Rahimafrooz
Rahimafrooz
Rahimafrooz
Prepared for:
Rahma Akhter
Lecturer
BRAC Business School
BRAC University
Prepared By:
Name ID Semester
BRAC University
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Letter of Transmittal
Ms.Rahma Akhter
Lecturer
BRAC Business School
BRAC University
Dear Madam,
I would like to draw your kind attention towards the submission of my Internship Report. The
Report title Consumer behavior of Maintenance free Battery in Bangladesh was authorized by
you and assigned to me as a partial requirement for the completion of the internship program
(BUS 400).
I am confident that, this report will help you to understand the Internal and external factors of
Rahimafrooz Batteries Ltd and their SMF battery. I have tried my best to follow your guidelines
in preparing this report. I have presented what I do believe to be most important information to
I expect that this report will fulfill your requirements. I would really appreciate if you would
enlighten me with your thoughts and views regarding the report. Also, if you wish to enquire
about any aspect of my report, I would gladly answer your queries. Thank you for your kind
Sincerely yours
Md,Tanvir Hossain
ID: 14104188
BRAC Business School, BRAC University
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Acknowledge ment
First of all, I wish to express utmost gratitude to Almighty Allah for bestowing upon me the
strength, intellect and perseverance required to complete this report. I am also thankful to my
family because they have given so much inspiration and support to me that I am short of words
in expressing my gratitude. In the completion of this internship report, I would like to thank a
I would like to convey my heartiest appreciation to Ms. Rahma Akhter, Lecturer, BRAC
Business School, BRAC University, for her valuable guidance and thoughtful advices. Without
her help, it would not have been possible to complete this report. I thank her for letting me to
choose this topic and providing with her guidance and support which bring out an outcome of
I have many thanks to make. When preparing this report, my respected supervisor from
Rahimafrooz Batteries Limited Mr. Mushfiqur Rahman (senior manager of Marketing and sales,
Rahimafrooz Batteries LTD) provided important information and valuable comments on each of
the sections of the report. He greatly improved the reliability of the text. I humbly acknowledge
the incessant flow of help, support and care I received from the whole team at the marketing
department - Mr. Al-Amin, Mr. Razib, Mr. Rifat Ahmad - are to name just a few of them. Finally,
I would like to acknowledge the contributions made by my friends and seniors, who
helped me by sharing their experiences and encouraged me greatly. While preparing this report,
if any error of fact, omission or emphasis occurred, those are solely my responsibilities.
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Table of Content:
Part 4: Analysis 32
Bibliography 59
Appendix 60
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Executive Summery
Rahimafrooz Bangladesh Limited is the pioneer of the battery business in Bangladesh. They are
selling battery in Bangladesh from 1954. Though we do not purchase battery on a regular basis
still it is a necessary product in our day to day life. Battery is a n electrical and high-tech product.
Majority of the countries started using advanced maintenance battery from the early 2000 but
still there is no company in Bangladesh which is manufacturing or selling maintenance free
battery in Bangladesh. Rahimafrooz is the first and the only company who take the initiative to
produce and sale this high-tech battery in Bangladesh. The author of this report tried to highlight
some important points regarding the introduction of SMF battery in Bangladesh. In this study, an
effort was made to understand the best possible way to introduce maintenance free battery in the
local market of Bangladesh, with a specific focus on the Maintenance free battery of
Rahimafrooz Globatt Limited. It also tried to understand the price of SMF battery which would
be suitable for the SMF battery of RGL. In this reports author suggested a pricing strategy for
the SMF battery of RGL and gave the reasons for the suggested pricing strategy. To introduce a
new product, selecting the best distribution channel is very important and thus the author gave
some recommendation about the best possible distribution channel and showed the logics for
supporting the recommended distribution channel. Promotional activities are the most important
aspect of marketing while a company is going to introduce a completely new product in a
market. In this study the author tried to find out the best possible promotional activities for
introducing SMF battery in Bangladesh. Some surveys have been done to identify the most
effective promotional activities to introduce SMF battery. Throughout the report author tried to
show the current activities of RGL regarding introducing the SMF battery in Bangladesh, at the
same time gave the recommendation wherever it is needed for the success of introducing SMF
battery in Bangladesh
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PART I
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1. Rahimafrooz Bangladesh Limited:
is one of the largest business groups in Bangladesh. It consists of nine SBUs and several other
affiliations. Rahimafrooz operates in three broad domains: automotive aftermarket, power and
energy, and retail chain. It sells tires, batteries, lubricants, emergency power products, diesel as
well as gas generators, lighting products, electrical accessories, solar systems, energy solutions
using compressed natural gas, and power rectifiers. The Group also runs 'Agora' the first retail
chain in Bangladesh. The Group has strengthened its market leadership at home while reaching
out to international markets. Ranging from automotive aftermarket products, energy and power
solutions, to a retail chain. Through Rahimafrooz IPS, UPS and Voltage Stabilizer, the Company
enjoys clear leadership of the emergency power products market. It also markets home and
industrial lighting products from General Electric USA (GE) and electrical accessories from
Hager (France). Rahimafrooz, in 2001, made a breakthrough in the urban lifestyles b y launching
one of very few retail chains in the country Agora. The Group operates a non-profit
organization Rural Services Foundation (RSF) through which the solar home systems reach the
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Organization Structure of Rahimafrooz Bangladesh Limited
1.1 Milestones:
Founded in 1954 by Mr. A.C. Abdur Rahim. It was incorporated as a trading company.
Entered into collaboration agreement with LUCAS, UK for setting up manufacturing and
1978.
Batteries Limited.
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Only producer of industrial battery in 1985.
Completed acquisition of plant and technology for industrial battery manufacturing from
Entered into manufacturing collaboration agreement with Chloride Group, UK. Made its
Extended export market to Middle East, Nepal, Bhutan, Sri Lanka, Myanmar and
Pakistan in 1994.
Introduced PCM range economy battery for commercial vehicle segment in 1998.
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Started exporting to Kuwait, Lebanon, Georgia and CIS countries in 1999.
Launched new brand of automotive battery- VOLTA, which is a valve regulated Lead
Introduced own brand RZ tire and introduced in the local market in 2000.
Established the first grocery retail chain super store called Agora in 2001.
Launched energy service company, Rahimafrooz Energy Services Limited (RESL), for
Established Rahimafrooz CNG ltd to facilitate CNG station installation and services in
2004.
Launched Metro Net Bangladesh Limited, a fully digital fiber optic based metropolitan
Received McGraw-Hill Platt Global Energy Award for Renewable Energy in 2004.
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Established Rahimafrooz Globatt Ltd in 2009
Named Asias Best Brand and Asias Best Employer by CMO Council, Asia in 2010.
in 2012.
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1.2 Strategic Business Units of RABL:
RABL has in total nine strategic Business Units. The introductions of these nine SBUs are given
bellow.
Rahimafrooz Group started manufacturing industrial batteries in the year 1991, in collaboration
from 2009, as a separate unit to cater to the growing needs of the local as well as international
market. RAL produces and markets a wide range of industrial batteries which are used in
telecommunication, power station, railways, electric vehicles, forklifts, ships, buoy lighting,
UPS, inverter and solar power systems. It aims to manufacture high quality batteries by
employing new and innovative technology, which offers safer and more environment- friendly
manufacturing processes. The Company maintains high standards of its operations that are
certified in both ISO 9001 and ISO 14001 standards. RAL aspires to be the leading industrial
battery manufacturer for traction, stationary, solar and VRLA batteries in the South Asia region.
Rahimafrooz Batteries Ltd. (RBL) is the largest lead-acid battery manufacturer in Bangladesh.
The company is one of the leading regional players, with market leadership at home and export
endeavours to more than 44 countries around the world. It manufactures about 200 different
varieties of batteries for automotive, motorcycle, IPS and other applications in its factory located
at West Panisail, Zirani Bazaar, Gazipur. The Company maintains high standards of operations,
which are certified in both ISO 9001 as well as ISO 14001 standards. Furthermore, in order to
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ensure occupational health and safety of its employees, the company has also implemented the
the best quality produce from seed to shelf. The company was established in June 2011 as a
joint venture with CIC Agri Businesses (Private) Limited, a leading company in Sri Lanka.
increased production, processing and value addition. The company is focused on modernizing &
bringing efficiency to Plant Nutrition, Mechanization & Tissue Culture through continuous
Rahimafrooz Distribution Ltd. (RDL) is the distribution wing of the Group, having a present
nationwide distribution network of 172 Dealers, 263 Retailers and 102 Lubricant Dealers and
carrying over ten national and international brands. It is the clear leader in the automotive
aftermarket and emergency power products categories. RDLs portfolio includes international
tyre brands Dunlop and Apollo and battery brands Globatt, Lucas and Spark. RDL is the
exclusive franchisee of the worlds leading lubricant brand Castrol. Through Rahimafrooz IPS,
UPS and Voltage Stabiliser, the company enjoys clear leadership of the emergency power
products market. In addition, it also runs eight automobile service centres in Dhaka and
Chittagong. Recently the company has entered the electronic goods market. It distributes and
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markets various household appliances and electronic goods through RDLs newly inaugurated
Rahimafrooz Energy Services Ltd. (RESL) was established in the year 2000 as a standby, captive
and distributed power solution provider. It is a leading name in the diesel generator industry
having a customer base of nearly 900. At present the number of RESL installed generators is
more than 3000 (20 KVA to 1500 KVA). Its clientele comprises of industrial plants, real estates,
and various government establishments. The company is marketing diesel generators from
Pramac Power Engineering, Italy and Spain (20 to 2500 KVA), and Mitsubishi Heavy Industries
Limited, Japan (650 to 4500 KVA). RESL is also providing Rental Power with both diesel and
gas generators. The company is planning to launch Mitsubishi gas generator (1.0 MW) in the
near future.
Rahimafrooz Gastech Ltd. (RAGT) was formerly known as Rahimafrooz CNG Ltd. established
in 2003. In 2012, the company was rebranded as RAGT to widen its scope of serving more
customers in the gas segment of Bangladesh. RAGT operates in the following business areas.
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1.2.7 Rahimafrooz Renewable Energy Limited (RREL):
Transforming the lives of people and lighting up different corners of the country, Rahimafroo z
Renewable Energy Ltd. (RREL) has been providing Solar Energy solutions for households,
government and private institutions. To date, RREL has lightened up more than 100,000 rural
homes in Bangladesh and the Company is endeavoring to do much more in the future. RREL is
also the pioneer in providing solar-hybrid solutions for Telecom Operators BTS towers and solar
Rahimafrooz Superstores Ltd. (RSL) launched Agora the first ever retail chain in Bangladesh in
2001. Agora promises a valuable shopping experience that provides quality and fresh products at
the right price. It aims to consistently provide a remarkably satisfying and valuable shopping
experience through a business that improves the quality of life for customers and team members.
With outlets in major locations throughout Dhaka, and many more being planned in Dhaka a nd
other major cities, Agora is endeavoring to fulfill the everyday needs of its customers by
providing the right quality, assortment and price through stores of various forms and sizes. While
Agora mainly focuses on food items - ranging from a wide variety of fish, meat, vegetables,
fruits, bakery, dairy, and grocery - it also carries a vast array of other grocery, personal care, and
various other consumer goods and household utensils. (Rahimafrooz Bangladesh Limited, 2016)
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1.3 Rahimafrooz Globatt Limited:
1.3.1 Basic Overview of RGL: Rahimafrooz Globatt Ltd (RGL) is the global wing of
Rahimafrooz group. As part of excelling two decades of international market experience and
aspiring to become a truly global company, this state of the art Maintenance Free (MF) and
Sealed Maintenance Free (SMF) battery manufacturing plant was established in the year 2009.
With 2.5 million unit production capacity per year, RGL is the largest battery export plant in
South Asia. In recognition to its quality management system, RGL has received ISO 9001:2008
Certification from Orion Registrar, Inc., USA. The manufacturing process of RGL ensures
RGL offers a broad range of maintenance free automotive batteries manufactured according to
JIS and DIN standard for a variety of vehicles, ranging from small cars to large commercial
vehicles. RGL also manufactures deep cycle battery for inverter application. All these batteries
have been designed by one of the leading German company. These batteries are designed for
millions of vehicle enthusiasts across Asia & Pacific, Middle East, Africa, Europe and Americas.
As the pay off line of its flagship brand GLOBATT Drive Within illustrates, the battery is
winning heart and mind of the consumers around the globe through its unparallel performance.
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1.3.2 Brands of Rahimafrooz Globatt Limited:
Several battery brands are owned by RGL. Their main brands are Globatt and Volta but besides
of these two brands they have some other brands. Even within Globatt they have four sub brands.
NO Brand NO Brand
2 Volta-G 5 Optus
3 Alpha 6 Ignus
As we have already see that RGL exports their batteries in more than 50 countries so in some
countries they cannot enter with the name of Globatt due to some reasons. Like a company may
have already listed the name Globatt in a country, then RGL cannot enter in that country with the
name Globatt. Moreover some brands were also established due to some specialization. For
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example, Globatt Farmer is a specialized battery which can be used in the agriculture sector. So
for all of these reasons RGL has several brands for a single product category.
1.3.4 Product: The product of RGL is Maintenance free battery. Maintenance free battery means
there is no need (nor possibility) to check the level of electrolyte or to top up water lost due to
electrolysis, reducing inspection and maintenance. Because of calcium added to its plates to
reduce water loss, a sealed battery recharges much quicker than a flooded lead acid battery.
Limited, 2016)
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1.3.6 Components of Globatt battery:
Magic Eye
Flame Arrestor
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Centered Cast on Strap Plate Cast on Strap Plate
Polypropylene Case
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PART II
JOB DESCRIPTION
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2. Job Description:
internship program. During my three months internship program I enjoyed the work but most
importantly I learned how to work under pressure with great responsibilities. Throughout this
time I have got the opportunity to work with different people of Rahimafrooz Batteries Limited.
As I was in the marketing department, I have worked with their various kinds of marketing
activities in both the local and international market. Basically all of my activities were associated
with Globatt battery which means I was involved with the marketing activities of Globatt battery
which is a SMF battery. As an intern I had no specific responsibilities. I had to work for different
segment of the Marketing department of RGL in different times. The activities that I had to
2.1 Assisting the CRM department: In the marketing department of RBL there is a separate
unit who take care the Customer Relationship management activities. In some cases I had to
assist this department. The way I assist them are given bellow,
Collection of Data: I had to collect lots of data related to different types of customers.
To collect the data some time I had to visit the shop of the retailers of RBL.
Communication with the corporate Client: Whenever RBL made some good proposal
for their corporate client I had to communicate with them and had to give a description
Relationship with the Clients: At the very beginning of the year I had visited many
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2.2 Collecting Data about international market: I had collect different data about the
international market of RBL. Sometimes I had collected some data about the Country
representative of RBL.
2.3 Market Visit: I had visited the local market along with the sells personals of RBL. Market
visit is a regular activity of RBL marketing department and it is also very important for
connecting with the market. As an intern of the marketing department of RBL I had to visit the
market of RBL.
2.4 Assisting Social me dia marketing Department: sometimes I had assisted the social media
marketing department by collecting and delivering information regarding the current social
Hype.
2.5 Observation: Working at Rahimafrooz Batteries Limited, corporate Office was a great
experience for me. I have learnt many things from them. It was very interesting working at RBL.
The people there are really nice and talented. The things that I have noticed and observed are:
Work is never left pending for the next day unless it is absolutely necessary
Even sometimes they work in Saturday even though Saturday is off day as per company
policy.
Sometimes they do not get weekend as they work Sunday to Thursday and go for the
They work for the longest hours than the other departments.
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PART III
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3.1 Origin of the Report:
This report has been originated to fulfill a partial requirement of the internship program attended
by the author. The author is a graduating student of the BRAC Business School, BRAC
University and has been assigned as an intern in the Marketing Department of Rahimafrooz
Batteries Limited (RBL). In accordance with the specific requirements of the program, the author
has completed the 12 weeks period of the internship attachment with the organization. This
report is hereby submitted as the internship report of the author. The report has been prepared
under the supervision of the Academic Advisor, Ms. Rahma Akhter, Lecturer, BRAC Business
School, BRAC University and according to the instructions and guidance of the Official
supervisor, Mr. Mushfiqur Rahman, Senior manager of Marketing and sales, Rahimafrooz
Batteries Limited.
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3.2 Scope of the Report:
From the channel perspective, this report is entirely focused on the distribution channel
Bangladesh.
From the geographical perspective, the research conducted for this report has been
From the product perspective, the report concentrated mainly on the Maintenance
Free battery of Rahimafrooz Globatt Limited and their major competitors in the
available formats
The time-frame of this report spans from January, 2016 to April, 2016. It is actually the
duration of the internship tenure of the author. All the data regarding market situatio n
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3.3Limitations:
To write this report I had some limitations for which I had to face some difficulties. The main
Time Limitations:
To write this report I did not get enough time. If I could get more time them I could make this
considers their Intern as an outsider. So they usually do not provide sensitive and important
information to their interns. So I could not get some important information from them as they
were reluctant to provide. For example, they were reluctant to provide the detail information
about their dealers which they consider as sensitive information. Like these I could not get many
If I could visit their dealers office then I could manage some information about their Consumer
as the ultimate customers deal with their dealers not with Rahimafrooz Batteries Limited. As
Rahimafrooz was reluctant to provide information about their dealers I could not visits their
offices. Due to this reason I could not get much information about the ultimate Consumer of
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Lack of secondary data:
As battery business is not a common business in Bangladesh so there are only a few company is
doing business in this sector in Bangladesh. So there are a very few research work has been done
for the battery industry of Bangladesh. Due to this reason I could not get sufficient help from the
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3.4 Methodology:
Methodology describes the manner in which data is collected, analyzed and interpreted. The data
that will present in this report would collect from primary and seco ndary data source. The
In this paper, the primary data source would be raw data gathering from own observation. The
primary data source that will be used in this report is data obtained through involvement with the
organization. We also collected data from interview session and consultation. The ways in which
Inte rvie w: I took several interviews. Sometimes I took interview of the top ranked
employees of RBL to know the managerial aspect of the marketing policy of RBL and
sometimes I took interview of mid level and entry level employees to have a better
understanding about the implementation of those strategies taken by the top level
management.
observe the activity that was going inside the office. In this process I have collected
information about the way the employees deal with the dealers and how they interact with
each other about the ongoing marketing process of Rahimafrooz Batteries Limited.
Survey: To get some important information from the customer I did two different
surveys. At first I did a survey to know that what percentage of Bangladeshi know the
advantages of SMF battery. Then I did another survey to know the perception of people
about Rahimafrooz Bangladesh Limited, about the introduction of the SMF battery in the
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local market and their expectation from RBL. Finally I did another survey to know the
Secondary data collected from some authentic online sources. To give a better look of this paper,
information is also collected from internet and some online article. Many important data has
been collected from the secondary sources. For example, the number of listed motor vehicle
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PART IV:
ANALYSIS
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In Bangladesh RBL introduced a new type of battery which is sealed maintenance free battery. In
the marketing world it is commonly known that before entering to a market with a new product
companies need to do SWAT and potters five factors analysis. Though these are some common
tools of analyzing the potentiality of the company to enter into a new market still these are very
effective tools. So now I am going to do SWAT and potters five factors analysis for RGL.
SWOT analysis is an important and popular management tool used to determine the action to be
taken for achieving organizational goal. SWOT is an acronym that stands for strength, weakness,
opportunities and threat. As we know that strength and weakness are internal aspects o f a
company. Just like goodwill of a company. Reputation of a company can also be treated as
internal factor. On the other hand opportunity and threats can be treated as companys external
factor. Organization can change their internal factor by taking some appropriate action but it
cannot change the external factor as it is not in the hand of the organization.
4.1.1 Strength:
Strength is one of most important element of SWOT analysis. Strength describes the positive
attributes, tangible and intangible internal environment of an organization. The success and profit
of a product and organization is fully depends on Companies stre ngth. Companys Strength can
be goodwill and reputation in the market. The main strengths of Rahimafrooz Batteries limited
Goodwill: For the Rahimafrooz Batteries limited, goodwill in the market is their main
strength. We can see that whatever sector they have entered they become one of the best
in that sectors. For example, they entered to the battery sector they have become the best
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battery producer in Bangladesh, they entered to the IPS, UPS sector they become one of
the best IPS, UPS producer in Bangladesh, they entered to the Superstore sector and
undoubtedly Agora is the best superstore in Bangladesh. So this sort of success in all the
sectors that they have entered created a very strong goodwill for Rahimafrooz
Bangladesh Ltd.
Skilled and loyal e mployees: Rahimafrooz Bangladesh has a bunch of employees who
are highly skilled and loyal toward the organization. They have some good quality
marketers who are doing excellent in marketing, they have sufficient amount of CA,
FCMA in their Accounts and finance department, and their engineers are also very skilled
who closely monitor the production of Rahimafrooz Batteries Limited. When a company
have these types of skilled employees in their office who are loyal then that become a
Quality Product: Rahimafrooz never compromise with quality of the product. When
they produce any kind of product they makes sure that the product has the best quality.
1954. They are present in this market for more than 60 years. So we can say that
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4.1.2 Weakness:
Like other companies Rahimafrooz Bangladesh also have some weaknesses. The main
Ishwardi EPZ. The battery which is produced in this factory usually goes to foreign
market. So this battery has to export by bringing them in the Chittagong port first which
battery in the foreign markets. In terms of SMF battery most of the customers of
Rahimafrooz lives in Dhaka, Chittagong or Sylhet which are far from their factory. So
they are spending a big amount for the transportation cost due to their location of the
factory.
Country of origin: Rahimafrooz is a Bangladeshi company so they have to use the name
of Bangladesh in their product. Bangladesh is not well known for technological product.
So, it is very difficult for Rahimafrooz Globatt Limited to compete with companies which
are from developed countries. Even in Bangladesh people do not prefer local brand for
the technological product. So the country of origin is a big problem for Rahimafrooz
Globatt Limited.
foreign market. In the foreign market they face competition from some massive
organizations which are very powerful in terms of resources. So, lack of resources has
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Lack of marketing activity: In terms of marketing Rahimafrooz is not that much
aggressive. That is why many small companies could enter to the local market while
4.1.3 Opportunities:
Opportunities are external factors that represent reasons your business is likely to prosper. An
opportunity can create a huge change for a business to success. It is very important to find out
future success. Now we will see what opportunities of Rahimafrooz Bangladesh limited currently
have.
Access to Wider range of market: Rahimafrooz Has already exported their battery in
more than 50 countries. So they have a little bit experience about the market of these
countries. Now if they want to expand their business then they will get some extra
Access to Chinese Market: Rahimafrtooz Globatt Limited has already entered to the
Chinese market which is the largest consumer market in the world. So definitely by
entering to the Chinese market Rahimafrooz has created some opportunities for
themselves. So, if they can get at least 1% market share of the Chinese market that would
be huge.
improving. So the purchasing power of Bangladeshi people are also increasing, when the
purchasing power of a country increase the demand of the car also increase. This increase
demand of the car can create some opportunities for Rahimafrooz Bangladesh.
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Introduction of the Maintenance free battery in the Local market: Rahimafrooz is
the only company who offer SMF in the battery market of Bangladesh. So in this case
they are not facing any competition which is a very big opportunity.
4.1.4 Threat:
Threats are external factors which can create huge damage for the organization. Every
organization has to be very careful about their potential threats. Like other companies
Rahimafrooz also has threat. The main threats of Rahimafrooz Bangladesh limited are given
bellow.
Bangladesh is gradually increasing and the small companies are increasing their market
share day by day which is a big threat for Rahimafrooz Bangladesh limited. The
competitors are taking different actions to attract battery dealers which can increase their
market share and if they can increase their market share then Rahimafrooz Batteries
limited have to lose their market share. Moreover, there is still room for the new
companies to enter to this market and if some other new companies enter to this market
Higher Competition in the foreign market: The competition in the foreign market is
very high. It would be very difficult for Rahimafrooz Batteries limited to export batteries
if the existing competitors increase their marketing activity because Rahimafrooz cannot
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Copycat Brands: In some countries Globatt is facing problem from Copycat brands. For
example, in Afghanistan there is a copycat brand which did copy of Globatt Logo and
name front.
decreasing the demand of battery in the local market. When the load shedding was high
then the demand of IPS and battery was very high but due to the decreasing load
In 1979 Michael E. Porter of Harvard Business School identified five key forces that deter mined
the fundamental attractiveness of a market or a market sector in the long term. This is known as
Porters Five Forces Analysis and it provides a model that enables organizations to analyze their
industry in a way that takes your competitors activities into account. This is a vital part of
creating a strategy, and it is important that managers understand how it works and how to
contribute to it.
This is useful, because it helps you understand both the strength of yo ur current competitive
position and the strength of a position you are considering moving into. With a clear understanding
of where power lies, you can take fair advantage of a situation of strength, improve a situation of
weakness, and avoid taking wrong steps. This makes it an important part of your planning tools.
Rahimafrooz Batteries Limited introduced SMF battery in the local market of Bangladesh which
is a totally new product in the context of Bangladesh. So it is very important for RBL to do an
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4.2.1 Power of supplier: Here we analyze how easy it is for suppliers to drive up prices. This is
driven by the number of suppliers of each key input, the uniqueness of their product or service,
their strength and control over you, the cost of switching from one to another, and so on.
As we know that if the number of suppliers is low then they enjoy a very high power. In case of
Rahimafrooz Batteries Limited their main raw material to produce SMF battery is virgin Lade
which they have to import from either china or South Korea. The other sources are the South
American countries which are not financially and logistically viable. So we can say that,
Rahimafrooz is bound to import virgin lade from either China or South Korea and the number of
suppliers in these two countries are very few. So the powers of the suppliers are moderate to
high.
4.2.2 Powe r of buye rs: Here we generally analyze how easy it is for buyers to drive prices
down. Again, this is driven by the number of buyers, the importance of each individual buyer to
your business, the cost to them of switching from your products and services to those of someone
As we know that if the number of buyer is high then the power of buyers decrease and in terms
of Rahimafrooz Batteries LTD the number of buyers are sufficient in compare to the number of
companies provide the same product. In fact Rahimafrooz Batteries Limited is the only company
which sale SMF in the Bangladeshi market. So if anyone wants to purchase a SMF battery they
are bound to purchase it from RGL. So the powers of buyers are very low.
4.2.3 Threat of substitute: Here we generally analyze the ability of the customers to find a
different way of doing what they are currently doing for example, if you supply a unique
software product that automates an important process, people may substitute by doing the
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In terms of Rahimafrooz Batteries LTD, the threat of substitute product is low. As RBL is selling
SMF battery which cannot be replaced by any other product so we can say that there is no direct
substitute for SMF battery. Traditional battery can indirectly substitute the SMF battery but it
cannot satisfy the exact need of the SMF battery. So we can say that the threat of substitute is
4.2.4 Threat of New Entry: Here we generally analyze the ability of people to enter into the
market.
As Rahimafrooz Batteries LTD is doing business of battery which is a very expensive business
so we think it is not easy for everyone to entre in the market. As they need a big amount of initial
investment and technological expertise to start the battery business so I think the threat of new
4.2.5 Competitive Rivalry: Here we do analysis of the number and capability of your
competitors. If you have many competitors, and they offer equally attractive products and
services, then you will most likely have little power in the situation, because suppliers and
buyers will go elsewhere if they do not get a good deal from you.
In terms of Rahimafrooz Battereies Limited the number of current competitor is Zero because
there is no other company in Bangladesh which is offering SMF battery in the Bangladeshi
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PART V
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RBL is going to introduce the maintenance free battery in the local market of Bangladesh. This
maintenance free battery is produced by using advanced technology. This battery has some advantages
or benefits which traditional battery cannot provide. The advantages of the maintenance free battery are
given bellow.
Long Life:
Because of its lead calcium design, the Globatt SMF battery will hold its specific gravity more
than three times longer than conventional lead antimony types. This means much lo nger periods
between charges when the battery is used in a standby mode, like winter storage and to remain
factory- fresh the SMF battery is shipped dry along with its own pack of high- gravity acid that's
Non Spillable:
Once filled with acid from its special packs, the SMF battery is virtually maintenance free. All of
the acid is absorbed in the special plates and separators, so there is no need to worry about acid
This added power is an outstanding benefit for heavily accessorized machines or high
compression engines. Its high cranking power is also a real bonus for easier starting. To start a
heavy engine the battery need some extra power. The SMF battery has 30% more power than the
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traditional battery. So this extra power makes sure the smooth starting of the heavy engine.
The SMF battery takes less time than the traditional battery. When your battery take less time to
recharge then definitely its a big advantage for you. Especially for the IPS users recharge time is
very important because during the heavy load shedding period if battery takes large time then it
might prevent IPS to provide the appropriate service. SMF take at least 40% less time than the
100%
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Majority of the battery users even do not know that battery discharge harmful hydrogen gas.
SMF battery discharge 80% less hydrogen gas than the traditional battery. If we look at the total
demand of battery in Bangladesh then we can see that the total monthly demand is 500000
batteries. So we can imagine that how much hydrogen we are throwing in the environment by
using traditional battery. So if we use SMF battery then we can reduce the disc harge of hydrogen
Less Risky:
Sometimes traditional Battery might spark which can cause some accident. The main reason
behind the spark of battery is the inappropriate position of the liquid acid. In case of SMF we do
not need to provide any extra acid water so there is no or very less risk of spark in the SMF
battery.
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4.4 Pricing Strategy for Globatt SMF battery:
A business can use a variety of pricing strategies when selling a product or service. The price can
be set to maximize profitability for each unit sold or from the market overall. It can be used to
defend an existing market from new entrants, to increase market share within a market or to enter
a new market. In terms of Rafimafrooz Batteries Limited they are going to introduce SMF
battery in Bangladesh which is a completely new product in the context of Bangladesh. They are
going to have monopoly market in Bangladesh so they can try to get maximum profit from the
market.
To me the most appropriate pricing strategy for the Globatt battery would be price skimming
strategy. Price skimming is a pricing strategy in which a marketer sets a relatively high price for
a product or service at first, and then lowers the price over time. Skimming strategy is an
1. There are enough prospective customers willing to buy the product at the high price.
2. Lowering the price would have only a mino r effect on increasing sales volume and reducing
unitcosts.
Now I am going to show why Skimming strategy is best for the Globatt Battery.
Globatt is the only SMF battery in Bangladesh. So if anyone wants to have a SMF battery
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he or she has to buy a Globatt battery. So Rahimafrooz can charge a bit higher price for
Luxury Cons umer: The target customer for the Globatt SMF battery is the Luxury
consumer. SMF battery is a sophisticate product. Everyone will not purchase it. Only the
luxury consumer will be able to purchase this SMF battery. So if RGL charge less price
then it might create some confusion in the mind of consumer because in Bangladesh the
general perception is Good Quality comes with higher price. So to attract the luxury
Low powe r of buyers: As I have already mentioned that buyer power is very low in
offering the same product. When the powers of b uyers are low then we can charge a bit
higher price.
Limited Capacity: Total capacity of RGL for the local market is only 60000 units per
month while the total demand of battery in Bangladesh is more than 500000 units per
month. So RGL cannot capture the whole market. They can serve only 10% to 12% of the
Market demand. As they cannot sell bigger amount so they have to make profit from their
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Chart: Number of listed motor vehicle
From the above chart we can see that the total number of listed motor vehicle is more
than 25 lacks. If we consider that 1 battery will last for 1 year then these motor vehicle
will need more than 25 lacks battery per year. So from this we can see that 60000
batteries are very small amount compare to the demand. So RGL do not need to consider
the whole market right now. They can focus only on the luxury consumer and that will
Maintaining the image of good quality: RGL must maintain the image that Globatt
battery is a premium class battery. So if they charge low price then it might create
confusion in the mind of customers about the quality because in Bangladesh people
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Maintaining balance with the parent company: The parent company of RGL is
higher price for each and every product that they sales. So if RGL charge charge less
price for SMF battery then it would be contradiction with the strategy of their parent
company.
So after analyzing all of the above factors I can safely say that, Skimming strategy would be the
best pricing strategy for the Globatt SMF battery but if it is required then gradually they can
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4.5 Distribution Channel:
The path through which goods and Services travel from the manufacturer to the consumer or
payments for those products travel from the consumer to the manufacturer is called distribution
channel. A distribution channel can be as short as a direct transaction from the vendor to the
consumer, or may include several interconnected intermediaries along the way such as
wholesalers, distributors, agents and retailers. Each intermediary receives the item at one pricing
point and movies it to the next higher pricing point until it reaches the final buyer. Coffee does
not reach the consumer before first going through a channel involving the farmer, exporter,
Rahimafrooz Bangladesh limited currently distributing their goods in two ways. In the city of
Dhaka, Chittagong and Sylhet they follow one type of distribution channel and for rest of the
In Dhaka, Chittagong and Sylhet Rahimafrooz follow direct distribution policy. Rahimafrooz has
distribute all of their goods in Dhaka, Chittagong and Sylhet. Rahimafrooz sales near about 55%
of their total battery in these three cities. So these three cities are very important market for
Rahimafrooz and that is why they handle this market by their own company. Here the
manufacturing companies supply the goods to the Rahimafrooz Distributors limited and RDL
directly sales those goods to the retailers. So here they maintain a very simple and short
distribution channel.
For rest of the country the follow a comparatively complex and wider distribution channel. Here
the manufacturing companies of Rahimafrooz Bangladesh limited supplies the goods to the
regional distributors then the regional distributors supply the goods to the dealers. At the last
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stage the dealers supply the goods to the retailers. So here they follow a comparatively complex
supply chain.
As the target customers of the Globatt battery are the luxury consumers of Bangladesh so they
can sale the batteries through RDL. Majority of the luxury consumer of Bangladesh lives in
Either Dhaka or Chittagong or Sylhet. So they do not need to go for a complex distribution
channel. The total capacity of Globatt is only 60000 batteries which can be easily sold in these
three big cities so they do not need to take extra pressure. Moreover, if they can sell through
RDL they can save huge amount of intermediary cost which will increase their profit. If they
failed to sell all the battery in these three cities then they can go for some other districts. In that
case they can give preference to Khulna and Rajshahi region because these two regions are very
So after analyzing all the relevant factors I can say that Rahimafrooz must try to sell all of their
batteries trough RDL in Dhaka, Chittagong and Sylhet. That would be the best choice for them.
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4.6 Promotional Activities of Rahimafrooz Globatt Limited:
A company need to put emphasize on promotional activities strongly when they are introducing a
new product. Rahimafrooz Globatt Limited is introducing SMF battery in Bangladesh which is a
10%
90%
From the above chart we can see that people do not have idea about SMF battery. So if they
cannot promote the product then people will not understand the benefit of the product. To teach
the customer and to create awareness among the customer about the product appropriate
promotional activities are very important. The promotional activities that Rahimafrooz are
Television Comme rcial (TVC): As a primary promotional activity RGL put lots of emphasize
on TVC because through TVC they can create market awareness. Recently Rahimafrooz
introduced SMF battery in Bangladesh which is a totally new product in the context of
Bangladesh. Majority of the Bangladeshi do not have any idea about the benefits of SMF battery.
So Rahimafrooz have to teach people about the benefits of the SMF battery and they have to
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create awareness about the new type of battery that they have introduced in the Bangladeshi
market. To do so they are doing some promotional activities and TVC is one of them. Recently
they have spent a lot in TVC promotion. Moreover, they are planning to do further Television
promotion so that they can teach the benefits of the SMF battery to the people of Bangladesh and
can get the monopoly advantage in the local market as there is no other company is offering SMF
battery in Bangladesh.
Social Media Promotion: Social media is one the most powerful media through companies can
reach to the mass people as majority of the young people are now spend huge time in the social
media. As an innovative company Rahimafrooz Batteries Limited cannot miss this thing. They
have recently become very active in the social media and doing lots of promotional activities
through Social media especially through Face book. Rahimafrooz Globatt has their own Face
book page through they are doing their promotional activities. The link of the Face Book page of
https://www.facebook.com/DriveWithin/?fref=ts&ref=br_tf
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Billboard: As a promotional activities Rahimafrooz are using different types of billboard in
different location on Bangladesh. Basically Rahimafrooz give billboard to all of their distributors
and retailers and sets the billboard on the top of their store or display center. This is a very useful
toots of promotion because when a customer comes to the store or display center they can see the
billboard and that create some sort of impact on the mind of the customers. Moreover, they sets
billboard on some important location of the country like in front of a bus station or in the
Newspaper Advertisement: Newspaper is also a good source to reach to the target customers.
Rahimafrooz regularly give advertisement in different natio nal newspapers. Specially to promote
the special offer or to show the price of the products Rahimafrooz use the newspaper
advertisement. This is a source through which they can give details information about the goods
to their customers.
These promotional activities are not enough to create awareness among the customers about the
SMF battery and to boost up the sales. To make the promotional activities appropriate
Rahimafrooz must ensure recommendation from the experts. Now I am going to discuss this
issue.
We generally do not purchase medicine based on our own wish. We purchase those medicines
which are recommended by the doctors who are experts in this field. That is why medicine
companies do not do any public promotional activities. Battery is very similar to medicine. The
general people generally do not spend much time to get knowledge about battery. So we have a
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very little knowledge about battery. So when we purchase battery we take suggestion from
60%
So to boost up the sales RGL need to ensure that customers are getting recommendation from the
experts about Globatt Battery. To ensure that RBL has to do the following activities.
Drivers are one the major influential forces who can influence the purchasing decision about
battery. So it is very important for RGL to ensure getting recommendation from the drivers. To
get the recommendation from the drivers RGL need to do the following activities.
Radio Advertisement: Drivers of Bangladesh usually listen radio when they are inside
the car but not driving. So we can say that drivers passes the free time by listening radio
and that is why radio advertisement is the most important tools to reach to the drivers of
Bangladesh. I did a survey on the drivers and in that survey I found that 100% drivers
like to listen radio while they are not deriving. I did the survey on 20 drivers and all 20
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Drivers who listen Radio
Listen Radia Do Not Listen Radio
0%
100%
So if RGL give advertisement on radio then it would be very useful to convince the
drivers and if they can convince the drivers then their customers will get recommendation
25%
45%
30%
Free driving school: Rahimafrooz do a lot of CSR activities. Now a days CSR activities
are for win activities. Organization will provide something for the society and in returns
they will get something from the society. As a CSR activity Rahimafrooz can open a free
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driving school. In that school, if they can give driving training to prospective drivers then
those drivers will be loyal towards Rahimafrooz. When the amount of trainees will
increase then Rahimafrooz can get the benefit of word of mouth. By doing this they can
Ensuring recommendation from Retailers: In the selling process of battery retailers are very
important. It is observed by the RGL that retailer huge impact on the buying decision of battery.
So RGL need to ensure that their brand is recommended by the retailers and to do so they have to
Appropriate commission: when the retailers will get the appropriate commission from
the company then they will try to sell that prod uct. It is obvious that if they get maximum
commission from RGL they will try to sell Globatt battery as much as they can instead of
Incentive: RGL have to arrange incentive for their retailers. If any retailers can fulfill the
target then RGL must give incentive to that retailer. It will increase the retailers
motivation.
Others benefits: RGL have to ensure continues attractive bonus for the re tailers. For
example they can offer foreign trip to their retailers under some condition. It will help to
increase the motivation of the retailers. By these ways RGL can ensure the positive
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Conclusion
Introducing a completely new product in a market is always a massive challenge for any
company. Rahimafrooz Bangladesh limited is doing battery business from 1954 and still they are
the market leader of the battery market of Bangladesh. Before 2007 Rahimafrooz was enjoying a
sort of monopoly market in Bangladesh as there was no such big competitor in this sector o f
Bangladesh but the scenario has been changed. There are more or less 5-7 big companies are
now running their operation in Bangladesh and their market share is increasing day by day as a
result Rahmiafrooz is facing a huge competition in Bangladesh. Though there are several
companies are selling battery in Bangladesh still Rahimafrooz is the market leader of the battery
market but the scenario might change any time. To be the market leader in battery sector of
Bangladesh Rahimafrooz need to something which will give them some sort of competitive
advantages in the market. To ensure the leadership position in Bangladeshi battery market
Rahimafrooz has introduced a high-tech sealed maintenance free battery which is completely
new in the context of Bangladesh and no other company is selling SMF battery in Bangladesh.
As Rahimafrooz is going to introduce a totally new product which is SMF battery they need to
ensure the product awareness among the target customer. To ensure the product awareness they
have do a lot of relevant promotional activities. Currently they are doing some sort of
promotional activities like TVC, newspaper advertisement, sponsoring some relevant events but
still they need to do something more. To endure the sales they need to endure recommendation
from the experts like, car drivers and battery retailers. To do so they have to do some relevant
activities like radio advertisement as the car drivers likes to listen radio. Moreover, they can
establish a free car driving school as a CSR activity which might influence the car drivers to
recommend their battery to the target customer. To ensure the recommendation from the battery
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retailers they have to take proper steps to maintain a good and profitable relationship with the
battery retailers. SMF battery has several benefits which traditional battery do not have but if
RGL fail to communicate those benefits with their target customer they cannot ensure sa les in the
market. So they need to be very careful about this issue. Maintaining distribution channel
properly is very important in introducing a new product. As the target customers of RBL lives in
Dhaka, Chittagong and Sylhet so they can use the distribution channel of the Rahimafrooz
Distribution limited, this will help the parent company in increase their profit.
Finally I want to say that, if RBL can perform the marketing activities properly SMF battery has
huge potential in Bangladesh as no other company is offering the same product in the same
market. So RBL need to put lot of emphasize on the marketing activities so that they can get their
desire market with the desired profit. This will ensure their leadership position in the battery
market of Bangladesh.
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Bibliography
www.rahimafrooz.com: http://www.rahimafrooz.com/Default.aspx
www.Globatt-Battery.Com: http://www.globatt-battery.com/
http://www.globatt-battery.com:http://www.globatt-
battery.com/index.php?option=com_content&view=article&id=46&Itemid=54
Rahimafrooz Globatt Limited. (n.d.). Globatt Battery . Retrieved 4 24, 2016, from
www.globatt-battery.com:http://www.globatt
battery.com/index.php?option=com_content&view=article&id=47&Itemid=55
Battery Stuff. (n.d.). Battery Stuff. Retrieved 4 24, 2016, from www.batterystuff.com:
https://www.batterystuff.com/kb/articles/battery-articles/battery-basics.html
Professional Battery Quality. (n.d.). Professional Battery Quality. Retrieved 4 20, 2016,
free-batteries/
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Appendix
Questione rs for Survey: 1
Yes
No
Q2. What feature do you expect from a battery which will influence you to purchase the
Battery?
Spark free
Other
Yes
No
Friends
Family members
Car driver
Battery retailers
Others
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Questione rs for Survey: 2
Yes
No
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