STRATEGIC MANAGEMENT

MBA 550
SECTION-1

Prepared By:
Azmina Panjwani
ID # 1035012

Prepared for:
DR. SHIBLY NOMAN KHAN

Submission date:

16TH October 2011

Table of Contents
1.0 INTRODUCTION...............................................................................................................................2
2.0 COMPANY PROFILE:.......................................................................................................................3
3.0 PRODUCT LINE:..................................................................................Error! Bookmark not defined.
4.0 MANAGEMENT OVERVIEW:............................................................Error! Bookmark not defined.
5.0 STRATEGIC ANALYSIS:..................................................................................................................7
5.1 Demographic Environment:............................................................................................................7
5.2 Economic Environment:..................................................................................................................7
5.3 Natural Environment:.....................................................................................................................7
5.4 Political-Legal Environment:..........................................................................................................7
5.5 Technological Environment:...........................................................................................................7
5.6 Social Cultural Environment:.........................................................................................................7
6.0 BRANDING STRATEGY:..................................................................................................................8
6.1 Line Extension:................................................................................................................................8
6.2 Brand Extension:.............................................................................................................................8
6.3 Success in branding strategy:.........................................................................................................8
7.0 STAGES OF PRODUCT LIFE CYCLE FOR ISPAHANI TEA & CHIPS :..................................9
8.0 LESSON I HAVE LEARNED.............................................................................................................9
9.0 CONCLUSION:.................................................................................................................................10

1.0 INTRODUCTION
M. M. Ispahani ltd started their business back in 1920 when the country was under British rule.
After 1947 the company set up its head office in Khulna and corporate office in Dhaka. The
Ispahani Group is a pioneer in many fields and remains one of the most successful and respected
business houses in Bangladesh. Through its tea, textile, foods, jute, property, poultry and
shipping divisions, the Group employs approximately 10,000 people. Equipped with the most
modern machinery, its food products are hygienically weighed, packed and sealed in a fully
automated process which is supervised by a team of experts. The company is well known in our
country for its Tea business and even today the company earns it major portion of its profit from
Tea business. Besides selling tea the company also sells other consumer goods such as chips,
biscuits, chocolates chanachur etc.

Different companies under this group are:

Tea gardens

Tea trades

Cotton and Textiles

Jute

Shipping

Real Estate

Food

Poultry

Travel

Internet

Energy

2.0 COMPANY PROFILE

Basic Information
Company Name:
Business Type:
Product/Service
(We Sell):

ISPAHANI COMPANY
Trading Company, Distributor/Wholesaler
Chips,Potato Crackers,Fried Green Peas,Fried Dal,Fried
Chanachur/Bombay Mix

Product/Service
(We Buy):

Edible Palm Oil,Flavour,Chocolate,Lentils,Corn

Starch,Potato Starch,Tapioca Starch,Cooking Oils,Frying
Oils

Company Website URL:

http://www.ispahanibd.com

Ownership & Capital

Year Established:

1947

Legal Representative/Business Owner:

Mr. Ali Ispahani

Address:

Ispahani Foods Limited, Ispahani Building, Sk.

Mujib Road, Agrabad C/A, Chittagong-4100.
Tel : +880-31-716153-6 (PABX)
Ispahani Foods Limited, Ispahani Building, 14/15,
Motijheel Commercial Area, Dhaka-1000.
Tel :+ 880-02-9555192

Country/Region:

Bangladesh
Telephone:

880-31-716153

Trade & Market

North America
Western Europe

Main Markets:

Total Annual Sales Volume: US$50 Million - US$100 Million

3.0 PRODUCT LINE

Its product line includes Tea, Chips, Potato Crackers, Fried Green Peas, Fried Dal, Fried
Chanachur/Bombay Mix.

It specializes in Tea products. It offers variety of flavors such as Ispahani Tea-Mazedaar SpecialThree Mix,Ispahani Tea-Flowery Dust-Danedaar-Rani,Finjaan Royal Tea,Darjeeling Tea-Nilgiri
Tea,Assam Tea-SpecialiTea,Chai Nilgiri-Chai Darjeeling-Chai Assam,Chai Green,Black TeaGreen

Tea-White

Tea-,White

Tea,Pink

Garam,Chinese Tea and many more.

Tea,Yellow

Tea,Green

Tea,Oolong

Tea,Chai

4.0 MANAGEMENT OVERVIEW

The Ispahanis have been involved in business in South Asia since 1820. Mirza Mohammed
Ispahani established the Calcutta office of M.M. Ispahani & Sons in 1900. Mirza Mohammed
Ispahani's eldest son, Mirza Ahmed Ispahani, joined the partnership in 1918 and, with his
younger brothers, Mirza Abol Hassan Ispahani and Mirza Mahmood Ispahani, established the
private limited company, M.M. Ispahani Limited, in 1934. In 1947 the corporate Head Office
was moved to Chittagong, where it stands today. With corporate offices in Chittagong, Dhaka
and Khulna and, through its tea, textile, jute, property, poultry and shipping divisions, the Group
employs approximately 10,000 people.

Business Owner:

Director and Member of the Board:

General Manager:

Mirza Ali Behrouze Ispahani

Iraj Ispahani

Mahbubul Enam

Ispahani- Growing Tradition, using the motto, M.M.Ispahani Ltd., a renowned company
consists of different business enterprise engaged in diverse business activities with quality

product. Tea is the driving product of Ispahani family. Beside this, Ispahani has stepped into
the textile, energy, food, shipping, real estate, and jute and engineering industry.
The policy maker of the Ispahani feel that the company can make more money and sustain its
marketing department profitably on the goodwill its has gained in the market. This believe is sub
stained over the time and now it can be generally said that the goodwill is probably its single
most important assets.
The Ispahani Group is a pioneer in many fields and remains one of the most successful and
respected business houses in Bangladesh. It is the largest tea trading company in the country and
dominates the domestic tea market, capturing approximately 50% of the national branded tea
market and 80% of the branded tea-bag market. Ispahani Tea is renowned all over Bangladesh
and its best selling brands such as Mirzapore Best Leaf and Mirzapore Double Chamber Tea
Bags are household names. The company has an unrivalled distribution network of over 300
sales centres under 12 zonal offices in Chittagong, Dhaka, Dhaka North, Bogra, Barisal, Comilla,
Khulna, Kushtia, Mymensingh, Rangpur, Dinajpur and Sylhet. It also owns four of the finest tea
gardens in Bangladesh: Ghazipore, Mirzapore, Zarreen and Neptune, all of which are equipped
with state-of-the-art tea manufacturing machinery.
Recently in this shaken agro-based economy of Bangladesh, to boost the agricultural sector,
Ispahani has come up with its new product- Ispahani seeds with a view to serve the nation. In a
way, Ispahani would help to build food sovereignty. Besides these, Ispahanis Market research
division always devoted to introduce new business sector to open up the employment
opportunity. Inflationary pressure and at the same time unemployment is going ahead to the path
of stagflation. So, this type of endeavor of Ispahani to make the employment opportunity is
worthy.
Although Ispahani has footstep on several industry, Tea is the driving product of Ispahani
family Ispahani tea is a household name across the Bangladesh. The family has been involved in
the business since 183 years. Now its is almost a hundred corer business. Ispahani is diversified
into tea production. It owns four finest tea garden in the country- Mirzapur, Gazipur, Zareen and
Neptune Tea Estates Presently Ispahani tea is a domestic leader. Mirzapore Best Leaf is the
leading brands for household market.

Corporate and Social responsibility form a large part of the Ispahani philosophy. Throughout our
history we have endeavoured to support and advance worthwhile causes. We have established
schools and colleges in Bangladesh as well as the renowned Islamia Eye Hospital. The latter is a
centre of excellence for providing modern, efficient and cost-effective eye care. With a specialist
line up of up to 40 doctors, 35 surgeons, trained nurses, paramedics and other staff, Islamia Eye
Hospital has been looking after the eye care needs of thousands of Bangladeshis since its
inception in 1960.
Furthermore, the Group sponsors various cricket, football, golf and tennis tournaments as well as
the National Cricket League.
Today, after decades of business in South Asia, the Ispahani Group is still dedicated to providing
high quality goods and services as well as having a positive impact on the community at large.

5.0 STRATEGIC ANALYSIS

5. 1 Demographic Environment:
Company current capacity to meet the demand is more than enough according to their internal
source, so if there is any scope for demographic change it wont be any problem for the
company.

5. 2 Economic Environment:
Economic condition of our country is not good, income inequality is increasing day by day and
the purchasing power difference between poor and rich is very big. Considering this scenario the
company launched different products for different purchasing people. Their BLENDERS
CHOICE tea pack is only for the rich people. The company does not expect any major economic
changes recently or in near future.

5. 3 Natural Environment:
Now a days environment pollution is a buzz word. People from all walks of life has raised their
voice against the pollution done by the corporate sectors, these awareness has made the company
sincere about manufacturing product. The company does not expect to face any natural changes
within the next few years.

5. 4 Political-Legal Environment:
Government in our country recently has become strict about pollution and forcing the companies
to take necessary steps to avoid polluting the environment, and government is also making laws
so that companies become legally bounded to take necessary steps to avoid pollution. If the law
is passed and enforced the company will also have to take necessary steps to avoid pollution if
they are making any or while setting up factories in near future.

5. 5 Technological Environment:
The Company does not expect to face any major technological changes.

5. 6 Social Cultural Environment:

There is no chance of social cultural change for the company to encounter.

6.0 BRANDING STRATEGY:

Branding is a major issue in product strategy. Well-known brands command a price premium.
Japanese companies such as Sony and Toyota have built a huge brand loyal market. At the same
time developing a branded product requires a great deal of long term investment, especially for
advertising, promotion and packaging.
M.M.Ispahani is currently using LINE EXTENSION and BRAND EXTENSION strategy for
their products.

6.1 Line Extension:

Existing brand name extended to new size or flavors in the existing product category.

6.2 Brand Extension:

Brand names extended to new product categories.

The company uses the line extension strategy for its tea because of its different sizes and flavors, for
example Ispahani Blenders choice, Ispahani

Mirzopre 500gm, 200gm and 50gm packs and brand

extension strategy for its new product categories such as Ispahani chips, Ispahani chanachur, Ispahani
fried Dal etc.

6.3 Success in branding strategy:

The company claims to be 100% successful in using line extension and brand extension
strategy, because the brand name is so much popular and well established that they hardly do any
TV advertising for their tea and very little for other product categories. Using their brand name
they have able to save huge amount of money which helps them to invest in product
development. Even when the company launches new product they do not go for separate brand
name rather they attaches their own corporate name with the product.

7.0 STAGES OF PRODUCT LIFE CYCLE FOR ISPAHANI

TEA & CHIPS

Ispahani Tea is in between growth and maturity stage, growth stage for its Blenders Choice and
in the Maturity stage for its Mirzapore tea bags as it is the market leader for hot tea in the
Bangladesh market. For its chips and chanachur it is in between introduction and growth stage as
it is fighting for position with the largest competitor Bombay Sweets.

8. LESSONS I HAVE LEARNED:

Isphani tea at maturity stage:
1. At the maturity stage costs are lowered as a result of production volumes increasing and
experience curve effects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliferation of competing products
5. brand differentiation and feature diversification is emphasized to maintain or increase
market share
6. Industrial profits go down
And for its chips at growth stage:
1. costs are reduced due to economies of scale
2. sales volume increases significant
3. profitability begins to rise
4. public awareness increases
5. competition begins to increase with a few new players in establishing market
6. increased competition leads to price decreases

9. CONCLUSION:
M.M.Ispahani Ltd is one of the oldest and largest private companies operating in our country;
they started their business with tea and earned very good reputation which still they are enjoying
in the market. They have extended their business in many other sectors such as jute, power
plants, shipping, Agro business, housing etc.