MBA Marketing Project Reports

PTCL PROJECT

2010-05-21T06:36:00.000-07:00

Introduction
Telecom Sector of Pakistan
History of Telecommunication
Four Bodies of PTCL
Historical Background
Industrial Analysis of PTCL
Mission statement and objectives
Privatization of PTCL
Summary of Events
Subsidiaries

1.1 Introduction
Six years into a year century, the telecom sector of the world finds itself at crossroads, after changing itself almost beyond recognition over the last 20 years. Privatization and competition are the order of the day, with a majority of countries having adopted these policies to advance their telecom sector. The results have been impressive: the industry has grown at an unprecedented pace. Although there has been phenomenal growth in Pakistan, especially in cellular mobile communication and in the internet, yet the tele-density remains almost stagnant.
1.2 Telecom Sector of Pakistan
The telecom sector of Pakistan has also entered into a new era. The monopoly of PTCL is now over and the sector is moving towards liberalization. While liberalization and competition are synonymous, the future scenario also poses some challenges to the market dominance of PTCL. The company is ready to face this challenge and maintain its revenue streams in the face of forthcoming competition.
1.3 History of Telecommunication
From the humble beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, to this very day here is a story of commitment and vision. The history of telecommunication in the Sub-Continent is as old as the history of our slavery. In the subcontinent, before Independence this sector was under the Indian Post & Telegraph Department and developed as a successful industry.
The role of telecommunication in Pakistan can be broadly divided into four phases: 1.3.1 Pakistan Post & Telegraph (P&T)
This department started its telephone service with only 12346 telephone lines and seven telegraph offices all over Pakistan. All the telephone system at that time was manual. This department continued its business up to 1962. At the time of independence the postal and telecommunication services were performed by a single department known as Pakistan Post & Telegraph (P&T). The Government of Pakistan adopted the Government of India Telegraph act 1885 to control and direct the activities of telecommunication.
1.3.2 Pakistan Telephone & Telegraph (T&T)
Pakistan Post and Pakistan Telephone & Telegraph (PT&T) under the presidential ordinance was the first step towards reforms in the telecommunication sector. It was made in 1962, when the Ayub Khan’s government decided to split up the P&T department into two separate departments. Director General headed this department. The decision making power was concentrated with the post of DG, while the responsibilities were delegated to General Managers and Chief Engineers throughout the organization. The PT&T were in fact a civil service department under the ministerial control. The PT&T organizational structure had 20 Chief Engineers and General Managers reporting directly to the Director General. The centralized structure of PT&T caused inefficiency in operations and long delay in implementing decisions. At the time of inception of PTC the total number of employees working in PT&T was 45686 and the total network comprised of 922,000 telephone lines.
1.3.3 Pakistan Telecommunication Corporation (PTC)
The government of Pakistan pursued the deregulation and liberalization policy in production and service industry during the decade. The major change in this regard was privatization and deregulation of many of the departments of government of Pakistan. The decade of 1990s brought about many changes in the economic structure of Pakistan. The objective was to reduce the burden of the government, minimize the bureaucratic influence and improve the efficiency of these departments.
A major breakthrough in the history of telecommunication in the country occurred with the gradual deregulation and privatization of T&T. At the first stage Pakistan Telephone & Telegraph Department (T&T) was converted into a statutory corporation Pakistan Telecommunication Corporation. On December 15, 1990 the PT&T department was transformed into Pakistan Telecommunication Corporation with a legal identity separate from the Government. This change in the statute, introduced by the Government of Pakistan enabled PTC to move from administrative to contractual relationship with its customers. It provided the opportunity for the development of telecommunication facilities to an unprecedented level and also for an increased customer satisfaction.
1.4 Four Bodies of PTCL
Under the PTC Reorganization Act, 1996 the telecommunication sectors was split up into four bodies.
· Pakistan Telecommunication Company Limited (PTCL)
· Pakistan Telecommunication Authority (PTA)
· National Telecommunication Corporation(NTC)
· Frequency Allocation Board (FAB)
1.4.1Pakistan Telecommunication Company Limited (PTCL)
A company established to undertake the telecommunication business formally carried by Pakistan, is Pakistan Telecommunication Company Limited (PTCL). Pakistan Telecommunication Corporation (PTC) was transformed into Pakistan Telecommunication Company Limited (PTCL) on January 1, 1996 under Pakistan Telecommunication Reorganization Act, 1996 according to which PTCL took over all the properties, assets, rights and obligations of PTC.
1.4.2 Pakistan Telecommunication Authority
Pakistan Telecommunication Authority is a regulatory body responsible for monitoring the telecommunication business in Pakistan. It frames rules and regulations for private telecom companies such as mobile phone companies, Internet service providers, paging companies and pay card phone companies. It also issues licenses to the new companies entering into this business.
1.4.3 National Telecommunication Corporation (NTC)
National Telecommunication Corporation (NTC) is responsible to provide the telecommunication services to the various departments of government and armed services.
1.4.4 Frequency Allocation Board
Pakistan Telecommunication Company Limited is the primary provider of telecom services in Pakistan. The range of its services includes basic telephone, telegraph, fax, telex, E-mail, digital cross connect, Public data network, Internet, ISDN and other digital facilities. The total number of installed telephone lines (ALI) at June 30, 1998 was 35, 19,877 while the total number of actual lines in service (ALIS) was 26, 60,898. The difference between ALI and ALIS is due to pending and potential future demands.
1.5 Historical Background
1947
Posts & Telegraph Dept. established
1962
Pakistan Telegraph & Telephone Deptt.
1990-91
Pakistan Telecom Corporation
ALIS: 850,000Waiting list: 900,000 Expansion Program of 900,000 lines initiated (500,000 lines by Private Sector Participation400,000 lines PTC/GOP own resources).
1995
About 5 % of PTC assets transferred to PTA, FAB & NTC.
1996
PTCL Formed listed on all Stock Exchanges of Pakistan
1998
Mobile & Internet subsidiaries established
2000
Telecom Policy Finalized
2003
Telecom Deregulation Policy Announced

1.6 Industrial Analysis of PTCL
PTCL is the exclusive provider of basic telephony in Pakistan with over 3.2 million telephone lines in service. Besides providing fixed line, value added and other ancillary services, PTCL owns subsidiaries that provide cellular and Internet services. Since its transformation from a public sector corporation into a publicly listed corporate entity in 1996, PTCL has implemented an aggressive restructuring program, the primary aim of which is to improve profitability through increased customer focus and efficiency and to prepare the company for the highly competitive environment envisaged once PTCL's exclusivity on fixed telephony expires in December 2002.
Followings are the main subsidiaries of PTCL;
Paknet
Ufone
TIP
CTI
1.7 Mission Statement
“To be the leading telecom operator in Pakistan, ensuring customer satisfaction using state- of-the -art technology, with a view to improve shareholder’s value”.
To achieve our vision by having:
· An organizational environment that fosters professionalism, motivation and quality.
· An environment that is cost effective and quality conscious.
· Services that are based on the most optimum technology.
· Quality and time conscious customer service.
· Sustained growth in earnings and profitability.
1.7 Vision Statement

To be the leading ICT Service provider in the region by achieving customer’s satisfaction and maximizing shareholder’s value.
1.9. Core Values
· Professional Integrity
· Customer Satisfaction Corporate Culture
· Team Work
· Company Loyalty
· Corporate Culture
1.10. Objectives of the Company
The primary objective of Pakistan Telecommunication Company Limited is to provide telecommunication services to the people in the country or in short to satisfy the telecommunication needs of its customers. Responding to the rapid economic and technological growth, the company is determined to meet the challenge of expanding needs of telephone and data communication such as public data network, integrated services digital network and Internet services. The major focus of attention is to improve and expand the services, minimize the faults and provide communication facilities to rural areas. It is also one of the major objectives of management that the company should not improve its performance but also encourage the private sector to enter the Tele business. The company has entered the domain of free market economy, which necessitates the liberal management policies and private sector. The following basic policy steps have been taken to meet the objectives laid in PTCL Act to expand and operate telecommunication services in the country. The main objective of any company is to earn the profit and minimize expenses by winning goodwill in the market. The objectives can be divided into two phases:
§ Financial Objectives
§ Marketing Objectives
The following are the long-term objectives of the organization.
§ Telecom services all over the country.
§ Plan, establish and maintain telecommunication
§ Acquire, promote and manage research and development , transfer of technology and software development including manufacturing of telecommunication equipment and plant
§ Enhance efficiency, improve quality and expand the system to meet custom’s satisfaction and provide service on demand.
§ Create congenial climate for binding of human skill and horizon of employees through training and education.
§ Convert its cash basis single entry accounting system to accrual basis double entry system meeting the commercial international accounting standards.
§ Launch consumer satisfaction survey.
§ To introduce computerized directory assistance and complaint services reform billing and a revenue collection system.
§ Strengthen relation with foreign international administration, entities, services providers, international and regional telecom organizations for better international communication and technical cooperation in telecommunication business.
§ Expand customer awareness of all value-added services of PTCL.
§ To improve the efficiency of Customer Service Centers by deputing qualified persons who are well aware of public relation techniques.
§ To introduce new services of audio Tex and video conferencing for the business community.
1.11 Brief History of PTCL
Pakistan Telecommunication Company Limited (PTCL) was incorporated in Pakistan on December 31, 1995. It was established to undertake the telecommunication business formerly carried on by the Pakistan telecommunication corporation (PTC), the business was transfer to the Company on January 1, 1996 under the Telecommunication (Reorganization) Act, 1996 at which date PTCL took over the properties, rights, assets obligations and liabilities of PTC except those transfer to National Telecommunication corporation (NTC), Frequently Allocation Board (FAB), Pakistan Telecommunication Authority (PTA), and Pakistan Telecommunication Employees Trust (PTET). The Company also commenced business on January 1, 1996.
1.12 Privatization of PTCL
Saturday, the 18th June 2005 was an important day in the history of PTCL, which witnessed the successful sale of 26% strategic shares to Emirates Telecommunications Corporation “Etisalat” For many, the process of PTCL Privatization might have been a routine government affair, but factually the process has been a long drawn and an arduous one.
1.12.1 The Strategic Scale
The issued share capital of PTCL is PKR 51,000,000,000, dividend into 51,000,000,000 ordinary shares of PKR 10 each, of which approximately 3,774,000,000 are “A” ordinary shares and 1,326,000,000 are “B” ordinary shares. In simple terms each “B” ordinary share carries four votes and each “A” ordinary share carried one vote. In respect of dividends, voting rights on all matters (other than election of directors) and all other rights as shareholders, there is no difference between “A” ordinary shares and “B” ordinary shares. Meaning thereby that the strategic investor after obtaining 26% of shares (all “B” shares) would manage the affairs of the company, but its share in the dividend would remain 26% while approximately 12% would go to the current investors in the market and 62% to government’s kitty.
1.12.2The process: Historical Perspective
The privatization process for the sale of PTCL 26% strategic shares commenced in the year 1998 when a consortium comprising Goldman Sachs. Global Securities Pakistan Limited Analysis, Allen & Overy and Rizvi, ISA & Co (collectively the “Financial Advisory) Consortium” or the “FAC”) were hired by the Government of Pakistan “GOP” for this transaction. However, the transaction was impacted by the sanctions imposed on Pakistan in the after match of nuclear detonation in 1998. In the year 2001, JPMorgan joined the Financial Advisory
Consortium (FAC) and took the lead on marketing and executing the transaction. The years 2001-2003 witnessed the transaction being aggressively marketed. However, the process could not be further progressed because Pakistan was not perceived as an attractive investing destination primarily due to post 9/11 implications. This notwithstanding, preparation for due diligence i.e. Data Room updating and Information Memorandum (IM) were almost completed by August 2003 but the transaction could not proceed ahead as 2 out of 3 pre-qualified bidders did not proceed further. Meanwhile, during November 2003 to May 2004 there were serious discussions and considerations at the Ministry of Information Technology “ MOIT” and Privatization Commission (PC) on PTCL restructuring i.e. unbundling the local loop. After a protracted debate on various options the president of Pakistan decided in November that PTCL should be sold as an integrated entity.

1.12.3 The Bidders
In the final process of bidding. Which was concluded in June 2005, 18 investors submitted Expression of Interests “Eols” out of which did not submit Statement of Qualifications (SoQs)? Out of 12 SoQs, 2 did not meet bidding requirements; hence 10 potential buyers were invited for due diligence process. Out of these, 3 were dropped and 7 bidders came to Pakistan in the months of April and May-05 to take part in the due diligence process. Finally, 3 bidders Singapore
Telecommunications (Sing Tel), China Mobile (Hong Kong) Limited and Etisalat participated in the final bidding process held in Islamabad on June 18, 2005.
1.13 Summary of Chronology of Events
Year Events
1994. Pakistan Telecommunication ordinance, 1994 promulgated to privatize PTC and incorporate (PTCL) and other players in the telecom sector (PTA, NTC, FAB, and PTET)-offer for sale of 100M shares in the form of 1M vouchers locally at a price of Rs.30 per share.
1995. Appointment of Deutsche Morgan Grenfell as the financial advisor. Other consortium members included Coopers & Lybrand, Denton Hall, Muslim commercial Bank limited, Deutsche Bank AG, Abacus Consulting, Asad Ali Khan & Co. and Rizvi, Isa & Kabraji.
1996- Expressions of Interest (EOI) invited for the sale of PTCL strategic shares.
1997-98 Bids invited for appointment of new financial advisors. Agreement was signed with Goldman Sachs international leading a consortium of financial advisors.
1998-2001. Goldman Sachs, Global securities Pakistan limited, Analysis and Allen & Overy and Rizvi isa & Co worked closely with the GoP prepare a robust regulatory regime in the telecom sector.
2001-2003 JPMorgan joined the FAC and took the lead on marketing and executing the transaction. The transaction was aggressively marketed.
Transaction was once again shelved, as 2 out of 3 pre-qualified bidders did not proceed further. This was in the context of heightened country risk in the post September 11 scenario.
2003-2004 Discussions on restructuring PTCL prior to privatization.
President of Pakistan’s formal decision to sell PTCL as an integrated Telecom Operator.
2004-2005 Teaser distributed followed by one-on-one meetings with potential buyers (Singapore, Kuala Lumpur, Beijing and Abu Dhabi). PC Board pre-qualifies 10 potential buyers to conduct due diligence.
Confidentiality Agreement distributed.
Information Memorandum distributed.

Due diligence commences (virtual data room (VCR) opens up); Management presentations to pre-qualified bidders held at the beginning of each due diligence week; three bidders invited each week to attend management meetings and conduct site visits; Completion of due diligence.
Investors, Forum held.
1.14 Emirate Telecommunication Company Etisalat
Founded on 30th August 1976, the Emirates telecommunications Corporation-Eitsalat-provides telecommunication services to the United Arab Emirates, and is one of the leading service providers in the Middle East.Eitsalat is embracing new technologies, new philosophies and new ways of doing business. Their new Corporate Logo and identity is a catalyst for this change.Eitsalat deals in Voice communication, Wireless Communication and Data Communication. Eitsalat was one of the first to introduce mobile telephones in the Middle East in 1982 and launched the GSM Service in September 1994.
Mr. Obaid Saeed Bin Mes’har, Chief Executive officer, Eitsalat says that the new Management will take steps for improving quality, reorganization and extension of PTCL service to more areas, he further added that technical staff might be sent to Africa and other countries after imparting additional training to them. Mr. Obaid aimed at utilizing the expertise the skills of PTCL employees in a proper way and that no PTCL employee would be relieved.
Emirates Telecommunications Corporation (Eitsalat) was the highest bidder for the acquisition of a 26 per cent stake in Pakistan Telecommunication Corporation Limited (PTCL). This latest win reflects the determination of Etisalat to strengthen its position as the leading telecommunications company in the region.
The acquisition of 26 per cent of PTCL provides Eitsalat International access to the management of the company and a pool of experienced professionals.
1.15 Subsidiaries
PTCL has four subsidiaries:
1.15.1 Pakistan Telecommunication Mobile Limited
Ufone aim to provide with wider coverage, superior connectivity, clear signals & voice quality. Covering over 2336 key destinations Ufone is the ultimate means to stay connected and providing the best nationwide coverage.
Ufone, being one of the leading cellular service providers has recently launched its service in many new cities. Keeping up with its pace it is rapidly expanding its network.Ufone keeps on adding new cities with same superior network that continues to expand. Ufone covers all major cities of Pakistan now you can enjoy comprehensive coverage in areas like the GT Road, Super Highway & Motorway etc.
A strong focus will be on increasing usage and revenue streams on Value Added Services, increase top of mind awareness and Market visibility. Ufone a 100% owned subsidiary of PTCL has set marketing trends by becoming the first company to offer 6 months free incoming on prepaid cards, GPRS/MMS and WAP services, as well as the most affordable pricing in the market. Initiatives which have helped define market standards for other commercial cellular services operators to follow. Ufone recorded a Profit after tax of Rs. 775.9 million for the financial year 2003-2004 which represents a 204 % increase over the prior year. The Board of Directors of PTML declared a dividend of Rs. 525 million based on the foregoing results.
· Launched on January 29, 2001. Ufone is a new cellular operator in Pakistan. Ufone services are offered to you by Pak telecom Mobile Limited which is a 100% owned independent subsidiary of Pakistan Telecommunication Corporation limited.
· Ufone phone has been a highly successful venture, touching 100000 subscribers in less than 4 months of operation.
During the year, as a consequence of PTCL’s privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone continued on the path to success. The Company further expanded its coverage and has added new cities and highways. Ufone has network coverage in more than 750 cities, towns and across all major highways of the country During the year Ufone successfully completed the network expansion of Phase IV in existing as well as in new cities and towns which amounted to more than US Dollar 170 million. As a result the asset base of the Company has increased from Rs. 20 billion to Rs. 27 billion.During the year Ufone adopted the policy of simplified tariffs with no hidden charges, which resulted in positive impacts on the usage trends of subscribers as well as total subscriber base, which has increased from 2,579 k in June 2005 to 7,487 k in June 2006. Ufone currently caters for International Roaming to more than 195 live operators across 119 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal and Kuwait with lowest rates, featuring no security deposit and activation charges. GPRS Roaming facility is available with more than 75 Live Operators across 59 countries. The company has also been awarded a new License for providing cellular services in Azad Jammu & Kashmir and Northern Areas.
Operating Performance
Ufone’s operational performance has been very encouraging. Despite the stiff competition in Pakistan telecom market which has led to reduction of prices to bare minimum level, due to its aggressive policies and exercising strict control over expenses the Company managed to improve its revenue and after-tax profit by 87% and 54% respectively, as compared to last year.
Future Plans
Keeping in view the growth potential of the cellular industry there is no option but to be aggressive in order to remain a potent force in the cellular industry. In order to extend cellular network to new cities, towns and highways and enhance its current installed capacities in existing cities, Ufone has finalized a huge network expansion contract amounting to about USD 550 million, which will enhance the subscribers’ capacity by 10 million. This is the largest ever expansion project of Ufone A strong focus will be on maintaining high quality of service, which is always a benchmark of Ufone, increasing usage and exploring new revenue streams on value added services, market visibility through various market initiatives to fulfill subscribers’ satisfaction and demand and above all to increase the value of investment for the shareholders
1.15.2 Carrier Telephone Industries (CTI)
Carrier Telephone Industries (CTI) is primarily a manufacturer of telecom transmission equipment. The company maintained its business momentum of more than own billion rupees during the year 2003-2004, despite hostile market conditions owning to tough competition among local industries. It registered a sales turnover of Rs. 1.004 billion during the year 2003-2004 as compared to Rs. 1.107 billion last year. Profit after tax declined to Rs. 7.32 million as compared to Rs. 26.12 last year. The company continued to expand its activities in services sector by providing installation services to various private and public sector organizations. Keeping in view the deregulated and aggressively expanding telecom market, a much higher sales target is being pursued for the year 2004-05 including sales of personal computers and providing other related services. Informage software (Private) Limited (ISLP), the 100% owned software Development company of CTI, has successfully completed its third year of business. Revenue earned during the year 2003-2004 was Rs. 16 million as compared to Rs.9 million for the last year.
Year of Establishment: 1974
Shares: PTCL 52.5% ,Siemens 47.5%
Business: Manufactures digital transmission & fiber optic equipment. Provides repair & maintenance.
1.15.3 Paknet Limited
Paknet is a fully owned subsidiary of (PTCL) and is registered as a public limited company with its strength of 371 employees, 40 pops (point of presence), 20% market share, and accessibility from 2000 cities. Locations, it has become the largest ISP in Pakistan. Services of Paknet include Dial up as well as DSL internet, which is a plan to extend to 15 cities. VPN, WAN,/LAN, solutions and value addition services, like web development , web hosting and consultancies. It also provides data communication solutions via VSAT, Frame Relay/VPN and Radio. In additional to this Paknet also provides Digital Switching Equipment.
Paknet posted sales revenue of Rs. 264 million in 2003-04 as compared to Rs.395 million last year. The company suffered loss after tax of Rs.112 million in the year 2003-04.
Year of Establishment: 2000
Shares: PTCL 100%
Business: Operation of Internet/E-mail, Information Technology services

1.15.4 Telephone Industries of Pakistan (TIP)
PTCL owns 70% shares of TIP, in addition to digital switches, which are principally produced in TIP, other products include energy meters, fire alarms, cross connect cabinets, container shells & Drop wires etc. TIP manufactured 200,000 digital ports in the year 2003-2004 for PTCL and NTC. In addition to that 100,000 telephone sets, 50,000 energy meters, 50,000 DP boxes, 1,500 cross connect cabinets and around 20,000 kilometers of drop wire were also produced.
The auditors of TIP have included a crucial matter in their report on significant uncertainty about the company ability to continue as a going concern.
Year of Establishment: 1952
Shares: PTCL 72.6%, Siemens 27.4%

Finance department
Marketing department
Business Development department
Sales Department
Business Intelligence department
Public Relations
Organization Chart of Communication department
Human Resource Department
Establishment department

There are different departments in PTCL. I have worked in marketing department as an internee. The working of main departments of PTCL is mentioned below:
2.1Finance Department
On the basis of different functions, performed by PTCL’s Finance department, the department is divided into three sub-department:
1. Revenue Department
2. Accounts Department
3. Finance Department
· Revenue Department
The Revenue Department is responsible for setting a target of revenue being achieved during the year, making action to achieve the desired target and collecting of revenue earned. This branch is also concerned with the issue that may affect the revenue in one or the other way.
1. Domestic Revenue
2. International Revenue
3. Corporate Revenue
Ø Domestic Revenue
The first source of domestic revenue is domestic billing that includes line rent and local call charges etc. Secondly domestic revenue is earned through renting and leasing of exchanges.
Ø International Revenue
There are two International Gateway Exchange (I.G.E) of PTCL, one in Rawalpindi and the other in Karachi. An agreement, total Accounting Rate countries and the currency used for this purpose is special Drawing Rights (S.D.R). International revenue is collected in Nostro account of New York (USA) from all over the world.
Ø Corporate Revenue
Other then domestic and international revenue, PTCL is also earning corporate revenue through:
1. PTML-Pakistan telecom Mobile Limited (Ufone)
2. VAS-PTCL calling cards etc.
3. Paknet- Internet Services provider
4. TIP-Telephone Industries of Pakistan
5. CTI-Carrier Telephone Industries
6. Financial Investments are contributing a major role towards corporate revenue.
· Accounts Department
The Accounts department is responsible for all accounting, record of keeping, publication of accounts, audit, employees compensation, inventories recording, fix assets accounting, complete accounting system and internal control, pensions and direct taxation.
· Finance Department
Finance Department is responsible for the budgeting, planning and transaction relating to income and revenue, expenses, pricing control funds and treasury measure and direct taxation.
2.2 Communication Department
The communication department of PTCL is controlled by senior executive vice president, who looks after four different departments:

1. Marketing Department
2. Sales Department
3. Business development Department
4. Public relations
Marketing Department
The Marketing Department adopted a proactive role in introducing marketing techniques for retaining current customers and attracting new ones. Marketing department check that what are the existing products, what are the provisions for new products and the development of these new products?
SEVP (Communication)
Zafar UsmaniHierarchy of marketing department:

EVP (Marketing)
Tariq Qureshi

GM (Consumer products)
Dawaar Mailk

Senior Manager Advertising Miss Zaib Mailk

Product Manager
Usman Ali Khan
Manager Corporate services Mr. Minhaj
Manager marketing research Mr.Raheel
Depty.Manager advertising Mr. Waqar
Depty.Manager marketing Mr. Murad
Manager marketing Mr. Haider
Assistant Manager marketing
Mr. Mushtaq
Marketing Executive Miss Farhana
Data Control Assistant
Miss Kalsoom

Sales Department
Sales department is responsible to increase the sales of different packages. Employees in the sales department check that where sales are possible and how much potential is in the market. Sales person check new places of potential where they can increase their sales. They develop distribution network and use different media vehicles to increase their sales.
Business development Department
Business development department is responsible to develop products for corporate sector. They look for Prospects for new business, making sales presentations and few other tasks. Reporting and analytic support to address business strategies and product development that provide for solid business intelligence solutions environment and infrastructure. They target corporate sector/companies not general public.
Business Intelligence Department
This department checks the trend and traffic in PTCL own services in market and also check what is the effect of competitor action on the services of PTCL. For example, there is need to check the traffic of calls by customers, and at what time there is maximum usage.
Assure that the performance of the data warehouse environment is performing optimally through the use of capacity planning, and systems monitoring.
Lead the effort to analyze business needs and data, subsequently establishing, documenting and implementing a consistent analysis methodology and use of resources across the organization. Ensuring sound requirements definition, specification and scope definition processes are upheld through reporting & analysis processes.
On the behalf of these analyses, management takes the decisions regarding the PTCL services and can response to competitors’ actions. These analysis and data are only available on intranet and for internal management use only.

Public Relations
Like all other departments of PTCL, the role and responsibilities of the Public Relations Department has also taken on a new dimension after the onset of Telecom Sector deregulation. Public Relations Department of PTCL is engaged in the Company’s image building activities through road shows close, circuit television, hoardings & billboards. The public relations department ensures publicity of company’s policies and activities. Press releases, articles, and write ups are published regularly in the print and aired by the electronic media. To enhance the company image and counter negative news item, clarifications and rebuttals are promptly issued by the PR department. The PR officers based in major cities also helped in image building across the country

Organization Chart of Communication Department

Manager
Dept
MGR
Dept
MGR
Dept
MGR
Dept
MGR
Dept
MGR
Dept
MGR
Manager
Dept
MGR
Dept
MGR
Assistant
Executive
Executive
Executive
Assistant
Executive
Executive
Executive
Dept
MGR
Dept
MGR
Manager
Manager
Manager
EVP
(Marketing)
EVP
(Sales)
EVP
(Business Development)
EVP
(Public Relations)
GM
(Consumer products)
GM
(Business Intelligence)
GM
(Sales)
GM
(BD)
GM
(PR)
SEVP (Communication)

2.3 Human Resource Department
Management of people at work is very important in every organization, because organization goals and objectives are achieved by the co-ordination of people working at the organization. Every organization has personnel function whether or not specific manager has been so designated. Every organization must hire, train, motivate, maintain and ultimately separate employees.
Human resource department is responsible for arranging and managing human capital for PTCL. Their main tasks include recruitment, selection, promotion, performance management, training arrangement for employees etc.
2.4 Establishment Department
It is another important department that works under administration. Its main responsibilities include assigning duties and responsibilities to employees and managing varied issues regarding their jobs and work performance.
This department process and finalize appeal cases against orders of punishment
It is also responsible to process and finalize creation/re-designation/abolition/retention/up-gradation/transfer of posts and various regions, departments, divisions or subdivisions.
It also process and finalize duties and responsibilities of officers.
It is also responsible for process and finalization of provision of posts as per requirement by re-designation of existing staff or creation of a new temporary post if justified.
It may perform modification or fixation of assignment or jurisdiction of every official as per requirement.

Ratio Analysis
Liquidity Ratio
Leverage ratios
Profitability ratio
Activity Ratio
Market Value ratio

RATIO ANALYSIS
Ratio Analysis is a widely used tool of financial analysis. It is the systematic use of ration to interpret the financial statements so that the strengths and weaknesses of the firm as well as its historical performance and current financial condition can be determined.
Ratios can be classified into following five broad groups.
1- Liquidity Ratio.
2- Leverage Ration.
3- Profitability Ratios
4- Activity Ratios.
5- Market Value Ratio.

1- Liquidity Ratio
Liquidity is a company’s ability to meet its maturing short term obligations. Analysis corporate liquidity is especially important to creditors. If a company has a poor liquidity position, it may be a poor credit risk.
Liquidity Ratios that are discussed for PTCL are.
i. Net working Capital.
ii. Current Ratio.

i- Net Working Capital.
Net working capital is a safety cushion to creditors. A large balance is required when the entity has difficulty borrowing on short notice.
Net working capital =Current Assets-Current Liabilities
The net working capital for PTCL
For year 2006:
NWC=50,168,177-30,275,532=19,892,645

For year 2007:
NWC=54,202,838-24,447,741=29,755,097

Since NWC of year 2007 is more than year 2006, it indicates an improved stage of company.
ii-Current Ratio:
The current ratio is equal to current assets divided by current liabilities. This ratio is used to measure the ability of an enterprise to meet its current liabilities out of current assets.

Current ratio=Current assets
Current liabilities
PTCL’s current ratio.

For year 2006:
Current Ratio= 50,168,177
30,275,532
= 1.657

For year 2007:
Current Ratio= 54,202,838
24,447,741
= 2.217

The increase in the current ratio is a good indicator of PTCL to meet its liabilities earlier then in previous year.
2- Leverage Ratio:
Leverage is a company’s ability to meet its long term obligations as they become due. An analysis of leverage concentrates on the long term financial and operating structure of the business.

Some leverage ratios are.
i- Debt Ratio.
ii- Debt/Equity Ratio.

i- Debt Ratio.

The debt ration compares total liabilities to total assets. It shows the percentage of total funds obtained from creditors.

Debt ratio = Total liabilities
Total assets
PTCL’s Debt ration:
For year 2006:
Debt ratio =Total liabilities
Total assets
=46,764,558
152,240,022
=0.307
For year 2007:
Debt ratio= 41,907,596= 0.274
152,820,860

ii- debt/Equity Ratio:
The debt/equity ratio is a significant measure of solvency since a high degree of debt in the capital structure may make it difficult for the company to meet interest charges and principal payments at maturity.
Debt/equity ratio= total liabilities
Stockholders equity
For year 2006:
Debt/equity ratio= 46,764,558=0.443
105,475,464

For year 2007:
Debt equality ration= 41,907,596= 0.3778
110,913,264

Decrease in debt ratio and debt/equity ratio is an indication of lower degree of debt to total assets.

3- Profitability Ratios:
An indication of good financial health and how effectively the firm is being managed is the company ability to earn a satisfactory profit and return on investment. Some major ratios are:
i- Net Profit Margin.
ii- Return on equity.

i- Net Profit Margin:
Net profit margin = Net income
Sales
For year 2006:
N.P.M. = 20,777,430/69,085,436=0.300
For year 2007:
N.P.M. = 15,638,753/65,277,025=0.239
The decrease in this ration indicates that business is earning less on each sales rupee. So the profitability of PTCL has declined.
ii- Return on Equity:
It measures the rate of return earned on the common stockholders investment.
Return on equity (ROE) = Net Income
Stockholders equity
For year 2006:
ROE = 20,777,430/105,475,464=0.19698
For year 2007:
ROE = 15,638,753/110,913,264= 0.1409
This means that PTCL‘s stockholders return significantly decrease.
4- Activity Ratios:
Activity ratios are used to determine how quickly various accounts are converted into sales or cash.
Various ratios exist to measure the activity of receivable, inventory and total assets. Here activity of receivable with its collection period is discussed.
Accounts Receivable Ratios:
The accounts receivable turnover ratio gives the number of times accounts receivable is collected during the year.

Accounts Receivable turnover = Net Credit sales
Average account receivable
For the year 2006:
A.R.T. =69,085,436/17,862,049= 3.86
For the year 2007:
Account receivable turnover = 65,277,025=5.72
11,411,412

The increase in this ration in 2007 is significant and shows that credit policy of the company is good then in the previous year.
i- Collection Period:
It is the number of days it takes to collect on receivable.
Average collection period = _____365_______________
Accounts receivable turnover
For the year 2006:
Collection period = 365/3.86= 94.559

For the year 2007:
Collection period =365/5.72 =63.8111

With the substantial decrease in collection days in 2007, there is indication that customers balances are collectively.
5- Market Value Ratio:
The final ratio relates the firm’s stock price to its earning per share. Here dividend related ratio is discussed.
Dividend Payout.
Many stockholders are primarily interested in receiving dividend. Let’s see how the dividend payout ratio is signaling to its stockholders.

Dividend Payout = dividend per share
Earning per share
For the year 2005:
Dividend payout = 5 =0.87
5.72
For the year 2006:
Dividend payout = 2 = 0.4914
4.07
It is the indication of dividends from 2005 to 2006 has declined.
By examining the trend in the company’s ratios from 2006 to 2007, it is obvious that overall position of PTCL’s finance is getting down. The profitability is declining and dividend is has also reduced. The EPS for 2006 to 2007 decline from 4.07 to 3.07. So it’s the high time for PTCL to take corrective action in order to avoid the more decline after the privatization of PTCL.

Marketing department
Product launches & surveys
PTCL Services
Corporate services
Consumer services
Tasks assigned to me
Brand Repositioning
Description of New Logo
Reasons to rebrand
Upcoming projects

4.1Learning
During my internship I learned about the functioning of business intelligence, sales and marketing department and I also got the opportunity to get exposure with an advertising agency "Interflow".
4.2Marketing Department
PTCL realizes its position as a dominant market player and hence successfully played its role in the year 2003-2004 with an aggressive approach towards communication strategy and pricing of products & services. The Marketing Department adopted a proactive role in introducing marketing techniques for retaining current customers and attracting new ones. Marketing department check that what are the existing products, what are the provisions for new products and the development of these new products. Marketing department explore and modify existing products, position these products after modifying, use promotional tools and do advertising of their new products and also do budgeting.
4.2.1 Advertising Agencies
PTCL has following advertising agencies on its panel.

1. Orient
2. Interflow (rebranding of PTCL done by this agency)
3. MPL
4. Evernew
5. Midas
6. Maxim
7. Brand Partnership
4.2.2Tariff Rationalization
An extensive tariff study and analysis of the big telephone operators working in the developed world was conducted by the Marketing Department during 2003-2004. This resulted in significant reductions in both tariffs and charges throughout the year. Installation charges (both rural and Urban), line rent, Nationwide and international call tariffs and Bandwidth rates were resultantly decreased. Massive marketing campaigns, based on strategies recognizing the target audience and application of advertising tools that generate the greatest responses, were launched in both urban and rural areas to attract the maximum number of customers.
4.2.3 Product Launches
During the year 2003-2004 PTCL Prepaid calling card with the advanced features was relaunched. Launch of PTCL Phone Bill card based on IN platform, bill payment facility via ATM Machines and prepaid telephony PTCL Aasan prepaid phone were also launched using various media, along with above and below the line activities. V-wireless and green lifestyle was also launched during 2005- 2006. Currently PTCL is working on blue lifestyle, red lifestyle and yellow lifestyle packages.
4.2.4 Surveys
PTCL marketing team has started gathering customer feedback through extensive surveys. This important task is an ongoing activity being carried out by the most reputable research agencies of the country. Key surveys/research studies are conducted to take customer opinion through DSL market assessment survey, multimedia and cable TV study and customer migration survey.
4.3 PTCL Services (Corporate and Consumer Services)
4.3.1 Wire Line
Voice Telephony: Basic voice telephony service is R2. 210 plus tax charged as monthly rent. Approximately 5.8 million subscribers.
4.3.2 Life Style Packages:
Green Life Style
Weekend Package; Rs. 250 plus taxes, for NWD calls during weekend
Red life Style
For new accusations and special plans
Blue Life Style
For ISD packages
Yellow Life style
For local Call and Internet Package
Almost two years have passed and the numbers of customers for the Life style package are almost 46000.
4.3.3Digital facilities
Theses facilities are available on land line telephony
Call transfer (FOC)
Allows you to forward you land lines number onto a number of your destination or a cell phone
Call Waiting(FOC)
Code Barring(FOC)
Customer can prevent misuse of their telephone with the help of code barring facility. This can be changed by the customer if need arises.
Hot Lines
This service enables customer to be contact just by lifting the hand set & without
dialing the number. System automatically dials a preprogrammed number (after 5
Seconds delay), most appropriate for frequently dialed numbers.
Abbreviated Dialing
Dial a short number (single digit) to get desired number. A maximum of 10 such
Numbers can be registered.
Don’t Disturb
Activating of this facility will stop all incoming calls for a pre determined time
Slot. This will allow customers to be in peace if he does not want to be disturbed
during such time. The caller will get a pre recorded message.

Absent Customer
A Customer with this facility may inform the calling person about his non availability at that time. This calling person will get an announcement or a special tone.
Wake up
Ringing of a customer telephone is initiated at the fixed time. In case Customer
does not answer the ring at the first offering, subsequent rings will follow after 5
minutes.
· CLI
CLI allows you to identify the caller before picking up the phone. The customer can check obnoxious calls and keep the complete record of all incoming/outgoing calls with time and date to take any action.
4.3.4VMS
Voice mail services will be available on land line shortly. Activation shall be free of costs. Charge a local call for messages retrieval. The service will increase call termination on land line network.
4.3.5V-Fone
It is a basic Voice telephony for local, NWD, ISD calls. Wireless phone connection Rs.2000 connection and set call charges same as line. V PTCL is a wireless phone service based on CDMA 2000 as technology. It offers all the services of a tradition land line including short messaging services (SMS), caller line identification (CLI), phone book, call waiting, call transfer and high speed internet facility along with being semi mobile. Daily line rent is of 7Rs.
4.3.6Calling Cards
PTCL launched Rs.100 denomination Prepaid Calling Cards with advanced features. By the end of June 2006, record sale of Rs. 400 billion has been recorded on account of prepaid calling cards.
PTCL 17 Directory
PTCL subscribers List (Data phone number with addresses)
PTCL 18 Complaint
PTCL phone complain service
4.3.7Aasan Prepaid Telephony
“Aasan” phone is a landline prepaid telephony service, launched in May 2004. The prime objective of this service is to facilitate the customer in getting a new connection with minimal documentation. Aasan cards are available in Rs.500. Rs.1000 and Rs.2000 denomination. Daily line rent is of 7Rs.
PTCL Wire-line Payphone
PTCL provides wire-line payphone service to its end users through its Wire-line Payphone Operators. The end user can obtain a Wire-line payphone set from a Wire-line payphone operator.
Security Deposit for each payphone connection Rs.2, 500/-
Local call Rs. 1.20/5 min.
NWD call Rs. 1.20/min.
Line rent Rs. 87 for billing up to Rs. 500
No line rent for billing over Rs. 500
Features
The features of wire-line include:
superior quality voice,
availability of fax service,
no busy network,
no voice disruption,
much cheaper local call as compared to mobile of duration of five minutes,
Reliability.
Starting a PTCL Wire-line Payphone
To start wire-line service, the operator has to obtain payphone license from PTA and sign Payphone Service Agreement with PTCL.
Phone n Net (New)
Phone net is a new service by PTCL whose purpose is to provide the availability of internet any time without prepaid card charge. Here customer need not to charge the prepaid card like in Vfone,rather phone number will be used as username and password and it will be charged to the bill of phone.
PTCL conduct the market survey of internet cards for the launching of phone-net and for Rawalpindi, I was given this task.
Features
Ø Direct internet Access
Ø No scratch card needed
Ø Balance never finishes
Ø No Expiry or forced usage
Ø Don't have to pay up-front
Ø Flat rate of Rs. 0.10/min. (conditions apply)
Ø Code barring to restrict internet access
Ø Available on all landlines. Currently available in Karachi, Lahore, Islamabad.

4.4. Corporate Services
PTCL is striving hard to facilitate its valued corporate customers at each level of service. PTCL offers a host of unmatched services to suite the needs of the Corporate Customers. The list of Corporate Services is given as under:

Toll Free-800
It is a toll free service starting with 800. A service for corporate clients for establishing domestic and international call centers. This service is available to corporate customers and call centers for their customer’s convenience. The number of subscribers stood approx.700 at the end of financial year showing a significant growth in subscribers from the past year.
Premium rate service -0900
A service for corporate customers they advertise their numbers for which a premier call rate charged. Mainly used by clients conducting live talk shows and are gathering customers feedback. 0900 numbers are used throughout the world to provide information via telephone at a premium rate higher than regular call charges. Five more operators signed agreements with PTCL in the year 2003-2004 bringing the total to thirteen.
Virtual Private Network (VPN)
A corporate service for our corporate clients, having operations in different cities. VPN provides a private telephone network linking their offices in different cities onto one network where cost of communication between the different cities in significantly reduced just like PABX. VPN is an intelligent network in service which allows an organization to private network using its current PTCL lines without requiring the installation of dedicated network resources.
Audio Conferences Service
Another corporate service where our corporate clients can have a conference call amongst their various offices. There are 920 clients by the end of year 2006.
Universal Access Number (UAN)
UAN service is ideal for organization engaged with marketing of products or services. It consists of 6 digits proceeded by 3 digits code of 111, common to all UANs. It can be accessed from other cities from dialing the area code first. There has been a steady increase in the UAN subscribers due to its better quality of service and positive effects on the customers businesses, as well as, user convenience.
For example: 051-50-502020
UAN is easier for customer to contact you by dialing a simple number. Its quick and easy access to make queries and complaints increases customer satisfaction. Customers are increasing aware of the benefits of doing business by phone because it is time saving and both convenient and cost saving.
Universal Internet Number (UIN)
Due to the boom in telecom sector ISPS continue to mushroom all around the country. UIN is a number starting with 131 used for accessing the Internet. The call dialed is charged as one local call irrespective of its duration. Number specifically allocated for ISP operators. 131 numbering schemes for internet service providers represent exclusive code assigned to each ISP. Functioning just like UAN-0800 toll free service, UIN involves allocation of numbers to individual ISPs who are licensed by PTA. The service, function’s under single metering billing system. The benefit of the service goes to the end users, who happen to be any ISP customers. Once subscribed, the service means timeless communication for your customers. Once subscribed, the service means timeless communication for your customers, allowing them to pay for a single call irrespective of its duration.
PTCL Broadband (DSL): (New)
The term "broadband" refers to a communications technique for transmitting multiple simultaneous data channels.
Broadband Internet services (specifically cable modem and DSL) bring high-speed Internet connectivity to homes and small businesses. Millions of people already subscribe to broadband Internet
Telecommunication revolution is taking our world by surprises. While it took global telecom development over100 years to reach 1,000 Million customer marks for fixed line telephony service, it took only about 20 years to reach the first billion mobile users. so fast that second billion signed up in just a matter of three years and the third billion may take even less time.
This is the pace and tempo of growth and telecom landscape change. The new wave of high speed internet, the broadband penetration, is likely to follow similar trends in next 10-years in the world. However, the broadband which will be a powerful tool for economic growth will need much support from the government as policy maker who has to set vision and resources for growth. If, we have look at Mobile telephony, internet and broadband, we find that these are becoming integral part of today's life and especially a life style for the young.
Shift towards Broadband:
The Next Big Thing
The next phase in digital revolution which has already started happening is the swift shift from low-speed internet to real high speed broadband information and data networks that leverage strength from both fixed and wireless transport and access alternative methods.
Broadband internet connection has become one of the most profound communication developments ever the demand for high-speed internet connections is set to continue and future would see a big boom. There are about 250 million fixed broadband users today and by 2010 credible forecast depict the number growth to reach to about 1.2 billion

DSL is a family of related technologies that bring high-speed network access to homes and small businesses over ordinary telephone lines.
PTCL is now the leader in consumer broadband in Pakistan, leading the country into 21st century. There are options of 3 plans to meet bandwidth needs.
DSL-256Kbps Limited Access Rs. 1,199 / month, 2GB Volume
DSL-512Kbps Limited Access Rs. 1,999 / month, 4GB Volume
DSL-1Mbps Unlimited Rs. 4,999 / month, unlimited download, Free Modem
4.5. Other Services
· Bill Payment Facilities
PTCL is in the process of offering convenient bill payment solutions to its customers. Steps taken in this direction so far include:
· Phone Bill Cards.
This convenient mode of bill payment was launched in January 2004. It facilitates customers in making payment of their phone bills through these cards from their own telephones. These are available in denominations of Rs.300, 500,700,1000, and 2000.

· Electronic Bill Payment Facility
Agreements have been signed with Askari Commercial Bank and Muslim Commercial Bank for collection of bills through ATMs. Discussions for similar agreements with other banks are underway. Infrastructure and operational base for services like Free phone, Home Country Direct (HCD) and Televoting has been complete.
· PTCL-Pakistan Post office (PPO) Agreement for Bill Collection
PTCL signed an agreement with PPO so that PTCL customers can pay their phone bills at more than 3000 branches of PPOs and GPOs throughout the country. This facility is in service now and is providing convenience to a large number of people.
Tasks Assigned to me:
On my first day of internship, first of all I gave the joining to Mr. Dawaar GM Marketing. GM Attached me to Product manager Mr.Usman Ali Khan. Mr. Usman gave me to do some work on Excel Sheet which was entries of activation and deactivation of Green Lifestyle Package. In the first week they explained me the working of marketing department and gave me information about different packages. In that first week, I got an opportunity to conduct a market survey fro the upcoming service. PTCL is going to launch a new service to its customers named as" Phone-net" for that service there is need to conduct all Pakistan survey about internet cards. For Rawalpindi, I was given the task to conduct it. After collecting that data, I compiled that data and prepared a summary of data.
During the next two weeks of internship he handed over me to advertising agency "Interflow" which was responsible for rebranding of PTCL where I got a wonderful exposure of advertising agency. For Two weeks I joined them regularly, and fro next two weeks I used to go there after noon after working in PTCL.
After that in 4th week, they assigned me a task to do the data entry of sales. Here I Was attached with the Miss Shama who is responsible of handling sales of FTR region.
In 5th week, I worked in advertising section for a week. Here I was attached with the Mr. Mushtaq Assistant Deputy Manager advertising. I helped him in compiling the work orders for the advertising agencies.

After that in 6th week, they allow me to work in business intelligence department for two weeks.
Mr. Kashif Qureshi and Mr. Hammad were there to guide me. Here in that days Business intelligence department was having the task to make a "dashboard". They assigned this task to me.
What is Dashboard?
Dashboard is basically for telling the trend in the business position of an organization products and services. Dashboards are used to communicate status and to drive action. Dashboard is a way to view data from several different reports with one simple click a dashboard is a user interface that, somewhat resembling an automobile's dashboard, organizes and presents information in a way that is easy to read. However, a computer dashboard is more likely to be interactive than an automobile dashboard (unless it is also computer-based). To some extent, most graphical user interfaces (GUIs) resemble a dashboard
Some products that aim to integrate information from multiple components into a unified display refer to themselves as dashboards. For example, a product might obtain information from the local operating system in a computer, from one or more applications that may be running, and from one or more remote sites on the Web and present it as though it all came from the same source. Hewlett Packard developed the first such product, which began as a tool for customizing Windows desktops. Called Dashboard, the HP product was subsequently acquired by Borland and then a company called Starfish. Microsoft's Digital Dashboard tool incorporates Web-based elements (such as news, stock quotes, and so on) and corporate elements (such as e-mail, applications, and so on) into Outlook. Dashboards may be customized in a multitude of ways and named accordingly, generally, for example as a general corporate or enterprise dashboard, or more specifically, as a CIO or CEO dashboard.
With the assistance of Mr. Kashif and Mr. Hammad I develop simple dashboard but there was still a corner of improvement in it, as Mr. Kashif wanted to have drilled down facility which I remain unable to develop that drill down facility.

Then I rejoined marketing section with Mr. Usman in 8th week, where they allow me to write the creative brief. I learned how we can write a creative brief of a product or service.
In the last week, I got my internship certificate and do some routine tasks of office.
In this way I did my internship and learned how to develop different marketing strategies. This will help me a lot in my future as I am willing to do job in the telecom sector. I learned the steps involved in launching of a new product and how and why an organization change its logo. This will definitely help me in future.
4.8 Brand repositioning
An attempt to change consumer perceptions of a particular brand.
Repositioning is the act of redefining the placement of a company and/or product. Positioning involves:
Placement within a market segment – In which segments does the product/service play?
Placement of the product relative to other products/services categories and application – What are upstream and downstream in the supply chain with respect to the product/service? Is the product/service high value or low value with respect to other product/services used by the customers?
Placement versus competitors' products/services – How well does the product/service satisfy the customers’ needs versus the competition?
Placement of the product/services in terms of features and benefits - Is the product/service high performance or basic in features and benefits? What is the value proposition for the product/service versus the competitors?
Placement in the sales channel – How is the product sold by whom to whom?
Placement in the minds of decision makers and influencers – For those who make the “buy” decision, is the product/service critical or a commodity? Does it represents a major determiner for success and therefore involved in a major part of their daily activities for buyers and influencers?
Some marketing folks may think of "rebranding" as the act of coming up with new logos, name, tag lines, colors, packaging, etc. Or it could mean to some purchasing a product manufactured by someone else and putting your own brand on it. And it's always possible that "rebranding" could mean to someone the same thing as repositioning - taken very loosely.
Repositioning of PTCL
Description of New Logo:
It is based on our traditional national symbols. The Crescent symbolizes Pakistan, the circular core replaces the star, and the multiple crescents symbolize the fact that there is so much more to offer. The dot in the middle is a representation of PTCL's customers’ oriented approach. As a symbol the crescent reflects the purity and integrity of our proud nation.
Just like the crescent's promise of a full moon, we, at PTCL, bring to the customers the promise of new and improved services. The crescent also symbolizes PTCL's passion to shine bright and our quest to keep on rising. The color combination depicts the partnership with Etisalat while the dot that symbolizes the Pakistani customer is the official Pakistan Green.
Top Reasons to Reposition a Brand
Brand repositioning is necessary when one or more of the following conditions exist:
Your brand has a bad, confusing or nonexistent image.
The primary benefit your brand “owns” has evolved from a differentiating benefit to a cost-of-entry benefit.
Your organization is significantly altering its strategic direction.
Your organization is entering new businesses and the current positioning is no longer appropriate.
A new competitor with a superior value proposition enters your industry.
Competition has usurped your brand's position or rendered it ineffectual.
Your organization has acquired a very powerful proprietary advantage that must be worked into the brand positioning.
Corporate culture renewal dictates at least a revision of the brand personality
Reasons of repositioning for PTCL
This decision to change the logo was based on some key findings of the extensive research conducted of the market. As a result certain issues came to light. Firstly the image of PTCL needed to be revamped. A marked shift in the customer paradigm was also required. The company needed to create a tailor-made communication focused on targeted segments to effectively communicate with the corporate sector.
The immediate task at hand has been to change the logo and the theme line. This will be followed by continuous launch of innovative solutions to create perception of change that should trickle down to all sub brands. The tentative launch of Triple play will be the spring board to enhancing image.
At the same time internally we will have to focus on improved customer service and fault management. The New Brand Identity demands new attitude towards business practices from all the employees. This is the only way our customer can 'feel the difference'.

In the age of getting competition more tight, PTCL wants to refresh its image in terms of its services.
To give the more confidence over the company and better image on customers’ mind.
PTCL is improving its services and making the easy availability of services like many online services of PTCL.
4.9 Upcoming Products& Projects
1. ERP:
ERP is a move to next century .ERP to redefine PTCL business processes.
ERP is used for the phrase Enterprise Resource Planning. ERP integrates all data and processes of an organization into a single unified system. A typical ERP system will use multiple components of computer software and hardware to achieve integration. A key ingredient of most ERP systems is the use of a single, unified database to store data for various system modules.
The introduction of an ERP system to information replaces two or more independent delivered applications eliminates the need for external interfaces previously required between systems. ERP is useful from standardization and lower maintenance to easier and greater reporting capabilities, typically kept in one database
The project has been given the. ERP is useful name Project A-SURE, where
A=Agility, S=Security, U=Unity=Reliability, E=Excellence; these are the objectives of this project.

For company, ERP means a system that will hold data across the whole enterprise of PTCL / Paknet / Ufone. All the information will be integrated, making access to good quality information easier. When the ERP system is installed, greater agility in meeting the needs of customers, suppliers and staff should be possible.
In PTCL, Siemens is doing the installation which will use the SAP of Germany the leading supplier of ERP software. The team of PTCL and Siemens working closely and these will be delivered in mid 2008.

“This project will change the way PTCL does its daily operations. Things will run so much smoother after the ERP system is installed.”
Walid Irshaid
President & CEO

2. PTCL one Stop Shop OSS
It’s a project which has approved by the upper management. In OSS all the services of PTCL will be available under one roof.Kiosaks will be available at OSS.From getting new service to payment of bill and all other services will be available at one shop. This will be launched in few large cities of Pakistan then it will be available to other cities of Pakistan.
The purpose of this project is the easy availability of services and saving the maximum time of customers of PTCL.

Introduction to agency
Functions of Marketing department
Major clients
Tasks assigned to me

INTRODUCTION
Interflow Communications is the largest advertising agency in Pakistan established on July 1, 1983 with a diverse portfolio of clients and an annual turnover of more than Rs.3 billion. Interflow Communications has offices in Karachi (head office), Lahore and Islamabad.
All three Offices are fully functional independent offices, taking care of their respective portfolios independently. However, wherever required, inter-office coordination and cooperation is readily available.
Interflow Communications is not only the largest, but also the fastest growing agency in Pakistan. This unparalleled growth and success is owed to our focus on becoming our clients’ most valued partner in creating profitable growth by designing, building, leveraging, protecting and managing their entire communication efficiently and effectively.
Interflow Communications (Pvt.) Limited is the accredited advertising agency and is the member of Pakistan Advertising Association (PAA) & All Pakistan Newspapers Society (APNS).It is the most reputed Creative and Brand building agency.
Some important features are:
• Established in 1983
• Affiliated with Ogilvy in 1986
• Grew to become the largest advertising agency within 5 years and have maintained leadership position since then
• The most reputed Creative and Brand building agency
• Full service offices in Karachi, Lahore and Islamabad with a staff of over 300
• Interflow Communications (Pvt) Limited is the accredited advertising agency and is the member of Pakistan Advertising Association (PAA) & All Pakistan Newspapers Society (APNS)
• Interflow Communications is not only the largest, but also the fastest growing agency in Pakistan.
• This unparalleled growth and success is owed to our focus on becoming the clients’ most valued partner in creating profitable growth by designing, building, leveraging, protecting and managing their entire communication efficiently and effectively
• Interflow Communications is the only agency to have a separate Public Service Division. In recognition of our division’s commitment to social work Civil Hospital Karachi named its emergency ward after Interflow.
• The first ever marketing of a condom (Saathi) in Pakistan, including packaging design, television campaign, print and point-of-purchase material
• We are the first agency to own a television channel (TV one) & Radio FM Channel
• We are the first and only agency to open an international satellite channel in London called TV Asia.
• Pyramid Production house in Lahore also belonged to Interflow.
Mission
• Interflow Group’s mission is to be its clients’ most valued partner in creating profitable growth by building, leveraging, protecting and managing their brand assets - for both short-term results and long-term success.
• To that end, Interflow Group is committed to bringing together the most powerful combination of marketing and communications disciplines available to meet the specific needs of individual clients and their brands.
A True Brand Partner:
Pepsi 20 years
Unilever 19 years
Nestle 20 years
BAT 09 years
Ufone 06 years
Indus Motors 08 years
Brands –Interflow has built:
Mountain dew, PTCL, Wills, UBL, Pepsi, Ufone, Capstan , Oral-B, Teem ,IBM, NIDO, Ponds, Rio, Duracell, Butter puff, Gold Flake, Embassy, Gillette, Glaxose-D, A1-Karack and many more.

Hierarchy of Interflow Islamabad
Mr. Mohammad Jamal
Regional Director

Chief Accountant
Media Manager
Art Director
Creative Head
Administration Manager

Director Clients Servicing
Group Account Manager
Sr. Client Service Executive
Client Executive
Account Manager
Strategy Planner
Copy writers
Proof readers

Assistant Media Manager
Office boy
Peon
Driver
Front Desk officer
Accounts officer
Recovery officer
Asst. Art Director
Designers
Visualiser
DR
Security guard

How an advertising agency works:
Client service department is the front end of an advertising agency .Client Service gets the client and takes their requirements to form the ad. Then that requirements and specifications are explained to the creative department. Creative department make the concept of ad.
Then a rough sketching of ad is developed .Client service department continuously remain in touch with the client and present the concept to the client. Creative department handed over concepts to the art department where coloring, design of product and about ad is decided. From art to next is the design department which develops the designing of ad using the technical tools.
Then after building the ad client service present to the client if there is any change then that change is implemented. After the approval of client, ad is sent to Media department and media department placed that ad according to the client requirement about media on right time right space and in right shape. For the execution of this phase media department plays very important role.
After that, then bill is sent to client and bill is received by the account department of the agency in which 15% is for agency.
Functions of Marketing Department
Ø Marketing Strategy

1. Client Servicing
Client servicing mean providing the advertising services to the different clients of the agency. Client serving plays a major role in the marketing of an agency. We can say that client servicing departments are the back bone of the advertising agencies.
2. Business Development
Business development means to get the new clients from an open competition. Here it is too important to explain that how the agency can get the clients from an open market.
The company who is required to hire an agency calls the proposals from different advertising agencies by advertising its terms and conditions/requirements in the news papers or through Press Information Department (PID a regulatory authority of Press advertisements).
In response the agencies submit their proposals along with all supporting documents; the agency who meets the client’s requirements gets the clients.
In Interflow each of the marketing members can do the business development by utilizing its experience.
3. BTL (Below the line) activities
BTL is an advertising term, its mean all those activities which would took place on ground to promote or to market a product, brand or services. For example Street theater, float activities, puppet shows and arrangements of concerts.
Interflow communications is one of the biggest groups of advertising and event management in Pakistan; it has all the resources to manage all the above mentioned activities.
4. ATL (Above the line) activities
ATL activities include the advertising on electronic and press media. Interflow communications has very strong relationship with all the media channels and with press media as well. It is basic marketing strategy for the entire advertising agency.
The client can also directly approach to these media but if they go through the agency it is very beneficial for the agency. The agency gets the negotiable rates from there own from the channels.
Ø Product planning, development and management
Interflow is a service provider company. We can say that Interflow Communications basically selling its services as a product. Interflow has very competent employees profile and Management team which make the policies and take actions for its services.
Ø Advertising
Interflow communication is the service product company so being an agency
Its product is the advertising
Advertising on Electronic media
Advertising on Press media
Out door advertising
Workshops
Documentary Production
Concerts
Seminars
Special programs for the clients (Sponsored dramas, Talk Shows, Music Shows on TV etc)
Ø Development of the product
1. Ideas
There is always an idea behind a successful project or campaign. Interflow communication through their creative people creates ideas for its clients keeping in view their goals and objectives.
2. Execution
If the respective client likes that idea or concept of the agency then second step is the execution of that idea. In the execution of that concept / idea agency plays a very vital role.
3. Awareness / Launch through media (ATL /BTL)
After the completion of the execution phase the next and the most important phase is the launch of that idea/ concept/ campaign through ATL of BTL activities (mentioned above). Through the launch and media the clients get the end result that’s why it is the most important phase.
Ø Management of the product
1. Role of Creative department
Creative department plays very important role in management of advertising concepts. Interflow has a very competent creative department who is responsible to manage the product as per the satisfaction of the clients.
2. Role of Art department
Art department is also the key of success of an advertising agency. In interflow communication also play a very vital role in the success of the client advertising.
3. Role of Client servicing / Production department
Client servicing persons are the jack of all trades and they are responsible for the successful execution of the idea / creative concepts.
4. Role of Media department
The last step in the management of advertising is the placement of advertisement in the media department on right time right space and in right shape. For the execution of this phase media department plays very important role.
Ø Pricing strategy
1. 15 % Agency Commission
Advertising agencies are the service provider companies, they sell their services to the clients. As the reward they charge agency commission of 15% of the business cost. In Pakistan each and every advertising agency charge 15% agency commission no agency takes the higher or lower commission from the client.
2. PAA tariff
PAA means Pakistan Advertising Association, this association consists of the senior members of advertising agencies of Pakistan.
An approved tariff from all the authorities of this association has been made for production jobs. Production jobs means production of television commercial, radio commercials, production of posters, banners, streamers, etc.
As per the clients requirement agency would produce that specific job and would take its chargers according to the tariff.
3. Cost of Printed items
In fact printing is not the job of an advertising agency but if it is the requirement of the client then the agency can do this job as well, which most the agencies do for the client because they get the profit margin from the printing as well. Companies take 15% commission minimum from the job of printing.
Ø Distribution Strategy
Allocation of the clients to each client servicing person
As far as the distribution strategy is concerned agency distributes the advertising work of its clients to each client servicing person keeping in view their working experience.
The following are the main distribution channels of Interflow Communications.
Ø Distribution channels
a) TV
The main and one of the popular distribution channels is the television. Almost at every class of people watch the television. So with the help of television commercials on television is very successful and very help full for the promotion of a product or services.
b) Radio
So as radio is one of the main distribution channels of Interflow communication. Interflow makes the radio commercials for their clients and also offers different programs on radio channels.
c) Press
Another main distribution channel is the press advertisement. Interflow communication has very strong relation with the press media people so they offer different sort of services for its client for the advertising on press media.
d) Outdoor
Out door advertising includes hoarding, bill boards, banners, streamers, posters etc.
Interflow can manage all this types of advertising distribution channels with the help of their group companies very smoothly.
e) Magazine
Another very important and very well known advertising distribution channel is the magazine advertising.
f) Concerts / talk shows, Documentary, Corporate branding
There are some other miscellaneous distribution channels like concerts for the client talk shows, documentary production which are very popular distribution channels of Interflow.
Ø Sales force
a. Client servicing.
The main sales force is the client services department. As they are dealing with the client directly on behalf of Interflow. If the dealing of client services person are good it would really help of built the good relation ship and business as well.
b. Media resources
Media plays also very important role as the sales force. Media department is that department through that the client gets its results. Media department is responsible for the media release in right time on right media.
c. Public relations.
Public relation is another key sales force of interflow communication. Public relation is really important because some time agency is required some out of the box favors which they can only achieve from their clients with the help of better public relations.
Ø Promotional Strategy
1. Special discount from media (Electronic and Press Media)
On the basis of better relationship with the media market, agency gets the better negotiated rates from different press and electronic media channels. Each and every media channel or news paper have their own different rates (Tariff Rates), but with better understanding with the people of Media channels agency gets the special discounts for their clients.
2. Free of cost activities
Some time agencies as a special favor for the clients do some free of cost jobs like some designing jobs, some production work etc. it is a promotional toll of the agency which is very much effective.
3. Special teams for some specific clients
It is a very useful tool of an agency to allocate some special team for clients. It shows the impression to the client that agency is take some extra interest for the work of the client.
Major Clients of Islamabad office
Private Clients
Client Name
• United Bank Ltd (UBL)
• Askari Leasing
• Pakistan State Oil (PSO)
• Pak Telecom Mobile Ltd (Ufone)
• DVCOM
• EBM
• FFC
• Beacon House Informatics
• British Petroleum
• Pak Gulf
• PTCL ( Corporate)
• Save The Children
• Pakistan Initiative for Mothers and Newborns (PAIMAN)
Multinational Clients
Client Name
• Pepsi
• Key Social Marketing (KSM)
• Pakistan Tobacco Company
• Indus Motors
• Revlon
• Dupont
• IBM
• Plan International
Government Clients
Client Name
• Ministry of Tourism
• Central Directorate of National Savings (CDNS)
• Ministry of Health
• Ministry of Information
• Ministry of Women Development
• Ministry of Science & Technology
• Special Education Center
• NAB
• CBR
• Pakistan Army
• Pakistan Railway
• Board of Investment

Major competitors
In Islamabad there are almost 27 agencies are running their offices out some of the main names are as follows.
Orient Machain Islamabad.
Manhattan Pakistan (Pvt) Ltd.
Add Group (Pvt) Ltd. Islamabad.
Evernew Concepts (Pvt) Ltd.
Midas (Pvt) Ltd.
Spectrum (Pvt) Ltd.
Tasks Assigned to me
First of all I joined the Client servicing department for a week. I was attached with Mr. Atif Saeed Group account manager. I prepared the presentations fro clients, attend meeting with clients with Mr. Asim Raza assistant account manager. One of the presentation and meeting was with Mr. Safdar Communication head of Plan Pakistan.
Second week, I joined the creative department. I was attached with Miss Fatima creative Group Head. This was a wonderful experience as I did the copywriting fro the ads of National Education Foundation and Ministry of Women Development. (See Annexure)
My copywriting was appreciated by Miss Fatima and Mr.Khurram (Art Group Head).
On 3rd week, I joined the Art department. Here I was attached with Mr. Qaiser Graphic Designer. Here I learned some expertise on Photoshop and then I developed the few designing fro the PTCL rebranding (see annexure).
On 4th week, I did the usual routine work of office which was also done by me during above three weeks other than important tasks which I mentioned above.
Rebranding of PTCL:
As I discussed before about the rebranding of PTCL.Interflow was responsible to complete this task.
The tasks which were assigned to me during the rebranding process, were the designing of PTCL Giveaways and few vehicles which were designed by me on Photoshop under the guidance of Mr.Qaiser (graphic designer) (see Annexure.).

SWOT analysis of PTCL
Conclusion
Recommendations

SWOT Analysis
Strengths
Strong networking of PTCL is its major strength that is of competitive advantage.
High Profit margin of the company, in 2003 it was 34.4% and in 2004 it is 39.4%. The 2005 operating profits are 36,363 millions. Operating revenue75, 972 millions.
· The PTCL, Pakistan’s second-largest listed firm, it earned net profit of Rs8.37 billion in the six months to December 31, 2006, 22.71 per cent lower than Rs10.83 billion in the year-ago period.
(source:http://pakng.wordpress.com/2007/04/10/ptcl-asks-pta-who/)
Strong Research & Development Department.
Efficient chain of command. There is clarity of “who answer to whom”.
Good liquidity ratio.
Strength of PTCL is to offer a round the clock service to its customers to ensure their satisfaction.
PTCL human resource, infrastructure and nation-wide reach have been our strengths throughout and will remain to be. We are already there where no one has gone before. PTCL is practically everywhere in Pakistan even where there no electricity and other communication facilities available. (By SEVP Operations and Corporate Maskoor Hussain)
Weaknesses
Source: http://www.jbic.go.jp/english/oec/post/2006/pdf/project30_full.pdf
Table shows the ROA increases up to 2004 but in 2005/06 it deceases little bit. The liquidity ratio also falls in 05-06. Capital Adequacy ratio also falls in 05-06.
Deregulation of the telecommunication sector is likely to lead to a fall in the revenues of PTCL in the short term. However, the policy makers believe that PTCL would stage a comeback by 2007 in all areas. PTCL may experience some loss of market share to competitors, customers’ dissatisfaction, poor customer services by PTCL, erosion of revenues and then profits in the short to medium term. Various analytical simulations models run by PTCL and the consultants show that the impact can range from marginal to substantial. The government being an 88 percent shareholder of the PTCL may be similarly affected.
There is already uncertainty about the international revenues of PTCL due to continued declining trend of the international “Total Accounting Rates” (TAR) (PTCL’s share of TAR – the settlement rate declined from about 60 percent to 20 percent per minute in the period from 1997 to 2002) resulting in net annual PTCL proceeds declining from about $370 million to $260 million despite substantial increase in international incoming traffic.
Currently, PTCL is under pressure from its bilateral international carrier partners for reduction in settlement rates. As such, PTCL is already facing the prospects of reduction in its profitability even if deregulation does not take place. It is feared that the natural decline in PTCL’s revenue and profitability may not be well understood and the entire impact may be attributed to deregulation.
The no. of employees working in different branches is more than required. We can say that there is over employment in PTCL.
Human Resource Department of PTCL is weak.
Lack of co-ordination.
Growth in fixed line sector is slow as compare to mobile sector.
Political Influence.
Misuse of office fixture.
Absence of technical staff especially broadband DSL.
The implementation of rules and polices are not assure and there is lack of audit control.
Opportunities
Satellite communication.
Etisalat 26% stake in PTCL could lead to fresh investment boost and possible expansion of PTCL network.
Making investment decisions.
Employees training programs.
Hiring of qualified HR Staff.
Exploration of small cities.
Technological advancement.
Overall computerized system.
The revenue can be further generated through better marketing strategy.
Threats
Competitors.
Economic conditions. In strong economic conditions the growth of business is very frequent. The poor economic conditions increase the inflation rate, which is a threatening factor. Political climate in Pakistan in uneasy because of regional tensions, which may have a detrimental effect on potential investment from overseas and consequently network expansion.

Conclusion
PTCL accountings and financial system for planning and controlling the activities are satisfactory. But it needs the strict implementation of its policies.
Privatization of company would improve the working of organization and its overall efficiency. New partnership Eitisalat is trying to enhance PTCL status in the Telecom sector and further strengthened the existing strong bands of friendship between Pakistan and UAE.
To keep the leadership position in the telecom sector, it is important that PTCL continue to set high standards for the others to emulate. PTCL have come a long way and have a long way yet to go but it is committed to” making it possible”, and now trying to give the feelings of “feel the difference
For PTCL, re-branding initiative can only have any sort of meaning if it is aligned with proper rationales and concrete change. An image cannot be purchased, it must be built. Without a constructive attitude, change, PTCL goals will become meaningless.
It is not about making superficial changes, but the need of today is for substantial reform. This change must be followed by superlative services, good customer service, and dedicated people. Otherwise the re- branding initiative will be reduced to meaningless slogans, images and sound bytes. So for authenticity to be deeper than promotional claim, brands cannot solely be the preserve of the marketing department.
PTCL must have to introduce automation in its processes and improve MIS system. In wake of change of corporate orientation from engineering to commercial each employee will have to change his attitude the way he works accordingly. PTCL will have to open up to reality and the changed world outside to grab business share. New challenges require new approach from PTCL. Everyone will have to gear up to achieve better customer satisfaction.

So PTCL has to do is to bring about a positive change in attitude and mindsets of each and every employee. Improved customer services and launch of new products is the only way to survival for PTCL. Every employee of PTCL is its Marketing person and ambassador of the Company. By changing in attitude it can contribute to company in particular and to the society in general.
Recommendations
1. There should be screening of employees because the no. of employees working is more than required.
2. Company should emphasize on after sales services since it is necessary to compete its competitors and to retain its leadership in telecom sector.
3. The HR department of the company is not playing an effective role. Proper arrangement should be made for professionals by issuing detailed job description and job specification to get maximum profit from them.
4. Company should decrease its line rent because in present competitive environment company can retain its customers through this strategy.
5. Overall system should be computerized to save time, money and resources of company. PTCL must have to introduce automation in its processes and improve MIS system
6. The customer services should be improved and must be provided to customer in time. Its take long time to have the PSTN phone. The salaries of line man should be reasonable so that customers can get the phone without any trouble.
7. The technical and installation team for broadband is insufficient; the need is to have more experts to satisfy the customers’ requirements of broadband.
8. There are lots of complaints of Lifestyle package and to handle these complaints no proper person is there, the product manager deals with these complaints. There is very much need to remove the problems faced by these life style packages.
9. Strong emphasis on marketing to compete with competitors. Marketing of cellular companies is much stronger than PTCL. Features provided by the company to its customers should be recognized which is possible only through strong marketing efforts.
10. Exploration of new areas, not having connections, is required. Most of the cellular companies are trying there best to occupy those regions where landline connections are not available. So to increase the number of customers and to avoid the decreasing profitability, to increase the EPS and regain the image in the mind of Consumers Company should emphasis on the exploration of new areas.

References
1. www.ptcl.com.pk
2. http://www.jbic.go.jp/english/oec/post/2006/pdf/project30_full.pdf.
3. http://pakng.wordpress.com/2007/04/10/ptcl-asks-pta-who/
4. TeleNews in-house newsletter of PTCL
5. Quality Ways in-house newsletter of PTCL
Meetings
Mr.Usman Product Manager PTCL
Mr.Haider Manager Marketing Research PTCL
Mr.Farman Finance Officer PTCL
Mr.Asim Account Manager Interflow

Nokia PROJECT

2010-05-21T06:28:00.000-07:00

TABLR OF CONTENTS

Sr. No.

Contents
Page No
1.
Executive Summary………………………………………….

2
2.
Section 1……………………………………………………….
Introduction………………………………………….
List of Nokia Products……………………………….
Scope………………………………………………….
Pakistan Driven Strategy…………………………....
N97 Begin to Selling in Pakistan……………………
More About N97……………………………………..
Nokia 97 Gallery……………………………………..

3
3
4
4
5
5
6
8
3.
Section 2……………………………………………………….
Customer Driven Market Strategy………………....
Market Segmentation………………………………..
Market Targeting…………………………………….
Market Positioning…………………………………..
Nokia brand personality…………………
Nokia Positioning………………………...
Nokia Product Design……………………
Marketing Mix 4P’s………………………………….
Price………………………………………
Place………………………………………
Promotion………………………………...
Product……………………………………
Marketing Strategy…………………………………..
Strategic Direction……………………….
Business Environment…………………...
Slogan…………………………………………………
Logo…………………………………………………...
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9
10
11
11
12
12
13
13
13
13
14
14
14
14
15
15
4.
Section 3……………………………………………………….
Conclusion…………………………………………....
Market Share………………………………………...
Competitors…………………………………………..
Recommendation…………………………………….
References…………………………………………….
17
17
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19
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EXECUTIVE SUMMARY

Nokia is a world leader in the mobile industry. The products produced by this business concern are valued all over the world very well. Nokia has successfully met the changing needs, demands and dynamic trends of the customers. In its operation Nokia has given a full consideration to Research and Development. Whatever the market, Nokia targeted, it always faced success.
If we make a look on its N97 this mobile model has captured a large sector of market due to its specification meeting the current needs of the customers in Pakistan. The strategies adapted by Nokia are fully in accordance with the market needs and demands, that is why Nokia has captured a large market sector and instead of hard competition it is still market leader

PROJECT ON NOKIA CORPORATION (N97)

SECTION 1

INTRODUCTION

Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki. Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with over 123,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of EUR 41 billion and operating profit of €1.2 billion as of 2009. It is the world's largest manufacturer of mobile telephones: Nokia produces mobile devices for every major market segment
Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. It is an important employer in Finland and several small companies have grown into large ones as its partners and subcontractors Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In 2004 Nokia's share of the Finnish GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003.
In recent years, Finns have consistently ranked Nokia as one of the best Finnish brands. In 2008, it was the 27th most respected brand among Finns, down from sixth place in 2007.

(The Nokia House, Nokia's head office located by the Gulf of Finland in Keilaniemi, Espoo, was constructed between 1995 and 1997. It is the workplace of more than 1,000)

LIST OF NOKIA PRODUCTS
Some of the major mobile products of Nokia are shown below in the table. Besides these major products Nokia is also producing many other mobiles series.

Nokia mobile phones by series
Nokia C series
C3 · C5 · C6
Nokia E series
E5 · E50 · E51 · E52 · E55 · E60 · E61/E61i · E62 · E63 · E65 · E66 · E70 · E71 · E72 · E75 · E90 Communicator
Nokia Nseries
N70 · N71 · N72 · N73 · N75 · N76 · N78 · N79 · N8 · N80 (Internet Edition) · N81 (N81 8GB) · N82 · N85 · N86 8MP · N90 · N91 (N91 8GB) · N92 · N93 · N93i · N95 · N95 8GB · N96 · N97 · Nst-4
Nokia X series
X2 · X3 · X5 · X6
List of Nokia products

SCOPE

Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations.
It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding: A) the timing of product and solution deliveries; B) our ability to develop, implement and commercialize new products, solutions and technologies; C) expectations regarding market growth, developments and structural changes; D) expectations regarding our mobile device volume growth, market share and prices, E) expectations and targets for our results of operations; F) the outcome of pending and threatened litigation; and G) statements preceded by "believe," "expect," "anticipate," "foresee," "target," "designed" or similar expressions are forward-looking statements. Because these statements involve risks and uncertainties, actual results may differ materially from the results that we currently expect. Factors that could cause these differences include, but are not limited to: 1) the extent of the growth of the mobile communications industry and the new market segments in which we have recently invested; 2) price erosion and cost management; 3) timing and success of the introduction and roll-out of new products and solutions; 4) competitiveness of our product portfolio; 5) our failure to identify key market trends and to respond timely and successfully to the needs of our customers; 6) the impact of changes in technology and the success of our product and solution development; 7) the intensity of competition in the mobility industry and changes in the competitive landscape; 8) our ability to control the variety of factors affecting our ability to reach our targets and give accurate forecasts; 9) the availability of new products and services by network operators and other market participants; 10) general economic conditions globally and in our most important markets; 11) our success in maintaining efficient manufacturing and logistics as well as the high quality of our products and solutions; 12) inventory management risks and ramping up or down production at our facilities, which result from shifts in market demand; 13) our ability to source quality components without interruption and at acceptable prices;

PAKISTAN DRIVEN STRATEGY
Nokia is looking to commit business all over the world and in this regard it has got lot of success and now this is the world leader in the mobile phone industry. Pakistan is one of its target market and it has launched many mobile products in Pakistan.
Nokia N97 to begin selling in Pakistan Today
Earlier, Nokia N97 was officially launched on 12th June at a grand launch ceremony held at Marriott Karachi. Along with a tilting 3.5″ touch display, QWERTY keyboard and a fully customizable home screen, the Nokia N97 promises to offer instant access to the full range of Ovi services. The device was announced at a glamorous press event where two European models brought the phone at the venue and the Finnish First Secretary, Deputy Head of Mission H.E Miia Rainne handed over the phone to the GM Nokia Pakistan Imran Khalid Mahmood.
"Delivering on Nokia’s vision and thought leadership based on mobile convergence, Nokia Nseries has aimed to present the best in class mobile computers to its internet savvy consumers. " said Imran Khalid Mahmood, GM Nokia Pakistan. "Today, we take great pride in introducing the newest addition to Nokia Nseries – Nokia N97.

MORE ABOUT N97
The Nokia N97 is a S60 5th Edition mobile computer with a large 3,5“, bright nHD (640 x 360 pixels and 16:9 aspect ratio) TFT color display with resistive touch screen and tactile feedback. The device provides excellent user experience for internet and entertainment by combining qwerty keyboard with touch UI and Home screen functionality. Use the N97 to connect to mobile broadband using WLAN or HSDPA (3.5G). Find directions and locations with the integrated A-GPS and included maps. Additional features include game titles with N-Gage, a 5 mega pixel camera with dual LED flash and automatic geotagging of images and videos. Nokia has announced that the N97 touch screen smart phone is available to U.S.

Nokia N97 gallery

SECTION 2

CUSTOMER DRIVEN MARKET STRATEGY
Nokia has successfully operated its functions in order to meet the dynamic changing needs, demands and requirements of the customers. That is why; today in the mobile sector Nokia holds a large area of customers all over the world. The Nokia has adopted the following key strategies to capture a large number of buyers.
Market Segmentation
Market Targeting
Market Positioning
Market Mix 4P’s
Positioning Strategy (slogan, logo….)
MARKET SEGMENTATION
In order to make effective market segmentation, the Nokia tends to seek the customers on the basis of following attributes:
What type of product they buy How much they buy How often they buy

There are also certain variables that can affect peoples buying habits, they include: AgeGender Area they live in Religion Lifestyle Fashion and preferences.
Market segmentation refers to the different areas of the population that companies can aim their products towards. The market segment that Nokia has chosen to aim is the youth market focusing on students aimed 13-19 as market research has shown that some of the youth market are receiving large amounts of pocket money and most have no real commitments to spend it on and that means they have lots of disposable income and will be able to spend a lot money on new mobile phones. As a big company Nokia are able to do a lot of promoting and advertising that smaller, less successful companies, may not be able to afford, such as television advertising and sponsoring lots of events that will be viewed or heard by large amounts of people in their chosen market segment (events such as music festivals and music awards are a goldmine for companies as they are viewed by millions of people worldwide). Adverts such as television and print adverts will be put into certain areas so that they can attract their chosen market segment, Nokia tend to put a lot of their print adverts in men's magazines such as FHM and Loaded so they can appeal to all of their readers instead of a smaller percentage of the readers they would attract in magazines such as Lifestyle and Good Housekeeping. I think Nokia's way of promoting is very good as they can appeal to mass markets and large amounts of people in their chosen market segmentation with certain advertisement's and with sponsoring large events like the ones I have previously mentioned.
MARKET TARGETING
The target market of NOKIA is very wide. Its products are demanded world wide and are given preference at any other cellular company in the world. They have comparatively low rates than the other companies and have a very good and interactive performance and interesting features, so because of these features, people prefer NOKIA than the other companies.
Especially in Asia, Europe, America and the Middle East, NOKIA has a very big market. It is manufacturing GSM and AMPS technologies cellular sets which are meeting every kind of consumer’s requirements.
In 2002, Nokia's largest markets were US, UK, China, Germany, Italy, France, UAE, Thailand, Brazil and Poland. Now from the last few years the Nokia has got a vast place in the mobile industry of Pakistan. The target market of Nokia in Pakistan is almost the classes because they have produced their mobiles right from high upper class to lower class of the economy. But if we talk of N97 this is specially for the upper class in the economy. The fashion adapting class of the country specially the young generation of high class has been targeted through this product
My revised strategy has a lot of advantages over Nokia's previous strategy, and I have listed them below: My target market is one that has never been entered before, so Nokia will instantly gain 100% market share, whereas the current target market is saturated and competition for market share is very strong. The products that are being released do not need to be as technically advanced as the ones in the current market, because my market research showed that the 40+ market do not want phones that are to complicated and hard to use. If product research and development is not needed as much anymore then Nokia can afford to decrease its employment numbers and this would save Nokia a lot of money every year. When entering a new market with no competition a company can charge whatever prices they want, Nokia's prices can be higher then they currently are and this will increase income and profitability.

MARKET POSITIONING

Nokia has very successfully got a strong position in capturing the large number of market through its multi brand strategy throughout the world. The Nokia has not only considered a single class for its products but the whole economy of a country. The main advantage that goes to Nokia is that it’s a brand positioning corporation for its market and a brand can be used by all classes with any hesitation. For example if we talk of Nokia 1200 series this is used by many people without any social distinguish.
NOKIA BRAND PERSONALITY

Nokia has detailed many personality characteristics for its brand, but employees do not have to remember every characteristic. They do, however, have to remember the overall impression of the list of attributes, as you would when thinking about someone you have met. As the focus is on customer relationships, the Nokia personality is like a trusted friend. Building friendship and trust is at the heart of the Nokia brand. And the human dimension created by the brand personality carries over into the positioning strategy for the brand.
NOKIA POSITIONING
When Nokia positions its brand in the crowded mobile phone marketplace, its message must clearly bring together the technology and human side of its offer in a powerful way. The specific message that is conveyed to consumers in every advertisement and market communication (though not necessarily in these words) is” Only Nokia Human Technology enables you to get more out of life"

In many cases, this is represented by the tag line, "We call this human technology". This gives consumers a sense of trust and consideration by the company, as though to say that Nokia understand what they want in life, and how it can help. And it knows that technology is really only an enabler so that you-the customer-can enjoy a better life. Nokia thus uses a combination of aspirational, benefit-based, emotional features, and competition-driven positioning strategies. It owns the "human" dimension of mobile communications, leaving its competitors wondering what to own (or how to position themselves), having taken the best position for itself.
NOKIA PRODUCT DESIGN
Nokia is a great brand because it knows that the essence of the brand needs to be reflected in everything the company does, especially those that impact the consumer. Product design is clearly critical to the success of the brand, but how does Nokia manage to inject personality into product design? The answer is that it gives a great deal of thought to how the user of its phones will experience the brand, and how it can make that experience reflect its brand character. The large display screen, for example, is the "face" of the phone. Nokia designers describe it as the "eye into the soul of the product". The shape of phones is curvy and easy to hold. The faceplates and their different colors can be changed to fit the personality, lifestyle, and mood of the user. The soft key touch pads also add to the feeling of friendliness, expressing the brand personality. Product design focuses on the consumer and his needs, and is summed up in the slogan, "human technology."
Nokia now accounts for over half of the value of the Finland stock market, and has taken huge market share from its competitors. According to one brand valuation study carried out in mid-1999, it ranked 11th on the world's most valuable brand list, making it the highest-ranking non-U.S. brand. As has been pointed out, it has unseated Motorola. Nokia achieved its brilliant feat through consistent branding, backed by first-class logistics and manufacturing, all of which revolve around what consumers what.
MARKETING MIX 4P’s
Nokia is very successfully utilizing its 4P’s it its operations as under;
Price
Place
Promotion
Product

PRICEC
The phones that Nokia produce are usually sold at high prices(new phones can be expected to enter the market at around £200+, if they carry the latest technology). The price of the new phones usually decreases after an introductory period, which is usually around 2 months long.Nokia's prices are usually competitor based, in such a way as, they try to keep their prices a bit lower then those of the closest competitors, but not as low as the "smallest" competition as consumers do not mind paying the extra money for the "extra quality" PLACE
Nokia phones are generally sold at all established mobile phone dealerships such as Car phone Warehouse and The Link, although they are also sold at other retailers such as Dixon's and other Electrical suppliers. The products are only sold in the electrical suppliers and store other then dedicated phone dealerships after the introductory period so the phones can remain limited edition, as this will encourage younger consumers to buy them.
PROMOTION
.Nokia tend to promote the new technologies and mobile devices they create using one big advertising campaign that focuses on a singular technology instead of each individual handset so they can appeal to a lot of different markets with one campaign.

PRODUCT
Nokia phones tend to include all the latest technology and a lot of the consumers favorite aspects such as text messaging and games like Snake and Memory. When the phones came out they were big and bulky and quite unattractive but now they are all quite sleek and stylish with phones now getting small enough to fit in the palm of your hand as standard. Most of the phones produced nowadays have accessories that consumers must buy with them (carry cases, hands free kits and in-car chargers) these generate Nokia a lot of profit, as they are very high priced. Nokia's marketing mix has worked very well until recently as the market they are aiming at has become more and more saturated and after looking at all the mobile phone sales figures, it looks as if the phone companies can aim at this same youth market for about another 2 years until they
need to change, but they should change sooner so they can start making a bigger profit and get a head start on the competition who will also have to change the market they are aiming at. Nokia's
current promotional strategy is working very well as they are able to "talk to" a large number of consumers in different markets rather then the niche markets the old promotional strategies where restricted to.
MARKETING STRATEGY
As we move into the Mobile World, we remain committed to strong growth, profitability and responsible market leadership.
STRATEGIC DIRECTION

The mobile phone is fast becoming the centerpiece of personal communication, allowing us access to an ever-widening range of services. Today, we are moving from voice services to services driven by data and multimedia.

BUSINESS ENVIRONMENT
Nokia competes in the global telecommunications industry in general and in the mobile industry in particular, each of which has exhibited rapid growth, change and convergence in recent years.

SLOGAN
Thus, the ‘Nokia Connecting People’ slogan was born with the Nokia logo. The slogan of Nokia logo provides the brand with an exceptionally strong elevated altitude in the communication industry. The slogan explains the company goal to connect people without any barricade and with total comfort.

LOGO

Nokia logo, like the company, is tantamount to contemporary mobile technology, high tech gadgets and fashionable ways to communicate and explore. Nokia Co. has offered every endeavor to decode the mission intended by the company through its brilliant logo design.

2

SECTION 3

CONCLUSION

Nokia Group the Finland-based manufacturer of mobile phones has been steadily working on its corporate brand name and the management of consumer perceptions over the last few years. Its efforts have paid off, because it is now the number one brand in many markets around the world, effectively dislodging Motorola from that position. The brand has been built using the principles described above, and has been consistently well managed across all markets. Nokia has succeeded in lending personality to its products, without even giving those names. In other words, it has not created any sub-brands but has concentrated on the corporate brand, giving individual products a generic brand personality. Only numeric descriptors are used for the products, which do not even appear on the product they. Such is the strength of the corporate brand.Nokia has succeeded where other big brand names have so far failed, chiefly by putting across the human face technology-taking and dominating the emotional high ground. It has done so in the following way.
MARKET SHARE

Nokia market share 51.53% (April 2010)

Nokia market share 51.53% (April 2010)
Devices
Market Share
Nokia 5130 XpressMusic
4.56%
Nokia N70
3.44%
Nokia 3110 classic
2.63%
Total market share
10.63% (10.63%)
Nokia 2700
2.45%
Nokia N73
2.37%
Nokia E63
2.22%
Nokia 6300
2.21%
Nokia 6120 classic
1.52%
Total market share
21.4% (11.4%)
Nokia E71
1.51%
Nokia N95
1.49%
Nokia 5800 XpressMusic
1.36%
Nokia 7210 Supernova
1.23%
Nokia 6600
1.19%
Nokia 7610
1.07%
Nokia 5310 XpressMusic
0.95%
Total market share
30.2% (10.2%)
Nokia N72
0.8%
Nokia 5300
0.73%
Nokia 6630
0.7%
Nokia 6233
0.69%
Nokia 3120 classic
0.64%
Nokia 3500 classic
0.64%
Nokia 6303 classic
0.6%
Nokia 2600 classic
0.58%
Nokia 5200
0.57%
Nokia 2730 Classic
0.55%
Nokia N81
0.53%
Nokia 3230
0.5%
Nokia E51
0.49%
Nokia 2330 classic
0.49%
Nokia 2630
0.43%
Nokia 6680
0.42%
Nokia 6500 slide
0.37%
Nokia N82
0.37%
Total market share
40.3% (10.3%)
Nokia 6670
0.1%
Nokia 6131
0.1%
Nokia 5730 XpressMusic
0.1%
Nokia 6270
0.1%
Nokia N80
0.09%
Nokia 6110 Navigator
0.09%
Nokia E50
0.08%
Nokia X3
0.08%
Nokia 7100 Supernova
0.07%
Nokia N91
0.07%
Nokia N-Gage QD
0.07%
Total market share
51.44% (1.44%)

COMPETITORS

With all this technology available in the communications market it is obvious that Nokia willhave lots of competition, they include:
Sony Ericsson Samsung Motorola Siemens Panasonic NEG and Toplux With all of these competitors in the market Nokia must keep ahead of the game by running successful marketing strategies, to do this Nokia must focus on the principles of marketing. At the moment Nokia are the world's best selling phone company (see table below which shows market share). Nokia strengthened its lead as the No. 1 vendor in the market during 2000 with shipments growing 66 percent over 1999. Some of the company's success was attributed to a strong second half in 2000 when 59 percent of sales occurred.

RECOMMENDATION
Though the NOKIA is the world’s largest cellular phone company and has the very efficient features and facilities but there are some suggestions by me after analyzing and researching about this company.
It should decrease its prices of the sets so that the sets may become in reach of every user and the market may increase and become the cause of increasing profit rate.
Its spare parts should be available in its every market.
There should be replace warranty in case of defection.
Memory capacity should be increased to save the different entertaining materials in the sets .
REFERENCES.
www.nokia.com
www.nokiausa.com
www.nokia-asia.com
www.mobile-phones-pakistan.com
www.mobile-phone.pk/nokia-mobiles

Walls PROJECT

2010-05-21T06:22:00.001-07:00

Acknowledgment

Firstly, we are thankful to Allah Almighty, for giving us courage at each and every step of our lives, and especially in making this report.

We would also like to thank the course instructor, Sir Hanif Shahzad for clarifying our marketing concepts and guiding us in each and every phase in the completion of this project.

I would also like to thank the authority of National University Of Modern Languages (NUML) for providing me with a good environment and facilities to complete this project.

We are also grateful to our parents and some special friends who are the source of our strength and without whom we could have never achieved anything in our lives

Executive Summary

In the branded ice cream WALL’s is at the top a huge market share of 85%. The remaining companies are far behind in this race with single digit sector.
Walls has a share of 22% of the intervention ice cream market and in Pakistan It is 40% of total market.
Walls its launch in Lahore and Karachi in 1995 and then in 1986 in Islamabad walls entered the market with solid expertise in manufacturing hundred ice cream.
Polka’s strong brand equity in tubs and other take home packs, made it ripe for the picking, leading to the competition of the legal merger between polka and lowers in 1996.

With the highest spending on promotion in the industry walls accepted the challenge of creating the ice cream culture and in this regard walls be claiming considerable success.

TABLE OF CONTENTS

S.No.
Description
Pages
1
Introduction and History
5
2
Reason for Introducing
6
3
Company Orientation Towards Market Place
7
4
Marketing Environment
8
5
Company’s Planning, Mission and Objectives
10
6
Marketing Research
11
7
Customer Driven Marketing Strategy
12
8
Marketing Segmentation
13
9
Product Development Process
14
10
Branding Strategies
15
11
Packing Strategies
16
12
Distribution and Marketing Channels
17
13
Marketing MIX
18
14
Conclusion and Recommendation
20
15
References
21

Introduction & History

Unilever is the world’s largest manufacture of ice cream; in fact Unilever holds almost 18% of the global market share. Unilever is moving towards making ice creams even healthier treats, by reducing fat content, introducing lower calorie ice creams and beefing up other treats with calcium and other nutrients. Wall's is the brand name of Unilever's Heart brand ice cream business it is the name of the company that for many years, as an independent and then as a Unilever subsidiary, made and marketed the Wall's brand of ice cream.
Unilever Pakistan Limited is a Pakistan-based company. The Company manufactures and markets home and personal care products, beverages, ice cream and spreads .the Unilever Pakistan Limited (UPL) was established in Pakistan in 1958. Unilever Pakistan is the largest FMCG Company in Pakistan, as well as one of the largest multinationals operating in the country.

The Wall’s factory in Pakistan is located on Multan Road in Lahore. The factory was constructed in 1994, and its production started in the year 1995.It is fully equipped with a state of the art innovation pilot plant. This makes Pakistan one of the few countries in the region to have their own innovation pilot plant, making it possible for Wall’s to launch exciting new products every year. In the first year of there operations the total production of ice cream was 4 million liters.
In 1994 Lever Brothers Pakistan tried to acquire Polka Ice Cream for Rs 600 million. Polka refused the bid, demanding instead Rs 1 billion. One year after the launch of Wall's Ice Cream by Lever Brothers in 1996, Polka approached Wall's with an offer to merge the two companies. So they merged in 1996 and now it is called wall's not Polka.

Mention ice cream and most people in Pakistan think ‘Walls’, Pakistan’s leading ice cream brand. Throughout the years Walls brand has brought to Pakistanis a number of much loved classics from the seduction of magnum, sharing of Cornetto with your loved

ones to the refreshing taste of paddle pop. The Wall’s brand stands for a good time. From affordable treats to premium indulgence, to hanging out with friends and sharing precious family moments; Wall’s adds to the simple pleasures in daily life.

REASON FOR INTRODUCING PADDLE POP MAGILIKA:

According to the marketing department at Walls, ice cream lovers are categorized into four basic categories, and the categories are made according to the different age groups and choices of people falling in that category. These categories include, firstly the kids of age group 4-7 who love eating ice cream in cups, then comes the age of 7-10 kids in this category are more inclined towards eating ice lollies, then comes the category where the children are aged between 10-15, this is the category where kids are converting from ice lollies to light chocolate coated and milk ice creams on sticks. Finally then there are those who prefer stronger flavors of ice creams like bitter and dark chocolate, white chocolate, and have a preference for ice creams such as Cornetto, magnum, and death by chocolate.
Catered especially for the kids aged between10 to 15 Paddle Pop is a major hit. The Paddle Pop’s Lion is the friendly face of fun and adventure and this ice cream rates among the fastest selling and most popular ice-cream among the children.
Wall’s re launched its Paddle Pop brand with a new name Magilika in January 2007 under this brand there were three different Paddle Pop categories of ice creams which were launched, namely they were;
· Magic Star
· Rainbow Spell
· Choc Lava

We have conducted a research on Choc lava. Choc lava was made is such a way that the lower half is made up of light chocolate while the upper half was made up of with the coating of milky hard chocolate with an inner filling of light chocolate which has viscous condensed milk.

COMPANY ORIENTATION TOWARDS THE MARKET PLACE:

According to the marketing team at Wall’s for choc lava they used the production concept to conduct their marketing activities. The concept states that those products that are widely available and inexpensive are preferred. The company mass produced the ice cream at low costs.

The managers of production oriented business concentrate on achieving high production efficiency, low cost and mass distribution. But from our analysis the company should have made use of the product concept as it focuses on those products that offer the most quality or innovative features. This is because of the fact that choc lava did have innovative feature in it. The liquid condensed milk in the ice cream bar was a concept that was totally unique and not known before. The product would have been more successful if it was priced and advertised and sold properly.

MARKETING ENVIRONMENT:

Successful companies recognize and respond profitably to unmet needs and trends. Companies could make a fortune if they are able to deal with the environment efficiently.

· Demographics
The demographic environment is of major interest to marketers because it involves people, and people make up the markets. The firms have to closely analyze customer’s age, gender, occupation, income and other statistics in order to set the perfect target market for their product. As far as demographics of choc lava are concerned it especially caters to children, both male and female following between the age group of 10-15 years. As it is catering specifically to children so it is low priced, this shows that it is for kids belonging to all income brackets.

· Economic Environment
Markets require purchasing power as well as people. The available purchasing power in an economy depends on current income, prices, savings, and debt and credit availability. Marketers must pay careful attention to tends affecting the purchasing power because they have a strong impact on business. As in this case the scenario is different because the product is not price sensitive and caters to all income classes.

· Socio cultural Environment
The cultural environment is made up of institutions and other forces that affect our society basic values perceptions, preferences and behaviors. People grow up in a

particular society that shapes their basic beliefs and values. Mostly children belonging to all societies and culture have same behaviors. Little kids love eating ice creams and usually chocolate are their favorite flavor. So the culture in which Wall’s operates is not very complexed rather it is quite favorable.

· Political & legal Environment
Marketing decisions are strongly affected by development in the political and legal environment. This environment is composed of laws, government agencies and pressure groups that influences and limit various organizations and individuals. There are certain legislations and government agency enforcement which compile firms to show socially responsible behavior. Wall’s also does not face any threats from these conditions as it follows and fulfils all food laws and legal requirement imposed by the state authorities.

· Technological Environment
One of the most dramatic forces shaping peoples life is technology. It is force that creates new product and new market opportunities. Like all other businesses technology also affects the operations of Wall’s directly. As Walls’s owns and operates a highly automated production plant and as most of its machinery and equipments is imported the company has to be on its toes when it comes to adapting to new and advance technological changes. The machine used for filling condensed milk in the upper layer of choc lava was also very technologically advance and unique as previously no other company had used such a technique before.

STRATEGIC COMPANY PLANNING, MISSION & MARKETING OBJECTIVES:

Strategic planning is a plan used to guide the decisions and actions of everyone in the organizations. For any product to sustain itself in the market it is very important that the company owing the product does extensive and detail strategic planning before the launch of the product in order to get hold of the competitive advantage. The marketing executives search continuously to find such an opportunities. Competitive advantage is a unique strength relative to its competitors.

It is mostly based on quality, time, cost or innovation. Having identified this competitive advantage the company must allocate its resources to exploit it. Choc lava no doubt was a completely innovative product consisting of three flavors in one ice cream, light chocolate, milky chocolate and condensed milk. It was a unique product which no company had offered before but the ice cream failed terribly due to its bad launching timings. The timings of the product and marketing actions directly influence the magnitude and duration of a firm’s competitive advantage.

Choc lava failed firstly because it was launched in the start of January 2007. Choc lava was launched in winter which is not an appropriate time to launch such a product because obviously parents won’t allow their kids to buy ice creams in winters. Secondly, its sales dropped considerably in the summer season due to the problem of extreme weather conditions.

The mission of Wall’s was to re launch Paddle pop by a new series of ice cream named Magilika, as depicted by the name Magilika has something to do with magic and the main theme behind this re launch was to attract children by magical fantasy.

The color of the ice cream is brown (chocolate) which represents mountain and inner filling of condense milk which represents lava hence the name Choc Lava Power.
MARKETING RESEARCH:
Marketing research is the process of defining marketing problem and opportunity, systematically collecting and analyzing information and recommending actions to improve the organizations marketing activities. An effective marketing research involves six steps which are defining the problem and research objectives, development of the research plan collection of the information, analysis of the information, presentation of the findings and decision making.
Marketing research attempts to identify and define both marketing problems and opportunities and to generate and evaluate marketing actions. Hence it is a means of reducing risk and uncertainty.
Wall’s is one of those companies which do not launch any of its products with out extensively carrying out marketing research. Same was the case with Choc lava but the only problem was that the research done for the particular product did not work because of the following reasons;

a) When they conducted the children’s tasting test they give fully frozen ice creams to kids who liked the ice cream immediately as the frozen ice cream depicted no problem in the product.
b) Secondly when they offered the ice cream to the kids they readily accepted it as no kid ever refuses an ice cream no matter what the taste it.
c) When the ice cream was in fully frozen the condensed milk was in its proper place inside the ice cream. However due to improper freeze temperature management by the retail outlets the condense milk leaked out of the wrapper giving an untidy and unpleasant look. As condensed milk is very sweet and it was dripping it touch the throat and as a result gave an overly sweet taste which disliked by the children’s.

These problems occurred in the later stages which were not depicted by simple children ice cream tasting tests.

CUSTOMER DRIVEN MARKETING STRATEGY

TARGET MARKET
A target market is group of people or organization whose needs the marketers’ products are specifically designed to satisfy. Target marketing narrows the organization’s focus to an appropriate set of potential consumers whose needs can be profitably met. So the target market for Choc lava is kids belonging to the age group of 10-15 years.

Market segmentation on the other hand identifies the separate group of people or organization within the broad target market, each with similar needs, characteristics or behaviors.

Market segmentation for walls is categorized into four basic categories. These categories include, firstly the kids of age group 4-7 who love eating ice cream in cups, then comes the age of 7-10 kids in this category are more inclined towards eating ice lollies, then comes the category where the children are aged between 10-15, this is the category where kids are converting from ice lollies to light chocolate coated and milk ice creams on sticks. Finally then there are those who prefer stronger flavors of ice creams like bitter and dark chocolate, white chocolate.

MARKET SEGMENTATION STRATEGIES USED:

Wall’s segments its market on the basis of demographics. The market is divided into groups on the basis of variables such as age and income. While Wall’s segments Paddle Pop Magilika on the basis of age only.

SEGMENTATION OF MAGILIKA

Geographic:

Countries Pakistan
Cities All cities in Pakistan
Density Urban
Climate Hot & Dry

Demographic:

Age 15-50+
Gender Male & Female
Family Size 1-2, 3-5, 5+
Income Rs.20,000+
Occupation From Middle Class To Upper Class
Education School, Colleges, Universities
Religion Major Religion Of Islam, Hinduism, Christianity, and Others

Psychographic:

Social Class Middle Class, Upper Class
Lifestyle Actualizes

Behavioral:

Occasions Parties, Birthdays, Sports & Regular Occasions
Benefits Quality, Taste, Economy, Health
User Status First time user

PRODUCT DEVELOPMENT PROCESS:
The product development process is the sequence of activities a marketer uses to transform product ideas into marketable goods and services. In the course of developing new product, marketers scans the environment and generate ideas, screen them, develop and test product concept, analyze the business concept, design and develop the product, test it in the market, and then commercialize the product as illustrated in the figure;
ACTIVITY
PURPOSE
Environmental scan & idea generation
Re launch Paddle pop with a new brand name “Magilika” which included three products, Magic Star, Rainbow Spell & Choc Lava
Screening out inappropriate ideas
Various lollies & other Paddle pop products were eliminated.
Concept development & testing
Using marketing research techniques such as conducting tasting sessions and noting the expressions, impressions and feedback of children.
Business Analysis
Wall’s made future projections before the launch of “Magilika” that its products would sell like hot cakes as there was no other ice cream brand currently in the market catering to children specifically.
Product Design & Development
Friendly “Lion” character with magical powers is used to attract children. The concept of condensed milk “lava” inside the ice cream was meant to be a surprise for kids.
Product & Market Testing
This stage was skipped by Wall’s, which eventually led to product failure.
Commercialization
Choc lava launched in January 2007

PRODUCT POSITIONING:

Positioning is the use of marketing to encourage people in a product’s target market to form a particular mental image of the product relative to competing products. “Magilika” has been positioned in the minds of children as something which would take them into the fantasy world and the lion represents strength as children would start to think that eating Choc Lava would make them strong.

BRANDING STRATEGIES:
The branding strategy for a firm reflects the number and nature of common and distinctive brand elements applied to the different products sold by the firm. When a firm introduces a new product, it has three main choices:
1. It can develop new brand elements for the new product.
2. It can apply some of its existing brand elements.
3. It can use a combination of new and existing brand elements.

Wall’s used the choice of using the combination of new and existing brand elements. Wall’s has used the same old brand name of Paddle Pop along with the same character of lion but a magical theme was used in order to attract the children.
An existing brand that gives birth to a brand extension is referred to as a parent brand. Here Wall’s is the parent brand whereas “Paddle Pop Magilika” is the line extension that is the parent brand is used to brand a new product that targets a new market segment within a product category currently served by the parent brand such as when Wall’s offer new flavors an added ingredients in it.

PACKAGING STRATEGY:
Packaging and labeling help marketers communicate with customers and provide protection, storage and convenience as product moves through the value chain. As a result, packaging and labeling adds value that help marketers differentiates their product and built brand equity.

The packaging of Choc Lava ice cream indicates various ingredients used in the ice cream, nutritional information and the price. It also has certain symbols toward the back side like “halal”, “keep your country clean, “bar code” and “questions and comment” on lever rabta.

Apart from all this the attractive features of Choc lava packaging is the cartoon character visible very clearly on the packaging. It is one of the factors that attract children toward the ice cream as whenever a child visit the super market and open the ice cream freezer the special packaging immediately attracts his attention and he quickly reaches and grabs the ice cream.

PRICING STRATEGY:

The strategy used for pricing of Choc Lava is value pricing in which prices are held steady while improving products benefit. The price of Choc lava at its launch in January 2007 was Rs 12.

This low price is especially kept to attract children who normally have this amount of money in their pockets either they buy chocolate or ice cream. The new product attribute added in this ice cream is the condensed milk.

DISTRIBUTION & MARKETING CHANNELS:

Distribution channel consists of individuals and firms involved in the process of making a product or service available for use or consumptions by consumers.

High transport vehicles are used for transport of ice cream from the factory to the company’s detecting freezers UTECTIC freezers (cold storage) from where the ice creams are transported throughout the country as well as abroad. The shopkeepers are given same margin in each outlet throughout the country.

ADVERTISING & SALE PROMOTION STRATEGY:

· ATL and BTL marketing activities
· TV commercial
· Magazines

KEY WEAK POINTS:

· Improper launch timings
· Excessively hot weather condition
· No proper advertisement of Choc lava as a separate product
· Fault with a product itself

MARKETING MIX

ü Product
The main problem was in the product itself, the chemical formulation of the condensed milk is such that it cannot with stand even a little high temperature and it leaks out of the ice cream even before having the first bite. And it becomes very massy for children to eat it. Also it complaints about the product being too sweet for the children to eat it. We are also planning to change it.
We as marketing managers have changed the ingredients of the ice cream. We have changed the light chocolate portion of the ice cream with vanilla and replaced the condensed milk with the semi liquid chocolate which would not prove to be as massy as the condensed milk. Furthermore as the composition of ice cream has changed, it is also necessary to change the name of the ice cream, so we have changed the name of ice cream from Choc Lava to “Vani Choc”.

LOGO & SLOGAN

ü Price
We have decided to change the price from Rs.12 to Rs.10. the main reason behind this change is the added convenience for children to purchase ice cream for ten rupees, rather

than twelve rupees as it is rather difficult to get three rupee change back. The pricing strategy used is the even number value perception.

ü Promotion
Presently Wall’s is advertising Paddle Pop as “Magilika”, rather than concentrating on the three products. The consumers are confused as they do not know the individual characteristics of the products under Paddle pop “Magilika”, as only the name “Magilika” was highlighted in all the promotional mediums. The print ad is attached in the appendix.
We have planned to re launch Choc Lava as “VANI CHOC” .This new ice cream will be launched under the existing brand name Paddle Pop Magilika but the ad campaign would be designed in such a way that each product of Magilika brand would be promoted separately. This means that instead of confusing the children by simultaneously portraying the three ice creams together in one advertisement a single ice cream would be advertised at one time.
As it is totally a kid’s based product so we would be conducting ice creams festivals in different schools, painting competitions would be held.

ü Distribution
We would be using the same distribution channel that Wall’s is already is using.

CONCLUSION

To put the pre-going discussion into nut-shell. It can safely be ventured to opine that WALL’s company has s much potential at that time but if WALL’s use the always differential strategy in proper manner we easily conclude that WALL’s will be able to lead the companies in the Pakistan and abroad.

RECOMMENDATION

Transform the formula of milk because it gives a taste of milk and too much fruits flavour etc etc.. at Lower the price.

And reduce the packaging costs Conduct more advertising and change the style of add

Campaigns. Latest flavours should be introduced so that a poor man too can afford it.
REFERENCES

· www.google.com

http://www.docstoc.com

http://www.scribd.com

Given Slides By Professor Hanif Shahzad & Related Books.

Phillips PROJECT

2010-05-21T06:14:00.000-07:00

Acknowledgement

At the first moment thanks to Almighty Allah for special blessings in completing the project. We are indebted to a number of persons for their advices, suggestions, directions and cooperation that has enabled us to prepare this project. First of all thank from the core of our heart to prof.Hanif shahzad who helped us in every step about our project by giving proper guidance, advice and inspiration.

Than I would take this opportunity to thank Sir Hanif, our teacher for the course of marketing the National University of Modern Languages, for his valuable support and encouragement which he has offered. His words of wisdom will always be remembered, and I am convinced that the knowledge of marketing that he has imparted would go a long way in making good managers and helping us all through our professional career.

Not but the least thank goes to our friends for endless help in collecting the information from some related web sites. Thanks all of you for providing help in developing the project.

Thanks a lot!

Executive Summary

This course helped us to implement our theoretical knowledge in our project. In this project we tried our level best to incorporate all the information and data that we have learned throughout this semester. So here we have covered the main activities that we have done. This project is prepared on the basis of one multinational company which is Philips. In this project we discussed about company brand, product lines, price strategy, placement and promotion. Beside that we also focus on the target market and the positioning as well.

Table of Content

Chapter 1: Introduction
1.1: Vision, Mission, Slogan and Logo
1.1.1: world wide scope
1.1.2: Pakistan scope
1.2: Philips Products
Chapter 2: Customer, design marketing strategy 2.1: Marketing Strategies
2.1.1: Target market analysis
2.2: Marketing mix strategy
2.2.1: Product strategy
2.2.2: Pricing Strategy
2.2.3: Distribution Strategy
2.2.4: Promotion Strategy
2.3: POSITIONING STRATEG
2.3.1: Target market
3.2.1: Current marketing objectives and performance
Chapter 3: Analysis and Recommendations
3.1: SWOT Analysis
3.1.1: Strength
3.1.2: Weakness
3.1.3: Opportunities
3.1.4: Threats
3.2: Performance analysis
3.3: Competitors of Philips
3.4: Company shares
3.5: Conclusion
3.6: Reference

Chapter No 1
Introduction

1.1: Vision, Mission, Slogan and Logo

1.1.1: world wide scope
1.1.2: Pakistan scope

1.2: Philips Products

INTRODUCTION

The focus of this project is basically to analyze the different management functions at Coca cola beverages Pakistan limited Karachi. These functions include market mix of Philips Company which is all about Product, Price, Placement and Promotion. We also discuss their Target market and Positioning as well. Lastly we discussed the conclusion in which we discussed the market share, and competitors of Philips.

Vision

In a world where complexity increasingly touches every aspect of our daily lives, we will lead in bringing sense and simplicity to people.

Mission

Philips has reinvented itself many times, but through it all our core, the soul of our company, remained intact. That is because it was part of our company since its inception in 1891.
"Improve the quality of people’s lives through timely introduction of meaningful innovations“

Philips slogan

“Philips sense and simplicity”

Philips logo

1.1.1: world wide scope

Philips is a electronics company. It is a Royal Philips Electronics Inc.it’s real name is Koninklijke Philips Electronics NVit’s a multi-national Delta electronics corporation.
Philips is one of the largest electronics companies in the world. In2009. Philips is organized in a number of Sector. Philips Consumer Lifestyle formerly Philips Consumer Electronics and Philips Domestic Appliances and Personal Care. The company was founded in 1891 by Gerard Philips, a maternal Cousin of Karl Marx, in Eindhoven, the Netherlands.
On 11 March 1927 Went Philips on the air with a station called PCJ, now known as Radio Netherlands Worldwide. It was broadcast two the Delta East Indies.Wed 9 May 1940, the Philips directors were informed about the Germantown invasion of the Netherlands two take place the Following Day. They decided two leave the country and two flee the United States, taking a large amount of the company capital with restriction.
After the war the company was Moved back to the Netherlands, with Their headquarters in Eindhoven. There is little Philips Could Have done two Prevent the Germans from abusing Their production facilities and forcing Their Employees to perform slave labor hum the Occupation. In 1972 Philips Launched the world’s first home video cassette recorder, the N1500 with bulky video cassette That Could record 30 minutes or 4 minutes. Later one-hour tapes were Also Offered.
Main articles of philips are Compact Cassette, Laserdisc, Compact Disc, DVD, and Blu-ray.Philips HAD Early Developments of a laser disk for selling movies Delayed but its commercial launch for fear of cannibalizing its video recorder sales.

1.1.2: Pakistan scope
“A world of Products and Services that will excite you and are designed with our company wide credo of "Let's make things better" in mind. After fifty five years of operations in Pakistan, Philips has grown into one of the leading companies involved in Consumer and Professional Lighting, Electronic Goods and Domestic Appliance Products, employing over 382 Pakistanis. Of the 146 million people living in the country, most know our name quite well. In the early years beginning 1948, Philips began its operations here in Pakistan dealing with only a few consumer domestic products that is Light Bulbs and Radio. An apt beginning, the Light Bulb and radio paved the way to an even brighter future for Philips in Pakistan. Today Philips Pakistan has come full cycle. It business operation has spearheaded further to include, local assembly and manufacturing of Electrical and Electronic Products. It is evident that the company has achieved a recognizable status as a major Business Unit of Electronic Products and a net contributor to the Pakistan Economy.
Philips Pakistan a company of turnover reaching Rs. 3.0 Billion in 2001 with a work force of 382 people is one of the prestigious companies in the country, which has been awarded "Best Twenty Five Companies Award" from Karachi Stock Exchange on a number of occasions. Philips Pakistan is indeed dedicated to living up to the company's global philosophy of "Let's Make Things

1.2: Philips Products
Philips Brands and Product lines
Medical systems products
Healthcare Informatics
I Site PACS
View Forum
Xcelera
Imaging Systems
Cardio/Vascular X-Ray
Computed Tomography (CT)
Fluoroscopy
Nuclear Medicine
PET (Positron Emission Tomography)
PET/CT
Radiography
Radiation Oncology Systems roots
Ultrasound
Defibrillators
Equipment
Software
Accessories [edit] Diagnostic Monitorin
Diagnostic ECG
Patient Monitoring
Multi-Measurement Servers
Anesthetic Gas Monitoring
Blood Pressure
Neurophedeoiles
Pulse Oximetry
Temperature
Transcutaneous Gases
Ventilation
Clinical Information Systems (OB Trace Vue, Compu Record, Care Vue Chart)

Chapter No 2

Customer, design marketing strategy

2.1: Marketing Strategies

2.1.1: Target market analysis

2.2: Marketing mix strategy

2.2.1: Product strategy
2.2.2: Pricing Strategy
2.2.3: Distribution Strategy
2.2.4: Promotion Strategy

2.3: POSITIONING STRATEG

2.3.1: Target market
3.2.1: Current marketing objectives and performance

Customer, design marketing strategy

2.1: Marketing Strategies

2.1.1: Target market analysis

Because of Italy’s declining growth rate, Philips should target the people living in the major cities of the north and the central region of Italy where there is greater wealth. These cities are considered the more industrial cities of Italy, hence they will have the largest workforce and so citizens that have more income. In addition, because these cities are more industrialized, they will tend to have citizens who suffer from higher levels of stress, which in turn leads to sleeping difficulties.
With regards to age, PHILIPS should target the largest age demographic groups, that is to say the 25-44 year old group and the 45-64 year old group. These segments will have the highest income, the most wealth, the most disposable income to spend on personal care products and non-food products (Appendix 4). In the result, the total value of the whole Italian market with all age groups can be estimated at 1.3 billion EUR. The target market with the 25-44 year old group and the 45-64 year old group in the North and Central Italy can be estimated approximately at 510 million EUR (Appendix 5). In addition, PHILIPS can look at future potential market, the hospitals, which may be willing to purchase this medical device.
Finally, men and women that are opposed to using medication in order to improve sleeping habits; people that look to more natural ways of improving sleeping patterns; people who are educated enough to understand the way the lamp improves hormones levels in order to improve sleep; these are the types of people that Philips should aim to sell their lamp to.

2.2: Marketing mix strategy

Marketing mix of Wake-up Light

2.2.1: Product strategy

The product is branded as a Wake-up Light. The name differentiates from already existing lamps in this segment in the US or Canada, which chose names such as ‘sunrise alarm clock’ or ‘progressive alarm clock’. The strategy, clearly, aims to position PHILIPS as the first in the segment of wake-up lights, although sunrise alarm clocks perform similar or the same function.
The Wake-up Light is already available in France and Germany with a further rollout expected in other European countries. The device is offered as two models; basic-HF 3451/01 and premium model (HF 3461/01)) with more natural sounds and with a digital FM radio. Wake-up sounds are available such as friendly wake-up beep, 3 natural sounds (morning birds, seashore, and pond) or your favorite radio station. The user can also mute the sound immediately. The device has proven health benefits, as certified by the Medical Device Directive (MDD).

2.2.2: Pricing Strategy

PHILIPS follows the practice of ‘price skimming’ in the French and German markets. It involves charging a relatively high price for a short time where this innovative and much-improved product from other lamps already available in countries such as the US and Canada is launched onto a market.
As a consequence, with skimming strategy in Italy, the company will skim off customers who are willing to pay more to have the product sooner; prices are expected to be lowered later when demand from the early adopters falls.
Retail price in France and Germany is positioned at €89 for the basic model and €129 for the premium model, offering additional features. Italian market should adopt the same price level as in the first rollout countries. This will enable PHILIPS to meet company’s expectations to achieve on average 10-12% margin on its lighting products.
Interestingly, the internet shop such as Amazon.com sells already reduced PHILIPS’ products HF 3451/01, the basic model, for € 69.99 and PHILIPS HF 3461/01, the premium model, for €99.99. It shows that the high price for early adopters can be sustained for about 6 -8 months after the introduction.

2.2.3: Distribution Strategy

In Italy the distribution sectors of electrical appliances are facing significant changes. Specialist retailers have represented the main channel of distribution for electrical goods, resulting in a control of more than two thirds of the market in 2005 (Table 5). The hypermarket sector has however been growing fast in Italy and is expected to increase its market share in the smaller electrical appliance sector. This rather new channel must therefore also be considered when distributing the wake-up lamp, giving the opportunity to be close to the customers on a near daily basis. Though, this is a trade-off as the more common image of hypermarkets could be transferred to the product, reducing its exclusivity. The figure below highlights the distribution structure in the electrical product industry in Italy.
Italy: Electrical goods, estimated sales by channel of distribution, 2005
€bn (excl. sales tax) %
Electrical specialists 9.8 67.0
Computer specialists 1.5 10.3
Food retailers 1.2 8.2
Furniture retailers 0.8 5.5
Photographic specialists 0.6 4.1
DIY retailers 0.4 2.7
Others 0.3 2.1
All electrical spending 14.6 100
PHILIPS, being the number one brand in category of the smaller electrical appliances, has already an established distribution network. This is strength because experience, relations and knowledge of the process make them more efficient and increase their power as a manufacturer.
The Italian electrical sector has traditionally been comprised of small retail outlets, but the growth and entering of major European (multiples) retailers has started to change the structure of this market, with a tendency towards larger formats. This trend is driven by the reform “Bersani Law” from 1998 which removed a lot of the protection that the smaller retailers had against the establishment of larger groups. In addition, the reform has led to a domestic consolidation where extensive buying groups, characterized by collaborative buying and common marketing strategies, are dominating. Many domestic businesses now operate under one of the four major buying groups. The foreign multiples such as Media-Saturn and DSG International have however given the buying groups, such as Expert, Euronics, and ElectronicPartner strong competition the recent years. In addition, the foreign entrant Fnac is a player that must be considered as they have gained market share in the latest years. Nevertheless, the key channels involved are Buying Groups (as Euronics), Chains (as Mediamarket) and PHILIPS should introduce the lamp also in the Rinascente, department store.
In the introduction phase of this product, PHILIPS should focus on a penetration of the market based on distribution in all the main electronic retailer chains, both the buying groups and foreign multiples. Due to the skimming pricing strategy, PHILIPS should not distribute the wake-up lamp in hypermarkets in the in the introduction phase, though this channel is highly attractive when the sales move into the shake-out and mature phases.

2.2.4: Promotion Strategy

PHILIPS should try to use multi-channel marketing and strategically coordinate the messages and media used. All the various communication and communication media have to be evaluated as a whole to establish the desired knowledge of the product at the lowest cost. For instance, the same sound effects can be used across different media; a radio jingle can serve as a reminder of a TV ad with the same sound effects. The same goes for visuals, a print advertisement/billboard can serve as a reminder of a TV ad with the same graphics/visuals.
Communicating through several media results in various learning/coding of the information communicated. Thus, the consumer will have more paths for information retrieval, and therefore a better chance of recalling information.
Brand awareness is often the point of ad campaigns, such as TV-ads. However, the links between the brand and the uniqueness and advantages (associations) are often limited. To establish these links, ad retrieval cues can be used at the point of purchase. These cues can be on the product itself, in the store (posters etc) or on the website. The various media and forms of communication must support each other and be complimentary.
Possible promotion channels
1 In-store demonstrations
2 Subway-ads – 1 000 0000 possible viewings each day in Milan.
3 National TV (avoiding music channels because the audience is not consistent with Philips’s light target market)
4 Local TV
5 Newspapers
6 Lifestyle-Health Magazines - reach the target group of health-conscious consumers
7 Billboard campaigns - fronting PHILIPS brand with an innovative product
8 PR: People are generally more skeptical when they know they are being advertised to, try to get news media coverage, focus on the health aspects.
9 Internet (for ex. banner top on eBay.it)
The product launch is in October 2007. The promotion in the introduction phase should be aimed at the innovators and early adaptors. The budget is estimated at 0.765 million EUR (Appendix 5). The 5 month press campaign is estimated at 0.25 million. The rest of the budget accounts on TV-ads, radio and the Internet (Appendix 9).
The marketing communication seeks to build awareness of the product and to educate potential customers about the product. Therefore, the promotion in the time prior to the launch should be focused on getting press coverage. Not paid-for advertising has a much higher credibility than paid-for advertising, and will resonate better with the kind of people we are trying to reach. Trying to get coverage in life-style magazines, health-magazines, technological magazines and blogs is the focus of the communication campaign in August and September and October. TV-ads will be focused in December, before the Christmas sale, more aimed at the mass market.
On the website, from December 2007 until May 2008, PHILIPS should have a 30-day free trial period with money-back guarantee offered to all the people who would like to test the Wake-Up Lamp. In addition, PHILIPS should have a promotional game, where people could win their own PHILIPS Wake-Up Lamp. The game would run for a limited time only. Consumers would have to register their email and create a password in order to start. Players would play for points and the people with the highest points would get the chance to win a new Wake-Up Lamp. This would be launched in October as well and would run for a limited time.

2.3: POSITIONING STRATEGY

2.3.1: Target market

The human body is accustomed to the rhythms of the sun. Therefore simulating its dawn is actually highly beneficial for many people who suffer from sleeping disorders. The PHILIPS Wake-Up Lamp can be used by a wide variety of people. From those who have difficulties falling asleep, to those who have trouble waking up, and even to those who are affected by Seasonal Affective Disorder, the Wake-Up Lamp can be valuable for a large demographical target.
Italy’s population has been growing at a steady rate in the last few years but at a much lower rate than other countries such as France and Spain. Below is a table of the population in 2003 by age and sex that indicates the dominance of the older age groups.
Table 2: Italy: Population, by age group and sex, 2003 in (‘000)
Age (years) Males Females Total % of total
0-14 4,237 4,006 8,243 14.2
15-24 3,196 3,066 6,262 10.8
25-44 8,910 8,826 17,735 30.6
45-64 7,189 7,491 14,680 25.4
65+ 4,537 6,432 10,968 18.9

Total 28,069 29,820 57,888 100.0
From this data, it is clear that the largest age demographic groups are the 25-44 year old group and the 45-64 year old group. In terms of geography, the most prosperous regions are the Lombardia region and Lazio region.
In Italy, spending is increasing in discretionary areas such as personal care. In fact, consumers are seeking new and easier ways to achieve a healthy lifestyle. More fundamental categories, such as housing, water, energy and food, continue to account for the largest shares of spending.
Considering all these factors, the ideal target will be the men and women who work and have a relatively mid-range to high incomes, who live in city centers of the north east part of Italy, who are able to afford the PHILIPS Wake-Up Lamp. The ideal target will also be the men and women who understand the importance of sleep, the people who spend money in order to remain healthy and to increase the health of their mind and body. In fact, one of the targets may be parents. Once realizing the benefits they obtain from using the Wake-Up Lamp, they may use it on their children and suggest it to others. Women seem to experience more problems with sleep and it may be more advantageous for PHILIPS to target women, however, the benefits of using the Wake-Up Lamp should be directed to both men and women. The men and women who are more educated with regards to the benefits of sleep and it repercussions on one’s health are definitely the type of people that PHILIPS should focus on. Men and women that are opposed to using medication in order to improve sleeping habits; people that look to more natural ways of improving sleeping patterns, people who are educated enough to understand the way the lamp improves hormones levels in order to improve sleep; these are the types of people that PHILIPS should aim to sell their lamp to.

3.2.1: Current marketing objectives and performance

PHILIPS wants to be market leader producing premium-price products, with high quality and design; it tries to build enter blocks to the market keeping on with its continuous product and process innovation.
Increase the number of potential users
People are changing the definition of well-being to move beyond money, career and materialism towards quality of life, strongly linked with the spirituality and the environment, be it the natural, the physical, the social or the cultural one.
PHILIPS continuously adopts a human-focused exploration and implementation of technological innovation, the main means of simplifying and enriching people’s life. So the company has the resources, the knowledge and the credibility to solve the task of improves quality of life.
Brand equity and brand awareness
PHILIPS is one of the biggest international company and they frequently communicate that technology exists to make life easier and more prolific. Surely this product is consistent with PHILIPS’ mantra sense and simplicity: the company, since far past, has been delivering new, relevant and easy to experience benefits of technology, trying to improve people’s life.
Corporate social responsibility and brand reputation
PHILIPS is in a very good position to develop a sustainable brand and business, and to link the brand to the sustainability challenge of improving people’s quality of life. Until now, PHILIPS’ promise has only partially covered the personal sustainability dimension: simplifying people’s lives through 'easy-to-use' devices. There is room for growth and this one area where PHILIPS will focus on.

Chapter No 3

Analysis and Recommendations

3.1: SWOT Analysis

3.1.1: Strength
3.1.2: Weakness
3.1.3: Opportunities
3.1.4: Threats

3.2: Performance analysis

3.3: Competitors of Philips

3.4: Company shares

3.5: Recommendation

3.6: Conclusion

3.6: Reference

Analysis and Recommendations

3.1: SWOT Analysis

3.1.1: Strength

PHILIPS is a strong global brand with over 100 years of lighting expertise and has achieved a high level of recognition among consumers worldwide, with increasing levels of consumer awareness. They are considered to be the number one manufacturer of small electrical appliances. With regards to the Wake-Up Light, there do not exist any direct competitors, as there are no established products with similar features in the market. PHILIPS is a very knowledgeable company and has experience with launching new products, pricing, marketing, testing, production and service. A strength that may be of importance in the future with increased competition is that the restructuring of PHILIPS has made it more competitive and less sensitive to price competition.
In addition to all these strengths, PHILIPS has a well established distribution network; they already use a broad range of distribution routes, e.g. mass merchants such as hypermarkets and discount outlets, as well as specialist chains, department stores and mail-order companies.
In October 2006, PHILIPS launched the Wake-Up Light in France. Therefore, they have had experience related to this product within similar markets. They know how to increase sales and how to deal with the European market with regards to the Wake-Up Lamp. Another with regards to the Wake-Up Lamp is the fact that it is in tune with the increased focus and consumer spending on products focusing on quality of life.

3.1.2: Weakness

In recent years, PHILIPS has been in a relatively weak financial position, operating on low margins (though these improved slightly in 2005 as a result of restructuring efforts) and high debt levels. The company may be forced to reduce its expenditure on research and development in the face of rising costs and low margins, which has historically been its key to success.
Another weakness may be the unwillingness to adopt the Wake-Up Light as another alternative to an alarm clock. People may be skeptical to spend money on such a product.

3.1.3: Opportunities

A growth in sales within the electrical retailing is expected to occur in the coming years. The high price competition is, however, reducing the speed of growth. Today’s strong focus on health, quality of life, and sleep as an important contribution to better health favor the introduction of this product. In addition, Italians, due to their sleeping habits, favor the sale of this product; Italians have a tendency to cover their windows with heavy shutters during the night to prevent noise and street lights from disturbing their sleep. There is no natural light that can enter the room in the morning to allow for the body to naturally awake. There is therefore good potential for the PHILIPS Wake-Up Light.
Currently, there exist no products with similar features as PHILIPS’ Wake-Up Light in the Italian market. The attractive segments are those with highly concentrated population such as the Lombardia, Campania and Lazio regions. In addition, Lombardia is perhaps the most prosperous of the three with GDP per capita 30% higher than the rest of the country. This makes the marketing effort more efficient and more target oriented.
In terms of threats, there always exists uncertainty when a new product is launched in a new market. There are also high costs associated with the launching new products; customer training, marketing and many more. Moreover, other companies may follow suit and compete against PHILIPS.
With regards the technological aspect, resistance for new technological products increases as consumers’ age increases. Older people may be skeptical to try this new product. Furthermore, Italians have a lower average level of disposable income than other European countries, which may reduce the attractivity of this market in comparison to others.
Another point to consider is the growth of foreign-owned electrical chains and a strong consolidation between the retailers which would reduce profit margins in the sector. The electrical goods sector is expected to continue to under perform in relation to all retail sales in the following years. Falling consumer demand and rising competition have been pushing prices down in the electrical sector. The company may be forced to reduce its expenditure on research and development in the face of rising costs and lower margins, which has historically been its key to success. A reduction has already been seen in terms of proportion of sales.

3.1.4: Threats

Another threat is with regards to cellular phones. In today’s day and age, most people have one if not more mobile phones. These are equipped with several functions, including an alarm function. Therefore, mobile phones will increase the price sensitivity for wake-up products, as people may not be willing to justify additional costs for a function they currently have access to.
Lastly, the presence of persons with SAD and other light related diseases are almost non-existent in the southern part of Europe as the light conditions are more stable than in the more northern parts of Europe. This could limit sales of the Wake-Up Light.

3.2: Performance analysis

Koninklijke PHILIPS Electronics NV: Key Facts
Name Details
Company name & status: Koninklijke PHILIPS Electronics NV
Headquarters: Netherlands
Sector involvement (2005): Small electrical appliances
Region involvement (2005): Western Europe, Eastern Europe, North America, Latin America, Asia Pacific, Australasia, Africa and Middle East
Source: Euromonitor International from company reports.
Koninklijke (Royal) PHILIPS Electronics is one of the world’s leading consumer electronics manufacturers, producing a wide range of products, including medical equipment, consumer electronics and domestic appliances. Koninklijke PHILIPS Electronics NV is the parent company of the PHILIPS Group, commonly called PHILIPS, and is listed on the stock markets of Euronext Amsterdam and the New York Stock Exchange.
PHILIPS’ largest divisions are Consumer Electronics sales and Medical Systems with 34% and 20.7% of total sales respectively (Appendix 2). DAP represents one of its smallest divisions, accounting for just 7.2% of total sales in 2005.
Because the Wake-Up Light combines experience from lighting and electronics technology, consumers can associate the product’s excellence and expertise from two of its divisions; PHILIPS Consumer Electronics and PHILIPS Lighting.
PHILIPS SpA, the Italian subsidiary of Koninklijke PHILIPS Electronics NV was one of the top brands in the Italian consumer electronics market during 2003 In terms of volume sales performance, Samsung experienced the best performance, achieving volume growth of 13% between 2002 and 2003, giving Samsung 9% of Italian consumer electronics retail volumes in 2003. Samsung proved the best consumer electronics performer between 2002 and 2003 due to its competitive price positioning. Meanwhile Sony and PHILIPS retained their positions as the leading brands. However, their performance has been more subdued than lower priced rivals such as Samsung. PHILIPS lost 0.5 percentage points over the same period as a result of greater competition from more price competitive brands.

3.3: Competitors of Philips

MARKEPhilips's competitors include General Electric Company (GE), Sony (SNE), Siemens AG (SI), and Matsushita Electric Industrial Company (MC). Philips is #1 in both light bulbs and male electric shaving. The firm's two largest competitors (annual revenues of over $100 billion), GE and Siemens, compete primarily in Medical Systems and Lighting. Sony is a force to be reckoned with in Consumer Electronics. Matsushita Electric Industrial Company is probably the company's most direct competitor, challenging Philips in nearly every segment except Medical Systems
As Philips reshapes itself into a medical device, technology, and personal-care company, it will have to overcome dominant market presence by Siemens and GE. Additionally, the firm will have to maintain its position in Consumer Electronics against Sony and Matsushita Electric Industrial Company. In lighting, Philips will have to fend off nearly all of its competitors to maintain the #1 position.

2006
2006
2005
2005

Revenue
Profit
Revenue
Profit
General Electric Company (GE)
$163
$21
$148
$17
Siemens AG (SI)
$120
$4
$104
$3
Matsushita Electric Industrial Company (MC)
$74
$2
$73
$1
Sony (SNE)
$68
$1
$61
$1
Philips
$37
$7
$36
$4

Note: Figures based on July 20th, 2007, exchange rates.

3.4: Company shares

Consumer Electronics Company Shares 2002-2003 (% retail volume)

Company 2002 2003
Sony Italia SpA 21.2 20.9
PHILIPS SpA 18.1 17.6
Samsung Electronics Italia SpA 7.6 8.5
Pioneer Electronics Italia SpA 3.9 3.8
Canon Italia SpA 1.8 2.3
Kenwood Corp 1.8 1.6
JVC Professional Europe Ltd 0.8 0.7
Casio Computer Co Ltd 0.3 0.6
Clarion Co Ltd 0.3 0.4
Panasonic Italia SpA 0.3 0.2
Hewlett-Packard Italiana SpA 0.1 0.2
Others 43.7 43.1
Total SA 100.0 100.0
Sales of consumer electronic products in Italy are projected to continue growing rapidly, with the largest gains in sales likely to come from new product developments.
Furthermore, PHILIPS is No.1 in the global lighting market, including Italian, a position supported by leadership in innovation combined with a systematic approach to seeking out new market opportunities. Lighting division consists of the following businesses: Lamps, Luminaires, Lighting Electronics, Automotive Lighting, Special Lighting Applications, Solid-State Lighting Modules and Lumileds.
Full-year sales at Lighting grew by 8% on a comparable basis and 14% in nominal terms.
3.5: Recommendations
I would suggest some recommendations to Philips to adopt more successful operation in Pakistan.
· Drive consistent and cost-effective learning standards across whole Philips Lighting.
· Develop effective learning and development strategies to achieve business goals. Make recommendations for improvement to learning process, design and implementation to better meet Lighting learning strategy
· Apply latest Lighting development trends and learning expertise to design effective learning and development activities to achieve business outcomes
· Prepare and launch a communications plan to involve and excite learning practitioners, business and HR leaders.
· Consider culture and behavior changes required among learning practitioners, leaders and learners to achieve learning strategies.
· A Philips launch beautiful lamp that shines in all colors of the rainbow. Create the mood in your house you want.
3.6: Conclusion
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one of the world’s biggest electronics companies and Europe’s largest, with sales of EUR 29 billion in 2003. It is a global leader in colour television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. The electronic industry of Pakistan consists of a few producers in the industry. The demand for this product is very much vulnerable in terms of pricing. Philips is providing electronic appliances at a price which is affordable to most of the people in the country. As a multinational company Philips Pakistan with heavy promotional activities, has been able to penetrate the market. With different electronic appliances, different sizes, international standard and high quality design, as a product, Philips has been highly successful over the years. Its distribution process is highly efficient It promotional activities. Overall with its marketing activities Philips has been a successful brand.

3.7: Reference

v http://www.lighting.philips.com.pk/v2/index.jsp
v http://www.usa.philips.com/
v http://en.wikipedia.org/wiki/Philips_Lumileds_Lighting_Company

v http://www.philips.com/shared/assets/Investor_relations/pdf/corporategovernance/Agenda2010-EN.pdf
v http://www.energy.ca.gov/appliances/2008rulemaking/documents/2008-01-15_workshop/presentations/Erhardt_Robert_Philips_Lighting_Recommendation.PDF
v http://www.linkedin.com/jobs?viewJob=&jobId=943215
v http://www.energy.ca.gov/appliances/2008rulemaking/documents/2008-01-15_workshop/presentations/Erhardt_Robert_Philips_Lighting_Recommendation.PDF

Metro_cash&carry project

2010-05-21T06:08:00.000-07:00

ACKNOWLEDGEMENT

We are very thankful to Allah Almighty who has given us the power and ability to think and judge the matters and then to make use of the blessed abilities. Our most respectable teacher Prof. HANIF SHAHZAD is the only source who directed us to apply our abilities in the required direction.

TABLE OF CONTENTS

Sr
Description
Page
1
Executive Summary

2
Mission and Vision Statement
1
3
Introduction of Metro
2
4
History of METRO
6
5
METRO in Pakistan
10
6
Customer Driven Marketing Strategy

10
7
Segmentation, Targeting & Positioning
11
8
Logo & slogan
12
9
Marketing mix
13
10
Conclusion
14
11
Recommendations
16
12
Competitors
17
13
References
18

Chapter 1
Introduction and History

Executive Summary

This report is about the significance and objectives of a Strategic Marketing and implementations in the real market.
This report is mainly concerned with the marketing plan for METRO Cash & Carry, the departmental chain business. In this report we have discussed that on what grounds the METRO has divided its market into different segments, how they present the product in the mind of the customers. We have surveyed the market and identified such segment of market which is not responding in that way which the company is expected from it. And after this process we select the retailers as customers of METRO store.
Moreover, this report shows the competitive advantage of METRO and we check it out whether this advantage is actually working efficiently. Analysis of external (task and macro environment) or PEST analysis and Porter’s five forces model and focused internal environmental audit is included in this report.
After assessing all these things we identify that in which sector the problem arises and after analyzing we suggests certain recommendations to the company to become more efficient and profitable company and satisfy their retail customers.
Mission Statement

“METRO is a Cash & Carry Wholesaler for businesses and professionals. METRO provides quality products and business solutions at the lowest possible prices”

Vision Statement

“METRO will dominate the Cash & Carry wholesale segment globally, through our unique business formula which improves the competitiveness of our customers all over the world.”

Introduction of METRO
METRO Cash & Carry is a leading international company in self-service wholesale and operates more than 600 outlets in 29 countries. It is 3rd largest trader in world, 2nd largest in Europe and the Largest in Germany with a turnover of €59.9 billion in 2006. METRO is operating around 2,378 locations in 29 countries, with employees numbering over 263,000
At the operational level, the group’s five sales divisions conduct business independently in their respective markets. With over 100,000 employees worldwide, the company achieved sales of € 31.7 billion in 2007. By generating almost 50 percent of the total sales, METRO Cash & Carry is the top-selling sales brand of the METRO Group. Assortment and service of METRO Cash & Carry’s unique business-to-business model are targeted only towards professional customers such as hotels and restaurants as well as small and mid-sized retailers or institutions. The company offers these special groups a high level of assortment competency both in food and nonfood as well as attractive wholesale prices. An efficient and internationally conferrable concept ensures success in entering new markets.
Following is the structure of METRO Group:

History of METRO
The first METRO Cash & Carry store was opened in Germany in 1964, the first store abroad in 1971. Since then, the concept has continuously proven to be robust and apt for successful operations in all kinds of market environments. Three different store formats, "Classic", "Junior" and "Eco" allow choosing the best solution for a given environment. They differ in store and assortment size. Lately, the expansion into new markets has been on Eastern Europe and Asia, using mainly the middle sized "junior" store format.
Till now, METRO Cash & Carry has had stores in the following countries:
Metro all over the World

METRO in Pakistan
METRO Cash & Carry announced its operations in Pakistan in January 2006. Since then, it has established itself as a potential market leader in wholesale. Under the supervision of Managing Director Mr. Giovanni Soranzo, METRO Cash & Carry Pakistan has opened its first store in the city of Lahore in October 2007.The Company’s country head office is also based in Lahore and currently employs over 400 people in two offices. It has done total Investment of US$ 180 Million and plan to build & operate 10-15 Cash & Carry Stores in Pakistan. There are about 250–300 employees per store and the head office is at Multan Road.
Objectives
Acknowledged first choice Cash & Carry Wholesaler
Continuous focus on customer needs and satisfaction
Commitment to ethical and environmental values
Open communication
Innovative in all we do
Commitment to give our customers more value for their money
Win-win partnership with our suppliers
Our employees are our main asset

Market
METRO cash and carry business lies in the Monopolistic Competition. There are few sellers and each has its own specialization and it charge the prices according to the product quality and characteristics. There is no entry or exit barrier in this market. Even five more cash and carry businesses are allowed by government to open their branches in Pakistan

Chapter 2
The Marketing Process

Customer Driven Marketing Strategy

Segmentation
I design the proper segmentation of the METRO Cash and Carry:
Geographic
Region South Asia
Country Pakistan
State Punjab
City Lahore, Islamabad

Demographic
Occupation HoReCa
Income Level Minimum Rs.20000
Economic factor Inflation, reduced Productivity

Psychographic
Social Class Working Class (Retailers and
Professionals)
Buying Habits Convenience
Perception High Quality with low price
Personality Profit Conscious

Behavioral
Benefits Shopping at one place, Customer Care
Usage rate weekly
Occasion Regular
Loyalty status Strong customer relationship
Readiness Stage Desirous

Targeting
At this time METRO cash and carry is concerning with the differentiation strategy. They can also come up with the focus strategy for the retailers so that they think that METRO cares them and conducting a major portion of business just for the retailers. It will convince and internally force them to come to METRO just to admire its services and respect to the retailers.

Positioning
METRO at this time although trying to get the low price as the image of this services but they are not properly using the positioning strategy. They have to come up with the positioning statement that conveys the true picture of the METRO along with the benefits of the customers.
The following can be a good positioning statement for METRO Cash and Carry.

“Provide wide range of quality products at lowest prices.”

LOGO

SLOGAN

“cash & cary”
Marketing Mix
PRODUCT
Lahore
In the growth stage the firm seeks to build brand preference and to increase market share.
Product quality is maintained and additional features and support services may be added.
Pricing is maintained as the firm enjoys increasing demand with little competition. Pricing to cover development costs
Place and distribution channels are added as demand increases and customers accept the product.
Promotion is aimed at a broader audience

Islamabad
In the introduction stage the firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows:
Product branding and quality level is established and intellectual property protection such as patents and trademarks are obtained.
Pricing may be low penetration pricing to build market share rapidly of high skimming pricing to cover development costs
Place is selective until consumers show acceptance for the product.
Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product.

PRICE
As far as pricing is concerned METRO is doing well in this section because METRO has not its own product. It just acts an intermediary for the manufacturers, so it charges very nominal profit on the prices given by the manufacturers.

PLACE
It should provide carriage facility to the customers on reasonable charge.
It should open another branch in Lahore at Gulberg so that people of DHA , Cannt, Garishahu , Shadman and Gulberg can easily visit it.

PROMOTION
We are suggesting the three months promotional campaign for the METRO cash and carry.
For this purpose we suggest the following media and their significance to capture and target the retailers and professionals.
Ambient Advertising
We will publish our ads on the back side of the electricity commercial bills through out three months all over the Lahore and Islamabad.
Per month charges =
Total charges for the three months campaign =

Press Advertisement
Our customer is the retailers so we just confine our promotion in newspaper ads in AWAZ in Lahore. Because retailers usually read this newspaper.
Ads will be published on Friday and Sunday.
Per day charges
Weekdays =Rs 963
Sundays =Rs 1060
We publish 27 cm by 4 columns ads on the back page.
Ads for the three months campaign
Weekdays (13 ads) = (27*4*963)*13 =Rs 1352052
Sundays (13 ads) = (27*4*1060) *13 =Rs 1488240
In Islamabad we opt the Daily Jang newspaper for these two days for initial two months campaign.
Ads will be published in colors on Friday and Sunday on the back page.
Per day charges
Weekdays =Rs 2850
Sundays =Rs 3270
We publish 27 cm by 4 columns ads on the back page.
Ads for the three months campaign
Weekdays (13 ads) = (27*4*2850)*8 =Rs 24,62400
Sundays (13 ads) = (27*4*3270) *8 =Rs 28,25280
Outdoor advertisement
We are placing the billboards at the specialized whole sale markets with the respective products, such as Shah-Alam Market we will place the different house hold accessories ads and in Abid market the electronics ads and Akbari mandi the grocery ads and at the liberty round about in Lahore and in Islamabad in G-9, Faizabad and commercial markets.

Lahore
Abid Market (quarterly) size 90*30 =Rs 12,00,000
Ichra (quarterly) size 60*30 =Rs 9,00,000
Akbari Mandi (quarterly) size 60*30 =Rs 9,00,000
Liberty Round About (quarterly) size 90*30 =Rs 2,125,000
Islamabad
G-9 Sector (quarterly) size 90*30 =Rs 1,250,000
Faizabad near Ojari camp (quarterly) size 90*30 =Rs 1,325,000
Commercial market (quarterly) size 60*30 =Rs 5,00,000

Outside transport advertising
Print the METRO ads along with the product lines and features on the local public transport of Lahore Deawoo service at the rout no 10 and 16 and New khan services on route no 22.
Four buses on each route
Daewoo rate for 500 sq ft (quarterly) =Rs 1,56,250
Total 8 buses on different routes =Rs 1,250,000
New Khan rate for 500 sq ft (quarterly) =Rs 6,8750
Total 4 buses on different routes =Rs 2,75,000

Personal selling
We will send our representatives to the professionals, restaurants and hotels and large bakeries to visit our store and purchase the products from METRO for their uses in services. We also provide carriage facility to our key accounts.

Sales promotion
We will provide discounts on specific items such as grocery, clothes and shoes in the month of Ramadan. We will confine our profit margin from 3% to 1.5% just in Ramadan.
We will introduce a sales promotion week after every two months in which we will drop our profit margin by 1%.

Chapter 5
Conclusion and Recommendation

Conclusion
Summarizing on the whole we have analyze maximum points which might be the resultants of failures and we have suggested the methods to rectify them in order to be efficient in every manner and hold its situation and be the market leader of the cash and carry business in Pakistan.

Competitors
Makro is a chain of self-service wholesale stores, so called cash and carry. The first one opened in 1968 in Amsterdam. In the following years stores were opened in the Netherlands and in several other countries within Europe. During the 1970s and 1980s Makro extended its business to America and Asia. Makro later closed its North American sites, however. The stores are not open to the general public, only to businesses which must be registered members in order to gain entry to the store. The still privately owned SHV originated in 1896 from a merger between a numbers of large coal mining companies, some of which had been active since the 18th century.
In 1998 the European Makro stores were acquired by METRO a German based retail and wholesale company founded in 1964. The Non-European Makro stores are still owned by except for the ones in South Africa and Zimbabwe.

Recommendations
Apparently, METRO appears a planned and controlled environment but room for improvement is always there.
I suggest the following recommendations to METRO which will help it to sustain its market position and to become market leader in Pakistan.

· Telemarketing
· Exhibitions and fares promotions
· Customer panel
· Metro bags for free
· Gift certificates etc

References

Jim Blythe, 2003, Marketing Strategy, McGraw Hill & Co.
Philip Kotler, 1995, Principals of Marketing, 11th edition
www.metro-cc.com
www.google.com
www.wikipedia.com
www.metro.pk
http://www.metro.pk/servlet/PB/menu/1005221/index.html
http://www.paktive.com/METRO-Cash-and-Carry_170SD24.html

NESTLE PROJECT

2010-05-21T06:03:00.000-07:00

TABLE OF CONTENTS

SERIAL #

PARTICULARS
PAGE #
01
TABLE OF CONTENTS
02
02
ACKNOWLEDGMENT
03
03
INTRODUCTION TO NESTLE
04
04
HISTORY OF NESTLE
05
05
VISION OF NESTLE
07
06
MISSION STATEMENT & OBJECTIVES OF NESTLE
08
07
ORGANIZATIONAL CHART
09
08
BRANDS
11
09
EARNINGS
12
10
SWOT ANALYSIS
13
11
MARKETING
14
12
STRATEGIES ADOPTED BY NESTLE
15
13
COMPANY ENVIORNMENT
20
14
CO-OPERATE GOVERNANCE
21
15
PORTER FIVE FORCES ANALYSIS OF NESTLE
22
16
APPENDIX
23

ACKNOWLEDGEMENT

First and foremost, we would like to thank Almighty Allah for giving us the ability and strength to complete this project. Secondly, we are also thankful to our respective parents for providing us with the opportunity to receive higher education in such an accomplished institution that required us to carry out such projects that expand the dimensions of our mind. We are definitely not forgetting to recognize the efforts and support of our teacher SIR S.M FAHEEM, without whom this project would not have been possible. Who give us the opportunity to work on a project, which not only enlarged our vision but also show, us the real picture of the market Management? Our special thanks to the group members, who have whole-heartedly work for the completion of this report. All of us have earned a valuable and worthy experience during the project.

INTRODUCTION

Nestlé was founded in 1867 by pharmacist Henri Nestlé on the shores of Lake Geneva in Vevey, Switzerland. One hundred and thirty-four years later, our headquarters are still in Vevey, surrounded by the Swiss Alps in one of the world’s best-preserved environmental settings. As they have grown from humble beginnings into the world’s largest food company, they have attempted to take the fundamental cultural values of environmental preservation and cleanliness into every country where they operate. Company has 468 Nestlé factories currently in operation.
-Company’s facilities reflect the environmental values basic to Nestle Company.
-Top management follow the Company’s environmental performance
-Company’s Environmental Officer reports directly to General Management to ensure there is on-going awareness regarding environmental affairs.
Nestlé Environmental Advisory Group meets regularly to review current environmental issues and to anticipate potential concerns. This allows them to maximize control over their activities and contribute to sustainable development in the countries where they operate. The Nestlé Environment – Progress Report 2000 describes the results of continuous improvement in its environmental practices and being a leader in environmental performance

HISTORY

1866-1905
In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestlé's new formula saved the child's life, and soon, Farine Lactée Henri Nestlé was being sold in much of Europe.
1905-1918
In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, Britain, Germany and Spain. World War I created new demand for dairy products in the form of government contracts. By the end of the war, Nestlé's production had more than doubled.
1918-1938
After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestlé's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the Company's second most important activity
1938-1944
Nestlé felt the effects of World War II immediately. Profits dropped from $20 million in 1938 to $6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the Company's newest product, Nescafé, which was a staple drink of the US military. Nestlé's production and sales rose in the wartime economy.
1944-1975
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oréal in 1974.

1975-1981
Nestlé's growth in the developing world partially offset a slowdown in the Company's traditional markets. Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories Inc..
1981-1995
Nestlé divested a number of businesses1980 / 1984. In 1984, Nestlé's improved bottom line allowed the Company to launch a new round of acquisitions, the most important being American food giant Carnation.
1996-2002
The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998) and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in July, Nestlé merged its U.S. ice cream business into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc.
2003 +
The year 2003 started well with the acquisition of Mövenpick Ice Cream, enhancing Nestlé's position as one of the world market leaders in this product category. In 2006, Jenny Craig and Uncle Toby's were added to the Nestlé portfolio and 2007 saw Novartis Medical Nutrition, Gerber and Henniez join the Company.

“VISION”

Nestlé aim is to meet the various needs of the consumer every day by marketing and selling food of a consistently high quality.
The confidences that consumers have in our brands is a result of our company’s many years of knowledge in marketing, research and development, as well as continuity - consumers relate to this and feel they can trust our products.
High quality and collaboration
Our objectives are to deliver the very best quality in everything we do, from primary produce, choice of suppliers and transport, to recipes and packaging materials. Our operations and collaboration in the Nordic countries gives us greater opportunities to be efficient and strategic and to function well as an organization, both when it comes to the distribution chain and to concentrating on joint product launches and campaigns.
Vision Statement of Nestle Milkpak:
The strategic priorities of Nestle Milkpak are focused on delivering shareholder value through the achievement of sustainable, capital efficient and profitable long term growth. Improvements in profitability will be achieved while respecting quality and safety standards at all times. In line with this objective, Nestle Milkpak envisions to grow in the shortest possible time into the number one food company in Pakistan with the unique ability to meet the needs of consumers of every age group - from infancy to old age, for nutrition and pleasure, through development of a large variety of food categories of the highest quality. Nestle Milkpak envisions the company to develop an extremely motivated and professionally trained work force, which would drive growth through innovation and renovation. It aspires, as a respected corporate citizen, to continue playing a significant role in the social and environmental sectors of the country.

CORPORATE “MISSION”

Nestlé’s brands and products are the focus of continual innovation and renovation so that they meet and exceed our consumers' expectations. We seek to ensure that our products are available whenever, wherever and however our consumers want them.

OBJECTIVES

Nestlé’s purpose is to offer safe, tasty, convenient and nutritious foods to improve health and well-being of consumers of all ages all over the world. To meet the needs and desires of today’s and tomorrow’s consumers, Nestlé is strongly committed to Research and Development (R&D) to improve existing products and develop new foods with specific health benefits.

Organizational Chart

Details of activities / responsibilities which are included in the different departments shown in the General Organizational Chart.
Zone EUR
Food & Beverages Europe
Zone AMS
Food & Beverages Americas: United States of America, Canada, Latin America and Caribbean
Zone AOA
Food & Beverages Asia, Oceania, Africa and Middle East
Nestlé Waters
The water business is managed on a global basis.
Nestlé Nutrition
The Nutrition business is managed on a global basis.
Nestlé Professional
Strategic Business Division
Finance & Control
Group Control, Group Accounting & Reporting, Legal, Intellectual Property, Acquisitions & Business Development, Pensions & Group Risk Services, Treasury, Investor Relations, Audit, Tax, Global Nestlé Business Services (GNBS), F&C Business Excellence

Strategic Business Units (SBUs) and Marketing
Strategic Generating Demand Unit, Business Excellence Generating Demand, Corporate Wellness Unit, Dairy SBU, Coffee & Beverages SBU, Chocolate, Confectionery & Biscuits SBU, Ice Cream SBU, Food (Culinary and Frozen food) SBU, Pet Care SBU, Nespresso, Nescafe RTD
Innovation, Technology, R&D
Science & Research, Regulatory, PTCs and R&DCs, Innovation Acceleration Teams, Technology Intellectual Property, Innovation Partnership Management, Packaging & Design, Business Excellence, R&D Nestlé Waters, R&D Nutrition, R&D Nestlé Purina
Operations
Procurement, Production, Supply Chain, Engineering, Quality Management, Safety, Health & Environment, Agriculture, Operations performance, Business Excellence Operations, Technical Personnel Coordination, GLOBE & Business Excellence.
Pharma / Cosmetics / Human Resources
Pharmaceutical and Cosmetic products, Liaison with L’Oreal, Human Resources
Corporate Communications
Corporate Media Relations, Public Affairs, Economic and International Relations
Corporate Governance, Compliance and Corporate Services
Center Counsel, Group Compliance, General Secretariat, Group Governance

BRANDS

Today Nestlé is present in different markets with the following main brands:
Coffee
Nescafe, Nespresso, Taster’s Choice, Ricoré, Ricoffy, Bonka, Zoégas, Loumidis
Water
Poland Spring, Nestlé Pure Life, Arrowhead, Vittel, Deer Park, Levissima, Perrier, S.Pellegrino, Ozarka, Contrex, Ice Mountain, Zephyrhills, Nestlé Aquarel, Hépar, Acqua Panna,
Other beverages
Nestea, Nesquik, Nescau, Milo, Carnation, Libby’s, Caro, Nestomalt, Nestlé
Dairy - Shelf stable
Nestlé, Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera, Moça, Klim, Gloria, Svelty, Molico, Nestlé Omega Plus, Bear Brand, Coffee-Mate
Dairy - Chilled
Nestlé, Sveltesse, La Laitière, La Lechera, Ski, Yoco, Svelty, Molico, LC1, Chiquitin
Ice cream
Nestlé, Antica Gelateria del Corso, Dreyer's/Edy's, Drumstick/Extrême, Maxibon/Tandem, Mega, Mövenpick, Sin Parar/Sem Parar/Non Stop, Delta
Infant nutrition
Nestlé, Nan, Lactogen, Beba, Nestogen, Cerelac, Nestum, Neslac, Guigoz, Good Start
Performance nutrition
PowerBar, Pria, Musashi
HealthCare nutrition
Nutren, Clinutren, Peptamen, Modulen
Bouillons, soups, seasonings, pasta, sauces
Maggi, Buitoni, Thomy, Winiary,Torchin, Osem, Totole, Haoji
Frozen foods (prepared dishes, pizzas, small meals)
Stouffer’s, Lean Cuisine, Hot Pockets, Buitoni, Maggi, Wagner, La Cocinera
Refrigerated products (cold meat products, dough, pasta, pizzas, sauces, snacks)
Nestlé, Buitoni, Herta, Toll House, Sabra
Chocolate, confectionery and biscuits
Nestlé, Crunch, Cailler, Galak/Milkybar, Kit Kat, Smarties, Butterfinger, Aero, Polo
Nestlé Professional
Chef, Davigel, Minor’s
Petcare
Purina, Friskies, Fancy Feast, Alpo, Gourmet, Mon Petit, Felix, Dog Chow, Cat Chow, Pro Plan, Purina ONE, Beneful, Tidy Cats

EARNINGS

In 2003, consolidated sales were CHF87.979 billion and net profit was CHF6.213 billion. Research and development investment was CHF1.205 billion.
Sales by activity breakdown: 27% from drinks, 26% from dairy and food products, 18% from ready-prepared dishes and ready-cooked dishes, 12% from chocolate, 11% from pet products, 6% from pharmaceutical products.
Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26% from US), 16% from Asia, 21% from rest of the world.

SWOT ANALYSIS

“STRENGTH”
It’s a company that does not depend on personalities.
Leaders in Dairy Products.
Long term experience.
Innovative products.
Designative packaging.
Innovative planning and ideas.
Wide variety of brands.
“WEAKNESSES”
Supply Chain
Exports
“OPPORTUNITIES”
High credibility
Ability to secure more credit.
Available means for expansion.
Improving trends
Industry leadership.
Consumer preference.
Fewer competitors.

Dedicated workforce
Untapped rural market.
“THREATS”
Highly competitive market (multinational companies are very organized and financially strong).
Increasing prices of raw materials.
Competitors like Haleeb, Halla, Askari, Pure water, Nurpur dairies, and Prime yogurt.

MARKETING

Nestle hold strong reputation for high quality brands. In major markets, trade marketers are frequently rated highly in customer surveys on professionalism and service. They don't believe in 'one brand fits all', but with a strong, diversified global portfolio – well focused and defined – offers a brand for all key consumer and market sectors.
They aim to satisfy consumers' demands, better and more profitably than their competitors.

STRATEGIES ADOPTED BY NESTLE

Business principle:
Nestlé is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices:
Nestlé's business objective is to manufacture and market the Company's products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners.
Nestlé does not favor short-term profit at the expense of successful long-term business development.
Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust, and that without its consumers the Company would not exist.
Nestlé believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization.
Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial.
Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.
Consumer perceptions and the future needs of society: As a global food manufacturer and marketer, Nestlé takes into consideration local needs, cultural differences and consumer preferences as well as attitudes concerning the use of ingredients derived from genetically modified crops. Nestlé will continue to use ingredients derived from genetically modified crops wherever appropriate.

Global commitment:
Nestlé firmly supports the principles of the United Nations Global Compact and is committed to reflecting these in its business principles and practices. Search for trust:
Nestlé is the world's leading food and beverage company, with sales of about CHF 72 billion. It has 230,000 employees world-wide and operates 520 factories in 82 countries. Its products are available universally, including such remote markets as North Korea, and they are sold under a number of brands such as Nestlé, Nescafe, Nestea, Maggie, Buitoni, Perrier and Friskies. Company belongs to more than 200,000 shareholders, today; Nestlé is about twice the size of its nearest competitor in the food and beverage sector. The company is in business for over 130 years. Since the days of its founder, brands have been a mainstay of company’s development and its management strongly believes that is one of the key elements of company success. A basic reason company has grown to be the world's largest food company is that consumers have learned to trust its brands. The Nestlé’s challenge was the establishment of a clear hierarchy of very few corporate strategic global brands that now cover almost all products, as well as the parallel usage of regional and local product brands and product denominations.
Additionally company introduced the Nestlé Seal of Guarantee and emphasized corporate logo. This Seal of Guarantee is a visible sign of company’s corporate responsibility for the safety and quality of every product, which leads to maintain consumer confidence and trust in this corporation. In order to be able to give this quality and safety assurance, company developed a Nestlé Quality Management System, which collects the experience of our Research & Development, on which we spend CHF 800 million a year. For a company such as Nestlé, economic success depends on winning the public's approval every day in every country where our products are sold.
They have always believed strongly that tobacco should never be marketed to youth. It should only be marketed to adult smokers, in an appropriate way that takes account of the risks posed to health. They also believe adults who have chosen to smoke should be able to receive information about what they buy, and should be able to communicate responsibly with them about their brands.

Nestle company’s Success is built on quality :
Quality is the cornerstone of company’s success. Everyday, millions of people all over the world show their confidence in company by choosing Nestlé products. This confidence is based on our quality image and a reputation for high standards that has been built up over many years.
Every product on the shelf, every service and every customer contact helps to shape this image. A Nestlé brand name on a product is a promise to the customer that it is safe to consume, that it complies with all regulations and that it meets high standards of quality. Customers expect company to keep this promise every time.
Under no circumstances company compromise on the safety of a product and every effort must be made to avoid hazards to health. People, equipment and instruments are made available to ensure safety and conformity of Nestlé products at all times.
The customer comes first:
Company does want to win and keep customers, distributors, supermarkets, hotels, shopkeepers and the final consumers. They have very different requirements. Trade customers expect excellent service, correct information and timely delivery. Consumers consider taste, appearance and price when they make their choice. Company’s task is to understand what customers want and respond to their expectations rapidly and effectively.
Company serves various groups of consumers and there is demand for products at different levels of perceived quality and price. All customers expect good quality at a reasonable price.
Customers are central to company’s business and company always respects their needs and preferences.
Quality is a competitive advantage:
Company lives in a competitive world and must never forget that their customers have a choice. If they are not satisfied with a Nestlé product, they will switch to another brand. Company’s goal is to provide superior value in every product category and market sector in which it competes.

The pursuit of highest quality at any price is no guarantee for success, nor is a single-minded cost-cutting approach. Lasting competitive advantage is gained

from a balanced search for optimal value to customers, by simultaneous improvement of quality and reduction cost.
Quality units at different levels of the organization provide specific support, promote quality awareness, assume guardianship and audit the system. Quality departments monitor operations against agreed standards and must intervene in case of non-conformity.
Training and teamwork are crucial to the successful implementation of high quality standards. Continuous training ensures that everyone understands his tasks and has the necessary skills to carry them out. Teamwork allows us to achieve results that are greater than the sum of individual efforts.
We motivate employees by demonstrating management commitment to Quality, by setting challenging goals and by giving them responsibility and recognition. It is through employee involvement that goals and targets can be achieved in the shortest time.
Quality must be a way of life for everyone in the company.
Progress is followed by listening to our customers and by measuring our performance.
Nestlé's Position on Gene Technology: From its inception more than 130 years ago, Nestlé has built its business on successfully applying scientific breakthroughs and technological innovations while taking full responsibility for the quality and the safety of its products. Throughout these years Nestlé has been manufacturing and marketing products tailored to meet the diverse needs and preferences of consumers all over the world. Nestlé has always strived to respect these differences and to take them into account in its activities. Nestlé supports a responsible application of gene technology for food production based on sound scientific research.
Consumer information and labeling: Consumers confidence in the food they are buying is supported by having access to information. Nestlé's Consumer Services are well equipped to provide this access and thus are the first source of information, including the use of ingredients, derived from genetically modified crops, in Nestlé products. Many governments now have implemented or are considering regulations for the use

and labeling of these ingredients. In the absence of a global agreement on the labeling of ingredients, derived from genetically modified crops, and recognizing governments responsibility for the regulatory process, Nestlé strictly adheres to national laws and regulations regarding their labeling.

ENVIRMENT OF THE COMPANY

MANAGEMENT
The executive board, a distinct entity from the board of directors, includes:

Peter Brabeck-Letmathe, Chairman & CEO
Carlo Donati, EVP, Chairman, and CEO of Nestlé Waters
Frits van Dijk, EVP of Asia, Oceania, Africa, Middle East divisions
Lars Olofsson, EVP of Strategic Business Units and Marketing
Francisco Castañer, EVP of Pharmaceutical and Cosmetic Products, Liaison with L'Oréal Human Resources
Michael Powell, EVP of United Kingdoms Diivision
Paul Bulcke, EVP of Americas divisions
Paul Polman, EVP of Finance, Control, Legal, Tax, Purchasing, Export
Luis Cantarell, EVP of Europe divisions
Richard T. Laube, Deputy EVP of Nutrition Strategic Business units
Werner J. Bauer, EVP of Research and Development, Technical, Production, Environment.

Current members of the board of directors of Nestlé are: Günter Blobel, Peter Böckli, Daniel Borel, Peter Brabeck-Letmathe, Edward George, Rolf Hänggi, Nobuyuki Idei, Andreas Koopmann, André Kudelski, Jean Pierre Meyers, Carolina Müller-Möhl, Kaspar Villiger. Secretary to the Board Bernard Daniel.

Corporate Governance

Nestlé's commitment to sound Corporate Governance goes back to its very early days.
This commitment is reflected and explained in several publications, such as the Corporate Governance Report, Articles of Association, Committee charters etc. It is also visible in Nestlé's day-to-day business behavior.
The Corporate Governance Report covers the following areas:
Group structure and shareholders
Capital structure
Board of Directors
Executive Board
Compensations, shareholdings and loans
Shareholders’ participation
Changes of control and defence measures
Auditors
Information policy

PORTER’S FIVE FORCES ANALYSIS

Five Forces Analysis helps the us to contrast a competitive environment. We analyze these five forces for NESTLE.
Five forces analysis looks at five key areas namely the
q Threat of entry
q The power of buyers
q The power of suppliers
q The threat of substitutes and
q Competitive rivalry

CUSTOMERS:

Favorable

COMPETITORS:

Unfavorable

SUPPLIERS:

Favorable

SUBSTITUES:

Favorable

NEW ENTRANT:

Favorable

Chen one PROJECT

2010-05-21T05:57:00.001-07:00

Acknowledgement

1st I would like to thank Allah. He gives me opportunity to study in great university.
2nd I would like to thank sir Hanif shahzad for a being a wonderful teacher with a difference. Also for him understanding individual student and motivating them to achieve understanding of a course we all thought fairly to say the least.
3rd I would also like to special thanks to Mr.Ifkar, Mehwish Azam and Lubna Akbar. They were really helpful and really cooperated with me. Who provide me data about the company.
And last but not the least I would like to thank our family and friends who arranged for me to go to the company and meet people concerned with my report.

Executive summary

Chenab limited has today 10 local and 7 outlets in the middle east with an annual turnover of RS one billion.chenab limited is a manufacturing giant operating in over seven countries.chenab limited the company holds thirty million share.
Chenab is one of Pakistan’s leading manufactures and exporters of quality home textile products of quality home textile products and garments.
Chenab’s one of the most popular brand is Chen one. They segment Chen one’s market according to geographical location.
Chen one target the Middle East upper middle and elite class segment of the population. Though Chen one’s cloth is produced in Pakistan.chenab Pakistan maintains the international standard.
Chen one cannot provide a better price is affordable by elite class. The cloth is available in three different sizes. In future Chen one sells its outlets to third party.
Other competing brands like men’s garments (generation), life style, Bed & bath, Ikea, macro, metro and Carrefour have a strong consumer base but Chen one’s product features distribution and promotional activities have created huge brand loyalty for which it is still the market leader in Pakistan
Chenab with its heavy promotional activities has been able to penetrate the market.
But the other producers in the industry are posing a threat towards Chenab’s market share.

Table of contents

Chapter # 01………………………………………………..01 to 02

Chen one vision………………………………………………01
Mission ………………………………………………………02
Introduction ………………………………………………….01 to 02
World wide………………………………………………….. 02
Pakistan ………………………………………………………02
Chen one product…………………………………………… 02
Chapter # 02………………………………………………… 04 to 10

Customer driven strategies………………………………… 04
Market segmentation………………………………………… 04
Market targeting …………………………………………….. 04
Market positioning ……………………………………………05
Marketing mix strategies…………………………………….. 05
Product ……………………………………………………… 05, 06, 07
Price ………………………………………………………… 08
Place………………………………………………………… 08
Promotion ………………………………………………….. 09
Slogan ……………………………………………………… 10
Chapter # 03………………………………………………. 11 to 13

Conclusion ………………………………………………… 12
Market share……………………………………………….. 12
Rivals ……………………………………………………… 12
Recommendation…………………………………………… 12
References ………………………………………………… 13

Chapter # 01

ChenOne Vision: ChenOne Vision 2010 despite obvious cultural and business challenges, ChenOne has experienced success because of its ability to transfer the company’s unique culture and effective retailing concepts. ChenOne has realized the potential growth worldwide; by 2010 ChenOne would open several branches in existing and international markets

Mission statement-- To be the business house of the first choice for customers-- To be a change leader-- To produce innovative, relevant and cost effective products-- Setting and maintaining high standards-- To earn profit by achieving optimum level of production by using state of the art technologies-- To provide ideal working conditions to employees and to take care in their career planning and reward them according to their skills and responsibility-- To meet social and cultural obligations towards the society being a patriotic and conscientious corporate citizen

Introduction ChenOne is a division of Chenab Limited who produces and manufactures textiles and garments from their own in-house cotton growing facilities to the creation of ready made garments. With over 25 years in the industry Chenab currently produces garments for top names such as Tommy Hilfiger, Macy's and Bloomingdale's among others. Chen One's new chain of outlets has been created with the consumer in mind and will carry all of their seven product lines which include home textiles, leather wear, shoes, garments, crockery, furniture and art.. The Group enjoys the unique honor of having almost all textile related processes under one roof. Right from growing highest grade cotton, ginning and spinning it into high quality yarn, weaving it into finest quality fabrics, processing of different quality fabrics in 100 % cotton and various mixed blends and stitching and export of top quality made ups and garments, the entire process is handled in our vertically integrated units.Equipped with the latest imported and highly sophisticated processing machinery, it has a team of qualified technologists and trained labor force numbering around 8000. This unit is producing 200,000 meters of fine quality of fabric (140,000 printed and 60,000 dyed), 25,000 units of textile casual/garments and over 125,000 pieces of made-ups (household) of international standard daily. Being a quality oriented organization, Chenab Ltd has been winning the Best Export Performance Trophy from the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) consecutively for the last 10 years.Muhammad Kashif Ashfaq, Director of Chenone and Mia Mansha is the chair person of the Chen one. ChenOne is considered one of the fashion outlets that hits the streets and becomes an instant success. Fashion products by ChenOne are featured in leading fashion magazines of Pakistan. The ChenOne kiosks are popular attractions in the Dubai hopping Festival and it is a reputed and well known brand inside and outside Pakistan
Out of Pakistan, ChenOne has stores in the following places
Abu Dhabi
Dubai (Jumeriah)
Makkah
Bahrain
Ajman
Sharjah
Riyadh
ChenOne stores are located in Pakistan in the following places:
Islamabad (Opened in 1997)
Rahim Yar Khan (Opened in 1997)
Lahore (Gulberg branch) (Opened in 1998)
Faisalabad (Opened in 1998)
Karachi(Opened in 1999)
Rawalpindi(Opened in 2001)
Peshawar(Opened in 2002)
Abbottabad (Opened in 2004)
Lahore (Defence branch) (Opened in 2004)
Multan(Opened in 2005)
Sialkot (Opened in 2006)
Gujrat (Opened in 2006)
Sargodha (Opened in 2009)
Bahawalpur (Opened in 2009)
Chen one product
Bed Spreads, Bedding, Boys Clothing Furnishings Retail, Children’s Infants Wear Retail, Clothing Accessories Retail Men, Clothing Accessories Retail Women, Department Stores, Furniture Dealers Retail, Girls Wearing Apparel, Handbags Retail, Interior Decorating Accessories, Kitchen Accessories, Linens Retail, Men’s Clothing Furnishings Retail, Neckwear, Pants Retail, Shoes Retail, T-Shirts Retail, Womens Apparel Retail, Ladies, Gents, Menswear, Children, Shoes, Footwear, Clothing, Garments, Pants, Shirt, T-Shirts, Tie, Kitchen, Accessories, Furniture, Home Textile, Linen, Bed Sheet, Handbag, Decoration Accessories, Super Store, Departmental Store

Chapter # 02

Top of Form

Customer driven market strategies

Market segmentation;
Chen one is doing Niche marketing because they are further divided the groups into sub groups.
For example they are dealing cloths. Cloth is main group and sub groups are men cloth, ladies cloths, infant cloth, girl’s cloth, kid’s cloths, boy’s cloths shirts etc.

Urban Rich

Urban and Sub Urban Upper Middle and Middle Class

Rural Poor
Market segment

Population in %
Population in million
R.S /month
Below poverty
40%
8.8
3,000
Poverty
45%
9.9
3,000-7,000
Lower middle class
8%
1.76
7,000-15,000
Middle class
6%
1.52
15,000-50,000
Upper rich
0.90%
0.2
50,000-150,000
Rich
0.10%
0.02
150,000

Market Targeting;

Currently ChenOne is targeting Upper Class. In Future ChenOne should offer low priced products in regular range to target the upper middle and middle class, which will give more popularity to ChenOne and increase the revenue. In general they are targeting the potential buyers. Chen one target the Middle East and Pakistan.chen one target the people 3month to 45 ages.

Market positioning;
Chen one charge high price but give more benefits. Chen one designed a product according to the customer wants and demands.chen one product’s occupy a clear, desirable and distinctive place in the minds of the consumers.

Marketing mix strategies

Product
Chen one is dealing a shopping product and specialty product. Product mix of 2010 is Footwear and cloths (Gents / Ladies / kids) Complete Range Cooking Utensils Cosmetics New Born Gift Sets. Designers Jewelry Watches. We are manufacturing a comfortable clothes .quality of product is important to establish a name in the market. The woman of today world is to keep up with the changing world.chen one has a latest collection of woman wear; footware and bags. We ensure that our quality will satisfy the customer wants and needs. Fashion products by ChenOne are featured in leading fashion magazines of Pakistan. The ChenOne kiosks are popular attractions in the Dubai Shopping Festival and it is a reputed and well known brand inside and outside Pakistan.chen one totally committed for quality. We always assure quality to our customer.
Chen one’s brands have a growth stage because in future they will open the outlets at different places and target the middle class.

product Category

Category
Sub-Category
Headings

Apparel & Accessories
Accessories
Handbags Retail

Neckwear

Clothing - General
Clothing & Accessories Retail Men

Clothing & Accessories Retail Women

Pants Retail

T-Shirts Retail

Footwear
Shoes Retail

Family & Community
Children & Child Care
Boys' Clothing & Furnishings Retail

Children's & Infants' Wear Retail

Girls' Wearing Apparel

Home & Garden
Accessories - General
Linens Retail

Bedroom & Linens
Bed Spreads

Bedding

Linens Retail

Furniture
Furniture Dealers Retail

Housewares
Kitchen Accessories

Interior Decoration
Interior Decorating Accessories

Shopping & Specialty Stores
Apparel & Accessories
Handbags Retail

Men's Clothing & Furnishings Retail

Neckwear

Pants Retail

Shoes Retail

T-Shirts Retail

Women's Apparel Retail

Stores - General
Department Stores

Garments Stores

Home Stores

Brand Equity: Brand Equity Brand is name, sign, design or combination or theme to differentiate from other competitors. With the help of continuous R & D Investment, Skillful advertising and excellent trade and consumer service, ChenOne will maintain or improve its brand awareness perceived quality and functionality and positive association. Leading companies based there growth on enquiring and building there brand portfolios like ChenOne.
Price
Chen one set a skimming price to generate revenue.chen one deal a life style and designed product because its life cycle is short that’s a reason they charge a high price.chen one pareesa lawn range is from 2000 to 2300 Rs / suit
Chen one gives order and makes furniture like beds and sofas for hotels. Wood’s quality is good that’s the reason they charge high price. company carries out research on competitor’s price and brand loyalty when it feels extreme necessity of changing price

MANUFACTURING IMPROVEMENTS -- New material handling system (Switch Track)-- Introduction of full and semi automated sewing for small parts-- A revamp of our current pressing facility with the introduction of vacuum pressing tables-- CAD for pattern making, cloth utilization and cut makers-- Automatic fabric spreading machines-- Introduction of 'Servo Cutters' to increase accuracy of cutting-- Cutting - Computer Aided Manufacture (CAM)-- Pocket Setting for Shirts-- Belt loop attach for casual trousers-- Digital employees efficiency control system-- Statistical quality control checks-- Eton 2002 fully computerized unit production system-- 600 machines with various functions such as lock stitch, safety stitch, chain stitch, hem stitching, pin pleat, pin tuck, zig zag, button hole, button sewing, auto stud, chain stitch and blind .

Place
Chen one using a indirect channels. Chen one extends its outlets all over the Pakistan and world wide. In world wide they target the Middle East and Europe. In Pakistan there place is very potential because there quality product is good and they consider the customer wants and demands. They introduce the seasonal clothes which prints are very unique and latest.thast’s the reason there place is good.chen one maintain the international and national standard and keep in mind to culture that’s the reason there place day by day increase. Chenone has today 10 local and six outlets in the Middle East with an annual turnover of Rs 1 billion.
Chen one is associated with honorable places.

President House
Holiday Inn, Islamabad
PSL (Pakistan Services Limited)
Prime Minister House
Best Western Hotel, Islamabad
Royal Palm Golf & Country Club, Lahore.
governor House, Lahore
Islamabad Club
Pakistan Steel, Karachi
Sindh Club Karachi
Serena Hotels
Artillery center, Attock

Pakistan Military Academy, Kakul

Promotion
Chen one’s Presence in Media TVC Electronic and print media. When Chen one introduce its latest product. They organize the fashion shows. They print out the fashion magazines. Seminars and exhibitions are regarding latest fashion.
There has been a scheme at ChenOne stores whereby buyers making purchases for over Rs 2,000 are given a coupon for the lucky draw. Under the same scheme a family from Karachi visited ChenOne in Lahore and won a Toyota Corolla car.
The facility to buy such a wide range of products under one roof compels a person to say that ChenOne is a store for the whole family.
Superior quality and attractive prices will encourage the people, accustomed to 'foreign products' to switch over to ChenOne without compromising quality.
Chen one earns a $1.3 million profit on $24.5 million in revenues. Chen one offers a free home delivery and offer special discount.

Following are the key points to increase sale

Assurance of consistent quality
Surety of on time delivery
Competitive rates
Cost efficiency
Better service to the customer
Better communication development with customer

Customer Service: Customer Service ChenOne always Strive to provide exceptional customer service, a characteristic unique to our chain. The secret of successful retailing is to give your customers what they want. People at that time would feel proud by shopping at ChenOne, with a fully equipped customer care desk. Helping people make a difference ChenOne should be designed to save customer’s time and money, while providing a unique shopping experience, through efficient operations and valuable solutions. ChenOne should make its return and exchange policy highly acceptable for its customers.

Annual Sale Targets: Annual Sale Targets Annual growth of 15 to 20 percent

Other Business: Other Business Restaurants ChenOne Malls
Slogan
Changing lifestyle

Chapter # 03

Conclusion

The textile industry of Pakistan has a wide range to attract internationally or nationally customer. Pakistan is the 4th largest country to produce fine cloths.
Chen one is at a piece which is not affordable to most of the people in the country.
Designer clothes are an uprising in Pakistan as a greater portion of the population, both male and female, are now more style conscious. As a multinational company chen one has been able to skimming the market with different size of cloths, gents, ladies and kids, international standard and high quality design, as a product. Chen one has been highly successful over the years. Overall with its marketing activities Chen one has been successful brand.
Research shows that Pakistani customers are highly attracted to this sort of offers like discount, gifts and loyalty brand. That’s the reason Chen one in future will target the upper middle and middle class.

Marketing share

Chenab holds 30 billion market shares.

Rivals
Competition Current Individual Competitors Shoes (Marie Claire, etc) In terms of Prices Men’s Garments (Amir Adnan, etc) Excellent styles & regional presence Ladies Garments (Generation, etc) More cultural & society focus designs Bed Linen (Life Style, Bed & bath etc) Better prices Furniture (Several new stores) Better prices with quality International Players (Ikea, Macro etc) Expected Competitors International Players (Ikea, Macro, Metro, Carrefour etc)
This has a resulted in cutthroat competition in the market. This industry is highly competitive but the market is expansionary. Locally, there are large members of garment manufactures and some of the wearing and knitting units that are our main competitors. However, the market size is large enough to provide room to all the players. The competitors mentioned above are manufacturing almost on the same product line and they have good image in the local as well as in the foreign market. beside all this facts the companies are doing good job but they are bit expensive and these garments, which are made by these companies, are mostly approach of ordinary people because their price are high.

Recommendation

Chen one needs to increase the outlets all over the world and also Pakistan.
Chen one should target the middle class.
Chen one should increase their promotion through advertising, TV and internet
.
Product more emphasis has to be placed on promoting the product and increasing the brand awareness and brand recall rather than trying to modify a product this is already doing quite well as per expectation, objectives and targets set by the company. Long term suggestions are such that we feel Chen one should look more ideas as are available abroad.

References

http://www.phonebook.com.pk/Dynamic/CompanyDetail.aspx?Comp_ID=33614

http://business.goldsea.com/Chenpehong/chenph.html

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

http://www.ameinfo.com/298.html

http://www.brecorder.com/index.php?id=296240&currPageNo=1&query=&search=&term=&supDate=

http://www.pakistaneconomist.com/issue1999/issue30/f&m5.htm

http://www.authorstream.com/presentation/aSGuest38126-324993-vission-2010-asim-idea-business-finance-ppt-powerpoint/

KFC PROJECT

2010-05-21T05:51:00.000-07:00

KENTUCKY FRIED CHICKEN

Presented to:
Mr. Karamat ullah Hussainy

Presented by:

Alim uddin malik 2265

M. Jehangir Jawaid 2321

Sidra Khalid 2262

Presented on: Dec 1, 2009

Dec 1,2009

To: Mr. Karamat ullah Hussainy
KASBIT

From: Alim Uddin Malik, Mohammed Jehangir and Sidra Khalid
MBA III - Morning

Subject : Final project report on Kentucky Fried Chicken [KFC]
Dear Sir,

As we were given a task to prepare a project report over a topic, on any company in Pakistan and describing its marketing mix strategies, SWOT and PEST analysis and its leading strategies. We gone through different web sites, books, and other resources which also include our visits to the head office of the KFC to gather information regarding this topic, we hope that this work will attract your attention.

We divided our presentation in three categories, prefatory section, introduction & conclusion, and body; we have done all the work with mutual understanding and consensus and divide these categories among our group members so that working on individual categories give effectiveness to our presentation. Six weeks of effort was devoted for collection and designing of data which enable us to produce this report.

The main motive behind our report is to provide guide lines to the audience about the marketing mix and different strategies followed by KFC in our country and detail of those guide lines are precisely stated in executive summary, consensus also appeared for the three criteria we used for evaluating our report e.g. effectiveness, information and fairness.

We hope that you will encourage our effort, We are grateful to your guidance, stimulating suggestions and encouragement which has helped us all the time of research for and writing of this report. And we hope that we will be awarded a fair amount of appreciation from you.

Yours Sincerely,

Aleem Uddin Malik ID 2265
Muhammad Jehangir Jawaid ID 2321
Sidra Khalid ID 2262

ABOUT KFC:

Introduction
Kentucky Fried Chicken (KFC)- one of the most known fast food chains in the world started in the early 1930's by Kernel Sanders in the Southern USA as a small franchise operation. Colonel Sanders has become a well known personality throughout thousands of KFC restaurants World wide. Quality, service and cleanliness (QSC) represents the most critical success factors to KFC's global success.
Food, Fun & Festivity, this is what KFC is all about. Leading the market since its inception, KFC provides the ultimate chicken meals for the Chicken Loving Nation. Be it Colonel Sanders secret Original Recipe Chicken or the Hot & Spicy version, every bite brings a YUM on the face. At KFC we proudly say:
KFC has more than 11,000 restaurants in more than 80 countries and territories around the World. In 1971, Heublein, Inc. acquired KFC, soon after; conflicts erupted between the Colonel (which was working as a public relations and goodwill ambassador) and Heublein management over quality control issues and restaurant
KFC is part of Yum! Brands, Inc., however in the case of Pakistan KFC builds the relation of Quality Service and cleanliness for Customer.
KFC was acquired by PepsiCo in 1986; it had grown to approximately 6,600 units in 55 countries and territories. Due to strategic reasons, in 1997 PepsiCo spun off its restaurant businesses (Pizza Hut, Taco Bell and KFC)
Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long way, with over 10,000 outlets in the world; KFC has maintained its title, for the last 60 years, of being “The Chicken Experts”.

KFC in Pakistan:
Presently KFC is branched out in thirteen cities of Pakistan (Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad, Islamabad, Gujranwala, jehlum, sukkur and Murree) with 45 outlets nation-wide. Opening the first KFC outlet in Gulshan-e-Iqbal, Karachi in 1997, and KFC wore the title of being the market leader in its industry. Serving delicious and hygienic food in a relaxing environment made KFC everyone’s favorite. Since then, KFC has been constantly introducing new products and opening new restaurants for its customers.
In Pakistan totally Chicken buy from Pakistani Poultry Forms, and also this Chicken is 100% Halal.

Marketing Mix:
Marketing mix consists of 4P’s. It contains everything a firm can do to influence the demand for its product. The 4P’s are:
PRODUCT
PRICE
PLACE
PROMOTION
These marketing mixes are described in detail as under.

PRODUCT:
Product planning:
Their product is classified as consumer product as it has no intermediates. It also offers specialty goods. The stock turn over of KFC is relatively high. The prices and quality of the product is always compared. Their product includes Goods (Burgers, Chicky Meals etc) and Services (cleanliness, quick service, parties, and meetings).

Product Strategy:
It was launched here as an innovative product. KFC has got one product line but later they introduced products in the same line to protect their market share. New product ideas are generated from:
Customer services (comments cards)
Gallops survey (mystery shoppers)
They have a Quality Assurance department that decides the new product innovation. Q.A. department prepares screening of new ideas and product’s feasibility report. This department does the technical evaluation (whether it is practical to produce the new product or not). The products are tested externally by offering trials to customers by giving them free samples. KFC uses telemarketing, print media, billboards and most recently televised marketing for promotion.
KFC adds a new product in its present assortment based on their competitors, product’s adequate demand, the satisfaction of key financial criteria and its compatibility with environmental standards.

Product Line:
KFC product line includes all chicken based products.
Burgers:
The burger category includes the Zinger Burger, Colonel’s Chicken Burger, Colonel’s Fillet Burger, SUB60 and 80, and Zinger Jr. They have also introduces a Fish zinger burger.
Chicken Pieces:
The chicken involved the product line with different number of chicken pieces like 1 piece, 2 pieces, 5 pieces and 10 pieces chicken.

Combos:
The combo includes the different meal as Chicken Meals, Sandwich Meals and Family Meals.
Desserts & Beverages:
The desserts and beverages offered by KFC are Fruit Salad, Regular & Large Drink, Regular & Large Mineral Water, Tea, Scoop of Walls Ice cream and Coffee.
Snacks & Side Orders:
The snacks and side orders served by the KFC are Arabian Rice, 5 & 10 Pieces Hot wings, Dinner Roll, Regular & Large Fries, Hot Shots, and Corn on the Cob, Hot & Crispy Soup and the Cole Slaw.

Product Mix strategies:
The product mix strategies are in relation to:
Competitors:
KFC has a head-on competition with McDonalds so wherever they place their products; KFC goes there as well. Locally in Pakistan KFC face a close competition with the local brands like AFC (Al-Baik Fried Chicken), Fried Chicks, Dixy Chicks etc which are producing more or less the same product as KFC.
Attributes:
The brand KFC is so strong that it is the attribute itself.
Quality:
KFC products are based on high quality and prices.

Product Mix Expansion and Contraction:
KFC keeps on modifying their product through line extension and other methodologies. Line Extension is being done through introducing new meals offers. The alteration of existing products is also done and this function is performed by the Quality Assurance department. The department decides which product should be sold and when (seasonal products as rice and soups offered in winters). Functional modification is also done by the Q.A. department to introduce new recipes. Other than expansion contraction is also being dealt with as when the new deals or offers are not sold as expected, Q.A. department contracts the previous offers and introduces new offers.

Change in Product Positioning:
KFC products were first offered to upper socio-economic group. Later, introducing discounted and lower price deals, they are now dealing in masses. So, KFC has traded down. In doing so KFC has used the same brand name and same high quality product.

Product Branding, Packaging and Labeling:
Brand Name: KFC
Color: Red, white
Symbol: Colonel Harland Sander’s picture and KFC written with it.
Master Brand: The brand itself is so dominant, that it immediately comes in mind.

KFC Brand:
KFC's brand identity is the logo featuring Colonel Harland Sanders, one of the best-recognized icons in the world. It is trade marked registered brand and is distinctive, adaptable to addition to product line. It suggests something about product. It is legally protected and registered.
Brand Equity and Strategy:
The brand equity is very high as the value added by brand to the product effects the product selling. And the Brand strategy followed is that the KFC is marketing the entire output under products own brand. Pepsi and Nescafe are the complementary brands associated with KFC.
Packaging Strategy:
KFC makes its own disposable packaging. If they need promotion Pepsi contributes in improving the packaging quality. KFC does family packaging. They use paper material for packaging to avoid health hazards and environmental pollution.
Labeling:
KFC does brand labeling. Some of its products also have informational labels such as Halal, Veggie Burgers and Chicky Meals.

PRICE:
In introduction stage KFC entered the market using market-skimming strategy. Their products were high price and targeted only upper class. Gradually they trickle down focusing on the middle class to penetrate the market. Also KFC follows one price strategy. Price is determined according to the rates of the raw materials and policies of the Govt. The political and legal forces often affect the policies of KFC and eventually results in change of prices that is due to imposing of taxes.

PLACE:
Distribution Channel:
KFC has only one channel of distribution i.e. direct where the goods are transferred to the consumer directly. KFC has no middlemen.
Distribution of Consumer Goods and Services:
KFC does distribution of consumer goods directly to the consumer. It also does distribution of services to the consumer like parking, sitting, home delivery, etc. KFC does intensive distribution on its outlets. (All and everything on every outlet).
KFC gets Wheels!
KFC launched its first mobile unit, which took the streets of Karachi by storm. The mobile unit has been designed to cater to the needs of those who are on the go, and have little time to stop by at a restaurant. It also provides a unique convenience of enjoying the delicious KFC offering anytime, anywhere, thus making fast food truly fast and convenient.
It intends to further develop its mobile network nationwide through more such units.

PROMOTION:
The logo features Colonel Harland Sanders that is one of the best logo in the world has created its name as a standard in the market. Today the Colonel’s Spirit and heritage are reflected in KFC’s brand identity.
KFC by its advertisements derives the desire in the customer to come and enjoy healthy food in their favorite restaurant. They spend 2% of its profits on advertisement. They use print media and most recently doing televised marketing to promote it products. Their advertising media involve: Newspapers, Pamphlets, Billboards and Television. KFC does both the primary demand advertising (“Become a Chicken Fanatic”) and the selective demand advertising (e.g. “Zinger Meal”). In its advertising it give informative messages like “Keep the city Clean”. KFC does institutional advertising to stimulate demand. When KFC offers new products then it does product advertising. KFC’s ad’s act as counteracts which means to drive the customer to KFC i.e. it uses pull advertising strategy. They also provide wit the key chains, watches, bags, tee-shirts etc. to its customers with the purchase of different meals as a part of their promotional activities. They also provide with certain midnight packages, birthday packages and lot more.
KFC has put big hoardings on the busy areas of Pakistan and have an effective advertisement campaign on the media in order to motivate its customers. The colors used in advertising are Red, White and blue which itself is recognition for the brand.
KFC have joint sale promotions with different companies like HP, Philips, Value Meals, Pepsi-Cola. And most recently with ARY Gold digital and World Call Internet services. Also KFC Proud Partners are Del Monte, Culligan, Shan and Peek Freans (EBM).
PSO had made a scheme in which PSO had given the coupons of KFC having 10% off. (1 coupon was given after each purchase of 10 liters of petrol)

KFC in its advertisements says;
“Nobody does chicken like KFC”
“We do chicken right”
Hence, focuses on product advertising. KFC does mass selling in order to reach its target market (as it has trickle down). KFC in its ads try to convert people to people who eat boring bland fast food over to KFC.
The message conveyed in the ads is recognition for the brand. KFC does competitive advertisement with its head on competition with McDonalds. Regarding this KFC uses Pricing below competition strategy.
KFC sponsor’s many NGO’s and other social welfare organizations. They also offer different deals according to the season and occasions.

KFC as a market leader:
It has covered 80% of the market share in fast food industry KFC has recognition around the world and has been globally positioned for many years in Pakistan and to capture the market share in Pakistan adopts champs philosophy.
Strategic Planning is the process of developing and maintaining a strategic fit between the organizational goals, capabilities and its changing marketing opportunities and is done by KFC in a well defined manner.
Strategic planning sets the stage for the rest of the planning in the firm. KFC is looking that how much its current strategies are beneficial for them. Although these are good and profitable but dynamic changes in environment are requiring identifying the attractive opportunities.
That is the reason that they are expanding there market size by focusing on sub urban areas and targeting middle class people by providing them differentiated products at a fair price. They are opening their new mobile outlets in there potent ional markets. KFC is also going to increase its sweet dishes to avail the opportunity available for them.
KFC in a Growing Market:
The market of KFC is increasing day by day. Being a food market it is always considered in a growing market because it increases continually with the population. Their growth is continuously increasing and if they want to be a leader, they has to develop a strategy which is predominantly a market expansion strategy and in this way they will not loose their leadership. It has greatly increased their market share in Pakistan by following different strategies that may be regarding their products, prices, placement or promotions. They have been following the strategies for market expansion by targeting the new users of the product, describing the new uses of the product and by showing them more usage of the product.
Describing the New Uses:
In this method, the new uses of the product are being described. As the motto of “KFC says we do chicken right”, here they claims that they are the best in using the chicken correctly. In the early days the chicken was simply used in a simple way for cooking, but KFC has introduced it in a number of ways and described it to the people by launching it as a meal as well as in the snacks form. They prove them with the best cooked chicken with a great taste. Instead of the chicken pieces, they also serve chicken nuggets, burgers, hot shots, twisters etc. many new innovative products are being introduced by KFC that is greatly helpful in attracting the customers and increasing its market share.
More Usage:
In the advertisement of KFC mostly seen on the bill boards, they have shown in the new scheme of zinger deal of Rs.290 + 10 and u get zinger + another chicken burger. And in Ramadan, they launches the deal of Rs. 500 and it says that all you can eat, it gives the unlimited zinger burgers and chicken pieces. In this way they have greatly increased their usage of their products.
New Users:
The people who do not eat KFC should be attracted, that may be by attracting the non users of the product, non users of the brand or the non believers. They are done in the following ways.
Non users:
The people who do not eat the fast food, they should be attracted like KFC has been attracting their customers by providing deals with Ufone. If the person is an Ufone user and he is not a KFC customer, they simply receive a message on their hand set and they jus have to show it on the KFC and counter and get a free meal. It’s a strategy to attract the non users. In a similar way, distributing deal coupon on specific purchases, in shopping malls may also be very effective.
Non Users of the Brand:
The non users of KFC can be attracted by describing them the quality features of the product that they think of trying the product once. In this case promotional activities play an important role. If the promotions are done in an effective manner, people would definitely try the product and also lowering the prices may be very effective that people may switch from other brands to KFC.
Non Believers:
KFC is quite successful in attracting the non users of the product and the brand as well, so it is not really necessary to hit the non believers. This is because they are the most difficult people as it is very hard to break their social, religious and cultural believes.

SWOT ANALYSIS:
The swot analysis includes the strengths, weaknesses, opportunities and threats faced by KFC in Pakistan. These all are described in detail as under:
Strengths:
It is the oldest and finest in Business having a high Goodwill. It does not have any Core competitor in chicken serving. They have a large Number of Outlets at prime locations in Pakistan. They serves variety of items under single menu. They are successful in maintaining their loyal customers. It has an incentive of being a Multinational Organization e.g. economies of scale, government incentives etc.

Weaknesses:
Its major weakness id the presence of Multinational competitors in the market e.g. McDonalds(specialized not in chicken serving but in burgers) and the other weakness faced by KFC is the imported raw material which usually rise their prime cost.
Opportunities:
The opportunities are the cheap and easy availability of labor. The increase consumption of fast food has increased the market size of KFC. As the consumer usually prefer “All under one roof”, therefore, in order to increase their sales turnover they can increase or add the served items.
Threats:
The threats faced by KFC are the entrance of many new competitors into the market that may be local or international brands. And being in Pakistan, there is high political instability/uncertainty involved.

PEST ANALYSIS:
The Pest Analysis includes the political, economical, socio-culture and technological factors. These are described in detail as under:

Political Factors:
The political factors includes the government policies as KFC being a foreign company, but they have to obey the policies of the Government laid by the government of Pakistan, the country where the business activities are being carried out. KFC has handled this situation very tactfully and has obeyed the policies of the Government as prescribe by the government in order to run this kind of business. The other major factor is the pricing policies. KFC maintain & design its price policies keeping in view the income & income distribution of the people living in the country. That’s why all the classes are the target market of KFC. And the most important factor is the political instability. As in Pakistan, there are political crises faced by the government, these greatly affect the business of KFC.

Economical Factors:
The economic factors includes the income of the people, KFC is going to target. Income is an important economical factor of the KFC. This factor decides which class KFC is going to target. In the early time of KFC, they were focusing on the upper class but they after some time changed their strategies and started to target the mass market by introducing some different kinds of meals and offers through which we can say that they target the middle & the upper level as well. The consumption behavior of the people plays an important role. KFC also estimated the consumption behavior of the people, their liking and disliking and make decision accordingly. Payment method is an important factor in the economical factor of the KFC. They check the behavior of the regarding the payment methods of the people. They check whether the gives money in the form of cash or plastic money.

Socio-culture Factors:
The Social/Cultural Factors includes the Social Class, as it is discussed earlier that KFC target all the class including the upper class, upper middle and lower middle class etc. Although the culture of KFC from where they come is entirely different but they have adopted the Pakistani culture as they had to serve the people living in Pakistan having entirely different culture from other areas. And it has not only adopted the Pakistani culture but also the Religion as well. They offer Halal foods to the customers, which is the symbol that they adopted the Muslim religion strategies as they had to serve in the Muslim country, to the Muslim customers.

Technological Factors:
The technological factors include the Pace of change at a fast level.
Pace of change mean rate of change. KFC has strategy to introduce new technology whenever they think that it is a time to introduce new technology. Research & Development is also an important factor in the Technological factor. KFC always support the work of research & development in order to introduce the new technology. Capital formation means stock of machinery. KFC has a stock of machinery in order to run its business activities. In other words KFC has a good amount of Capital Formation.

Recommendations:
KFC is a market leader in providing Fried chicken. As KFC, so it is competing with the prominent market signs like pizza hut, McDonalds. N its product category, it is doing really well but they need improvements in their hot menu. They should also make their menu dynamic, by introducing new meals after certain period of time. New items should be introduced by varying the taste. They should also try the local desi taste addressing the desi food lovers, thus it will help to increase their market share.
The prices of KFC are reasonable as compared with other fast food restaurants. But as price is always a primary concern for the customer, therefore, they should adopt certain strategy to attract the customers. And it can only be done by lowering the prices. It could be by introducing some discount packages for families, employees, students or regular customers. The membership card can be used to provide certain extra value to the customer.
AS far as placement of the products is concerned, it is an important factor, for a company to increase its market share, by targeting the right customer. KFC needs to have more outlets, at commercial areas. It will help to target the actual as well as the potential customers. Mobile outlets may be an effective addition as well.
KFC has large customer equity, but being a market symbol, a company should strive for having more actual customers. KFC should work for having more solid marketing departments. They should organize and run the proper advertisement campaign. It would definitely be an incremental factor for their sales. They can also use the brand promotions. They can set up the promotional campaigns. All they need is an effective marketing department to facilitate t he promotional activities.

Conclusion:
KFC is a very strong chain of fast food restaurants with more than 10,000 restaurants all over the world. KFC is providing employment to 1200 Pakistanis an around 6000 Pakistanis dependent on KFC. They are paying Rs. 10 million to government of Pakistan as direct taxes. 95% of its food and packaging material used in KFC produced in Pakistan locally which sums up to the purchase of 35 million per month. Each new outlet developed by KFC in Pakistan spends 40 million rupees, that’s a massive amount for this industry.
From all of the above detailed discussion about KFC in Pakistan, it is really clear that KFC and Pakistan are growing together. KFC is doing well in Pakistan and keeps following its marketing strategies as a market leader and segmenting the market into different variables and increasing their market share. KFC is leading in Fried Chicken. It gives quality, variety and fresh meals as of its competitors.

Cadbury PROJECT

2010-05-21T05:23:00.000-07:00

Marketing

Cadbury

Cadbury Dairy Milk Chocolate

Submitted By: Mirza Bilal Baig

Submitted To: Sir Hanif Shahzad

Department: Management Sciences

National University of Modern Languages

Sector H/9 Islamabad.

Acknowledgment

First of all I acknowledge the blessing of my Allah in helping me in my efforts; I would like to thank all of other helping hands who were with me to make this this project possible.

I am also thankful to my senior friend Waseem Cheema MBA 4th who helps me to complete this project in a good manner and within the time period.

Mr. Shahzad who recently completed his MBA from NUML also help me to understand the pattern of this project.

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Executive Summary

The project which I choose is on Cadbury Company which made Confe
ctionery items and different types of chocolate products.The product which I choose is Cadbury Dairy Milk Chocolate. Cadbury is a Multinational Company and its business is worldwide.

This project covers the following topics:
The introduction and the history of the company, Strategic planning of this company like Vision, mission statement and the customer driven marketing strategies of that company like ( market segmentation, targeting and positioning).

The project also covers the Four P’s of marketing (Product, Price, Place and Promotional strategies).
It also covers about the Positioning strategy like how company sets its positive position and in the minds of consumers. It also tells about logo, Slogans and about the target market of this product.

Micro and Macro Environment of this company also discussed.
At the last my conclusion about the whole marketing process of that company’s product
I also give the reference of those websites which provides me relevant material. And the recommendations about this project.

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Table of Contents
Chapter No Page No
Acknowledgement i
Executive Summary ii
O1 Chapter# 01 1.0
Introduction of Company Cadbury 1.1
Designing a Customer Driven Marketing Strategy 1.2
Capturing Value from Customers 1.3
02 CHAPTER # 02 2.0
Vision and Mission Statement of Cadbury’s 2.1
Designing the Business Portfolio of Cadbury 2.2
BCG _ Matrix 2.3
Customer Driven marketing Strategy of Cadbury Dairy milk 2.4
Behavioral Segmentation of Cadbury dairy Milk 2.5
Target market of Cadbury dairy milk 2.6
Marketing Mix Strategy of Cadbury Dairy Milk Chocolate 2.7
4 P’s of marketing 2.8
Positioning strategy of Cadbury dairy milk & logo 2.9 03 Chapter # 03 3.0
Level of Market Segmentation of Cadbury dairy milk 3.1
Market environment of Cadbury dairy milk 3.2
Macro Environment & conclusion 3.3
Recommendations and References 3.4

Chapter# 01

1

Introduction of Company Cadbury

Cadbury is a multinational company and the Cadbury dairy milk is a brand of chocolate which is made by Cadbury. Cadbury made different types of chocolates and other products which is sold in several countries around the world. It first sold its products in United States in 1905.

History
Cadbury’s started as a one man business, opened in 1984 by a Quaker, John Cadbury, which becomes nowadays Cadbury Limited, and now becomes the world’s largest chocolate producers. In 1831 the business had changed into grocery shop and John Cadbury became the manufacturer of the company.

Cadbury Dairy Milk is a worldwide brand of chocolate of United Kingdom Which made its different types of products and promote in different countries like Pakistan, India, Italy, Canada, France almost all countries.

Product Varieties
Cadbury made different types of chocolates and other products like:

Chocolates:
Cadbury dairy milk chocolate, Kit Kat, Five Star, Éclairs, Fruit & Nut, Cadbury lite, Cadbury Crackle etc…

Snacks;
Cadbury byes

Beverages:
Bourneville, Cadbury delight
Candy:
Cadbury hall
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Selection of product
From above of these products I select the Cadbury dairy Milk chocolate which is the one of product of Cadbury. In 2003 Cadbury’s made Dairy milk into super brand, bringing a number of different products under the name dairy milk branding for example dairy milk with bubbles.

Production of Cadbury Dairy Milk chocolate

Many of the newer Dairy Milk Varieties are now manufactured in the Republic of Ireland, France and Poland. Dairy milk Chocolate itself is also manufactured in France and these products are sold in the U.K and from U.K to all other countries.

Understand the Market place and Customer Needs
Cadbury dairy milk chocolate understands the new market which is targeted. First it selects the targeted customers like Kids, Youths and then made products according to their needs.
Cadbury Dairy Milk Chocolate made by company which offers to specific market, specific customers and also to all type of customers.
Marketplace also selected by Cadbury Dairy Milk according to customer needs and requirements.

Designing a Customer Driven Marketing Strategy
Cadbury Dairy Milk Chocolate Design such a strategy which is customer driven. I mean it target those markets which is profitable for the company. It includes production, product, selling and marketing concept.

Production concept;
Cadbury Dairy Milk Chocolate is a product which is favorable by customers and affordable by customers and Cadbury also focused to improve the quality according to customers’ needs and requirements. And also improve the production and distribution like improve the transportation chain.

Product concept;
Consumers favor the Cadbury Dairy Milk Chocolate because it offers the quality, distinctive features, Affordable price and Cadbury company devotes its full time to satisfy the new consumers and retain the oldest consumers.

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Selling concept;
Cadbury D.M.C has good promotional and selling concepts. It promotes through electronic media and by advertisement channels.

Marketing concept;
Cadbury D.M.C achieved its organizational goals and objectives because they know customers requirements like if they want to target school children it made sashes and made small packing which Childs easily afford. And also targets the specific market like niche markets.

Capturing Value from Customers
It means how company build strong relationships with customers and provides his customers to better products as compare to price which he pays against the product. Cadbury D.M.C provides all the above values and it also explains with the help of the following points.

Future Sales;
Company also focuses to increase its future sales by different ways like Cadbury dairy milk chocolate have more consumers and they also provide low price and more valuable and highly affordable products.

Market share;
Market share means Cadbury dairy milk have high market share and it is becoming higher because it gives more valuable products to consumers.

Market profit;
If Cadbury wants to earn more profit as compare to its competitors then it have to maintain strong relationships with its competitors by giving less price, good packing and also to make them loyal customers.

Customer Loyalty;
It means C.D.M have loyal customers because it provides superior customer value as compare to its competitors means customers get more benefits as compare to its cost. Especially we can say kids and youth are a loyal customers of Cadbury dairy milk chocolate, because they feel they feel they get more benefits which Cadbury’s competitors cannot provided.

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CHAPTER # 02

2

Vision and Mission Statement of Cadbury’s

First of all before discussing any topic we have to understand the vision and mission statement of Cadbury’s which tells about the whole goals and objectives of the company and it helps us to understand the whole .Topic easily and effectively.

Vision Statement;
Cadbury’s set out a vision to achieve “a Cadbury in every pocket” dream by increasing the penetration of chocolates.

Mission Statement;
We can easily understand the mission statement by following points like;
Cadbury’s mean quality
This is our promise
Our reputation is build upon quality
Our commitment to continuous improvement
It will ensure that our promise is delivered

Characteristic of this mission statement;
We can say that this mission statement is realistic because if we see the quality and day to day improvements easily show that Cadbury’s have real mission statement.

Setting company’s Objectives and Goals
Cadbury successfully turned its mission statement into its overall objectives and goals. Cadbury says Cadbury is the name of quality and the Cadbury dairy milk chocolate and also different products is the biggest example of it.

And it says our commitment to continuous improvement and the demand and customer’s satisfaction shows that its products successfully fulfill the needs wants and demands by continuous improvement in the features of products.

In short we can say that company turned its mission statement into practical form and set its overall objectives and goals as Cadbury do and now a day become a market leader.

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Designing the Business Portfolio of Cadbury

Now I discuss the business portfolio, analysis of business portfolio and also see that the relevant market share of Cadbury dairy milk chocolate according to growth share matrix.

I also discuss that Cadbury dairy milk chocolate is on growth stage or it is a cash cow and if it is on question mark and if it is on dog stage then what is the strategy of Cadbury applies to stable its market share.

Business Portfolio of Cadbury
Cadbury made different products and sell into different countries. It means the collection of businesses and products that make up the company. Many of the newer Dairy milk varieties manufactured in the Ireland, Poland, France, and Cadbury dairy milk itself is also manufactured in France different types of chocolates and candies that make up the company Cadbury.

Analysis of Portfolio
It means Cadbury analysis that which product is need to be more investment and which need to less and which product should have to phase out from the market due to less demand.

For example in 2003 Cadbury’s made dairy milk chocolate into super brand, and introduce a lot of products under the dairy milk brand and wispa bars were phased out from market and replaced by dairy milk with bubbles.

BCG _ Matrix

Star

?
Cash cow
Dog

Now I see that my product is on what stage mean Cadbury Dairy milk chocolate is Star, Cash Cow,? Or Dog. And what is the position of market share of Cadbury dairy milk chocolate.

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Star;
It is high growth, high market share and high profit businesses and products.

Cash Cow;
It is low growth, high market share and more revenue generating products and it has high profit as compare to star. It need less investment to hold their market share because it has already well established SBU’s. It produces and made investment in other products because it is well stand itself and made other products from their revenue.

?;
Question marks are low market share, low profit and high growth in markets and they need heavy investment to hold their market share.

Dog;
Dogs are low growth, low market share, and low profit earning products or we can say that it is those that almost phased out from market.

Cadbury Dairy Milk chocolate is on what stage?
Off course I can say that my product is a cash cow because it has low growth, high market share, high revenue generating as compare to other products of Cadbury.

The revenue which generates from D.M.C is used to promote other products of Cadbury like dairy milk with bubbles.

As of 2004, there are ten varieties of dairy milk produced in the U.K with the revenue from dairy milk chocolate. Because it is already well established product which needs less investment but more profit earning.

It can also understand from the following points.
· Low growth because it is well established SBU
· High market share
· High profit
· Responsible to make other products
· Because it is more cash generating
· It has more potential costumers than others

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Customer Driven marketing Strategy of Cadbury Dairy milk
In customer Driven marketing strategy we discuss the Cadbury dairy milk market segmentation, target marketing and market positioning strategies.

Market Segmentation;
It means divide the market into group of potential customers on the basis of occupation as well as the age group of the in the market.

It means all marketing process depends on marketing segmentation and it is the foundation of all the marketing processes.

Cadbury dairy milk also divides the market into different group of customers. We can understand it by following discussion.

Identify Market Segment of Cadbury Dairy milk
Targeting a group of customers who share a similar set of needs and wants which Segmenting the consumer markets. There are basically four types of segmentation which I discuss the following.

Geographical Segmentation
Behavioral Segmentation

Geographical Segmentation;
It can be understand from the following points.

Age and life cycle;
Under this type of segmentation the buyers who mostly prefer the Cadbury dairy milk comes under the age group of 4 to 50 years.

Gender;
For purchasing Cadbury dairy milk gender does not matter. Cadbury dairy milk are for all type of persons whether male or female.

Income;
The price of Cadbury dairy milk is reasonable and affordable, so a person does not need to much think before purchasing. They can easily buy it any time when they want to buy. The income of a person does not play an important role in
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Generation;
Cadbury dairy milk will not be much affected by the generation differences. All type of people like to purchase the Cadbury dairy milk when they want to buy it.

Behavioral Segmentation of Cadbury dairy Milk;
We can understand it by the following points
Decision roles;
The decision role is played by the children and youngsters. They play an important role in taking the decision of when to buy the Cadbury dairy milk.

Occasion;
For purchasing the Cadbury dairy milk no specific occasion are required. People can easily purchase it on regular bases also if they needed.

Benefits;
Cadbury dairy milk is easily available anywhere when we need it. The supply chain of Cadbury dairy milk is very good also it a quality conscious. So there are two main types of benefits given by Cadbury dairy milk are supply chain and quality.

User status;
There are mainly the regular users found in the user status of Cadbury dairy milk.

User rate;
The user rate is heavy in the behavioral segmentation of Cadbury dairy milk.

Loyalty status;
There is mainly the absolute loyalty status.

Attitude;
There is an enthusiastic type of attitude of buyers.

Segmenting for Business Markets;
It can be easily understand from the following points.

Demographic
Operating variable
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Purchasing approaches
Situational factors
Personal characteristics

Models of sequential segmentations;
It can be easily defined and understand from the following points.

Stage of decisions
First time prospects
Sophisticates
Orientation
Price oriented

Target market of Cadbury dairy milk;
The main target of it mainly is children and youths that are in the segments of occupation and in the age group.

Cadbury dairy milk commonly targets all types of customers whether they are young and old, male or female.

And now the target markets which is selected and targeted by it is according to age, gender, occupation and income of potential customers.

How can we choose the target markets from the different segments?
The answer is that a acronym DAMP is used to gauge the viability of target markets.

Discemible; How a segment can be differentiated from other segments.

Accessible; How a segment can be accessed via marketing communications produced by a firm.

Measurable; can a sufficient return on investment be attained from a segment’s servicing.

Profitable; can a sufficient return on investment be attained from a segments servicing.

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Market positioning of Cadbury dairy milk;
Cadbury dairy milk made position of it product chocolate not only in the minds of consumers but also in the market.

It means what is the view of consumers or concept about of your product like trough adds children’s and youngsters view and action after seeing the add of your product.

To make position in the minds of customers company used different promotional techniques through
By giving add through any superstar
Electronic media
Press media
Sign boards
By giving discount
By giving funds to welfare organizations

Marketing Mix Strategy of Cadbury Dairy Milk Chocolate
It is also known as integrated marketing or 4P’s of marketing. We can understand the marketing mix strategy of Cadbury dairy milk by discussing the following four P’s of marketing.

Now I discuss the Product, Price, place and promotional strategy of Cadbury dairy milk chocolate.

Product;
Cadbury dairy milk is made from real chocolate. Its ingredients include cocoa, butter and there is a glass and half full cream dairy milk in every 200 grams in every dairy milk chocolate. Cadbury buys 65 million liter of fresh milk each year to make Cadbury dairy milk chocolate.
Strategy;
The strategy of Cadbury dairy milk is to continuous improvement in the quality and features of product. It is the mission statement of Cadbury to make quality chocolate which have competitive advantage from the competitor’s products and it enhances the goodwill of the company.

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Price;
It is an important element of the marketing mix. The price for a chocolate bar can determine whether a consumer will buy it or not it can be determined easily and sales volume tells about that price is reasonable or not.
If competitors charge the low price than the Cadbury chocolate, it is automatically affect the company’s profit.
Strategy;
Cadbury dairy milk applies the reasonable and affordable policy to charge the price from its competitors. Because it is the vision of Cadbury that Cadbury is in every pocket. It charges the fewer price from its competitors and provides better quality also. We can say it is used penetration strategy because have low prices as compare to its competitors and have long life cycle of the product. Cadbury wants to survive in the market for long run.

Place;
Cadbury dairy milk is produced at the chocolate factory in Bourneville in Birmingham. After the chocolate is produced and goes through the process of all quality checks. It is transported to the staff rooms and then Cadbury sells it product to shops.
Strategy;
The placement strategy of Cadbury dairy milk is to sell the chocolate at every corner shop, super stores, bakers shop, petrol pumps and even medical stores also included in it. It is the mission statement of Cadbury to provide chocolate to all type and class of customers.

Promotion;
The purpose of promotion is to communicate directly with potential and actual consumers. In order to encourage them to purchase dairy milk chocolate the Cadbury used different promotional tactics.
Strategy;
Cadbury dairy milk is used press and electronic media to motivate the potential and inspires the actual customers to purchase the product of Cadbury.
Promotion is an important element of marketing mix because if it is not well planned then company is unable to increase it sales.
The company gives discounts on different occasions.
To inspire the Childs to purchase the Cadbury chocolate the company made such type of ads. To encourage the youth class the company hires the superstars for advertisement of the products which inspires the all type of consumers who want to eat sweet.

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Positioning strategy of Cadbury dairy milk
Positioning is all about that what is the customer concept or image of your product in the minds of the people who likely to purchase the product.
It also concerns about what is the position of your product in the market.

We can say every aged person wants to buy Cadbury dairy milk chocolate and they also don’t know why they are purchasing the Cadbury dairy milk even they don’t want to purchase.

Slogan of Cadbury dairy milk
Slogans also play an important role to position a positive concept in the minds of customers like:

Cadbury dairy milk is a brand of chocolate bar made by the Cadbury plc unit of ….with slogans such as:
A glass and a half of full cream
Cadbury is the name of quality it is our promise

Logo of Cadbury

Brand name of product
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Chapter # 03

3

Level of Market Segmentation of Cadbury dairy milk
Now we have to see which type or level of market segmentation of Cadbury dairy milk has. Of course mass marketing.
Mass marketing;
It means offer the same product to all customers by ignoring market segment differences. Mass means huge group of buyers. It means there are a large number of customers. It is also called macro marketing.
Cadbury offers one type of Cadbury dairy milk chocolate to all customers and no difference of market segmentation. Product, price, place and promotional strategies are also same.

Cadbury dairy milk has competitive advantage
The following are the points which give the competitive advantage over competitors.

Important;
Cadbury dairy milk chocolate is according to customer’s needs wants and requirements.

Distinctive;
Different features as compare to competitor’s products mean Cadbury have good quality, more features like unique taste, design, logo and other attributes.

Superior;
Cadbury dairy milk is superior in quality, continuous improvements and have different features.

Communicable;
Cadbury dairy milk is easy to understand about the quality and features.

Preamtive;
Its logo, quality, taste and other features are not copied by other companies.

Affordable;
Its price is reasonable and affordable by all customers.

Profitable;
It depends on the sales volume and low cost of the company products.
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Market environment of Cadbury dairy milk
There are two types of market environment of Cadbury dairy milk.

Micro Environment
Macro Environment

Micro Environment;
It means the internal environment of the company and it is also called small environmental forces which directly or indirectly affected the company.
It has some forces which are discussed below

Company;
Cadbury dairy milk is a company which manufactures the products like chocolate. There are different departments in the company who collectively responsible to make the products.

Suppliers;
Suppliers are those persons who provide the raw material to the company like cocoa and other supporting raw material there are also external suppliers who provide the finished goods to and create link between company and customers.

Intermediaries;
After making the finished products they create a link between company and suppliers, they include wholesalers, retailers and middlemen.

Competitors;
Cadbury have many competitors who directly challenge their products and affect their business.

Customers;
Are those people who buy the products of the company? Those people who purchase the Cadbury dairy milk chocolate are the customers of the Cadbury.

Public;
It means government who directly affect the company business by giving different facilities like rebates and funds because company get benefits from it.

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Macro environment
It means the overall and general environment of the company. The forces outside the company called macro environment.

Demographic Environment;
Divide the market on the basis of age, gender, locality, occupation and income. Cadbury dairy milk targets all type of customers on the basis on these because these are not the hurdles on the way of the company.

Economic Environment;
Cadbury dairy milk understands the economic situation of the country in which it goes to start the business. I mean inflation rate also a matter.

Natural environment;
It also plays an important role in the success of organization. The availability of natural resources also matters.

Technological environment;
Availability of new technology also plays an important role in the success of any organization. It is the symbol of success that country has all new technology.

Political Environment;
Political scenario plays an important role in the success of any organization. Because if new govt. change all the policies of previous govt. then company may suffer heavy losses. Cadbury dairy milk understand and analyze the all the conditions.

Cultural environment;
The culture plays an important role because if product is not according to specific culture then company may suffer heavy loss.

Conclusion
I can say that Cadbury is a multinational company and its product Cadbury dairy milk chocolate is a cash cow for the company. It is well established SBU. Cadbury dairy milk is a market leader. More profitable as compare to other products of the Cadbury.

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Recommendations:

Launch the product into further countries
Price also need to become more affordable
Improve the quality of sashes
Global growth
Need to improve the marketing mix strategy
Market penetration process need to be effective
Super stars play a key role by advertisement
Promotional strategy need to be revised

References:
www.oppapers.com/essay/dairy_milk_introduction_analysis/88036
http://oppapers.com/essays/cadbury_4ps/49/46
http://www.scribd.com/doc/14436196/cadbury_NEW_PRODUCT_DEVELOPMENT

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