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Running Head: MARKETING PROBLEMS IN A.V.R. BANGLADESH 1

EXPLORING MARKETING PROBLEMS IN THE CONTEXTOF A.V.R. BANGLADESH

Submitted By:

TAREK ALAM

I.D. # 0320363

Submitted To:

MOHAMMED SOHEL ISLAMLecturer, Marketing

School of Business

An Internship Report Presented in Partial Fulfillment of theRequirement for the Degree Bachelor of Business Administration (BBA)

INDEPENDENT UNIVERSITY, BANGLADESHMay 2012

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MARKETING PROBLEMS IN A.V.R BANGLADESH 2

Letter of Transmittal

May 10th 2012

To

Mohammed Sohel Islam,

Lecturer, Marketing,

School of Business,

Independent University, Bangladesh

Sub: Submission of Internship Working Report

Dear SirHere is my internship report on Exploring Marketing Problems in the Context of A.V.R.Bangladesh. I am submitting this report as a part of my internship in A.V.R.Bangladesh.

It gives me immense pleasure to tell you that working on this internship report has givenme a wide range of exposure. To prepare this report, I have faced extensive one on oneinterview, starting from clients in the Middle East to the local work force. It has taughtme the value of patience, and has given me a higher insight on the level ofcommunication in the practical world.

The report is based on my experience in the institutions Marketing division. I have triedto accumulate what I learned during my stay, in this report.I shall be encouraged if you receive this report.

______________________

Tarek Alam

I.D. # 0320363

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ACKNOWLEDGEMENT

This report would not have been possible without the practical orientation I

received at A.V.R Bangladesh. I would like to thank my supervisor Mr.

Haseeb Alam, C.E.O of A.V.R BD, for his constant guidance and

supervision at work.

In addition, I would also like to thank my faculty supervisor Mohammed

Sohel Islam, for his guidance, instructions, and patience which made this

report possible.

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TABLE OF CONTENTS

Chapter 1: Introduction6

Chapter 2: Methodology..11

Chapter 3: Company Profile....13

Chapter 4: Literature Review..22

Chapter 5: Findings & Recommendations. 26

Chapter 6: Conclusion..30

REFERENCES..32

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TABLE OF FIGURES

Table 1.1: Different categories of Bangladeshi migrant workers.8

Figure 3.1: Company Logos19

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EXECUTIVE SUMMARY

The impact of globalization on the world economy is becoming increasingly all

pervasive. Its positive impact is no longer confined to the developed countries. Even a

developing country like Bangladesh, with its weak economy, is looking at globalization

to strengthen its base. In the last decade cross border movement of people across nations,

especially the movement of skilled and the unskilled labor from developing to

developed countries has resulted in significant increases in the incomes of the former

through remittances of foreign exchange by their overseas citizens. This phenomenon has

given a boost to the economies of the developing nations. Bangladesh has an edge over

many other developing countries in its abundance of human resources. This has resulted

in its emergence as a key global player as a source country for the supply of manpower to

the developed nations. This report sets out to:

Establish the importance of A.V.R Bangladeshs role in developing the overseas

manpower industry as one of the growth drivers of Bangladeshs economy.

Scrutinize all the marketing aspects within AVR BD and recommend possible

changes.

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Chapter 1

INTRODUCTION

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from 1976 to 2005. The top two destinations are Saudi Arabia (50.58 per cent), UAE

(13.24 per cent). However, in 2006 for 377591 Bangladeshi migrant workers the top two

destinations are UAE (36 per cent), Saudi Arabia (29 per cent). Table 3.5 shows the

categories of the migrant workers that have migrated from Bangladesh at different

periods since 1976. However, there are differences of opinion on slotting migrant

workers between semi-skilled and skilled categories. Some people believe that a large

proportion of the workers classified as skilled actually belong to semi-skilled category.

Table 1.1: Different categories of Bangladeshi migrant workers

YEARS PROFESSIONAL SKILLED SEMI-SKILLED

UNSKILLED

1976-1985 6.34% 34.76% 7.35% 51.54%

1986-1995 4.72% 32.12% 20.18% 42.97%

1996-2004 3.90% 32.01% 15.19% 48.88%

Source: Bureau of Manpower, Employment and Training

From the above table, it appears that Bangladeshi migrant labour force is mostlyunskilled and semi-skilled. The contribution of professional and skilled labour is small.

However, there is a growth in the overall export of semi-skilled and skilled manpower

from Bangladesh.

1.1 Background of the Study

Manpower supply or Human resources supply is affected by various factors both internal

and external. In this report we are discussing multiple situations leading to manpower

requirements and supply.

After estimating future supply of human resources, sources of supply should be analyzed

with a view to ensure the availability. Both internal and external factors affecting

manpower supply should be analyzed. Internal factors include: training facilities, salary

levels, benefits, inter-personal relations, company programs, scope for self-advancement

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up with commitment and competent workforce, the output is bound to be of great

magnitude as such with A.V.R BD.

The primary objective of A.V.R BD is to create a quality outlet for addressing the ever

growing international demands for skilled, semi skilled and unskilled workers for the

Human Resource Supply Industry. The company offers a combination of services that is

carefully addressed as per the specific requirements of all our customers.

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Chapter 2

METHODOLOGY

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2.0 MethodologyThe methodology includes literature review, secondary data analysis, interviews with the

responsible person, case study followed by observations to effective Descriptive research.

Literature Review and Secondary Data Analysis : The Literature searching, secondary

data analysis and the case study are the sources for describing the marketing strategy and

the trade marketing activities and the Integrated Marketing communication within A.V.R.

Bangladesh. The Literature search is concluded from the synopsis of the case studies

conducted by A.V.R. Bangladesh.

Primary and Secondary Data: In the report, primary and secondary data has been

collected through interviews and contacts with A.V.R. BDs personality concerned.

Interviews have been administered by formal and informal discussion. No structured

questionnaire used. Information regarding office activities of A.V.R. BD were collected

through consulting A.V.R. BDs records and discussion with A.V.R. BDs personal.

Qualitative Research, Surveys and Observations: A qualitative study will be

conducted to understand the relevant issues following certain surveys of experts

(knowledgeable persons), focus groups and in-depth interviews. This is done for

understanding the marketing activities and its purpose followed by a descriptive study

based on primary data using surveys and observations.

2.1 Probability SamplingThe nature of this study was explorative research, and information was gathered through

extensive one-to-one interviews with AVR BDs Marketing Department, some of the

Clients and also the candidates. The researcher covered the geographical base of Dhaka

city, and samples were selected on simple random sampling method.

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2.2 Simple Random Sampling

For this report, our main goal was to assess the different marketing issues involved

between clients and candidates, within AVR Bangladesh. Before starting this research, it

was imperative to get the sampling frame organized. To accomplish this, we had to

identify every client over the past 12 months. As AVR BD has a thorough and accurate

list of all its clients and of all the marketing activities undertaken, it was easier for us to

draw the sample. With the development of inexpensive computers, it has become much

easier nowadays to organize the sample frame. Most computers can generate a series of

random numbers - we copy and pasted the list of client names into a column in an

EXCEL spreadsheet. Then, in the column right next to it, we pasted the function

=RAND() which is EXCEL's way of putting a random number between 0 and 1 in the

cells. Then, sort both columns -- the list of names and the random number -- by the

random numbers. This rearranged the list in random order from the lowest to the highest

random number. Then, all we did was taking the first hundred names in this sorted list.

Simple random sampling is simple to accomplish and is easy to explain to others.Because simple random sampling is a fair way to select a sample, it is reasonable to

generalize the results from the sample back to the population.

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Chapter 3

Company Profile

A.V.R Bangladesh

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3.0 A.V.R Bangladesh

AVR Bangladesh was established with a vision to create a quality outlet for addressing

the ever growing international demand for skilled, semi skilled and unskilled workers in

the overseas development boom.

Over a very quick span of time, AVR BD has earned outstanding recognition home and

abroad for their qualitative services and forward looking attitude. Adapting to

modernization, and addressing to the actual demand from the clients perspective has beenthe stance for the company since inception. Within a very short span of time, the

company has earned recognition as one of the leaders in the skilled, semi skilled and

unskilled human resource supply chain from Bangladesh, and the above have been

possible for the professionalism factor practiced by the company.

The company strongly believes in the development of human skills, thus the group

incorporated AVR Bangladesh Training & Testing Center , which was established in

the very center of Dhaka City. Adding value to human lives has been a motto for the

company. A.V.R BD strongly believes in the Philosophy of RIGHT RECRUITMENT /

RIGHT PLACEMENT . As a professional Human Resource Supplier, they never leave

any thing for granted. All activities are carefully planned and methodically maintained to

achieve total service for both clients and candidates.

The company always stands guarantee as regards to the workforce mobilized. If the

worker is found not up to the standard during the probation period, they always make thereplacement free of charge and at no cost to the employer. AVR BD always believes in

long term relationships. It never visions a client as a one time source of business; rather

strive to develop a long lasting bond. Its objective is to sustain the pattern of mutual

growth with its partners.

The company incorporates a pool of highly qualified and experienced professionals in the

Development, Marketing, Management and Training Divisions, and the strengths of AVR

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BD is in its committed services and its dynamic team members. Operational excellence is

a result of modern systems implemented in its due place, but when it is tied up with

commitment and competent workforce, the output is bound to be of great magnitude as

such with AVR BD.

The primary objective of the company is to create a quality outlet for addressing the ever

growing international demands for skilled, semi skilled and unskilled workers for the

Human Resource Supply Industry. The company offers a combination of services that is

carefully addressed as per the specific requirements of all our customers.

AVR Bangladesh is one of the leading facilitators for interviewing and selecting

prospective candidates for the following job category: Civil & Mechanical Engineers,

Civil & Mechanical Foreman, Construction Labors, Masons, Carpenters, Painters, RCC

Steel Fixers, Rod Benders, House Wiring Electricians, Plumbers, Pipe Fitters, Pipe

Fabricators, Welders (3/4/6 G, Tack / MIG/ TIG), A/C Technicians, Duct Fabricators,

Duct Fitters, Insulators, Gypsum Carpenters & Fixers, Hotel Crew, F&B Categories,

Cleaners, Security Personal, All Types of Drivers, Sewing Technicians, Educated

General Helpers, etc.

The company has one of the most modern facilities to conduct trade tests for all the above

mentioned categories. AVR Bangladesh also maintains an extensive computerized

database which is equipped with modern data processing technologies.

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3.1 Categories Addressed by A.V.R Bangladesh Construction & Building Industries :

Brick LayerMasons Brick and TilesShuttering CarpentersSteel FixersPaintersPlumbersElectrician

Drivers (trailer, heavy & light)Duct Men Fitter / Fabricator / InsulatorPipe FittersPipe FabricatorsAluminum or Glass FabricatorScaffoldersSteel FabricatorsSupervisorsWelders (TACK- 3 / 4 / 6 G)Welders (TIG & MIG)Gypsum Carpenters and Board Fixers

Air Conditioner TechnicianConstruction or General Helpers

Engineering:

Civil EngineerMechanical EngineerElectrical EngineerMaintenance EngineerSite Supervisors in Respective FieldSite Foreman in Respective Field

Agriculture Industries:

FarmersFishermanFruits PluckingGardenerPoultry Hatchery Worker

Hotel Crew (Facilities Management):

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Waiter/WaitressBell BoyChefCleanersExecutive House KeeperF&B ManagerGreen Keeper/MowerHair DresserInterpreterKitchen StaffLaundry ManMaintenance EngineerAir Condition TechnicianUtility Worker

Others Categories:

Taxi DriversValet ParkersMunicipality CleanersGeneral CleanersSewing Operators (Various Machines)Pattern MakersSecurity GuardsAccountant and Related ProfessionalsI.T. ProfessionalExterior Building Clean

3.2 Training & Testing

AVR Bangladesh Testing & Training Facilities An institution dedicated to convert Human Resource into Human Asset. 7,400 Sq. Ft. Area Dedicated for Training, Testing and Development of AVR

Human Resource. Residential and catering facilities provided to all candidatesenrolling with AVR Training and Testing Center. Expatriate Engineers, Trainers, Mentors and Craftsman have been added for the

Training and Development of likely candidates enrolling with AVR Training andTesting Center.

A Ready pool of experienced candidate available for deployment. 300 to 350 Students enrolled with AVR Bangladesh Testing Center at any given

month. Located @ Central Dhaka, yet away from the hustle and bustle of the city. 15

Minutes away from the Airport or Hotel Radisson or Hotel Westin.

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3.3 ClientsThe following is just a percentage of the many esteemed clients and organizations that AVRBD have been privileged to work for

Al Habtoor EngineeringAl Arif GroupGulf LineModern Construction,Valtrans Al HabtoorAl NaboodahAl SwissBerger Paint Emirates Ltd.Dhabi GroupAl Rajhi GroupDubai Gulf Contracting CompanyAl Shafar General ContractingSharjah TowersApron KitchenLarson ToubroBin Belaila Baytur LLCM/s. Abiat Oleo IndustriesEastern Contracting CompanyEastern HoldingsWatermanBin Zayed

KONE Middle EastCivilcoRoyalton HoldingsTanzifco LLCTrans Emirates ContractingEmirates General ContractingCompany (EGC)

S.S. Lootah GroupBukhatir GroupIntermass Contracting Co. LLCGuris & ACD JVLeightonAl AttarConstruction Technology Contracting -RAKPrisom ConstructionContracting - RAK

NPGC QatarMenasco Mech LLCRoshan ConstructionPrecision Employment and TrainingServicesTransguard LLCFrench D cor LLCCore ConstructionRAK Pre Cast FZCGunal Construction TAV GulfDelta Al Emarat

Al Dana LLC.Best Building CompanyCairo CompanyAl Essa InternationalM/s. Quten General MaintenanceAl Sahel ContractingClock Work LLC

Crescent Marine Engineering Co. LLC.Dhabi ContractingEMCO Building and Contracting LLCKhalifa Darwish CompanyAl Atlal ContractingSantini UniformsBin Ham Electro MechanicalRoadster Diner LebanonSaraya Contracting LibyaHi-Tech Concrete Products LLCPowertrack Steel Industries LLCStallionBu Falasa CompanyJTC - Al Jaber Group - QatarCED - Al Jaber Group QatarJEM - Al Jaber Group QatarD.S. Constructions Ltd. - LibyaBlack Cat Engineering QatarKhalid General Maintenance,Union Chemicals Abu Dhabi,Al Tarif General Transportation,EB International,Top Furniture DubaiAl Nakhreh Construction LLC.Etc.

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Fig # 3.1 Company logos

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Chapter 4

LITERATURE REVIEW

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4.0 Middlemen

Nowadays, the income potential of a recruitment business is certainly causing many

companies and independent businessmen to enter the workforce management field and

earn good money. The main key for starting a recruiting business is getting connected

with employers as well as employees or candidates. The business may look fruitful on

paper, but one needs to prove his practical proficiency as a middleman between

companies and applicants. Let us now move our attention to few important tips on

opening a professional hiring agency (Stephen Rampur, 2011).

Unskilled and semi-skilled workers are not allowed to migrate directly to a foreign

country. They need to be recruited through manpower agents and contractors after which

calling visas are issued to them. Thus the institutional structures of the origin country

oblige the poor migrants to develop vertical links or weak ties with central manpower

agents. The future migrants therefore, rely on their village based middlemen, or dalal,

to gain access to networks with manpower agents in Dhaka. In fact, it is found that themajority of the migrants depend on these types of governmental and non-governmental

manpower agents (Nayeem Sultana, 2008).

4.1 Candidates being Cheated

Ever since Manpower Export commenced in Bangladesh, complaints and allegationsregarding Recruiting Agencies for swindling, cheating [6] and lack of business ethics, have

caught the attention from the Government to bring in regulations and Human Rights

Organizations along with the state operated BMET ( Bureau of Manpower Employment

and Training ) promoting transparency, know-hows of recruitment process, awareness

and general knowledge on cultural diversity & work environment abroad.

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Competition between middlemen from the overseas employing countries, aggressive

marketing by Recruiting Agents and immense interest & demand from Bangladeshi

workers have inflated the migration cost greatly. This has been widely criticized by and

brought deep concerns to many Developed Countries and Human Rights Organizations,

which led the current EC to take measurements through round table discussions leading

to ongoing efforts for an affordable, reasonable yet competitive migration cost.

March 13, 2007, saw BAIRA' s elected Executive Committee to be dissolved and it's

President MAH Salim (MP) of Silver Line Associates , arrested [8] by the Joint Forces.

Accusations of malpractices, monopolization of manpower export by few and the illegal

opening, operating and owning of a branch, ' BAIRA KL SDN BHD' in Kuala

Lumpur, Malaysia.

4.2 Issues of Bangladeshi Migrant Labor

Some of the important issues and problems facing the migrant labour as reported in

various studies and media are:

Recruitment agencies exploit the migrating workers in many ways. Migrants are forced to

pay huge fees as bribe to get work permits and visa documents. The agencies sometimes

export people with fake documents which cause great suffering to the migrants.

A large proportion of the workers abroad send the remittances via hundi instead of

through bank transactions as bank procedures are difficult and costly and the funds

delivery takes comparably longer time.

Skill certification requirements in the host country either prevent market access causing a

rejection of the work permit or visa application, or limit his/her scope for work to specific

activities once he/she enters the overseas market, preventing him/her from practising the

core skills.

Although intra-corporate movement is already one of the most liberal categories within

GATS Mode 4, due to negligible presence of Bangladeshi enterprises abroad, Bangladesh

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is not in a position to benefit from this opportunity unlike India and China. Most of the

unemployed skilled and non-skilled workers need to migrate to other countries on the

basis of acquired market access through bilateral foreign relations or markets explored by

the recruiting agents.

Bangladesh is a Muslim country and has a dubious international image due to some

religious extremist groups. Hence it is not on the priority list for many of the labour

demanding countries. There is a crying need to build a proper image of the country

abroad to get benefit of foreign labour markets.

The trade attachs of the country abroad normally facilitate Bangladeshi emigrants or

take care of them in emergencies. The competitive situation, however, demands that theyshould go further and find market access to promote this sort of trade.

Due to social and cultural reasons the percentage of women workers is low. They

comprise around one or two per cent of the total overseas workers. They have restrictions

at various levels to go abroad. However, the global opportunities for some occupations

dominated by women are huge and competition is far less.

In many countries where Bangladeshi immigrants work there is a substantial population

of illegal migrants from Bangladesh as well as other countries. This has made the host

country governments and the locals increasingly wary of migration.

In Bangladesh, migrant workers lack proper bodies to represent them both in their home

country as well as the host countries. Associations that represent migrant workers are the

Welfare Association of Repatriated Bangladeshi Employees (WARBE) and the

Bangladeshi Ovhibashi Mohila Sramik Association (BOSMA), formerly known as the

Bangladeshi Women Migrant Association (BWMA). These associations are plagued by

shortage of financial resources and organizational capacity and have very limited reach

(Professor Sougata Ray, 2007).

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Chapter 5

FINDINGS & RECOMMENDATIONS

A.V.R Bangladesh

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5.1Company Expecting Additional Money for the Visas Issued

According to the U.A.E laws, companies are not allowed to take any additional financial

charges against their recruited candidates but in reality, certain companies charge a

hefty amount to cover their visa costs.

For e.g. Client called Emirill LLC do not charge any additional fees for their recruited

candidates. In this case, AVR BD can comply with the government regulated rate of amaximum service fee of Tk. 84,000, which is inclusive of every formality, starting from

air fare, lodging, food up to the reaching their final destination.

This has turned out to be a major problem, as this trait is limiting the number of potential

clients for AVR BD. Top class companies which practice this policy of charging extra for

the visas, in turn limits the potential of conducting further business with them.

Recommendation

The government should make it mandatory for all companies to genuinely get their

demand letters attested by the local Bangladeshi agencies from the destination of

recruitment. The embassies will only attest documentation only if they get an assurance

from the employer, that there will be no financial charges to candidates against their

recruitment.

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5.2 Too Many Middlemen Involved in Reaching Potential Employee

Middlemen increase the cost for the employee because every middleman expects a

commission for bringing this opportunity to the employee. By the time a potential

employee reaches the agency, there might be up to more than 3 middlemen already

involved.

Recommendation

Recruitment agencies should start having regional offices AVR BD has regional

offices in Chittagong and Chapainawabganj, where a data bank has been created for

specific skilled candidates:

For e.g. Chittagong Welders are readily available in this region.

Chapainawabgang Masons are readily available in this region.

This makes the recruitment process much transparent and cost effective for the potential

employees.

5.3 Candidates Back-out at the Last Moment

After a visa has been issued, some candidates decide not to fly reason being, family

obligations, homesick, etc. In this case, AVR BD gets stuck with the visas for which a

hefty amount of penalty is charged by the client.

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Recommendation

Certain clients replace the visa at an extra charge depending on the validity of the labor

approval.

5.4 Ticketing

Too many taxes are being imposed on each ticket, hence the price of passage goes up

significantly, and i.e. recruitment cost goes up.

Recommendation

AVR BD has ventured into the ticketing business by opening their very own travel

agency called AVR BD Aviation

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Chapter 6

CONCLUSION

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This report has outlined the contours of a development strategy that has international

migration as a critical pivot. The benefits are potentially very significant but they cannot

be fully reaped by individual initiatives alone. The government has to facilitate the

reaping of benefits so that social impacts are large. Laws have to be framed to minimize

illegal traffic and labour exploitation. Networking with other governments and Diasporas

is of paramount importance. Institutions must be created to process labour market

information and trends. Training institutions and financial institutions have to play an

imaginative and enabling role. This is where the government has to create incentives for

private sector partnering the public sector in reaching developmental goals. There are

challenges too for ensuring that some of the remittances are used for durable capital

accumulation and the creation of local public goods. Labour markets are changing quite

rapidly, and labour market integration is perhaps the next stage of globalization.

Competition from other developing countries is likely to be intense. Bangladesh has a

head start in having created migration flows of strength and value. The next challenge isto sustain this advantage and leverage global opportunities in a decisive and unambiguous

manner. A comprehensive policy plan may be able to deliver all the gold that lies at the

bottom of the migration pyramid.

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REFERENCES:

http://bangladesh.um.dk/en/~/media/Bangladesh/Documents/Content%20English/

Development%20issues/DBP%20Downloads/Migrant%20Workers%20Remittanc

es%20in%20Bangladesh.ashx

http://www.ilo.org/wcmsp5/groups/public/@ed_emp/@emp_elm/documents/publ

ication/wcms_114033.pdf http://ageconsearch.umn.edu/bitstream/12860/1/er950015.pdf http://www.citeman.com/468-analyzing-sources-of-supply-of-human-

resources.html

http://www.avrbd.com/home.html http://books.google.com.bd/books?id=65aSWwEiDu4C&pg=PA202&lpg=PA202

&dq=middlemen+involved+in+manpower+business&source=bl&ots=f7xl28o9Ti

&sig=r7WwM_L0Rgb8F_Q8OuzKID-fqiI&hl=en&sa=X&ei=wUKoT8G8NYjXrQeT8fWAAg&redir_esc=y#v=onepag

e&q=middlemen%20involved%20in%20manpower%20business&f=false

http://www.buzzle.com/articles/starting-a-recruiting-business-how-to-start-a-

recruitment-agency.html

http://en.wikipedia.org/wiki/Bangladesh_Association_of_International_Recruiting

_Agencies

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