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Acknowledgement

At first we present our due regards to the Almighty Allah, who have provided us the

brilliant opportunity to build and complete this report successfully with good health

& sound mind.

We, the student of Money & Banking course would like to express our specialfeelings & great affections with our heartiest appreciation to the honorable

Instructor Assistant Professor Mr. Moniruzzaman Khan for his kind co-

operation. Without his help it was impossible for us to complete the report. His well-

organized method of providing guidelines helped us to understand this critical but

most important subject easily. We also thanked his for kindly assigning such a nice

& significant report, which we always remember gratefully.

At last we would like to convey our best regards to those people who helped us to

completion of the report. We are very grateful that they helped us by giving their

valuable time, consultation and guidelines. We are really indebt to them for their co-

operation

We desire & hope that this report will certainly help us to get a good experience.

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Name of the heads Page no.

Introduction 03

Objective of the Study 04

Methodology of the Study 04-5

Segmentation 06-11

Positioning Strategy 12-15

Findings and Recommendations 16

Conclusion 17

Sources 17

Introduction

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TTABLEABLEOFOF CCONTENTSONTENTS::

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This paper is made on "market segmentation strategy: A Study on OTOBI Ltd". As an

Assistant Professor of Project Work Course, Golam Mohammad Forkan instructs us to

make this report as a part of Course of Masters of Business Administration Program of

Eastern University.

Furniture Business in Bangladesh is not new but before last 2 decade it was based on wood

basis. But after introduce the new concept by OTOBI the scenario has been change a lot. At

present OTOBI also make its wooden furniture for their valuable customer as their new

marketing strategy to create permanent position in market. Thus OTOBI has become the

market leader in the furniture industry for last whole decade. Few years back the

competition has been increased. As a result, OTOBI now facing huge amount of

competition though it has an annual sales of 15 corer taka per month. OTOBI has different

types of products. Among them chair, table, computer table, home furniture and file cabinet

are the main products.OTOBIs price is a bit higher than others. But they are the first brand

which exports furniture outside the country. It has about 8 showrooms in Dhaka and

Chittagong, 150 dealers in the whole country and 16 outlets outside the country. They

usually promote their products by ads, banners and direct selling. About 2500 people are

now working with OTOBI.

The Target Segment of OTOBI mainly the people of urban area specially the corporate,

houses and homes. By giving the ads they try to get the attention of the people and try to

give people an idea that OTOBI is the prestigious and high status product. The only

problem lies with price and distribution. But for these two factors about half of the

respondents do not want to buy the furniture of OTOBI. As a result OTOBI can change the

beliefs of the people by giving more ads on the television and in newspaper frequently.

Objective of the Study

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Objective of this report is to analyze the Strategic Segmenting, Targeting and PositioningObjective of this report is to analyze the Strategic Segmenting, Targeting and Positioning

of Otobi Furniture. We know that the competition in the furniture industry is increasing dayof Otobi Furniture. We know that the competition in the furniture industry is increasing day

by day as new firms are coming in the market like legacy, Navana, Partex etc. As a resultby day as new firms are coming in the market like legacy, Navana, Partex etc. As a result

nowadays Otobi Furniture is facing a huge competition. We have prepared this report tonowadays Otobi Furniture is facing a huge competition. We have prepared this report to analyze the Strategic Segmenting, Targeting and Positioning of Otobi Furniture tried toanalyze the Strategic Segmenting, Targeting and Positioning of Otobi Furniture tried to

build up some probable solutions of their problems so that they can gain their previousbuild up some probable solutions of their problems so that they can gain their previous

position in the market.position in the market.

Methodology of the Study

2.1 Research Method2.1 Research Method

In order to make this report we visited showrooms of OTOBI furniture. We collected

information from them. After that we made a questionnaire for the general people to know

their perception, belief, attitude and lifestyle. We have made of all analysis by their

answers of those questions. Different tables and graphs were prepared to gain a better view

of the consumers perception. Microsoft Word, Microsoft Excel and SPSS software were

used for this purpose. After the analysis we suggested the probable strategies. We made the

analysis of this report by Questionnaire survey methods. At last we selected some people as

sample and made this report.

2.2 Data Collection2.2 Data Collection

We collected the secondary data from customer and the competitors of OTOBI and

websites.

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LimitationsLimitations

To prepare the report we faced some problem that effected to make a good report. Such as,

We did not get the real annual sales data of OTOBI Furniture. It was easy for us to identify

their current market position from total sales volume.

For most of the corporate information of OTOBI Furniture we totally depended on the

information that provided by the officials of OTOBI Furniture Showrooms. It could not

possible to find out the major corporate clients of OTOBI.

We did not get sufficient time to make a successful report and for this reason we made it as

early as possible.

We did not get any report prepared in past in our library, so we depends only on

instructions given to us.

Segmentation strategies

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Defining the Furniture Market to be SegmentedDefining the Furniture Market to be Segmented

The mission of OTOBI Furniture is To provide the middle class and higher middle

class people of the country world class furniture in a very comfortable price.

OTOBI Furniture a part of OTOBI Group is one of the market leaders of furniture market

of Bangladesh. They started their business in Bangladesh in the year 1975 with the slogan

Trusted across the World. And now they crossed the boundary and operating business

also in India. They are assuming themselves as the market leader for last 10 years. Though

their price is a bit higher but as they provide the best quality furniture people are ready to

get that with any cost. Not only that they have the biggest brand image in our country.

OTOBI furniture has the biggest collection of furniture like world class chair, world class

computer furniture, world class home furniture, world class table, world class swivel chair

and file cabinet and plastic furniture. OTOBI furniture was given the award of enterprise of

the year 2001. Beside their corporate office in Dilkhusha, Dhaka, they have 8 sales and

display center in Dhaka and Chittagong city and around 100 dealers in the whole country.

They have about 16 outlets outside the country.

Competitors:Competitors:

The competition in the furniture market is increasing day by day as so many new firms are

coming in the market. As a result, OTOBI Furniture is facing a huge competition now a

day. Their main competitors are,

Navana Furniture

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Partex

Studio 45

Hatil

Tanin

Legacy

Market Segmentation

5.1 Age, Sex and Family Member5.1 Age, Sex and Family Member

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DDEMOGRAPHICEMOGRAPHIC SSEGMENTATIONEGMENTATION

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OTOBI Furniture is marketing one of the best quality furniture in Bangladesh. They are mainly

promoting their products to the corporate houses as well as houses. In this factor age is not a big

consideration as purchasing of furniture in a corporate house made by the officials who involve

with purchase or the directors. Their age may be 25, it may also 55. Not only that purchasing home

furniture in home may be influence by the father, mother or may be the children. So here I also

found a big age range. And same we can say about the sex. The purchase may be influence by male

or it may influence by female. As people do not buy furniture impulsively and it is a high

involvement product in most cases these demographic factors is not working like the other

products. As the family members influence the buying decision of furniture.

Social ClassSocial Class

The social class of the target market was determined according to their family income.

From the figure we can see that 44.17% people are coming from the income level of Tk.

15001 to Tk. 40000. We will call them middle class. This percentage is bigger in size.27.86% are from the income level of Tk. 40001 to Tk. 75000 who is near to the upper

class, 19.6% are from Tk. 75001 to Tk. 100000 who are upper class and at last 8.19% are

from the income level of Tk. 100000 or above who are the elite class. So we found that

most of the members of the target market are from middle and upper class people.

Our survey also found the social class of the people by their occupations and the

educational qualifications. And I found out from our respondents that a very few has

educational qualification of College and PHD, 55.7% have educational qualification of

graduate, 19.7% have postgraduate, and 19.7% have other types of educational

qualification.

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PPSYCHOLOGICALSYCHOLOGICAL SSEGMENTATIONEGMENTATION

BBEHAVIORALEHAVIORAL SSEGMENTATIONEGMENTATION

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Shopping ActivityShopping Activity

Number of shopping also reflects the social class of a person. Because if you are a person

of higher class you should have a higher number of shopping and it will decrease in middle

class and lower class respectively. From Our respondent I found that, 29.50% of our

respondents shop once a month, 34.42% of them shop twice a month, 9.84% of them shop

once a week and 26.23% shop more than four times a month. After the average I found that

our target market has a habit to shop more than twice a month but not more than once a

week.

Shopping PlaceShopping Place

Shopping place is now a symbol of status for the people of our country. As a result I can be

able to find out the social class from the shopping place habit of the people. 55.7% of the

total respondents shop usually from Eastern Plaza, Riffles Square and New Market. We can

categories them in middle class group. And remaining 37.7% shop from Bashundara City.

We can categories them in upper class. OTOBI can give distribution centers in the mostvisited shopping place or near to it for convenience of customers or to get more attention.

TV Channel, Clothing, Food Habit, Shopping Place are the cultural indicators that influence

the behavior of the people more.

TV ChannelTV Channel

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CCULTURALULTURAL FFACTORSACTORS

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The choice of the TV channels has sufficient effect on the cultural preference of the target

market. From Our findings of the survey I got that among those respondents approximately

49.2 % like channel I, 27.9% like ATN, 16.4% prefer Ekushe and others like RTV and

NTV. From this, I got the general idea about which channels of Bangladesh are most seen.Many respondents like to watch several channels at a time.

Culture is the distinctive way of life of a group of people, their complete design for living.

Cultural factors play a very important role for purchasing any kind of product. Without

matching with the culture a product is not able survive in the market.

Relevant Cultural ValuesRelevant Cultural Values

The important values that affect the purchase of OTOBI Furniture are,

Status: Status is one of the cultural values that effect the purchasing of OTOBI

Furniture. We know that decorating a house or a corporate office by the lamination

board furniture is the symbol of status now a day. As a result, people are buying

lamination board furniture. As OTOBI is the oldest brand people already have a

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believe that their quality is good. So most of the time they prefer to buy from

OTOBI.

Non-Traditional: We know that people are like to change their lifestyle now a day.

As a result most of the people now switching from the traditional wooden furnitureto lamination board furniture.

Being good to ourself concept: We know that being good to Ourself concept is

cherished by all in the society. As a result now people are thinking if they have

money they will buy the expensive and exclusive products for their use. As a result,

Lamination board furniture purchasing is increasing.

Fashionable: For making a home into sweet home people are now expensing a lot

for its fashion and design. And it is possible for only lamination board furniture to

provide more fashionable and stylist products. So lamination board furniture

purchasing is increasing.

Positioning Strategy

Products:Products:

We know that OTOBI is the biggest furniture brand of our country. They have about 26 different

types of furniture. Not only is that OTOBI furniture the symbol of status now a day. Most of the

big corporate house now purchasing their office furniture from OTOBI. They provide both

customized and standardized product. For customized product a buyer gives the order and OTOBI

produce according to that and in case of standardized product OTOBI makes the product itself and

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keep it in the outlet for buying of the people. Among the 26 different brands the main brands of

OTOBI are,

World Class Chair

Home Furniture

Table & File Cabinet

Most of these products has different slogan to establish themselves in the mind of the

people. They are,

World Class Chair Chair that satisfies your need.

Table Create your ideal office environment

Swivel Chair Beauty you can See

Home Furniture & File

Cabinet

World Class Furniture

Not only that they also take the orders for kitchen fittings. The main advantages with the

OTOBI products are,

Multiple colors

Knock Down System

Elegant Design

Competitive Price

After Sales Service

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Beside all this lamination board furniture they have already introduce Plastic and Wooden

furniture.

Price:Price:

We know that OTOBI now a day is one of the symbols of status. The price of OTOBI

furniture is a bit higher than that of the competitors. According to the officials of the outlet

of OTOBI As they are giving the best quality raw materials in each furniture their price is

a bit higher. They also told us that they import each of the raw materials from the country

where they get the best one. But according to them though their raw materials are more

costly than their competitors their price is competitive. The price range of different

furniture are given below,

Table: Price Range of the different products of OTOBI Furniture

Products Price range

Chair Tk. 970 18,000

Table Tk. 4,600 40,500

File Cabinet Tk. 8,900 65,500

Bed Tk. 9,900 40,000

Dinning Table Tk. 5,300 16,500

According to the officials of the OTOBI Furniture their price is depends on the quality of

raw materials, high technological machineries and overhead cost.

Place:Place:

The target market area of OTOBI Furniture is the metropolitan city area. In fact the main

target area is the Dhaka city and Chittagong city. For that reason all the showrooms of

OTOBI furniture is in these two cities. The addresses of the showrooms are,

OTOBI Corporate Office: 14 Dilkusha Commercial Area Dhaka 1000

OTOBI Center: Plot 12 Block CWS (C) Gulshan South Avenue Gulshan 1 Dhaka

1212

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Elephant Road: 230 New Elephant Road Dhaka

Gulshan: SE(F) 3 Gulshan Avenue Dhaka

Uttare: House # 21 Road #7 Sector # 4 Uttara Model Town Dhaka

Shewrapara: 923 Begum Rokeya Sharani Mirpur Dhaka

Panthapath: D. H Tower 129 Panthapath Dhaka

Chittagong: Zohora Tower, 1401, Agrabad C/A, Chittagong 1400

Beside these showrooms OTOBI has about 100 dealers all over the country to sale and

promote their furniture. Not only that they have about 16 outlets outsides the boundary of

the country. Their factory is situated in Savar, Dhaka which is bigger than all other

furniture factory of the country. They use their own van to distribute their furniture in the

country.

Promotion:Promotion:

All the firms try to keep their brand on the top ladder of the people mind by its promotional

activities. OTOBI also has its own promotional activities to keep itself on the top of the

peoples mind of Bangladesh. OTOBI use both ATL (above the line: TV, Newspaper,

Direct Selling) and BTL (Poster, Banner, Neon Sign) promotional strategies. But for a

product like furniture Above the Line promotional strategies specially direct selling, are

the main one.

Direct Selling:Direct Selling:

OTOBI Furniture has some very skillful and experienced marketing executives. Usually

they go to the big corporate houses of Dhaka and Chittagong city with their leaflets and

other promotional tools. In this case they try to describe the advantages of the furniture of

OTOBI and try to sell as many as furniture possible.

The descriptions of the OTOBI Furnitures TV and paper ads are explained below.

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Banner:Banner:

The banner is specially made because of the present Rainy season. In fact they use another

ATL strategy in the banner. To promote the sales in this season they give 10% discount to

all the furniture. This information and their showrooms are given in the banner.

Paper ad:Paper ad:

The paper ad basically shows the high status of OTOBI Furniture. In this paper ad OTOBI

use their slogan Barashar char That means the furniture of OTOBI has a biggest status

and prestigious image that people are buy OTOBI furniture with seasonal discount. Not

only that as when International trade Fair was on going the special offer 15% discount was

also mentioned in the newspaper ad.

TV ad:TV ad:

The TV ad also shows that people are motive to buy the furniture in the Rainy season. Then

a person says Apni Kinchen Kobe? This ad shows that OTOBIs Furniture are so good

that one people motivate the another people to buy the product with seasonal desire.

Findings and Recommendations

The main drawback of Otobi Furniture is the price. From our report it is clearly found that people

are not really comfortable with the price. Otobi Furniture should decrease their price a bit to make

their price more competitive in the market. For that they need to decrease their cost. We know that

they imported most of their raw materials from outside the country. So they can make long term

contract with the exporter or may take backward linkage strategies

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Rather than price it has also draw backs in the promotional and distribution activities. The number

of distribution outlets should be increased in Dhaka and Chittagong city. They also need to

increase their outlets into other big cities like Khulna.

Promotional Activity

Otobi can done some promotional Activity for increase there income and goodwill by doing

Newspaper Advertisement

Television Advertisement

Billboards

Banner

Direct Selling

Sponsor

Conclusion

Otobi is the market leader in furniture industry. But unfortunately we found a very few

advertisement in the newspaper and television of Otobi Furniture. Our report also shows the same

results. We can conclude that Otobi has some problems with their promotional activities. On the

other hand, we found frequent advertisement of Navana and other brands. We know that exposure

creates attention. So Otobi may loose some of the peoples attention if this strategy not changed by

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Otobi Furniture. So our recommendation is Otobi should increase the advertisement. Otobi

Furniture should decrease their price a bit to make their price more competitive in the market. For

that they need to decrease their cost. We know that they imported most of their raw materials from

outside the country. So they can make long term contract with the exporter or may take backward

linkage strategies

Rather than price it has also draw backs in the promotional and distribution activities. The number

of distribution outlets should be increased in Dhaka and Chittagong city. They also need to

increase their outlets into other big cities like Khulna.

Sources

www.otobi.com

ww.alibaba.com/member/bd100630270.html

www.bdyellowbook.com/.../Otobi_Limited-info666.html

bangladesh.world-countries.net/archives/tag/otobi-bangladesh

bd.linkedin.com/pub/bishnu-otobi/28/297/a12

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http://www.otobi.com/http://www.otobi.com/http://www.otobi.com/http://www.otobi.com/