OTOBI , Nitun Kundu

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OTOBI , Nitun Kundu

  1. 1. A report on SME pioneer Nitya Gopal Kundu (Nitun Kundu) Born: December 3, 1935, Dinajpur. Nitun Kundu graduated from Dhaka Art College (now the Institute of Fine Arts) in 1959. Nitun Kundu was a Famous artist, sculptor and entrepreneur, who was known for bringing new trends in abstract and realistic art to the Bangladeshi arts scene. He was also well known for his furniture designs, pioneering the use of integrating wood with metal. Who started business on a small workshop in a tin-shed at Topkhana Road in February 1977 and named it “Art in Craft”. After 35 year it stands to OTOBI and controls about 80% of the country's branded furniture market. Report On SME Pioneer Nitun Kundu Page 1
  2. 2. Full name: Nitya Gopal Kundu (Nitun Kundu) Born: December 3, 1935 in Dinajpur. He was the fourth among seven children. His parents were Gnanendranath Kundu and Binapani Kundu. He was married to Phalguni Kundu and had a daughter Amity and son Animesh. Education and early career Nitun Kundu graduated from Dhaka Art College (now the Institute of Fine Arts) in 1959. Nitun Kundu was a Famous artist, sculptor and entrepreneur, who was known for bringing new trends in abstract and realistic art to the Bangladeshi arts scene. He was also well known for his furniture designs, pioneering the use of integrating wood with metal. During the Bangladesh Liberation War, Kundu worked with the celebrated artist Quamrul Hassan at the public relations department of the Bangladesh Government-in-Exile at Mujibnagar Famous works  Sada Jagrata Banglar Muktibahini (poster)  Amra Sabai Bangali (poster)  Banglar Bir Muktijoddha (poster)  Shabash Bangladesh (sculpture at Rajshahi University)  SAARC Fountain at Karwan Bazar, Dhaka  Fountain, Dhaka High Court, Dhaka  Sampan, Shah Amanat International Airport, Chittagong  Kadam Fountain, National Press Club, Dhaka Report On SME Pioneer Nitun Kundu Page 2
  3. 3. Awards and honors  Ekushey Padak  Daily Star-DHL Best Entrepreneur Award  National Film Award  President Gold Cup  Notun Kuri Award (Bangladesh Television) Kundu was well known among his friends and family members for being a perfectionist and also working for hours at a stretch. “He was always drawing or painting or coming up with new designs,” says Amity. He would stay up for several nights together to complete his designs and paintings. In spite of being the chairperson of a huge establishment, Kundu would spend plenty of time in his world of art and colour. “My father's management team was built in such a manner that it would sometimes run for days without him coming to office,” says Amity. “For instance, while constructing 'Shabash Bangladesh', at one point he spent nights literally under the sky trying to perfect his creation. In between all that, he would keep in touch with his team in Dhaka and work over the phone.” Report On SME Pioneer Nitun Kundu Page 3
  4. 4. Nitun Kundu The Furniture pioneer In the 1975, following a brief stint at Bitopi advertising agency, Nitun Kundu established his own company, a furniture store featuring his own designs, OTOBI. Within a relatively short period, OTOBI became the most prominent Bangladeshi furniture brand, emphasizing the new nation's pride in its refund cultural identity after independence. OTOBI quickly grew to become one of Bangladesh's top exported brands, with sales primarily to India and the South East Asian countries. It is said that Otobi was as much his child as his children, Amity and Animesh. Interestingly, all of them have the first alphabet of Bangla language as the initial letter of their respective names.. Introduction on OTOBI Born in 1935 at Dinajpur, From humble beginnings in the corporate furniture realm to the spectacular escalation into the lifestyle giant that it is now, OTOBI's story of success spans merely 35 years. Providing holistic space solutions catering to all spheres of daily life, OTOBI is well on its way to rising to the ranks of Asia's top three brands by 2020. With creative reinvention pulsating through the entire organization, OTOBI has set out to revolutionize the entire retail scenario starting off with Bangladesh. In 1974 he conceived the idea of embarking into commercial venture and started manufacturing decorative items at his residence and later at Shukrabad, in addition to normal activities of painting and sculpture. The name of this mini workshop was “The Designers”, employing only 4 persons. A recipient of National Award for painting in 1965 and Bangabandhu Award in 1992, Mr. Nitun Kundu set up a small workshop in a tin-shed at Topkhana Road in February 1977 and named it “Art in Craft”. Here, in addition to coat pin, cup, crest, trophy etc. he started manufacturing decorative items, table lamp, and various types of metal furniture. In 1978 he opened a show room at 230, New Elephant Road, Dhaka and gradually started marketing all kinds of metal furniture in a professional manner. Having widely travelled all over the East and the West, Mr. Nitun Kundu gained sufficient confidence and experience by 1984, when he started commercial production under the name and brand OTOBI. A Report On SME Pioneer Nitun Kundu Page 4
  5. 5. great deal of emphasis was given to meet the need of customers and OTOBI products started gaining popularity. Mr. Nitun Kundu gradually engaged Industrial Designers and Engineers. Special efforts were made to build up a core team of highly skilled craftsmen. All kinds of metal furniture were being manufactured at Mirpur Factory and marketed through the Show room at Elephant Road by 1988. Because of its superior quality, OTOBI products continued to gain popularity. Mr. Nitun Kundu developed a wide range of furniture for office, hospitals, residence and slowly created a much wider popularity for OTOBI products. Following training by AOTS in Japan, Mr. Nitun Kundu improved the quality of OTOBI products as well as sales ad marketing methods so successfully that by 1993 he constructed a four storied building at Dilkusha C/A and opened a display Centre there. The market demand for OTOBI products continued to rise and company felt the need for expanding its production capacities. Therefore, Mr. Nitun Kundu set up another factory at Shyampur, Dhaka, covering land space of 64000 sq. ft., which went into experimental production in November 1994. The factory is now fully operational with latest machinery to manufacture a wide range of most sophisticated furniture so that OTOBI can compete in the international market. The factory has now expanded to 3,00,000 sq. ft. Due to the user preference of wooden furniture, OTOBI decided to give a similar feel to their customers and started to produce furniture from Laminated Board from May, 1999. This wood particleboard has a wood like surface and can be designed to look exactly like wooden furniture. These products of OTOBI achieved tremendous market acceptance and later Mr. Nitun Kundu created it to be ‘Knock-down’ format to save storage space and give carrying convenience to customer. Report On SME Pioneer Nitun Kundu Page 5
  6. 6. The special feature of OTOBI products is that it takes extensive care to combine functional utility with elegance, keeping in view the efficient use of floor space, OTOBI is now equipped with the latest machines and technology to manufacture all kinds of sophisticated metal furniture including hospital furniture and such other items. Mr. Nitun Kundu felt the need for introducing professionalism in his company and accordingly engaged highly qualified management talent to meet the functional need of the present day challenges. OTOBI entered into the international market by exporting chairs to Ukraine in 1994. OTOBI is fully conscious of its obligation to the society as a corporate citizen and is currently marking all possible efforts to play its role effectively. embarking into commercial venture and started manufacturing decorative items at his residence and later at Shukrabad, Visions and Mission. OTOBI’s vision is to become a major global brand and its current mission is to dominate Asia-Pecific by 2020 Planning OTOBI is committed to provide excellent service and to exceed the expectations of its customers. It wants the customers to remember “OTOBI‟ as a memorable experience. OTOBI aims to fulfill the objectives of the Company's growth and to meet the expectations of all its employees. Awards Received In their long journey, OTOBI has different kinds of awards from different activities. These awards have given us spirit to go far away. The most well-known awards have given like: The most prominent award for OTOBI is the ISO certificate 9001:2000 certificate. 1. Enterprise of the Year .......... 2001 2. Several prize including first prize at DHAKA Export Fair: 3. Prize on National Industrial Fair Target market Report On SME Pioneer Nitun Kundu Page 6
  7. 7. Identifying the consumers target is important because different consumers may have different brand knowledge structures and thus different perception and preferences for the brand. It may be difficult to be able to state which brand associations should be strongly held favorable and unique. A number of considerations are important in defining and segmenting the market and choosing target market segments. For OTOBI the target market is huge starting from industrial organizations, medical organization, corporate and individuals. Market segmentation: Market segmentation involves dividing the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior and thus require similar marketing mixes. For OTOBI the target market is the middle class to higher middle class as the produce affordable furniture for living and commercial purposes. Job Responsibility As we think that OTOBI is the customer oriented company so, we always give priority to our customers. For giving the customer support we always try to provide our best to the clients. We are providing several of products only for the customer’s satisfaction. I am working here since January th 10 .From the beginning of my work I have to look after to the customer’s desires. I can divide my job responsibility into three parts. As I am working OTOBI as an Executive Retail under the CRM (Customer Relationship Management) department, I have to do several activities related with the customers. The three parts I have divided for my job responsibilities are: 1. Direct dealings with the customer 2. Making the daily report 3. Other Activities Promotion The in-house Communication department at Otobi works around the clock to ensure that all of Otobi's products, services and promotional campaigns receive due attention. Otobi maintains innovative, yearround promotional excitement to attract its customers and is visually present in print media, television Report On SME Pioneer Nitun Kundu Page 7
  8. 8. and outdoor billboards. The promotion strategy has evolved over the years, alongside the brand. In the past, Otobi employed traightforward, product-based adverts in above-the-line channels. It has moved on to discount campaigns ince, and has developed further into thematic campaigns. A comparison of figures demonstrating Otobi's actual ad spending in the past with figures representing the present will substantiate the evolution of Otobi's media presence. In FY 2004-05, the company spent a total of Tk 24,458,000 on advertising, while in the last fiscal year, FY 2008-2009, Otobi spent Tk 86,333,201. This drastic increment in advertising expenses has a direct relationship with the increase in sales and traffic flow in the showrooms. In terms of below-the-line advertising, Otobi is involved in a number of activities including direct mails, leaflets, catalogues, scratch cards and coupons, PR activation for showroom launches, B2B sales, and follow up of the product condition by the Otobi Customer Care department. The Business Research department is also involved in BTL activities, by easuring the level of customer satisfaction after sales. A recent campaign which received much acclamation was the Metamorphosis TVC, which illustrates various types of transformations taking place within a jungle. The campaign was launched in August 2009, and is being aired on all Bangladeshi channels. Otobi depicted seven layers of meaning in this campaign: its outer shell introduced solid wood furniture and its innermost shell appropriated an essence of continuous reinvention. Within the lifestyle brand offering innovative and inspiring space solutions. Otobi's range of furniture, furnishings and appliances are developed and marketed to serve all ages and stages of homes, industries, institutions, hospitals and offices. Otobi manufactures furniture from an assortment of materials, including laminated chip boards, wood, MDF, sheet metal, tubes, plastic, cane and many more. Our wide range of furniture and fittings are segmented category-wise and encompass areas such as bedrooms, children's rooms, dining rooms, living rooms, study rooms, kitchens, hospitals, educational nstitutions, corporate offices, industrial accents and deécors and retail stores among others. Otobi boasts an assortment of about 1,100 generic stock keeping units, and a total of over 5,000 stock keeping units. The company implements all possible global best practices in manufacturing supply chain management and retailing, ensuring all products and services offered are of supreme quality. For instance, Otobi's business research department conducts extensive surveys and interviews to determine customers' responses to Otobi's endeavours, and this feedback is incorporated to modify and diversify the existing intermediary shells, Otobi gathers inspiration from nature and considers Otobian life as a garden or forest. Life goes on for travellers who gain motivation and enlightenment from their journeys for their own metamorphosis. While advertising and promotions are an integral part of the company's function, Report On SME Pioneer Nitun Kundu Page 8
  9. 9. Otobi recognizes the role it can play in furthering the development process in the country. Otobi is committed to giving back to the society it operates in, with an emphasis on a triple bottom line: people, planet, profit. The company has stepped forward to actively respond to the needs of the public on numerous occasions, and CSR policies centre on aiding people in need, victims of natural disasters, and supporting the development of meritorious students. A few incidents where Otobi came to the fore without hesitation include: _ A contribution worth Tk 5,00,000 as flood relief in 2007 _ A contribution worth Tk 5,00,000 for victims of Cyclone Sidr in 2008 _ A contribution worth Tk 9,66,238 to IBA in 2008 _ A contribution worth Tk 10,05,000 to Shahjalal University of Science and Technology in Sylhet _ A contribution worth Tk 1,26,000 to the Bangladesh Shishu Kishore Mela _ A contribution worth Tk 10,00,000 to the Kidney Foundation Otobi also sponsored the winners' cash prizes at the Meridian Channel i Khudey Gaanraaj in 2009. In addition to these, Otobi has launched a Go Green program under the leadership of freedom fighter Mr Abdul Khalek. As Go Green Ambassador, Mr Khalek has taken charge of the nationwide tree plantation program, starting with young students in the first phase, at various schools product line and make it even more alluring to consumers. An additional interior department has been established to assist offices with implementing complete interior solutions to meet consumers' overall needs. Otobi is completely committed to the environment, and keeps solid wood furniture as low as 5% of the complete product range. The boards used are imported from quality board manufacturers who comply with environment-friendly policies. Recent Development Otobi has undergone major changes under the new management. The organizational structure has been modified to include Portfolio Management, Category Management and Visual Merchandising departments, which sets Otobi apart from other companies. In 2008, Otobi's unique Lal-Foring Istishan was launched to cater to the needs of the firm's young customers. In terms of management technique, Otobi introduced the Balanced Scorecard system which aligns the organization's strategic decisions to the work accomplished by its employees. Otobi's first wood plant was established in 2008 as well, in addition to the existing two factories, which is a significant achievement for the company. In 2009, a breakthrough collection Report On SME Pioneer Nitun Kundu Page 9
  10. 10. dubbed "the complete office solution" was inaugurated under the sub-brand Notepad. A major achievement for Otobi this past year was the launch of the groundbreaking Otobi website. The website had been inactive for a very long time and the company refused to put up a website that was below the Otobi standard. The concept that was eventually developed sets a benchmark in the field with its thematic, interactive and completely distinct nature. in Sylhet and Bogra, aiming for a cleaner, greener Bangladesh. Brand Values Embedded in day to day affairs is Otobi's aspiration to be a creative "we" organisation in every sense of the term. It is with teamwork and togetherness that challenges are met and overcome. Creation, perfection and dynamism are the core values of Otobi. Quality, durability, excellence and neat craftsmanship are not what Otobi strives to achieve, but features eminent in each Otobi design. The company maintains its belief of setting its own benchmark and breaking it time and time again. Embodying continuous innovation, Otobi is now an inspirational brand in homes and offices, which is explicitly expressed through its products and communication. At the heart of all activities in the company lies an innate need to constantly surprise; not just the consumers, but Otobians too! The company thrives on the unique "keep reinventing" proposition. Flexible Manufacturing OTOBI manufacturers its furniture using state-of the-art technology, such as computerized numerically controlled machines and solar kilns. OTOBI Limited is a leading crafted furniture manufacturing company of Bangladesh introduced world class furniture through its five well equipped production units in three Factories. Most of the machineries were sourced from China and Germany with high flexibility of modification as required for their verities of design. OTOBI is now the market leader in branded furniture, with almost 70% market share. Its product has also entered into overseas market as a part of the expansion strategy. Overall business performance trend of OTOBI Limited is good. 2 years back OTOBI launched Notepad Concept, which was an innovative range of contemporary office furniture. And they had succeeded. Analysis: Here, OTOBI is using flexible manufacturing process, to manufacture their product according to customer needs and design ideas. For different customer they introduced different product line or product segment. By using technology, they also have upgraded their production process. Report On SME Pioneer Nitun Kundu Page 10
  11. 11. Employee Rewards: To motivate employees OTOBI follows some rewards and motivational factors. An example provided below to illustrate their reward and motivational system towards the employees. “OTOBI employs over 5,000 people, including over 200 graduate engineers and business graduates (MBA, BBA). Every year, OTOBI takes 100 to 200 of its employees to a five star hotel to exercise the 'One OTOBI, One World' belief system, where the Chief Executive Officer and the junior-most Executives are equally treated. “ OTOBI also values its employees, and takes their concerns into consideration with an annual Employee Satisfaction survey. Other Important issues: The company has stepped forward to actively respond to the needs of the public on numerous occasions, and CSR policies center on aiding people in need, victims of natural disasters, and supporting the development of meritorious students. A few incidents where OTOBI came to the fore contribution worth Tk 1,26,000 to the Bangladesh Shishu Kishore Mela to constantly surprise; not just the consumers, but their employees too. The company thrives on the unique "keep reinventing" proposition. Problems Although our furniture company plays a vital role for the economic development of our country. But it is not totally free from the problems. There are so many problems in our furniture company and in our furniture marketing. These problems hamper our furniture company to earn more profit and its development. The major problems are given below: Inadequate supply of production technology. · Lack of consultancy services. · Limited access to quality inputs. · Absence of skilled work force. · Limitations in local and international marketing strategy. · Problems in distributing the furniture products. · Shortage of raw materials. -Inadequate supply of production technology Report On SME Pioneer Nitun Kundu Page 11
  12. 12. Technology is an important factor for increasing the production. Technological skill can play a very good role for increasing and developing the products. Better supply of technology can help our furniture company to increase its production. But we can notice that our furniture company can not use the better technology for the improvement of the furniture products. This is really a severe problem for our furniture co. -Lack of consultancy services Consultancy services are very important for producing better quality furniture products. But the lack of consultancy services hampers our furniture company to earn more profit. Term Paper on Furniture Marketing in Bangladesh Limited access to quality inputs A better input helps to get better output. But its limited access does not make any good result. -Absence of skilled workforce Although our country is over populated but there is a shortage of skilled workforce in our country. We can gain the best quality products from the skilled workforce. But unskilled workforce are failed to produce better furniture products. Making furniture is a technical process. So skilled workforce are required for Furniture Company. Limitations in local and international marketing strategy The success of a company mostly depends on its marketing strategy. Marketing strategy is very important for every type of business organization. But it’s local and international limitations are threatening for our furniture co. Problems in distributing the furniture products our furniture company cannot distribute its product to the whole country because there are so many problems they face. -Shortage of raw materials Although our country has many trees. Our people cutting down these trees unreasonably. Our furniture company cannot collect more raw materials for producing more furniture. Present Marker condition During the early days of Otobi, a patron had visited Kundu and ordered 500 chairs. That was when the saga of building his empire actually began. Now, with a factory in Shyampur, Otobi's creations and designs have crossed the mark of excellence, constructing one new structure after the other. Otobi controls about 80% of the country's branded furniture market at present. For the last three years, Otobi has been achieving a double-digit growth with an average of over 20% increase in year-onyear sales, despite the global economic downturn and great stagflation in FY 2007-08. In a market of over Report On SME Pioneer Nitun Kundu Page 12
  13. 13. Tk 1,500 crores, the organised market is estimated to be close to Tk 500 crores. Otobi is marketing to and providing the price-sensitive customers with affordable solutions through its masstige value proposition (prestige for the mass). Otobi considers itself to be its most significant competitor, aiming to constantly break its own standards and raise the bar even higher. Otobi serves its customers and consumers through a nationwide distribution network, including over 400 retail outlets, exclusive dealers and franchises. Conclusion Mr. Nitun Kundu set up a small workshop in a tin-shed at Topkhana Road in February 1977 and named it “Art in Craft”. After 35 year they controls about 80% of the country's branded furniture market at present. For the last three years, Otobi has been achieving a double-digit growth with an average of over 20% increase in year-one year sales. Report On SME Pioneer Nitun Kundu Page 13

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