Shinepukur Ceramics Limited: A Study of Its Present Marketing Position and Prospects

CHAPTER: 1  Background of the Study.

 The students of MBA Program offered by School of Business (SOB), Bangladesh Open University have to prepare a master paper. This submission of project or internship (master paper) is a partial requirement of MBA degree. As assigned by Bangladesh Open University, I have prepared the master paper under the supervision of Prof Dr Kazi Shariful Alam, Department of Marketing, Faculty of Business Studies, Dhaka University. In this regard, the project was selected to prepare report on the title “SHINEPUKUR CERAMICS LIMITED: A STUDY OF ITS PRESENT MARKETING POSITION AND PROSPECTS.” Ceramic tableware is now-a-days a common house hold item at home and abroad which no longer belongs to high income group only, it is even commonly used in the street corner, small hotels and restaurants. The demand of the ceramic tableware is increasing day by day due to change in the life style of the people.

 Objectives of the Study.


 The main objective of this study was to identify and assess the present marketing position of Shinepukur Ceramics Limited considering its market shares. The study was also attempted to evaluate the prospects of market growth of the organization. The study broadly aimed at analyzing the feasibility of the expansion project of Shinepukur Ceramics Ltd.


(a)              To analyze the brand of Shinepukur Ceramics Limited.

(b)              To assess the brand image of Shinepukur Ceramics Limited from the viewpoint of purchasers.

(c)              To assess the quality of the brand from the viewpoint of users.

(d)              To evaluate the distribution system from the viewpoint of retailers.

(e)              To assess the merchandising activities of the particular territory to ensure absolute visibility of the targeted brand.

(f)               To determine the total demand in the market (both in home and abroad).

(g)              To determine export and domestic sales projection.

(h)              To find out the current market position of Shinepukur Ceramics Limited.

(i)                To recommend new strategy for opportunities.


 Nature of the Study.

The nature of the study is evaluative one and it described different stages, inputs, outputs etc of Shinepukur Ceramics Limited in terms of market position. The report was prepared based on the guidance of respective executives of the organization with the consultation of the academic supervisor.

  Target Group.

 Exploratory Research:

 Managers, Executives and customers of Shinepukur Ceramics Limited.

 Conclusive Research:

 Individual customers/consumers of brand of Shinepukur Ceramics Limited.

  Sources of Information.

Data collection of this report was a bit different from the conventional procedure but both primary and secondary data were used in this report.

 Primary Data:

 Primary Information was collected by interviewing managers and employees of Shinepukur Ceramics Limited and directly communicating with the customers. I also conducted a questionnaire survey of the customers. Primary information was under consideration in the following manner:

 ►Face to face conversation with the employees; in that I talked with 20 employees at different levels.

►Appointments with the top officials of the organization; in that I interviewed Manager Finance, Admin & IT, Manager Marketing and Manager HRM.

►By interviewing retailers at different outlets;

►By interviewing customers of the brands.

 Secondary Data:

Different types of secondary data has been elaborated in my research. Sources of secondary information can be defined as follows:

►Annual Reports of Shinepukur Ceramics Limited;

►Various books, articles and compilations;

►Web Search;

Scope and Limitations.


As a whole, a complete idea has been developed about the ceramic industry, which included the existing market demand, sales, production capacity, expenditures and profits. This project would also help to critically analyze different criteria to assess the feasibility of any project. Scopes include:

►Shinepukur Ceramics Limited has good Marketing Department.

►It is one of the leading ceramics industries in Bangladesh.

►Information is available.


►Time constraint would be the major limiting factor for the study.

►Organization has not provided all information needed to conduct study.

►Lack of experience partially.

►In many cases, updated information was not be available.

► In some cases, respondents did not provide needed information.

CHAPTER: 2Growth of Ceramics: An Overview


The Ceramic Industries as defined by ‘Shreve’s Chemical Process Industries’ is any clay products or silicate industries which have their finished materials that are essentially silicates. According to a more technical definition of the subject, “Ceramics comprise of all engineering materials or products that are chemically inorganic, except metals and metal alloys, and are usually rendered serviceable through high temperature processing”. According to this broad definition, the following types of product can be included under ceramic industries:

Whitewares. China, earthenware, pottery, porcelain, stoneware and vitreous wares.

  1. Structural Clay Products. Building brick, face brick, terra-cotta, sewer-pipe and drain tile.
  2. Refractories. Fire blocks; silica, chromites, magnesite, magnesite-chromite brick; silicon carbide and zirconia refractories; aluminum silicate and alumina products.
  3. Cement.
  4. Specialized ceramic products.
  5. Enamels and enameled metal.

One may even argue to include glass within this broad spectrum of ceramic industry. However, the scope of my paper will be rather limited and focused on ceramic products relevant to industrial growth of Bangladesh.

  Trend of Ceramic Industry in Bangladesh.

On the basis of global market demand, availability of raw materials, skill and technology, the whiteware type of ceramic products have a great potential in Bangladesh. The following sub-sectors of whiteware products have shown tremendous growth potential in recent times:


    1. Bone China,
    2. Porcelain,
    3. Stoneware and
    4. Red-clay Earthenware.
  1. Sanitaryware; and
  2. Ceramic Tiles.

  Manufacturers of Ceramics in Bangladesh: At a Glance.



a. Bone China:


Dodd has defined bone china as a vitreous translucent pottery made from a body of the following approximate composition.

 Calcined bone                                45% to 50%

China Clay (Kaolin)                        25% to 30%

China stone (Cornish stone)       25% to 30%

In a note he adds: “ In the U.S.A. ASTM-C242 permits the term “bone china” to be applied to any translucent white ware made from a body containing as little as 25% bone ash.

According to Dinsdale the standard British definition refers to “a minimum of 30% of phosphate derived from animal bone and calculated as tri-calcium phosphate.”

Table: Compositions of Bone China Bodies



History.   When Europe was producing very high quality porcelain, somehow English craftsman could not fully master this technology. Upto early part of 18th century, they were producing mostly soft-based porcelain – so-called fine china. One explanation of this is that the pottery in England could not raise the temperature of the kilns beyond 1300ºC which is essential to produce high quality hard porcelain. Around 1751, only Royal Worcester could master this technology and started production of European quality hard porcelain. Today, Royal Worcester is one of the premium customers of Shinepukur Ceramics.

Then in 1789, a potter named Josiah Spode II created history in the art of production of finest quality of Chinaware. He invented commercially successful Bone China recipe and his factory went into full production in 1794. It was subsequently copied by all potters in England who were mostly centered around Stoke-On-Trent. Till today, Spode remains one of the finest and most exclusive brand of Bone China tableware around the world.

 The way in which Spode arrived at his composition is a matter for conjecture. Knowing the recipe tried by frye of Bow, he may have increased the proportion of bone ash or he may simply have mixed equal parts of bone ash and a “soft” hard porcelain. Spode’s merit lies in having produced a body based on bone ash that was commercially successful.

The first and until recently the only bone china factory to be established outside England was in Gustavsberg. Sweden towards the end of the 19th century. Great interest was expressed in U.S.A. early this century. Binns made a strong plea for the manufacture of bone china in that country. Some bone china seems to have been made in U.S. as Parmelee in the discussion on Binn’s paper referred to the American practice of using fully calcined bone. Watts in 1905 actually cites three American bone china bodies at his disposal for investigation. However, it was only fairly recently that a well know American fine tableware factory – Lenox – started manufacturing bone china. There is a small bone china factory in Canada. In Germany, Villeroy & Boch, Mettlach and Wallerfangen manufactured bone china temporarily in the nineteen—twenties. This firm took it up again very recently (the actual manufacture being carried out by their subsidiary Heinrich). Further attempts to produce bone china were also made in France in the early nineteen-thirties.

Bone china appears to be made in Russia judging by publications in the literature. The country perhaps most successful in establishing a viable bone china industry outside Britain and Sweden is Japan.

Present Manufacturers.

 Till today, Bone China remained a product of ultimate luxury and a technology guarded by a very few world-renowned manufacturers. The leading manufacturers are Wedgewood, Spode, Royal Doulton and Royal Worcester of UK; Lenox of USA; Villeroy & Boch of Germany; Richard Ginori of Italy; Noritake, Naromi and Nikko of Japan and Hankook of Korea. Some of these companies have also set up factories in Indonesia and Thailand.

Bangladesh Experience.

Shinepukur Ceramics is the first industry which has successfully absorbed the Bone China technology from Nikko of Japan in the year 2000 and, in a short span of two years, has emerged as a major supplier to global brands of Bone China tableware. Monno Ceramic, which is well known for its porcelain, has also recently started producing very small quantity of Bone China. We may hope that more entrepreneurs will now be interested to setup Bone China factories in the country.

 b. Porcelain


 Porcelain is defined as a ceramic product of dense white, translucent character. The body of standard porcelain consists of a mix of kaolin, feldspar, and quartz.

Classification of porcelain is often made according to the firing temperatures. Porcelain fired at temperatures between SK 13 and SK 16 (SK= Sager Cone) 1380°C and 1460°C respectively, is called “ hard porcelain” whereas “soft porcelain” is fired at temperatures as low as SK 6a (1200°C). As a consequence of the lower firing temperature soft porcelain can be decorated with a wider range of colors.

 Occasionally porcelains are differentiated according to their application i.e. “ Tableware Porcelain”, “Sanitary Porcelain”, “Chemical-Technical Porcelain” and “ Electro-Porcelain”. A summary of batch formulations of the various types of porcelain is shown in following table.


Recently special porcelains for technical application have been developed e.g. alumina porcelain where quartz is partially or completely replaced by alumina. This type of porcelain shows considerably improved mechanical properties.


Oriental Porcelain

The Chinese probably made the first true porcelain during the Tang dynasty (618-907). The techniques for combining the proper ingredients and firing the mixture at extremely high temperatures gradually developed out of the manufacture of stoneware. During the Song dynasty (960-1279), Chinese emperors started royal factories to produce porcelain for their palaces. Since the 1300’s, most Chinese porcelain has been made in the city of Jingdezhen.

 For centuries, the Chinese made the world’s finest porcelain. Collectors regard many porcelain bowls and vases produced during the Ming dynasty (1368-1644) and Qing dynasty (1644-1912) as artistic treasures. Porcelain makers perfected famous blue and white underglazed porcelain during the Ming period. Painting over the glaze with enamel colors also became a common decorating technique at that time. During the Qing period, the Chinese developed a great variety of patterns and colors and exported porcelain objects to Europe in increasing numbers.

By the 11th century, the secret of making porcelain had spread to Korea and to Japan in the 15th century. Workers in these countries also created beautiful porcelain objects. A Japanese porcelain called Kakiemon was first produced during the 1600’s. It features simple designs on a white background. Another well-known Japanese porcelain called Imari ware, or Arita, is famous for its dense decorations in deep blue and red.

European Porcelain

As early as the 11th century, traders brought Chinese porcelain to Europe, where it became greatly admired. However, it was so rare and expensive that only wealthy people could afford it. As trade with the Orient grew during the 16th century, porcelain became popular with the general public. The custom of drinking tea, coffee, and chocolate became widespread and created a huge demand for porcelain cups and saucers. European manufacturers responded by trying to make hard-based porcelain themselves, but for a long time they failed to discover the secret. Nevertheless, some of their experiments resulted in beautiful soft-based porcelain. The first European soft-based porcelain was produced in Florence, Italy in 1575 AD.

 By the 17th century, porcelain manufactured in many parts of Europe was starting to compete with Chinese porcelain. France, Germany, Italy, and England became the major centers for European porcelain production.

French Porcelain

France became famous during the 18th century as the leading producer of soft-based porcelain. The first factories were established at Rouen, St. Cloud, Lille, and Chantilly. The most celebrated type of soft-based porcelain was first produced at Vincennes in 1738. In 1756, the factory was moved to the town of Sevres. Its soft-based porcelain became known as Sevres. The earliest Sevres had graceful shapes and soft colors. Sevres pieces produced from 1750 to 1770 were decorated with brilliant colors and heavy gilding. Many of these pieces had richly colored backgrounds and white panels painted with birds, flowers, landscapes, or people. Sevres is also noted for its fine figurines of biscuit (unglazed porcelain).

Beginning in 1771, a hard-based porcelain industry developed near Limoges, where kaolin deposits had been discovered. By the 1800’s, Limoges had become one of the largest porcelain centers in Europe. An American named David Haviland opened a porcelain factory at Limoges in 1842 to make tableware for the American market. Haviland porcelain features soft colors that blend together and small floral patterns.

German Porcelain

A German chemist named Johann Friedrich Bottger discovered the secret of making hard-based porcelain in 1708 or 1709. This discovery led to the establishment of a porcelain factory in Meissen in 1710. Meissen porcelain is sometimes called Dresden because Bottger first worked near the city. For nearly a century, it surpassed in quality all other hard-based porcelain made in Europe.

The great success of Meissen porcelain can be partly attributed to the fine artists who decorated it. They painted the wares with an amazing variety of colors and designs. Johann Horoldt (or Herold), who became chief painter in 1720, produced beautiful Chinese and Japanese as well as European designs. Johann Kandler, who worked from about 1730 to 1770, is famous for his exquisite figures of animals and people.

The porcelain is now produced in most of the countries around the world for domestic consumption or export depending on the quality and global competitiveness

Bangladesh Scenario.

Tajma Ceramic pioneered the first ceramic tableware plant in Bangladesh in 1959 commencing production in 1962 followed by Peoples Ceramic in 1966. However, the significant breakthrough in the international marketing of Bangladesh-made porcelain tableware was only materialized in late 1980’s by the successful introduction of high quality porcelain tableware by Monno Ceramic. The company commenced its commercial production in 1985, although the real success in the export market started around 1988-89. Monno remained virtually the single player in the field exporting more than 80% of the total ceramic export from Bangladesh until 1999-2000.

The year 1999 has been a watershed year in the history of ceramic industry in Bangladesh with the successful establishment of the first Bone China factory in the country with technical assistance from NIKKO, the master Bone China tableware maker in Japan. The year marked a turning point in the technological advancement in this particular field and upgraded the image of Bangladeshi products worldwide.

c.         Stoneware and Red-Clay Earthenware


The production of stoneware and red-clay earthenware – one of the most ancient human industry – and relates to human civilization. Burnt clayware has been found dating from about 15000 BC and was well developed during Assyrian and Egyptian civilian. Museums around the world contain various clay products as a record of culture. However, the usage of both stoneware and earthenware survived and remained very much part of fashion even after advent of highly translucent and whiteware products.

Bangladesh Experience

 Bengal Fine Ceramics was the first industry in Bangladesh which applied modern technology to produce good quality stoneware. Standard ceramic is the other company which produces similar quality stoneware in the country. Both of the factories are exporting their products to various chain stores around the world.

Hand-painted and Designer Collection red-clay products has huge global demand specially in North America and Europe. However, no industry in Bangladesh has seriously looked into the potential of the market and tried either to produce or sell.


 Sanitaryware is usually a vitreous product and its processing is mostly labor intensive. The first modern composite sanitaryware factory was established by BCIC in Mirpur (named Bangladesh Insulator and Sanitary ware Factory Ltd. – BISF) with the technology from Czechoslovakia in mid ’70s. The factory also produces insulators and tiles. In the private sector, there are also a few industries producing sanitarywares and recently RAK Ceramics Ltd., a UAE-based company, has decided to set up a modern sanitaryware factory in Bangladesh. However, the development of this sub-sector has been rather sluggish in comparison to tableware sectors. There is a huge potential of this sector in the domestic market as there is significant import of sanitaryware in the country.

   Ceramic Tiles.

Whiteware tiles are generally classified as Floor Tiles and Wall Tiles. Floor tiles are resistant to abrasion and impervious to stain penetration whereas, wall tiles are generally softer and glazed. Recently, there have been significant activities in this sub-sector both from domestic and foreign entrepreneurs. Setting up of quite a few number of new factories have reduced our dependence on imported tiles and mosaic. RAK Ceramics Ltd is manufacturing tiles. However, we have not yet started looking into export market in this sector.

   Investment Trend in Ceramic Sector.

Investment on ceramic sector is not significant in comparison to other industrial sectors. Following table presents a summary of ceramic industry size in Bangladesh:



The global export of tablewares (bone china, porcelain & stoneware) in total is more than US$ 15 billion. However, Bangladesh experienced a sharp increase in ceramic export since FY 2000-01 and maintained a consistent growth over the last two years (shown in exhibit).


Growth of Ceramic Tableware Exports from Bangladesh (1995-96 to 2004-2005)

In million US$


  Strength and Weakness of Whiteware Ceramic in Bangladesh

Let us now analyze the strengths and weaknesses of this sector and look into the further potential.

The main strengths of the ceramic sector are:

  1. Ceramic as a sector is labor intensive.
  2. Availability of highly skilled and low-cost labor.
  3. Cheaper, clean and abundant source of energy.
  4. Bangladesh is already recognized as a reliable source for high quality ceramic products.
  1. Bangladesh enjoys GSP (Generalized System of Preferences) facilities in most of the countries around the world, which facilitates global market access.
  1. Huge potential of market access to neighboring India whose ceramic technology is lagging behind Bangladesh.
  2. Existence of sizeable domestic market.
  3. Untapped potential in sanitaryware, red-clay products and tiles.

   Simultaneously, major weaknesses of this sector in Bangladesh are:

  1. Raw material quality is generally poor and unsuitable for producing top-end products.
  1. Modern ceramic industries are generally capital intensive.
  2. Technology barrier in ceramic industry is significant.

Growth Potential Remains in Investment and Trade

In the ceramic sector, export is only limited to tableware. Out of total US$ 15 billion global export of tableware, Bangladesh’s share is not even 0.25%. The potential for export of sanitary and red-clay earthenware is still untapped. Moreover, ceramic is a very high value addition product. The export diversification strategy of the country should focus on these aspects of value addition, market potential and other strengths. Investment in ceramic sector could yield in higher return to the entrepreneurs than most of the manufacturing concerns.

Given the present strength and potential, ceramic sector can transform the economy of Bangladesh with the supports from government, entrepreneurs, financiers, technologists and engineers.

CHAPTER: 3 Shinepukur Ceramics:  Shining Above the Rest

To Start:

Ceramics Tableware is now-a-days a common household items at home and abroad which no longer belongs to the high income group only, it is even commonly used in the street corner small hotels and restaurants. The demand of the ceramics tableware is increasing day by day due to the change in the life style of the people.

 Shinepukur Ceramics Limited (SCL) is pioneer in bone china technology in Bangladesh. It offers an exquisite range of the finest, world-class tableware in bone china, new bone china and porcelain. Shinepukur culminates all its knowledge, skills, efforts and traditions in superbly crafted tableware demanded by discerning customers. Incorporated on January 26th 1997, Shinepukur is set on 115,00 square meters of land at the Beximco Industrial Park at Gazipur, about 35 kilometers north of Dhaka. The plant was commissioned on December  9, 1999.

Superior technology blended with Japanese elegance. Shinepukur is heralding high-tech tableware manufacturing in the sub-continent. Shinepukur introduces bone china tableware in collaboration with NIKKO, the master of bone china in Japan. Its association with NIKKO has resulted in the company achieving the leading position in superior technology. NIKKO technology, developed through research and tradition since the beginning of the 20th century, has been integrated into the entire operational mainframe of Shinepukur.

 Shinepukur tableware is designed to be an affordable luxury. From dinner plates to salt and pepper pots, it offers a complete range of product groups in a variety of shapes, decoration and patterns. The unique and beautiful tableware from Shinepukur introduces a new trend in fine dining. Customers are at liberty to choose from full range dinner set, place setting, starter set, tea set, coffee set, soup set etc. serving and desired number of persons.


Each of our activities must benefit and add value to the common wealth of our society. We firmly believe that, in the final analysis we are accountable to each of the constituents with whom we interact; namely our employees, our customers, our business associates, our fellow citizens and our shareholders.”

 Quality Policy:

Shinepukur Ceramics Limited firmly believes in TOTAL QUALITY as a continuous process of improvement in all spheres of business. It plans to achieve this by:

>  Seeking customers’ need and expectations and striving to satisfy and to exceed them;

>  Simultaneous improvement of productivity and cost reduction;

>   Involving employees at all levels and providing knowledge and training;

>  Maintaining a high standard of safety, health and environment.

  The competitive advantages of SCL

ü  Pioneers in applying microwave-proof gold, a state of-the-art-user-friendly technology in edge decoration of tableware.

ü  Most Shinepukur tableware’s is perfectly safe in the dishwasher, freezer, refrigerator and micro-oven.

 ü  The shining of SCL tableware is outstanding this brings hope that SCL will the future market leader.

 Technical Feature:

Shinepukur has modern and brand new machineries from world reputed manufactures like TAKASAGO, SKK, and MINOYOGYO of Japan. The technical personnel have been trained by these companies as well as NIKKO in Japan. The Company has its own Power Generation and Water Supply System for uninterrupted production.

The entire ranges of Shinepukur products (Bone China and Porcelain) company with USFDA and proposition 65 (California State) requirements. Shinepukur Tableware’s are Impact Resistant (ASTM C 368-75) as well as, Resistant to Acid, Detergent, Crazing and Thermal Shock. These are also Dishwasher and Microwave Safe.

 Organogram and Departmental Activities of SCL

The Organogram of SCL can be divided into two divisions, company Head Office and Factory. Beside these two main divisions, Shinepukur has also two separate small bodies these are Warehouse and Display & Sales Center.

 The management Organogram of Company Head Office and Factory/Production are given below:



Procurement Department

Procurement (Domestic)

The domestic procurement department is removed by the direct supervision of General Manager (Domestic Mkt.) along with a Manager. 30% of total inputs are collected from local source. The components that collected from local source are spare parts, packaging materials (Box, PP Band, Poly bag), chemicals etc. It is to be mention that all purchases are made on credit and the credit term is 30 days.

The local procurement procedures are given below on flow chart;


During material collection, procurement department putting more emphasis on quality than price.

Procurement (Foreign)

Foreign procurement is made on through LC (Letter of Credit). the issuing bank of SCL is Southeast Bank. SCL import on the basis of proforma invoice and giving 20% advanced to issuing bank to open LC. Although the percentage differ due to the relation with issuing bank. The rest of the amounts will be made within 60 or 90 or 150 days, depends on seller and advising/buyer’s bank. The overall activities of foreign procurement department are given below:


Sales Department

Domestic Sales.

Domestic sales are operating into two ways i.e. direct sales and indirect sales. I will discuss later, on direct sales because most of the activities of domestic sales dept. are tied up with indirect sales. More or less the domestic sales launch the product by maintaining the following distribution channel.


Many people raise a question that, “how SCL getting success within a very short period in term of sales”? The answer of this question is it has prior experienced management team, so they are well known about the distribution channel. The management team of SCL also avoids biases and never compromise with low quality output.

Inspire of these positive features SCL can’t increase its sales in large extend because of financial crisis, unable to fulfill supply, shortage of working capital & capacity. Shinepukur Ceramics now going to take new marketing strategy i.e. pricing through product quality. 70% of total sales are conducted through domestic sales.

Criterion of Distributor:

SCL made no indirect sales without distributor. To be a distributor the following criteria should be fulfilled:

i)                   Trade License

ii)                Bank solvency certificate

iii)               Income tax GIR number

iv)               Location of the distributor

v)                 Size of the shop

vi)                Turnover capacity

vii)               Good will

viii)              Security Money

ix)                Previous Experience in Ceramics Tableware business

Foreign Sales

Ceramics manufacturing is gas-based, labor intensive and skill-oriented project. As such Bangladesh enjoys the comparative advantages in manufacturing ceramics tableware particularly for export market due to competitive cost. Traditionally, Japan, UK, Germany and European countries were exporting ceramics tableware for world markets. But due to tremendous wage increase, currency appreciation as well as non availability of willing worker to work in ceramic factories, many ceramic manufacturing project of these countries ware turned out unfeasible. Recent trend indicates that most of the developed countries are importing ceramics tableware from developing countries to meet their domestic demand at least partially. Apart from production cost advantage

Bangladesh enjoys Generalized System of preferences (GSP) which allow duty quota restriction for export to any country.

After consider the present international ceramic’s market SCL has found good opportunity to export it’s products into number of overseas and non-overseas countries. Now, in the international market SCL exporting it’s products to Italy, Spain, Singapore, UK, India and Turkey. Bangladesh tableware will new markets like Japan, South Africa, Russia etc. and new segments of customer in the international markets in USA, Scandinavia and Australia etc. Japanese Trading Houses have already shown keen interest to market the Bangladeshi bone china. Internationally targeted sales are about $12 million per month but the actual figure is low, only $3 to $5 lacks sales are made per month. To promote export Shinepukur took part in a number of International Fairs namely Ambiente 99-Franfurt Germany, New York Tabletop Show-99-USA, Consumer Goods Asia 99-Singapore and London Houseware Show-99-UK, SCL also participated in the “Dhaka International Trade Fair-99”, maintain relation with Bangladeshi embassy, appoint agents and inlaid with wave page. management as well as employees put extra care of exporting products. Premium price is offered internationally, usually 30% more than the domestic price. SCL also sales its product on credit internationally and charged for it.

 Exporting Countries of SCL:


The total commitment done by Foreign sales department is given below:

  International Fair



Export Share.

Shinepukur Ceramics Limited has achieved the lion share ceramic tableware export from Bangladesh. The statistical figure is given below in support of performance of Shinepukur Ceramics Limited:

60% during July 2000 to June 2001, 55% during July 2001 to June 2002 and 60% during July 2002 to June 2003.

Figure: 1


 Foreign Buyer Portfolio.

Shinepukur Ceramics Limited is having very enriched customer portfolio all around the world like Royal Doulton and Royal Worcester in the UK, Libbey in the USA and Richard Ginori and Tognana in the Italy. Leading Airlines like British Airways and Air Canada are also using Shinepukur Ceramics wares for their in flight catering services. Superior technology blended with Japanese elegance, Shinepukur is heralding high-tech tableware manufacturing in the world.

 IT Department

IT department of SCL act as a bridge between management team and factory operation. Although the department has decided to setup MIS system into the organization. The department has designed new software especially for accounting purpose named MRP 2000. To maintain liaison with the factory, a small section of IT has also been setup. The department is accomplished the following tasks:

i)                   Break-even analysis.

ii)                Compare the present production output with the last three months output.

iii)              If the output result is negative IT dept. try to find the reason behind it.

iv)              IT records flow of raw materials and inventories.

v)                 IT department also find lead-time and provide information to identify the amount of safety stock needed.

IT department of SCL is going to introduce Management Information System (MIS) to collect necessary information about market situation. By introducing MIS Shinepukur will able to forecast market, finding potential distribution channel, client wise sales, analyze overtime and so on.

Accounting & Finance Department

The accounting and finance department is conducted by the direct supervision of company’s MD. The department is also a GM, two deputy managers, some senior and junior executives to run its operation. As one of the busiest dept. of SCL accounting and finance department has to run the following activities:

  • Ø Record financial data.
  • Ø Classifying the data according to requirement.
  • Ø Maintain ledger.
  • Ø Prepare financial report according to company act.
  • Ø Arrange necessary funds for the organization. The sources of fund of SCL are debt & equity finances, generate revenue from local sales and export. SCL also taking machine lease partially.

Shinepukur has got tax holiday for its product porcelain and the process is going on for getting tax holiday on Bone china product.

Financial Partner of SCL

Þ Mitsubishi Trust & Banking Corporation, Tokyo, Japan.

Þ Industrial Promotion and Development Co. of Bangladesh Ltd.     (IPDS)

Þ Southeast Bank.

Þ Standard Chartered Bank.

Þ Sonali Bank.

Þ Prime Bank.

 Significant Accounting Policies and other Material Information

  1. Legal form of the Enterprise: The Shinepukur Ceramics Limited is a private Limited Company Incorporated Under the Company Act 1994.

 Nature of Business Activities: The company own and operates a ceramics factory at Sarabo, Gazipur, Bangladesh with a view to produce high quality porcelain and bone china tableware and to sale thereof in local and foreign market.

  1. Accounting Convention and Basis: Financial statements have been prepared under the historical cost convention.
  1. Components of financial Statement:                                                                                      Financial statements comprise of:

                            Balance Sheet

                           Cash Flow Statement

                            Notes to the Financial Statement.

Admin and Personnel Department.

Admin department is known as heart of the office. The department maintains relation with other department and act as mediator between other departments. Admin department provide office support, ensure transportation facilities, engaged in employees recruitment, giving position and filing necessary information about the employees, which is helpful for rewarding as well punishing.

  Production & Operation.

 The plant was commissioned on December 9, 1999 on 115,000 square meters of land at the Beximco Industrial Park at Gazipur, about 35 Kilometers north of Dhaka. the porcelain unit of company started its trial operation from January 1999 and run the unit went into commercial operation from April 1999. The company has also successfully completed the commissioning of Bone China plant in June 30, 1999. the company is presently introduced new bone china in its product line.

The factory is claimed to be most modern and new technology-based in the country the plant was designed to be both efficient and productive. Most raw materials are imported from Japan, China, UK, New Zealand, Germany, India etc. and the rest are obtained locally.

The factory is equipped with six Kilns and an automated cup line and a spray glazing line. The machinery and equipment have been erected and installed by Japanese engineers from TAKASAGO and MINO Company of Japan. The procedure of the production is streamlined for continuous material flow from the beginning to the end products. Raw materials is given to one and the finished products come out at the other. The factory has been designed for efficiency, productivity and profitability.

Marketing Mix

Marketing  mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. The components are:





The tools constitutes Shinepukur’s Marketing Mix. The following diagram shows 4Ps along with the corresponding 4Cs:


We can elaborate the Marketing Mix as follows:



Traditional Family Tableware.  Shinepukur Ceramics products are traditional and modern tableware.

  • Covers entire family requirement.
  • Shapes and design are classical.
  • Excellent shining colours.
  • Elegant looking.
  • Available in various colours.

  Some Variety of Shinepukur Products.






Shinepukur sets standard pricing for its products for all over Bangladesh and for international markets. However, products costing factors include:

  • Wage.
  • Material cost.
  • Factory overhead.
  • Direct labour wage.
  • Factory manager and supervisors’ indirect overhead.
  • Plant / machinery depreciation.
  • Salaries.
  • Gross margin.
  • Distribution cost.
  • Liquidating.


Distribution Network.  Shinepukur maintains a distribution strategy incorporating wide distribution network covering the country. Dhaka Display and Sales Centre is situated at 34 Kemal Ataturk Avenue, 1st Floor, Banani, Dhaka. Besides, Shinpukur has agencies and city stores at different areas.


Brand Image.  Shinepukur Ceramics Limited enjoys a great advantage in the tableware market that its brand (Shinepukur) has reached to the people as good quality ceramics. Shinepukur products cover total range of a family requirement. Consequently, it need not required very aggressive promotion because of the following reasons:

  • Brand image (Shinepukur Logo).
  • Goodwill.
  • No aggressive promotion by other competitors.
  • Successful store promotion.

 Brand Promotion

It is an important section of marketing department, involving mainly in promotional activities. In addition of promotional activities this section also arranged marketing research, design product (according to customer demand and innovation), develop product and decorate showroom.

  Display & Sales Center

SCL has also a display and sales center at Banani in Dhaka-1213. This sales center was established on the vision of direct sales as well as for promotional activities. The display center established in exclusive area to attract exclusive customer. Except Bone China no loose sales in made in sales center. Maximum retails price is offered to the final customer to avoid company’s own pricing conflict.


SCL has also a rented warehouse at Lalbagh in Dhaka. Warehouse is established to conduct indirect sales. Goods are stored into warehouse according to the distributors’ requirement. Supply the goods to the distributors by checking invoice. The local distributor that is the distributors of Dhaka City collects products by their own arrangement. But goods are supplied to the specific nodes by the arrangement of SCL for the distributors those who lived outside of Dhaka City. Within Dhaka City the delivering packet is cartoon made by paper, but out outside of Dhaka City wooden cases are being used.

 Prospects of Ceramics Business in Bangladesh.

Ceramics Industry: A Promising Economic Sector in Bangladesh.

Export of ceramics goods from Bangladesh, especially in the Middle Eastern countries, has been increasing steadily and it has given a boost to the country’s hopes for foreign exchange earnings by exploring new markets for its diversified exportable.
Though Bangladesh’s entry in ceramic export market is not that old but it had already earned a good name for its quality products with elegant getup and design.
There are four major companies -Monno Ceramics, Peoples Ceramics,          Bengal Fine Ceramics, Standard Ceramics and Shinepukur Ceramics– who are manufacturing quality products to meet the international standard and                have been exporting their goods for a long time.

Though the export earnings from ceramics sector is no match in comparison to the Ready Made Garments or leather sectors, but the sector is contributing to the country’s overall development by exploring new market even in                     Eastern Europe and expanding its export base for foreign. A silent revolution         is taking shape in the country’s ceramic sector in its thrive to attain quality              in production for its products by these ceramics companies.

Most significantly, all the existing companies are running their ventures depending on local workforce and market capital, but still they are dependent on others for some raw materials. Yet despite some limitations, the sector has every potential to grow and become a big foreign exchange earner for the country with its dazzling products in the era of globalisation which has exposed our products to unequal competition in world market. Hopefully ceramics industry would sustain this challenge of stiff competition and proceed forward with quality products in a very reasonable price range and bring good name for the country.

Inspired by increased overseas demand and local capacity expansion, Bangladeshi ceramic manufacturers eye an annual $100 million export earnings by 2008, a mammoth jump from the current yearly income of $30 million.

The export of tableware products has been witnessing over six percent yearly growth for the last ten years carving a significant niche in US and European markets.

With 56 percent accumulated export growth in the last ten years, exporters now hope to see a double-digit growth which will help the sector break $100 million margin by 2008.

As overseas demand is going up, local big players – Shinepukur, Monno, and Bengal Fine — now completely focus on export market, channeling over 80 percent output into international market.

Starting production in 1980s to feed the local consumers, ceramic tableware industry took a slow but steady progression to approach foreign market. The sector exported ceramic goods worth $30 million in last fiscal and targeted $45 million in current fiscal year.

Bangladesh Ceramicwares Manufacturers Association is very optimistic about this industry’s prospect of fetching over an annual $100 million by 2008.

But in spite of all export prospects, a persistent gas crisis in the last few months seems to deprive the sector of a smooth rise.

Bangladesh ceramic industry, which produces tableware, tiles and sanitary ware, has been witnessing a steady growth in the last few years due to usage of cheap gas, which resulted in low production cost, says industry sources. This has prompted many foreign buyers to make increased orders to Bangladesh.

There are over a dozen of ceramic factories in Bangladesh, which produce over 40,000 tonne ceramic products a year. Shinepukur, Monno, Bengal Fine, Standard, Peoples and National Ceramic are engaged in tableware while RAK, Fu Wang, China-Bangla and Mir are engaged in tiles and sanitary ware.

The companies have invested over Tk 500 crore and more investments are in the offing with many companies planning to produce all the three ceramic categories.

Ceramic products including stone tableware, porcelain tableware, bone China tableware, tiles and sanitaryware have a $20 billion world market of which Bangladesh’s share is only 0.17 percent.

 Prospects of Shinepukur Ceramics.

The Shinepukur Ceramics, a sister concern of the Beximco Group, is a leading ceramic tableware exporter of Bangladesh having two state-of-the-art units for producing porcelain and bone china tableware.

The units are equipped with modern quality control laboratory facilities, decal plant, carton-packaging plant, modeling unit, and have gas-based power generation capacity.

The porcelain unit is capable of producing 60,000 pieces a day, while the capacity of the bone china unit is 10,000 pieces a day.

An ISO 9001/2000 certified company, Shinepukur Ceramics was awarded the National Export Trophy (Gold) in recognition of its export performance in FY 2000-01.

Shinepukur Ceramics Ltd. has clocked a whopping 21 per cent growth in exports in FY 2004-05 compared to the corresponding period of the previous year.

Insistence on good quality of products and use of standard raw materials helped Shinepukur Ceramics achieve success. The quality of Shinepukur products including dinner, tea, cake and fruit sets is far superior to India and China’s. New designs and shapes are being developed in both the porcelain and bone China units to meet the demand of buyers abroad.

Shinepukur meets all customers’ needs by offering leading edge technology in exclusive production. The company is committed to constant           development and improvement in service, a                                      fundamental commitment the reputation Shinepukur built on.
Continual upgrading of equipment and process ensure this                  reputation. Providing exceptional standard, customer service and                  quality of product to accelerate the reputation.
Shinepukur does not believe in mass production, repetition of same designs over the years. It innovates new designs & adds new                                dimension to the ceramic production as a whole.

An enthusiastic and well-spirited team of people is the life force of Shinepukur. People working as interdependent, support unit of ideas, skills, knowledge of technology, laborious, new imagination, craftsman, indigenous technology – all contributing in creation of even a single piece of Shinepukur Porcelain ware.

Considering the future market, Shinepukur Ceramics Limited is planning to look into the following sides of marketing:

(1)              Domestic Market;

(2)              International Market;

(3)               Product Development.

 Domestic Market:  Shinepukur Ceramics Limited is planning to improve the condition of domestic market. In that, Shinepukur is going to develop the following sectors:

(a)       Distribution Channel;

(b)       Promotion.

(a)       Distribution Channel.  Distribution channel is set of interdependent organizations involved in the process of making a product or service available for use or consumption by consumer or business user. Shinepukur Ceramics Limited plans to widen the distribution channel through creating and spreading marketing intermediaries throughout the country to improve the domestic market.

Shinepukur Ceramics Limited will set up more display and sales centres in Dhaka city. At the same time, it will also set up sales centres in every greater district to cope up with the prospective market. Shinepukur Ceramics Limited is committed to employ a smart distribution channel as the channel becomes most successful when each member is assigned the jobs it can do the best.

Use of VMS.    Vertical Marketing System (VMS) is a recent development which has emerged to challenge conventional marketing channels. VMS consists of producers, wholesalers, and retailers acting as a unified system. To achieve economics through size, bargaining power and elimination of duplicated service, Shinepukur Ceramics Limited will use the VMS. In some cases, it may also consider the hybrid marketing system.

(b)       Promotion.    Shinepukur Ceramics Limited plans to give the attention to the promotion of its brand as future plan. Shinepukur Ceramics Limited does not require very aggressive promotion because of the following reasons:

  • Brand image (Shinepukur Logo).
  • Goodwill.
  • No aggressive promotion by other competitors.
  • Successful store promotion.

Considering the present competitive market and facilitating countrywide distribution of the brand, the company now decides to set up a strong brand promotion. For the implementation of the said plan, the company is going to launch a Brand Promotion Section under marketing department. The organogram and projected required human resources for the Brand Promotion Section may be presented as follows:


  • Total 13 employees are required to launch the new brand promotion department. It is impossible to hire all the employees within six months time. For this, company decides to cover this manpower from existing employees of marketing department. However, some of the employees for the project will be recruited giving importance on their related qualification. Shinepukur Ceramics Limited is planning to recruit MBA holders with specialized in marketing area for the managerial posts. Experienced candidates will be selected with priority basis in this regard. Like most large organization and due to the shortage of timeframe Shinepukur Ceramics Limited will also attempt to develop its own employees for the position beyond the lowest level.

Ad Media. To make the brand promotion activities a successful, Shinepukur Ceramics Limited will focus on the following ad media:


 Posters, Danglers, Buntings, Billboards etc.

  • Newspapers;
  • Magazines.


  • Televisions;
  • Satellite;
  • Radio;
  • Websites.

Part of Ad.

  • Slogan–main aspect (must be attractive)
  • Body text– message (must be clear)
  • Elastration – (must help understanding)
  • Logo (Shinepukur)– should establish reputation

Focus of Ad  Creating new customer and retaining the old is the focus ad campaign.

Promotional Expense Per Media.


 International Market.    Shinepukur Ceramics Limited is an export-oriented business organization. So, the prospects of Shinepukur is obviously depends of international market. Management of Shinepukur Ceramics Limited, therefore, considers the international market with great importance  Since its commercial production in 1999, the Shinepukur Ceramics, an export-oriented company, has so far exported its products to the UK, US, Spain, Italy, Australia, New Zealand, Norway, Sweden, Russia, the UAE, Denmark, Germany, Turkey and India. Prospective market in USA is prime target for Shinepukur. Besides, some oriental markets like Thailand and Malaysia have the potentiality. But Shinepukur Ceramics Limited is considering to improve the market with India.  Local ceramic products can carve a good niche in the neighbouring market provided India lifts high tariff on Bangladeshi products.
India has imposed 40 per cent tariff on Bangladeshi ceramic products and local producers can easily penetrate into Indian market if high tariff is withdrawn.
The huge trade deficit (some 1800 million dollars) between the two neighbouring countries can also be reduced provided India scraps high duties on Bangladeshi products.
Product Development.  Shinepukur Ceramics Limited is going to improvise the product quality and entry of new products for its prospective market. Shinepukur eyes to develop the following new quality products:

>     Shinepukur Nouveau China;

  • Shinepukur Imperial Porcelain;
  •  Doel Super Fine Porcelain;
  • Shinepukur Ivory China;

Besides, Shinepukur is planning to initiate the some special products considering those will attract the future market. These products will be categorized as “Home Ceramics”. Those products may be classified as follows:

  • Ceramic Flower Pot;
  • Ceramic Furniture;
  • Ceramic Pot;
  • Ceramic Lamp;
  • Ceramic Ware;
  • Ceramic Craft;
  • Ceramic Candle;
  • Ceramic Gift;
  • Ceramic Sculpture;
  • Decorative Ceramic;
  • Ceramic Milk Pot;
  • Ceramic Sugar Pot;
  • Ceramic Cup and Mug;
  • Ceramic Puff Boxes;
  • Porcelain Musical Jewelry Box;
  • Ceramic Dolls;
  • Ceramic Lamp Holder;
  • Porcelain Bathroom Sets (including lotion bottle, tumbler, soap dish and toothbrush holder as a set.)


Before accomplishing this report, I have carried out a survey on some respondents. My questionnaire for the survey contain some questions on what are retailers and wholesalers perception about the product’s Brand, Image, Quality, Company Performance and Convenience. The survey had a sample size of seventy (retailer) of my target area–Dhaka city.

Due to big sample size, I have decided to tell my sample unit by judgmental sampling method; by judgmental sampling method precise respondents could be found.

Multiple answers to certain questions were allowed in order to get the true picture of remaining situation and to obtain full effectiveness of the survey.

The survey results are presented with the help of bar and pie charts with the required analysis in the following.

Questionnaire for Wholesalers and Retailers.

1.         Age:

I had different age groups in my questionnaire for my respondents. 23% respondents belong to 18–30 years old. In 30–40 years old age range, I have got 21%. 9% and 2% respondents belong to 40–50 years and over 51 years respectively.


Figure: 2


Questionnaire at a Glance:

  1. How many brands of ceramics products are you selling in your shop?
  2. What types of customers normally visit your shop?
  3.  Which brand product is selling best in the ceramics market?
  4. Why the customers are choosing this brand?
  5. Why are you interested to sell the products of this brand?
  6. What is your brand-wise sales position?
  7. What is your investment amount on ceramics products?
  8. Are a retailer or wholesaler?
  9. Do you face any problem in this market?

10. What is your rating on uses of Shinepukur ceramics products?

Analysis of Views of Respondents:

Question 1.    How many brands of ceramics products are you selling in your shop?


Under this I have seen that there are different brands. I have got 49% retailers and wholesalers belong to 1–2 brands, 42% sell 3–4 brands, 9% belong to 5–6 brands.

Figure: 3



Here I have seen that most of the retailers and wholesalers are selling more than one brands. So, there is a lack of market specification.

Question 2.    What types of customers normally visit your shop?




 According to the findings of this question, I see that the major part of the market is belonged to upper middle class and lower middle class people and 22% belong to upper class people. So the marketers of ceramics should concentrate on middle class and upper class society.


Question 3.    Which brand product is selling best in the ceramics market?


Figure: 5



According to the sales, we can see that the maximum sales rate is possessed by Shinepukur Ceramics.  Artisan Ceramics and Monno Ceramics keep the next positions respectively. So sales volume of  our brand (Shinepukur Ceramics) is in the top. Here, we have got a point of big opportunity improve the market share and a well set market position of Shinepukur ceramics.

Question 4.    Why the customers are choosing this brand?





Findings:       This question was intended to know the consumers’ awareness level. Why the customers are buying this ceramics product? At this point, 20% of our respondents buy for its design, 15% for reasonable price, 30% for superior quality, 3 % respondents buy for the color of the goods and 32% customers buy for the shining of the product. So, the company should know what attributes are chosen by the customers and should give emphasis on the particular points.

 Question 5.    Why are you interested to sell the products of this brand?


Findings:       We have seen that most of the retailers and wholesalers sell the product for their own profit. If the company gives extra sales promotion to their retailers and wholesalers, they will be motivated; they will try to sell more and more products.

 Question 6.    What is your brand-wise sales position?




Findings:  In response to this question, we have seen that Shinepukur Ceramics has 34% sales in the market. Although it is good but not enough for a company that want to be market leader in the ceramics markets. So, the company should increase the brand wise sales promotion in the market.

Question 7.   What is your investment amount on ceramics products?





Findings: In response to this question, we have seen that 37% of retailer and wholesalers have invested their money in Shinepukur and 27% retailers and wholesalers have invested in Monno Ceramics. So, we that Monno Ceramics is the main competitor of Shinepukur Ceramics. To improve the percentage of investment in Shinepukur Ceramics the company has to give more promotion to their retailers and wholesalers.

 Question 8.    Are you retailer or wholesaler?


Figure: 10


Findings:  In response to this question, we have seen that 45% of our respondents are retailers and 35% of our target respondents are wholesalers and rest of the respondents are both retailers and wholesalers. So the company should eye on the retailers first and then to wholesalers.

Question 9.   Do you face any problem in this market?



Findings:  In response to this question, we have seen that 45% of our respondents expressed that they have some problems. The problems are replacement problems, distribution problems, scarcity of products etc. So, the company should take appropriate actions to minimize the problems.

Question 10.   What is your rating on uses of Shinepukur ceramics products?





Findings: In response to this question, we have seen that 40% of our respondents expressed very good response to theuses of Shinepukur Ceramics. 39% respondents showed good ratings while 16% and 5% respondents expressed their medium and negative responses respectively. We see that uses ratings is better but yet there is opportunity to improve the ratings. So, the company should take appropriate steps to enhance the uses rates.


SWOT means an overall evaluation of company’s strength, weakness, opportunities and threats. Strength and weakness are related to internal environment analysis. Opportunities and threats are related to external environmental analysis. Each business needs to evaluate its internal strength and weakness. SWOT may be described as follows:

S= Strength (Favorable internal factors of the company)

 W= Weakness (Unfavorable internal factor of the company)

 O= Opportunities (Favorable external factor of the company)

 T= Threats (Unfavorable external factors of the company)

Strength and Weakness Analysis:

The strength and weakness are related to internal environmental analysis. Each business needs to evaluate its internal strengths and weaknesses periodically. The company can use the checklist for measuring strengths and weaknesses. Management or an outside consultant reviews the business’ marketing, financial, manufacturing and organizational competencies.

By SWOT analysis, we can get a complete scenario of Shinepukur Ceramics and identify factors that influence the performance of the business and choice of appropriate strategies. The SWOT analysis is the foundation of the strategic planning process. SWOT analysis includes an examination of both the internal factors (to identify strengths and weaknesses) and external factors (to identify opportunities and threats). The results of the SWOT analysis of Shinepukur Ceramics Limited that have drawn by the findings of the survey and personal observation are depicted below:




 After studying the total scenario of Shinepukur Ceramics Limited, the following recommendations may be offered for improving present condition of the market as well as its prospects:

  • Shinepukur Ceramics should inform its consumers and customers about the new improvement of its products;
  • The company can encourage its customers (retailers) by providing different types of trade offers, complementary samples, gift offerings etc;
  • Shinepukur Ceramics should confirm the availability of its products for more convenience of the end users;
  • Shinepukur Ceramics should cover as much outlet it can ensuring the availability of the brands;
  • Shinepukur Ceramics should make aware all about its brand to the consumers as well as customers for creating image of brand assistance;
  • Shinepukur Ceramics should improve its merchandising activities to get an improved market shares as it has enough scope to increase the same;
  • The can increase its advertising efforts. Billboard may be the best way in advertising of its products;
  • Shinepukur Ceramics can arrange cultural programs like–verities shows, folk concerts etc under its brand to improve brand image in the mind of people;
  • Shinepukur Ceramics should increase the annual budget for merchandising expenses;
  • To increase company image, brand image and for social responsibility, Shinepukur Ceramics can do some social works like–tree plantation, blood donation, vaccination programs etc.

 CHAPTER: 7 Conclusion.

The desirable qualities of the tableware – beauty of design, excellence in making and affordable price – are rooted with the Beximco’s mission and commitment. The tableware is made to the most exact standards to please the most apprehensive customers. The quality control supervisors at every stage of production ensure that all items meet the most critical standards in the world. Giving dignity and distinction to the users, Shinepukur tableware becomes centerpiece in any stylish home. It blends together the outstanding technology and timeless craftsmanship to catapult Bangladesh into the new millennium.


  1. Kotler Philip Gray, Armstrong, Principle of Marketing, 7th edition, Prentice Hall India Private Limited, 1998.

 J. Luck David, S. Rubin Ronald, Marketing Research, 7th edition, Prentice Hall India Private Limited, 1999.

  1. Kotler Philip, Marketing Management, The Millennium Edition, Prentice Hall India Private Limited, 1998.