Table of Contents
Feedback & Control
Cement Industry is highly important segment of Bangladesh’s Industrial sector & Plays a vital role in socio-economic development. Although cement industry of Bangladesh has witnessed its ups & down in recent past but in last decade it has recovered & now it’s a self-sufficient industry of Bangladesh not only fulfilling domestic needs of Bangladesh also exporting a huge amount of cement to other countries, bringing foreign reserves & help in up lifting Bangladesh’s GDP. Bangladesh is currently operating at their maximum capacity due to the boom in commercial & industrial construction within Bangladesh. In this report I have selected 'Anchor' cement, Olympic Cement Ltd (OCL) of ‘Khansons Group’ simply called gray cement & we will describe how they do product planning for that? Khansons Group has extended its industrial arena by putting-up a clinker grinding cement plant named as 'Olympic Cement Ltd'. The plant is located at Rupatoli, Barisal all in a row along with its textile industries. The finished product (cement) has been branded as 'Anchor' & the same has become popular in the local market. This cement project commenced its initial production at 800 tpd and gradually increased the production to the level of 1,600 tpd. Olympic Cement Ltd (OCL) is one & only cement factory which has targeted to meet the entire demand of cement in Southern Bengal. As a result, OCL has concentrated its sales on a soaring trend by increasing production volume. OCL is maintaining the reputation of its quality product and aiming at the extended project in days to come.
Current Market Situation
Overall Market Situation
Bangladesh cement industry is the 40th largest market in the world. There are 70+ cement factories in Bangladesh and daily production capacity is 16.687 Million MT. In January 2012, Bangladesh’s Export Promotion Bureau released data confirming that cement exports had witnessed a 21% increase in the first seven months of the current fiscal year (July 2011 – January 2012). The boost in the cement sector is because of the rising construction activity in the country & increasing development expenditure by the govt. Due to this the sales of cement sector will also rise every year. Product Situation
Since Cement is a specialized product, requiring sophisticated infrastructure & production location, so, Most of the cement industries in Bangladesh are located near/within a river side that are rich in clay. Iron & mineral capacity so ‘Anchor’ cement is situated near to the bank of river ‘Kirton Khola’. Anchor cement installed capacity is 1,600 tpd at present with the turnover of 50 crore in a year. Competitive Situation:
In competitive situation we will describe all the competitors of Anchor Cement producing gray cement. There are 70 + firms in the market along with Anchor Cement. All these companies are using different marketing tactics to grape as much market share as possible but they are acting like a cartel under the tree of APCMA. They are producing same quality of cement with all most same price and features that’s why competition in the market is very tough for local as well as foreign market. All are using same bulk & penetration strategies to cover major portion of the market. Some are using cost leadership strategy but due to cartel act behavior they are not getting the target results that they want to achieve. Currently Crown cement is the market leader while Anchor cement is a niche in the national market but it is the leader in the local market of Barisal & southern part of Bangladesh. Distribution Situation:
Anchor Cement Company uses different channels of distributions to transfer the...
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