Business plan of otobi - Hello, hope it will help you to find the best Solution. Thank You So much PDF

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Table of Contents Executive Summary.......................................................................................................................4 Company Overview.......................................................................................................................5 Industry Overview.........................................................................................................................5 Mission Statement..........................................................................................................................7 Products and Services of OTOBI.................................................................................................8 SWOT Analysis............................................................................................................................10 Strengths of OTOBI Furniture...............................................................................................13 Weakness of OTOBI Furniture...............................................................................................14 Opportunities of OTOBI Furniture.......................................................................................14 Threats of OTOBI Furniture..................................................................................................14 Competitors Analysis...................................................................................................................10 Company Highlights:...............................................................................................................10 Target Market:.........................................................................................................................10 Market Share:...........................................................................................................................10 Marketing Strategy:.................................................................................................................11 Products:...................................................................................................................................11 SWOT Analysis of Competitors:.............................................................................................11 PESTEL Analysis.........................................................................................................................15 POLITICAL FACTORS..........................................................................................................17 1|Page

Economic FACTORS...............................................................................................................17 SOCIAL FACTORS.................................................................................................................18 TECHNOLOGICAL FACTORS............................................................................................18 ENVIRONMENTAL FACTORS............................................................................................18 LEGAL FACTORS..................................................................................................................19 Target Market Overview.............................................................................................................19 Age:............................................................................................................................................20 Sex:............................................................................................................................................20 Education:.................................................................................................................................20 Social Class:..............................................................................................................................20 Income Group:.........................................................................................................................20 Geography:...............................................................................................................................20 Marketing Strategy:.................................................................................................................20 Branding Strategies.....................................................................................................................21 Direct Selling:...........................................................................................................................22 Group Influence:......................................................................................................................22 Billboards:.................................................................................................................................22 Banner:......................................................................................................................................22 Sponsorship:.............................................................................................................................22 Newspaper Ad:.........................................................................................................................22 2|Page

Television Ad:...........................................................................................................................22 Packaging:.................................................................................................................................23 Plan of operation..........................................................................................................................23

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Executive Summary OTOBI is the leading and prosperous furniture company in Bangladesh which was established in 1975 by painter & sculptor Mr. Nitun Kundu. With creative reinvention pulsating through the entire organization, OTOBI has set out to revolutionize the entire retail scenario starting off with Bangladesh. OTOBI is now an inspirational brand in homes and offices which is explicitly expressed through its products and communication. To accomplish competitive advantage, OTOBI Furniture Company is successfully applying market synergy by opening new clothing business OTOBI CLOSET. After the death of Nitun Kundu in 2006, the country’s top furniture brand lost its direction. Because of weak leadership, mismanagement, unplanned investment it is gradually losing its brand value. It also loses its brand value because of lack of product diversification according to the demand of customer demand in competition with other furniture brand. With its differentiation strategy, it is providing unique products, superior product quality, production style, special features, after sale service, exceptional promotion, a nationwide distribution network, discount offers etc. and targeting broad target market such as corporate house, hose hold/home and Govt. office etc. The company maintains its belief of setting its own benchmark and breaking it time and time again. The main strategic objective of OTOBI is to become Asia’s top three brands in next three years. It wants the customers to remember “OTOBI” as a memorable experience. OTOBI manages its most critical resource-Human Resource by unbiased recruitments, job training, counseling, and mentoring, some rewards, and motivational factors. OTOBI has stepped forward to actively respond to the needs of the public on numerous occasions and CSR policies. These reinforce the brand image and brand loyalty of OTOBI. Over the years, OTOBI has been awarded numerous accolades. Now, OTOBI is trying to increase their business by setting up strategic plan as a country’s top furniture brand. They are opening showroom in the various district of Bangladesh now. They are trying to diversify product with satisfied quality according to the customer demand.

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Industry Overview Industry is a group of firms producing a similar product or service for example garments industry, pharmaceuticals industry, furniture industry etc. On the other hand, firm refers to a business unit which hires productive resources for the purpose of producing goods & services. Traditionally furniture in Bangladesh developed as cottage-based industry. It is in early 90's when the furniture industry in Bangladesh transformed from cottage-based industry to mechanized mass production-oriented industries. Since then, furniture businesses began to grow with modern machinery, innovative designs, and use of diverse materials. The main varieties of furniture are produced from wood, processed wood, melamine board, Medium Density Fiber Board (MDF), particleboard, steel etc. At present Bangladesh is producing wide variety of international standard and quality furniture. People in Bangladesh are now going to choose local furniture instead of foreign furniture. The export of furniture and allied products from Bangladesh has started from 1995. Bangladeshi furniture is shipped to the US, Australia, the UK, the middle east, and European countries. Indian and other South Asian countries are also among the export destination, Furniture industry in Bangladesh can be divided into two sectors. They are:  Organized (branded)  Unorganized (non-branded) A report says that 65% of the market in this industry is captured by the non-branded producers. According to brand value we can sub-divide the brands in to three sectors:  High end (HATIL, OTOBI, NAVANA furniture, AKHTAR furniture)  Mid-tier (PERTEX, BROTHERS)  Low-end (LEGACY, SINGER HOMES) OTOBI, once the leading brand of the furniture industry was founded by noted artist Nitun Kundu. This brand monopolized the country's furniture industry even ten years ago. Apart from building up the company in the country over the course of 30 years, he presented it beyond the country's frontiers as an unparalleled Bangladeshi furniture brand. However, the country's once top furniture brand lost its direction following the death of Nitun Kundu in 2006. Instead of concentrating on its main business, several imperfect decisions, including investing in the power sector, have turned OTOBI into a dying company in just 10 years. OTOBI's annual turnover stood at Tk250 crore in 2018. Recently, though, its business has been going through a declining trend.

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The competitors of OTOBI utilized that scope and captured the market. According to a report of The Business Standard OTOBI is currently holding only 5% of the market share. On the other hand, HATIL furniture which was established as HATIL doors in 1989 at Badda is now leading the market capturing 10% of the market share of furniture industry. Akhtar furniture is in the second position on basis of their market share. Another giant of this industry is NAVANA furniture. They have started their business in 2002 and during this short period they have captured 5% of the market share. Furniture is a labor-intensive sector and Bangladesh has a large low-cost manpower which is a vital factor in becoming competitive in the world market. So, there is good potential for export of furniture and Bangladesh's furniture industries are ready for that. It is estimated that, by 2015 Bangladesh will earn export potential of crafts furniture accessories worth of USD 10 million along with furniture worth USD 40 million. The government of Bangladesh has declared the furniture industry as a 'Thrust Sector'. Presently two relevant associations i.e., Bangladesh Furniture Export Association and Bangladesh Furniture Industries Owners Association (BFIOA) are actively working on materializing the potential of this sector. Bangladesh Furniture Export Association (BFEA) has 12 members. About 41,560 enterprises and nearly two lakh skilled and semi-skilled people are engaged in this sector. On average 60% of raw materials of furniture sector are imported from different countries. Of those, timber, wood coating materials, hardware & accessories, world class fabrics etc., are major importable items. This industry has some mentionable problems such as high import duties of some raw materials like good fabrics, finishing/coating materials, hardware & accessories, shortage of electricity/gas etc. Scarcity of skilled manpower in handling modern machinery is limiting the prospect of growth of this Industry, which can be addressed through setting up more Technical Schools with a curriculum of short-term trade courses, where along with government initiatives private sectors should also come forward.

Company Overview OTOBI began its journey in 1975 as a small workshop in Topkhana road set up by Mr. Nitun Kundu. Bangladeshi people traditionally had been using wooden furniture, but due to the limitations of the country’s forest resources, Mr. Kundu anticipated the need for metal furniture in the country instead. He started OTOBI in 1984 as a commercial production where all kinds of metal furniture were manufactured. By 1988, OTOBI started to manufacture metal furniture from a factory at Mirpur and market products using a showroom at Elephant Road. Owing to the increasing demand for OTOBI metal furniture in the market, another factory was set up at 6|Page

Shyampur, Dhaka in November 1994. Since people preferred wooden furniture, OTOBI emphasized furniture made from Laminated Board to give a similar feel. OTOBI, because of its superior quality, gradually gained popularity all over the country. To keep up with the increasing demand for its products, OTOBI increased its production capacities, expanded its product line and product mix, and employed highly skilled industrial designers, engineers, and artisans. The vision of OTOBI is to become the most leading furniture manufacturing company in Bangladesh. By following the vision, the company will expand its sales net across Bangladesh. At the same time, it will also focus on foreign markets. The management will be based on a long-term partnership with the suppliers. The company’s activities will aim towards the offer of quality products and efficiencies and strive to achieve the contentment of the business partners, final consumers, and employees. The Mission of the company is to supply the most qualitative furniture with reasonable pricing across Bangladesh. The company constantly follows the latest trends in the furniture industry and introduces to the Bangladesh market new, interesting, and competitively advanced products. The company is trying to guarantee a wide offer of furniture products in different materials, dimensions, and colors for almost every room of your home. It offers a variety of product lines to attract more customers. It fulfills its social duties by fitting in the local environment as a sponsor and donator and offers to all employees a relaxed working environment. It is committed to providing excellent service and exceeding the expectations of its customers. It wants the customers to remember OTOBI as a memorable experience. It aims to fulfill the objectives of the Company's growth and to meet the expectations of all its employees.

Mission Statement Our mission is the rebranding of OTOBI for becoming the leading furniture company of Bangladesh and try to find ways to provide customers with the highest quality products and services possible in a timely fashion and at a competitive price.

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Products and Services of OTOBI Based on the overall rationalization, in the past eras, OTOBI used to manufacture simple and minimal designed furniture become inspired by IKEA. When the local companies were so involved to make furniture by solid wood, there OTOBI took the initiative to produce furniture from environment-friendly plywood that is made from unused sawdust, cortex particleboard. Though people back in the '90s tended to love traditional and ornamental woodwork furniture, OTOBI managed to be a top-notch furniture company by the signature and benchmark furniture design of Nitun Kundu. But after the death of the founder and due to poor leadership, strategies, and wrong decisions, the company loses track. They failed to hold the previous variety and artistic designs. In the meantime, OTOBI is trying to throw a new comeback with proper strategies. Now, their Sales and Marketing team targets village's customers. They make a town-centered business plan to fuel the attraction. Every month, they are opening a new showroom. At the present, they have two active factories to manufacture wooden doors, foams, mattresses, laminated board (LB) furniture, mild steel (MS) furniture, chairs, sofas, and plastic furniture. In recent years, they are focusing to create innovative, modern, stylish, and convertible, worldclass furniture. They are also creating custom furniture that acknowledged ethnic viewpoints and various sectors to satisfy customers' needs. For fulfilling the motive, some specialized branded furniture sections were brought by OTOBI where they are focusing on different materials, dimensions, and colors of the products. Those are       

Adhuna Kaarushi Cassique Karkun Apollo Otomat Otopoly

They are introducing four kinds of furniture categories as home furniture, office furniture, hospital furniture, and interior solutions furniture. 

HOME (Bedroom, Dining, Living, Utility)

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

OFFICE (Lounge, Office Chair, Office Storage, Office Table)



HOSPITAL (Bed, Storage, Utility)



INTERIOR SOLUTIONS (Residential, Commercial, Hospitality)

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Keeping pace with the times, their mission is to ensure the highest quality products at a competitive price and provide excellent efficiency after-sales service. Present Otobi combines aesthetic, personalize, high concept furniture with perfect attention to details.

Competitors Analysis Competitive analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats. OTOBI can set their strategic plan and rebrand their products with the help of efficient competitor analysis. We have analyzed the competitors of OTOBI for rebranding their products.

Company Highlights:    

OTOBI is founded in 1975, by Nitun Kundu. NAVANA is founded in 2002, by Shafiul Islam Kamal. PARTEX is founded 1962, by M.A Hashem. HATIL is founded 1989, by Selim H Rahman.

Target Market:  OTOBI focuses on the demand instead of the need of customers. Big company like square, Unilever, Rahim food, WHO, Apollo etc.  NAVANA set their target market based on demand of national market trend and diversifying needs of furniture customers.  The current segmentation strategy of PARTEX for both of its product line panel based and timber based is a broad rang lower middle to the upper up protect of the economic division of the Bangladesh market.  HATIL’s main target customer group is the country’s raising middle class.

Market Share:

OTOBI; 5.00% NAVANA; 15.00%

OTHERS; 50.00%

PARTEX; 5.00%

HATIL; 25.00%

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Marketing Strategy:  Marketing strategy of OTOBI stands on their dimensions of the value discipline which are customer. Intimacy, product leadership operational excellence.  NAVANA’s marketing strategy is based mainly on marketing the right information available to the right target customers.  PARTEX’s features vertically integrated both into the panel based and timber-based furniture industry for their strength in raw materials supply.  HATIL follows broad low-cost differentiation that facilities than offer wider variation in responsible prices.

Products:  Furnitures of OTOBI are bedroom set, double shelf bed, children bed, dinner wager, etc.  Furnitures of NAVANA are sofa sets, beds, dining table, TV units, dressing table, etc.  Furnitures of PARTEX are beds, sofa sets, dining table, doors, industrial and office furniture, kitchen cabinets, etc.  Furnitures of HATIL are showcase, mini cabinet, dining tables, e...