Customer

Article from Karl Moore: Karl Moore is PHd associate professor in the Faculty of Management at McGill University was responsible for writing the article “The Marketing Concept- RIP” which was published July 17th, 2006. He discusses the decline and the increasing irrelevance of the marketing concept idea and how firms are adapting this strategy in today’s market.

Moore emphasis on the following points:

1. Importance of market research before launching a product
2. The need to focus on the product’s usage by the end users
3. The difficulty firms face to implement the marketing concept strategy in today’s market place.

The author uses the example of the high-tech sector and explains why he feels the marketing concept applied in this way is no longer relevant, then goes into detail about how it is not just limited to the high-tech sector. To understand Moore’s article you need to understand what marketing and the marketing concept it first. Marketing consists of individual and organizational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas.

The main principles of marketing are to satisfy customers, target the “right’ customer, facilitate exchange relationships, stay ahead of competitors and enhance profitability (Crane, Kerin, Hartley, & Rudelius, 2008, p. 7). The ultimate goal is to satisfy targeted customers, seeking their loyalty and consumption. The marketing concept can be defined as the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition (Crane, Kerin, Hartley, & Rudelius, 2008, p. 17).

In his opening paragraph Moore mentions that the marketing concept is “coming to a close” and heading towards a “semi-retirement”. I strongly disagree with this statement. Why? Since the marketing concept era many companies are now transitioning to the market orientation era (Crane, Kerin, Hartley, & Rudelius, 2008, p. 17). The focus of the market orientation era is mainly on continuously collecting information about customer needs and competitors’ capabilities and to use this information to create value, ensure customer satisfaction and develop customer relationships (Crane, Kerin, Hartley, & Rudelius, 2008, p. 7). Let us look at how Netflix took the Marketing concept in stride. Netflix involved the identification of the unmet or underserved customer needs. Reed Hastings, founder and creator of Netflix started off as a video rental customer himself, tired of paying late fees and having to run to the video store when he wanted to watch a movie, he decided to create something simpler and more convenient for customers (Dean. 2010). He was able to draw upon personal experience to help establish the opportunity nucleus and survey what other customers wanted out of a video store.

The movie rental industry had already established methods surrounding video rental, late return policies, and membership rules. Hastings believed that without competition, these brick-and-mortar movie rental companies would never have a reason to change (Dean. 2010). Reed Hastings, decided to disrupt the traditional video rental business by introducing a new twist on the home movie service (Dean. 2010). A perfect example of advances in technology, adaptation of DVD media over VHS, and an unmet consumer demand is responsible for the successful launch of Hastings’ vision of Netflix.

Not unlike other innovative start-up companies, Netflix has undergone several strategy shifts (Dean. 2010). Each change in focus or direction has assured that the company remains dominate in the movie rental industry. It appears that Hastings has followed the Marketing Concept to a tee, he started off with collection information from customer needs’ (his own) and the competitors capabilities (video rental companies were not in a position to change their rules and regulations) and he completed the circle by using customer knowledge to create customer satisfaction as Netflix still remains more popular than Blockbuster or Rogers Video.

Moore goes into more detail about the high tech industry, giving the example of the Sony walkman and how the product was developed. He also explains that if Sony followed the Marketing concept theory in creating the walkman, it would have failed. He follows this explanation of the Sony walkman with the comment “with many high tech products you cannot get a very reliable data from current customers about the potential uses of your future products. ” This statement is by far the most ludicrous statement thru out the entire article and makes absolutely no sense.

The vast majority of high tech industries rely solely on how customers perceive new and future products. Look at the Apple IPods. Apple made sure they always stayed ahead of the game by releasing new hardware, software, or better and newer applications for the iPod (Taber. 2007). People love new and flashy products so this was a great way to sell a product. The iPod has become a fashion accessory and a must have. People salivate if there hear a new and more updated version of the iPod is coming out, they want a product that can hold more music and data.

Why would they want a “dinosaur” iPod that only holds 1000 songs when they can get an iPod that holds 2000, takes videos, and has downloadable apps? In this sense, the concept strategy made sense because it consistently advanced Apple’s emerging goal of making the Mac the hub of a digital lifestyle (Taber. 2007). It also aligned with the company’s strategic goal of frequently releasing innovative new products in an effort to stay ahead of a curve of consumers who quickly get tired of old gadgets.

As usual, it was a strategy that leveraged the benefits of existing technology, and it made sense from the point of view that it was consistent with what historically drove the company, is bringing products to people that were stylish and easy to use. So if Apple didn’t use the marketing concept strategy, it would have failed. The one paragraph in Moore’s article that I do agree with is when he mentions that a great deal of high tech industries do spend more time launching a new product then developing the product.

Models of new product development prescribe critical stages that organizations should go through to have a successful product launch (Crane, Kerin, Hartley, & Rudelius, 2008, p. 262-271). Regardless of the model, critical phases include: product idea generation, idea screening, concept testing, and business analysis, marketing mix development, test marketing and commercialization (Crane, Kerin, Hartley, & Rudelius, 2008, p. 262-271).

In theory, going through these stages systematically helps organizations weed out the potential failures. Customer focus is an integral component of the product development process that is often ignored. The need to incorporate the voice of the customer (adopt the marketing concept) at every phase is imbedded in these models of new product development, each phase contributing additional knowledge as to what customers want (Crane, Kerin, Hartley, & Rudelius, 2008, p. 263-264). Yet concept testing and test marketing are most often overlooked y new product development teams as they rush to get their product to market before the competition (Crane, Kerin, Hartley, & Rudelius, 2008, p. 259-260). Unfortunately, this can lead to fatal errors when customer expectations are extremely high – or when dealing with a sophisticated customer – as is the case for high tech products. An example of this was the Apple Newton; Apple pre-announced the Newton before it was ready. In terms of the product offering, it was neither a complete product nor a fully functional product (Hormby. 006). In the hurry to get to the market, Apple had not fully developed the handwriting recognition software, one of the featured attributes (Hormby. 2006). While innovators and early adopters are willing to take risks on new products, they do expect a minimal level of performance which the Apple Newton could not deliver. Moore also makes a valid statement in his end paragraph with respect for non-tech marketers have to know who their key customers will be and how the marketers should focus their research efforts.

Customer focus, a core element of the marketing concept, is certainly a widely adopted buzzword today, one which is stressed in all introductory marketing texts. While the marketing concept applies to all industries, it is particularly important in technologically driven industries that have been among the first to introduce quality techniques, many of which begin with capturing the “voice of the customer”. (Crane, Kerin, Hartley, & Rudelius, 2008, p. 259). Look at how Apple launched its iPod back in 2001 to appeal to customers.

When you watch the iPod commercials on television – what did you see? You see a bunch of people dancing on a colored background. There are women and men, but you don’t know anything else about them. This advertisement is ingenious for many reasons. For one, you don’t know where these people are. They could be anywhere in the world. Secondly, you don’t know who they are or what they do for a living. They can be anyone. All you know is that they are enjoying the music and rocking out. This is what makes that commercial so great and such an excellent idea.

It allows anyone in the world to be that person. In conclusion, Moore is correct in his assumption that many high tech industries are in a rush to release their product before actually developing their product. However, it is very unrealistic of him to state that if companies follow the marketing concept they would be doomed to fail, he needs to look at many of the successes of the high tech market such as the Apple iPod or Netflix and how many non-tech industries can learn from Apple’s/Netflix marketing strategy.

Although this article was written back in 2006, many advances of technology have taken place and it’s foolish to think that the marketing concept had nothing to do with this advancement.

Refernces

1. Crane, F. G. , Kerin, R. A. , Hartley, S. W. & Rudelius W. (2008).
2. Marketing. (7th Canadian ed. ). Toronto, ON: McGraw-Hill Ryerson. Taber, David. (17 Sept. 2007 ).
3. “The Taber Report on IPod Marketing. ” The Taber Report. Retrieved April 25, 2011, from http://www. taberconsulting. com/download/dtr-35. htm. Weisbein, Jeff. 1 March. 2008).
4. “The iPod Success: Thank the Marketing Department”. Retrieved May 5, 2011, from http://www. besttechie. net/2008/03/01/the-ipod-success-thank-the-marketing-department/.
5. Hormby, Tom. (7 Feb. 2006). “The Story Behind Apple’s Newton”. Retrieved April 25th, 2011 from http://lowendmac. com/orchard/06/john-sculley-newton-origin. html.
6. Dean, Gregory. (10 Nov. 2010). “Netflix: An Online Business Beyond Genius”. Retrieved May 15, 2011 from http://marketography. com/2010/11/10/online-business-beyond-genius/.

Walter and Traction.

The customers and subscribers of the internet and cell phone service started sharing information with each other and decide to file a class action suit against Walter and Traction. Class Action Fairness Act (CAFE) is at the national level of Tort reform legislation. This type of legislation must consist of 1 00 members and citizen from various states. “Intentional tort disparagement is the publishing of a false statement of a material fact about a business’s product or service” (Subtask, Browne, Heron, Geometry-Meyer, Barracks, Doge, & Williamson, 2012). Suggestion to President/Owner—-Divvies Hernandez Even though what Traction is doing is not illegal and I’m sure was clearly stated in the customer agreement that was signed by the customer its sometimes best to settle than to waist money and take your chances on someone else deciding whether the company should be help legally responsible. The owner or whomever is making the decisions should decide on what the person or group of people are trying to get out of this case is worth settling on.

If the complaint is that they weren’t given what they thought they were given than the company may want to give them what they expected for the time period that the service was paid for. With prepay payment is usually made one month at a time so the company may want to give them a free month with the expectations they had with their service and clearly state what the future agreement will be after the settlement has been taken care of. The company will than need to change advertising and contract agreements disclosure to make sure this is prevented in the future.

Introduction

This case details the position of Carol Sullivan-Diaz, the 28-year-old daughter of Walter Sullivan who died at the age of 56. Walter had bought a Ford dealership in 1983 that eventually grew into what is now Sullivan Ford Auto World. The business sells cars but also services them. Carol is disappointed by current turnover in car sales and sees that the service revenues are below average for this size of dealership. Carol’s now has to decide what way to tackle the future.

She can sell the business but will probably only return a value below what it might be worth if profitable or she can look at the operation and see if she can turn it around herself. While she has a bachelor’s degree in economics, an MBA degree and a background in health care management, she also served time working with her father so she appears to have the skills and experience to tackle the issue if she so desires. Characteristics of Services The car sales and car service are closely linked.

Here, we look at the car service following on from the car sale and both these processes are happening with the same provider, Sullivan Ford Auto World. While we generally say that services are intangible, in this case the car sales service has a high goods content that is the car at the end of the process. The car service on the other hand, is intangible. The core business here can be looked at as the car sales and the supplementary service is the car servicing. Sullivan is trying to establish the service as a stand-alone service. Sullivan could have customers that have not bought a car but have their own car serviced at the garage.

But Sullivan would hope that when they sell a car, this customer will come back regularly to have their car serviced. However, survey results suggest Sullivan is not getting repeats. Another difference here is that when a car is sold, ownership changes to the buyer but in services we say that ownership does not change. What happens is that the car service “process” changes the physical possession that is the car. As we know, services cannot be stored. The physical car can be stored and kept as stock or inventory but the car servicing cannot.

Therefore, it is essential that the servicing is kept working in order to generate turnover. If the service department has capacity to service ten cars per day, it must try to meet that target because if it is idle at any stage, that time (and time is money) cannot be regained. In the sale of a car, the customer can be involved as they are making the purchase decisions. They will decide if they need or want the car and then seek information. They can view the car, test drive it, smell the “new car” smell and enjoy the experience. They can contact Sullivan and see what’s on offer in advance.

With the car service, the customer is not really involved (except to deliver the car for appointment) as car service is specialised and the customer will not be present when the service is being carried out. They cannot see the “service” and may have to wait and drive for days to be sure the service was successful. When the customer is buying a new car, they will be fairly sure of what they are getting. Ford has a good reputation and is seen to be a reliable brand, so the customer can be confident. The service is not the same. It is harder for Sullivan to maintain consistency with the service.

Sullivan will be depending on his own mechanics to provide the quality whereas the car purchase will depend on Ford. Also, if there is a problem with the service, it will be difficult to hide this from the customer. It will be essential for Sullivan to be aware of the customers expectation so as he will not be disappointed afterwards. I also feel that there is a feel-good factor to buying a car and the customer is often happy to be involved in the deal but with a service, it usually happens when there is a problem so the customer may not feel happy when availing of this service and needs to be made feel comfortable. Walt said this himself when talking about the front end; “everybody’s happy when someone is buying a new car” and also observed of the service side “customers always seem to be miserable back there”). Also, as it takes time to service the car and doing without the car may inconvenience the customer, they may have a negative perception before the process starts. There is need to be aware of the difference between the car service and the customer service. The service may be good but the customer service can be bad at the same time. Customer Behaviours ) A search quality is a characteristic that can be easily accessed before purchase.  In the case of the car, the customer will be able to research qualities like colour, performance. He can get a feel for the car by looking around the interior, the boot, see what the engine looks like and sounds like. These are qualities he can use his five senses to evaluate. They are tangible. Ford’s reputation should eliminate risk when purchasing. However, this is not the case for the service. He cannot have a pre-purchase experience. There is no tangibility. For this, his behaviour will change.

He may seek testimonials from others and depend more on word of mouth. He will seek advice on the reputation of Sullivan’s service. From the case, we see that there are problems with the service. Delays at processing, inconvenient scheduling, availability of parts etc. There is a risk here as the service may not be satisfactory so Sullivan must reassure the customer. Sullivan must ensure that the mechanics are fully trained and that customers have confidence in them  An experience quality is a characteristic that can only be assessed after use. Generally, there is a feel good factor after someone buys a car.

With a reliable brand like Ford, customers would feel little risk involved and would enjoy their new car. Providing that the car runs well, the buyer should be in a position to pass on this experience by word of mouth. This is not true of the car service. Firstly, the customer may not know if the service worked. There is a risk there even after the service. One could, for example, have left the car in for servicing because every now and then the car may lose power. I believe that the customer will still be wary for some time after. If the car then loses power, there will be that sense of let down.

I have found I am often on edge after a service, almost waiting for something to go wrong. If the customer is unhappy with the delays, etc outlined earlier, that too will affect the experience quality. Sullivan’s customers do not seem to be enjoying the experience between delays, inconvenience and a grubby work entrance as well as the mechanics not explaining what is happening. c) A credence quality is a characteristic that consumer may have difficulty assessing even after purchase because they do not have the knowledge or experience. This may not be an issue when buying the car.

The buyer immediately knows how a new car is. One expects that the driver is experienced enough to know how the car feels and also would be aware of their expectations. When it comes to the car service, the customer may not know anything about car mechanics but will know how they feel after and if they are happy with the car. They do not need any expertise to know if the problem has been resolved. Sullivan’s people are not communicating with them well. d) There are different risks involved with the two services. Ideally, buying a new car should involve no risks but you can be unlucky.

You could end with a car that has problems but this is reasonably rare. The car service is different. You have to trust the service provider that they can do the job. You may be depending on recommendations and unsure of the quality of the service. The customer will not be present so has to rely on the provider that they will do the job correctly (and will work first time, “was it fixed right”) and indeed must feel sure that they will actually do the job at all. This is an area open to fraud, as the customer will not see the process. The customer here may be worried about the risk of delays.

It tells us that Sullivan is slow to write the orders, not convenient when it comes to scheduling, unsure of availability of parts and this all takes times. The decision making process for buying the car will be as follows. First, the customer recognised the “want” for the car. Next they will seek information. The information will come from research, word of mouth, specialist publications, etc. Step three will be the evaluation of alternatives. The alternatives are fairly limited and will be to decide if he wants to take public transport, get a bicycle, depend on lifts but if one ants to be independent, there are no alternatives. Next is the purchase and then after that, evaluate the product. Has it satisfied his needs? Was it of value? f) The car service will have a different 3-stage process. Firstly, at the pre-purchase stage, the customer will be aware of their need and that means that the car needs servicing. They will explore solutions and that may mean going to the service provider or look for alternatives. They will talk to third parties and maybe the supplier themselves. This will help them identify risks and their desired service level.

The zone of tolerance will be established at this time. An alternative will be to service the car at home or get a friend who is skilled to do this that they trust. If they decide to go ahead, they will then make that decision. Service will be delivered and payment made. After this step is the post-encounter stage. Here they will evaluate the performance and compare it to their expectations. Are they satisfied or not with the service? Interestingly, the survey shows that the customers are made aware of what they had to do if they needed a service but less than a third had been introduced to someone in that department

Flower of Service Below is the Flower of Service and analysis of the problems facing Sullivan. The “core” is the car servicing and both the facilitating services and enhancing services surround it.  Facilitating Services Information – This is the first step in the service where the customers get the information they need. In Sullivans, they are told what to do if they need a service but they are not being introduced to any of the team. Here they should find out about the scheduling, how long the service will take, the price, does the warranty cover it, etc.

Order Taking

This is where the bookings are taken; the scheduling is put into place and so on. Sullivans seem to be falling down here. Their survey results show the worst ratings and things like promptness of orders, scheduling convenience, service hours convenience are all pointed out. The fact that all orders were hand-written slowed down processing and often the telephone ringing slowed it down even more much to the frustration of the customers. Another frustration was that if the job was not of routine nature, a price could not be given on the spot. The customer would be called later in the morning with an estimate.

Billing

People expect clear and precise billing and there is nothing to suggest that there is a problem here and as all orders are handwritten and with carbon copies, it should be easy for the bills to be clear. Also, the customer is either given an instant quotation for routine work or will contacted with a quotation so this should make billing clear. Payment – As the cars are due to be collected by 6pm on the day of the service, it would be expected that payment be made then. The service writer would have all the paperwork in order when the customer would collect the car. Enhancing Services

Consultation

This is more than just information. Information really consists of answering the questions of customers whereas consultation is deeper and probes the specific needs or requirements of the customer and then draw up an appropriate plan. This would be important in an area where the customer is unfamiliar with actual service. The mechanic should diagnose the problems and then take the customer step by step through the possible solutions and alternatives. Here in Sullivans, they explained what to do when a service was needed but after that not many were introduced to someone in the service department.

This is where the expertise lies and therefore consultation should have followed. The survey also said that customers were offered poor explanations of the work done and found the staff rude and impolite. Hospitality – This is the welcome that customers should get on arrival and a sense of being a valued customer. This should be easy to deal with as a smile and a friendly face costs nothing. Feargal Quinn, of Superquin fame, says, “If somebody comes to us looking for a job, we make sure they know how to smile”. It is the small things that make people feel welcome. Sullivans seem to be failing here too in the service department. When greeting the customer, there must be a smile, it must be sincere and there must be eye contact”. In Walt’s time, he made everyone welcome in the front office and had little time for the service area. This showed. It was shabby and greasy. The customers were interrupted by ringing phones while waiting for their car reports to be written. Rick Obert was “gruff and argumentative”. The service department people feel uncomfortable bringing people over to the service bays so that does not seem hospitable. There was a man in a confrontation over his service so that certainly lacks hospitality and should have been dealt with immediately.

Safekeeping – People expect that their possessions would be safe while being kept by the service provider. The customer here would hope that their car is safe while on the premises for the service and when not being worked on by the service people, that it would be parked in a safe place and manner. A perception here could be that Sullivans is lacking here. While there is no direct evidence, the fact the building was “old and greasy” and the service writers’ room was “cramped with paint peeling” might lead customers to believe there is a lack of safekeeping in the department.

Exceptions

These are services that fall outside the normal service. We are told that the scheduling is inconvenient and service hours are too. Here exceptions should be made. There does not seem to be an atmosphere of making the customer satisfied. It seems as if Walt’s idea of not bothering with the service department has grown. There does not seem to be an ethic of problem solving. I felt from reading the piece it was a case of take it or leave it. There also seems to be no way of handling complaints. The man who Was shouting at the end had issues of “.. three visits…service stinks…who s in charge”. This should have been dealt with quickly in a hospitable manner. Advice On Marketing Mix Carol has a background that could be very useful in dealing with this. She has a bachelor’s degree in economics, an MBA degree and is involved in health care management. She worked with her father so she has the skills and experience to deal with this. The 7 Ps are; Product, Place, Promotion, Price, Physical Environment, Process & People. I will look at these individually and see how Carol can mix them to help improve her situation. Product – The product in this case is the actual car service.

This is the core of their offering and it is essential that this is a safe, reliable product. The customer has to be satisfied that the service is of quality. They could give the customer some confidence by making sure that they are introduced to a member of service team who can answer any questions or worries they might have about the service. Customers did worry about the product. They worried about how much the service might cost, how long it took, how did the warranty sit, etc. These are basic parts to the product that must be addressed by Carol. Place – The “place” of Sullivan’s car sales appears to be of no concern.

It is on an intersection of a busy urban highway, with many new developments near by. In 1996 he bought the current site and developed it into what it is now. The place seems to be known as the study says “everyone seemed to know Walt”. But the worry from Carol’s point of view for the service department is that this area cannot be seen from the road. So people looking for services and who may not be as familiar with Sullivan’s could easily pass by. On top of that the building looks “old and greasy”. Promotion – As far as I can see from the study, the only promotion that takes place is on site promotion.

The garage is decked out with bunting, flags and banners that say “Lets Make A Deal”. This is an area that she could easily develop. She could offer a free service with a car sold. She could also make appointments in advance by working out the customers’ average mileage and schedule an appointment like a dentist would. She could manage supply and demand better by offering discounts for services on days she finds are quiet. She has the academic background for this as well as her medical and family business experience. Price – In this case study we are not told that the price is affecting the number of customers that avail of it.

Price is often the most thing that will make customers decide where to buy so Carol could look at this. Where there is an issue is the explanation of the work, how much it will cost and will it work on first attempt and not be a recurring cost. Physical Environment – Judging from the description of the garage, the physical environment of the service area leaves a lot to be desired. Firstly, the service area is hidden behind the showroom. Even though the equipment is modern, the building is old and greasy. The service writers work in a cramped room with peeling paint and the customers have to stand and wait while orders are being written up.

This seems like an old style office plan and not acceptable in modern day car dealing. The study has told how stressed and bothered customers are when in the building so the physical environment should be made pleasant to help calm the clients. Process – The process here needs an overhaul. Customers find the order taking slow and it can be interrupted easily by the phone ringing. She must computerise it immediately. The customer leaves the car and collects it later. This is fine but the service hours are inconvenient along with the scheduling so the whole process is a trauma for the customer.

She needs to implement an evaluation system that she can monitor the quality of service and maybe get the staff to explain the nature of service. She needs to put a new process in place that will allows the car to be dropped off and have a convenient entrance, instead of a side door of a greasy building and then be met with a smiling service writer who will schedule a service that is convenient. People – This is a very weak area for Carol. The survey results show that the people served by Carol and her sister were much more satisfied. The customers reported that interpersonal variables were poor.

For example, politeness and understanding customer problems rated badly. The service manager was said to be gruff and argumentative with customers. This has to be addressed. When people are dealing with a possession as personal as a car, the dealer has to be polite, patient and understanding. Larry Winters is vital here. He has been leading salesman and has shown strong management capabilities. She also needs to employ more mechanics to utilise the equipment and have the service department working to capacity. Conclusion I think Carol has the skills to turn her business around. She is educated and has experience in her own business.

While it is important to analyze the existing competition, it is also important to know the future threats in terms of potential new entrants to the industry. For example, if Honda launches its hybrid car in India and Pakistan, it has to take into consideration that MARUTI SUZUKI or TOYOTA might enter that segment fairly soon. Analyzing this threat may assist in supportive strategic planning for retention of the market share, and defining tactical plans to ensure that by the time the new competition arrives, HONDA has already driven its customers to an even higher degree of value, in turn creating a sustainable competitive advantage.

It’s all about anticipating any new arrivals or the people jumping in the van for the purpose of gaining market share and profits. Substitutes are considered a broader range of competition. These tend to drive away the potential and existing target markets. For example, introduction of fresh juices may drive away the potential or the existing target market (customers) of soft drinks. Substitutes give a harder time to the actual products. While comparing competition, it is easy to associate product features and attributes.

On the contrary, when it comes to substitutes, it is the nutshell impact that matters the most. In the similar example of fresh juices against soft drinks, the debate starts off with the soft drinks containing citric acid and high levels of sugar. On the contrary, fresh juices are fresh, healthy and hygienic. When the fresh juice industry argues with the soft drink industry, these arguments can be used. However, PEPSI cannot highlight the fact that soft drink isn’t good for health while arguing with COKE. Therefore, the tactics and plans change in cross industry argument.

It is, therefore, very important to keep a close check on the potential substitutes and customize the product to such an extent that even the best substitutes cannot compete or take away the market. The main aim of a firm going global is to expand its market, get maximum market share across geographical boundaries, and attain large scale profits. Therefore, it is mandatory that majority of the factors are in favor of foreign investment, inviting internationally competing products and brands to compete with the local ones and provide best quality goods and services to the customers.

It has been witnessed, on a general note, that the products that are relatively customized to meet the customer tastes and preferences to a larger extent are the ones that are successful over a longer period of time. McDonalds is probably the most wide-spread fast food chain in the world and is a successful brand. McDonalds has a standardized variety of products and services, however, some localization is adopted when catering to different markets.

Line extension is adopted, i. e. there are some McDonald products that are present in the Asian markets, while not known about in New Jersey. In such a scenario, McDonalds can be a prime example of a successful application of blending globalization and localization. It is by no means meant that maintaining a standardized product line is a bad idea. Microsoft is one of the top ten companies in the world. The major service provided by Microsoft is the MS Office suit and the Windows Operating System. These services are standardized with specified list of features offered across the globe.

That is a prime example of a standardized product line, and is a successful implementation of the same. Localizing Services Industry Services are intangible in nature, and have direct interaction with the customer. Just like the quality of product depends on the consistency of the processes, the quality of service strictly depends on the quality of workforce. As a product interacts with the customer to give the utility, the workforce interacts with the client (consuming the service) to provide the requested service.

The blend of localization has a critical application on services, when rendered abroad. Consider the example of the Call Centre Industry. Much of the call centre jobs have been outsourced to India and Pakistan region in Asia. Conversely, it can also be said that India and Pakistan are rendering their call centre services to the western world, particularly the US. When the Asians are trained for the Call Centre jobs, their accent is specifically changed to the US style, by different training methods, if the Call Centre provides services to a US based firm.

This is the localizing impact on the services industry. The services rendered have to be in the US accent, therefore, relevant training is provided. A common example of services is the consultancy services. Their advice varies with the nature of the customer. Another common example is of a barber, who provides a hair cut as per the customer demand. In case of a consultancy service or a barber, the nature of the client would provide the variance in service even from the same service provider.

This assures that the nature of customers vary even within a single region. Similarly, it is possible that a customer may demand exactly the same or exactly the opposite of the service asked by the previous client. This would hold true in the same or a different region. The nature of the service has to be customized as per the local laws and regulations as well; not just anything can be given to the customer that he demands for. Alongside the laws, it is also important to respect the norms, values, customs, culture and tradition of the county.

This assures that the blend of localization holds valid for the service sector as well, and it needs to be customized as per the local needs, desires and preferences, similar to the concept stated for localization in products. Conclusion This assignment works on explaining the increasing needs of customizing different products and services as per the needs and situations existing with customers across different regions. Another major discussion was the reasoning that leads to such customization.

It is the different STEP scenarios prevailing over different regions, and alongside the 5 forces of porter that have a huge impact over the product design and development. These two are the major influencing factors on customization of products and services. Going global isn’t as easy as starting a business in a hometown, Many factors need to be considered, a vast degree of analysis and research work needs to be done to find the customer wants, tastes and desires. These all should be analyzed keeping in mind the customer affordability.

Pricing, therefore, many a times, is the factor that can make the product fail or succeed in a local market. For that matter, the 4 P’s are to be designed giving heavy weightage to the international markets and the customers.

Works Cited

Albo, Gregory A World Market of Opportunities? Capitalist Obstacles and Left Economic Policy Socialist Register. 1997 Altvater, Elmar Financial Crisis on the Threshold of the 21st Century Socialist Register1997 Applegate, Austin and McFarlan. Corporate Information Strategy and Management 6th Edition. McGraw Hill Irwin 2003. Ashutosh Sheshabalaya The Three Rounds of Globalization,

The commercial market is the largest segment of the business market. It includes all individuals and firms that acquire goods and services to support, directly or indirectly, production of other goods and services. When Lufthansa buys aircraft built by European consortium Airbus Industrie, when Sara Lee purchases wheat to mill into flour for an ingredient in its cakes, when a plant manger orders light bulbs and cleaning supplies for a factory-these transactions all take place in the commercial market. Some products aid in producing another good or service (the new airplane). Others are physically used up in the production of a good or service (the wheat). Still others contribute to the firm’s day-to-day operations (the maintenance supplies). The commercial market includes manufacturers, farmers, and other members of resource-producing industries; construction contractors; and providers of such services as transportation, public utilities, financing, insurance, and real estate brokerage.

The second segment of the organizational market, trade industries, includes retailers and wholesalers that purchase goods for resale to others. Most of these resale products, such as clothing, appliances, sports equipment, and automobile parts, are finished goods that the buyers market to final consumers in their market areas. In other cases, the buyers may complete some processing or repackaging before reselling the products.

For example, retail meat marketers may carry out bulk purchases of sides of beef and then cut individual pieces for their customers. Lumber dealers and carpet retailers may purchase in bulk and then provide quantities and sizes to meet customers’ specifications. In addition to resale products, trade industries but computers, display shelves, and other products they need to operate their businesses. These goods and specialized services such as marketing research, accounting, and management consulting all represent organizational purchases.

Government organizations represent the third category of the business market. These include domestic units of government-federal, state, and local-as well as foreign governments. This important market segment purchases a wide variety of products, ranging from highways to social services. The primary motivation of government purchasing is to provide some form of public benefit, such as national defense or pollution control.

Institutions, both public and private, are the fourth component of the business market. This category includes a wide range of organizations, such as hospitals, churches, nursing homes, colleges and universities, museums, and non-for-profit agencies. Some institutions-state universities, for instance-must rigidly follow standardized purchasing procedures, while others may employ less formal buying practices. Business-to-business marketers often benefit by setting up separate divisions to sell to institutional buyers.

Segmenting Business-to-Business Markets Like consumer markets, business-to-business markets include wide varieties of customers. By applying market segmentation concepts to groups of business customers, a firm’s marketers can develop a strategy that best suits a particular segment’s need. The overall process of segmenting business markets resembles consumer market segmentation, but it divides markets based on different criteria, usually organizational characteristics and product applications. Among the major ways to segment business markets are demographics, customer type, end-use application, and purchasing situation.

Demographic Segmentation As customer markets, demographic characteristics define useful segmentation criteria for business markets. For example, firms can be grouped by size, based on sales revenues or number of employees. Marketers may develop one strategy to reach small firms and another for Fortune 1,000 corporations with complex purchasing procedures. Recently, small businesses-especially companies with under 100 employees-have caught the eye of business-to-business marketers. This fast growing segment of about 20 million firms offers tremendous potential. Many former corporate executives are starting their own companies. These new entrepreneurs spend money more willingly on technology and equipment than other entrepreneurs. As a result, IBM’s fastest-growing market segment is companies of 50 employees or less, who need sophisticated technology to compete against bigger firms.

Service companies, too, may segment their organizational customers by size. Wells Fargo Bank adapted credit scoring, a computerized system to evaluate individual consumer loans, for small-business customers. It then used direct mail to offer lines of credit to small businesses that “pre-qualified” based on the bank’s lending criteria. Not only does it allow customers to avoid filling out lengthy applications-they had to submit only a one page form to Wells-but approval comes quickly, as well. People were willing to pay a higher interest rate than they might have found elsewhere for convenience and flexibility of the loan arrangement. Other small businesses agree; in a recent year, Wells reported a 61 percent increase in earnings from small-business loans.

Segmentation by Customer Type Another useful segmentation approach groups prospects by type of customer. Marketers can apply this principle in several ways. They can group customers by broad categories-manufacturer, service provider, government agency, nonprofit organization, wholesaler, or retailer-and also by industry. SIC codes provide a useful tool for segmenting business-to-business markets by customer type.

Customer-based segmentation is a related approach often used in the business-to-business marketplace. Organizational buyers tend to detail much more precise product specifications than ultimate consumers do. As a result, business products often fit narrow market segments as compared to consumer products. This fact leads some firms to design business goods and services to meet specific buyer requirements, creating a form of market segmentation. Standard Industrial Classification (SIC) codes The federal government’s SIC system greatly simplifies the process of focusing on a particular type of business customer. This numbering system subdivides the business marketplace into detailed market segments. In this way, it standardizes efforts to collect and report information on U.S. industrial activity.

Problem Statement

LongXi is geared to increase its market share for small multi-cylinder diesel engines but the growing quality concern over production of critical parts is jeopardizing LongXi’s growth in the agricultural sector market. Continued quality issues with our DGS, a critical part within LongXi’s Small Multi-Cylinder Diesel Engine has resulted in breakdown, engine failure and loss production at several customers. Customer complaints are increasing and we need to react to and eliminate our quality concerns. We must develop ways to improve quality in house.

Our QC group is well established therefore we are recommending that we collect and analyze data relative to why the DGS is failing and from that data collection, make improvement to correct the recurring quality problems.

Situation Analysis Customer Relationship

Customer relations for LongXi Machinery Works are highlighted in the company’s background. We are one of several medium sized companies that share 55 per cent of the market share not occupied by larger single-cylinder engine manufacturers. Our primary market is the agricultural machinery sector of China.

Since our inception, our competitive priority was in manufacturing various single and multi-cylinder diesel engines. These engines served four primary customers. Due to changes in China’s agricultural machinery sector that increased buying power, sales of diesel-powered agricultural machinery is seeing a ten percent continual growth over a five year period. Because of this growth, our sales estimate equate to 85 percent of the overall 10 percent growth over the same five year period. The attached table shows a comparison to one of our primary competitors – Changchou Diesel Engine Works (Changchai).

As you can see from the comparison table, LongXi is a much smaller company to Changchai. Changchai is one of the four large manufacturers that account for 45 percent of the market and we are one of the several smaller companies that equate for the remaining 55 percent.

Process Analysis Sawing Department

The duo-gear shaft (DGS) is manufactured at LongXi using a batch manufacturing process in which small quantities of parts are process at a time. The process flow for the DGS starts in the warehouse where raw material is sawed to the desired length. Three of six machines are used to prepare the raw material for the DGS.

Based on the initial step in the process flow, using the six available machines will allow more parts to flow through the process which would increase operating cost, but would significantly reduce process time. This process change could help in reducing the overall cost of the DGS unit.

Machining Department

The next operation in the manufacturing process is the machining process. This process consists of Grinding, Lathe and Drilling machines. Only the lathes and the drilling machines are used in this area of the machining department in the initial phase of the machining process.

The lathe process is the first process in the machining department. After the lathe process, parts are stacked on each operator’s tool box until the material handler moves them to the drilling operation. After each machining process the parts are transported via carts by a material handler to the next process. Typically, in other machining operations, the lathe and drilling process could be combined into one operation where the parts would be cut to length and the holes would be drilled using the same machine. This would require significant capital investment by LongXi but it would reduce wait and transportation time between processes.

This would also eliminate the need for operators to stack parts on their tool boxes.

Thermal Treatment Department

The thermal treatment process is the most important process in respect to the overall quality of the DGS part. As stated, thermal treatment is needed to develop the proper hardness of the DGS after the initial machining operations. With respect to the heat treatment process of the DGS, the DGS goes through a preheat process where the part is heated to approximately 200c – 300c for ten minutes. Workers were then expected to judge this process based on visual cues and overall time.

Since this is the initial phase of the heat treatment process, it is important that the part is preheated to the correct temperature to maintain consistency throughout the remaining processes. Perhaps an automatic temperature sensor and timer can be added to the preheat furnace to indicate when the part is within the temperature range for the allotted time. This would eliminate the inconsistency of the workers judgment. Processing the DGS through the main furnace is set up to have the furnace monitor the heat cycle and times and then records them on a chart recorder.

While this is good, the operator is once again asked to manually hold the parts until the cycle is complete. This again can introduce inconsistency into the process. The tempering process is a very important step in the overall heat treatment process. This step is automated and electrically controlled. There is a ten minute wait time for each basket of parts between the quenching process and the tempering process. The DGS is then returned to the machining department a second time for grinding. This operation is a two shift operation utilizing one operator per shift.

The attached Fishbone chart outlines possible problems causes we are currently experiencing with the overall manufacturing process. In summary, the current process to manufacture the DGS is setup as a job shop where similar machines are grouped together. Although this process creates flexibility with the way product flow through each operation, the manufacturing process for the DGS at LongXi can be improved significantly. We need to create a separate process to manufacture the DGS. One way to do so is to start by combining processes to eliminate non-value-added activities such as part transfer between operations.

The lathe and the drilling process can also be combined into one operation. Adding more automation for part transfer can also reduce NVA. As a result of combining processes, more floor space can be freed up for parts storage.

Total Quality Management

Quality Inspection

Quality management is a major part of the DGS manufacturing process. Approximately 130 quality inspectors are responsible for quality throughout the organization. Three types of inspection are done throughout each operation. Initial Inspection, Patrol Inspection and Final Inspection.

This is an area of quality that needs to be addressed. Typically in manufacturing operations this amount of inspection at each operation is excessive and can lead to problems instead of solutions. With the workers taking responsibility for quality and having a final inspection at the end of each process seem enough for the DGS process.

Customer Satisfaction

In terms of customer satisfaction most of our quality inspection is done to satisfy our internal customers or upstream processes. Quality is built into the product after each operation where the process is not complete until a final inspection.

This done to ensure that the next process/customer receives a quality part with the belief that our external customer will ultimately receive a quality product. We are still working on satisfying our customer in the agricultural market sector in some areas. We are producing a product that meets our customer’s specification, our product has value and we provide adequate support when we have an engine failure. However, in the areas of consistent quality and on-time delivery, we are lacking and must improve. Employee Involvement

Along with the other inspection processes within the departments, workers were also responsible for ensuring high quality production. A process called Self Inspection is used by workers to verify their own quality. Workers were also encouraged to use Mutual Inspection which meant that the quality of upstream operations was verified. Workers were also responsible for notifying quality inspectors to conduct other necessary inspections. Employee involvement is also active at LongXi through the formation of our QC Group. This group is made up of Line Workers, Managers, and Engineers.

The main focus of the QC Group was to focus on the metallurgical issues that might be causing the quality problems with the DGS. The QC Group’s activities were guided by a manual called the “Method”. This manual gave direction on working routines, rules for quality improvement targets, and brainstorming techniques. Instructions for encouraging employee enthusiasm and customer suggestions were also included in the “Method”. We rely heavily on employee involvement as tools necessary to improve our overall product quality. We rely heavily on employee involvement in several ways.

We have teams setup that establishes goals for marketing, production, profits and employee benefits. These goals are later translated into quotas which are distributed throughout the company and are analyzed monthly. To further implement and build upon the concept of employee involvement to improve overall product quality, each department within the company is viewed as a customer and efforts are being made to correct and eliminated product defects before it is passed on to the next customer. However, we must continue our efforts to improve overall quality.

One immediate recommendation would be to continue the developing the Quality Group and the motivation/reward system that rewards employee involvement in quality improvements. There are significant gaps in training between the Quality Group members and the production line workers. Improving the reward system is also a significant improvement that needs to be addressed. Most of our re-accruing quality problems are being generated from lack of motivation of production and technical personnel. A better or improved reward/motivation system will help that problem. Continuous Improvement

Most of LongXi’s continuous improvement efforts were driven by the overall goals of the SOE and the government of China, and demand for external customers. Most of the continuous improvement efforts were directed through the fulfillment of the “Market, Management, Quality, Profit” credo. The management team developed action plans in areas such as technological improvements, quality improvements, and new product introduction. The goals from the development of the action plans were then distributed throughout the company and each month, each department analyzed the actual versus what was planned.

Continuous improvement is also being applied at LongXi such as:

• Adding new assembly lines.
• New group processing centers.
• Implementing action plans for technological improvements, quality improvements and new product introduction.

In Summary, we have made significant steps to satisfy our customers, involve our employees and improve our product line but our overall product quality remains a major concern and the implementation of an overall quality system will be necessary to overcome this concern.

Getting and keeping management involvement in the Quality Group is also a significant step forward in improving the current quality problem. Our management team will have to be more involved in driving and monitoring quality improvement goals especially at the production line worker level. This would ensure that overall production and quality issues are addressed and supported. Technical support continued to be inadequate at the production line worker level which is where the work is done to produce the DGS.

The part is relatively inexpensive and outsourcing the part would add significant cost the engine. Also, it is unclear that this would eliminate the quality problems. We recommend that we consider improvements to the Thermal Treatment department. The best solution would be to make the process 100% automated to eliminate any judgment or inconsistency on the part of the production workers. Although buying new machines would be an acceptable implementation for this decision, it would require less capital investment and provide consistency throughout the thermal treatment process. We recommend that improvements to the initial phase of the thermal treatment process be implemented first since that is the critical first step in establishing verall consistency throughout the process. Although we have made significant improvement and received several quality awards, we recommend that improvement be implemented to provide more technical support at the production line worker level. This would require more management involvement to make sure the right individuals were placed on teams and included in workshops that could train and take information back to the production line. As far as long-range quality management, we recommend that in order to maintain our quality improvement efforts that we become ISO 9000 certified.

Introduction

Berger Paints Bangladesh Limited (BLOB) is a renowned paint company in Bangladesh. The Company was introduced on June 1973 as a private co. Limited by shares registered under the Company Act. In December 2005, the company issued 5% shares to the public and listed with Dacha Stock Exchange (DES) and Chitchatting Stock Exchange (CASE). BLOB previously was known by Jensen & Nicholson O & N).

The name of the company was changed from J& N (Bangladesh) Limited to Berger Paints Bangladesh Limited on January 1, 1980. Currently Ball’s number of shares Is 23,188,940. Its Authorized capital Is Take 400 million and Its paid p capital is Take 232 million. Historical Overview Berger, the market leader In the Bangladesh paint market Is one of the oldest names in the paint Industry and the country major specialty paints business with products and ingredients dating back more than 249 years to 1760.

Louis Berger, a Germen national founded dye and pigment making business In England. Louis Berger and sons grew rapidly with a strong reputation for Innovation and entrepreneurship culminating in perfecting the process of making Prussian blue, a deep blue dye- a color widely used for the uniforms of many European Armies. Production of dyes ND pigments evolved Into production of paints and coating, which till today, remains the core business of Berger.

The company grew rapidly by establishing branches all over the world and through mergers and acquisitions with all other leading paint and coating manufacturing companies. Berger has been Involved In the paint business In this part of the world since 1950, when paints were first imported from Berger UK and subsequently from Berger Pakistan. In 1970, Berger paints Bangladesh limited (BLOB), erstwhile Jensen and Nicholson, had set up its paint factory in Chitchatting at an estimated investment of TX 4 million.

The share holders were Jensen; Nicholson (J; N), Duncan McNeil: Co. Limited and Dada Group. Duncan McNeil subsequently sold their shares to the majority shareholder J&N group. The Dada group share was ultimately vested with the government of the Peoples’ Republic of Bangladesh after the independence of the country In 1971. The name of the company was changed from J&amp, N (Bangladesh) Limited to Berger Paints Bangladesh Limited on January 1, 1 980. N August 2000, J& N Investment (Asia) Limited purchased Government shareholding. In December 2005, the company issued 5% shares to the public and sites with Dacha Stock Exchange (DES) and Chitchatting Stock Exchange (CASE). With the entry of Berger paints into Bangladesh market, the country has been able to benefit from more than 249 years of global paint .

Over the decades, Berger has evolved to become the leading paint solutions provider in this to Industrial, Marine and Powder Coatings. Berger is one of the leading companies in the global paint industry. They offer all kind of painting solution in decorative, industrial or marine segment for both decorative and protective purpose. Berger paint started its sailing into the sea of Bangladesh from pre liberation era, to be precise in 1950. The main business flourished in the post liberation phase.

In Bangladesh the major milestone of Berger paints are given below:

• 1950 – Started operation in Bangladesh by Importing paint from Berger UK
• 1970 – Establishment of Chitchatting Factory
• 1980 – Named as Berger paints (BAD) Ltd from Jensen & Nicholson 0&N)
• 1991 – BEMIRE in Chitchatting Factory 1995 – Establishment of Double Tight Can Manufacturing Plant
• 1999 – Establishment of Most modern State-of-the-art Paint Production Plant in Dacha
• 2002 – Construction of own building for Corporate office in Dacha
• 2004 – Establishment of Powder Coating Plant Business

Overview

Berger has invested more in technology and Research & Development (R &D) than any other manufacturer in this market.  It sources raw materials from some of the best known names in the world: MITOSIS, MOBIL, DUPONT, HOOCH’S and BASS, to name a few. The superior quality of Burger’s products has been possible because of its advance plants and strictly quality controls equal to the best international standards. Investment in technology and plant capacity is even more evident from the establishment of Powder Coating and Emulsion plants at the Dacha actors is an addition to Burger’s capacity, making it the paint giant in Bangladesh. With the strong distribution network, Berger has reached almost every corner of Bangladesh.

The nationwide dealer network , supported by seven sales depots strategically located at Dacha, Chitchatting, Rajahs, Chula, Bogart, Sylphs, Camilla and Enmeshing has enabled them to strategically cater to all the parts of the country. The product range includes specialized outdoor paints to protect against adverse weather condition. Color Bank, superior Marine paints, roofing compounds, Epoxies and Powder Coatings. In each of these product categories, Berger has been the pioneer. Berger also provides customer support connecting consumers to technology through specialized Home Dcord service giving free technical advice on surface preparation , color consultancy , special color scheme etc.

To bolster customer satisfaction, Berger launched Illusion-the first designer paint solution. The company also launched Innovate wood Coating and Powerboat adhesive to cater the needs of customers. Due to Burger’s superior product quality and production efficiency with skillful productively in Bangladesh. As Berger spends a lot for Research and Development sector, they could be innovative and easily could attract the customer group that they targeted. By understanding the customer need Berger innovated a wide range of its product and expanded the product line according to diverse need. Thus Berger has been remaining in the paint industry in a sustainable manner holding a great market share over their rivals.

Berger is also having a significant sales thought out the business p and due to its low cost structure and distinctive competency in quality products along with well recognized brand image; Berger has successfully achieved 27. 4% growth in 2008. Berger knows their customers better than their competitors. Therefore they have some unique strategies regarding the advertisement. By broadcasting their effective and well focused advertisements; Berger is also outperforming in the paint industry. Beside these to reach their customers properly Berger has set up Sales offices at different place of this country to make their product available and to ensure a proper distribution channel.

More over operating with two large factories equipped with state-of-art technology residing in Dacha and Chitchatting; Berger has got a well overage off their network though out the country.

Vision and Mission of the company

The vision and mission of Berger paints Bangladesh Limited (BLOB) is very transparent and tangible. Berger emphasizes highly on the ethical commitment to produce benchmark quality product. The vision and mission statement of the company is:

We shall remain the benchmark in the paint industry by:

• Being an innovative and technology driven
• Company consistently delivering world- class products ensuring best consumer satisfaction through continuous value added services provided by highly professional and committed team.

Mission

We will remain the number one/two in all the categories in which we operate.

Corporate Objective

Burger’s corporate objective is to add value to life, to outperform the peers in terms of longevity, customer service, revenue growth, earnings and cash generation. Berger will be the employer of choice for all existing and future employees. Strategy: Burger’s strategy is to build long-term partnerships with the customers/consumers. With their support, Berger aim to maximize the potential of their business-through a combination of enhanced quality of product, service, creative marketing, competitive Berger pains operate in three major segments of the paint industry.

Decorative Paints

• The objective is to beautify the surfaces with protection from corrosion and erosion
• This business category mainly targets household segment
• Products are being offered to the consumers through dealer network
• Product fulfills the aesthetic value of the consumer
• Major revenue earning area of BLOB Industrial
• Tailor made products to cater to the specific needs of customers
• Products give protection to the surfaces in extreme situation like severe Hazardous environment, high temperature, movement of heavy materials and machinery etc.
• Direct marketing approach is being used to promote the industrial coating
• Main customer groups are Garment Factories, Chemical Plants, Fertilizer Manufacturing Plants, and Consumer Durable Manufacturing Plants etc.

Marine

• Products are being offered mainly through direct marketing approach
• Dock Yards, Bangladesh Navy, Passenger ships are the main use groups
• Market is mostly concentrated in Dacha and Chitchatting

Other segments of product of BLOB are: Innovate Berger Paints recently introduced complete wood coating solution under the brand name Innovate in collaboration with Becker Carom Italian SPA, leading wood coating elution provider in Europe. A launching program was held in Hotel Sheraton on May 27, 2008. With this strategic alliance, the furniture industry will get the opportunity to enjoy the European wood coating finish in Bangladesh. This brand will offer the complete range of PU based lacquer coatings for wood and MAD board. Berger Innovate products have all the characteristics of a high performance finish which includes superb film transparency, matt to high gloss finish, excellent protection against household chemicals (water, tea, coffee, etc. , high resistance to scratches and abrasion from daily use. They are suitable for use on a range of manufactured articles including: furnishings, chairs, kitchens, tables, doors, office furniture, etc. Power Bond SSH. Powerboat is a premier quality water based adhesive that gives the highest bonding strength suitable for furniture industries. This product is lacquer proof and resistant to heat and water, having high coverage which will add value to the related industries. Wall Putty Wall Putty is water based putty formulated with special binder, which makes the surface stronger. It covers the cracks and unevenness of surfaces and makes the reface smooth and well prepared for top coat applications.

Thermopile Quality road marks is one of the very important criteria to meet benchmarking excellence in road safety and smooth movement of traffic. Road Marking Paint from Berger promises to ensure this quality in the countrywide network. Thermopile, the Hot Melt Road marking Paint from Berger, is another feather in Berger R&Ad’s long track record of developing high tech industrial coatings. In this venture, R;D often works in collaboration with the world’s leading manufacturers and know-how vendors. Vehicle Refinish BLOB recently added another segment in its wide range of product line. It is vehicle refinish. In this segment BLOB manufacture colors for automobiles.

Focus of Berger Paints Bangladesh Limited

Berger Paints Bangladesh Limited focuses on the following things:

• Commitment to achieve total customer satisfaction
• Commitment to project the company as an ethical and socially responsible one
• Commitment to continue as the market leader through consistent sales growth, increasing productivity and developing new products benefiting the customer needs
• Ensuring continuous improvement in operation through utilization of highly repressions and dedicated team, proper process, management and participation of the stakeholders
• Setting measurable targets at appropriate stages and continuously monitoring them.

Budget and Cost Control Department (BANC)

Budget and cost control department is one of the core departments of Berger Paints Bangladesh Limited. Every department has a link with this department, as BANC perform the overall budget for every department, monitor operations and try to find Departmental Goal Banc’s goal is to execute a excellent budget which will satisfy the financial need of every department and to minimize the cost of the whole company.