter -2
6-8
Chapter-3
Organizational Profile
9-46
15
16
17
17
18
18
19
19
20
20
21
22-23
24
25-26
27-42
28
29
30
39
Department
3.11.6.3 Depots of Sales Department
40
43-104
52
44
46
47
Theoretical Framework
4.0 Theoretical Framework
Chapter Five
49
50
50
52
54
55
58
59
63
65
66
67
69
70
73
75
75
76
77
77
78
79
80
81
81
88
5.1.3.1 Product
5.1.3.2 Place
91-93
5.1.3.3 Pricing
5.1.3.3.1 Different Pricing approach of
Berger
5.1.3.3.2 Pricing Strategies of Berger
94-100
101-105
5.1.3.4 promotion
102
105
5.1.3.4.1 Advertising
5.1.3.4.2 Sales Promotion
106-113
107
108-109
110-113
5.1.3.4.4 Publicity
5.1.3.4.5 Personal Selling
References
Chapter One
Introduction of the report
The businesses are ever changing so are the way of their characteristics. The changing
scenario presents us new techniques and methods of business as well as their employment
strategies. The core of business is to market the product that will be attracted by the
consumers and also the product will satisfy the consumers needs. Human resource efforts are
vital for any business that is the combination of various factors affecting the real market
scenario. The changing environment is creating new issues that must be considered for
employing a person. In this dynamic business world the scenario of business aspect changes
so rapidly that one poor decision in recruitment and selection process could cause the firm to
lose its very important issue which is resources. We have chosen to conduct the study in
BERGER paints Bangladesh Limited because they are the leading firm in the painting
industry occupying the highest market share and possession of efficient and quality human
resources.
requirement will represent a lot about the real practical scenario recruitment and selection
practices performed by Berger Paints Bangladesh Limited.
Berger Paints
Bangladesh Limited ;
To identify the problems of recruitment and selection of Berger Paints Bangladesh
Ltd.
To recommend suggestions for the successful recruitment and selection of Berger
Paints Bangladesh Ltd.
Six Weeks are not enough to understand recruitment and selection process.
Limited access for to collect information due to confidentiality.
Data collected from secondary sources is not verified.
Find out and contact with existing employees for the study was also a
limitation as we could not get enough of them.
Chapter Two
Research Design
The study requires systematic procedures from selection of the topic to final report
preparation. This report is descriptive one. In this report, two types of sources are used to
collect valid data. To perform the study data sources were identified, collected and presented
in a systematic manner and key points are found out. This overall process of methodology is
given below that has been followed in the study.
Planning
Activities
Application
Chapter Three
Company profile
by its Finance, Supply Chain, IT, Budget, Marketing & Sales departments. The
manufacturing units at Dhaka and Chittagong are also the strategic advantages that it has
because of their location. Bergers corporate strategy is to build larger market share through
providing quality and speedy service. Its primary focus is to strengthen its current position by
provided value added customer service. BPBL is committed to get highest consumer
satisfaction. BPBL is committed to express itself as an ethical and socially responsible
company by producing environment friendly paints, in an environment friendly production
plants. BPBL is made up of well experienced, well trained, highly educated officials and very
dedicated and experienced employees along with the stakeholders. BPBL is nothing without
its valued customers. So, to serve the best to the customers has been on top of all priorities.
The major milestones of Berger Paints in Bangladesh are given below:
1950: Berger commenced the paint business in the Indian sub-continent from
1950. Initially the paints were first imported from Berger UK and later from
Berger Pakistan.
1970: In 1970, Berger Paints Bangladesh Limited (BPBL), formerly known
as Jenson & Nicholson, had set up its 1st paint factory at Kalurghat,
Chittagong. The shareholders were Jenson & Nicholson (J&N), Duncan
2000: In August 2000, J&N Investment (Asia) Limited UK, the majority
shareholder of the company purchased the government shareholdings.
2002: Completion of the construction work of Corporate Office building on
own land at Dhaka.
2003: Relocation of Corporate Office from Chittagong to Dhaka.
2004: Establishment of Powder Coating Plant at Savar, Dhaka.
2005: In December 2005, the company got listed with Dhaka Stock Exchange
(DSE) and Chittagong Stock Exchange (CSE).
2006: Establishment of Emulsion Plant at Savar, Dhaka.
2009: Implementation of SAP across the company.
2011: Berger Paints Bangladesh Limited signed a tri-party deal with M/S
Mitali Stone (Private) Limited and leading real estate developer Sanmar
Properties.
Berger Paints Bangladesh Limited, the absolute leader and pioneer in
introducing technology and import substitute products, has joined hands with
Becker Industrial Coatings Holding AB, Sweden, a global giant in coil
coating.
2012: Berger Paints has been awarded as the 'Best Brand' in the paint category
of Bangladesh.
BPBL recently introduced 3 international standard products.
Received top VAT payer awards.
2013: Berger Paints, the absolute market leader in Bangladesh paints industry,
has joined hands with HEMPEL, a global leader in marine coatings, to offer
the most advanced marine solutions in Bangladesh market.
Berger Paints Bangladesh Limited has been honored with the ICMAB Best
Corporate Performance Award 2012 for its outstanding accomplishment in
financial and management excellence.
2014: Berger Paints has been awarded the "Best Paint Brand" in Paints
category for the 4th time consecutively in the 6th Best Brand Award.
2015: Berger Paints Bangladesh Limited has been honored with the ICMAB
(The Institute of Cost and Management Accountants of Bangladesh) Best
Corporate Award 2014 for its outstanding accomplishment in financial and
management excellence.
Berger grew rapidly by establishing branches all over the world and through merging with
other leading paint & coating companies. Today, Berger is one of the leading companies in
the global paint industry. Berger offers all kinds of painting solutions in decorative, industrial
or marine segment for both decorative and protective purpose.
With an ever-evolving profile and rich history, Berger Paints started its business in
Bangladesh since independence. Berger is one of the oldest names in the paint industry.
Berger Paints turns ones dreams into colorful reality. It is a leader in paints, offering its
customers a variety of innovative painting solutions, weather it is decorative or industrial.
Whether it is ones home or office, shop or factory, interiors or exteriors, metal, wood, plastic
or any other surface - it has a paint solution for it.
Berger has been involved in paint business since 1950 in Bangladesh when paints were first
imported from Berger UK and then from Berger Pakistan. In 1970, Berger Paints Bangladesh
Limited (BPBL) erstwhile Jenson & Nicholson had set up its paint factory in Chittagong at
an estimated investment of TK.4 million. The shareholders were Jenson & Nicholson (J& N),
Duncan Macneil & Co Ltd and Dada Group. The name of the company was changed from
J&N (Bangladesh) Limited to Berger Paints Bangladesh Limited on 1st January 1980. In
August2000, J& N investment (Asia) Ltd purchased Government shareholding. Now, Berger
Paints Bangladesh Limited is 100% owned by J& N Investment (Asia) Limited, UK.
Berger has heavily invested in technology and Research & Development (R&D) compared to
any other manufacturer in this market. Investment in technology and plant capacity is even
more evident from the establishment of Powder Coating and Emulsion plants at the Dhaka
factory. The state-of-the-art Dhaka factory is an addition to Berger's capacity, making it the
paint giant in Bangladesh. It sources raw materials from some of the best known names in the
world. The superior quality of Berger's products has been possible because of its advanced
plants and strict quality controls that match international standards. With its strong
distribution network, Berger has reached almost every corner of Bangladesh. Nationwide
Dealer Network, supported by 8 Sales Depots strategically located at Dhaka, Chittagong,
Rajshahi, Khulna, Bogra, Sylhet ,Comilla and Mymensingh has an unmatched capability to
answer to paint needs at almost anywhere in Bangladesh.
Berger's one of the prime objectives is to provide best customer support-connecting
consumers to technology through specialized services like free technical advice on surface
preparation, color consultancy, special color schemes etc. To bolster customer satisfaction,
Berger offers Home Decor Service from where one can get an array of services pertaining to
painting. Apart from business, Berger Paints has added another dimension to its social
responsibilities by contributing to the well being of the autistic children in Bangladesh from
2009. Berger Paints Bangladesh Limited has been promoting the young and creative talents
of the country through Berger Young Painters Art Competition (BYPAC), Berger Award for
Excellence in Architecture (BAEA), Berger Award Program for the Students of Architecture
of BUET (BASAB), Scholarship Program for the students of Architecture Discipline, Khulna
University.
The core business of Berger `is manufacturing and marketing of paints, varnishes and
coatings. It produces a wide range of paints including architectural paints, industrial coatings,
marine paints and powder coatings. With a view to improving consumer satisfaction, Berger
has also introduced end-user oriented services such as color bank, home dcor, pro link and
tinting. Its wholly owned subsidiary, JENSON & NICHOLSON BANGLADESH LIMITED,
is engaged in tin container production most of which is supplied to their parent company.
Berger Paints is operating in Bangladesh since 1950s. BPBLs Corporate Office is located in
Uttara, Dhaka. It has 2 Factories one at Dhaka and the other one at Chittagong. Berger has
established 8 strategically located Sales Offices throughout the whole country. A wide
distribution channel reaches the whole country with a network of almost 1000 dealers. The
table will give us a clear idea about the company in brief:
1.
Origin
: United Kingdom
2.
Registered Office
3.
Corporate Headquarter
: Berger House
Plot 8, Road No.-2
Uttara Sector 3, Uttara Model Town
Email: info@bergerbd.com
Web: http//www.bergerbd.com
4.
Factory
5.
Plant
6.
Home dcor
: Bonani, Dhaka
: Email: dcor@bergerbd.com
7.
Sales office
The vision and mission of Berger Paints Bangladesh Ltd. (BPBL) is very transparent and
tangible. Berger emphasize highly on the ethical commitment to produce benchmark Quality
product. The vision and mission statement of the company is:
Vision:
The vision of Berger is the following
Mission:
Organizations mission refers to managements customized answer to the
question what is the business of the company and what will it be. A mission
statement broadly outlines the organizations future direction and serves as a
guiding concept for what the organization is to do and to become. The mission
of Berger in Bangladesh is the following:
Commit to continue as the market leader through consistent sales growth, increasing
productivity and developing new products befitting consumer needs.
Set measurable targets at appropriate stages and shall continuously monitor them.
Network..
World-class range and durability, BERGER is always ready to answer to all
weather conditions.
Berger is striving for the improvement of Quality of Work Life (QWL) with
competitive advantage.
Handling all these areas, ensure us a better Working capital management and efficient
financial management on day to day basis. Minimizing risk and maximizing net
return of all stakeholders are the key focus of BPBL Finance and Treasury team by
ensuring good corporate governance and practice.
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Sales department is consists of Decorative and Industrial & Marine. It mainly deals with
preparing National Sales Budget detailing sales value, volume & growth and translates it into
monthly and half-yearly budget. Sales department express the national sales budget in terms of
Sales Area, Zone, and Product & Shades of Color.
Financial Controller is responsible for all the activities of this section. This section handles
absolute debtors (customer related) related all activities which are done through:
This department continuously works to identify new sources of raw materials & machinery.
They communicate with the sources and collect information regarding price, quality, terms
and conditions of payment & other relevant matters about raw materials and machinery.
They buy raw materials, machinery & other necessary items from both internal (domestic)
and external sources.
This department tries to develop new vendors in areas where they are in disadvantageous
position to gain adequate bargaining power.
Provide new ideas regarding raw materials, packaging, and machinery and help to reduce
cost.
Buys shade cards for Marketing Department from India & Singapore.
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Fig: Main task of Supply Chain Department.
Berger Paints Bangladesh Limited regularly conducts internal audit for all of its
business units. These audits cover production facilities, research and development
activities, selling and marketing activities, supply chain functions, human resources
and administration, financial management systems, information systems, sales centers
and dcor service activities. A team of auditors conduct the internal audit in two
phases.
The first phase comprises of a periodic review of all the business units.
The second phase involves the assessment of business units that require immediate
attention to measure effectiveness, efficiency and economy.
include
advising
and
recommending
senior
management
for
Production of paints and coatings is the core business of Berger. Berger produce a
wide range of paints including decorative/architectural paints, industrial coatings,
marine paints and powder coatings. Berger paints operate in three major segments of
the paint industry. These are:
Decorative.
Industrial.
Marine.
The decorative segments of the market accounts for a whopping 83.42% of the total
industry, whereas industrial, marine segments contribute 12.17%, and 4.41%,
respectively.
5
6
7
8
Berger Decorative is the major revenue earning business area of Berger Paint
Bangladesh Limited. This business mainly targets household segment. Products are
being offered to the consumers through a dealer network. Products fulfill the aesthetic
value of the consumers. The objective is to beautify the surfaces with protection from
corrosion and erosion. Premium emulsions, regular acrylic emulsions, distempers, first
quality enamels, exterior finishes, textured finishes, automotive refinishes BERGER,
the premier paint company in Bangladesh, have leading brands in all these categories.
BERGER also leads in a vast range of other formulations: Stoving paints, chlororubber based enamels, epoxies, silicone heat resistant paints.
Color bank
Premier/
undercoat /thinner
10
11
12
13
14
Berger Color Bank has made it possible for their customers to choose the color of their
dreams. It is an innovative computerized color dispensing solution that allows them to
choose from an astounding range of unlimited shades for interior and exterior walls.
15
16
17
18
This is a different segment of Bergers wide range of paints mostly used for the
industries both as raw materials and as protective paints for the equipments and
buildings. Berger industrial paint is the economy brand of industrial paints.
20
Very soon an Industrial manual will be available in this site which is a guidebook to the
exhaustive range of products offered from Berger Paints. Soon youll find, as you start
using this book, that Berger has an answer to almost each of your need when it comes
to painting.
Industrial finishes
High productive
coatings
21
22
23
25
24
Industrial premiers
These products give protection to the surfaces in extreme situations like severe
hazardous
machinery etc. Berger use direct marketing approach to promote the Industrial
Coatings. Main customer groups: Garments Factories, Chemical Plants, Fertilizer
Manufacturing Plants, Consumer Durable Manufacturing Plants etc.
Bangladesh is a riverside country with a large no. of big & small rivers and their
tributaries. Moreover, it has a large sea coastal area with Bay of Bengal. Because of this
facility a good proportion of transportation is being done by sea & river. Bay of Bengal is
well known for its fish reserves. Our fishing trawlers & boats are engaged in fishing in
Bay of Bengal. We have two sea-ports and a good no. of river ports. A good no. of ships
are coming to and going out from these seaports. Large no. of sea-coasters, launches,
trawlers, barges, and country boats (powered and unpowered) are plying everyday
through sea-coasts and rivers.
27
So huge activity could be seen in sea-ports, river- ports, dockyards & dry-docks. Besides
there are shore and off-shore constructions, Pontoons, Buoys, oil/gas rigs, underground or
underwater pipelines. To cater to the need of maintaining these vessels & other
constructions Berger has introduced a wide range of Marine paints suitable to withstand
rigorous marine weather both at sea & sea-coasts and also at river & river-ports. Berger is
here to help you choose the kind of protection you need for your belongings. The marring
products of Berger are divided in.
28
Thinners
Premiers
Special Coatings
Marine market is mostly concentrated in Dhaka and Chittagong. Products are being
offered mainly through direct marketing approach. Dock Yards, Bangladesh Navy,
Passenger Ships are the main user groups.
29
30
For the first time in Bangladesh, Berger Paints brings Berger illusions, a range of designer
wear for your walls. Berger illusions are not just paint. Its a whole new lifestyle for your
walls. Unique designs with thousands of color options from Berger Color Bank, giving
one an unlimited variety of unique designs to choose from.
31
32
33
34
Major categories
36
Brand name
35
Synthetic enamel
38
41
Interior emulsion
40
42
43
Exterior emulsion
45
Weather coat
44
46
Distemper
48
47
49
Cement paint
50
Durocem
51
54
Berger marine
56
Supracoat
37
52
53
55
Adhesive
Powder coatings
57
58
59
Auto refinishing.
Wood coatings.
BreathEasy.
make it a double digit. Their growth rate is 15%-16%, which may vary year to year, but
after operating for lots of years they are now stabilizing.
Chapter 4
(Theoretical
Framework)
Testing
When the recruiter has narrowed down the pool of applicants, he invites applicants to
take basic tests. These tests are additional tools the company uses to determine if the
applicant has the knowledge and competence necessary to do the job. The test may be
hands-on or oral, but more often it is written.
Interview
When a company has a pool of applicants that are qualified, experienced and who
score well on aptitude tests, managers set up interviews. The interview gives the
managers a chance to get a sense of what each candidate is like and talk with each
applicant in depth about his experience and qualifications. Interviews are very
important because they show the managers how the employee might interact with
others on the job and how professional he can be.
negotiate a salary and handle the formal aspects of hiring, such as filling out human
resources paperwork.
Objectives of Recruitment
Recruitment fulfills the following objectives:
1. It reviews the list of objectives of the company and tries to achieve them by
promoting the company in the minds of public.
2. It forecasts how many people will be required in the company.
3. It enables the company to advertise itself and attract talented people.
4. It provides different opportunities to procure human resource.
The internal factors also called endogenous factors are the factors within the
organisation that affect recruiting personnel in the organisation. Some of these are
mentioned here.
a. Size of the Organisation:
The size of an organisation affects the recruitment process. Experience suggests that
larger organisations find recruitment less problematic than organisations with smaller
in size.
b. Recruiting Policy:
The recruiting policy of the organisation i.e., recruiting from internal sources (from
own employees) and from external sources (from outside the organisation) also
affects recruitment process. Generally, recruiting through internal sourcing is
preferred, because own employees know the organisation and they can well fit into
the organisations culture.
c. Image of Organisation:
Image of organisation is another internal factor having its influence on the
recruitment process of the organisation. Good image of the organisation earned by a
number of overt and covert actions by management helps attract potential and
competent candidates. Managerial actions like good public relations, rendering public
services like building roads, public parks, hospitals and schools help earn image or
goodwill for the organisation. That is why blue chip companies attract large number
of applications.
d. Image of Job:
Just as image of organisation affects recruitment so does the image of a job also.
Better remuneration and working conditions are considered the characteristics of
good image of a job. Besides, promotion and career development policies of
organisation also attract potential candidates.
2. External Factors:
Like internal factors, there are some factors external to organisation which has their
influence on recruitment process.
Some of these are given below:
a. Demographic Factors:
As demographic factors are intimately related to human beings, i.e., employees, these
have profound influence on recruitment process. Demographic factors include sex,
age, literacy, economic status etc.
b. Labour Market:
Labour market conditions i.e., supply and demand of labour is of particular
importance in affecting recruitment process. For example, if the demand for a specific
skill is high relative to its supply, recruiting employees will involve more efforts. On
the contrary, if supply is more than demand for a particular skill, recruitment will be
relatively easier.
In this context, the observation made by 11PM in regard to labour market in India is
worth citing: The most striking feature in the Indian Labour market is the apparent
abundance of labour yet the right type of labour is not too easy to find.
c. Unemployment Situation:
The rate unemployment is yet another external factor having its influence on the
recruitment process. When the unemployment rate in a given area is high, the
recruitment process tends to be simpler. The reason is not difficult to seek. The
number of applicants is expectedly very high which makes easier to attract the best
qualified applicants. The reverse is also true. With a low rate of unemployment,
recruiting process tends to become difficult.
d. Labour Laws:
There are several labour laws and regulations passed by the Central and State
Governments that govern different types of employment. These cover working
conditions, compensation, retirement benefits, and safety and health of employees in
industrial undertakings.
Child Labour (Prohibition and Regulation) Act, 1986, for example, prohibits
employment of children in certain employments. Similarly, several other acts such as
Employment Exchange (Compulsory Notification of Vacancies) Act, 1959, the
Apprentices Act, 1961; die Factory Act, 1948 and the Mines Act, 1952 deal with
recruitment.
e. Legal Considerations:
Another external factor is legal considerations with regard to employment.
Reservation of jobs for the scheduled castes, scheduled tribes, and other backward
classes (OBCs) is the popular example of such legal consideration. The Supreme
Court of India has given its verdict in favour of 50 per cent of jobs and seats. This is
so in case of admissions in the educational institutions also.
f. Competition
Companies within the same industry are competing for qualified candidates to ensure
future growth. There is competition in the recruiting end of your business just as there
is in selling products. You need to analyze what your competition is offering new
employees, and try to develop a competitive package to lure in the talent that you
need.
Sources of Recruitment
A) Internal Recruitment
B) External Recruitment
Internal Recruitment - is a recruitment which takes place within the concern or
organization. Internal sources of recruitment are readily available to an organization.
Internal sources are primarily three - Transfers, promotions and Re-employment of
ex-employees. Re-employment of ex-employees is one of the internal sources of
recruitment in which employees can be invited and appointed to fill vacancies in the
concern. There are situations when ex-employees provide unsolicited applications
also.
Internal recruitment may lead to increase in employees productivity as their
motivation level increases. It also saves time, money and efforts. But a drawback of
internal recruitment is that it refrains the organization from new blood. Also, not all
the manpower requirements can be met through internal recruitment. Hiring from
outside has to be done.
Internal sources are primarily 3 types:
a. Transfers
b. Promotions (through Internal Job Postings) and
c. Re-employment of ex-employees - Re-employment of ex-employees is one of the
internal sources of recruitment in which employees can be invited and appointed to fill
vacancies in the concern. There are situations when ex-employees provide unsolicited
applications also.
External Recruitment - External sources of recruitment have to be solicited
from outside the organization. External sources are external to a concern. But it
involves lot of time and money. The external sources of recruitment include Employment at factory gate, advertisements, employment exchanges, employment
agencies, educational institutes, labour contractors, recommendations etc.
a. Employment at Factory Level - This a source of external recruitment in which the
applications for vacancies are presented on bulletin boards outside the Factory or at the
Gate. This kind of recruitment is applicable generally where factory workers are to be
appointed. There are people who keep on soliciting jobs from one place to another. These
applicants are called as unsolicited applicants. These types of workers apply on their own
for their job. For this kind of recruitment workers have a tendency to shift from one
factory to another and therefore they are called as badli workers.
b. Advertisement - It is an external source which has got an important place in recruitment
procedure. The biggest advantage of advertisement is that it covers a wide area of market
and scattered applicants can get information from advertisements. Medium used is
Newspapers and Television.
c. Employment Exchanges - There are certain Employment exchanges which are run by
government. Most of the government undertakings and concerns employ people through
such exchanges. Now-a-days recruitment in government agencies has become
compulsory through employment exchange.
d. Employment Agencies - There are certain professional organizations which look
towards recruitment and employment of people, i.e. these private agencies run by private
individuals supply required manpower to needy concerns.
e. Educational Institutions - There are certain professional Institutions which serves as an
external source for recruiting fresh graduates from these institutes. This kind of
recruitment done through such educational institutions, is called as Campus Recruitment.
They have special recruitment cells which helps in providing jobs to fresh candidates.
f. Recommendations - There are certain people who have experience in a particular area.
They enjoy goodwill and a stand in the company. There are certain vacancies which are
filled by recommendations of such people. The biggest drawback of this source is that the
company has to rely totally on such people which can later on prove to be inefficient.
g. Labour Contractors - These are the specialist people who supply manpower to the
Factory or Manufacturing plants. Through these contractors, workers are appointed on
contract basis, i.e. for a particular time period. Under conditions when these contractors
leave the organization, such people who are appointed have to also leave the concern.
Selection Process
Employee Selection is the process of putting right men on right job. It is a procedure
of matching organizational requirements with the skills and qualifications of people.
Effective selection can be done only when there is effective matching. By selecting
best candidate for the required job, the organization will get quality performance of
employees. Moreover, organization will face less of absenteeism and employee
turnover problems. By selecting right candidate for the required job, organization will
also save time and money. Proper screening of candidates takes place during selection
procedure. All the potential candidates who apply for the given job are tested.
But selection must be differentiated from recruitment, though these are two phases of
employment process. Recruitment is considered to be a positive process as it
motivates more of candidates to apply for the job. It creates a pool of applicants. It is
just sourcing of data. While selection is a negative process as the inappropriate
candidates are rejected here. Recruitment precedes selection in staffing process.
Selection involves choosing the best candidate with best abilities, skills and
knowledge for the required job.
candidates such as details about age, qualifications, reason for leaving previous job,
experience, etc.
3. Written Examination and others Selection Tests- Various written tests conducted
during selection procedure are aptitude test, intelligence test, reasoning test, personality
test, etc. These tests are used to objectively assess the potential candidate. They should
not be biased.
4. Comprehensive Interviews- It is a one to one interaction between the interviewer and
the potential candidate. It is used to find whether the candidate is best suited for the
required job or not. But such interviews consume time and money both. Moreover the
competencies of the candidate cannot be judged. Such interviews may be biased at times.
Such interviews should be conducted properly. No distractions should be there in room.
There should be an honest communication between candidate and interviewer.
5. Medical examination- Medical tests are conducted to ensure physical fitness of the
potential employee. It will decrease chances of employee absenteeism.
6. Checking the references: Past performance is often the best predictor of future
performance, the best way to verify an applicants background and job suitability is to
conduct a thorough reference check.
7. Final employment dececision: After the final interview, panel members
should compare their ratings and judgements (and any scoring system
agreed prior to the interviews) amongst themselves. It is preferable to review
candidates and their performances immediately after the interview process
whilst the information is still fresh in the minds of the panel. All discussion
should be supported by assessment evidence - not just personal impression.
Candidates should be rated against the agreed and specified criteria and not
against each other.
Chapter: Five
Recruitment and Selection of
Berger Paints Bangladesh
Limited
Recruitment
Recruitment Philosophy
At Berger, we recruit the appropriate candidate matching the company's HR
requirements in terms of necessary qualifications, experience, attitudes and values.
We believe that the Company can only remain competitive and maintain a lean and
flat organization provided we are selective in our recruitment of people. We look
forward to qualities such as a quest for excellence and unadulterated passion for work
in prospective employees. Other competencies that we appreciate in an ideal
candidate and try to inculcate in our employees are:
Leadership
Leadership is an attribute that doesn't come with designation or experience. At
Berger, all of us, irrespective of age or profile are leaders in our own right. We are
faced with challenges every single day, where we stumble, yet continue to learn from
each other. We own up, take responsibility and get it done. And therefore, every day
is an opportunity to make it what we want it to be.
Commitment
At Berger, apart from the body, mind and heart, people even get their soul to work.
And by choice work here is not a nine to five chore. It is what defines us and we love
what we do. This is important to belong and have fun and if this is your philosophy of
work culture, we would be glad to have you.
Solution provider
We understand that there is an efficient way out of every problem and that it can be
solved with strategy, action or advice. We, as an organization and as employees, focus
on the solution rather than the problem. And if this is your mindset, then you belong
here.
Energy
If there is one defining characteristic of all people working at Berger Paints around
the world, it is the energy. The vigor is infectious and is visible in our work, in our
Integrity
Berger fosters a sense of responsibility in its entire people who do what they do with
utmost honesty. You are not bundled under layers of management which ensures that
there is absolute transparency in the system. Integrity being high on your list of
priorities shows your application in a positive light.
Sources of Recruitment
Berger Paints in Bangladesh uses both internal and external sources for recruitment
and selection purposes. In Barger Paints internal sources of recruitment is done for
higher level managerial positions which is also known as lateral level recruitment.
Berger Paints use external sources of recruitment for entry level positions which is
also known as entry level recruitment.
A) internal sources: internal sources of recruitment are:
a. Transfers
b. Promotions (through Internal Job Postings) and
c.
Re-employment of ex-employees
Level of Recruitment:
The process of Recruitment & Selection that is followed in Berger in the two levels
of recruitment:
specialist may probe further into the applicants experience and interpersonal skills,
the purpose of this interview is to narrow the field of applicants to send for
consideration by the hiring manager.
3. Written examination and other Test: Various written tests conducted during
selection procedure are aptitude test, intelligence test, reasoning test, personality test,
etc. These following tests are done to objectively assess the potential candidate in
Berger Paint in Bangladesh.
a) Written test: at first the candidates have to give a written test comprising both
MCQ and analytical questions. The test is of 100 marks.
b) Group discussion: After the written test the employee have to attend a group
discussion. Here applicants are divided into several teams and topics are given to
discuss. Here the ability to work in a team as a team member is observed in a
candidate.
c) Role playing: After the group discussion the candidates are set to do role playing.
A topic or problem or situation is given by the employer to applicants for role
playing. The applicants are asked to solve the problem and give a power point
presentation playing different roles within 1 hour.
Each of the tests are evaluated independently and few candidates are chosen by
averaging the numerical value of each test for the final employment interview.
4. Employment interview: If the candidates pass the day long tests a final interview
is taken by the top level executives and managers. It is a one to one interaction
between the interviewer and the potential candidate. It is used to find whether the
candidate is best suited for the required job or not. By this interview the employment
decisions are made by the organization.
5. Medical examination: after the employment interview a medical tests are
conducted to ensure physical fitness of the potential employee.
the
5.1.3
Product decision:
In terms of product decision there are many factors that appears to be important. In
this section the factors that individual/company can focus on are described below Quality Product:
They produce the highest quality of product through the most scientific techniques
and machines. Following the procedure of modified rebuy they import materials from
Indonesia, Malaysia, India, and Thailand. Their R&D departments invention to
produce a new product ensures the highest quality in the field.
Attractive Product features:
BERGER offers so many features that attract customers to purchase the product
without thinking. The main important features are:
Berger Colorbank introduces a global way to paint with an unlimited choice of shades to
match ones taste-instantly. Every Berger Colorbank store has a computerized color
tinting machine to help choose and get shades from world-class range of paints. There is
already installation of more than 1300 tinting machines in Berger Colorbank stores across
the country. Colorbank can produce any color of ones imagination with in 5 minutes from
5000 shades.
Their commitment /service to the customer really amazing. During all these years the
reputation they made attracts the people to have faith on them as they constantly
producing the high quality product with their best effort.
BERGER is a multinational company operating in Bangladesh registered in UK. They
are operating for 230 years, this long years relationship with the people keeps them to be
number one.
The design of the product:
Their R&D department design the product based on the weather of our
country. Painting parameter like thinning ratio, drying time, and viscosity are
also considered because they are core for producing high quality paint.
Information search
Sent to R&D
The given outlay will give a view about the product life cycle:
Product
Se
Comments
Stage
name
1.
2.
Wood
High quality,
Introduct
Keeper
luxurious product
ion stage
Robbial
High quality
Growing
ac
stage
upper level of
people
3.
Plastic
High quality
Maturity
emulsio
product
stage
Economy product
Decline
n,
distemp
er
Wood
4.
Vernish
stage
Sales &
Plastic
Profit(s)
emulsion
vernis
Robbialac
Wood
Wood
Sales
Profit
keepe
Time
Product
introductionGrowt
h
Development
stage
Lossesinvestment(
s)
Maturit
y
Decline
BERGER sells its products to consumers through direct dealers. The firm has no
dealing with wholesalers, retailers or jobbers. The dealers can wholesale or retail the
product. The total process is shown on the following chart:
Berger
Customer
Feedback
Product
Feedback
Depots
Retail
Feedback
Product
Wholesale
Direct
Dealer
Customer
Feedback
Fig: Distribution Process.
Customer
Berger
Direct
dealer
Customer
Indirect Channel
5.1.3.3 Pricing:
Price, the important factor for buying any product, is the amount of money charged
for a product or service. It is one of the important elements of marketing process.
Berger follows dynamic pricing. They charge different prices depending on
individual customers and situations and it is flexible. Berger serve the people of
Bangladesh, high quality products with high price . They dont consider all levels of
peoples. Say, if the competitors market a product in low price, Berger didnt market
the same product in same price because ensures the quality and considers average
growth and resources.
Before setting price of the product Berger consider various types of
factors which affects the price. These are:
Internal factors,
External factors.
One of the important factors is in new segment Berger target to launched new products in
new segment with new features. For example: Berger doesnt always market new products
because if they launched new products because there is a possibility to be copied by the
competitors then expense will higher than revenue.
Berger is offering high quality product for middle to higher class people so they doesnt set
the price in competitors level because of durability , reliability & quality .
For example: Berger luxury silk emulsion etc.
For several types of products Berger target to maximize current profit. For those products
which have highest demand in the market .For example : wood keeper a commercial
product
If the product is existed in the market then Berger try to add new features and market that
product in new segment. Extra feature increase the cost and also vary the segmentation.
Their long term objective affect pricing like for survival in the market they sometime set
prices at competitors level but not all types of product.
Price also depends on design and performance and Berger always offer a new product with
different performance this add customer value.
For example: with 1 can how much space a customer can paint and the durability
of color.
Base on branding Berger also launched new or modified product in a new category.
For example: The Color bank product is for higher level customer of the
society. Who are always wanted to get something exceptional? And Robbiolac
super gloss enamel is for those who want better quality with durability.
Berger also target to increase the distribution net. It also increases the sales of products and
increase the distribution cost.
To meet up customer consideration Berger produce product for commercial use. For
example: the customer of wood keeper uses this paint for commercial purpose. If the
durability of this product is 5 years usually it will increase the product cost then demand will
decrease. It will be perfect for them when the durability will 1 year with good quality.
Berger chose a price that both covers all its costs for producing, distributing, selling
and rate
Return. After determining prime cost and adding overhead the company
determine the
Production cost. Fixed will hamper if the demand of the product will decrease. It will
have negative impact in pricing. Company management always want average sales of
their product because a company must pay each months executive salary, bills, heat
rent etc.
Under External factors there are Berjer considers the following facts:
Berger faces oligopolistic competition; there are few companies who are
sensitive to each others pricing and marketing strategies. Berger serving large
number of buyers and it is difficult for a new sellers to enter into the market
.Berger occupy 50% market from 100% in Dhaka and other 50% from other
district. There is no chance of pure monopoly.
We know the main target of Berger is to serve high quality product but not in
competitive price. Customer always wants to get something extraordinary. If price
is little bit higher but the product performed as consumer test then consumer are
ready for extra pay. After analyzing the economic condition of people, their earning
source i.e. After market analyze company analyze how much value customer place
on the benefits they receive from the product and setting a price that fits this value .
For different types of product Berger use different types of pricing approach. Like
cost based
Pricing and value based pricing.
For new product: Berger lunched new products with new features with high quality its
usually increase the production cost so they market the product in higher price & cover the
expense getting revenue from segment .
For product mix: Berger offers different product with different performance in new category
within various price ranges. Then customer can evaluate different features of product as their
cost.
Cash discount: Berger gives chance to the buyer, price reduction in product for receiving
bills properly.
Quantity discount: If buyer buy large volumes of product then Berger give them this
discount.
Allowances: Berger gives trade in allowances for turning in an old item when buyers by a
new product .they also give promotional allowances for rewarding dealers for participating in
advertising & sales support programs.
5.1.3.4.1 ADVERTISING
In this part I will discuss the advertising of BERGER, a paid from of non-personal
presentation and promotion of ideas, goods or services buy an identified sponsor.
TRADE PROMOMTION
CONSUMER PROMOTION
# Advertising strategy: BPBL follows different strategy for developing its strategy. It
depends on some characteristics that is product life time, brand etc.
# Media: BPBL used different media for advertising like- on-air advertisement,
television, newspaper, magazines, radio & neon-sign etc. Everyday radio telecast a
program at 12:30 pm. named Parrot Pea-cock Prioy Pochondo.
5.1.3.4.2 SALES PROMOTION
#Premium: the BERGER CO. offers no premium for its customer or seller.
#Advertising specialty: Yes, BERGER co. maintain the advertising specialty because
they have various type of brand & their customer also vary.
#Discount & Allowance: Obviously, BERGER provides discount &allowance for the
seller to increases the sale.
Press relation: To draw the attention & attracting the person to inform about the product
maintain the direct relationship with the general customer & the potential customer.
Public affairs: BERGER co. recently added the new public affairs services for its
#Tele marketing: BERGER do not sale on over telephone but now they are thinking
about this.
#online marketing: They do not provide this service for the customer but they have
web site
#Credit sell: BERGER co. doesnt sell on credit. They sale products on cash basis.
#Tutorial sales force structure: Actually this co. doesnt apply any sales person to sell
its product.
#Relationship marketing: The BERGER co. follow the relationship marketing to
maintain & enhancing strong value laden relationship with its customer & other
stockholders.
#Praline: Its a separate wing. That engaged in communicating the officer, dealer,
developer & architect.
Experienced top
Good profitability.
management.
Global experienced of
Berger.
Strong solvency.
Wide distribution of
network.
Satisfactory MIS.
Weakness
Exposed of currency risk.
Concentrated ownership
pattern.
needing.
Human intervention.
generation.
Opportunities
Increasing demand on
paints.
value addition.
Growing market.
Threats
Emergence of
competitors.
After SWOT analysis the company makes its strategies for its product and
service. By managing marketing effort properly BPBL has achieved a significant growth in
sales:
Segmentation of products.
Target market selection.
Positioning their product.
Before segmentation their product Berger segments its business through the
year. Generally the summer and winter is the peak season not only for Berger
but also every paint producer. October to June is peak season and July to
September is the lean season for the paint industry in Bangladesh, which is
related to weather conditions.
The peak and lean months of the year, on the basis of the seasonality of the
paint market, is as follows:
Month/
period
January
Peak
February
Peak
March
Peak
April
Peak
May
Peak
June
Peak
July
Lean
August
Lean
September
Lean
October
Peak
November
Peak
December
Peak
Conditions
1) Decorative.
2) Industrial.
3) Marine.
into three segments. These are: decorative segments of the market accounts
for a whopping 83.42% of the total industry, whereas industrial, marine
segments contribute 12.17%, and 4.41%, respectively.
the industry. The enamel segment accounts for around 50% of the decorative
paint market by value and approximately 40% by volume.
Berger designs the companys offerings and image to occupy distinctive place
in the mind of the target market. For positioning in the mind of the target
market Berger has differentiated its variables.
Every company in the service market differentiates their service to be the best
service company and capturing most of the market share. Berger differentiates
its service comparing to the other competitors. These are
Ordering ease
Ordering ease of Berger refers to how easy it is for the customer to place an
order to the company. So they introduce the online service in case of order. So
the customer can order and receive its product without going to market.
F re
e
S e r
v ic
e
P a i
d
S e r
v ic
e
B
D
t
s
e rg e r H o m e
e c o r o ff e r s
w o -s ta g e
e r v ic e s :
Paint selection.
Dealer selection.
Color scheme.
Channel distribution:
Berger has achieved competitive advantage through the way they design their
distribution channels coverage, expertise and performance. With its strong
distribution network, Berger has reached almost every corner of Bangladesh.
Their nationwide dealer network, supported by
factory
factory
Dhaka
Depot
Khulna
Depot
Rajshahi
Depot
Bogra
Depot
Comilla
Depot
Sylhet
Depot
Chittagong
Depot
Direct Dealers
Direct Dealers
Indirect dealers
Indirect dealers
Indirect dealers
End
Users
Courtesy, friendly.
Reliability.
Responsiveness.
Communicating ability.
Berger has taken many powerful marketing strategies to build a high image in
the market. It has strong slogan and symbols to identify image powerfully.
Social responsibility
Berger paints organizes Young Painters; Art Competition and also introduced
Young Architects Award from 2003. The company regularly contributes to a
number of causes and social welfare institutions through donations and
sponsorships. These efforts results in a better image for BPBL, as minds of the
general public, who are, after all, consumers of their products.
Berger Paints Bangladesh Limited has been patronizing art for more than a
decade. In continuance of its commitment, Berger Paints has been organizing
Young Painters' Art Competition (BYPAC) since 1996. This particular
initiative of Berger Paints has highly encouraged the young aspiring artists of
Bangladesh.
Every year, young painters from different parts of Bangladesh participate in
the competition. The winners are selected by a Jury board comprising of
prominent
artists
of
the
country.
For the past two years Berger Paints has also been giving Lifetime
Achievement Award to venerated artists for their immense contribution and
influence in the field of art of Bangladesh.
Scholarship Program for BUET students:
From 2011, Berger Paints will provide scholarship for the students of
Architecture Discipline of Khulna University. Besides, Berger will also
Berger Paints has provided a donation of Taka Three lakhs to the Prothom Alo
Trust for Assistance of Acid Victims, as a part of the company's corporate
social responsibility. The Daily Prothom Alo, the leading national daily
newspaper, has founded the trust as an initiative for support and assistance for
women who have been victims of acid violence.
Berger Paints Bangladesh Ltd. is operating as the market leader and enjoying
almost 55% of national paint market share. The nearest competitor is Asian
Paint, Who resides far below the market leader in aspect of market share. The
following Table shows the present market share of different companies in
paint industry of Bangladesh:
Compan
Mark
ies
et
Share
55%
11%
Paints
Roxy
7%
Paints
Elite
6%
Paint
Pailac
5%
Others
16%
Total
Berger
Paint
Banglad
esh
Limited
Asian
100%
The following table and pie diagram show the present market share of
different companies in the paint industry in Bangladesh.
16%
berger paints
asian paints
5%
6%
7%
11%
roxy painst
55%
eliste painst
pailac painst
others
Where a highly innovative product is launched, research and development costs are likely
to be high, as are the costs of introducing the product to the market via promotion,
advertising etc. This strategy was carried out by Berger for the product named Rust
blaster which is mainly used for decapitating rust from steel. This product is highly
innovative and only launched by Berger, so the charged price is high for huge product
promotion and marketing. This strategy is having positive impact for this product.
By charging high prices initially, a company can build a high-quality image for its
product. Charging initial high prices allows the firm the luxury of reducing them when
the threat of competition arrives. For providing high quality product Berger charges high
price for its products. This strategy is also helping them to eliminate competition in
because other competitors are also providing good products but in terms of creating
image of providing good quality Berger is step ahead.
Maintain or increase the market share of current products this can be achieved by a
combination of advertising, sales promotion and perhaps more resources dedicated to
personal selling. This strategy is implemented by Berger through providing samples of
different colors, advertising through banners and poster and also doing personal selling
by using sales force to provide customers more insight on different products.
Berger also has products with low price criteria. These products are also of high quality
and designed to target those customers who are price cautious; such as- Robbialac
Acrylic Distemper (SPD), Robbialac Acrylic Plastic Emulsion (APE), Jhilik Synthetic
Enamel (JSE). Berger is also creating awareness among the customers that they also
have products within low price range with high quality. Many customers are using these
Berger products for their houses.
Berger is also using this strategy for attracting more customers into their profile. They
are offering various loyalty schemes, such as: price discount, coupon etc. By this
strategy they are keeping good consumer relationship with consumers and also with the
dealers by proving discount on bulk purchase, annual prize giving etc.
For increasing sales more than competitors, Berger is providing coupons with every
product and the coupons include various prizes.
Berger organizes different seminar and training campaigns for painter and dealers where
they help them to provide proper in-sight for using existing and new paint products. By
this campaign Berger is establishing good relationships with dealers and painters and also
encourages them to use their products.
Berger is also following competitive based pricing, if the price of the product of
competitors is reduced they also reduce the price as counter strategy.
Berger is also doing more advertising through print and electronic media than the
competitors to create more awareness for target market.
For motivating dealers for suggesting their product to the customers and painters, they
are proving different sort of attractive incentives for dealers than its competitors which is
really helping them in many ways.
Berger uses personal selling more effectively than its customer for creating more
awareness for their product on its quality, price range, variety etc which is helping them
to create more customer base.
Chapter Six
Conclusion &
Recommendation
6.1 Conclusion:
From study and observation, it can easily be predicted that Berger Paints
Bangladesh Limited is clearly a market leader in paint industry and they have
expanded their business globally. They are determined to play a leading role
in the development of Bangladesh. They have worked towards building a
strong foundation and establishing a professional corporate identity. BPBL are
the pioneer which will be respected for its achievement, professional ethics
and innovative concept. They have always believed in sustainable growth of
their company because their fundamentals are very strong. BPBL has
achieved this position by ensuring better quality product and evolving
marketing strategy. The major issues that I have observed in BPBL regarding
marketing strategy are given below:
them.
BPBL also contribute in the GDP growth of Bangladesh.
Each and every suggestions of their value customer is greatly emphasized at every phase
of the project.
Since the customer satisfaction is the main motto that creates generation by generation
customers, their marketing department always stand beside the customers to provide the
best possible friendly service.
Unrelenting efforts of their employees are building the confidence of their customer.
6.2 Recommendations:
BPBL should implement the best service providing strategy that will ensure more value
for the existing & target customers.
Sales and marketing department of BPBL should encourage career development of the
employees. By doing so, BPBL will be able to increase the performance of the
employees.
BPBL should wishes to the clients in different occasion. It will create extra value for the
clients and make them more pleased and positive about the company.
BPBL direct marketing effort must be implemented more precisely and elaborately to
ensure maximum market coverage both for existing and proposed clients.
References: