Integra Leasing
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1. EXECUTIVE SUMMARY
ILFC started its commercial operation in Bangladesh in the beginning of 2005 with special focus on leasing and financial services. Even though in the beginning the company was perceived more as an organization catering to personal finance it is changing its structure of business by trying to a multiproduct financial institution with significant contribution in the corporate sector.
The company plans on diversifying its services and give better service to its customers. At the same time the company is looking for alternate sources of credit so that it can cater to a large number of clients and also reduce its cost of financing.
Being just 1 year old ILFC still lacks in credibility and company image and therefore in the current year a lot of focus will be put on building company image.
Like all professionally managed, growth oriented financial institutions, a company tries to find out where it is and where it wishes to go in the near future. In other words, a Vision is required to attain its corporate goals and objectives. And to turn the vision into reality Business and Marketing Strategies need to be formulated. A marketing plan consists of the economic, industry and competitor analysis, action plan preparation and development and implementation of activities. That is why ILFC understands the need for a comprehensive marketing plan, which will allow the organization to move
2. CURRENT MARKET SITUATION
We possess good information about our market and also our prized and loyal clients/customers. We will leverage this information to better understand who we serve, their specific needs, and how we can better communicate with them.
2.1 MARKET DESCRIPTION
ILFCs market consists of big variety of clients starting from big industrialists requiring project financing worth over 10 million taka and at the same time small and medium enterprises who need short term loan of about 1 million taka. In short we would be correct to say that the market is immense.
However we have identified 3 major markets and have studied each to understand which one we should emphasize on.
High end client;
Low-end client;
Growth oriented clients
High-End Clients
Large local conglomerates and multinational companies fall under this category. These clients are highly demanding and command a very low rate of interest. They have immense resources and normally strike a hard bargain for their financial requirements.
At this stage it would be very difficult for ILFC to penetrate this sector.
Low-End Market
Small business firms fall under this category. Basically these are proprietorship concerns. As financing this typing of cliental base is very risky, we should be very selective in financing these types of clients.
Growth oriented Clients
Medium sized manufacturing companies or different types service providers fall under this category. These clients are hungry for growth, highly innovative in their growth agenda and have developed a certain degree of professional skill. According to BCG (Boston Consulting Group) Model they fall under “Star” category. These types of companies require financing very frequently and generally they do not bargain with rate. We could nurture these companies through proper patronization. These companies are beneficial for us for the following reasons:
Higher profit;
Continuous financing opportunity;
Proper security arrangements;
SMEs in Bangladesh would fall in the category of Tk 100 million in terms of assets. It is in this category that ILFC would have to look for its clients more so because more than 70% of the total business houses in Bangladesh would fall in this category.
Moreover through our research we have identified some sectors high growth potential. The findings have been given in the next section.
2.2 GROWTH ORIENTED SECTORS
In every economy, buoyancy in some sectors is more pronounced than other sectors. Timely identification of these sectors would give assured returns. Among the emerging sectors are the following:
Agrobased industry
Electronic and household durables
Frozen Foods
Leather industry
Light engineering
Pharmaceuticals
Real estate
Textile & Garments
Transport
Agro Based Industries
Bangladesh has the basic attributes for successful agro based industries. Increased cultivation of vegetables, spices and tropical fruits now grown in Bangladesh could supply raw materials to local agro processing industries for both domestic and export markets. Progressive agricultural practices, improved marketing techniques and modern processing facilities would enable the agro processing industry to improve its quality and expand production levels significantly. Comparatively indigenous technology and low investment have made such ventures highly profitable.
Electronics & House Hold Durables
Bangladeshs experience in basic electronics spans over two decades. In recent years, European and Asian electronic firms have established technical collaboration with their Bangladeshi counterparts to produce some electronic goods at competitive prices. This has tremendous potentiality for expansion. The size of the middle class is on rise in Bangladesh and consequently demands for household durables