Karam Ceramics Limited Marketing Channel

Submitted to Sir AHMED HUSSAIN KHAN

MARKETING CHANNELS
Submitted By SAMAR JAVED MBPE 12158 M. SHOAIB RASHEED 12114 USAMA BASHARAT 12149 SAIMA BATOOL 12154

TABLE OF CONTENTS
Contents
CHAPTER 1 - INTRODUCTION ACKNOWLEDGEMENT
EXECUTIVE SUMMERY INTRODUCION / COMPANY PROFILE

PRODUCT LINE MARKETING DEPARTMENT MARKETING HEAD AND REPOSIBILITIES REPONSIBILITIES OF MARKETING DEPTT. CHAPTER 2 - MARKETING STRATEGIES DEALERSHIP CRIETERIA DEALER INCENTIVE SCHEME SALES PROMOTION ORDER BOOKING PROCESS DELIVERY CHANNEL DEALERSHIP CANCELLATION PROCESS NO. OF DEALERS AND LOCATION

1 2 4 5 7 7 7

9 10 10 10 11 12 13

REFERENCES ATTACHEMENTTS
APPLICATION FORM DEALERSHIP CONTRACT LETTER (BLANK)

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Page 1

EXECUTIVE SUMMERY
Executive Summery

We are three members in the group and are given to prepare a report on marketing channels of any manufacturing company; covering the topics, Companys profile, Introduction to Marketing Department, and their procedure / responsibilities. For this purpose we have contacted their head office and acquired some raw data and prepared the project. For a complete and presentable project we have gathered information from these sources:

Oral Information from Sales team leader Mr. Yaqoob (Head Office Karachi) Images, Company profile, and Respective information from website Copy of Contract and application form from Mr. Junaid, Dealer at Lahore Office

After conduct of the above researches, our key findings are: Karam Ceramics is a manufacturing concern which is engaged in the manufacturing of Stylish tiles for residence and commercial premises. Karan Ceramics is collaborate with CERIC CETIC (France), B & T, Welko, Sacmi (Italy), Modena Machinery (china), They have many distributer in Pakistan covering many major cities. Mr. Shahid (Marketing Manager) is the head of marketing department and responsible of smooth operation of all the business activities, Marketing MIX, and Companys Growth in sense of market reputation and product branding Marketing Department also involves in the control of distributer and has check on after sales issues. Dealership / Distributer ship Criteria depends upon the region and outlet size. Company process two type of orders On Outlet and trough distributor

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EXECUTIVE SUMMERY
If any distributer fails to complete the targets its distributorship is automatically cancelled All the dealer deposit security to the company and refundable at the time of cancellation or termination All the outstanding dues are deducted the time of cancelation of contract6 Any part either Karam Ceramics or Distributer can cancel the agreement at any time.

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CHAPTER 1
Chapter 1

INTRODUCTION
Introduction

Introduction / Company name Companys Name

Karam Ceramics Limited

Business line
Karam Ceramics is engaged in the business of manufacturing of ceramics tiles for residential premises and commercial offices. They are having wast range of designs and style.

Legal Status
Karam Ceramics is a public limited company and listed on Pakistan Stock Exchange.

Name of directors
Mr. Shuban Ali G. Kassim Mr. Irshad Ali S. Kassim Mr. Munawar Ali Kassim Mrs. Mariam S Kassim Mrs. Sakin Noorullah Mrs Shaheen Barkat Ali Mr Shahnawaz Madhani Chairman Vice Chairman Chief Executive Director Director Director Director

Date of Establishment
Karam Ceramics was established in 1979 on 8th April

Address factory
295/311, Deh Halkani, Manghopir, Hub Dam Road, Karachi

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CHAPTER 1

INTRODUCTION

Head Officer Address

B.C 6 Block 5 Kehkashan Scheme 5 Clifton Karachi

Branch Office Lahore

4-L Gulberge III ferozepur road Lahore

CompanysBanker
Soneri Bank Limited Standard Chartered Grindalys Muslim Commercial Bank Limited Babib Bank Limited

Paid Up Capital
Rs. 145,486,760/-

Companys Product Line

Company makes tiles in In different sizes for for different categories such as Residencial o Bed Room o Bathroom o Kitchen o Exterior o Lounge o Dining Room o Drawing Room

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CHAPTER 1

INTRODUCTION

Commercial o Shopping Malls o Class Rooms o Auditorium o Restaurants o Executive Rooms / Offices o Conference Room / Offices o Admin Floor All the above stated tiles are available in under mentioned sizes 6x6 8x8 10 x 10 8 x 12 10 x 13 12 x 12 16 x 16

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CHAPTER 1

INTRODUCTION

Marketing Department
Location Marketing Department of the company is established in Head office (Karachi) Marketing Head Mr. Shahid is the Marketing Head of the company

Responsibilities of Marketing Department

Marketing Department is a group of whole team of many professionals and they have their own Job description, but individually, Id we describe the responsibilities of Marketing Head That are: Gather a research about new designs according to the customers desire Understand the process of sales of distributers and direct outlet. Manage the CRM as well as vendors Manage the Marketing Strategies and Plan Management of Marketing Mix

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CHAPTER 1

INTRODUCTION

Manage Agencies and Distributors Manage the cost of tiles Manage the customer focus Irrespective of the individual (Manager of Department), There are many common tasks are performed by Marketing Department such as: Marketing Research A group of specialized are assigned to make a research on current and new product lines to make their product at customers first choice. They also collaborate with the French and Italian specialists in order to meet the international standards of quality and product Develop the Marketing Strategy and Plan Another group assignment is to develop the strong plan regarding their budget, product quality, where to buy the raw material, and of which quality. Management of Marketing Mix It is the responsibility of Marketing Department to manage the marketing mix. Karam Ceramics have a strong plan of Marketing mix (Price, Product, Placement, and Promotion) different people are engaged to manage all these things. Customer Relationship Management Generally Marketing Department is responsible to manage a database to record the customers information, but Karam Ceramics is retaining the information of their distributors. Manage Advertisement Marketing department is also responsible for management of advertisement of their product and brand, for this they already have arrangements in their budget. Measuring Success Marketing Department also measures the growth of company, in intangible forms, such as number of unit sold, market reputation, branding, designs copy rights of designs. Etc. In short, Marketing Department has a very versatile nature of job and responsibilities, they can emphasize on any other department of company. They have a focus in whole business activities of company including sakes, purchases, production, designs, promotions, quality and quantity.

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CHAPTER 1
Distribution Channel Flow: Physical Possession Flow:

INTRODUCTION

Producer
Ownership Flow:

Dealer

Customer

Producer
Promotion Flow:

Dealer

Customer

Producer
Negotiation Flow:

Dealer

Customer

Producer
Financing Flow:

Dealer

Customer

Producer
Risking Flow:

Dealer

Customer

Producer
Ordering Flow:

Dealer

Customer

Producer
Payment Flow:

Dealer

Customer

Producer

Dealer

Customer

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Page 10

CHAPTER 2
Chapter 2

MARKETING STRATEGIES
Marketing Strategies

Karam Ceramics have strong binding with distributors to make their sales better and aimed their goals high. For this they have specific criteria for dealership. Their focus is on these rules: Their distributors target customers may not match the ideal customer but reaching target customers for better growth and retaining the Brand Their distributors may have near competitive products or alternative solutions. They may employ pricing and promotion policies which are compatible with companys marketing strategies.

Whereas, they still have very low criteria to meet the current local market situation. Their minimum requirements are as under:

Dealership Criteria
Sales Criteria
The minimum sales of distributer should be 1,000,000/- (One Million for small cities And 1,500,000/- should be for Major city Area i.e Lahore, Karachi

Infra Structure

Showroom Store Room Frontage

Minimum 40 x 40 sq. meter show room Optional and Preferable 10 15 Meters

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CHAPTER 2
Prerequisites

MARKETING STRATEGIES

Customer Centric and well interior Show Room Strategic Location Brand Compatible Area

Dealership Incentive Schemes

Company dont have any specific distributor ship incentives and promotions, they are all working on commissions of sales, Commission rate is based upon their volume of sales, depends upon the market and city of show room.

Sales Promotion
Whereas company offers many sales promotion

Credit Note
Company gives credit note to the distributer, after completing the monthly tarots. All the amount is credited in the distributers account and can be utilize in next month, Ir means they can purchase more material from Karam Ceramix

Annual Reward
They held an annual meeting, and amount distributer of the year, whereas give small prizes to all distributers.

Order Processing Method

Company Generates two types of orders Direct Sales Through Distributer

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CHAPTER 2
Direct Sales

MARKETING STRATEGIES

Company deals with walk in customers at their outlet and there is no formality of order, Customer comes, select design and take it away. Payment is made on spot

Through Distributer
There is a chain process for Order Processing

Account Creation
At the time of Agreement, Distributer open an account with Karam Ceramix, and and compulsory have Minimum Rs. 1,000,000/-of Credit Balance.

Order Application
At the time of purchase, Distributer fills physical order form along with all required data. Such as, Current Credit Balance, Price of order, Order for Month, Delivery Date / Acknowledgment

Approval from Head Office

After Processing of Physical application form, Distributer takes approval from Head Office for the delivery Approval has two parts, Credit Balance Value of Order

Delivery Channel
Company has dual policy for Delivery

Delivery in Same and Major City

Company delivers the order to the distributers where house if in the same city o major city I.e Lahore, Rawalpindi or Karachi

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CHAPTER 2

MARKETING STRATEGIES

Delivery in Other Cities

Company Does not offer delivery to distributers if are not in major city . Distributer itself pays charges for delivery. Such as mandi bahaud din.

Dealership Cancellation
Distribution Agreement can be cancelled either by both parties By Karam Ceramics By Distributer

By Karam Ceramix
Karam Ceramic monitors the sales and performance of distributers each month, If distributers fails to achieve the targets continuously three months, can be terminated as distributer at any time, This option is stil held with Karam Ceramics, Either to continue distribution ship or cancel it.

By Distributer
A distributer also have to right to terminate the distributor ship at any time, but Notice period to cancel the agreement is before 3 months. Note : In both cases, All the credit balance and security held with company is refunded to karam ceramics.

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CHAPTER 2

MARKETING STRATEGIES

Companys Distributers and Outlets (Address and Contact Number)

LAHORE Ammar Sanitary store 199-Ferozpur Road, Lahore PH: 042-37580173 Makka Sanitary store Ferozpur Road, Near Mazang Chungi, Lahore PH: 042-37587632

RAWALPINDI Asia Sanitary Store Muslim Market, Jinnah Road, Rawalpindi PH: 051-5537488 Main Jee Market, Jinnah Road, Rawalpindi PH: 051-5772736 Aqeel sanitary store CH: Waris Plaza, Khanna Road, Rawalpindi PH: 051-34470263

SAILKOT Modern Sanitary House Circular Road, Sialkot PH: 052-34582000. 03216132000

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CHAPTER 2

MARKETING STRATEGIES

FAISALABAD Haji Manzoor Sanitary Store Railway Road, Faisalabad

OKARA Al- Madina Sanitary Store Deepalpur Road, Okara PH: 0333-6964161

SAHIWAL Khadam Boring House Church Road sahiwal PH:040-4465223

GUJAR KHAN Butt Sanitary Store Railway Road, PH:051-3511326

MULTAN Al-Khair TradersHassan Parwana Colony, Multan PH: 03009639940 Leader Ceramics Hassan Parwana Colony Multan

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CHAPTER 2

MARKETING STRATEGIES

JHELUM Daar Ties A llama Iqbal Library Road Jhelum PH: 054-4624697 M Saleem Tiles Bilal Town, Near Commercial College, Jhelum PH: 0321-8512412, 054-43732191

LALA MUSA M. Sanitary Store Mall Road, Lala Musa PH: 03456780390

ATTOCK Northern Hardware and Paint Store B-59 Civil Bazar Attock PH: 0300-5172211

GUJRAWALA Madina Traders OPP. Iqbal High School. Gujrawala PH: 0553-735199 United Traders OPP. Iqbal High School. Gujrawala PH: 0553-840274

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CHAPTER 2

MARKETING STRATEGIES

MIRPUR Mushtaq Sanitary Store Allama Iqbal Road Mirpur A.K PH: 058274-39250

PESHAWAR Shoaib Pipe Store Khebar Bazar, Peshawar PH: 091-32553922

PIRMAHEL Zeeshan Sanitary Store Ghallah Mandi, Pir Mahel PH: 0333-8941143, 0463-367336

MANDI BHAWALDIN Asia Sanitary Store Phalia Road, M.B.A PH: 0546-3507849

JHANG Haji Noor Iron Store Kot Road, Jhang PH: 047-37624450

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ALLOCATION OF CHANNEL FUNCTION AND FLOWS Allocation of Channel Function and Flows
The distribution channel of KARAM CERAMICS allocates the different functions of channel and work is performed on different levels of channel. Following are the channel flows and functions performed by different channel members.

CHANNEL FLOWS

Physical Possession Flow Payment Flow Ownership Flow

Ordering Flow

Promotion Flow

Risking Flow

Negotiation Flow

Financing Flow Page 19

ALLOCATION OF CHANNEL FUNCTION AND FLOWS

Physical Possession Flow: Producer Dealer Customer

In the above diagram, KARAM CERAMICS uses this channel flow for physical possession of refrigerators. Producer transfers refrigerator to its dealers and the dealers transfers to customers.

Ownership Flow: Producer Dealer Customer

In the above diagram, KARAM CERAMICS uses this channel flow for ownership of refrigerators. Producer transfers ownership of refrigerators to its dealers and dealers transfer ownership of refrigerators to customers.

Promotion Flow: Producer Dealer Customer

In the above diagram, KARAM CERAMICS uses this channel flow for the promotion of refrigerators. Producer does promotions of refrigerators for its dealers and dealers do promotions of refrigerators for its customers.

Negotiation Flow: Producer Dealer Customer

In the above diagram, KARAM CERAMICS uses this channel flow for negotiation between each others. Producer and dealers do negotiation regarding their transaction and daily work between each other. The dealers and customer do negotiation between each other.

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ALLOCATION OF CHANNEL FUNCTION AND FLOWS

Financing Flow: Producer Dealer Customer

In the above diagram, financing flow has been shown. The producer and dealer both finance to each other in business activities and dealer and customers finance to each other in the business activities.

Risking Flow: Producer Dealer Customer

The above diagram shows the risking flow which affects both sides in the channel. Both producer and dealers consider risk in the daily business activities and dealer and customers also consider risk.

Ordering Flow: Producer Dealer Customer

In the ordering flow of marketing channel there is reverse flow in the channel. Customers order to dealer for refrigerators and the dealer give order to producer (KARAM CERAMICS) for the demand of refrigerators.

Payment Flow: Producer Dealer Customer

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ALLOCATION OF CHANNEL FUNCTION AND FLOWS

In the payment flow of marketing channel there is reverse flow in the channel. Customers make payments of purchasing of refrigerators to dealer and the dealers make payments to producer (KARAM CERAMICS) for purchasing of refrigerators.

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MEMBERS OF KARAM CERAMICS CHANNEL OF DISTRIBUTION Members of KARAM CERAMICS Channel of Distribution
There are 1600 members of KARAM CERAMICS Channel of distribution from which currently active 1200 members all over the Pakistan. This means there are 1200 retailers of in Pakistan are selling the products of KARAM CERAMICS.

FUNCTIONS
The distribution channel of KARAM CERAMICS performs different functions of daily business activities for performing effectively and efficiently. There are some functions of distribution channel of KARAM CERAMICS which are given below.

Carrying of Inventory
Demand generation Physical distribution After-sale service Extending credit to customers Emerging and spreading persuasive communications about given offers and promotions. Finding, searching and communicating with prospective buyers. Shaping and fitting the offers according to the buyers needs including activities such as manufacturing, grading, assembling and packaging. Reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred. Transporting and storing goods. Acquiring and using funds to cover the costs of the channel work Assuming the risks of carrying out the channel work

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MEMBERS OF KARAM CERAMICS CHANNEL OF DISTRIBUTION

Demand Side Factors:
The demand side factors of distribution channel of KARAM CERAMICS are as follows; Facilitation of Search: The distribution channel of KARAM CERAMICS facilitates its customers to search its products easily. In 21 cities of Pakistan KARAM CERAMICS has its dealers and in those cities the customers can easily see its products and get awareness about the products.

Adjustment of Assortment Discrepancy: The distribution channel of KARAM CERAMICS adjusts the assortment discrepancies by dividing its products according to different sizes. Following are the functions that are performed by the distribution channel of KARAM CERAMICS.

Sorting: The distribution channel of KARAM CERAMICS sorts its products in different sizes Accumulation: The distribution channel of KARAM CERAMICS accumulates its products from the factory and makes available to the customers by distributing at their nearest place. Allocation: The distribution channel of KARAM CERAMICS breaks down its supply into different sizes stock. Assorting: The refrigerators are assorted by the distribution channel and KARAM CERAMICS distributes the refrigerators by assortment.

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MEMBERS OF KARAM CERAMICS CHANNEL OF DISTRIBUTION

Supply Side Factors:
The supply side factors of distribution channel of KARAM CERAMICS are as follows; Routinization of Transactions: The distribution channel of KARAM CERAMICS distributes its products routine wise that makes the distribution channels work efficient and effective.

Reduction in Number of Contacts: The distribution channel of KARAM CERAMICS has fewer levels in its distribution channel that increases the return on products to the company.

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ABILITY TO MEET TARGET CUSTOMER SEGMENTS DEMAND FOR SERVICE OUTPUT Ability to meet Target Customer Segments Demand for service output
The distribution channel of KARAM CERAMICS is doing its job effectively and efficiently. The following points are the facts of this statement that KARAM CERAMICS is meeting the target customer segments demand for service output. Production Capacity: The production capacity of KARAM CERAMICS regarding refrigerator varies according to the season or non season months. The seasonal months starts from March and ends in September. It is 7 months duration that is called season and the production capacity in the season approximately 2000 refrigerators per month.

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GAP ANALYSIS Gap Analysis

SOURCES OF GAPS:
The sources of gaps in the distribution channel are given below.

Environment Bounds

Managerial Bounds

Environmental Bounds:
There are no local legal constraints for KARAM CERAMICS to distribute its products in the Pakistan. KARAM CERAMICS can distribute its products in all over the Pakistan and KARAM CERAMICS is doing this for its customers to penetrate the market.

Managerial Bounds:
There are some managerial bounds in the working of distribution channel of KARAM CERAMICS. Sometimes there comes a conflict in the working of channel work the management of distribution of KARAM CERAMICS bounds some areas to distribute its products.

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GAP ANALYSIS

TYPES OF GAP
The types of gap are as follows.

Demand Side Factors

Supply Side Factors

Demand Side Gaps:

There are some gaps in the demand side of distribution channel of KARAM CERAMICS. Sometimes in the season (summer) when there is high demand of refrigerator there comes gap in the supply of refrigerators in the market because in the summer season there is more demand of refrigerator but there is less supply and this creates gap in demand side.

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GAP ANALYSIS
Supply Side Gaps:
There are some gaps in supply side of KARAM CERAMICS distribution channel. Sometimes the cost of distribution of products gets high due to uncertain events that happen. Due to uncertain events like accidents the cost gets increase and there comes gap in supply side of distribution channel of KARAM CERAMICS.

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POWER Power
KARAM CERAMICS has the power on its channel members due to its hold on the distribution functions and activities to make the channel work effective and efficient.

SOURCES OF POWER
The sources of Power are given below:

Reward Power:
KARAM CERAMICS has the reward power on its dealers because it gives rewards to those dealers who have the high sale in the preceding year. KARAM CERAMICS gives different types of incentives and tour tickets of other countries to those dealers who have high sale in the preceding year. Due to these types of rewards dealers try to increase the sale.

Legitimate Power:
KARAM CERAMICS has the legitimate power on is dealers because KARAM CERAMICS does contract with every new dealer whom wants to becomes the distribution channel member of KARAM CERAMICS and applies some terms and conditions by doing that contract. Due to this contract every dealer of KARAM CERAMICS distribution channel is bounds to follow terms and conditions of the company.

Channel Conflicts:
There come channel conflicts sometimes in performing the channel functions that creates problems in the functions of channel. Types of conflicts:

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POWER
The conflicts types are following which occur in the working of channel functions: Sometimes dealers do not make payments of purchases. Sometimes dealers do not follow the company policies Sometimes dealers do not fulfil the contracts

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CHAPTER 2
Chapter 2

ATTACHMENTS
Attachments

Application Form Dealership Contact Copy

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REFERENCES
References
Oral Information
All the Oral Information such as order processing, obtained from Marketing Department / Head Office

Physical Letters
Contract Letter of Dealer / Application form from Lahore Office

Web Links
http://www.karamceramics.com/contact.htm http://www.karamceramics.com/profile.htm http://www.karamceramics.com/products-line.htm

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