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Acknowledgement Company Profile Marketing Strategies Sales Hierarchy Sales Department Structure Sales Channels Sales Territories Sales Figures Tasks performed by the Sales Manager Sales Planning
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Acknowledgment
First of all I am grateful to Almighty Allah most Beneficial and the most Merciful who has made me capable of making this report and has given me various opportunities for development in every walk of life.
CORPORATE STRUCTURE
Head Office Dawlance Centre: 7/4, Civil Lines-9, Dr. Zia-uddin Ahmed Road, Karachi Managing Director Mr. Bashir Dawood Employees Employee 3200 Engineers 125 Sales Network 20 Sales Branches After Sales & Service Network 26 Branches, 50 Contract Workshop Mobile Service Units in all major cities One Central Office at Karachi & One Regional Office at Lahore Manufacturing Facilities Hyderabad and Karachi Warehouse 16 warehouses all over the Pakistan
Source: (The information has been collected by both primary and secondary sources. Primary data is based on interview from their employee Mr. Mehmood Ahmed. The secondary data is based on the Internet.)
MARKETING STRATIGIES
PRODUCT STRATEGY The objective of Dawlance is to provide electronic appliances to all people who fall in lower middle, middle, and upper middle class in this country such that most of the families should have refrigerators in their home because they enhance better quality of life. Dawlance has got products, which are as per international standards and carry all the basic features, which need in any such type of appliances. Dawlance believe that whatever they provide to their customers should be durable and reliable. All the products, which Dawlance market, are durable enough and customer can keep on using them for quite many years without any problem. It provides its refrigerators, 3 years compressor guarantee and 1 year chest freezer, and free service in spare parts under normal use. PRICING STRATEGY Dawlance has got a policy that their all product price should be the same in all cities and town in Pakistan market. Dawlance bear freight cost and make their product available to their dealers irrespective of where they are located. For this, they give uniform margin to their dealers irrespective of whether he is big or small. Dawlance consider pricing as one of an important element of marketing mix. It believes that their retail prices should be uniform all over the country irrespective of whether customers buy from Peshawar or Karachi. In order to maintain a uniform price all over the country, Dawlance bear transportation charges and make the product available at cost price at dealer premises. PROMOTION STRATEGY Dawlance promotion budget is around 1.75% of their turnover. 40% spending of their budget is Print Media, 20% goes on TV, 20% on Out door activity and balance 20% on Sales Promotion activity. They believe that print media and out door activity help them to reach to their target customer. Due to satellite transmission and having multi-channels, it does not pay one unless you have very huge budget to spend on this media. On promotion, their spending is more on consumer incentive schemes. Since it pay them and there is direct relationship between sales and consumer. Further, it gives customer a direct benefit in shape of price reduction.
DISTRIBUTION STRATEGY Dawlance has got around 800 dealers all over the country. Dawlance ensures that its refrigerators are available almost in all appliances markets of Pakistan. They have got 80% penetration in dealer sector. One can get very easily their product in any city or small town of Pakistan. Dawlance has got various types of dealers according to their potential. Around 25% of dealers are "A-class" dealers who sell over 1000 units and above per year. "B-class" dealers are those dealers who sell from 400 units up to 999 units per year. They are around 50% in total dealer and the rest are in best 25% of "C-class" dealers sell from 200 up to 399 units per year. In order to provide quick and timely delivery to their dealers: they have got big warehouses located in almost all big cities and towns. Whenever they get order from the dealer they try to provide supplies to their dealer from closest warehouse. In case stock is not available in the warehouse then it is delivered directly from Hyderabad Factory. The maximum delivery time incase stock is delivered from Hyderabad or Karachi Factory is four (4) days. However if supply is given from closest warehouse then hardly it takes 2-3 hours time. They believe that, timely delivery of their product to the dealer, is one of an important element in their success in Pakistan. PRODUCT LIFE CYCLE Dawlance is an ISO 9000 certified company and among its mission statement. It is one of their missions to provide quality product to their customers. Therefore, they ensure that every product, which is delivered from their factory, must go through rigorous quality check. So that only perfect product, free from any defect is delivered to their customers. AFTER SALES SERVICES Dawlance believes that after sales service is one of the most important elements of marketing mix and thus give due emphasize in providing quality after sale service to its refrigerator customers. Dawlance has got qualified foreign-trained engineers in its team of after sale service and also properly trained technicians and supervisors who look after service centers and provide reliable quality after sales service to its customers. Dawlance has got 26 its own service centers in different parts of country. Besides, they have got 50 franchise workshops to cover remote areas, where its service center doesn't exist. These are service centers and franchise workshops cover almost 99% market of Pakistan. Wherever Dawlance dealer is, there you'll find Dawlance workshop or either franchise workshop to take care of service need.
In order to provide satisfactory after-sales service, Dawlance ensures that in its entire service centers have sufficient inventory of spare parts is maintained, even these are available with franchise workshops. Dawlance has got the policy first of all to carryout repair, if required at customer place. Incase if refrigerator problem is not diagnosed at customer premises then it is taken to its workshop. Whenever they get any complain, they prepare job sheets and puts its record in computer and whenever at later date if complain is repeated, in that case they also have a history with them of such product in their data bank. Even after five years if you want to find out from Dawlance service center that how many times there refrigerators have been referred on account of technical problem to their center, they can dig out from their computer record. In nutshell, we can say that Dawlance after sales service workshops are very well properly organized and they work according to international service standard.
SALES HEIRARCHY
Head of Sales
9 Zonal Managers
25 Branch Managers
SALES CHANNELS
Dawlance has got both direct and indirect channels for the distribution of its products. Direct Channel: Dawlance has got its own retail shops by the name of Electric city. Through these retail shops the company sells its products. Currently the retail shop operates only in Karachi but they have planned to extend to other cities of Pakistan as well. These shops exist in the following areas in Karachi. Rashid Minhas Road Karachi. Saddar Karachi. Defence Karachi. Indirect Channels: Apart from these retail shops Dawlance also has its indirect channel of its distribution. It has about over 2000 dealers all over Pakistan.
SALES TERRITORIES
Dawlance has got its own territory design strategy. They design their territories according to the potential of that particular area. In some cases they have cover very large area under a single zone. The reason is that sales potential might be very low in that particular zone therefore they have enlarged it to get the maximum potential. In some cities like Karachi which is highly populated they have got 4 to 5 zones in order to better manage the sales volume such cities. Similarly they also have the strategy to introduce the product in a particular zone and they might not introduce it elsewhere. Based on this strategy they have designed their territories allover Pakistan. There warehouses are present in almost all major cities of country. Their distribution network stretches throughout Pakistan.
SALES FIGURES
YEAR 2008 2007 2006 2005 2004 UNITS SOLD(Millions) 1.2 0.9 0.675 0.50625 0.379687 REVENUE(Millions) Pkr 20400 Pkr 15300 Pkr 11475 Pkr 8606.25 Pkr 6454.679
The company has shown about 25% increase in sales in the last 5 years.
SALES EXHIBITION: When company inytoduces new products it gives demonstrations to the sales people about the product information and working, also the technical information is given. The purpose of this activity is to train the sales people so that they could effectively present the new product in the market.
SALES PLANNING
The sales planning is done by the department. Head of Departments from all departments participate in the panning process like Head of Marketing, Head of R&D, Head of Finance, Head of Sales etc. They analyze the marketa and customer requirements, decide which new products to introduce into market, which new markets to enter and what amount of budget they will allocate to different functions. They bring in new policies every month.