Asian University of Bangladesh

Internship Report
On
Marketing Activities of Pran RFL Plastic
Company Ltd

SubmittedTo:
Md. Abdul Kader
Asst. Professor
Department of Business Administration
Asian University of Bangladesh

Submitted By:
Md. Sohag Matubbar
ID: 201820721
Batch: 52th
Major: Marketing
Program: MBA

Date of Submission: 19/12/2019

1
 Dedication

Dedicated to my beloved parents & all of

my teachers

2
 Letter of Transmittal
Date: 19.12.2019

Prof. Abdus Salam

Dean
School of Business
Asian University of Bangladesh
Uttara, Dhaka-1230.

Subject: Submission of the Internship Report on “Marketing Activities of Pran RFL

Plastic Company Ltd”

Dear Sir,
I would like to inform you that, I have completed the internship report in compliance with your
skillful guidance and cordial supervision.

I had privileged of working Pran RFL Plastic Company Ltd, Pran RFL Group, Uttara zone,
Dhaka-1230. I have worked here on Marketing activities only.

I sincerely believe that the findings of this report will be immense to help the academic
references ; and for any explanation or clarification of any aspect of this report, please make me
oblige by calling me directly. I sincerely hope this report will receive your approval.
Yours Sincerely,

Md. Sohag Matubbar

ID: 201820721
Batch: 52th
Major: Marketing
Program: MBA

3
 Student Declaration

I am Md. Sohag Matubbar, a student of Masters of Business Administration (MBA), School

of Business, Asian University of Bangladesh. I am declaring that this report on the topic of
“Marketing Activities of Pran RFL Plastic Company Ltd” has only been prepared for
internship program as the partial requirement of the degree of the Masters of Business
Administration (MBA).

………………………….
Md. Sohag Matubbar
ID: 201820721
Batch: 52th
Major: Marketing
Program: MBA

4
 Supervisor Certificate

This is to certify that Md. Sohag Matubbar bearing ID No. 201820721, of MBA (Major
Marketing) program, Asian University of Bangladesh, has successfully completed three months’
internship program and prepare this report under my supervision and guidance. To the best of
my knowledge, he has prepared this report with this learning from internship; and all the
information that he has used is authentic and from reliable sources .

I wish him every success in life.

Md. Abdul Kader

Asst. Professor
Department of Business Administration
Asian University of Bangladesh

5
 Acknowledgement

At first, I would like to express my gratitude to Almighty Allah for enabling me the strength and
opportunity to complete the report in the scheduled time successfully.

I would like to acknowledge the assistance of my internship supervisor Md. Abdul Kader, Asst.
Professor, Department of Marketing, Asian University of Bangladesh His sincere guidance,
untiring co-operation, valuable advice and endless inspiration enabled me to overcome all the
quandaries that cropped up during the course of my internship program and preparing this report.

I take the opportunity to express my sincere gratitude and respect to Md.Mamun Billah,
Executive Officer, Foreign Exchange Division who introduced me all the employees and
suggested them to co-operate me.

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 Executive Summary

PRANRFL Group is one of the leading companies in Bangladesh which has by

now merged with several different products. They have so far spread their business
in various countries all around the globe and are continually expanding

Their ventures. They have ten factories in Bangladesh and are taking initiatives to
open factories outside the country also. More over, they have electronics business
and are promoting their products including RFL electronics under different brand
names through their efficient marketing team at home and abroad.
RFL Plastics is a sister concern of PRAN-RFL group. The group has a turnover in
the vicinity of USD $0.5 billion p.a Primarily Rangpur Foundry Ltd (RFL) was
founded by Maj. Gen. Amjad Khan Chowdhury (Retd) in 1981 with a vision to
leveraging the farmer in irrigation through cast iron products like centrifugal pump
as well as ensuring drinking water through Tube well. After that it commenced its
operation in plastics business in 2003. The factory sites are in company owned
industrial parks of 300,000 sq meters, which is fully equipped with state of the art
injection molding machines with a conversation capacity of over 10,000 tons per
month.

RFL Plastics currently utilizes 1200 molds through 250 machines having own
tooling facilities.

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 Table of Content
S.L No Topics Name Page No

2 Letter of Transmittal i

3 Student’s Declaration ii

4 Supervisor’s Declaration iii

5 Acknowledgement iv

6 Executive Summary v

Chapter : One 1

1.1 Introduction 1

1.2 Objective of the Study 1

1.3 Scope of the Study 2

1.4 Limitation of the Study 3

1.5 Administrative Secrecy 3-9

1.6 Mission & Vision 9

Chapter: Two 13

2.1 Code of Business Principles 14-18

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2.2 Structure of Industrial Channel 18-21

2.3 The functions & Responsibilities of Distributors 21-22

2.4 Manufacturer and Distributors Progress 22-23

2.5 Distributors of PranRFL Group 23

2.7 Distribution Channels of PranRFL Group Plastics 23-24

2.8 The Nature of Industrial Distribution Channel 25

2.9 Direct Channel Structures 25

2.10 Developing and Managing a Distribution RFL Group 26-29

Chapter : Three 30

3.1 Recommendation 31

3.2 Conclusion 32-33

3.3 References 34

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 Chapter: One

Introduction
1.1 Introduction:

RFL Plastics is a sister concern of PRAN-RFL group. The group has a turnover in the vicinity of
USD $0.5 billion p.a Primarily Rangpur Foundry Ltd (RFL) was founded by Maj. Gen. Amjad
Khan Chowdhury (Retd) in 1981 with a vision to leveraging the farmer in irrigation through cast
iron products like centrifugal pump as well as ensuring drinking water through Tube well. After
that it commenced its operation in plastics business in 2003. The factory sites are in company
owned industrial parks of 300,000 sq meters, which is fully equipped with state of the art
injection molding machines with a conversation capacity of over 10,000 tons per month.

RFL Plastics currently utilizes 1200 molds through 250 machines having own tooling facilities.

We are a very strong organization of 10,000 employees dedicated to supplying customized and
quality plastic products globally.

We welcome the opportunity to become your manufacturing partner of your business journey.

1.2 Objectives of the Study

Broad Objectives
 To get a clear idea on plastic goods manufacturing industry in Bangladesh.

Specific Objective
 To know about the Plastics & it’s Manufacturing Industry in Bangladesh.
 To find out about the advantages and disadvantages of poly and its related plastics –
Healthy& Safety issues for Human Beings.

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 To learn about the competition in the market and to find out the business scope of
Plastics goods.
 To find out the areas that needs to be improved & suggest ways for development in
Plastics Manufacturing Industry.
 To analyze the activities of the PranRFL Plastic Industries Ltd.

1.3 Scope of the Study

The study focuses on the sales & Marketing department in PranRFL Plastic Industries Ltd.
Its objectives, activities, shortcomings and plus Point of Plastics goods manufacturing. Day
by day demand of Plastics goods increasing globally. That’s why there is a good scope of
exploration of this business & this study will help the investor, manufacturer as well as
learner.

Methodology of Data Collection:

I have used both primary and secondary data for preparing this report. But most of the data
are collected from primary source. I observed various activities of PranRFL Plastic Industries
Ltd. My practical experience in PranRFL Plastic Industries Ltd. was a great source of
information.
Primary source of Data
 Primary data is collected the different departments of PranRFL Plastic Industries Ltd.
o Day to day desk job (Informal conversation with the clients)
Secondary sources of Data
 Prospectus of PranRFL Plastic Industries Ltd.
 Published journal and articles on plastics industries market in Bangladesh.
 Some of the data are collected from internet and newspaper.

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 1.4 Limitation of the study
Lack of time
Lack of time one of the major limitation of the study was limited time. The nine allocation of
the study was inadequate. Because in this short time one inter student had to both attend the
office and also do the survey. For the scarcity of time I could not communicate largely with
concern persons and authority, which would be very helpful for preparing, the report could
be made much more comprehensive.

1.5 Administrative secrecy

Another major problem every private company maintains some secrecy of its all import and
export activities. The authority kept much information as secrete.

Unwilling to response
While communicating with responsive persons most of this was very busy in their daily work
at that time. So they were not eager to answer my question and should me many causes to
avoid me.

Lack of adequate information

There were lacks of necessary information what I was needed. That is primary and secondary
data.

RFL Plastics is a sister concern of PRAN-RFL group. The group has a turnover in the vicinity of
USD $0.5 billion p.a Primarily Rangpur Foundry Ltd (RFL) was founded by Maj. Gen. Amjad
Khan Chowdhury(Retd) in 1981 with a vision to leveraging the farmer in irrigation through cast
iron products like centrifugal pump as well as ensuring drinking water through Tube well. After
that it commenced its operation in plastics business in 2003. The factory sites are in company
owned industrial parks of 300,000 sq meters, which is fully equipped with state of the art
injection molding machines with a conversation capacity of over 10,000 tons per month.

RFL Plastics currently utilizes 1200 molds through 250 machines having own tooling facilities.

12
 We are a very strong organization of 10,000 employees dedicated to supplying customized and
quality plastic products globally.

We welcome the opportunity to become your manufacturing partner of your business journey.

Quality Never Ends

We believe in quality rather than quantity. To do so we always focus on most advance
technology high graded raw materials and regular test facilities with skilled researcher and
chemist in the factory premises in our habit.
We have a international standard check list of quality control in our factory.
Already we have got several international certificate regarding quality and compliance like ISO
9001:2008, ISO 14000QMS EMS.
Also successfully we passed in different audits:
 Walt Disney – Audited by Bureau VERITAS, Bangladesh
 Walt Disney – KIK – Audited By STR, Bangladesh
 Trudeau Corporation - Audited by Bureau VERITAS, Bangladesh
 Carrefour: (Technical) – Audited by SGS Bangladesh Ltd and (Compliance) Audited By
Intertek Bangladesh (ITS)
 Walt-Mart: (ES-Compliance) Audited by Bureau VERITAS, Bangladesh; (FCCA)- Audited By
Bureau VERITAS, Bangladesh and (SCS)-Audited by Intertie Bangladesh (ITS)

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 Go Green

We are very much conscious on our lovely nature. That’s why we protect our environment
through “GO GREEN” policy which intends us to produce environment friendly products.
 EFFLUENT TREATMENT PLANT
 RECYCLE PLANT
 PLANTATION

 1969: Started operation with a single hand operated plastic injection molding machine in
a rented premise in the old Dhaka by MorshedAlam.
 1971: After independence of Bangladesh in 1971, started full pledged production of Jute
& Textile Spare Parts, which were used to import from India and Europe.
 1978: Manufactured household utensils such as plastic Jug, plate and other plastic
domestic wares.
 1980: PranRFL Group Adhesive and Chemical Products manufactures adhesives for
various industrial usages such as wooden furniture industry, shoe industry, lather
industry and others.
 1981: Registered PranRFL Plastic Industries Ltd. as limited company with the Joint
Stock Company, Dhaka, Bangladesh.
 1991: Introduced Plastic Apparel Hangers in Bangladesh for 100% export oriented
garment industries for exporting to the U.S.A. and the EU.
 1993: Approved by Coca-Cola Export Corporation, Atlanta, Georgia, USA to
manufacture Molded Bottle Crates for Coca-Cola for the territory of Bangladesh tapes,
and strapping bands. The plant is completed on April 2000.
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 2000: Acquired a Chinese plastic factory (Build-up Plastics BD Ltd.) with 12 injection
molding machines in Dhaka Export Processing Zone, Bangladesh for a price of US $2
million, later named as PranRFL Group Build-up BD Ltd. 1994: Became the licensee
manufacturer of Batts Inc., Michigan, USA, which later acquired by A&E Products
Group LP- a TYCO International Limited Company.
 A&E Products Group is the largest apparel hanger manufacturer in the world with more
than 50 distribution centers in over 28 countries.
 1995: PranRFL Group Overseas Corporation Ltd., – imports and exports various
products to/from Bangladesh. It is now successfully representing leading global
industrial brands in Bangladesh, such as Rinnai Japan, Cornelious UK, Crown Cork &
Seal USA, Videojet USA, and Linnex USA.
 1998: Became the licensee of ScheollerWavin System, Germany- the leading
manufacturer and designer of Bottle Crates for Coca-Cola, Pepsi-Cola and other major
soft drinks with licensees and production partners in more than 50 countries in the world.
 Founder Chairman- MorshedAlam awarded CIP (Commercially Important Person) by the
Government of Bangladesh (GOB) for our contribution in the economy.
 1999: Grew up as the largest plastic processing plant in Bangladesh with 72 Injection
Molding Machines capacity from 250 tons to 1600 tons consuming more than 250 tons
of raw materials each day.
 Initiated an expansion plan of US $5 million for installing the single largest production
facility at Zerabo, Savar, Dhaka – 15 km away from the Dhaka International Airport with
20 acres of land area and 120,000 square feet of production area along with 36 units of
Injection Molding Machines, 4 film extruder machines, a set of printing and converting
machines for manufacturing garment hangers, poly bags, packaging.
 Mr. JashimUddin, Director of the Company awarded CIP (Commercially Important
Person) by the Government of Bangladesh (GOB).
 2001: Power Utility Bangladesh Ltd. – an energy company to contribute in the power
sector to meet the country’s fastest growing demand for electricity by installing power
plants at strategic locations in Bangladesh.
 2002: PranRFLGroup Poly& Paper Sack Ltd. – PP Woven Sacks manufacturing
industry at Tongi, Gazipur, Bangladesh with a capacity to produce 200,000 woven sacks

15
 of different types. The company is meeting the demand of cement industries, fertilizer
industries, and poultry/fish feed industries by supplying quality woven sacks.

 PranRFL Plastic Industries Ltd. received ISO 9001:2000 certification for quality
management system and ISO 14001 certification for environmental system. PranRFL
Plastic is the only company in Bangladesh having both the certifications.
 2003: Added Molded Furniture in the production fleet by manufacturing 12 different
types of plastic chairs, 4 types of plastic tables, and other large molded products.
 PranRFL Group Corrugated Carton Industries Ltd.- a packaging unit to produce
corrugated cartons to supply to the entire Group companies with a capacity of 50,000
pieces of cartons of different sizes each day. Now, it is fulfilling all the demand of our
entire sister companies.
 2004: Acquired Rahmania Biscuits & Bread Industries Ltd.A biscuits making factory
located at Noakhali, Bangladesh. The plant is capable of making soft biscuits with a
capacity of 500 kg per hour. Later named as Romania Food & Beverage Ltd.
PranRFL Group Agro Estate Ltd. aims to process fruit and vegetables to meet the
country’s growing demand and to export to other countries. Recently, the company
allotted 100 acres of land in Gazipur from the Government of Bangladesh (GOB) to grow
and process different types of vegetables and fruits.

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 PranRFL Group Concept & Holdings Ltd.- a development and construction company
established to develop large-scale construction projects mainly high raised buildings,
shopping malls, super markets, residential apartments and plots. Currently it took a
project named Golden PranRFL Group a 20-storied mixed-type construction on 1.25
acres of land in the posh area of Dhaka City with a cost of US $25 millions.
 Hamilton Metal Corporation Ltd. - manufacturer of metal hooks and clips for apparel
hangers of other Group companies. The plant is installed with four bending and forming
machines with a fully automatic electroplating line. Installed capacity to produce 500,000
pieces of metal hooks and 800,000 pieces of metal clips per day.
 2005 : Acquired Polycord Ltd.- a flexible packaging unit at Savar, Dhaka producing
various packaging materials for food & beverage, pharmaceutical, detergent, and others
industries.
 PranRFL Group Windsor Thermoplastics Ltd. – an injection-molding unit at Dhaka
Export Processing Zone received ISO 9001:2000 certification for quality management
system (QMS).
 2006: PranRFL Group Concept & Holdings Ltd. initiated 20-storied ‘PranRFL Group
Tower’ at Motijheel- the financial hub in Dhaka City with a land area of 12,000 square
feet and total caste area of 184,000 square feet including three basements car parking.
 PranRFL Group ’- Received Superbrands Award- Superbrands is an independent arbiter
of branding. It promotes the discipline of branding and pays tributes to exceptional
brands around the world. Only those brands that score highly on an average, qualify to be
dominated. Superbrands programs now operate in more than 60 countries.

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  Romania Food & Beverage received ISO 22000 certification for food safety management
system. ISO 22000:2005 specifies requirements for a food safety management system
where an organization in the food chain needs to demonstrate its ability to control food
safety hazards in order to ensure that food is safe at the time of human consumption.
 2011: PranRFL Plastic Pipes Ltd- to produce various sizes uPVC&HDPE pipes and
uPVC door and door profile. Starting commercial operation in April 2011.

1.6 Mission & Goals

Our mission is to strive continuously to exceed customers’ expectations for achieving

unlimited excellence by providing greater value to our customers than our competitors.
Our goal is to be the best company in our industry and it is our policy to deliver total quality
goods and services to all of our customers. We accomplish this by adopting a set of quality
policy throughout the organization.

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1.7 Chairman’s Message
In 1969, a history of creation and challenge took its first step with the incorporation of
PranRFL Plastic Industries. Over the years, PranRFL Plastic has made a remarkable
advancement with a progressive spirit of challenge by producing import-substituting
products that have been contributing a great deal in foreign currency savings.
Riding the wheels of difficulty over the past several years, PranRFLGroup Group has taken
a firm root, growing into, what it is today. All achievements are the rewards for the sweat,
shed by a highly motivated and loyal team of professional, working round-the-clock, hand-
in-hand at PranRFL Group of Industries. It’s only the PranRFLGroup Group family
members who have made utmost efforts to overcome adverse environments and hardship to
ensure our customers’ satisfaction.
The company’s positive business philosophy is to fulfill and discharge its prime
responsibility to the community and environment, through the development of its members’
creativity and self-innovation.
Based on such proud tradition, built around spirit, sweat and drive, the PranRFLGroup of
Industries is preparing itself to make a bold jump towards opening of a new era of creativity
to meet the challenges of the new millennium.
Environment
PranRFL Group is committed to environmental excellence, instilling high environmental
values in all employees and maintaining good corporate citizenship in the communities in
which we operate. PranRFLGroup’s all units are responsible for complying with
environmental laws and regulations applicable to their facilities and operating in a manner
that conserves natural resources and protects the environment.
Community
PranRFL Group Group’s commitment to acting with Integrity, Excellence, Teamwork and
Accountability contributes to our being a good citizen and socially responsible in the
communities in which we reside. We strive to enhance the well being of our communities by
respecting the diversity of people and cultures.

19
 People & Value
Our employees play a vital role in ensuring the success of our daily business activities.
Every employee, manager and director throughout the organization is expected to adhere to
our core values of Integrity, Teamwork, Excellence and Accountability. These values are
also the basis on which we build the trust and integrity that will allow our businesses to
continue to succeed.

Corporate Philosophy

PranRFL Plastic is a centralized and formalized organization. It believes in 1969, a history

of creation and challenge took its first step with the incorporation of PranRFL Plastic
Industries. Over the years, PranRFL Plastic has made a remarkable advancement with a
progressive spirit of challenge by producing import-substituting products that have been
contributing a great deal in foreign currency savings.
Riding the wheels of difficulty over the past several years, PranRFL Group Group has taken
a firm root, growing into, what it is today. All achievements are the rewards for the sweat,
shed by a highly motivated and loyal team of professional, working round-the-clock, hand-
in-hand at PranRFL Group Group of Industries. It’s only the PranRFL Group,Group family
members who have made utmost efforts to overcome adverse environments and hardship to
ensure our customers’ satisfaction.
The company’s positive business philosophy is to fulfill and discharge its prime
responsibility to the community and environment, through the development of its members’
creativity and self-innovation.
Based on such proud tradition, built around spirit, sweat and drive, the PranRFLGroup
Group of Industries is preparing itself to make a bold jump towards opening of a new era of
creativity to meet the challenges of the new millennium.
PranRFL Group Group is committed to environmental excellence, instilling high
environmental values in all employees and maintaining good corporate citizenship in the
communities in which we operate. PranRFL Group Group’s all units are responsible for
complying with environmental laws and regulations applicable to their facilities and
operating in a manner that conserves natural resources and protects the environment.

20
PranRFLnGroup’s commitment to acting with Integrity, Excellence, Teamwork and
Accountability contributes to our being a good citizen and socially responsible in the
communities in which we reside. We strive to enhance the well being of our communities by
respecting the diversity of people and cultures.
Our employees play a vital role in ensuring the success of our daily business activities. Every
employee, manager and director throughout the organization is expected to adhere to our
core values of Integrity, Teamwork, Excellence and Accountability. These values are also the
basis on which we build the trust and integrity that will allow our businesses to continue to
succeed.
PranRFL Plastic is a centralized and formalized organization. It believes in team work.

21
Chapter: Two

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2.1 Code of Business Principle
PranRFL Plastic is an equal opportunity employer and safe guards the
 Rights of gender
 Religion
 Race

Encourage Employees on the basis of:

 Education
 Experience
 Professionalism

The Company does not discriminate on the basis of:

 Color
 Religion
 Race
 Ethnic Values
 Gender
 Cost

Company’s customers
PranRFL Plastic Industry has customers both in the country and outside of the country. They
are mainly the RMG Accessories manufacturers & suppliers.

Business
 PranRFL Plastic Industries Ltd
 PranRFL Group Polymer Wares Ltd
 PranRFL Plastic Pipes Ltd
 PranRFL Group Poly & Paper Sack Ltd
 Windsor Thermoplastics Ltd
 PranRFL Group Adhesives & Chemical Prod. Ltd
 PranRFL Group Corrugated Carton Industries Ltd.

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 PranRFL Group Overseas Corporation Ltd
 PranRFL Group Concept & Holdings Ltd
 Romania Food & Beverage Ltd
 Hamilton Metal Corp. Ltd
 Power Utility Bangladesh Ltd

Products
 Garment Hangers
 Plastic House ware
 Plastic container
 Plastic furniture
 Plastic pallets
 Stationary
 Packaging tape
 Corrugated carton
 Woven bags
 Flexible packaging
 Food & beverage
 Mattress foam and adhesive
 Upvc pipes and fittings
 Upvc door & door profile

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Share Holders
 Mercantile Bank Ltd
 National Life Insurance Co. Ltd National Finance Ltd
 Desh General Insurance Co. Ltd
 United Hospital Limited
 Peoples University
When a company or a manufacturer produces goods or services, it has the immediate
responsibility to distribute and sell them to the industrial and institutional customers. The
industrial customers generally constitute of wholesalers, retailers, manufacturers, educational
institutions, governments, hospitals, public utilities, and other formal organizations. There
are various intermediaries who are involved in a distribution and selling process helping the
manufacturers to make their goods reach the end users. Thus, a network or channel that helps
to flow the goods from the producer to the consumer through a set of interdependent
organizations (intermediaries) is called distribution channel or trade channel or marketing
channel. Channels are the tools used by management to move the goods from the place of
production to the place of consumption. In the progression, the title of goods gets transferred
from sellers to buyers.

The nature of industrial distribution channel

The nature of industrial distribution channel is quite different from the consumer goods
distribution channel. The intermediaries stock the products they are distributing thereby
assuming part of the burden of marketing the product and maintaining close contact with
customers. There are various factors that affect the distribution of industrial goods.
Geographical Distribution: The industrial distributors are concentrated highly in the
industrial markets they serve and certain other places that have large number of industries
like large towns and cities.
Size: Unlike consumer markets, the industrial markets tend to have fewer channels of
distribution. Even the industrial channel is shorter in size as organizational buyers expect
immediate product availability, technical expertise and prompt after-sales service. This
indirectly demands investment in training and physical facilities for the industrial
organizations.

25
Intermediary characters: The intermediaries involved in industrial marketing are technically
qualified who maintain very close relationship with industrial organizations. Industrial
manufacturers tend to depend more heavily on each member of the channel and may do more
to support that channel member. Industrial distributors, brokers and agents are some types of
intermediaries used by industrial marketers to reach customers.
Mixed channels: A combination of direct and indirect channels is used by some industrial
marketers to cater to different market segments or when they have some resource constraints.
To cater to large-volume customers, industrial firms generally use their own sales force, and
to cover small scale organizations, they use independent distributors. In case of large

26
geographical territories, due to resource constraints they use their agents called as
manufacturer’s representatives‘.

Industrial Marketing Channel (with various levels)

 Zero level – Manufacturer to Customer
 One level – Single intermediary involved
 Two levels – Two intermediaries are involved in the channel network

2.2 Structure of Industrial Channel

There are different ways in which an industrial channel can be structured. Some of the
industrial channel structures are direct while some are indirect.

Direct Channel Structures:

In direct channel structures, the entire task necessary to create sales and to deliver the
products to industrial customers is performed by the manufacturers themselves. The various

27
tasks involved in this process are contacting the potential customers, communicating and
negotiating with them, financing and selling, storing the products, transportation and
providing related services. This approach is viable to the company only if –
 The buying process is lengthy,
 The selling includes extensive technical and commercial negotiations at various levels,
including top management,
 The industrial buyer insists on buying directly from the manufacturer, and
 The value of each transaction is large.

Indirect Channel Structures:

In indirect channel structures, the various tasks discussed above is shared both by the
manufacturer and the intermediaries. An indirect distribution approach is appropriate when –
 The industrial buyers are widely dispersed,
 The value of transaction or sales are low,
 The industrial buyers purchase many product items in one transaction, and
 The manufacturer has limited resources.
Some of the examples of indirect channel are manufacturer‘s representatives (or agents),
brokers, commission merchants, commission merchants, industrial dealers or distributors,
value-added resellers, jobbers, drop shippers. Indirect distribution is used in industrial
chemicals, construction materials, electrical wiring materials and supplies, general industrial
machinery, iron and steel products, etc.,

Types of Industrial Middlemen

The industrial middlemen are the intermediaries used by the manufacturers to deliver their
products to the end users. They are categorized based on the number and the extent to which
they specialize in the performance of certain functions. Different types of industrial
middlemen are manufacturer’s representatives’ (also called agents), brokers, commission
merchants, industrial dealers or distributors, value-added resellers (VARs), jobbers, drop
shipper.

28
Manufacturers’ Representatives:
The manufacturer‘s representatives (sales agents or manufacturer’s agents) are very
commonly seen middlemen who secure orders from existing and potential customers. They
provide relevant information on market conditions to the manufacturers as well as customers.
They are paid a certain amount of pre-specified commission on sales and other tasks
performed to make the sales. Generally small and medium-sized industrial firms use the
services of agents in territories with low market potential. Agents are cost-effective for them
because commission is paid as per the orders generated. The agents particularly have good
knowledge about the product, their target market apart from excellent contacts with the
buyers.
Brokers: Brokers are the middlemen who represent either the buyer or the seller. They help
the manufacturer to find potential buyers and vice versa and take the commission when sales
process is complete.
Commission Merchants: They deal with large quantities of items like raw materials. They
are paid commission by the manufacturers when they perform certain functions. Their
general functions include getting the raw materials inspected, negotiating during sales and
finally close the sales. They receive the commission based on the net sales value as is
compensated to agents and brokers.
Industrial Distributors: Industrial Distributors are the important and most preferred
middlemen that are typically small and independent serving narrow geographic markets.
They perform functions like buying, transportation and warehousing, promotion and selling,
and offering credit. Because of such varied functions, they are sometimes referred to as full
function intermediaries. They are offered trade discounts on the price list of the products as
their compensation.
Jobbers: They get orders from the customers and pass them to the manufacturers. Though
they do not handle the goods physically in any form, they take the title to the products they
sell. Jobbers specialize in marketing bulky products like coal, iron ore etc, that are
transported in huge quantities and do not require assorting or grouping of products.

29
The Functions and Responsibilities of Distributors
Nothing prevents a producer from meeting his customers directly and effecting sales. If he
does not use this privilege, he has to borrow the services of different middlemen who act as a
vital link in the distribution network to pass on the production to the actual users. A full
function intermediary or the distributor performs all or most of the distribution functions like
–
 Purchasing products from the producer to resell back to the industrial buyers
 Promoting the product through ads, negotiating by offering discounts and securing orders
from customers
 Extending credit to customers while reselling the products
 Storing the products safely at warehouses and ensuring its availability to the customers
 Inspecting and testing the product, and assigning distinct quality grades. (Various grades
of products are sold to different end users at different prices)
 Transporting the product from warehouses to customers place
 Providing information on product features, price etc., to the customers and competition,
market demand etc., to the manufacturers.
 Providing pre-sales and after-sales services to the customers through their technical
service personnel.
As the intermediaries perform all or most of the above functions, the industrial marketers
find it more suitable to use their services rather than doing all the things by themselves. But,
they should analyze certain functions that are very important for them but cannot be
performed effectively due to reasons like cost effectiveness or service inefficiency. Such
tasks should be outsourced to those intermediaries who have the expertise to perform them
effectively and efficiently.
2.3 Developing and Managing a Distribution Strategy
 A distribution strategy defines how you are going to create and satisfy demand for your
products.
 A distribution strategy defines how you are going to move products from point of
creation to points of consumption in an efficient and cost-effective manner.
 A distribution strategy also defines how you are going to develop and maintain customer
loyalty.

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  But first and foremost, a distribution strategy must be in sync with how customers want
to shop and buy.
 Today’s customers shop and buy very differently than ever before.
 Their access to high-quality information via the internet, combined with their heightened
price sensitivity, has created a customer that is more sophisticated, better informed and
often times, more adversarial than customers of the past.
 This new breed of customer no longer plays by the rules of traditional distribution
channels. Despite this fact, manufacturers and distributors continue to support outdated
distribution strategies that actually make it hard for customers to shop for and purchase
their products.
Why the growing importance of marketing channels?
 The explosion of information technology and E-commerce
 A greater difficulty in gaining a sustainable competitive advantage
 The growing power of distributors, especially retailers in marketing channels
 The need to reduce distribution costs


The change of focus to channel strategy

 Creates competitive advantage with long-term viability.
 Builds strong relationships between manufacturers and channel members
 Based on trust, confidence and people power

2.4 Reasons of preference of Industrial Customers than Distributors

There are many reasons why industrial customers buy from distributors. Some of the
common reasons include –
Delivery: Industrial customers particularly the small scale manufacturers find the distributors
to be more reliable who deliversthem goods in less time and at a lesser price. This helps them
reduce their inventory level as well as the inventory carrying cost.
Information: Distributors provide relevant information on various products like technical
information, price, and availability, quality that helps the customer select and buy the best.
Variety: The distributor stocks variety of products at one place that caters to all the
requirements of the industrial buyers.

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Credit: The distributor offers credit facility to his reputed and credible buyers whenever they
purchase from him. Besides above, it is the relationship and best customer service that
matters the most to the customers to prefers a particular distributor.

2.5 Manufacturer and Distributor – Partners in progress

Though there would be lot of conflicts and disputes existing between the manufacturer and
the distributor, both need to maintain good relationship that help them to be partners in
progress. The manufacturer should provide the distributor with all the assistance that is
economically feasible to enhance the distributor‘s performance. The assistance from the
manufacturer could be in the form of –
 Providing increased margins or financial help that stimulates the distributor to increase
inventory levels
 Improving distributor‘s performance through deploying its sales force where
supplemental technical support can be provided or joint sales calls can be done
 Imparting technical and general training to the distributor personnel to improve their
effectiveness and strengthen the bond
Simultaneously, the distributors should also execute all their basic functions and meet their
responsibilities (that have been discussed earlier) in a systematic way that would help the
manufacturer perform better. In addition, they should recognize the significant trends
unfolding in the industry by understanding the market dynamics and forecasting its future
directions. Eventually, the efforts of both the ‘partners in progress’ should be to grow
together that can happen only through mutual coordination and understanding each other in a
better way.

2.6 Summary of industrial distribution

There are various channels that are involved in a distribution system that help the
manufacturer to deliver the goods to the end-users. Industrial distribution is quite distinct
compared to the channels used for consumer goods or services. It carries out the distribution
through the direct channel structure that involves the company‘s sales force and the direct
marketing through various means. The other way is the indirect channel structure where

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different kinds of intermediaries are involved like the agents, distributors, brokers,
Commission Merchants; Value added Resellers, jobbers, drop shippers.
There are various functions these intermediaries perform that vary from buying the product,
promoting and selling, financing or giving credit to buyers, warehousing, grading,
transporting, providing information to customers and suppliers, providing technical support.
Most of the above services are performed by the distributors because of which they are called
as full function intermediaries. The distributors are preferred by the industrial customers as
they find them more dependable, offer varied products, give liberal credit apart from
providing the requisite information about the product, price and other related items.
Finally, the manufacturer and the distributors should be partners in progress who has to
understand each other and solve any conflicts arising between them.

2.7 Distribution Channels of PranRFL Group Plastics

A company’s channel decisions directly affect every other marketing decision. Place
decisions, for example, affect pricing. Distribution decisions can sometimes give a product a
distinct position in the market. The choice of retailers and other intermediaries is strongly
tied to the product itself. Manufacturers select mass merchandisers to sell mid-price-range
products while they distribute top-of-the-line products through high-end department and
specialty stores. The firm’s sales force and communications decisions depend on how much
persuasion, training, motivation, and support its channel partners need. Whether a company
develops or acquires certain new products may depend on how well those products fit the
capabilities of its channel members.
Basically the PranRFL Group group of industries they provides their product in customized
way.. In the polyethylene sector they mainly provide their poly to garments industries.
Sometimes they also provide for the food industries. Their distribution system is perfectly
well. They conduct directly to the customer by the help of their sales executive officer. In
this case they can minimize the price of the product which is really better for the customer.
They set the fixed price it also goodwill for the company. If they conduct any intermediary in
that time the price will be vary customer to customer because the intermediary wants get
more profit and it will be great disadvantage for the company and the company loss their
reputation from the market.

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 2.8 The Nature of Industrial Distribution Channel
The nature of distribution channel is totally different from others company. The directly distribute
their product to their customer. There is no intermediary as a result they can save their time, money
and other consumption. There are some factors that affect the distribution such as geographical
distribution, size, intermediary characters, and mixed channels.
Geographical Distribution: The PranRFL Group plastics, they are industrial distributor so they have
to serve their business where has the large industrial market. They mainly distribute their product
within the Dhaka city and its related places.
Intermediary characters: There is no intermediary level.
Mixed channels: There is no intermediary level.
Industrial Marketing Channel (with various levels)
Zero level – Manufacturer to Customer

The Structure of Industrial Channel

There are different ways in which an industrial channel can be structured. Some of the
industrial channel structures are direct while some are indirect.

2.9 Direct Channel Structures

The PranRFL Group plastics they follow the direct approach the entire task necessary to
create sales and to deliver the products to industrial customers is performed by the
manufacturers themselves. The various tasks involved in this process are contacting the
potential customers, communicating and negotiating with them, financing and selling, storing
the products, transportation and providing related services. This approach is viable to the
company only if –
 The buying process is lengthy,
 The selling includes extensive technical and commercial negotiations at various levels,
including top management,
 The industrial buyer insists on buying directly from the manufacturer, and
 The value of each transaction is large.
The Functions and Responsibilities of Distributors of PranRFL Group

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 Purchasing the raw materials from the outside of the country and produce the product
and resell back to the industrial buyers
 Promoting the product through ads, negotiating by offering discounts and securing orders
from customers
 Extending credits to customers while reselling the products and when create the good
relationship with the customers.
 Storing the products safely at warehouses and ensuring its availability to the customers
 Inspecting and testing the product, and assigning distinct quality grades. (Various grades
of products are sold to different end users at different prices)
 Providing information on product features, price etc., to the customers and competition,
market demand etc., to the manufacturers.
 Providing pre-sales and after-sales services to the customers through their technical
service personnel.

2. 10 Developing and Managing a Distribution Strategy of PranRFL Group

 They always try to create and satisfy demand of their products to the desired customers.
 Their distribution strategy indicates to move products from point of creation to points of
consumption in an efficient and cost-effective manner.
 They always try to develop and maintain customer loyalty.
 Their access to high-quality information via the internet, combined with their heightened
price sensitivity, has created a customer that is more sophisticated, better informed and
often times, more adversarial than customers of the past.

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B 2 B business of PranRFL Group
B2B marketing also has also found an outlet on the internet as many enterprises have
established their operations online. PranRFL Group plastics that are involved in import and
export have found the internet very useful conducting their businesses. This is because of
some comparative advantages that the internet offers them. These include:
 The enhancement of the supply chain management system’s operations
 Enhances the product content and internal messaging system
 Enhances the Return on Investment (ROI)
Reasons of preference of Industrial Customers than distributor
There are many reasons why industrial customers buy from distributors. Some of the common
reasons include –
Delivery: Industrial customers particularly the small scale manufacturers find the distributors
to be more reliable who delivers them goods in less time and at a lesser price. This helps
them reduce their inventory level as well as the inventory carrying cost.
Information: Distributors provide relevant information on various products like technical
information, price, and availability, quality that helps the customer select and buy the best.
Variety: The distributor stocks variety of products at one place that caters to all the
requirements of the industrial buyers.
Credit: The distributor offers credit facility to his reputed and credible buyers whenever they
purchase from him. Besides above, it is the relationship and best customer service that
matters the most to the customers to prefers a particular distributor.
 PranRFL Group Plastics have advanced machineries that are used for their production
and high standard & quality products are produced according to customer choice and
order.
 PranRFL Plastic is one of the leading organization in the plastic industry, therefore they
offer low price on their products. So the PranRFL Plastic has the strong relation with the
local garment manufacturers as well as international companies and all business depends
upon the relationship.
 It’s only possible because both the parties well understand each other needs. PranRFL
Plastic rules and regulations and policies of trade and meets the need of their customers.

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 PranRFL Plastic manufactures products totally on high grade HYPLAS (Taiwan)
machines, premium brand in this industry so it’s have competitive advantage from the
quality and cost.
 PranRFL Plastic belief in building a long term relationship with employees that is
enriching and beneficial to both sides.
 PranRFL Plastic has the systematized production unit. All the process of manufacturing
raw material of plastic follows the lean system. So it reduces both time and cost of
manufacturing finished products.
 In PranRFL Plastic all the production system is based on the machine. PranRFL Plastic
invest huge amount on research and development and acquiring the machinery. Now all
the productions are based on mechanized system.
 The employees of PranRFL Plastic are loyal with the organization especially on
executive seats. They work with their full concentration and accept responsibility of
their work. It’s all because of strong management.
 Company is working with the limited staff on executive seats which providing their
services to company from many years and they don’t have new qualified staff which fill
the seats of existing staff whenever they leave.
 There is a centralize decision making due to which there is delays in taking decisions
which required immediate response.
 HRM department is not performing its duties as per the need of the organization due to
lack of HR professional. The duty of HR department is not only hiring and firing the
employees, but they should arrange training programs, different entertainment events and
skill deployment to employees, become the loyal with the organization.
 PranRFL Plastic has great grip on local market but at the same time it tries to focus on
the global market and wants to grip on global market as well as at the local market. So in
this way it tries to produce their products according to international standard.
 PranRFL Plastic is very lucky that there is no much competition in this field and the
business which this company runs is no wide and there are only 1 or 2 major competitors
in the market. So that company can easily expand its business and earn more and more
profit from the market.

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 Growing global technological advancement is the biggest threat for the company and also
company doesnot have any brand name if they market their products into the market so
there will be problem that PranRFL Plastic products don’t have any market value
because it don’t have its brand name and also it is important for company that company
advertise its products globally which is very helpful for the company.
 The promotional activity is the important part of a company that creates awareness about
the products to customers mind but there is no promotional activity in PranRFL Group.
 There are no other products that can be used as a substitute for the current products. So
the threat from the other industry is very low.
 There are not many competitors in the local level and BPIL manufacturers’ high quality
products. So the competition is very high among the competitors.

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Chapter: Three

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3. 1 Recommendation
As PranRFL Plastic Industries Ltd. is a commercial organization in our country and wanted
to make a surplus over their business, they needs to take some initial steps to solve their
existing problem. Though the officials of the company were gave positive information about
the company in most of the cases. Bur I think they need to immediately focus on their
problematic areas. According to my point of view I point out some significant
recommendation in their perspective. I believe that if they can take initial step to solve that
problem, I hope that they will be able to remove their problem. Some of the major
recommendations are given below-
 The company needs to maintain all the rules and regulation of import activities properly.
 Buyer is the king of poly business. So that the company’s needed to continue a better a
relationship with all of their existing buyer and tries extend this relationship with other
new buyer.
 The information section of the company is not strong. Because most of the officials of
the company agreed in this regard. For this reason officer of the company can’t
effectively and timely communicate with different organization.
 The company needs to hire more skilled and experienced sales officers and commercial
employee to effectively deal with buyer and properly maintain import & export activities.
 HRM department is required to hire efficient employees according to the qualification
and performance not as reference basses.
 Company should start E business.
 Company working with the limited brands so it have to increase its marketing and make
new more customers because company is fully depended on the existing customer and
whenever they leave company have no choice.
 PranRFL Plastic should increase employee’s commitment by encouraging and rewarding
them that can lead toward the high performance.
 Keeping high quality is not only the responsibility of quality department, but it should be
embedded in each employees minds. Every employee should take it as personal
responsibility.
 There should be clearly written slandered about the demand of buyer’s requirements
about the production.
 Company should increase the salary package of employees to become more loyal.
 Company should do local and international marketing.

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3.2 Conclusion
The plastics business is the potential source of export earning of Bangladesh. The beginning
of plastics sector was not so good in our country. At first PranRFL Plastic Industries Ltd. was
starting its business in a small form. Its import and export activities were limited within some
countries. Recently, PranRFL Plastic Industries Ltd. raises the boundary of their business and
tries to handle its import and export activities. To conduct import and export activities, the
company directly related to some other organization like bank, EPZ, BGMEA etc and tries to
maintain all the formalities of import and export activities from those organization.
This industry brings so many possibilities for the people of Bangladesh. Though it has all the
facilities, working environment, labor, skill and many other supporting variables but this
sector did not develop in our country expectedly. There are some problems in PranRFL
Plastic Industries Ltd. to develop its business more like illegal practice in different
governmental offices, lack of better transportation system and lack of modern working
system of different organization related with import and export activities of PranRFL Plastic
Industries Ltd. and many more.
Actually governmental intervention in this sector is very much essential. If government
create better opportunities for the owner of the plastics company in case of import and export
activities like faster Customs activities, install modern technology, change the old Procedure
of official activities etc then it will better for import and export activities of PranRFL Plastic
Industries Ltd. Beside this the company needs to ensure their effectiveness in all the
activities to perform better in this sector.

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3.3 Reference

1. www.Pran RFL Group group.com.bd

2. Data collection from RFL Group
3. www.assignmentpoint.com
4. Annual report of pranRFL group-2013
5. Hawaldar, K. Krishna (2002), “Industrial Marketing” (1st ed.), TATA McGraw-
Hill Publishing Company Limited,
6. Robert R.Reeder, Edward G.Brierty& Betty H.Reeder (2001), “Industrial
Marketing” , 2nd Edition,
7. www.wikipedia.com.bd

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