Today with technological advancement human race has achieved what few years back were impossible. Refrigerator, the thing that keeps specially food and drinks fresh has opened our door to keep life going in the industrial society without thinking of what will be our next day’s meal. When refrigerator was first introduced in Bangladesh, it was an expensive and fashionable item. It’s price has also gone down considerably and more people in the society can afford it. At present there are several marketers who are offering their product in the refrigerator market.
Among them Samsung, General, Whirlpool, Kelvinator, Shacklock, Toshiba, sharp, Rangs, Butterfly, are most widely known brand. And Siemens is one of the leading electrical and electronics manufacturing company in the world with global presence. Siemens refrigerator is basically a European brand with an international image. In Bangladesh it is targeting the niche market for their home appliance products commencing their marketing strategy as of their high quality and expensive products. They do not do their marketing for the mass people, they do only for a particular group of people who has the ability to buy their product.
Since the standard of living of people in our country is going up, everybody is aware about a brand of a product and wants to buy a qualitative product for a longer period of time. Thus, consumer perception and brand awareness for refrigerator is now become a vital aspect when purchasing a refrigerator. Since the real life business situation is always very complex and competitive, every business has to face the intense competition and those who can successfully operate within this critical situation can become the blue cheap.
To stay and increase the pace in the business track, the perception and brand awareness is very important. Brand awareness is the number of consumers or potential consumers who have knowledge of identity a particular brand. Brand awareness developed due to various reasons – Long experience of product used by own, friends, neighbors, relatives, Availability of other consumer products of same brand in the market. Regular advertisement in the local and satellite TV and ads in the in the local newspaper. Sponsoring of sports/game especially cricket.
Perception is the process by which a consumers uses information to create a meaningful picture of the world by selecting, organizing, interpreting. Perception is important because people selectively perceive what they want and it affects how people see risks in a purchase. Both perception and brand awareness are very important to take strategic decision for advertisement and marketing campaign. Because this gives an idea about the position of the competitors among the consumers. The quality of the product and services begin with the consumer’s needs and ends with the consumer’s perception.
So the company who wants to be successful and to increase the market shares always has to be aware about consumer needs, wants and demands than any other things. And the consumer’s expectation, views and suggestions are the main directories for recovering the problems that they have. For this reason companies conduct marketing research and do some survey to know customers view, attitudes and awareness toward their product and to develop of their strategic decisions for advertising and campaigning. 1. 1 Objectives of the study 1. 1. 2 General Objective
The objective of the study is to find out the perception and brand awareness of the consumer towards Siemens refrigerator in Bangladesh. The research is focused on the perspective of the consumer and their views towards refrigerator, what are their needs and wants. Specific Objectives Within the framework of the general objective of the study, the specific objectives are: To find out whether refrigerator of Siemens brand is popular among the consumers in the refrigerator market? To investigate Consumers requirements and demands To see whether the advertisement of Siemens refrigerator is effective.
To find out what makes a refrigerator attractive to its user. 1. 1. 4 Significance of the study The reasons for conducting this research is to find out the attitude and perception of the consumer towards Siemens refrigerator and what are the problems related to it and what the management of Siemens can do to improve it and gain or increase the market share. 1. 2 Hypothesis “The Siemens refrigerator is popular or not among the consumers in the refrigerator market. ” 1. 3 Methodology Study approach: The study is explorative in the context of Bangladesh for the aspects focused mainly on SBL.
However, it can also be termed as descriptive and analytical. Sample size: Sample sizes were approximately 40, which were selected for filling up the questionnaire. Sample selection: As survey was to be conducted, an initial plan for stratified sampling was designed. The respondents were to be picked from the following clusters- •The service holders or Businessmen including end users, decision makers and opinion leaders. •Housewives •Young generation or students from business school Once the strata were selected, convenient sampling procedure was adopted for the ease of data collection.
Data collection procedure: A detail questionnaire was formulated for collecting data. The questionnaire is distributed among randomly chosen respondent. Among the respondent the study is divided into two groups. One of them is consumers or user of Siemens refrigerator and the other group is non-user of Siemens refrigerator. The analysis is focused on four facts as the outcome. The outcomes are: •Identify whether the Siemens refrigerator is popular or not to the consumers. •Identify whether the current Siemens refrigerator users are satisfied with the product. To see whether the advertisement of Siemens refrigerators are effective. •To find out what makes a refrigerator attractive to its user. Sources of data: Majority of the study is based on primary data. However some secondary data source is used for background study. ?Primary Data collection sources were done by direct interview to the targeted respondents and by administering questionnaires through telephone and e-mail. ?Secondary Data were collected from books, published documents, survey reports, internet and journals. Analysis of Data: The analysis is done with both quantitative and qualitative procedure.
MS-Excel is used as the software for quantitative analysis. And the qualitative analysis is done based on the quantitative findings. 1. 4 Limitation and Constraints To complete the study I have faced some problems, which can be termed as the limitation/ constraints of the study. The problems were as follows: 1. Not having an accurate customer database in CP (Consumer Product) division that caused waste of time. 2. No response is obtained from a certain part of our samples. Some respondents did not feel any interest to give necessary information. 3.
The respondents at times complaint against the length of the questionnaire but as this study touched so many issues; there was no way to shorten it up. However, the complaint was managed efficiently. 4. Suggestions for improvement require more discrete data regarding the exact target audience against a particular communication message element. As this is yet to be developed suggestions are basically based on premonition and theoretical background. 5. It is quite difficult to complete for such research program for one person in a certain time limit. 6.
The researcher had to depend on personal interview for collecting data. Sometimes the executives were too busy to give time for the project. Data were also not sufficient to conduct the research effectively. 7. There was time limitation for this research project. That made difficult to get all information. 1. 5 Organization of the Report In this report, chapter 1 deals with the structure of the report and how the report has been prepared. Chapter 2 describes an overview of Siemens and particularly Siemens Bangladesh Limited. Chapter 3 presents the analysis of data collected for the study.
And interview questionnaire have been attached in appendices. Chapter Two 1. About Siemens AG SIEMENS Founded in: October 1847, at Berlin in Germany. Founder: Werner von Siemens & Johann George Halske Named as: Telegraphen-Bauanstalt von Siemens & Halske Formed in 1847, the company Telegraphenbauanstalt von Siemens & Halske grew within the space of a few decades from a small precision-engineering workshop, producing mechanical warning bells for railways, wire installation made of gutta-percha, and electrical telegraph systems, into one of world’s largest companies in electrical engineering and electronics.
Landmark inventions, an immense readiness to innovate, and a strong international commitment have driven the company’s success since its very beginnings. When in 1866 Werner Siemens (known as Werner von Siemens after 1888) discovered the dynamoelectric principle, the potential applications for electricity were limitless. Heavy-current engineering began to develop at a breathtaking pace, producing one triumphant innovation after another: In 1879, Siemens & Halske presented the first electric railway and installed the first electric streetlights in Berlin; in 1880 came the first electric elevator; and in 1881 the streetcar.
Following the death of the company’s founding father, Werner von Siemens, in 1892, his successors followed the course he had set, constantly advancing the company with trailblazing innovations. Lighting, medical, engineering, wireless communication, and, in the 1920s, household appliances, were follower after World War II by components, data processing systems, automotive systems and semiconductors.
The guiding principle that had applied since the company’s beginnings – of concentrating solely on electrical engineering, “but on the whole of electrical engineering” – helped make Siemens the only company in its industry to operate in both light- and heavy-current electrical engineering, and by the mid-1920s it was again one of the world’s five leading companies in its field. When the National Socialists seized power, Siemens, like the rest of German industry, was drawn into the system of the war economy, though to 1944, higher state demand and military orders led to substantial increases both in sales and in the size of the workforce.
In order to fill its manufacturing quotas, Siemens partly used forced labor. After World War II, Siemens began rebuilding in Germany first, but gradually moved into foreign countries from the 1950s on. Technological advances, expansion into new business segments, and the reestablishment of a presence in traditional export markets laid the foundations for the company’s return to its old strength in the world marketplace in the 1960s.
To give the company a stronger identity and consistent market presence, Siemens & Halske, Siemens-Schuckertwerke AG, and Siemens-Reininger-Werke AG, the three main companies in the group, merged in 1966 to from Siemens AG. In 1969, the company’s main business segments were assigned to six largely independent operating groups, creating an organizational structure that has been adapted on numerous occasions through to the present day. Today, Siemens is a transparent organization comprising fast-acting business units that are making important and significant contributions to the future of electrical engineering and electronics. . Principles of Siemens Siemens strengthens its CUSTOMERS-to keep them competitive Siemens’ success depends on the success of its customers. It provides its customers with its comprehensive experience and solutions so it can achieve its objectives fast and effectively. Siemens pushes INNOVATION – to shape the future Innovation is its lifeblood, around the globe and around the clock. It turns its people’s imagination and best practices into successful technologies and products.
Creativity and experience keep it at the cutting edge. Siemens enhances company VALUE – to open up new opportunities It generates profitable growth to ensure sustainable success. It leverages our balanced business portfolio, its business excellence and synergies across all segments and regions. This makes it a premium investment for its shareholders. Siemens empower its PEOPLE – to achieve world-class performance Its employees are the key to its success. It works together as a global network of knowledge and learning.
Its corporate culture is defined by diversity, by open dialogue and mutual respect, and by clear goals and decisive leadership. Siemens embraces corporate RESPONSIBILITY – to advance society Its ideas, technologies and activities help create a better world. It is committed to universal values, good corporate citizenship and a healthy environment. Integrity guides its conduct toward its employees, business partners and shareholders. 3. Company Overview Siemens Bangladesh Limited Siemens has been operating around the globe in 190 countries with a work force of, 443,000 employees.
It’s headquarter is in Germany, named Siemens AG. Siemens Bangladesh Limited is fully (100%) owned by Siemens AG. Siemens’ association with Bangladesh began from 1956, and since then Siemens Bangladesh Limited has been involved in a number of Bangladesh’s major modernization efforts. They have been active in railway projects in the country since 1962. In 1968, they were privileged to become the first direct foreign investor to start a joint venture with the government of Bangladesh to manufacture telephone switches and sets.
Siemens Bangladesh Limited started operating its business in Bangladesh as a part of its global operation from 15th February, 1974, with three core areas of business. The principle activity of the company is marketing and servicing of power products, telecommunication and medical equipments. Since then the company had been diversifying and expanding its business areas, and continuing its success in the field of information and communication, automation and drive, power generation and distribution, medical systems, lighting systems and home appliances.
Siemens a company with 150 years of successful business in the field of electrical and electronic products, systems and solutions; throughout its history, extensive research and development efforts have enabled the company to channel effective ideas and solutions into business segments that that include information and communications, automation, power generation and distribution, medical systems, transportation and lighting. Today, Siemens is a trusted brand around the world. Siemens has a long history of innovation or, more precisely, of harnessing innovations to improve the live of the people in develop and developing countries alike.
For instance, consider the first telegraph line between London and Calcutta, completed in 1870 and covering a total of 11,000 kilometers. In Bangladesh, Siemens has been active in railway projects since 1962. Siemens’ success in power generation and supply is also outstanding. In 1967, it was actively involved in constructing the Ashuganj power plant and it has since manufactured a good business relationship with Bangladesh’s power sector. In a recent move, it begun marketing solar panels, which provide renewable energy to remote villages not yet linked to the country’s power grid.
It is also playing a very prominent role in providing mobile phone technology in Bangladesh by helping establish the country’s mobile network infrastructure and providing mobile handsets for hundreds of thousands of mobile users. During the course of the last 40 years Siemens Bangladesh Limited (SBL) has established itself as a leader in the communications, transportation, medical equipment, power generation, power distribution, Information Technology, lighting and photovoltaic sectors of the electrical and electronics market. So, in any particular day people would find Siemens all around them from morning till night.
To relay its commitment to doing business in Bangladesh for the long term, because it has tremendous faith in the country’s potential for development as well as to convey its conviction that it can provide whatever technological solutions its customers in Bangladesh will need for their modernization efforts, it has moved its corporate headquarters from Motijheel to a “state-of-the art” building in Gulshan Avenue. This new office building stands as an indicator of Siemens’ renewed pledge to its enduring relationship with Bangladesh.
Rudolf Paul Klink the present Managing Director and CEO of Siemens Bangladesh Limited. 4. Portfolio of Siemens Bangladesh Limited “A product spectrum of universal scope” is what distinguishes siemens from others. The range includes over 100,000. Siemens’ business portfolio comprises the following business areas: Information and Communication, Automation and control, Power, Transportation, Medical, Lighting and Home Appliance. The individual groups within these areas are responsible for their own worldwide operations, with regional units around the globe supporting their efforts.
Siemens Bangladesh Limited has related diversification and their product ranges are divided into different product lines. This decentralized structure gives the greatest degree of entrepreneurial responsibility and the ability to nurture the closest possible ties to their customers. Cross-Group and cross regional cooperation is crucial for the success of our GLOBAL NETWORK OF INNOVATION. At the same time, it enables Siemens to provide comprehensive, customer-focused products, solutions and services for the local market.
The Siemens Building Technologies (SBT) group is now also present in Bangladesh and is providing a total solution combining fire detection, building automation and security systems, together with a power supply solution for industries, commercial buildings and infrastructure project. 4. 1. Information and Communications With the Next Generation Network, Siemens builds a highly scalable, flexible and open infrastructure that enables people and organizations to communicate more effectively and more creatively than ever.
Under one roof, Siemens can provide the entire range of solutions to meet the information and communications needs of Bangladesh. Its information and communications business comprises three Groups: Information and Communications Mobile (ICM); Information and Communications Networks (ICN); and Siemens Business Services (SBS). Their aim is to become the market leader in the mobile communications industry. They are the only company in the world with core competencies in the three fundamental technologies involved: next generation Internet, wireless communications and advanced electronics.
This unique combination enables to offer the full array of mobile business solutions from a single source, ranging from innovative voice, data and video communications equipment for end users to complete networks, tailored applications and a comprehensive range of services. Operating through these three Groups, Siemens provides its customers all kinds of products and services for information and communication, catering fixed line network, mobile network, broadband network for making attractive bottom line of its customers with top priority .
Its products and services include fix4ed line switch, mobile switching system, PABX, Access Network, Transmission equipments, phones, pay-phones, voice mail system, local area network, complete with routers, servers, optical fibers and accessories. In 1968, it entered the communications business in Bangladesh with two milestone projects: Telephone Shilpa Shangstha (TSS) and Bangladesh Cable Shilpa Limited. These projects marked the beginning of direct foreign investment in this country. For quite some time, Siemens has been the largest single foreign investor in Bangladesh.
Present collaboration with TSS includes phones, digital PABX, payphones and copper joints and distributors. Siemens is the first to introduce modern ISDN PABX of Hicom series and fixed phones (DTMF, DP and DECT standard). And now it is progressing toward introducing Siemens Digital EWSD switching system for fixed line network and mobile network. With successes in telecommunications, it started marketing Intel based servers, RISC-based servers, networking products and applications software.
Fujitsu Siemens computers have full range of IT products including high-end servers, high quality notebook and PCs. 4. 2 Automation and Control The Automation and Control Segment comprise four Groups: Automation and Drives, Industrial Solutions and Services, Siemens Production and Logistics Systems and Siemens Building Technologies. Siemens is the world’s largest supplier of products, systems, solutions and services in the industrial and building technology sectors. It helps its customers optimize their business and production processes, enabling them to improve their profitability and efficiency.
The Groups cooperate using the latest information technology and thus develop synergies for their four main markets: manufacturing, process, building and logistic automation. . Siemens’ four Groups in this segment offer different types of industry-related products and services: Automation and Drives (A;D) provides totally integrated automation, as well as drives and installation systems solutions from a single source for the manufacturing and process industries; Production and Logistics Systems (PL), for production-line and factory automation systems; and Industrial Solutions and Services (I;S) and Siemens Building Technology (SBT).
Siemens Bangladesh has been involved in the complete process automation of beverage factories, cement plants, paper, and textile, steel, chemical and packaging industries. It offers computerization of an entire factory, where one can see activities of the entire plant as well as control the entire factory from a single personal computer. For power plants Siemens supplies PLC based motor control center as well as AC and DC drives.
For today’s industries Siemens can provide cost effective solutions. Siemens offers reliable and durable Magnetic Contactors, Motor Protection, Circuit Breakers, Overload Relays, Timers and Sensors that are sensitized to tripping. Siemens have introduced Siemens Building Technologies (SBT) systems in Bangladesh, providing integrated solutions combining fire detection, building automation and security systems for high-rise buildings as well as industrial facilities.
Siemens’ Industrial Solutions and Services (I&S) business in Bangladesh focuses mainly on the process industries. Among the Group’s successful ventures was the installation of paper-machine driving systems at Khulna Newsprint Mill, North Bengal Paper Mill, Sylhet Pulp and Paper Mill and the installation of a 33/6. 6 KV substation at the Maddhapara Hard Rock Mining Project. 4. 3 Transportation The Transportation segment comprises two Groups: Transportation Systems (TS) and Siemens VDO Automotive (SV).
Both Groups’ products and systems are designed to satisfy our societies’ need forever-greater mobility and to meet growing demands for environmentalcompatibility and improved performance. Siemens is an important driver in the development of new technologies and solutions; Transportation Systems is a world-leading system in the rail industry and provides products and services for the rail industry, including signaling and control systems, railway electrification systems, complete heavy rail systems including rapid transit systems and locomotives, light rail systems and other rail vehicles.
Siemens Automotive is one of the world’s largest suppliers of automotive electronics, it provides power train hydraulic and electronic equipment, safety and chassis electronics, driver supplemental electronic systems, and automotive electric motor drives. Siemens made its debut in the transportation business in this country in 1961, with a contract to install railway-signaling systems. Today, most of the signaling and relay interlocking systems used by Bangladesh Railways are from Siemens. Siemens has also supplied field equipment to Bangladesh Railways.
In addition to signaling and control systems, it provides systems for all areas of rail transportation, including rail electrification, rolling stock and turnkey systems. 4. 4. Power Generation The Transportation segment comprises two Groups: Transportation Systems (TS) and Siemens VDO Automotive (SV). Both Groups’ products and systems are designed to satisfy our societies’ need forever-greater mobility and to meet growing demands for environmental compatibility and improved performance. In power generation area, they have a worldwide customer base for their fossil-fueled, hydroelectric, nuclear and renewable-energy power plants.
They also build key components such as turbines and generators at our production facilities throughout the world. The acquisition of the power generation business of Westinghouse in the United States has helped position them as the largest builders of non-nuclear power stations in the world. In Bangladesh, their presence in the power generation sector goes back more than 30 years and our activities here have always been highly successful. In 1968, we completed the instrumentation, controls, substations and other electrical equipment installations for both units of the Ashuganj Power Station.
We also established three steam-generating plants each at the Khulna Newsprint Mill, North Bengal Paper Mill, and Sylhet Pulp and Paper Mill. Since 1998, they have been marketing electric motors and diesel generation sets in Bangladesh. In power transmission and distribution area, we develop, manufacture and market equipment, components and systems to transmit and distribute power to end-users. Siemens is a principal supplier of high-, medium-, and low-voltage switchboards and switchgear control and load-flow management systems and protection for industrial customers and utilities in over 100 countries around the world.
In Bangladesh, at our switchboard factory at Tongi, we manufacture medium- and low- voltage switchboards, power factor correction plants and motor control centers. In addition, we market Siemens’ busway systems, cable systems, transformers and lighting systems for industrial facilities and high-rise commercial buildings. We also have a strong and successful presence in the solar photovoltaic market. 4. 5 Medical Solutions With over 7,000 products, Siemens is the largest manufacturer of medical engineering devices in the world. Two-thirds of its products are less than three years old, and it applies for a new patent almost every day.
Its offerings extend from innovative technologies for speedy diagnosis to services that optimize processes and increase efficiency in hospitals and doctor’s offices. Siemens committed to providing solutions with the highest level of quality for diagnostics and therapies, and the maximum cost-effectiveness. In Bangladesh Siemens has the largest installed base of X-ray machines. Other major medical systems available in Bangladesh include CT, MRI, angiocardiagram, ultra sonogram, litho, ventilator, gamma camera (NM), simulator, linear accelerator, and OT light.
Siemens has also started to market our hearing solutions in Bangladesh. Responsibility of Siemens doesn’t end right after selling equipments or a solution. Siemens also carries out project planning for the clients that include room-planning, site planning as well counseling about the equipments, before actually installing and commissioning the necessary Siemens medical equipment for the clients. However, that’s not all. It also provides after- sales service, which includes full maintenance of the equipments and solutions, including providing training on use of the equipments. 4. 6 Lighting
Osram, a subsidiary of Siemens AG, is a name known around the world in the lamp and lighting business. More than 5000 different OSRAM lamps and lighting systems provide light for a new and better view of our world, for greater security, safety and comfort, for progress in science, technology and medicine. And they also save valuable resources. The company manufactures as many as 5,000 types of lamps and lighting systems, which are energy saving and have a reputation for high quality. Osram is one of the three largest lamp manufacturers in the world. Light from Osram shines in almost every country in the world.
In Bangladesh, Osram made its debut in the middle of 2001, and thereby became the only international lighting option in the market. Initially, two types of lamps – clear light bulbs (GLS) and fluorescent tube light (FTL) – are being introduced to meet the growing demand for such lamps in Bangladesh. Currently, the number of the bulbs and tubes manufactured locally does not meet demand. Osram aims to bridge that gap and to acquaint customers in Bangladesh with long-life, economical, world-class lamps. Osram with its wide- spread lighting range offers solutions to all possible lighting needs of a modern society at a highly competitive price.
Today Osram lights can be found everywhere, starting from the Floodlights of the National Stadium in Dhaka to the railway signals of the Bangladesh railways 4. 7 Home Appliances Siemens has long been synonymous with quality, technical innovation and design in domestic appliances. Our intelligent solutions bring enhanced levels of safety and convenience to your home. Small appliances designed by F. A. Porsche, powerful vacuum cleaners, irons featuring our unique “motor steam” technology, air conditioners with their cool, clean lines- these are just some of the products that have made us No. in homes in Germany and one of the leading brands in Europe. Keeping pace with the needs and changing lifestyle of the people of Bangladesh, they are opening new businesses in this country. One such business is Home Appliances. The highlight of their product is that they feature highly sophisticated yet environmentally friendly technology. Siemens has first introduced a combination of small and large appliances in the market. The small appliances currently available range from toasters to egg boilers and the major appliances include refrigerators, freezers, vacuum cleaners, washing machines, dryers and cooking range.
Very soon we plan to introduce other products including air conditioners and upright freezers, which would be the first of its kind in the country. These products are on display at the exhibition hall and also at their six exclusive showrooms located throughout the country. The sole authorized distributor of Siemens consumer products is Lipro. Very recently they have inaugurated another showroom at Gulshan 1. 5. Mission, Vision & Objective of Siemens Bangladesh Limited (SBL) Mission: “To grow and increase value by implementing advanced technologies, new products and services to provide excellent solutions to satisfy customers’ requirements. Vision: “To provide the best solution and equipment for the customers. ” Goal: “To achieve market leadership, profitability, good corporate citizenship and a sustainable growth. ” Objectives: “The main objective of the company is to increase the market share in related diversified products and solutions in Bangladesh and to assure the potential customers of the quality and durability of the products. Although the products are a bit highly priced but it is the best bargain that money can buy. ” 6. The Company’s Competitive conditions Industry Analysis SWOT Analysis Strengths: ?Wider product range Strong local presence ?Favorable brand image ?Comprehensive knowledge of the total market and client ?Good quality and top quality of products with solution ?Made in Germany and standard is maintained by them ?Using advance high-tech technology ?Because of long term experience, customers reliability and loyalty ? Efficient after sales service. Weakness: ?Lack of brand awareness ?Higher tax on home appliances ?Lack of consistency in promotional activities ?Less competitive price; competitor sourcing product at cheaper price ? Less organized distribution ?Less compliance to market demand Parts are not always available ?Limited showroom Opportunities: ?The major three sources of barriers to new entry are to gain: brand loyalty, absolute cost advantage, economy of scale and governmental regulation. Among those, Siemens Bangladesh Limited has the brand loyalty because it has gained its experience in this field for more than 150 years worldwide, as well as its presence in Bangladesh since 1956. Besides, it created brand loyalty through continuous advertising of the brand, company names, patent protection products, product innovation, and emphasized on high product quality and good after sales service.
Siemens enjoyed regulatory protection as Bangladesh Government is one of their prime customers of their power plants projects for a long period. Thus Siemens can eliminate the risk of entry by potential competitors with brand loyalty. ?Ever rising telecom industry ?Emerging markets for Apartment consumers and high rise building. ?Urbanization and electrification of the country ?Consumer preference on authorizes and purchasing at one stop ? High demand in communication and low penetration in the sector; investment forecast is around 1 billion US $ by public and private sector in the next 5 years. Tax on mobile phones might be removed in Budget 2004-2005. Threats: ?Siemens Bangladesh Limited does not manufacture the equipment or solution in Bangladesh rather imports that from the parent company- Siemens AG. As a result, it is not possible for them to have absolute cost advantage or economy of scale. ?Recently the competition in the market has become stronger as many multinational companies have started their business. At the same time local companies are being established. They are becoming rivals of Siemens Bangladesh limited.
Especially Korean technology, Japanese technology used by other multinational company can offer a lower price to the customers. In some cases the local company is offering a moderate standard product at a cheap price. They are entering the competition gradually. Siemens Bangladesh Limited used to play monopoly in some of their business unit like PTDS, PGT, TEL & IT, and Medical Solution. But over the last decade many multinational firms as well as local companies has joined the industry and now those firms are sharing the dominance of the market. ?Foreign currency fluctuation and devaluation of the local currency. ?Euro getting higher vs.
USD ?Higher tax on Home Appliances ?Large scale Gray Market ?Competitor sourcing product at a cheaper price. ?Investors are not interested to invest more in Bangladesh because of the unstable political condition of our country. As a result there would be less industrializing than expected. It will reduce the sale. ?Chinese competitors are very aggressive and offer a very lower price than Siemens. ?Government is slow in decision due to inefficient administration. 7. Legal Issues The legal issues concerning Siemens Bangladesh Limited are: ?The company has to acquire work permit for the procurement of the machines. It has to get numerous amounts of import licenses for the import of the electronic equipment. ?Throughout the procurement and the import of the products the company has to pay all the necessary taxes and VAT to the respective government agencies. Chapter Three 1. Overview of Refrigerator of Siemens Bangladesh Limited at a glance SIEMENS is one of the leading electrical and electronics manufacturing company in the world with global presence. Siemens refrigerator is basically a European brand with an international image Siemens Bangladesh Limited does not manufacture the equipment or solution in Bangladesh rather imports that rom the parent company- Siemens AG. As a result, it is not possible for them to have absolute cost advantage or economy of scale. It is mainly produced for the South East & Middle East i. e for Asia region. Since, refrigerator are not manufactured in Bangladesh and are imported from abroad Siemens refrigerator is comparatively expensive than other refrigerator. The following table shows the data of annual demand as recorded in custom of Bangladesh as well as expected market share of Siemens. REFRIGERATOR Mode of availability20002001-022003-042005-062007-08 Local Manufacture00000
Imported3000035400403564681255000 Total market volume3000035400403564681255000 Expected Siemens volume in %002. 5%3. 85%5. 5% Expected Siemens volume in Qtty00100018003000 (Source: Home Appliances Survey Report) The market share of refrigerators is about 1% which is very poor compare to others in the refrigerator market where 99% of the people have a refrigerator in their house. Market Segments of Refrigerator(SBL) Market Segment (price wise)Percent Below Tk. 20,00065% Tk. 20,000- Tk. 25,00023% Tk. 25,000-Tk. 30,0007% Tk. 30,000+5% (Segmentation of Refrigerator Market by price) Source: SBL Home Appliance Industry Analysis Report) Industry Key Success Factors Quality of the product should be high with attractive features. Price should be affordable and competitive Distribution channels should be recognized Promotional activities should focus on brand equity and image and it should have association with lifestyles of local people. Highly skilled sales force with managerial experience is required to do quality control. After sale service and warranty should be provided. Target Market of Siemens Refrigerators in Bangladesh Upper Class •Upper middle class Competitors : competitors can be defined as two way- ?Direct competitors ?Indirect competitors In Bangladesh Siemens basically do not have any competitors who can compete directly with them according to their Brand and price. They are the only one European Brand in Bangladesh refrigerator market and so that the quality is very high. But they have many indirect competitors who are competing with them indirectly by having not the similar quality product in the market but they are offering attractive price with new features.
The names of the competitors are- Samsung, General, Whirlpool, Singer, Kelvinator, Toshiba, sharp, Rangs, Butterfly etc. some of them are assembled in china at a cheaper cost. Marketing Strategy: Siemens Bangladesh Limited is targeting the niche market for their home appliance commencing their marketing strategy. Since the price and quality of the refrigerator is quite high they do this for a particular group of people but not for the mass group of people. So for that they are offering installment and after sales service for 3 years without payment and after that 2 years by payment.
Promotion As for promotional campaign SBL- Distribute the brochures to the customer by going door to door of the big big apartments. They also distribute brochures in Dhaka club, Gulshan club and some other reputed club where all the upper class people come. Give their advertisements on the newspaper, billboard. Participate in DITF every year. Sometimes give mobile phones while purchasing their product. 2. INDUSTRY ANALYSIS: Refrigerator Macroeconomic scenarios Social The concept of nuclear family is spreading widely across the country. The number of workingwoman is increasing day by day.
These are the rationale that intensified the need of home appliances grow more than ever. Economic The devaluation of BDT against Euro and USD has created great impact on imports of the home appliances, which is impeding the growth on sales. Technological The growth regarding technology is very rapid. As most of the appliances are imported from abroad and distributed locally, the quality and standard is very high. Political The political environment is not that stable in our country and affecting every business. The tax policies are changed frequently and also not stable. 3.
SWOT Analysis of SBL Refrigerators StrengthsOpportunity 1. The country of origin is in Germany, i. e it is a European Brand. 2. It has a strong Brand corporate image 3. Among the European brand only Siemens has the local Presence i. e. 40 years of presence in Bangladesh. 4. After sales service setup for wide range of products. 5. Apart from the appointed dealers existing intensive distribution network for mobile can be utilized as distribution channel for home appliances. 1. The size for the market for quality household goods is of sufficient size and purchasing power of this segment is very good. . There is no European brand in Bangladesh. 3. The market has the growth potential as well as in neighboring areas. 4. A good number of successful dealers are interested to keep siemens product. WeaknessThreats 1. Siemens Bangladesh Limited does not manufacture the equipment or solution in Bangladesh rather imports that from the parent company- Siemens AG. As a result, it is not possible for them to have absolute cost advantage or economy of scale. 2. Price of the products is high. Since people of Bangladesh are price sensitive they want to buy quality product at a cheaper price. 3.
Some major competitors’ marketing promotion and communication budget is higher than that of Siemens. 4. The targeted segmented is not so much large and already some competitors are working in that target. 5. Lead time for import is very high. 6. Higher tax on Home Appliances. 1. Further increase in price in Euro Rate, i. e. devaluation of Taka in comparison with foreign currency. 2. Unstable tax regulation of Bangladesh Government. 3. It can be a potential threat for Siemens Bangladesh Limited as the introduction of new European Brand in the market. 4. SECONDARY DATA RETRIEVAL & ANALYSIS 4. The Marketing and Management Problem The data and information gathered through primary and secondary sources indicates few problem of the product. These problems of the product are directly and indirectly linked to the company’s marketing and management. The Marketing problem The Siemens Company has great deal of problem in their marketing part. The problems are more or less related to the strategies taken by the company regarding product advertisement and promotion, market segmentation. The marketing problems are concerned with the fact that the strategy taken by the company is not always well implemented.
The problems from the point of view of marketing are: •Image of the product •Marketing strategies •Market segmentation The management problem is focused on the facts of one issue. The problem is: •Corporate Culture 4. 2 Corporate Culture The Corporate Culture of Siemens follows conservative style. The corporate culture of Siemens states that they prefer experienced and aged personal rather then young people. The overall corporate culture of the company is conservative and they follow it in their recruiting and promotion in the management sector. This conservative corporate culture has a great influence on the product image.
The company doesn’t encourage a young, fresh new comers in the management and with that the so-called “Crazy ideas”. But because of this negative attitude toward the crazy idea the company is lacking in creating new dimension for the product and promotion. 4. 3 Actual findings from the secondary data and its relation with the marketing management problems When we went through our data analysis we matched them with the marketing management problems we have mentioned so far. The SWOT analysis of the company was retrieved from analyzing their company brochures, reports and also from their marketing division.
The analysis is pretty much relevant with the major marketing problems we have highlighted in one of the previous sections. The analysis shows that due to some of their weakness, e. g. less competitive price, inconsistency in promotion SBL is unable to attract a large portion of potential customers because they follows a niche marketing strategy. Also we saw that they did not have any customized marketing plan for different segments of their target market, which in turn resulted in their incapability to attract an important target group, i. e. the target consumer of refrigerator users.
From the secondary data analysis regarding the industry we are able to say that competition is growing in the industry with new multinational and local companies that are offering competitive price and other advantages. Besides, the industry itself is rapidly growing which presents greater potential than ever before. Therefore we can conclude that the problems we have mentioned are real and existing. They are not only mere assumptions. Our evidences proved the validity of the situation that prevails in the industry as well as in SBL. 5. Findings and Analysis of the Survey
Demographic segmentation by gross family income Gross family income Chart #1 Interpretation From this demographic analysis it is possible to find out gross family income of a person. From this chart it seems that the highest income group is in the Tk. 35, 000 -Tk. 45, 000 ranges with 37. 5%, the second group of 25% of Tk. 25, 000-Tk. 35, 000, with 15% falling under the Tk. 45, 000-Tk. 50, 000, and finally 12. 5% is under more than Tk. 50, 000. Question 1 Do you own a refrigerator? Chart #2 Interpretation The purpose of this question is to find out the possession of refrigerator in the market.
So from the above chart it can be said that 100% of the respondents own a refrigerator. Since refrigerator becomes a necessity to the people in part of their daily life, everybody has a refrigerator in their house. Hence, it can be said refrigerator has a potential market growth in Bangladesh. Question 2 If yes, please mention the brand/company name. Table # 1 CriteriaNo of RespondentsPercent Samsung2050. 0 LG717. 5 Siemens512. 5 Kelvinator512. 5 Shaklock 12. 5 Others 25. 0 Total 40100. 0 Chart # 3 Interpretation From the above table and chart it can be said that highest number of users are the ones using Samsung refrigerator with 50%.
The second is LG users which is 17. 5%. Then 12. 5% and 12. 5% respectively use Siemens and Kelvinator refrigerator. And the rest 2. 5% and 5. 0% respondents use Shacklock and others refrigerator. Question 3 Are you satisfied with your present brand of refrigerator? Table #2 CriteriaLevel of satisfaction No of RespondentsPercent SamsungVery Satisfied Satisfied12 1530 37. 5 LGVery Satisfied Satisfied Neutral5 3 212. 5 7. 5 5. 0 SiemensVery Satisfied Satisfied 3 27. 5 5. 0 KelvinatorVery Satisfied Satisfied 4 110. 0 2. 5 Shaklock Satisfied Neutral1 12. 5 2. 5
Others Satisfied 25. 0 Total 40100. 0 Interpretation The table and pie chart represents the satisfaction level of those who are using their respective brands of refrigerator. 30% of the respondents are very satisfied and 37. 5% respondents are satisfied with their brand Samsung refrigerator. As to LG 12. 5% respondents of the total sample survey are very satisfied, 7. 5% respondents are satisfied and 5. 0% users are neutral about their brand LG. Whereas 7. 5% and 5% of the total respondents of the survey respectively are very satisfied and satisfied with Siemens Refrigerator.
Among the respondents of Kelvinator 10% were very satisfied and 2. 5% were satisfied with their present brand of refrigerator. And the rest Shacklock users of the total survey sample are satisfied with 2. 5% and 2. 5% respondents are neutral about their brand. 5% respondents of other brands are satisfied with their present refrigerator. Question 4 How did you find about brand choice (who influenced you)? Table # 3 CriteriaNo of RespondentsPercent Family members/relatives/friends/neighbors 2255. 0 Experience512. 5 TV Advertisement615. 0 Print Ads410. 0 Dealers 37. Total 40100. 0 Chart # 4 Interpretation This question was asked to find out that how people or consumers choose their brand while purchasing their product. From this survey it will be easier for SBL to increase the brand awareness of the consumers toward their refrigerator. Hence, the above table and chart shows that most of the respondents of the survey influenced or choose their brand by their family members, relatives, friends, neighbors i. e. about 55%. 15% of the respondents said they are influenced by watching TV ads whereas 10% are by print ads.
Some respondents of the sample survey responded that they choose their brand by their own experience of using refrigerator. And the rest 3% of the respondents replied dealers as their choosing of brand. And from this survey SBL will understand what the right strategy they have to use for making consumer aware about Siemens in the refrigerator market. Question 5 What attributes/features would make a refrigerator most important to you? Table # 4 CriteriaNo of RespondentsPercent Outer design / Look 37. 5 No frost freezer25. 0 Lock00. 0 Price25. 0 Quick freezing compartment 37. 5 Clean back design 00. 0
Year of guarantee 12. 5 After sales service12. 5 Country of origin1025. 0 Different compartment for refrigerator 37. 5 Brand reputation 1537. 5 Total40100. 0 Interpretation This question was solely an open-ended question where the respondents were encouraged to give their view points as to what attributes of a refrigerator would they like. From the above table it seems that as to 37. 5% of the total respondents the most important features/attributes of the refrigerator is the brand name reputation. The second highest is 25% respondents to whom country of origin is most important features while buying a refrigerator. 7. % respondents are equally perceived quick freezing compartment, outer design and different compartment for refrigerator most important features before buying it. And to some respondent’s price and no-frost freezer are important. Whereas only 2. 5% of the total respondents said after sales service and year of guarantee are import features for them while buying refrigerator. Thus, from this survey it can be said that in the case of purchasing refrigerator brand name reputation and country of origin influences a lot to the consumer for taking their decision. Question 6 Given below are the different prices of refrigerator.
Please specify which group your refrigerator belongs? Table #5 s CriteriaNo of RespondentsPercent TK. 20,000-Tk. 30,0001742. 5 TK. 30,000-Tk. 40,0001332. 5 TK. 40,000-Tk. 50,000512. 5 More than TK. 50,000512. 5 Total 40100. 0 Chart # 5 Interpretation The above table and chart represents that 42. 5% of the respondent’s refrigerator belongs to Tk. 20, 000-Tk. 30, 000 prices from the total sample survey. Then 32. 5% respondents are using Tk. 30, 000-Tk. 40, 000 range price’s of refrigerator. And the rest 12. 5% belongs to Tk. 40, 000-Tk. 50, 000 and other 12. 5% respondent’s refrigerator belongs to more than Tk. 0, 000 range of price. Since for this study I have segmented the market for the upper class and upper middle class people, from this question I tried to find out the present range of price of refrigerator that they use. Question 7 With a fair trade-in value would you be interested to replace your existing refrigerator with a good quality one? Table # 6 CriteriaNo of RespondentsPercent Yes 3075. 0 No 1025. 0 Total 40100. 0 Chart # 6 Interpretation When the replacement of existing refrigerator with a good quality one was concerned, 75% of the respondents replied Yes, whereas 25% respondents of the total sample survey responded No.
Question 8 Whenever you hear about Siemens refrigerator, what is the first thing that comes to your mind? Table # 7 CriteriaNo of RespondentsPercent Good quality 820. 0 Brand name reputation 2357. 5 Expensive 615. 0 Good design 37. 5 Others 00. 0 Total 40100. 0 Chart # 7 Interpretation From this question I have tried to find out how consumer or people perceive Siemens refrigerator whenever they hear about it. The highest number of respondents that is about 57. 5% said that whenever they hear about Siemens product the first thing that comes to their mind is their brand name reputation.
Then 20% of the respondents perceive its refrigerator as good quality one. As to 15% respondents it is expensive compare to other refrigerator in the market which are also good in quality products and services. And the rest 7. 5% of the total respondents believe it’s design is good. So from this it can be understandable that siemens refrigerator has a good possibility to capture the market due to having brand name reputation & quality product all over the world although a bit expensive comparing to other brands. Question 9 Have you ever used a Siemens refrigerator? Table # 8 CriteriaNo of RespondentsPercent
Yes 525. 0 No 3575. 0 Total 40100. 0 Chart # 8 Interpretation The purpose of this question is to get the number of the respondents who use Siemens refrigerator among the total survey sample size. The above table and the chart shows that only 25% of the respondents said YES which is very small in size compare to other brand. Because 75% of the respondents replied NO, they use other brands. Question 10 If no in your point of view the reason is- Table # 9 CriteriaNo of RespondentsPercent Not aware of the brand 925. 7 Not available in the market 1851. 4 Very limited in showroom514. 3
Comparatively expensive38. 6 Bad quality product00. 0 Others 00. 0 Total 35100. 0 Chart # 9 Interpretation This question was conducted to know the reason of the respondents who does not use Siemens refrigerator. After collecting the information from the respondents it can be said that most of the respondents i. e. 51. 4% think that this brand is not available in the market like Samsung, LG or Rangs. Whereas 25. 7% of the respondents said that they are not aware about this brand. That means they have no idea that Siemens has home appliances product in Bangladesh. Some of the respondents with 14. % said they did not buy Siemens refrigerator because of having limited showroom in the market. In the point of view of the respondents with 8. 6%, Siemens refrigerator is comparatively expensive with other brands. Question 11 Have you ever come across any advertisements of Siemens refrigerator? If Yes, then where? Please specify………………. Table # 10 CriteriaNo of RespondentsPercent Yes 717. 5 No 3382. 5 Total 40100. 0 Chart # 10 Interpretation From the above table and pie chart it appears that most of the respondents from the total sample size did not see any advertisement of Siemens Refrigerator which is 82. % a big number of respondents. Most of the time, they have seen Siemens mobile phone advertisement in the news paper, billboard but not home appliances product. On the other hand only 17. 5% of the respondents replied that they have seen Siemens refrigerator advertisement. And they have seen it in the newspaper, but it was very rare. Thereby, it is understandable that SBL does very few advertisements for their home appliance products. But to reach to the targeted people and to make them know about their existence with home appliances product SBL need to do more advertising not only in the newspaper but also in TV, billboard.
Question 12 If yes, did you consider buying a Siemens refrigerator after seeing the advertisement? Table # 11 CriteriaNo of RespondentsPercent Yes571. 0 No229. 0 Total7100. 0 Chart # 11 Interpretation Out of the total respondents who had come across Siemens refrigerator ads among them 71% replied YES. Because they think because of the ad on newspaper they came to know the existence of their refrigerator. Since they are aware about the brand name reputation and country of origin of Siemens products they will buy refrigerator after seeing the advertisement.
Otherwise if the advertisement was not there they were not able to know about the refrigerator and for that reason SBL have to increase their advertisement for those uninformed consumers. Question 13 Do you prefer to buy it from the Dhaka international trade fair (DITF)? Table # 12 CriteriaNo of RespondentsPercent Yes1435. 0 No2665. 0 Total40100. 0 Chart # 12 Interpretation While concerning about purchasing refrigerator from Dhaka International Trade Fair (DITF) 65% of the survey respondents said NO and 35% respondents replied YES. Question 14 If yes then the reason is–
Table # 13 CriteriaNo of RespondentsPercent Discount price 423. 53 Comparison of all brands together at the fair 750. 0 Delivery system 212. 5 Attractive prize offer (i. e. scratch card) 318. 75 Total 16100. 0 Chart # 13 Interpretation This was conducted to know the reason of preferring DITF for purchasing Siemens refrigerator of the respondents/consumers. 50% respondents prefer to buy refrigerator from DITF to able to compare of all the brands together at the fair. 25% respondents want to buy from the fair due to discount price. And the rest 18. 75% and 12. % respondents who are interested to buy from DITF are for attractive prize offer (i. e. scratch card) and delivery system. Question 15 If you ever intend to buy a second unit in the near future (within 1 year) would you prefer buying Siemens? If Yes, then the reason…………….? If No, then the reason………………? Chart # 14 Interpretation This question was asked for knowing whether the respondents for both users and non-users of Siemens refrigerator are interested to buy their refrigerator within a year or not and if want to buy then the reason behind that.
From the chart it can be said that most of the respondents 78% would like to buy Siemens refrigerator because of brand name reputation, it’s good quality and from the experience of the relatives/friends. The rest 22% would not buy. Some of them said that they are satisfied with their present brand, some said they have no idea about their refrigerator, and some of them responded that since it is new in the market they are not that much aware about it. Question 16 If you are the user of Siemens refrigerator what do you think about the effectiveness of it? Table # 14 CriteriaNo of RespondentsPercent
Excellent 240. 0 Good 240. 0 Normal 120. 0 Bad 00. 0 Horrible 00. 0 Total 5100. 0 Chart # 15 Interpretation The table and chart illustrates the perception of the users of the total survey respondent’s about the effectiveness of siemens refrigerator. As to 40% respondents it’s effectiveness is excellent and another 40% from the total users of the respondents perceive it good. And the rest 20% think it as normal. Nobody had any negative perception toward it. By this illustration it can be seen that most of the users of Siemens has a positive perception for their brand.
Question 17 What are the good things of Siemens Refrigerator you can recall? What are the bad things of Siemens Refrigerator you can recall? Chart #16 Interpretation While asking about the good and bad things of Siemens refrigerator the respondents who are the users of it I got some information from them. As a user of Siemens refrigerator majority of the respondents believe, it has a brand name reputation, then country of origin, after sales service, quick freezing compartment, and different compartment for refrigerator. To them there have no bad sides of it.
So from all of the comments it can be easily said that Siemens refrigerator is undeniably a good quality and brand reputed electrical product. 7. General Comments Respondent’s Point of View Siemens brand is a European brand. Quality is good, Reliable, but price is high. Customers are very limited. Siemens is brilliant in producing goods and ensuring service. Siemens should give more ads to TV for its greater announcement. I know Siemens only have mobile phones. I did know that it has any other products like refrigerator.
I have seen various attractive Siemens advertisement in many of the countries in abroad. But in Bangladesh I have not seen any advertisement of Siemens product except mobile phones. So it should do more advertising for Bangladesh market that people will get know about its business areas and products. It is well known to all for it’s mobile phone but is not well known or popular for refrigerator market like Samsung, LG etc. From my point of view, Siemens should give frequent ads on TV to remind about their product to the viewers. Like I have seen many ads for Samsung, LG, Rangs, Whirlpool but not Siemens.
Very hardly we buy electrical goods from the DITF. I think DITF is not a good option to attract customer. They should increase advertisement on TV, newspaper as well as billboard. Do some more advertising and sponsor some program for the general public. If I would know that Siemens has it’s home appliances product in Bangladesh then would definitely buy it. Because as I know globally it has a good brand reputation and it’s quality and service is good and reliable. If the price will be reduced its products will be more popular than others. People will obviously buy it.
The quality and service of Siemens refrigerator is very good. 8. Recommendation Having analyzed the problems of the company and the opinions of the users and potential users of Siemens refrigerator, we are able to come up with the following recommendation to recover the problems of unpopularity of the product among the consumers who are aware and also those who are not aware of their product. Ensure consistent marketing strategy: While marketing their refrigerator, Siemens should focus on delivering one single theme about the product to its target market.
This is important because we saw respondents are unable to show any single reaction to the brand. Therefore with an ‘integrated marketing communication’ Siemens can build better brand awareness. Siemens Bangladesh Limited (SBL) should try to persuade government to remove tax on imported refrigerator. The major problem that Siemens face is high import duty it had to pay that increases its price. Since Siemens sis a major suppliers of electronics goods of the government, it may try to negotiate the import tax to be reduced, which would make Siemens refrigerator more competitive in the market.
If Siemens assemble the home appliances locally or in the countries where labor cost is lower (India) rather than Germany, then the cost will be lower and it would be affordable for all the consumers. Since the market of refrigerator is newly introduced and underdeveloped in the market and there have substantial capital investment risk, they should try to make their brand reliable and credible to the consumers, providing them with as much information as possible. The overall marketing and promotion needs to be on the brand rather than one single product.
SBL needs to increase the number of catchy billboards and TV and newspaper advertisement to promote it’s brand. TV/electronic media is a very powerful media from where the message of a product can reach to the people very fast. Because from this survey it can be seen that most of the people get knowledge or become aware of a product through their family members, relatives, friends, neighbors. And among them mostly are housewives and students. Thus if SBL increase their advertisement then they would be able to reach them easily. By this way it will be possible to get a good number of customers who are belongs to their group.
From the survey it is seen that most of the respondents know about the Siemens brand but they are not aware about the all products that they have. Since it is a European brand and well known to the world, consumers have a positive perception towards it’s brand. So, if SBL can make available of their home appliances products in the market and can deliver their right message to the mass people. There have one more problem that SBL home appliance divisions are rigid in their strategy. They believe that since their products are expensive and high quality so that they will do their marketing only for the upper class and upper middle class people.
And for that group they don’t need to bare that much expenses for advertisement on TV because usually they don’t get time to watch TV. But I think if those people don’t watch TV it will really does not mean that others will not see it. May be some of their family members or relatives or friends will see it and they can tell them about it. So by this way they can increase the awareness of consumers regarding their products. Siemens should provide special offers for the users or the consumers of refrigerator to popularize its product.
In order to capture this lucrative market segments; Siemens should consider putting on extra effort to popularize the Siemens Refrigerator among the users of the consumers. Like giving discounts on price or giving gifts (mobile phones, coffee maker, blender machine etc. ) while purchasing refrigerator. Through direct mailing, arranging seminars, product catalogues, etc. Siemens should deliver the right message to the right people at right time. SBL can suggest its corporate head office in Germany to air some really creative and innovative ad on satellite.
If it has confidence over the cable channels of Bangladesh, it can go for with improvement in quality, not with the vision of lecturing like it had done with its Osram bulb. These days interesting, emotional and really creative ads are of high communicative value, not the boring traditional ones. The advertising of home appliances should first be used to raise general awareness amongst the target audience that the product exist. Because, they are not familiar with the Siemens product line and in fact, they do not even know the existence of the product.
Therefore, they must first publicize the brand name and product line, and then firmly establish them in terms of knowledge and corporate image. Hence, the stronger their image, the greater their chances are for market success. SBL has to decide upon the target audience for every single message it wants to communicate. What, where, why, when, whom and at what Cost-it has to keep everything in account. Siemens has a good possibility to get a leading position in the refrigerator Market in Bangladesh because of its brand name reputation.
But there have a threat of start entering the new European brands in the market. To keep them leading in the electrical industry and to compete with others they have to make it well known and available toward all the people that whenever anybody would like to buy refrigerator they will only think about Siemens brand. And if they can use the right promotional strategy they would be able to increase their market share from the present situation. 9. Conclusion Siemens Bangladesh Limited has a great potential growth in the country as a leading global brand.
Despite ample possibilities of profit and growth, SBL is not achieving success in all their business units. To achieve the leading position and success, lot of improvement is required for every divisions of it. As refrigerator became essential for the consumer day by day, many marketers are coming with this product in this electronic industry. So that it has also become a competitive market for Siemens refrigerator in spite of having a good brand image and local presence in Bangladesh. And therefore they should be aware of the entrance of new European Brand in the country.
They should also take much more attention and careful action to establish its product line in the market. To build a positive perception and awareness among the consumers about their product they have to be stronger in their promotional activities and should maintain a good relationship both internally and externally in their corporate life.