Marketing Project
Marketing Project
Marketing Project
A Project on:
Submitted by: Awais Ahmad CIIT/FA09-MBA-027/LHR Sabahat Abid CIIT/FA09-MBA-130/LHR CIIT/FA09-MBA-039/LHR Najm-ul-Hasan CIIT/FA09-MBA-112/LHR Ghulam Asghar Submitted to: MS Faiza Rehman Submission Date: December 7th, 2009
CONTENTS
Preface.............................................................................................................................................5 Acknowledgments..........................................................................................................................6 EXECUTIVE SUMMARY...........................................................................................................7 INTRODUCTION TO THE COMPANY...................................................................................8 COMPANY PROFILE................................................................................................................10 THE CHALLENGE.....................................................................................................................12 SITUATION ANALYSIS............................................................................................................12 (I) Company Analysis................................................................................................................12 a) Goals..................................................................................................................................12 b) Focus/Vision/Mission........................................................................................................12 c) Company Culture...............................................................................................................12 d) Market Share......................................................................................................................12 (II) Customer Analysis...............................................................................................................12 a) No. of Customers...............................................................................................................12 b) Type of Customers.............................................................................................................13 c) Value Drivers.....................................................................................................................13 d) Decision Process................................................................................................................13 (III) Competitors........................................................................................................................13 (IV) Collaborators (Joint Venture/Partnership).........................................................................13 (V) Climate................................................................................................................................13 a) Macro Environment (PEST Analysis)...............................................................................13 (VI) SWOT Analysis.................................................................................................................14 a) Strengths (Internal Environment)......................................................................................14 b) Weakness (Internal Environment).....................................................................................14 c) Opportunities (External Environment)..............................................................................14 d) Threats (External Environment)........................................................................................15 MARKET SEGMENTATION...................................................................................................15 (I) Local and Foreign Banks......................................................................................................15 a) Description.........................................................................................................................15 b) Percent of Sales..................................................................................................................15 c) What the customers want?.................................................................................................15 d) How the customers use the product?.................................................................................15 e) Support Requirement (After Sale Service)........................................................................15 f) How to reach the customers?..............................................................................................15 g) Price Sensitivity.................................................................................................................15 (II) Hotels...................................................................................................................................16 a) Description.........................................................................................................................16 b) Percent of Sales..................................................................................................................16 c) What the customers want?.................................................................................................16 d) How the customers use the product?.................................................................................16 e) Support Requirement (After Sale Service)........................................................................16 f) How to reach the customers?..............................................................................................16 g) Price Sensitivity.................................................................................................................16 (III) Embassies...........................................................................................................................16 a) Description.........................................................................................................................16 b) Percent of Sales..................................................................................................................16 c) What the customers want?.................................................................................................16 d) How the customers use the product?.................................................................................17
e) Support Requirement (After Sale Service)........................................................................17 f) How to reach the customers?..............................................................................................17 g) Price Sensitivity.................................................................................................................17 (IV) Business Houses.................................................................................................................17 a) Description.........................................................................................................................17 b) Percent of Sales..................................................................................................................17 c) What the customers want?.................................................................................................17 d) How the customers use the product?.................................................................................17 e) Support Requirement (After Sale Service)........................................................................17 f) How to reach the customers?..............................................................................................17 g) Price Sensitivity.................................................................................................................17 ALTERNATIVE MARKETING STRATEGIES.....................................................................18 (I) Discounting the product........................................................................................................18 (II) Re-Branding.........................................................................................................................18 (III) Co-Branding.......................................................................................................................18 (IV) Positioning as a premium...................................................................................................18 SELECTED MARKET STRATEGY........................................................................................18 (I) Product..................................................................................................................................18 a) Brand Name/Logo/Slogan.................................................................................................18 b) Quality...............................................................................................................................18 c) Scope of Product................................................................................................................21 d) Warranty (If any)...............................................................................................................21 (II) Price.....................................................................................................................................21 a) Pricing Strategy..................................................................................................................21 b) Sale Price...........................................................................................................................21 c) Discounts............................................................................................................................21 (III) Placement (Distribution)....................................................................................................21 a) Distribution Channel (Direct/Retail)..................................................................................21 b) Location.............................................................................................................................21 (IV) Promotion...........................................................................................................................22 a) Advertising (Through which media)..................................................................................22 b) Public Relations.................................................................................................................22 c) Promotional Programs.......................................................................................................22 CONCLUSION............................................................................................................................22 (I) Recommendations.................................................................................................................22 APPENDIX/ANNEXURE...........................................................................................................23 (I) Supporting Data....................................................................................................................23 a) Graphs................................................................................................................................23 ................................................................................................................................................23 b) Pictures..............................................................................................................................24 ................................................................................................................................................24 BIBLIOGRAPHY........................................................................................................................29 REFERENCES.............................................................................................................................29 (I) Name of the person...............................................................................................................29 (II) Position/Designation............................................................................................................29 (III) Contact Number.................................................................................................................29 (IV) Email Address....................................................................................................................29 EVIDENCES................................................................................................................................29 (I) Visiting Cards.......................................................................................................................29
Preface
The project named Market Plan for the company Interwood Mobel (PVT) LTD is one of the most worked projects by the members of Syndicators and includes the physical visit of the company. The works included in this project are the Situation Analysis of the company, that is Company, Customer, Competitor PEST, SWOT analysis and the type of the business run by the company. It also includes Market Segmentation related to the given company and the Alternative Strategies of the company. Then it covers the Selected Market Strategy of the company, that is Product Range, Pricing Strategy, Placement of the product and Promotion of the products manufactured by the company. Al last it includes the final conclusion made by the members of Syndicators and the recommendations made by them. All the supporting data, that is charts, graphs tables and pictures etc. are attached with the project report. The references and evidences collected are also provided by the report and all necessary information, gathered regarding the persons the members of the group met and their suggestions. This project is very useful for this company, because it will be presented for the public and the persons agaist which it will be presented will get more knowledge and know-how about the selected company. Awais Ahmad Sabahat Abid Najm-ul-Hasan Ghulam Asghar
Acknowledgments
We wish to acknowledge our parents, our teachers and especially COMSATS Institute of Information Technology and Business Administration for the completion of the project. We wish to acknowledge our instructor MS Faiza Rehman for giving us such an important project and for her efforts for us to complete our project by providing us with the Project Outline. We especially acknowledge our friends and members of group for their hard work and knownledge & skills they provided for the work done. We want to thank our friend Mr. Abdul-Rehman, who referred us to the Marketing Department of Interwood Mobel (PVT) LTD and who was the only person through which we could enter the company. Lastly we want to be thankful to Mr. Jawwad Munir, The Assistant Manager Marketing of the company, who provided us with the all useful and possible information of the Marketing Strategy adopted by the company.
EXECUTIVE SUMMARY
The project of designing a Market Plan for Interwood Mobel Private Limited, which is a manufacturing business concern of furniture and wood items, includes the physical visit of the company in order to collect the required information, as assigned by the COMSATS Institute of Information Technology and Business Administration in the Project Outline. The company has been doing woodwork and manufacturing furniture since last three decades. During this period it has grown from strength to strength. It has a share capital of sixty five million rupees. Furthermore, substantial investments have been made both in machinery and personnel to achieve a better quality product at an affordable price. It has worked on a lot of major projects like Dubai Palace, LUMS University and Habib Bank Limited etc. The visit by Syndicators helped to gather the necessary information for Market Plan designed by all members of the group. The person named Mr. Jawwad Munir having a designation as Assistant Manager Marketing provided the information regarding the Challenges faced by the company. It also helped to define the company goal, mission, culture and market share. The company has a large number of customers including individuals and corporate bodies. The company has no competitors within Pakistan yet. It is a Sales Tax and Income Tax Registered Company and the status of this company is Private Limited Company. The nature of its business is that of Manufacturers and Exporters. However, it also provides services in Pakistan. There are about Nine Hundred persons employed by Interwood Mobel Private Limited. The strength of the company includes that it is one and only company that manufactures the furniture of every kind, whether it has luxurious or average type. However, one of the weaknesses is that it has not more than three showrooms in Pakistan, which are located in Lahore, Karachi and Islamabad. The company has a threat of low sale in recent days because of the alarming political and economic situation of Pakistan. However, it is doing its utmost and possible efforts to increase the sale even in such economic crises. The company has a great opportunity of growing its business within Pakistan, till it will face its first competitor in Pakistan. The company has more than one sectors of market, including local and foreign banks, hotels, embassies and business houses. It does not provide any discount offer to its customers, because of already low prices. There is no Co-branding or Re-branding involved in the company. The company has its positioning in its customers mind as premium, because of cheap prices and high quality. The products that it manufactures are wood floors, office furniture, doors, kitchens, computer furniture, kitchen accessories, home furniture, school furniture, restaurant furniture, interior design works, wardrobes, laminate floors and lamps. It gives eight years warranty to its customers for the products it manufactures. The distribution of all these furniture items is direct as well as retail. It provides no or a little after sale service to its clients. It also provides three packages for the customers of various ranks. The advertisement media for the company is chosen as through internet and the companys website. It designs some promotional plans also for launching the new product. Interwood Mobel Private Limited is also registered under the ISO 9001:2000 certification (attached herewith) and has provided with a certificate for that. It has also provided with registration certificate under BS 476 part II certificate for Q-marks fire doors. The company provides a complete one window solution for the home furniture items. The company has provided services in a number of cities. It also has worked out of the country like Maldives, India and United States of America. The prices set by the company for its products varies due to a huge range of the products it manufactures. However, it states its prices as one third and half of the prices of imported furniture items. The person whom the members met, also has provided the video CD, in which the process of manufacturing and finishing is shown in detail. The complete process of all departments and the process of finishing the final products is shown in that video, which will be presented in front of public, with the permission of the instructors. Interwood Mobel Private Limited has a clear objective, goal and mission to give the best possible services to its customers and clients. This company has a lot of benefits and opportunities to grow in Pakistan as well as other foreign countries. The company serves its customers and clients to achieve a remarkable status in the world.
Descon, Lahore, Haidri Homese, Lahore, Ibrahim Fibers Ltd. Lahore, UNDP, Atlas Bank, Lahore School of Economics, Interwood has a solution for class rooms, Laboratories, Offices, Libraries, Hostels and other furniture. This range is wide and varied; however, it also makes furniture to clients designs subject to reasonable quantities. The versatility of Interwood is apparent from the fact that it furnished and did the interior work of Parliament Building, Maldives; Karachi and Lahore Airport woodwork and furniture bears the indelible stamp of Interwood. Interwood is a Brand and Lifestyle which is affordable, aesthetically pleasing, durable and comparable in quality and workmanship to the best in the world.
COMPANY PROFILE
Name of Company Full Address Telephone No. Fax No. URL E-mail Address Status Share Capital Year of Establishment Income Tax Registration No. Sales Tax Registration No. Bankers Types of Activity Name of the Chamber of Commerce & Industry for which it is a member Membership No. ISO Certification Product Range INTERWOOD MOBEL (PVT) LTD 56-Sultan Mahmood Road, Shalimar Town Lahore, Pakistan +92-42-6549123 +92-42-6549126 www.interwoodmobel.com sales@interwoodmobel.com Private Limited Company Rs. 65 million 1974 1316337-0 03-10-9403-003-37 Allied Bank Ltd. (Corporate Branch), Lahore Manufacturers/Exporters Lahore Chamber of Commerce & Industry 11-Shahrah-e-Aiwan-e-Tijarat, Lahore, Pakistan 36177-A ISO 9001-2000 Certified (evidence attached) 1) Wood Floors 2) Office Furniture 3) Doors 4) Kitchens 5) Computer Furniture 6) Kitchen Accessories 7) Home Furniture 8) School Furniture 9) Restaurant Furniture 10) Interior Design Works 11) Wardrobes 12) Laminate Floors 13) Imported Kitchen Appliances 14) Lamps Number of Employees Name of Contact Persons 900 A. Latif Malik (General Manager)
Omar Farooq (Production Director) Khwaja Farooq (General Manager Commercial) Lahore Showroom: Full Address UAN Telephone No. Fax No. E-mail Address Name of the contact person 7-Babar Block, New Garden Town, Lahroe-54669, Pakistan 111-203-203 +92-42-5832463 +92-42-5838481 sales@interwoodmobel.com.pk Abdul Mustafa (Sr. Manager Showroom) Karachi Showroom: Full Address UAN Telephone No. Fax No. E-mail Address Name of the contact person Islamabad Office: Full Address UAN Telephone No. Fax No. Cell No. E-mail Address Name of the contact person House No. 454, Street No. 10, Sector G-10/2, Islamabad, Pakistan. 111-203-203 +92-51-2538346 +92-51-2100243 +92-321-5152929 iwm-isb@iwm.com.pk Mrs. Saima Sayyad C-8-C, 26th St. Touheed Commercial Area, Phase-V, D.H.A, Karachi, Pakistan 111-203-203 +92-21-58246314 +92-21-5824316 sales@khi.interwoodmobel.com.pk Ali Farooq (Director)
(Manager)
THE CHALLENGE
Interwood Mobel (PVT) LTD is the only company in Pakistan that produces all wooden items such as wooden floor, office and home furniture and hotel furniture. The challenge faced by the company is that of producing furniture for almost all kind of people and corporate bodies and according to the needs of all businesses, offices and homes. Interwood has a solution for marketing the new product, when it is introduced on the internet. Interwood has new and latest plants for cutting, grinding and finishing the wooden items. It produces goods, which cannot be manufactured by any other company, if any, producing the same products. The quality of products introduced and launched by Interwood is unmatchable.
SITUATION ANALYSIS
(I)
a)
Company Analysis
Goals
The goal of Interwood Mobel (PVT) LTD is to give the customer best value for money.
b)
Focus/Vision/Mission
Interwood Mobel (PVT) LTD strives to become a world-class manufacturer of furniture,
kitchens, doors etc. The company is committed to a constant improvement in the designs, systems and quality of our products. The earnest endeavor of Interwood is to upgrade the skill, knowledge and standards of living of all employees to international standards.
c)
Company Culture
Interwood has separate departments for manufacturing and serving. Every department
has separate duties assigned by the administration. So the culture of this organization is overall effective.
d)
Market Share
Interwood has captured the market in Pakistan and foreign countries as well. As it is the
only company providing such services, so its market share is very large. However it cannot be stated as 100%.
b)
Type of Customers
Interwood Mobel (PVT) LTD has the following types of its customers. i) Individuals Interwood provided services to a large number of individuals, among whom the most famous individuals are Shah Mahmood Qureshi, Major General Farrukh Javed, Mr. Gul Mohammad Memon, UAE etc. ii) Corporate Bodies Interwood Mobel (PVT) LTD has also provided services to corporate bodies like PEPSI Cola, Eden Developers, McDonalds, Pizza Hut and Sui Northern/Southern Gas Pipelines etc.
iii)
Retailers The Retail Sale of Interwood includes Fatima Memorial Hospital, D.G Khan,
c)
Value Drivers
The customers are not only satisfied with the products of Interwood, but they also again
come for the purchase of the products. They like the new, stylish and luxurious furniture. Simply the customers get the value they want by purchasing such products.
d)
Decision Process
The customers once satisfied with the products of Interwood always purchase the same
or other products. So they actually take no time to take decision of purchasing wood items from Itnerwood.
(III) Competitors
Interwood Mobel (PVT) LTD has no competitors in Pakistan yet.
(V) Climate
a) Macro Environment (PEST Analysis)
i) Political Environment Almost all companies are affected by Political Environment. Unfortunately, Pakistani Political Environment is not stable. So Interwood is also a part of the companies affected by the Political Situations of Pakistan.
ii)
Economic Environment Same as previous, the Economy of Pakistan is also not stable. Interwood is also
affected by the Economic Environment of Pakistan. However, it maintains its position against economic changes in the country. iii) Social Environment The society of Pakistan has almost every kind of people. Some of these are trying to find economic solutions, some of these can afford extra expense and some of these want luxurious goods. Interwood has a solution for all type of people for which, it has made various ranges. All of the above social factors affect the market of Interwood. So it has to change its product type with the change of societal factors of Pakistans economy. iv) Technological Environment The customers needs and wants change due to change in technology. Interwood has a complete solution for such customers who want any type of product, that is manufactured by latest technology and development. Interwood manufactures furniture with latest technology and plants which are purchased from the countries abroad like Germany, Italy, Japan, Korea and USA.
b)
number of showrooms within Pakistan. Secondly, the advertisement media is limited. It only introduces its new products through internet. So it has a limited advertising media.
c)
market in Pakistan. It can increase its sale and can capture the market of Pakistan. Not only Pakistan, but it can also capture the market of the whole world, as its products are globally liked and accepted.
d)
Political and Economic situation of Pakistan. Secondly, it has a threat of facing its competitor, when formed. At that time, it will have to change its marketing policies.
MARKET SEGMENTATION
(I)
a)
foreign banks. Some of these banks include Bank Credit and Commerce International, The World Bank, Allied Bank, Habib Bank, United Bank, Faisal Bank, Citi Bank, Saudi Pak Commercial Bank, etc.
b)
Banks.
Percent of Sales
About 20% of Total Sales of Interwood Mobel (PVT) LTD relates to Local and Foreign
c)
d)
e)
f)
customers well know about the industry. However, the company uses some advertising media in order to reach such customers.
g)
Price Sensitivity
Interwood keeps the reasonable price for almost all segments, but it provides cheap
(II) Hotels
a) Description
Interwood Mobel (PVT) LTD has also worked and completed projects of various famous hotels. Some of these hotels include McDonalds, Pizza Hut, Hotel Holiday & Pearl Continental Hotel etc
b)
Percent of Sales
About 30% of Total Sales of Interwood Mobel (PVT) LTD relates to hotels.
c)
d)
e)
f)
customers well know about the industry. However, the company uses some advertising media in order to reach such customers.
g)
Price Sensitivity
Interwood keeps the reasonable price for almost all segments, but it provides cheap
(III) Embassies
a) Description
Interwood Mobel (PVT) LTD has also worked and completed projects in embassies like US Embassy etc.
b)
Percent of Sales
About 10% of Total Sales of Interwood Mobel (PVT) LTD relates to embassies.
c)
requirements of embassies.
d)
e)
f)
customers well know about the industry. However, the company uses some advertising media in order to reach such customers.
g)
Price Sensitivity
Interwood keeps the reasonable price for almost all segments, but it provides cheap
b)
Percent of Sales
About 10% of Total Sales of Interwood Mobel (PVT) LTD relates to business houses.
c)
d)
e)
f)
customers well know about the industry. However, the company uses some advertising media in order to reach such customers.
g)
Price Sensitivity
Interwood keeps the reasonable price for almost all segments, but it provides cheap
(II) Re-Branding
Interwood has no Re-Branding. It is the independent compnay. Once it introduce a the product, it always keeps the same brand.
(III) Co-Branding
The company has no Co-Branding. It always introduce the product independently. It has no competitors.
Product
Brand Name/Logo/Slogan
Interwood is the Brand name of the company. It states its slogan as A wonderful world
b)
Quality
The Quality of the product introduced by Interwood is unmatchable with any Pakistani or
imported product. So, obviously the Unmatchable Quality of the product is a bonus for the customers of Interwood. The compnay has an ISO certification. It is the ISO 9001:2000 certified company. The evidence of the ISO certification is attached herewith. It is also rewarded a trada certification for Q-Mark fire doors which is also attached herewith.
c)
Scope of Product
Interwood Mobel (PVT) LTD decribes the scope of its products as a complete solution for
homes, offices and hotels, which means that the company manufactures all those wood products which are necessary for any type of hotel, home and office. Furthermore, it describes that the quality of Furniture Products is unmatchable. And lastly, it provides one window operation for its clients.
d)
(II) Price
a) Pricing Strategy
Interwood has a range/solution for every budget, that is, from the clerk to the CEO, everybody is taken care off. The prices of Budget Range take care of people looking for economic solutions. The Crest Range is for people who want to be more elegant and can afford the extra expenses. On top is the Executive Range for Executives and CEOs with conference/board rooms thrown to serve ancillary executive functions.
b)
Sale Price
The sales price of the furniture like items vary time to time and person to person, but, in
general, Interwood has set its prices as 1/2nd and 1/3rd of imported furniture items.
c)
Discounts
There are no discount facilities available for customers by Interwood, because of already
b)
Location
Interwood Mobel (PVT) LTD supplies its products within Pakistan and other foreign
countries. So its sales is both within Pakistan (Major areas of Lahore, Karachi, Islamabad, Multan, Faisalabad, Tarbela and Sialkot etc) and the countries abroad (like USA, UK, Qatar, Dubai, Afghanistan and India)
(IV) Promotion
a)
It
www.interwoodmobel.com.
b)
Public Relations
The company has good public relations, a major portion of public from far and away
c)
Promotional Programs
The company hires some Promotional Programs and conferences in order to promote its
products.
CONCLUSION
(I) Recommendations
Interwood is a brand and a lifestyle which is affordable, aesthetically pleasing, durable and comparable in quality and workmanship to the best in the world. We strongly recommend the people of Pakistan and Foreign countries to have benefit by using one of the most famous and the only brands with a lot of customization facilities. So have EVERYTHING that YOU want!!!
APPENDIX/ANNEXURE
(I)
a)
Supporting Data
Graphs
M AJO R W O R K S EX E C U T E D
70 60 50
AMOUNT (MILLION)
40 30 20 10 0 2006 2007
Y E AR
b)
Pictures
BIBLIOGRAPHY
The followings are the reference material, from where the information is collected: i) ii) iii) iv) Company Profile (Privided by the company) Compnay URL (www.interwoodmobel.com) Video CD (Provided by the company) Project Outline
REFERENCES
(I) Name of the person
The person from whom the information is collected and to whom the members met is Mr. Jawwad Munir.
(II) Position/Designation
The designation of the person was Assistant Manager Marketing.
EVIDENCES
(I) Visiting Cards
Attached herewith please.