Strategic gains of by-product marketing: a study on selected companies of Bangladesh

Abstract

Products that are produced during the production process of some other product are commonly known as by-products. In most manufacturing companies one or more by-products are produced along with the primary product. Some companies use these by-products efficiently while others do not. Companies that market by-products appropriately can leverage this ability to acquire competitive advantages. This study attempted to understand the scenario of by-product marketing in Bangladesh through the analysis of a number of RMG companies, i.e., Ananya Fashion Ltd, Barnali Fashion, Florescent Apparels Ltd, Outright Fashion Ltd., Babylon Garments Ltd, Square Fashion Limited and S. Islam Fashions Limited. The study found that culture within most firms is devoid of the initiative that is required to capitalize the opportunity to market by-products. Only one company among the cases observed has pursued by-product marketing with fervor. Two other firms have taken some initiative in this regard but are not realizing the full potential of the by-products. Scenario of two companies’ is average; use of byproducts in the rest of firms studied is negligible.