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Bashundhara LPG started its journey as a leader in the field of LPG sector in Bangladesh and
it is continuing its legacy since then. We were interested in knowing their strategies that they
follow for sustaining in this competitive market.
Firstly, we wanted to know whether there is any scope of being complacent in any course of
their journey and what we found is way much interesting. The answer to the question is a
straightforward NO. Nothing can be taken for granted in this competitive market. To come up
with innovative ideas is a must for a business leader in this prospect. Otherwise a lot of
parties are waiting in the race to replace the leader within no time. So we were eager to know
how the organization plan their marketing strategy. Our findings are as follows.
Moving on to the next phase, we tried to know which point the organization is now focusing
on for ensuring their sustainability. We got to know that it is now marketing its maturity stage
using the tag line, “ভরসা রাখুন, স্বাচ্ছন্দে থাকু ন।“ And it proves to be very much effective according
to the management’s end.
In addition to this, we got to know that the organization is engaged in many CSR activities.
And such activities play a vital role in its marketing. As their business is mainly B2B one, it
heavily depends on its distributors. Bashundhara LPG cannot direct sell its product to the
customers. It needs to maintain a channel. The channel is given below.
So, if Bashundhara LPG wants to increase their sales it needs to keep its distributors satisfied.
For this reason, the organization arranges some CSR activities which include their
distributors. For example, few days ago the organization arranged a program where it gave
scholarship to the children of its distributors. The aftermath of this event was overwhelming.
The distributors were elated & it gave them a lot of motivations which eventually led to
increase in the sales.
Later on, we tried to know how LPG sector is doing currently. We were given a superficial
idea. In 2013, the industry produced 80,000 tonnes of LPG. In 2019, the industry reached one
million tonnes. From 2014 to 2015, and 2016 to 2017, the growth of the industry was 100
percent. But from 2018 to 2019, the growth of the industry was merely 10 to 12 percent. This
dip in growth was because the product had overcome exponential growth and entered the
organic growth phase.
During the time of exponential growth, the demand for local LPG products was 700 units, but
the local market produced about 200 units. In recent years, the demand is still 700 units, but
the local market produces 1200 units, which means Bangladesh is oversupplying local LPG-
related products.
The sourcing of the LPG is built in Mongla and does not allow the entry of big vessels. To
tackle future demands, we need more channels. Also, the VAT on the product needs to be
lowered in order to reach out to 70 percent of the country’s people.
Non-cooperation of distributors:
Through the campaign, Bashundhara LPG tried to build a relationship with the retailers by
directly registering the retailers. There was no incentive for the distributors in this campaign,
so the distributors were dissatisfied and did not help Bashundhara LPG.
Delay in rolling out the campaign:
Bashundhara LPG hired a third party to run the campaign. The third party made some delay
in rolling out the campaign. Due to the delay, Bashundhara LPG could not sell expected
amount of products which caused 15% of the failure of the campaign.