International Marketing Plan on:

HERSHEY’S KISSES CHOCLATE in BANGLADESH

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EAST WEST UNIVERSITY International Marketing Plan on: HERSHEY’S KISSES CHOCLATE in BANGLADESH

Course Code: MKT-408

Course Title: International Marketing

Section: 02

Prepared For:

Mr. Mahmud Zubayer

Assistant Professor

Dept. of Business Administration

East West University

Prepared By:

Name ID

Md.Mushfiqul Haque Mukit

Fariha Sharmin Bhasha

Md.Azizul Islam Bhuiyan Md.Tanviur Rahman

Marks Achieved: 9/10

NB: I disclose this paper to you for your academic help. please do not copy

it from here.

3

Tab

LETTER OF TRANSMITTAL....................................................................... 4

1. Executive Summary: ................................................................................. 5

2. Introduction:............................................................................................ 6

3. Company Overview .................................................................................. 7

Products Portfolio of HERSHEY’S KISSES CHOCLATE in BANGLADESH................ 9

4. Mission Statement: ................................................................................ 10

5. Our Values: .............................................................................................. 10

6. Objective of the study: ............................................................................. 10

7.Methodology of this study:........................................................................ 10

8. Brief discussion of the country’s relevant history:...................................... 11

9. Competitor Analysis ………………………………………………………………………… …11

10. Geographical Settings: ............................................................................ 15

10.Social classes and stratification ............................................................. 26

11. Religion and aesthetics: .......................................................................... 27

11.1Religion and other belief system: ........................................................ 27

11.2 Aesthetics: ........................................................................................ 29

12. Living conditions: .............................................................................................................. 29

12.1 Diet & nutrition: ........................................................................................................... 29

12.2 Housing:........................................................................................................................ 32

13.Language…………………………………………………………………………………………….……27

14.Recommendation………………… …………………………………………………………………27

15. Analysis of the questioners and profile: ............................................................................ 36

16.Sources of Information: ...................................................................................................... 37

17. Appendixes:........................................................................................................................ 40

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LETTER OF TRANSMITTAL

March 31, 2015

To

Mr. Mahmud Zubayer

Assistant professor

Department Of business Administration

East West University

Subject: Submission of term paper on "International Marketing Plan on HERSHEY’S KISSES

CHOCLATE in BANGLADESH”

Dear Sir,

This is to inform you that we have completed the term paper on "International Marketing Plan

on HERSHEY’S KISSES CHOCLATE in BANGLADESH”, which has been prepared as a requirement

for the completion of the BBA course MKT 408 (International Marketing) of Eas t West

University. We are really honored to prepare this assignment under your guidance since it gave

us the opportunity to how to conduct a survey on a topic. We are really grateful for your

valuable advices and great cooperation. We tried our best to accumulate the information for

you as comprehensive as possible and to go deep into the matters and make full use of our

capabilities in making the report meaningful as well, though; there may be some mistakes and

shortcomings. We will be pleased to answer any kind of query you think necessary.

While working on this paper, we have tried to follow each and every guideline that you had

advised. It has been a very enlightening experience to work in this new venture and we have

thoroughly enjoyed preparing and implementing our report on “International Marketing Plan

on HERSHEY’S KISSES CHOCLATE in BANGLADESH.”

Now we have placed this paper before you for your kind approval. We hope that our paper will

satisfy you. For any of your further queries we would be at your disposal at your convenience.

Sincerely,

Md. Mushfiqul Haque Mukit

(On behalf of our group)

5

1. Executive Summary:

In this paper the main objective to analyze the entry projections of Hershey’s

Kisses Chocolate into Bangladesh. We preferably projected on the basic and

subtle factors of international marketing implications. We have diagnosed in

this paper environmental Impact over the competitions, marketing mix, SRC,

cultural and political resembles, business operation and the way to enter into

the Bangladesh market.

For preparing this paper, we have conducted a thorough marketing strategy,

product research, market positioning, targeting strategy. We also developed

the marketing mix strategy especially in 7p’s for Hershey’s Kisses Chocolate

Bangladesh. We have analyzed the various factors of International Marketing

and the aspect of introducing an International Brand into the Bangladeshi

market. The opportunities and obstacles of introducing an international brand

into a foreign market are identified in this paper.

Our target market is whole Bangladesh. The customers to whom our products

will be supplied are retailers, wholesalers and traders in Dhaka, Chittagong,

Sylhet, Khulna, Cox’s Bazaar .The location of our manufacturing plant would

be Gazipur and we will use port for Chittagong for raw materials. We would be

targeting the consumers of all age groups. The products that we would offer

are:

Hershey`s kisses Plain Chocolate

Hershey`s kisses Milk Chocolate

Hershey`s kisses Fruit N Nut Chocolate

The core competencies on which our company would be competing are taste

and quality of our chocolates. We have already discussed about the current

retail chocolate industry of Bangladesh and the potential competitors that

Hershey`s kisses are likely to face in Bangladeshi market. We have applied two

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tools for the situation analysis; these are the SWOT analysis and PESTEL

framework. We tried to make some logical judgment on the viability of

Starbucks Coffee entering into the Bangladeshi market based on the finding

from the applied tools. We have also analyzed the various aspects of the

foreign environment, i.e. economic forces, cultural forces, etc.

2. Introduction:

Bangladesh is a country in Southern Asia. According to CIA data facts, Bangladesh

has a population of nearly 1.6 hundred million people and a majority of this falls

into the age bracket of 25-54 years of age, making it one of the youngest

countries in the world with a median age of just above 25 years.

Bangladesh is a miracle state and economy has grown roughly 6% per year since

1996 and more than half of GDP. 53.323 % of working-age population, urban

populations 32.753 % of total (2013). Garment exports, the backbone of

Bangladesh's industrial sector and 80% of total exports, surpassed $21 billion last

year, 18% of GDP. Steady garment export growth combined with remittances

from overseas Bangladeshis, which totaled almost $15 billion and 13% of GDP IN

2013, are the largest contributors to Bangladesh's current account surplus and

record foreign exchange holdings.

http://globaledge.msu.edu/countries/bangladesh/statistics

Hershey`s kisses were introduced to the market in 1907 and manufactured by The

Hershey`s Company. These chocolates got its name by the machine that makes

them. This is due to the machine which made kiss sounds and appeared to kiss

the conveyer belt onto which the chocolate is dispensed. Kisses appears to be one

of the most popular candies in the world since 1989 when Hershey`s kisses were

the fifth most famous chocolate in 1989 in United States and the sales topped to

$ 400 million.

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Hershey`s kisses had introduced seven its main product lines which is kisses milk

chocolates, kisses hugs, kisses dark chocolates, kisses with caramel, kisses melt

away centre, kisses with almonds and kisses air delight. In addition, they also had

introduced several products that are available during seasonal day only. For

example Hershey`s Kisses Halloween with pumpkin flavor, Hershey`s Kisses

Valentine`s Day and Easter Day.

Bangladesh is the right place for of Hershey’s Kisses Chocolate in Bangladesh.

Here, competitor of quality chocolate is so rare; mostly Cadbury, Nestle’

dominating in this arena. In Bangladesh now, Peoples buying and purchasing

capacity are now rise from earlier.

3. Company Overview

Hershey`s kisses Company originated with candy-manufacturer Milton Hershey’s

decision in 1894 to produce sweet chocolate as a coating for his caramels.

Located in Lancaster, Pennsylvania, the new enterprise was named the Hershey

Chocolate Company. In 1900, the company began producing milk chocolate in

bars, wafers and other shapes. With mass production, Hershey was able to lower

the per-unit cost and make milk chocolate, once a luxury item for the wealthy,

affordable to all. One early advertising slogan described this new product as “a

palatable confection and a most nourishing food.” The immediate success of

Hershey’s low-cost, high-quality milk chocolate soon caused the company’s owner

to consider increasing his production facilities. He decided to build a new

chocolate factory amid the gently rolling farmland of south-central Pennsylvania

in Derry Township, where he had been born. Close to the ports of New York and

Philadelphia that supplied the imported sugar and cocoa beans needed,

surrounded by dairy farms that provided the milk required, and with a local labor

supply of honest, hardworking people, the location was perfect. By the summer of

1905, the new factory was turning out delicious milk chocolate

Looking to expand its product line, the company in 1907 began producing a flat-

bottomed, conical milk chocolate candy that Mr. Hershey decided to name

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HERSHEY’S KISSES Chocolates. At first, they were individually wrapped in little

squares of silver foil, but in 1921 machine wrapping were introduced. That

technology was also used to add the familiar “plume” at the top to signify to

consumers that this was a genuine HERSHEY’S KISSES Chocolate. In 1924, the

company even had it trademarked.

Today, The Hershey Company is the leading North American manufacturer of

chocolate and non-chocolate confectionery and grocery products. As the new

millennium begins, The Hershey Company continues to introduce new products

frequently and take advantage of growth opportunities through acquisitions.

HERSHEY'S products are known and enjoyed the world over. In fact, the company

markets its products in approximately 70 countries worldwide. With

approximately 14,000 employees and net sales in excess of $6.6 billion, The

Hershey Company remains committed to the vision and values of the man who

started it all so many years ago.

GETTING STARTED 1894 - 1916

EXPANDING & INNOVATING 1917 – 1938

GOING TO WAR 1939 – 1948

GROWING GLOBALYY -1949 to Present

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Products Portfolio of HERSHEY’S KISSES CHOCLATE in BANGLADESH

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4. Mission Statement:

“Continuing Milton Hershey’s legacy of commitment to consumers, community

and children, we provide high-quality HERSHEY’S products while conducting our

business in a socially responsible and environmentally sustainable manner.”

Our Values:

To strive and to Meet & Exceed Customer's Expectations so as to ensure a

sustainable business relationship

We are performance driven, through the lens of humanity.

Promised to provide American creamy taste in every Bangladeshi’s taste

buds

We will serve it diligently, strategically and culturally.

Objective of the study:

Impact of cultural dynamics in global market place: an empirical study on

Marketing on HERSHEY’S KISSES CHOCLATE in BANGLADESH.

Methodology of this study:

Primary Source:

Discussion with the official of different HERSHEY’S KISSES CHOCLATE by

mail

Discussion with the officials of existing Chocolate industry in Bangladesh

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Interviewing random consumers regarding their perception on HERSHEY’S

KISSES CHOCLATE in Bangladesh.

Secondary Source:

360 Degree Marketing and Campaign

Newspaper

Websites of Different Journals

Limitations:

Resource constraint in terms of transportation and our lack of experience in

preparing this type of project was one of the main constraints of the study. Sample

size is too small to come to any concrete conclusion. Research work requires huge

time and effort. But we had to complete our report within a very short time. A

better insight could have been achieved if the area of coverage would have

included more number of cities.

Brief discussion of the country’s relevant history:

The chocolate market is estimated around 1300 tons valued at approximately BD

Tk. 31 corers. Bars of molded chocolates like milk chocolate, dairy milk, truffle,

Perfetti Van Melle, Nestle premium, Cocola Gems, Mimi Milk Chocolate, Perfetti

Van Melle, Cadbury Dairy Milk, Globe Biscuit & Dairy Milk, Nestle milky bar

comprise the largest segment, Mimi Orange, Aziz Mimi, Pran Choclate,

accounting for 6% of the total market in terms of volume. To push sales chocolate

companies have been targeting mainly adult audiences. Chocolates are being

presented as snack food for the new target audiences. The chocolate segment is

characterized by high volumes, huge expenses on advertising, low margins, and

price sensitivity.

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Cheap labor, like all other industries, is the main stake of Bangladeshi Chocolate

Industry. Availability of cheap labor in most of the Chocolate growing region and

qualified labor for working in Chocolate cafes is a something promising for the

Chocolate retailing in Bangladesh. Understanding of English language: Much of

the labor pool available in Bangladesh is well versed with English language. This is

particularly beneficial for the multinational coffee retail chains like that of

Starbucks. This also helps in promoting the brand among the tourists from

western parts of the world, who are very well aware of Brand Name

ChocolateCadbury is the leading player in the chocolate market industry with the

penetration of 70% market share. The company's brands like Five Star, Gems,

Éclairs, Perk, and Dairy Milk are leaders in their segments. Nestle & Perfetti Van

Mill are the other major players in chocolate industry. Chocolate industry is

growing at steady growth rate of 25%. Over 70% of the consumption of

chocolates takes place in the urban market. It is price sensitive market. Until late

90's, Cadbury had a market share of over 80 %, but its party was spoiled when

Nestle appeared on the scene. The other one has introduced its international

brands in the country (Kit Kat, Lions), and now commands approximately 15%

market share.). Competition in the segment will soon get keener as overseas

chocolate giants Hershey's to grab a bite of the Indian chocolate pie we expect

boldly. Bangladesh Chocolate Industry’s Margin range between 10 and 20% and

mostly depending on the price point at which the product is placed. The input

costs in India are under check owing to the 24% decline in the prices of sugar.

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Core Competencies in Chocolate industry Bangladesh:

The core competencies on which our company will compete are: By consuming

the “Yummy Chocolates” flavor begins to fill your mouth the moment the

chocolate begins to melt on your tongue like butter and it tastes like pure

chocolate rather than cocoa powder. The raw ingredients are of finest quality and

also care is taken of the production process; roasting and crushing the cocoa

beans and mixing the cocoa paste with sugar and other ingredients such as milk.

Yummy chocolates are high quality chocolates as they are shiny brown, break

cleanly and are smooth. Chocolates have the sufficient quantities of cocoa butter

and vegetable fat so that it does not become greasy or sticky at ambient room

temperature

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Competitor Analysis

COMPANY FOUNDED IN BRAND PORTFOLIO

(confectionery products)

Nestle 1860s Kit Kat, Smarties, Wonka

Ferreno 1940s Rocher, Raffaello, Kinder, Tic Tac, Mon

Cheri, Nutella

Haque Family 1947 Chocolate wafer, Milky Way, etc

Pran 1945 Milk chocolate, Fruit & Nut chocolate

Hershey’s 1894 Hershey’s milk chocolate, Kisses, Pot of

gold, Milk duds, Reese’s, Icebreakers etc

Perfetti Van

Melle

2001, when Perfetti

and Van melle

merged

(Bangladesh)

Alpenliebe, Chlormint, Center fresh,

Happydent, Mentos

Globe Biscuits

& Dairy Milk

Ltd (GBDML)

2012 (Bangladesh) candy, chocolate

Haque Group 1998 (Bangladesh) Crunch Chocolate Coated Wafer

Cadbury 1948 (Indian

Market)

Dairy Milk, Dairy Milk fruit N nut,

Dairy Milk Shots, Dairy Milk Roasted

Almond, Dairy Milk Silk

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Cultural differences between Bangladesh & USA

Bangladesh U.S.A

High context society Low-context society

Respect family (especially elders) Respect immediate family

Collectivistic culture; essence of harmony Individualistic culture; essence of supremacy

Highly homogenous population Highly heterogeneous population

Group decisions (consensus) valued Individual decisions valued

Team accomplishments valued Individual accomplishments valued

Official language is Bengali Official language is English

Geographical Settings:

A country's geography influences the development of its society and culture in

many ways. Its location in relation to other nations has an effect on intercultural

influences; its size affects demography, the development of social structures, and

its position in the international community. Its topography dictates to a large

extent where and how its people earn their livings, and its climate influences its

agriculture and styles of living. The following maps will demonstrate these and

other aspects of the influence of geography on national development.

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10.1 Location

Bangladesh is situated in southern Asia, on the delta of the 2 largest rivers on the

Indian subcontinent—the Ganges and Jamuna. It borders with India in the west,

north, and east, with Burma Myanmar in the southeast, and with the Bay of

Bengal in the south. The country's area is 144,000 square kilometers (55,598

square miles), and it is divided into 6 administrative divisions (Dhaka, Chittagong,

Khulna, Barisal, Rajshai and Sylhet). We are starting a business of manufacturing

chocolates. Name of the company is “Hershey`s kisses”. Our target market is

whole Bangladesh The customers to whom our products will be supplied are

retailers, wholesalers and traders in Dhaka, Chittagong, Sylhet, Khulna, Cox’s

Bazaar .The location of our manufacturing plant would be Gazipur.

10.2 Climate & Weather

Weather describes the state of atmospheric conditions at a particular place and

time. It also explains how the air moves, which is called the wind, and describes

anything it might be carrying, such as rain, snow or clouds. Thunder, lightning,

rainbows, haze and other special events are all parts of weather. Climate on the

other hand, describes the average weather conditions in a certain place or during

a certain season. Weather may change from day to day, but climate changes only

over 30-40 years.

However, Hershey`s Kisses chocolates were wrapped with the silver color foil and

long-lasting for few decades. So, Climate & Weather does not damage our

chocolate.

10.3 Topography

Topographically Bangladesh may be divided into alluvial plains and hilly areas.

More than 90 percent of the total area of Bangladesh is low land, an alluvial plain

formed by the sediments of the several great rivers and their tributaries and

distributaries which traverse the country. There are, however, some local

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variations in the nature and extent of the plain land.

Low hills are found in the north-eastern extremities of Bangladesh, east of

Comilla. But the more important hilly areas are concentrated in the Chittagong hill

districts.

11.0 Social Institutions

11.1 Family

Family forms and functions very substantially around the world even around the

world . It is also very influential for Bangladesh. The types of family are following

The nuclear family:

The term nuclear family can be defined simply as a wife/mother, a

husband/father, and their children. However, this straightforward structural

definition is surrounded by a cloud of ambiguity and controversy. The only one

that can carry out the vital functions of the family (especially, rearing the next

generation) or can other family patterns (e.g., single mothers, single fathers,

two women, or two men) be considered workable units for fulfilling these

functions. Most families in Bangladesh today are nuclear families. That is to say

that a married couple lives together with their children, perhaps with one

grandparent. But for the most part, the Bangladesh‘s family today looks much

like the American family.

The extended family:

Like many Asian family systems, Bangladesh has some extend family in rural area.

Although, Bangladeshi family roles have changed considerably.

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Dynamics of the family:

The term Dynamics Of the family means each family has its own patterns of

relating to each other. These are their family dynamics. They are influenced by

things like the structure of the family - the numbers of children and adults and

how they are related - the personalities of each family member, cultural

background, values, and personal or family experiences.

Parental roles:

Roles for mothers and fathers are segregated. Childcare is regarded as the

mother's responsibility; the father's domestic role is limited to small household

repairs and playing with children on weekends. Father is always busy with the

professional work. But now mother is also joining with the professional work.

Marriage & courtship:

. Marriage is almost always an arranged affair and takes place when the parents,

particularly the father, decide that a child should be married. Men marry typically

around age twenty-five or older, and women marry between ages fifteen and

twenty; thus the husband is usually at least ten years older than the wife. Muslims

allow poly genius marriage, but its occurrence is rare and is dependent on a man's

ability to support multiple households.

A parent who decides that a child is ready to marry may contact agencies, go-

betweens, relatives, and friends to find an appropriate mate. Of immediate

concern are the status and characteristics of the potential in-law's family.

Generally an equal match is sought in terms of family economic status,

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educational background, and piousness. A father may allow his child to choose

among five or six potential mates, providing the child with the relevant data on

each candidate. It is customary for the child to rule out clearly unacceptable

candidates, leaving a slate of candidates from which the father can choose. An

arrangement between two families may be sealed with an agreement on a dowry

and the types of gifts to be made to the groom.

Female/Male roles

Gender roles are defined by culture more than physical differences between

men and women. World War II marked a shift in thinking about gender roles.

The traditional gender roles—men as breadwinners and women as

homemakers—are only supported by only 40 to 50 per cent of people. Among

younger couples, more flexible gender roles are becoming popular.

Impact:

From above information we come to know that Bangladeshis are emphasizing on

nuclear family day by day. In terms of that they want to stay near or in

neighborhood of their grandparents or uncle & aunts. We also know that

Bangladeshi husband & family is spending more time together rather than work

whole time.

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Strategy:

The changing view of current Bangladeshi social institution will help to gain

popularity of chocolate. Because in course of dating or husband wife’s free time

or visiting grandparents,

Chocolate will help to save & enjoy time as well as their life.

11.2Education:

Primary education takes place in kindergarten through sixth grade at elementary

schools. In these grades, children learn the foundational skills in literacy and

mathematics necessary to be successful in upper levels of education. Students

may also receive instruction in science, social studies, and art, music, physical

education, technology and world languages.

Primary education sets the foundation for learning more difficult academic

material. Try to think of a child's educational career as a building. The first four

years, kindergarten through third grade, are the foundation and each year after

that is another floor. The strength and security of the building depend on how

strong that foundation is and conversely, if the foundation is weak, it will not be

able to support the elevating floors. Most teachers would agree that students

who have trouble in those first years of primary school have a hard time with

material from grade four on.

Secondary education normally takes place in secondary schools taking place after

primary education and may be followed by higher education or vocational

training. In some countries, only primary or basic education is compulsory, but

secondary education is included in compulsory education in most countries. In

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post-Soviet countries it is also known as general education or general middle

education.

Higher education, theoretically, will also enable individuals to expand their

knowledge and skills, express their thoughts clearly in speech and in writing, grasp

abstract concepts and theories, and increase their understanding of the world and

their community. Higher education improves an individual's quality of life. Studies

show that, compared to high school graduates, college graduates have longer life

spans, better access to health care, better dietary and health practices, greater

economic stability and security, more prestigious employment and greater job

satisfaction, less dependency on government assistance, greater knowledge of

government, greater community service and leadership, more volunteer work,

more self-confidence, and less criminal activity and incarceration.

Impacts:

As the education rate is little lower, the organization would employ both

literates and semi-literates, which would decrease the unemployment rate.

There would also a scope for the illiterates to have a job in the organization

and train them to improve their skills, which would also be cost effective.

Strategy:

Our target market is Upper class, Middle class; Lower middle class& All age

groups. So, most of the educated people are this group in Bangladesh. We can

easily sell our chocolate because educated people know our product name.

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11.3 Political system:

Political structure

The People's Republic of Bangladesh is a parliamentary democracy that

includes a president, a prime minister, and a unicameral parliament. Three

hundred members of parliament are elected to the 330-seat legislature in

local elections held every five years. Thirty seats are reserved for women

members of parliament. The prime minister, who is appointed by the

president, must have the support of a majority of parliament members. The

president is elected by the parliament every five years to that largely

ceremonial post. The country is divided into four divisions, twenty districts,

subdistricts, union parishads, and villages. In local politics, the most

important political level is the union in rural areas; in urban regions, it is the

municipality ( pourashava ). Members are elected locally, and campaigning is

extremely competitive.

Political parties

The three major parties in Bangladesh are the Bangladesh Nationalist

Party (BNP) and Bangladesh Awami League and Jatiya Party.

Stability of government:

Bangladesh is a democratic country and its economy is growing gradually .

But the political structure is not much more stable .

23

Special taxes

Bangladesh government always discourages to import luxurious product by

imposing high tax. But the people of Bangladesh are used to consume more

luxurious product that are very positive sign for our business. The standard rate

of VAT is 15% levied on transaction value of most of the imports and supplies of

goods and services. The top income tax rate for individuals is 30% . For the

2014/15 tax year (July 1, 2014–June 30, 2015) the top corporate rate was 45%.

However, publicly traded companies registered in Bangladesh are charged a

lower rate of 27.5%. Banks, financial institutions and insurance companies are

charged the 45% rate. All other companies are taxed at the 37.5% rate.

Role of local government:

Role of local government means Governments and businesses are

interdependent, and when it comes to international business, this

interdependence has grown even further by the globalization of economy. For

any business, the policies of the local government can have deciding implications.

The restrictions placed on business, the requirements of licensing and other

permissions, regulations, formalities, taxes - all these have a direct impact on the

ease of doing business.

There are many other aspects in which also governments play a very important

role in facilitating international business. First of them is infrastructure.

24

International transit of goods require ports with adequate capacity to handle high

quantity cargo, as well as adequate roads or railway networks for transporting

them to the markets, and by creating such infrastructure, the government can

make business in their country an attractive prospect for international companies.

Second, the law and order, and rent seeking are two very important factors for

businesses coming from outside the country. Today, few companies are likely to

be tempted towards a country where safety of property is doubtful, and not every

company would be ready to live with graft and illegal rent seeking. Governments

can make a big difference by taking care of these factors.

Third, international business if full of various risks, and governments can play a

great role in minimizing those risks. A clear and consistent policy towards foreign

investment and international trade can, by itself, be a significant contribution

because unpredictability of government policies is one of biggest source of these

risks. Managing currency, inflation and foreign exchange rate is another

important way of reducing these risks. Ensuring property rights and contract

enforcement is also one of the ways in which business risks can be minimized.

11.4 Legal System:

Bangladeshi law is based on English common law system. As a result, the English

law principles such as judicial precedent (lower courts follow the reasoning of the

higher courts in similar, subsequent cases) and ratio decided (reasons for

judgment) govern the interpretation of the case law. Civil cases are heard by the

District Courts, and the Criminal cases by Magistrates’ Courts and High Courts.

From decisions of these trial courts, an appeal lies to the Court of Appeals and then

to the Supreme Court. Parliament makes law in Bangladesh. Laws are published in

25

Acts of Parliament. The term “Ordinance” refers mostly to legislation passed

during the British rule, the term “Law” or “Act” refers to more recent legislation.

In most laws, the Parliament delegates the rule making authority to administrative

(executive) agencies. The rules or regulations made by such agencies are published

in the Government gazette.

All the case law cited here are from the Bangladeshi Law Reports (BLR). Before

the BLR, there was New Law Reports (NLR). Whenever there is a reference to

NLR, remember they are older than BLR! The cases on this site are just a handful

of cases decided on human rights, known in Bangladesh as fundamental rights.

However, you will be able to have a reasonable understanding of Bangladesh’s

human rights by reading these cases.

Some laws available on this site may have been amended. However, most

amendments are not available electronically. The only way to access the most

recent amendments would be to obtain a paper copy from the Bangladesh

Publication Bureau.

Impacts:

As the legal system of Bangladesh is similar to the English laws, it would be

easier to adapt that system.

A stable legal system like Bangladesh has positive impacts on any kind of

business organization.

26

11.5 Social Organization:

Social classes and stratification

Society in Bangladesh in the 1980s, with the exception of the Hindu caste system,

was not rigidly stratified; rather, it was open, fluid, and diffused, without a

cohesive social organization and social structure. Social class distinctions were

mostly functional, however, and there was considerable mobility among classes.

Even the structure of the Hindu caste system in Bangladesh was relatively loose

because most Hindus belonged to the lower castes.

Ostensibly, egalitarian principles of Islam were the basis of social organization.

Unlike in other regions of South Asia, the Hindu caste-based social system had a

very limited effect on Bangladeshi Muslim social culture. Even the low-

caste jolhas (weavers) had improved their social standing since 1971. Although

several hierarchically arranged groups—such as the syeds (noble born) and

the sheikhs, or shaykhs (also noble born)--were noticeable in Bangladesh Muslim

society, there were no impenetrable hereditary social distinctions. Rather, fairly

permeable classes based on wealth and political influence existed both in the cities

and in the villages.

Traditional Muslim class distinctions had little importance in Bangladesh. The

proscription against marriage between individuals of high-born and low-born

families, once an indicator of the social gap between the two groups, had long ago

disappeared; most matrimonial alliances were based on wealth and power and not

on the ties of family distinction. Also, many so-called upper-class families,

because of their traditional use of the Urdu language, had become alienated in

independent Bangladesh.

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Although Hindu society used to be formally stratified into caste categories, caste

did not figure prominently in the Bangladeshi Hindu community. About 75 percent

of the Hindus in Bangladesh belonged to the lower castes,

notably namasudras (lesser cultivators), and the remainder belonged primarily to

outcaste or untouchable groups. Some members of higher castes belonged to

the middle or professional class, but there was no Hindu upper class. With the

increasing participation of the Hindus in nontraditional professional mobility, the

castes were able to interact in wider political and socioeconomic arenas, which

caused some erosion of caste consciousness. Although there is no mobility

between Hindu castes, caste distinctions did not play as important a role in

Bangladesh as in they did in the Hindu-dominated Indian state of West.

Bangladeshi Hindus seemed to have become part of the mainstream culture

without surrendering their religious and cultural distinctions.

Impacts:

The social class can be differentiated by their educational level, command

of English, and executive level of employment. So it would be easier to

identify the target market for the organization.

11.7. Religion and aesthetics:

11.1Religion and other belief system:

Islam is the official religion in Bangladesh and is practiced by some 88

percent of the country's inhabitants. Other religions that are active in Bangladesh

28

include Hinduism, Christianity, Buddhism, animism and tribal belief systems. The

majority of the populations who follow Islam pursue the Sunni branch of the

Muslim religion whilst a small group is Shia. Interestingly, Bangladesh is reported

to have one of the biggest Muslim communities in the world. It was during the

13th century that masses began converting to Islam and this conversion

continued for several centuries. It was the Muslim missionaries and mystics who

brought the religion of Islam to the people of Bangladesh. The Islamic religion in

Bangladesh plays a large role in everyday life of the people as is evidenced in the

celebration of festivals such as Eid-ul-Fitr, Eid-e-Miladunnabi, Muharram and

others. Whilst Muslims in Bangladesh are committed to Islam, adherence to

certain rituals and tenets may vary depending on a number of factors. In some

rural areas the people have began to incorporate other beliefs into their religion,

some of which may not fall in line with orthodox Islam. Followers of the Hindu

religion in Bangladesh amount to around 13% of the country's population. Hindu

communities are concentrated in areas such as Barisal, Khulna, Dinajpur, Jessore

and Faridpur. Hindu temples can be found scattered throughout the country.

Making up 0,5 to 1% of the population are followers of the Theravada school of

Buddhism, most of whom reside in the Chittagong Hills. Christians make up

another 1% of Bangladesh's population. The majority are part of the Roman

Catholic Church. Another prominent church is the Church of Bangladesh, a united

church formed by several protestant churches. Tribes in the Chittagong Hills have

formed their own religion, a blending of Buddhism and tribal rituals.

29

11.2 Aesthetics:

Aesthetic is the branch of philosophy dealing with such notions as the beautiful,

the ugly, the sublime, the comic, etc., as applicable to the fine arts, with a view to

establishing the meaning and validity of critical judgments concerning works of

art, and the principles underlying or justifying such judgments. Bangladeshi art is

a form of visual arts which is discovered or has been practiced throughout the

history in the land what is now known as Bangladesh. Bangladeshi art has a

perennial history which originated more than two thousand years ago and is

practiced even in this date. Among the various forms of Bangladesh art,

photography, architecture, sculpture and painting are the most notable.

Impacts:

Bangladesh a peaceful country from the religious point of view. So it would be

easier to take decisions and not to hurt their religious values.

As Bangladeshi is culturally sound, tourists are more attracted to visit there

frequently.

Reflecting the traditional cultures of Bangladesh the organization would be

more preferable to the tourists as well as the local people

12. Living conditions:

12.1 Diet & nutrition:

Rice is the staple food in Bangladesh, comprising over 50% by weight and

nearly 80% by calorie of the total food. In the cereal group, some wheat is also

30

taken, but it comprises only 6-7% of total cereal volume. A look at the food intake

pattern from 1991 to 2005 would show that with the increase in food production

and an improvement of socio-economic status of the people during this period,

the total per capita food intake in Bangladesh has increased slightly, by 6.9%, but,

interestingly, the intake of cereals shows a slow decreasing trend (total by 9.5%,

rice by 6.4% and wheat by 52.3%) (Figure-2). The lower intake of cereals is

accompanied by increased intakes of non-cereal food items, particularly meat,

egg, potato, fruits and vegetables (Figure 3), indicating positive transition towards

dietary diversification.

Traditional Foods and Food Habits in Bangladesh is not like every country

has its own tradition of foods. Bangladesh has also the same. In the sense of food

habits, Bangladesh is influenced by the regional variations of her history. Being an

outpost of Mughal Empire once, Bangladesh retains its heritage. Bangladesh is

famous for rice production which has been the chief occupation of its people. Rice

therefore the main food of Bangladesh. The Bangladeshis eat rice, not just a small

quantity but a lot. They eat rice every day and at every meal with great testy and

spicy curry of vegetables, fishes and meat. For the vegetarians Bangladesh is a

paradise. Plenty of fresh vegetables are available throughout the year. Among

them, winter vegetables are more popular because of their different preparations

and taste. The common vegetables from Bangladesh are Cauliflower, Cabbage,

Tomato, Potato, Beans, reddish, Peas, Carrot, Radish, Pumpkin, Eggplant,

Drumstick, Bitter-ground, Arum and Arum-root, Bind-weed and many others.

Most of the restaurants serve some kinds of vegetable everyday either fried or

curry or even Bharta (cereals of various vegetables or fishes dry or fresh with

31

spices that are absolutely delicious). Generally Bangladeshi take meal in three

time a day called Breakfast around 8.00 am, Lunch around 2.00 pm and dinner

around 10.00 pm . Besides in evening they take snakes. In the morning, a farmer

or a laborer starts his long day with a breakfast of Panta (plain boiled rice soaked

overnight in water and slightly fermented). This watery rice mixed with salt and

chilly, either green or fried dry ones but this is not just the only sort of breakfast.

Muri (puffed rice) or Chira (flattened rice), or Khoi (popped rice) are other items

of a traditional breakfast in most Bangladeshi homes in the rural areas. These are

taken with milk, yogurt, seasonal fruits or Gur (a crude form of country sugar).

Wheat based plain bread (may be with oil) is another common item for

breakfast. A large number of people of Bangladesh take baked bread and mixed

vegetable including egg, various kind of meat, and a hot cup of tea at last of

breakfast. Lunch is the main dish for Bangladeshis. Almost all the Bangladeshis

take plain rice in lunch. Most of them take different kinds of vorta and Bhaji

(saluted or fried vegetable with green or fried chilly and other spices) are very

popular. They also take various kinds of spicy illusive fishes with it. So it is called

that Mase vate Bangali (i e the land of rich and fishes). Fish or meat Jhol

(liquidated, may be with different kind of vegetables) with plenty of chopped

spices and other ingredients Cooked in low heat and for long is typical and an

exclusive dish of Bangladesh. Dal (pulse) is must in Bangladeshi tradition in lunch.

Adding ground ginger, garlic, onion, cumin, and chili pepper pastes, this dish also

included fennel seed, black cumin, methie and so on herbs makes the Bangladeshi

traditional meal greatly delicious.

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12.2 Housing:

As Hershey`s chocolate will run its operation in the main cities of

Bangladesh, we are considering the housing of cities especially at Dhaka than

Chittagong. In this regions mainly in Dhaka most of the people doesn’t have their

own house meaning they are rental dwellers. Many higher class income people also

do not have their own house. If we consider Dhaka most of the families have single

family.

12.3 Clothing

Bangladeshi women habitually wear Sarees. Jamdani was once world famous for

its most artistic and expensive ornamental fabric. Moslin, a fine and artistic type of

cloth was well-known worldwide. NaksiKantha, embroidered quilted patchwork

cloth produced by the village women, is still familiar in villages and towns

simultaneously. A common hairstyle is Beni (twisted bun) that Bangalee women

are fond of. Traditionally males wear Panjabis, Fatuas and Pajamas. Hindus wear

Dhuty for religious purposes. Now-a-days common dresses of males are shirts and

pants. Government and non-government organizations like Bangla Academy,

Nazrul Institute, Bangladesh Shilpakala Academy, Fine arts Institute, Chhayanat

etc. play significant role to flourish Bangladeshi art and culture providing

encouragement in music, drama, dance, recitation, art etc. Many other cultural

organizations are also popularizing Bangladeshi art and culture.

Sari or Saree is the most popular dress for the Bangladeshi women. The usual

length of Sari is about 4 to 9 meters and it is dressed up with a blouse or pullover

which is locally known as Choli. Usually, one side of Saree has beautiful border

decorated with embroidery which is draped around the shoulder. The other side is

adorned around the blouse or Choli. In the ancient times Sarees were decorated

33

with gold or silver embroideries and in the modern times Sarees are prepared with

artificial and automated designs, patterns and silk threads.

12.4 Recreation, sports and other leisure activities

Sport in Bangladesh is a popular form of entertainment as well as an essential part

of Bangladeshi culture. Kabaddi is the national sport of Bangladesh. However,

cricket and football are considered as the most popular sports in Bangladesh.

Traditional sports like Kabaddi, Kho kho, BoliKhela, LathiKhela are mostly played

in the rural areas while foreign sports like cricket, football, hockey, volleyball,

handball, golf, badminton etc. are more popular among the urban folks. The

National Sports Council (NSC) is the governing body to control all the sports

federations and councils in the country and is responsible to the ministry of youth

and sports. There are a total of 42 different sports federations affiliated with the

NSC.[1] Bangladesh Games is the largest domestic multi-sport tournament in the

country where athletes and sports teams from all the districts participate.

There are four main types of music in Bangladesh—classical, light-classical,

devotional, and popular—which may overlap in some cases. Classical music has

many forms, of which the dhrupad (Hindustani devotional songs) and the related,

shorter form called khayal are the best known. Devotional music also is

represented by qawwali and kirtana, vocal genres that are part of the common

musical heritage of the subcontinent. It is, however, in the field of local

nonclassical popular music that Bangladesh is most prominent. The forms known

as bhatiali, bhawaiya, jari, sari, marfati, and baul have no real equivalents outside

the country. The vigorous spontaneous style of these musics generally

distinguishes them from classical genres.

34

13.0 Language

The official language of Bangladesh is Modern Standard Bengali (Literary

Bengali). It serves as the lingua franca of the nation, with 98% of Bangladeshis

fluent in Standard Bengali or Bengali dialects as their first language. English,

though not having official status, is prevalent across government, law, business,

media and education, and can be regarded as the de facto co-official language of

Bangladesh.

Impacts:

As English is the language of commerce, so the organization can conduct its

business easily.

The promotional activities would be done in English, so that the tourists as

well as the local people get the message at the same time.

As the organization would recruit the local employees, it will be easy to

deal with the local consumers.

14. Recommendation:

Hershey’s Kisses Chocolate in Bangladesh will be a franchised oriented chocolate

company in Dhaka city. We have already conducted about the opportunity and

some barriers of Hershey’s Kisses Chocolate Bangladesh. In our perspective

although it has some barrier to start in Dhaka city and there also have a big

probability. Most important limitations Hershey’s Kisses Chocolate Bangladesh of

are shown below:

Though a new one, target market might be difficult although has the brand

name.

Cannot have the identical concept and business expertise.

Political instability keeps down its growth.

35

Price factors may not support.

Society and culture might not support the American creamy taste cultre.

Upscale target might not lead to make profit.

May have the limitation of distribution channel.

Bringing the raw materials from abroad can increase cost.

The barista who makes the coffee drinkable might not be experienced.

Supplier may have substitute way to supply the raw materials.

The fact remains that Bangladesh is an emerging economy and like all emerging

economies, it will be plagued by certain shortcomings. The potential major

challenges that can face the Hershey’s chocolate Bangladesh are increased

competition from other retailers with a similar industry to the price sensitive

market..

High quality service which includes Effective Employee Training, Special

pastries, selected music, warmth and comfort ambiance.

Social support to be relaxed and amalgamate the culture

Technological capacities to expand its broadness

There are a number of opportunities and success factors-

Brand image

Competitive advantages

Core business techniques

High quality chocolate

Delivery of chocolate with specialty service

Perfect product focus

Strategic advantages

Appropriate location to place the chocolate business

36

As per above discussion, we can draw the conclusion that Bangladesh is a

developing country and its markets suits innovation. As a world famous coffee

brands, Starbucks can easily run its coffee business especially in Dhaka city.

15. Analysis of the questioners and profile:

We have conducted a survey on 20 person in which 5 (20%) were male and

15(80%) were female respondents. All of their age is in between 15 to 45 years

old. The educational background of the respondent are, 10 respondents are

undergraduate, 3 respondents are JSC &PSC, 7 respondents are H.S.C and 5 are

postgraduate. There are 20 respondents’ occupations is student and rests of the 5

respondents are private employee.

Analysis of the respondents’ perception about out primacy research

5

9

6

Preference

37

Sources of Information:

http://www.hersheys.com/kisses/

http://www.hersheys.com/world-travel-retail/about-us/vision.aspx

http://www.consumerpsychologist.com/international_marketing.html

https://www.cadbury.co.uk/

http://www.nestle.com/

http://www.pranfoods.net/

http://www.perfettivanmelle.com/

http://intelligenttravel.nationalgeographic.com/2012/12/28/the-10-best-

chocolatiers-in-the-world/

http://www.chocolate.lindt.com/

http://www.mindtools.com/

http://www.slideshare.net/

http://www.boi.gov.bd/index.php/component/businesslaws/?view=lawdetails

&law_id=1113

http://www.consumerbd.org/

http://www.consumersinternational.org/our-members/member-

directory/CAB%20-%20Consumers%20Association%20of%20Bangladesh

https://agenda.weforum.org/

38

http://www.nestle.com/

http://www.perfettivanmelle.com/

http://www.bdtradeinfo.com/yellowpages/company_detail.php?cid=Cocacola+

Food+Products+Ltd.

http://www.searchenginejournal.com/marketing-101-developing-content-

strategy/127361/?utm_source=twitterfeed&utm_medium=twitter&utm_campa

ign=Feed%3A+SearchEngineJournal+%28Search+Engine+Journal%29

http://www.socialmediatoday.com/white-papers/definitive-guide-social-

marketing?utm_source=smt_twitter&utm_medium=twitter&utm_campaign=m

arketo&reference=smt_twitter

http://www.thedrum.com/news/2015/03/12/drum-launches-second-annual-

women-marketing-study

http://www.giddyyoyo.com/psychology-behind-love-chocolate/

https://www.psychologytoday.com/blog/cravings/201410/women-and-

chocolate

http://www.barry-callebaut.com/2131

http://www.sciencedirect.com/science/article/pii/S0031938411003040

http://www.schoc.co.nz/page.html?id=15

http://theheritagecook.com/chocolate-ganache-cake-src-chocolate-monday/

http://www.chocolateworld.be/

39

http://hersheyschocolateworldlasvegas.com/

Stephen P. Robbins and Timothy, A. Judge. Organizational behavior, Page- 538

Sales planning and operation, David Jobber and Geoffrey Lancaster, Page-492

The Starbucks Corporation: Past, Present and Future By Hervé R. AUCH-ROY -

PEN: 1207HA December 21, 2004.

Starbucks: Part of Youth Culture by Peter Dey

The Future of Starbucks : An Analysis by Team Macchiato by Zack Higbee, Chen

Yee Liaw ,Calvin Ting, Kevin Tjho, Michelle Ton

http://www.bizjournal.com

http://www.street84.tripod.com

http://www.cargocollective.com

http://www.marketresearch.com/Global-Research-Data-Services-v3891/Coffee-

Bangladesh- 7474447/

40

16. Appendixes:

Yes / No (please circle)

1. Which Age range are you in?

0-10 11-15 15+

2. Male Female

3. Please select you favorite Chocolate.

Cadbury kitkat Perfetti Bar GEMS

4. What do you like in chocolate?

Candy bar Nut Chocolate

5. Do you like chocolate? Yes / No

6. Do you buy a bar of Chocolate every day? Yes / No

7. Do you find chocolate expensive? Yes / No

8. Do you think Milk chocolate has a great taste? Yes / No

9. Which Chocolate brand you like the most?

Cadbury Nestle Others

10.Do you often relate Cadbury to Chocolate? Yes / No

11. According to you what does Cadbury stand for?

Joy Togetherness Happiness Purity Excitement Love

This questionnaire is design to determine the factors that have impact of cultural

dynamic in global market place. this is an academic exercise and no part of the findings will be

disclosed to any quarters.

41

12. Do you feel Chocolate has a strong impact on people’s minds and hearts?

Yes / No

13. Do you think Chocolate Brand Impact on peoples mind? Yes / No

14. Do you think peoples like new taste of new chocolate? Yes/No

15.Do think peoples have fascinations on new chocolate product? Yes/No

16. Do you think TVC/ Ad create impact in Chocolate? Yes/No

17. Do you prefer your chocolate bar to be one of the following?

Chewy Melts in Mouth Frothy Chocolate With

"Bubbles"

Crunchy Creamy

18.Do you prefer raisins in your chocolate bar versus nuts?

Raisins Only Nuts Only Raisins and Nuts Others

19. . What do you think is a reasonable price for a snack size chocolate bar?

25-40 BDT 50- 80 BDT 80-120 BDT 150+ BDT

20.(Honestly) How often do you eat chocolate?

Every day each 4-6 days Very rarely

Each 2-3 days every week or two Monthly