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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

Introduction
A business is market oriented when its culture is systematically and entirely committed to
the continuous creation of superior customer value. Market orientation always commences
from the information made by virtue of customers, competitors and market. Based on such
information the company performs coordinated actions, to create superior customer value.
Market orientation is the extent to which customer focus is implemented in key
organizational leverages. A market-oriented organization RBL recognizes the importance
of understanding its competition as well as the customer: The key questions of RBL
management are which competitors, and what technologies, and whether target customers
perceive them as alternate satisfiers. The key to become a market-oriented and customer-
oriented company is to understand the market and develop MDS. All of these deeply need
the information concerning customer, competitor and market. Hence, the whole information
can be observed from business view as:
• Determining how to deliver superior customer value
• Taking action to provide value to the customer

Importance of Market- Driven Strategy (MDS):


Everybody now, Market- Driven Strategy (MDS) is very essential in formulating business
strategy. Next, understanding what does the customer do, understanding the customers’
behavior s and measuring the interaction among customers. Therefore, the main point is
always orienting to the market and customers in every business activity performed. Market
and customer oriented means having orientation on three focused, competitor intelligence
and cross-functional team in the formulation of marketing mix, thus it will form a
competitive advantage. Market orientation involves the use of superior organizational skills
in understanding and satisfying customers. From the above information, we know that based
on research and experience of practical business, related with logic and value to become
market oriented. Whereas the important characteristics of MDS are:
• Market-oriented company is always determining its distinctive capabilities,
which are not easy to be copied by its competitors.
• Provide the best customer value, in accordance to the capabilities possessed
by the company.
• Successful MDS strategy will create superior customer value.

The measurement of MDS used two instruments, namely: Balanced score card (to measure
customer, learning and growth) and Internal Business Process (includes measuring financial
performance). In order to become a market-oriented company, such company must be
involved and has full support to the entire work. This means, the company must monitor
rapidly the changes against the customer's needs and desires. Such as determining the
impact of the changes to the customer's satisfaction, improve product innovation, and
implement strategy that could develop superiority of the company in order to compete.

Market Orientation in Bangladesh


Market orientation is always committed to the customer value, and process of creating
superior value to the customers. Today Market orientation has been well implemented by
the developed countries. However, few exceptions, developing countries, developing
countries are far behind. Most of the consumer goods manufacturing companies in
Bangladesh generally do not care about customer satisfaction but are concerned with their
own interests and as a result, in most cases, neither customer satisfaction nor better business
performance is achieved. Because of lack of detailed market oriented research, it is difficult
to identify market orientation companies in Bangladesh.

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

Rahimafrooz

Rahimafrooz is one of the respected and reputed business houses in Bangladesh. It has just
crossed 50 years of operation. Rahimafrooz has endured turbulences of the last 50 years and
has been able to transform itself from a small trading company into a leading diversified
business house. This is, indeed, a milestone, which Rahimafrooz has achieved with trust,
support and dedication of all stakeholders, past and present, most importantly, its
customers. Rahimafrooz began its operation as a trading company in 1954. Today
Rahimafrooz has diversified in many areas from storage power solution to automotive
aftermarket to retailing.

Rahimafrooz operates in three broad domains: automotive after market, power and energy,
and retail chain. It sells tyres, batteries, lubricants, emergency power products, diesel as
well as gas generators, lighting products, electrical accessories, solar systems, energy
solutions using compressed natural gas, and power rectifiers. The Group also runs 'Agora'
the first retail chain in Bangladesh. The Group’s portfolio includes international tyre brands
Dunlop and Kenda, and its own brand RZ Tyre. Rahimafrooz is the exclusive franchisee of
the full range of world’s leading lubricant brand Castrol in Bangladesh.

Through Rahimafrooz IPS, UPS and Voltage Stabiliser, the Company enjoys clear
leadership of the emergency power products market. The Company brings to Bangladesh
leading gas and diesel generator brands – Pramac as well as Mitsubishi. It also markets
home and industrial lighting products from General Electric USA (GE) and electrical
accessories from Hager France. Rahimafrooz’s Renewable Energy division has been
providing Solar solutions in collaboration with British Petroleum (BP). The Company, in
recognition of its solar efforts, received the McGraw-Hill Platt Global Energy Award in
2004 and the Global Ashden Award in 2006. Rahimafrooz also offers comprehensive
solution provider for CNG refuelling, conversion, conversion centres, and maintenance.
Rahimafrooz is also endeavouring into tyre retread, besides manufacturing and marketing
emery cloths and abrasive papers. In a joint venture, the Group has enterprised into the first
ever fibre optical commercial networking backbone in Bangladesh in the form of Metronet
Bangladesh Ltd. (MBL).

Rahimafrooz, in 2001, made a breakthrough in the urban lifestyles by launching the first
retail chain in the country – Agora. One of the SBUs of Rahiamfrooz Group, Rahimafrooz
Renewable Energy Ltd. distributes solar home systems to underdeveloped rural regions of
Bangladesh. For that, the company received the Ashden Award for Sustainable
Energy in 2006. The Group has strengthened its market leadership at home while reaching
out to international markets. Ranging from automotive after market products, energy and
power solutions, to a world class retail chain – the committed team at Rahimafrooz is
determined to ensure best in class quality standards and living the Group’s four core values

• Integrity,
• Excellence,
• Customer Delight and
• Innovation.

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

VISION
Be an enterprising Group of Taka 2,000 crore by the year 2010 with a diversified business
portfolio focused on dynamic growth, excellence, innovation, customer delight in enriching
our world.

QUALITY POLICY
Rahimafrooz as a team are totally committed to customer delight through intelligent effort
and continuous improvement.

ASPIRATION
To be the most admired and trusted organization through excelling in everything
Rahimafrooz do, following ethical business practices and adding value to stakeholders.

VALUES
• Integrity in all their dealings
• Excellence in everything they do
• Total commitment to customer satisfaction
• Thinking ahead and taking new initiatives

TEAM
Rahimafrooz foster en environment of learning and reward, taking pride in who they are
and what they do.

OUR COMMUNITY
Rahimafrooz strongly believes that doing good business means being good corporate
citizen. The company always takes pride in serving the stakeholders and community in
multifaceted ways.

Global Compact Rahimafrooz is a signatory of the Global Compact, a UN initiative that


sets standard on Human Rights, Labor Relations, Environmental and Ethics.

Environment
Environment Management System (EMS): They have taken comprehensive measures to
protect environment, complying not only to local requirements but also with ISO 14001.

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

Safe Disposal and Recycling of Used Batteries: Rahimafrooz has undertaken a


nation-wide campaign to promote safe battery disposal and recycling of used battery.

Community Services Rahimafrooz regularly contribute personal, monetary and medical


help to people disadvantaged by natural calamities and serious illness. Rahimafrooz also
makes significant contribution to leading diabetic and cancer hospitals.
Historical Background

1954 Incorporated as a trading company


1959 Entered into collaboration agreement with LUCAS, UK for setting up
manufacturing and distribution system of Lead-Acid automotive batteries at Dhaka
1960 Established battery factory at Nakhalpara
1978 Appointed as exclusive distributor of Dunlop tyres and launched Dunlop tyres in
the market
1980 Completed acquisition of Lucas Services (BD) Ltd. and renamed it as Rahimafrooz
Batteries Ltd.
1982 Introduced "dry charged" plastic case battery
1984 Established exclusive nationwide distributorship for automotive aftermarket
1985 Extended manufacturing capacity and semi-automated production
1986 Started assembling and marketing industrial batteries
1990 Established independent Lead-Oxide plant
1991 Completed acquisition of plant and technology for industrial battery manufacturing
from Electrona, Switzerland
1992 Entered into manufacturing collaboration agreement with Chloride group, UK
Make it's first export of battery to Singapore
1993 Introduced Instant Power System (IPS) for power back-up
1994 Completed acquisition of Yuasa Battery (Bangladesh) Ltd.
1994 Extended technical and general assistance to set up Pakistan Accumulators Ltd.
Haripur, NWFP Pakistan Extended export market to Middle East, Nepal, Bhutan,
Sri Lanka, Myanmar and Pakistan.
1994 Established Excel Retreads , a cold-cure tyre retreading plant, as a franchisee of
Elgi Retreads, India.
1996 Undertook a management and organizational re-structuring to reorganize Group
business operations into strategic business units (SBUs)
1997 Introduced Rectifier and Power Back-up Application.
1997 Attained ISO 9002 certification for battery manufacturing.
1998 Introduced PCM range economy battery for commercial vehicle segment
1999 Started exporting to Kuwait & Lebanon, Georgia and CIS Countries Hold First

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

India Distributor's Convention.


2000 Opened India Business Office in Ahmedabad Launched new brand of automotive
battery-VOLTA, which is a Valve Regulated Lead Acid battery
2000 Introduced own brand RZ tyre and launched in the local market.
2001 Received business Award as "Enterprise of the Year". Export to UAE. Opening of
Nepal Business Office in Kathmandu.
2001 Established the first grocery retail chain superstore called Agora
2001 Launched energy service company, Rahimafrooz Energy Services Limited (RESL),
for promoting distributed power.
2002 Launched 2nd Outlet of Agora at Gulshan
2004 Launched Rahimafrooz CNG Limited to facilitate CNG station installation and
services
2004 Launched MetroNet Bangladesh Ltd, a fully digital fiber optic based metropolitan
data communication network, as a joint venture with Flora Telecom.
Launched new automobile battery Spark for taxi-cab
2005 Launched 3rd Outlet of Agora at Moghbazar
2005 Launched Volta Maintenance Free battery

SBUs and Affiliations:

01. Rahimafrooz Batteries Produces all kinds of automotive and industrial batteries
Limited and one of the largest battery manufacturers in the
SAARC region; exports batteries in more than 19
countries
02. Rahimafrooz Distribution Maintains nationwide distribution network with more
Limited than 400 outlets covering entire Bangladesh; distributes
mainly automotive and appliance battery, tyre, IPS, UPS
and lubricants.
03. Rahimafrooz Superstores Emerges as leading chain superstore in Bangladesh,
Limited mainly covering Dhaka Metropolitan City area; carries
more than 25,000 varieties of product.
04. Rahimafrooz CNG Limited Involves in setting up CNG stations; facilitates
establishing CNG conversion centers; converts
automobiles into CNG and provides technical solution
and support.
05. Rahimafrooz Energy Provides uninterrupted and clean power and a fast
Services Limited growing power services company; establishes with
objective to meet country's growing demand for power
06. Excel Retread Limited Retreads all types of tyres from cars to buses/trucks; one
of the leading tyre retread centers
Others

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

GreyFab Limited, AsiaTex Limited

Brands

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

Rahimafrooz Batteries Limited (RBL)

Rahimafrooz Batteries Limited (RBL) is the largest lead-acid battery manufacturer in


Bangladesh and offers an extensive range of automotive & customized industrial battery. It
is one of the respected and reputed business houses in Bangladesh. It produces all kinds of
automotive and industrial batteries. It manufactures over 300 different types of automotive
and industrial batteries. Its plant is ISO 9001 & ISO 14001 certified. RBL has also
extended its product line to secure power solution with UPS, Rectifier and VRLA Batteries
with collaboration of Enersys-USA, Eltek-Norway, AEES-France. RBL has a successful
story of installing solar power in the remote rural areas of Bangladesh. It has successfully
installed more than 10,000 home solar systems in the remote rural areas of Bangladesh.

Rahimafrooz produces and markets a range of battery products – automotive, motorcycle,


and appliance batteries, Industrial (deep cycle, traction, VRLA) batteries, IPS and UPS
batteries, and rectifiers. Lucas and Spark are the leading names in the local battery market
while Volta, Optus and Delta batteries are fast gaining equity as International brands.

The company has been serving this market for the past fifty years by introducing innovative
products. Rahimafrooz Batteries Limited (RBL) is one of the key players in South Asia in
its field and one of the largest battery manufacturers in the SAARC region; With undisputed
market leadership at home, exports batteries in more than 35 countries in Asia, Middle East,
Africa & South America. The Company has embarked upon an aggressive growth plan that
includes becoming a significant global player in the international battery market.

Vision 2010:
To be one of the top two storage power companies in SAARC by the year 2010

Brands

• Lucas
• Optus
• Rahimafrooz
• Spark
• Volta

Plant Capacity:
Rahimafrooz has state of the art manufacturing plant. It is equipped with all latest
technologies with complete air treatment and lead-recycling management. RBL produces
different types of batteries to meet the local and international market. Its capacity in
Automotive Battery is 660,000 (N50) units per annum and Industrial Battery is 41 million
AH/annum. By the end of 2008 production capacity of Industrial Battery will be increase to
120 Million AH. All the products are manufactured under strict quality control and ensured
by international certifications.

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

Collaboration Agreements
It has different technical collaboration agreements with Lucas Battery Company, U.K,
Technical support Group (TSG), Hawker Batteries, UK, Invensys, UK, Hawker Batteries,
UK, Eltek – Norway, AEES – France to ensure the quality of battery.
SBU's Contribution to Group Sales

9%
6% 27%
Battery
18% Contribution

40%
Rahimafrooz Batterie s Rahimafrooz Distribution
Rahimafrooz Superstores Rahimafrooz Energy Se rvices
Other Units

Battery Production
Battery Production

4%
9%

85%
2%

Automotive Industrial Solar Appliance

Sales of Battery

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

Sales of Battery

45%

55%

Export Sales Local Sales

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

Market Overview
Automobile Battery is primarily responsible for electrical energy to the electric motor and
the ignition system of an automobile. They are mainly the lead-acid accumulators and are
known to provide a potential difference of 12.6 Volts. Mostly these Automobile Batteries
do not require any form of maintenance much unlike other car accessories. The competitive
nature of the automobile industry has prompted the companies to take up new and
innovative marketing strategies to thwart the competition. As consumers demand ever more
sophisticated and feature-loaded vehicles, the global automotive industry faces growing
challenges to balance these expectations with space constraints and weight concerns. Every
component receives scrutiny to determine if it can be made smaller and lighter to promote
fuel efficiency and performance and help fit more content into the available space. In
addition, vehicle manufacturers and suppliers must increasingly consider environmental
concerns such as recyclability, as well as overall performance. Electrical loads in vehicles
today are growing every year resulting in consequent increases in cable harness, power
distribution box, relay, and switch ratings, as well as costs.

In the context of saturated local market, hunger for growth and creating new avenues RBL
entered into the phase of export as the pioneer in 1992. Since then it has been expanding its
export market with an export volume growth of 80% annually. So far RBL has exported
more than one million units. RBL’s first importer was Chloride, Singapore. In 1994 RBL
started exporting to Pakistan and at the same time provided technical assistance to set up a
battery factory in Pakistan. The export continued till the factory became operational in
1997. In 1997 RBL started exporting to India. Within very short period it had organized an
extensive marketing network covering the entire country having 8 distributors and 450
dealers. By 1997 it covered all the SAARC countries except Maldives. RBL is exporting to
18 countries among which India, Sirlanka, Singapore, Nepal, Bhutan, Thailand, UAE,
Kuwait, Lebanon, Afghanistan, Madagascar are regular importing countries.

RBL is continuing its journey of export with excellence through stringent Quality Control,
Quality Management & Environment Management System. All the companies as a part of
their marketing strategy offers a range of vehicles in all the segment to make sure that the
customer is driving one of their vehicles only..

Market Size

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

The total Indian battery market is estimated at close to Tk. 170 crores. Out of this the
industrial battery market is estimated at around Tk. 60 crores which includes the VRLA
(valve regulated lead acid) battery market, which is estimated at around Tk. 50crores in the
current year. The power and UPS industries are other key user segments. The automotive
battery business is estimated at around Tk. 100 crores. Conclusive industry data on
SARRC is not available. To best estimate, the market share of the SAARC is about 35%
for automobile batteries and around 25% for industrial batteries.

Product Overview

Rahimafrooz markets three major brands of automotive batteries: LUCAS, VOLTA and
SPARK. All the batteries are produced under strict quality controlled plant of the
Rahimafrooz Batteries Ltd. It has introduced new brand SPARK for the taxi cab. This
specially designed to take the load and frequency of the taxi cab.
Lucas Automotive Dry Charge Battery:

• 12 Volt Battery
• German Drive Range
• Heavy Duty Range
• 6 Volt Batteries
• Lucas PCM

Rahimafrooz manufactures specialized Industrial Batteries. The plant is equipped with


modern production machineries and testing facilities including those for tubular plates. It
conforms to international standard ISO 9001 & ISO 14001and to JIS, DIN, BS and IEC
specification. It produces a wide range of lead-acid industrial batteries with capacities from
20AH to 2500AH. The batteries are used for applications in telecommunication, power
station, railway system, electric vehicle, forklift, ship, buoy lighting and solar power
system. Industrial Batteries

• Deep Cycle
• Electric Car Battery
• IPB Battery
• Standby Stationary
• Traction

Specific features of our industrial battery are:

• Long life
• Minimum maintenance
• Low internal resistance

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

• High rate of discharge performance


• High resistance to adverse mechanical and electrical condition
• Tolerance to extremes of temperature

Special Features:

• Excellent cycling ability provides high reliability and exceptionally long life
• Large electrolyte reservoir means high tolerance to water loss and minimal
maintenance.
• High charging efficiency
• Low self discharge, dry pre-charged plates
• Robust, clear case and rugged construction ensures mechanical durability

The quality, dependability, reliability and long service life of thicker Flat Plate deep cycle
batteries are the result of balanced design of the plates, separators and incorporation of
latest technical developments in lead acid battery technology.
Strategic Targeting
The target market is a group of customers to whom the company aims its marketing effort.
The target market of the RBL is automobile users and industries like telecommunication,
power station, railway system, electric vehicle, forklift, ship, buoy lighting and solar power
system and household for IPS and UPS battery. Targeting broad groups of buyers within a
specific product/market, such as automobiles. Consider, for example, the global market for
automobiles. In 2003 the sales of the Chevrolet Impala model were 1.5 million units; in
2005 Carolla best-selling model had sales of about 300,000 units. y considering auto mobile
markets, RBL segmented their market and develop products like Locus. The fragmentation
of needs and wants in markets is creating subgroups of buyers within the total market, each
displaying different customer satisfaction requirements. Such differentiation provides an
opportunity for businesses to design product offerings to meet the needs of customers in
different market segments.

Targeting all people and also organizations in a market is not a typical strategy for RBL.
Instead, many target one or more segments within the total market. Deciding what people
(or organizations) to target is a critically important strategic decision. Rahimafrooz Batteries
Limited introduced a latest technology battery ‘Volta Maintenance Free Battery’
manufactured at the company’s own plant by using lead and calcium in the expanded metal
technology. The products range are –– NS40ZL for 1300 to 1500 CC vehicles, NS60L for
1500 to 2000 CC vehicles, N50Z for 2000 to 2500 CC vehicles, NS70 for 2500 to 3000 CC
vehicles and NX 120-7 for 3000 to 3500 CC vehicles. The price ranges between Tk 3769.71
and Tk 7109.06, depending on the type of the battery. The customers need not wait for acid
addition while purchasing this battery. This high quality products and services are important
influences on customer satisfaction of RBL. Continuous improvement of existing products
and the introduction of new products facilitate RBL to gaining sustainable competitive
advantage in the market. The market place will demand customized products and immediate
delivery. These force managers to make swift product design and marketing decisions.

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

SWOT ANALYSIS OF RBL

Strengths:
• Excellent cycling ability
• high reliability and exceptionally long life
• Large electrolyte reservoir
• high tolerance to water loss and minimal maintenance
• High charging efficiency
• Low self discharge, dry pre-charged plates
• High rate of discharge performance
• High resistance to adverse mechanical and electrical condition

Weaknesses:
• Expensive than other competitors’ brand
• Low self discharge

Opportunities:
• Evolution into a "Plug-in Hybrid" with higher capacity batteries and a drive train
designed to operate for extended periods in electric-only mode.
• spread into other market sectors
• Increasing awareness of environmental issues likely to keep demand high.
• licensing of technology to other manufacturers

Threats:
• Increasing Global Competition
• Low price batteries offered by China
• Increasing raw materials price

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

• Anti-dumping
• Pressures of environment groups

Competitor Analysis
RBL is market leadership in automotive batteries in Bangladesh. Present RBL owes 73%
market share in batteries market. Their most profitable product’s is Locus and Volta.
Besides RBL, there are 10 other competitors who are serving same markets and only
capturing a minimum market share in Bangladesh.
Battery Market Share (%)
1%1% 5%
3%
2%
7%
3%
4%

74%

Rahimaafrooz Batteries Limited Aftab Automobiles Ltd.


Eastern Batteries Ltd. Hamko
Haque Brothers (Carbide) Ltd. Olympic Industry Ltd.
Power Distribution (Troken) Quasem Drycell Ltd.
Reliance Electronics

Strategic Policies

 Innovative: RBL always find creative means to achieve their desired results, while
building on the experiences of others.

 Leaders: RBL aggressively in the forefront of economic development for thir target
markets; others will use their success to measure own.

 Renewals and Growth: RBL focus our efforts and incorporate values into actions that
contribute to a positive, effective and sustainable economic transformation in the Region.

 Enterprising People: RBL find, embrace and support the efforts of customers,
suppliers and employees who are motivated to undertake new or risky paths that result in
personal and company growth.

 Enterprising Businesses: RBL attract and engage companies willing to change and
take risk to achieve sustainable growth, thereby providing increased employment and
wealth to the Region.

The Region: RBL will serve the broad geographic area rather than Bangladesh.

 Market Driven: RBL listens carefully to customers, suppliers, end users and
employees in order to ensure superior quality products in the market.

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

 Action Oriented: RBL will always have a sense of urgency in addressing important
matters.

 Commitment to Quality: RBL e will remain steadfast in the pursuit of excellence in


all facets of the company.

 Results Focused: RBL allocates resources on the basis of expected Mission impact.
 Learn and Grow: RBL ensure that cross-functional teams and dedicated employee
provide superior customer and maintenance services along with their core products like
battery which help them to continuous growth of the company and close to customers to
learn their needs

 Achieve: RBL set realistic expectations that can be accomplished both individually and
by the team, and hold ourselves accountable for our results. We will recognize and celebrate
our success and regard failures as learning opportunities.

 “Open Communication”: RBL keep people informed listen to them carefully and
encourage everyone else to do the same.

 Customers: RBL is vigilant in their efforts to advance the best interest of the people
who seek their products and services and delivers outstanding services with high quality
products

 “Integrity”: We will be reliable, honest and honorable; people we deal with may count
on our word being good and our commitments being met.

Strategies
1. Build a support system that will enable the successful execution of resources to innovate
superior products.
2. Develop production process based on the strategic plan implementation requirements;
3. Develop cross-functional team to support implementation of the strategic plan.
4. Develop a performance measures tool
5. Ensure their employee have the training, experience and tools to carry out their
responsibilities; fine tune the organizational structure to be sure it fits strategy at all times;
outline clear reporting relationships; develop clear internal job descriptions including
performance expectations.
6. Develop a process for continual feedback on progress from the market and periodic
assessment and revision of their marketing strategy and plans.

The Strategic Planning Process

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

 Set the planning horizon RBL established a five year time frame for the plan.

 Survey the environment RBL identified the major and minor political, economic,
technological and social factors which can influence our success.

 Evaluate the competition RBL identified the important competitors and assessed their
strengths, weaknesses and game plans.

 Evaluate ourselves RBL took a good look at our own strengths, weaknesses, culture
and values. We outlined the expectations of our employers, and owners also.

 Define the mission Considering the environment and the competition, RBL own
limitation and capabilities, we developed a mission statement which defines what kind of
organization we want to be, and how we want to achieve our target

 Set strategic policies RBL established policies and decision rules which further define
and delineate our mission, and which provide guidelines for always operating in harmony
with our mission.

 Establish objectives We set specific objectives, the accomplishment of which will


support our mission.

Develop Strategies RBL devised general courses of action to accomplish our objectives
in a timely manner.

 Prepare action plans RBL developed a number of specific and detailed action plans
with timelines and accountability in order to enable us to carry out our strategies and meet
our objectives.
How RBL Become Market Leader?
To become leader and customer oriented organization, Rahimafrooz Batteries
Limited (RBL) if following the philosophy:

1. LIVES THE VALUES

Integrity
Honest, fair and impartial to all. – e. g. Delivering on promises to external and internal
customers.

Excellence
Self discipline, personal responsibility, overall commitment e.g. (a) Taking personal
responsibility for delivering the results as planned. e.g. (b) Finding and implementing new
or improved solution.

Total Customer satisfaction


This applies to both internal and external customers, and must fully satisfy both. This
means those understanding their expectations, and matching to our resources/capabilities.

Taking new initiatives


Finding and implementing new ways of solving or improving issues

2. RESULT ORIENTED

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

Achieving targets, taking corrective action, giving feedback.

3. TEAM BUILDER
Empathic, Compassionate. e.g. (a) Receptive to ideas, complaints, feedback of others and
adding positive suggestions (b) Actively coaching team members for their development.

4. RECEPTIVE TO CHANGE
E.g. deriving maximum benefit from the new style of supportive training programs rather
than the previous directive style of training.

5. VISIONARY
Recognizing the qualities & skills required to aspire to the company’s vision e.g.
Constantly benchmarking themselves to fulfill aspirations.

6. ENTREPRENEURIAL
Proactive, risk-taking, Self-starter, innovative, confident e.g. Constantly strive to improve
knowledge of company & work area, using this to make good, innovative and proactive
decisions.

MARKET ORIENTATION AND RBL:


Market orientation plays a pivotal role in determining the success of organizational
performance. In context market orientation, RBL consider the following things:

1) RBL’s business objectives are driven by customer satisfaction.


2) RBL monitor their level of commitment and orientation to serve customers’ needs.
3) Their strategy for competitive advantage is based on understanding of customer
needs.
4) RBL measure customer satisfaction systematically and frequently.
5) RBL responds to competitive actions that threaten them.
6) RBL target customers and customer groups where they have, or can develop a
competitive advantage.
7) The top management of RBL regularly discusses competitors’ strengths and
strategies.
8) They communicate information about their successful and unsuccessful customer
experiences across all business functions.
9) All of RBL business functions are integrated in serving the needs of their target
markets.
10) All of their managers understand how everyone in the company can contribute to
creating customer value.

Rahimafrooz Batteries Limited (RBL) pursues a model which drives them to the market
orientation. This model is illustrted below:

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

Strategic deployment

Internal integration

Knowledge management
Customer focus Market Orientation

Organizational infrastructure

Customer interface

Organizational culture

Rahimafrooz Batteries Limited (RBL) put organization-wide intelligence management and


responsiveness to it at the heat of the construct and form of specific culture which includes
distinctive management practices, organizational infrastructure, systems, human resources
and technology support as organizational entities (leverages) enabling implementation.

Market orientation is specifically often understood as the all-encompassing strategic


orientation that raises the probability of market performance of RBL which encompass
customer, competitor, intra-functional, profit, distributor and environmental orientation. We
understand customer focus as a focus on customer needs; providing and continuously
improving perceived value, quality and satisfaction within a long-term time horizon with a
view to achieving superior market performance.

RBL follows a model consists of six dimensions representing key organizational leverages -
through which customer focus is implemented. Market (customer) orientation is therefore
not a separate dimension, but is reflected in all organizational leverages. The first dimension
of the model is strategic deployment. Discrete strategic leverage is important organization-
wide orientation of RBL because it concerns top management factors (barriers), the strategy
building process and necessary resources. RBL considers strategic deployment as a first
leverage. Through this leverage, market orientation should be manifested as a visible senior
management commitment, as the presence of it in the RBL’s mission, as alignment with
business strategy and as provision of adequate resources.

The second dimension of the model is internal integration leverage. RBL focus focus on
internal environment and intra-functional coordination. Under this dimension, RBL
coordinated utilization of company (capital and human) resources and full departmental

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

alignment and balancing internal orientation with external. Internal integration leverage is
implemented in RBL through activities leading to efficient and satisfied employees such as
training, internal communications, empowering, motivating, rewarding, but also through
internal quality management and efficient inter-departmental cooperation.

The third dimension of the model is market knowledge management. RBL emphasis on
information handling (analysis, generating, disseminating) and additional activities like
interpretation and use of marketing knowledge. RBL more focused on learning as a form of
information generating where all important information for marketing decisionsand also
balanced metrics of market performance.

As the fourth dimension of the model, an organizational infrastructur. In RBL, different


organizational elements and systems such as organizational structure, centralization,
information technology and communication systemsm play important factors of market
orientation.

The fifth distinctive dimension of the model is customer interface design. AS a market
oriented organization, RBL always close contacts with customers.They believes that the
importance of the interaction with the customers also lies in the fact that a customer’s value
is largely produced during their interaction with employees, other customers and
organizational systems. Therefore, frontline communication and interaction points with
customers should be managed as a coherent whole. As market orientation is concerned with
sources of customer value, customer interface design should therefore be one of its key
leverages. Customer interface is a relatively independent organizational entity and it
requires distinctive management emphasis and operationalized as the extent of
customization, fulfilment of expectations, management of emotional, social, technological
and environmental elements of interaction, but also through long term, relationship
impacting activities.

Finally, organizational culture is the sixth dimension of the success of RBL. Organizational
culture is an important factor of driving RBL as an market oriented organization in this field
which encompasses tangible elements such as behaviours and artefacts, and intangible
elements, such as values, beliefs and norms. Customer orientation as a set of beliefs which
puts customer interests first. RBL focuses greatly on customer needs information which are
more deeply rooted values and beliefs that are likely to support customer focus and
permeate the RBL.

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

CUSTOMER FOCUS
RBL are focusing on customers. Getting closer to the customer, Rahimafrooz associates
directly with distributors, retailers and also buyers to know what drives customer
satisfaction, identify customer needs, and use those needs to target markets where the
business can achieve a sustainable and significant competitive advantage in this field. RBL
understands customers’ preferences and requirement and offering superior value products.

 RBL develops a centralized Customer Feedback & Query (CFQ) CELL. “Total
commitment to customer satisfaction” is one of their values. Listening to what customers
say in a continual systematic way is a key tool to comprehend their needs and requirements
and to satisfy them achieving excellence in their products and services accordingly.

 All individuals of Rahimafrooz Group interact with customers and members of the
public everyday and do hear, receive, or learn about their comments, complaints, views, etc
on the products, services, and dealings of the company.

 A systematic and organized way of managing these feedbacks and queries will surely
strengthen their total commitment to customer satisfaction.
Customer Satisfaction and RBL
Rahimafrooz Batteries Limited is customer-driven firms who are constantly monitoring and
analyzing customer satisfaction. A key objective is identifying the product/service attributes
that influence customer satisfaction. Rahimafrooz Batteries Limited successfully competed
with others global competitors in Asia by designing durable and quality batteries to meet
specific users' requirements. Rahimafrooz targets specific customer groups. The company is
very service oriented and quick to respond to customer needs.

Understanding customer satisfaction Rahimafrooz engage in accurate tracking of the needs


and wants of all participants in the entire distribution chain, including suppliers,
manufacturers, middlemen, and end users. All members of the Rahimafrooz’s distribution
network is striving to satisfy the individual or organization that ultimately consumes the
product or service. Teamwork is playing the significant in Rahimafrooz to meeting buyers'
needs. For this, RBL is measuring of customer satisfaction regularly to know buyer needs or
preferences and identifying whether changing or not. An important part of the monitoring
task is identifying buyers' future needs. Within the organization, marketing professionals of
Rahimafrooz are evaluating the changing requirements of end users and channel members.
For these they involve all personnel in contact with customers to evaluate activities. And
also for improving customer satisfaction include the product/service delivery system,
performance of the product/service, the image of the company/product/brand, customers'
perceived price-value relationship of the product/service, employees' level of performance,
and study of competitors' advantages and weaknesses.

INFORMATION ACQUISITION
We consider RBL as a market-oriented company because it completely understands its
markets and the people buy its products or services. Gaining these-

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

 RBL is gathering proactive information and analysis and they have a wealth of
information is available in company records, information systems, and employees.

 A key part of information acquisition, RBL is learning from experience where they
encourage open-minded inquiry, widespread information dissemination, and the use of
mutually informed managers’ visions about the current market and how it is likely to
change in the future.

 Rahimafrooz has commissioned a third party research firm to survey Rahimafrooz


customers of all SBUs, and products and services, to provide them key learning on how to
further strengthen their customer service. They make a GITC team who are working
tirelessly to put in place a Customer Relationship Management (CRM) system to help them
get closer to their customers for both acquisition and retention programs.

COMPETITOR INTELLIGENCE
A market-oriented organization RBL recognizes the importance of understanding its
competition as well as the customer.

 The key questions of RBL management are which competitors, and what technologies,
and whether target customers perceive them as alternate satisfiers.

 RBL believe superior value requires that the seller identify and understand the principal
competitors’ short-term strengths and weaknesses and long term capabilities and strategies
which make the RBL market leader in the market.

CROSS-FUNCTIONAL COORDINATION

RBL is getting all business functions effectively to work together to provide superior
customer value. They are successful in removing the walls between business functions—
marketing talks with manufacturing and finance.

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

 RBL build a Cross-functional teamwork guides the entire organization toward providing
superior customer value. RBL are focusing on improving internal efficiencies.

 RBL has set in motion the process of assessing their current business processes using an
"Integrated Business Planning" model called MRPII. This is expected to coordinate and
bring continuous improvement and alignment between sales, marketing, manufacturing,
business planning, forecasting, financial planning, and HR planning.

 RBL pursues an approach named THE DEEP DIVING APPROACH which continually
swimming around looking for new clients, customers, solutions, best practices, they could
work within the group and gradually built it up.
 RBL can choose to build up a Rahimafrooz Group wide community of like-minded
marketing individuals. By continually benchmarking and evaluating themselves, RBL
create a group of intensely committed and steadfast marketers.The objectives are:
• Exchange Knowledge of Best practices
• Complement the Strategic Planning Process
• Cultivating the Group wide Marketers' community
• Having the Common purpose, aligned goal
• Create an identity and sense of bonding
• Interact Online and offline

SHARED DIAGNOSIS AND ACTION


As becoming market oriented, RBL is deciding what actions to take to provide superior
customer value. This involves shared discussions among company personnel and an
analysis of trade-offs in meeting customer needs.

 RBL makes an effective cross-functional team which help the management to take
decision and also making facilitates diagnosis and coordinated action.

 To introduce a new battery all business functions of RBL work together toward a
common purpose. For this, RBL is making major changes in the culture, processes, and
structure of the traditional pyramid-type organization. For example, RBL has been
strengthened with a new management team, and new outlet planning is underway.

 One strategic policy of RBL is Open Communication where RBL keep people informed
listen to them carefully and encourage everyone else to do the same.

 RBL are focusing on people development. RBL introduced the Balanced Scorecard
(BSc), a strategic management tool developed by Kaplan & Norton to adapt this model to
sustain their future growth. It is a tool to monitor and measure Strategic Initiative
implementation encompassing four essential perspectives:-
• Financial,
• Customer,
• Internal Process, and
• People.

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

 RBL already have identified their Strategies, Objectives and Measures consistent with
Vision 2010. At the same time they developed an appropriate BSc Dashboard software in-
house.

 A number of senior level promotions have been approved. A group-wide and SBU
specific training and development plan has been finalized for the next 6 months. A group-
wide salary and benefits review is being done, and the Board Compensation Committee
review that in the coming months which give an important competitive advantage in
providing superior customer value and achieving superior performance.

Core Competence
Core competencies are the most significant value-creating skills within the corporation and
key areas of expertise which are distinctive to the company and critical to the company's
long term growth. RBL's core competencies are they are offering better quality and durable
batteries than competitors in the Bangladesh and also other countries like India.
Sustainable Competitive Advantage
Sustainable competitive advantage allows the maintenance and improvement of the
enterprise's competitive position in the market. It is an advantage that enables business to
survive against its competition over a long period of time. The opportunity for Rahimafrooz
to sustain its competitive advantage is determined by its capabilities of two kinds –
distinctive capabilities and reproducible capabilities - and their unique combination to
create superior customer value. They are focusing on strengthening our core business. New
investments in core businesses include RBL's expansion of capacity. RBL is investing in
expansion of its nationwide distribution network. To make UBC (used battery collection) a
success, greater teamwork is working among the concerned SBUs and the
dealers/distributors which give a competitive advantage. RBL are focusing on improving
financial management. For this, they introduced the Balanced Scorecard to measure
financial performace and ascertain optimal mechanisms for a group procurement policy,
potentially leading to centralized procurement. The Rahimafrooz Financial Leadership
Team (FLT) is attempting to cut operating costs by 20% against budget with the same top
line target by eliminating unnecessary expenses.

RBL are focusing on improving internal efficiencies. They have set in motion the process
of assessing their current business processes using an "Integrated Business Planning" model
called MRPII. This is expected to coordinate and bring continuous improvement and
alignment between sales, marketing, manufacturing, business planning, forecasting,
financial planning, and HR planning. Recently, RBL kicked off the group-wide QMS
process to build process focus both at RBL and at all SBUs. Various IT system
enhancements are being planned by GITC.

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

DISTINCTIVE CAPABILITIES
The ‘resource-based view of the firm’ has seen an increased emphasis on competing on
‘capabilities’, both tangible and intangible. ‘Capabilities’ have been defined as: complex
bundles of skills and collective learning, exercised through organizational processes that
ensure superior coordination of functional activities. Distinctive capabilities are the basis of
company’s competitive advantage. According to the new resource-based view of the
company, sustainable competitive advantage is achieved by continuously developing
existing and creating new resources and capabilities in response to rapidly changing market
conditions. Among these resources and capabilities, knowledge represents the most
important value-creating asset. Distinctive capabilities of RBL are:

Recourses

Sustainable Superior Value


Core Competitive Creation
Competencies Advantages

Capabilities

Distinctive Capabilities of RBL


 Technical Capabilities
It has different technical collaboration agreements with Lucas Battery Company, U.K,
Technical support Group (TSG), Hawker Batteries, UK, Invensys, UK, Hawker Batteries,
UK, Eltek – Norway, AEES – France to ensure the quality of battery which make them
market leader in Bangladesh and also doing business in more than 24 countries. It also
completed acquisition of plant and technology for industrial battery manufacturing from
Electrona, Switzerland

 Strong Brands
Rahimafrooz is a strong brand in our business arena. They are also able to establish separate
brands for products like Lucas. Under Rahimafrooz corporate umbrella, they already
establish some other SBU’s successful like Rahimafrooz CNG Ltd.

 Financial Capabilities
RBL are focusing on improving financial management. The Rahimafrooz Financial
Leadership Team (FLT) is attempting to cut operating costs by 20% against budget with the
same top line target by eliminating unnecessary expenses. They have financial resources by
which they are entering new markets, expanding their business and acquiring new
technologies. Rahimafrooz Group achieves and sustains continuous growth for more than 6
years - at a "natural" rate of 26% per annum.

 Marketing Capabilities

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

Rahimafrooz has own distribution networks named Rahimafrooz Distribution Limited (RDL)
involves in the marketing and distribution of a wide range of products through its nation-
wide distribution network. RDL markets three major brands of automotive batteries:
LUCAS, VOLTA, VOLTA MF (Maintenance Free) and SPARK in Bangladesh. The strong
distribution networks make the RBL market leader in this market.

 Teamwork Business Process:


RBL makes an effective cross-functional team which help the management to take decision
and also making facilitates diagnosis and coordinated action. They make a GITC team who
are working tirelessly to put in place a Customer Relationship Management (CRM) system
to help them get closer to their customers for both acquisition and retention programs.

 Organizational Culture:
RBL is emphasizing on improving their corporate governance to sustain our Group's
continued focus on group health and group growth. For this, they separate Management
from Ownership. All individuals of Rahimafrooz Group interact with customers and
members of the public everyday and do hear, receive, or learn about their comments,
complaints, views, etc on the products, services, and dealings of the company and they
discuss within the company and managing these feedbacks and queries surely strengthen
their total commitment to customer satisfaction. Now with a combination of leadership at
various levels, employees drive and dynamism, managing change successfully, good
corporate governance and with Vision 2010 focus they achieve growth at the higher rate of
40% plus this year.

SUPERIOR CUSTOMER VALUE


We know customer value is the trade-off of benefits against the costs involved in acquiring
a product. The benefits RBL offers includes-

 the product (batteries),


 the supporting services (free maintenance services),
 the personnel who are offering the products and providing service and
 Image of the product (Rahimaafrooz and also its product’s brand like Volta
 Costs include the price of the battery, the time etc.

The search for new areas of customer value underpins the RBL into a profitable $ 20
million business operating 420 outlets in Bangladesh and SAARC Region by creating a new
batteries for users as why they can able to charge high prices for its batteries. The company
has created and dominated a new area of customer value. Achieving superior customer
value requires superior understanding of what creates value for customers.

CUSTOMER VALUE PROPOSITION


Value proposition is a description of the customer problem, the solution that addresses the
problem, and the value of this solution from the customer's perspective. Deliver a particular

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

customer value proposition to a definable market in order to exist. RBL is delivering value
proposition contains the essential elements of Features in the battery, Advantage like igh
tolerance to water loss and minimal maintenance ,Benefit like maintenance supports, Brand
Image and Offering include competitive price, communication, distribution outlets etc. This
is a reference to a specific important feature of the offer, the advantage as compared to the
competition, and the benefit to the customer. The Rahimafrooz corporate brand images and
product brand image like Locus convey feeling, and typically depict a lifestyle to
customers.

Innovation Must Span the Organization


Rahimafrooz is analyzing the need and ends with customer satisfaction. Importantly, the
process is continuous since needs change, products are modified, and new products are
introduced. Moving this array of activities and functions toward the common goal of
customer satisfaction, RBL is continuously understanding the product and service
characteristics that customers want and need.

RAHIMAFROOZ: A MARKET-DRIVEN ORGANIZATION


Producing and marketing for international markets are established activities for many
companies. This also considered by Rahimafrooz because they are doing business in
foreign countries. However, both the changing scope and composition of international
markets and the emergence of new organizational forms are creating pressures for
evaluating strategies for existing markets and entering new markets. The global is a new
concept for competing in world markets. Rahimafrooz considers the whole world as their
competitive arena. It keeps in touch with technology and market trends all around the world.
For this, Rahimafrooz is making collaborative agreement with key players like collaboration
agreement with LUCAS, UK for setting up manufacturing and distribution system of Lead-
Acid automotive batteries and also acquiring of some competitors like Yussa Bangladesh
Limited which turn them to market leader and become as market driven organization in
business arena. The key challenge is learning how to design and implement strategies in a
rapidly changing business arena. For this, RBL develops effective management systems for
coping with the dramatically changing world. Strategic capabilities enhanced by:
1. Scanning and understanding customer, suppliers, demographic, and technological trends;
2. Setting a vision that forms a direction for their organization;
3. Establishing more adaptive and flexible organization practices; and

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

4. Encouraging a strategic unity between the organization and its external stakeholders by
involving customers and suppliers in organization practices.

Market Sensing Capabilities


Market-driven companies have effective processes for learning about their markets. Sensing
involves more than collecting information. It must be shared across functions and
interpreted to determine what actions need to be initiated. For this RBL develop an effective
market sensing capability which identifies various information sources and develop
processes to collect and analyze the information. For this RBL build a centralized
information system in market sensing activities. Different business functions have access to
useful information and need to be involved in market sensing activities.

Customer Linking Capabilities


RBL’s management believes that creating and maintaining close relationships with
customers are important in market-driven strategies. These relationships offer advantages to
customers and also RBL through information sharing and collaboration. As a result, RBL
reduces the possibility of a customer shifting to another brand. According to RBL,
Customers are valuable assets. All individuals of Rahimafrooz Group interact with
customers and members of the public everyday and do hear, receive, or learn about their
comments, complaints, views, etc on the products, services, and dealings of the company. A
systematic and organized way of managing these feedbacks and queries will surely
strengthen their total commitment to customer satisfaction.

Aligning Structure and Processes


To become market driven, Rahimafrooz changed the design of the organization. In 1996,
Rahimafrooz undertook a management and organizational re-structuring to reorganize
Group business operations into strategic business units (SBUs) where in each SBU there is
cross-functional coordination and involvement and also redesigned processes like sales and
marketing, customer relations, order fulfillment, and distribution.

CONCLUSION
Achieving successful implementation is a continuing challenge to the executives
responsible for executing strategies and to the scholars seeking to understand
implementation processes. The changing characteristics of the market-driven era will
undoubtedly affect strategy formulation and its execution. To achieve the sustainable
competitive advantage and market oriented, Rahimafrooz has enterprised into the first ever
fibre optical commercial networking backbone in Bangladesh in the form of Metronet
Bangladesh Ltd. (MBL). To sustain in home country Bangladesh and also international
market, market orientation is necessary for Rahimafrooz to make a competitive posion in
the market, build brand and also satisfying customers by delivering superior value.
So from the study we can tell that Rahimafrooz Batteries Limited is practising market
driven strategies which make the RBL market-oriented organization and achieve a
sustainable competitve advantage through acquiring distinctive capabilities in this business
arena. Rahimafrooz began its operation as a trading company in 1954. Today Rahimafrooz
has diversified in many areas from storage power solution to automotive aftermarket to
retailing. By deliveing superior value according to cutomer requirements and preference,
RBL is now the market leader and making profit and arrived as reputed business house not
only in Bangladesh but also in South Asia region. They achieved todays position through
long experience and learning. RBL monitor their level of commitment and orientation to

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Market Driven Strategies (MDS) practices in Bangladesh in context of Rahimafrooz Batteries Limited (RBL)

serve customers’ needs and their strategy for competitive advantage is based on
understanding of customer needs. RBL target customers and customer groups where they
have, or can develop a competitive advantage. The top management of RBL regularly
discusses competitors’ strengths and strategies. They communicate information about their
successful and unsuccessful customer experiences across all business functions. All of RBL
business functions are integrated in serving the needs of their target markets. All of their
managers understand how everyone in the company can contribute to creating customer
value. Finall it is articulted that RBL is becoiming market oriented and following some
market driven strategies to gather sustainable competitive advantage in automutive after
market.

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