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Super Asia MDS Ltd.
Waqas Ahmad MBA- MARKETING Submitted in partial fulfillment of the requirement For the degree of Master of Business Administration At Department of Information Technology and Management Sciences National University of Modern Languages H-9, Islamabad.
Copy right by Waqas Ahmad 2009
All praises and thanks to Almighty Allah. The Lord and Creator of this universe by whose power and glory all good things are accomplished. He is also the most merciful, who best owed on me the potential, ability and an opportunity to work on this project. I am grateful to my respected teacher Miss Hina Shahab who has guided me in each and every step of this project. Indeed, without her kind guidance I may not be able to even start this project. May ALLAH give her the reward which she deserves. I am also grateful to all those members who are related to Super Asia MDS Ltd. Despite of the most hectic schedule, Sir. Mustajab (manager Marketing) helped me so much. I'm really grateful to you Sir for clarifying my concepts and making me learn from your experience. Whatever I learnt from you will definitely help me in my upcoming study and the professional life ahead. Thank you so much for being so cooperative and so helpful every time. I hope Sir I have been up to your expectations. In the end, I am thankful to all my teachers and have a lot of prayers for them who give me the knowledge and make me able to complete my master’s degree. Here I have special thanks for Miss Hina Shahab whose supervision guided me to complete my final project. Waqas Ahmad
“I dedicate my projects efforts to my PARENTS and respected TEACHERS who taught and hold my hands on every step of my life.
I have completed my master’s degree in Business Administration from National University of Modern Languages Islamabad, and internship is compulsory for this degree because university has recommended the internship. Internship helps us to get the practical knowledge of the field and we get a chance to implement our knowledge which we have gotten from our sixteen years of education. We become aware from the field and its requirements that which types of abilities we should have so that we can perform well in the field. I did the internship in Super Asia G.T Road Gujranwala. Super Asia is the manufacturing company and named as a heavy industry of Gujranwala in Pakistan. Home appliances are very important component of our life and are necessary things in our homes, without home appliances it is very difficult to spend our lives. It was the time when people did not have the washing machines, fans, air coolers, air conditioners, microwave ovens, water coolers and heaters but time makes the inventions and necessities make the inventions. Now at this time it is very difficult to spend the life without these appliances. In Pakistan a large of industries like, Waves, Dawlance, Pell, Pak, and Nas Gas etc are providing and producing the home appliance. Super Asia is one of these industries. Super Asia is the heavy manufacturing industry of Gujranwala in Pakistan. Super Asia is producing and manufacturing a lot of home appliances like washing machines, fans, air conditioners, microwave oven, geysers and water coolers. And it has also introduced Super Asia motor cycle SA 70. Like all heavy industries Super Asia also have defined their visions and missions, it has its values and objectives which the company has to achieve. It has its branches in big cities of Pakistan like Gujranwala, Lahore, Karachi, Hyderabad, Multan, Faislabad and Rawalpindi. In Gujranwala the branch is situated in a very large area and has a large number of departments like manufacturing department, assembling department, tool shop, packing department and gowdowns. The offices for the management are separately situated in separate building. Finance department, human resources department, marketing department, purchase and sales departments are working in Super Asia.
In chapter number 2, I did the different analysis of the industry like the SWOT analysis and PEST analysis. In SWOT analysis I have analyzed that how the weaknesses of the Super Asia can be overcome by using the strengths of the company. And how Super Asia can save itself from available opportunities. Super Asia have large number of weaknesses like low usage of modern and advanced machinery, very low advertisement budget, there is over staff in the management etc. these are some of the weaknesses of the company but management can overcome these weaknesses by its strengths. In some areas company have the strengths like it is situated in the market, have a trust of customers. Super Asia is facing a big threat of its competitors. The company is affected by the political power and government, economy and due to the new and advanced technology. I also did the PEST analysis which is political, economic, social and technological analysis. Then in the third chapter of my internship report, I included my internship experience. I did the internship in the marketing department of Super Asia and got a lot of knowledge from my boss. My concerned department was marketing department whose manager was Sir Mustajab; he was a very skilled and knowledgeable person and had a lot of knowledge and experience of marketing. There was some sales person in the staff who was responsible for the orders and delivery of the products. All the decisions related to marketing and sales were taken by the marketing manager who was answerable to the general manager. My duties during the internship were assisting the marketing manager and do the survey of market about the sales of products of Super Asia. I did two surveys about the sales; one was sales of washing machines of Super Asia comparatively sales of other companies and the other was the sales of AC, air coolers, geysers and microwave oven of Super Asia comparatively other companies products. The things required for the marketing jobs are to look active, inspired personality and strong communication powers, and I learned some that how to communicate with the customers in the market. I want to become a marketing guru and the things required for becoming marketing gurus were available in the staff of the Super Asia.
In the fourth chapter of my final project are the analyses which are related to the marketing. This is the work which I did by myself; first analysis which I did is related to the marketing strategies that which one strategy is applicable in the Super Asia. The second analysis is the Boston Consulting Group analysis. In this analysis I determine that from the four stages of BCG in which stage the products of Super Asia lie. And the last analysis is the product life cycle. All the products passed from all the stages of the life cycle, the products when produced are introduced in the market then their sales improved with the passage of time and the time comes when their sales reaches at maximum level. After some time the recession start and their sales start decreasing. These are three analyses which I did in this chapter. In the last, I give the conclusion about this final project and my internship in Super Asia. What are the things which I learned from this internship report and what are the skills and strategies which I should implement in my life and personality so that I can achieve my goals and objectives. At the end of this report I gave the references of all the data and information which I have included in this report. The references are given in APA format.
TABLE OF CONTENTS
Introduction ……………………………………………………………………… History of Industry in World ….………………………………………………… History of Industry in Pakistan ………………………………………………….. History of Organization …………………………………………………………. Information about the Organization …………………………………………….. Vision, Mission ………………………………………… ………………………. Products / Services ………………………………………………………………. Organizational structure …………………………………………………………. SWOT analysis………………... ………………………………………………… PEST analysis………………… …………………………………………………. Internship experience ……………………………………………………………. Concerned department information ……………………………………………… Working experience (Duties / Responsibilities) …………………………………. Learning / Achievements ………………………………………………………… 7 8 12 13 14 14 15 17 21 24 28 28 29 30
Skills used and acquired ………………………………………………………….. 31 Marketing strategies ……………………………………………………………… 33 Boston consulting group …………………………………………………………. Product life cycle ………………………………………………………………… Conclusion ……………………………………………………………………….. 42 45 51
References ………………………………………………………………………... 52
CHAPTER NUMBER 1: INTRODUCTION
Super Asia is engaged in producing top order home appliances in South Asia. Recognition of its achievements in quality products are manifested in the form of the ISO 9002 certification. The success tale spread well over 25 years when Super Asia produced the first washing machine of Pakistan. Later on Super Asia started producing room air coolers, gas and electric geysers. Keeping in view the requirements and purchasing power of all the segments of the society Super Asia has introduced different washing machines to meet their demands. Super Asia has the honor to produce complete plastic body washing machine for the first time in Pakistan. Another hallmark in quality products is introducing the double action washing technology through side and center Plaster. In Pakistan Super Asia has not only introduced a large range of Room Air Coolers in plastic body, but in different sizes and values as well. Super Asia in order to maintain its superiority in producing public utility products has introduced hot and cold, and only cold water dispenser. It was an instant success' due to its design, effectiveness and affordable price amongst the consumers. Similarly the complete range of super Asia fans is of international standard. There are different sizes, colors in Ceiling, Pedestal, Bracket, Circu-matic and Exhaust Fans. Research based products of Super Asia enjoyed a sense of superiority over similar products in the open market. The objective is, however, to offer consumers products of international quality at affordable price and this can be judge by the fact that they are being exported to Saudi Arabia, Dubai, Bangla Desh, Sri Lanka and Myanmar from the last so many years, and their demand is growing day by day. The success story of Super Asia is due to its chairman Haji Mohammad Yousaf while Managing Director Haji Muhammad Afzal looks after the production aspects of the factory. He has a critical approach towards the products and their prices offered by their competitors.
Haji Muhammad Ashraf, Chief Executive of Super Asia has played a leading role in the marketing aspects of the products. He is fully aware of modern trends in the International Markets. It will not be out of place to mention the services of Mr. Faisal Afzal, Mr. Abdul Razaq, Mr. Sohail Yousaf and Mr. Umer Ashraf, that is looking after different departments of Super Asia. These four young fellows with their higher education and thriving on the experience of their seniors have produced excellent results. Apart from looking after the affairs of factory, chairman Haji Muhammad Yousaf is equally paying his attention towards religious affairs and social work. He has constructed a Mosque; Mian Muhammad Din Trust Hospital is another example, where free medical treatment is being provided to factory workers, and the needy of nearby localities.
1.1- History of Industry in world:
History of Washing Machine Industry: Ancient peoples cleaned their clothes by pounding them on rocks or rubbing them with abrasive sands; and washing the dirt away in local streams. Evidence of ancient washing soap was found at Sapo Hill in Rome, where the ashes containing the fat of sacrificial animals was used as soap. The earliest washing "machine" was the scrub board invented in 1797. American, James King patented the first washing machine to use a drum in 1851, the drum made King's machine resemble a modern machine, however it was still hand powered. In 1858, Hamilton Smith patented the rotary washing machine. In 1874, William Blackstone of Indiana built a birthday present for his wife. It was a machine which removed and washed away dirt from clothes. The first washing machines designed for convenient use in the home.
History of Fans Industry: Fan history stretches back thousands of years. Since antiquity, fans have possessed a dual function – a status symbol and a useful ornament. In the course of their development, fans have been made of a variety of materials and have included decorative artwork. The simplest fans are leaves or flat objects, waved to produce a cooler atmosphere. These rigid or folding hand-held implements have been used for cooling, for air circulation, as a ceremonial device, and as a sartorial accessory throughout the world from ancient times. They are still widely used. The earliest known fans are called 'screen fans' or 'fixed leaf fans'. These were manipulated by hand to cool the body, to produce a breeze, and to ward off insects. Such early fans usually took the form of palm leaves. Some of the earliest known fans have come from Egyptian tombs. Early Assyria and Egypt employed slaves and servants to manipulate the fan. In Egyptian reliefs, fans were of the rigid type. Tutankhamen's tomb possessed gold fans with ostrich feathers, matching depictions on tomb walls. Longhandled, disk-shaped fans were carried by attendants in ancient times and were associated with regal and religious ceremonies. They had handles or sticks attached to a rigid leaf or to feathers. Plumage of birds was used in fans, such as those of the Egyptians and Native American Indians, which had both practical and ceremonial uses. History of Air Conditioner Industry: The idea of air conditioning started before a machine was created to produce the cooling effect desired. The first attempt at building an air conditioner was made by Dr. John Gorrie (1803-1855), an American physician, in Apalachicola, Florida. During his practice there in the 1830s, Dr. Gorrie creating an icemaking machine that essentially blew air over a bucket of ice for cooling hospital rooms of patients suffering from malaria and yellow fever. A close ancestor to the modern air conditioner units was first made in 1902 by an American engineer by the name of Willis Carrier. The machine at that time was called "Apparatus for Treating Air" and was built
for the Sackett-Wilhelms Lithographing and Publishing Co. in Brooklyn, New York. Chilled coils were used in the machine to cool air and lower humidity to 55%, although the apparatus was made with enough precision that the humidity level desired was adjustable. After the invention by Carrier, air conditioners began to bloom. They first hit the industrial buildings such as printing plants, textile mills, pharmaceutical manufacturers, and a few hospitals. The first air-conditioned home was that of Charles Gates, son of gambler John "Bet a Million" Gates, in Minneapolis in 1914. However, during the first wave of their installation, Carrier's air conditioner units were large, expensive, and dangerous due to the toxic ammonia that was used as coolant. In 1922, Carrier had two breakthroughs - he replaced the ammonia with the benign coolant dielene and added a central compressor to reduce the size of the unit. Today, air conditioners have been said to be a partial cause for the changes in the South, and for most of us who have experienced its cooling benefits in times of searing heat waves, it is an invention that is hard to live without. History of Geyser Industry: In the 1870s, Englishmen, Maughan invented the first instant water heater. Little is known about Maughan's invention; however, his invention influenced the designs of Edwin Ruud. Edwin Ruud, a Norwegian mechanical engineer was the inventor of the automatic storage water heater in 1889. Ruud immigrated to Pittsburgh where he pioneered the early development of both residential and commercial water heaters. History of Water Dispenser and Water Coolers Industry: The water fountain as we know it was first invented in the early 1906 and is credited to two men - Halsey Willard Taylor and Luther Haws. Haws patented the first drinking faucet in 1911. From those humble
beginnings, when water coolers used large blocks of ice to chill the water, to the selfcontained electric water cooler in 1938, there are now a plethora of models and types to fit every need. Although first "barrier-free" electric water cooler was invented in 1972 by the Haws Corporation, it wasn't until the passage of the Americans with Disabilities Act in 1990 that these accessible water coolers came into their own. Bottled water dispensers have been around since before the middle of the 20th Century. These units depend on gravity to provide the water in a free standing unit. Cooling units were added later. Today, many water coolers or dispensers include a heating element to provide hot water along with chilled water. Some are even offered in designer colors and shapes to fit into any décor. History of Microwave Oven Industry: The microwave oven did not come about as a result of someone trying to find a better, faster way to cook. During World War II, two scientists invented the magnetron, a tube that produces microwaves. Installing magnetrons in Britain’s radar system, the microwaves were able to spot Nazi warplanes on their way to bomb the British Isles. By accident, several years later, it was discovered that microwaves also cook food. Called the Radar Range, the first microwave oven to go on the market was roughly as large and heavy as a refrigerator. The idea of using microwave energy to cook food was accidentally discovered by Percy LeBaron Spencer of the Raytheon Company when he found that radar waves had melted a candy bar in his pocket. The first Raytheon commercial microwave oven was the 1161 Radarange, which was marketed in 1954. In 1967, Amana, a division of Raytheon, introduced its domestic Radarange microwave oven, marking the beginning of the use of microwave ovens in home kitchens. Although sales were slow during the first few years, partially due to the oven’s relatively expensive price tag, the concept of quick microwave cooking had arrived. In succeeding years, Litton and a number of other
companies joined the countertop microwave oven market. By the end of 1971, the price of countertop units began to decrease and their capabilities were expanded.
1.2- History of Industry in Pakistan:
Home appliances are the necessities for living, without home appliances it is very difficult to spend our lives. It was the time when people did not have the washing machines, fans, air coolers, air conditioners, microwave ovens, water coolers and heaters but time makes the inventions and necessities make the inventions. Now at this time it is very difficult to spend the life without these appliances. A lot of companies are manufacturing these home appliances in the Pakistan like, Stylo, Toyo, Asia, Nasgas, Super Asia and a large number of local companies. Kitchen appliances were designed to make life easier when cooking and preparing food. Since the mid-1800s, people have been thinking of new and innovative ways to store food, cook food and clean up after eating food. Many of these ideas were good enough to be used by a large number of people and they are still around today. Inventors are still trying to make things easier by coming up with new products that do more things. Following is a few of the inventions that have stood the test of time and continue to be used by millions of Americans today. In Pakistan it was the 1970 after which the home appliances are started to uses to make the home life easier. No doubt before 1970 home appliances were used but only elite families were able to purchase cooking range, air conditioners and microwave oven. There were very minimum numbers of industries in Pakistan before 1970, after which very rare people started to produce the appliances at local level. At the start, some people who start this business, take a start with only one product and slowly slowly start the production of other products. Most of the companies were dealing only with one product like some with washing machines, some with fans, some with hot and cold coolers and geysers in Pakistan. But when the producers see that the forigner companies are capturing the market and tke product line of these companies is large, the local companies decided to increase
their product line. Pakistani companies start to produce the whole line of home appliances in their companies and slowly slowly improve their image in the minds of the customers. There are few cities in Pakistan like Gujranwala, Lahore, Karachi and Gujrat which are fulfilling the demands of home applinces in the market of Pakistan. There are large number of industries producing the washing machines, spinners, cooking range and ovens in Gujranwala but in fan industry Gujrat is at the top. No doubt, the foreign companies and Chinese products are the big threat for the local industry but still local companies are winning the customer minds by providing the quality in the market.
1.3- History of Organization:
It goes way back to 1968, when Mr. Mian Muhammad Din, the founder of Super Asia, offered its first ever product, Washing Machine, with manufacturing facilities at a small scale to the local community of Gujranwala, city of Punjab. It was about to change the lifestyle of that generation and was a struggle to facilitate the end user with automated technology. He was visionary to predict the pattern of growth in Home Appliances Industry across Pakistan. It took more than a decade of painstaking engineering work to build up the brand name, Super Asia, which had become the symbol of Quality, Durability, Innovation and Economy. Today, it is a conglomerate of companies with more than a dozen different products serving much sectors of society. The success tale spread well over 25 years when Super Asia produced the first washing machine of Pakistan. Later on Super Asia started producing room air coolers, gas and electric geysers. Super Asia in order to maintain its superiority in producing public utility products has introduced hot and cold, and only cold water dispenser. Similarly the complete range of super Asia fans is of international standard. There are different sizes, colors in Ceiling, Pedestal, Bracket, Circu-matic and Exhaust Fans. Chronology of Events happened at Super Asia is as under: 1972: Super Asia produced its first ever Washing Machine in Pakistan.
1981: Introduced Air Cooler in the market. 1985: Offered Geyser in the market. 1995: Introduced Water Dispensers in the marketplace. 2003: Motorcycles launched. 2003: Insulation sheet entry in the market. 2004: Air conditioner and Microwave Oven offered. 2006: Automotive Parts presented in the market.
1.4- Information about the Organization:
Every successful company and organization defines its visions and mission and makes the strategies and rules to achieve these missions and visions. To achieve these visions and missions the organizations and companies have to fulfill the objectives so that the long term visions and missions can be achieved. Same like that Super Asia also have defined its vision and mission which are quoted here.
“To be the market leader in every of our products, Nationally and regionally” Our foremost aim is to think big, be the pace setter and modernizer. Since 1972, being the market leader in washing machines, we have concrete plans to replicate our best practices in every of our offerings, across the region. It is the VISION that every employee of the organization is clear about.
“To win the utmost satisfaction, trust and loyalty Of our valued customers” 15
Super Asia uses the best prevalent tools to win and maintain the satisfaction trust and loyalty of its valued customers. Quality, Delivery and Innovation are the core elements of our philosophy. Stake holders at every level strive to maintain the status quo of the company, to deliver the best. Continues struggle with commitment is technique to accomplish this MISSION.
Super Asia offers a lot of home appliances for its valuable customers. Super Asia is a leading manufacturing company in Pakistan and is competing with foreign companies with its weapon of quality and customer satisfaction. Super Asia is the biggest home appliances producer in Gujranwala and offers leading home appliances. They offer with lot of home appliances which compete with all foreign products due to its fine quality, standards and customer satisfaction. Following are the products which Super Asia offers in the home appliances products:
Washing Machines with its large number of models
Best performance and electric economy with heavy-duty electric motors. Double strike bars for clean, bright and extraordinary washing. Ideal portable washers for large, medium and small families. Maintains its performance even on low voltage. Save time & detergent while brilliant washing.
Defrost Setting. Painted Steel Cavity. Push Button Door. Painted steel cavity.
Air Conditioner New Wall Mounted Series. Built to the highest international standards. Ensuring maximum efficiency, performance and reliability.
Fans of all types and with large number of models Quiet operation. Specially designed blades. Even air throw & Revolving grill.
Room Air Coolers Ultra cool air and quite performance. For the first time in Pakistan introduce water proof pump. An efficient and energy saver cooling system. Water Dispensers New & easiest way to get hot & cold drinking water with water guard. New striking design. Low energy consumption. Easy to install Attractive low price. Electric Water Coolers Complete plastic front. Continue supply of cold water. Seasonal effects and rust proof. Completely tested. 17
Gas Water Heaters Very low consumption of energy. No chance of water leakage. Finished with imported powder coating. SERVICES: various colors and sizes. Available in To provide customer prompt, quality and reliable services at their doorstep Super Asia has a largest after sales service network through out the country. To take care of customer appliances all services centers have latest tools, equipments and machineries. We take care of our customers by remaining in contact with them so that they should not face any type of problem. After sales services team consists of Engineers and highly qualified staff with great professional approach due to this reason customer feels confident, once their appliances being maintained. Super Asia after sale service also provides the facility to customers of lifting their units from residence to service center and delivering them within 48 hours.
1.5- ORGANIZATIONAL STRUCTURE:
Super Asia is market leader in Washing Machine, Air Cooler and Geyser, till today, given the presence of numerous local and foreign brands in Pakistani Home Appliances Market. We stand for as top five in Fan industry and among the top ten manufactures of Motorcycles in Pakistan. Super Asia Spans following divisions: Home Appliances Division:
Super Asia M. Din Sons Ltd.
Super Asia Trading Co.
Superior Electric Private Ltd
• • • • • • • •
Washing Machine Room Air Cooler Geyser Water Cooler Air Conditioner Water Dispensers Microwave Oven Fan Division Ceiling Fan Bracket Fan Exhaust Fan Pedestal Fan Table Fan
Automotives and Automobiles Division:
Super Asia Motors Private Ltd
S. T. High-Tech Private Ltd
Motorcycles Rickshaw Rickshaw -
Spare parts of Motorcycles
Insulation Sheets Division: • Insulation Sheets
Super Asia Administration:
Chairman Managing Director Director Finance
Chief Executive Director HR General Manager Director Marketing General Manager
Director Production General Manager
HR and Administration:
Time Keeping Salaries & Wages
Canteen Hospital Cleaning Building Maintained Area Maintained Legal Cases Trade Mark
Sales and Marketing Department:
• • • • • • • •
Tool Shop Molding Shop Die Maintenance Shop Sheet Shop Motor Body Shop Motor Winding Shop Assembly Fan Shop
Store Department: • • Store Procurement Store for Final Goods
CHAPTER NUMBER 2: COMPANY ANALYSIS
In chapter number two of my final project of internship I have done the analysis of Super Asia. Here I did two type of analysis; first one is SWOT analysis in which I examined the strengths, weakness, opportunities and threats faced by Super Asia. And second analysis in this chapter is PEST analysis which is about politics, economic, social and technological changes. First I did first SWOT analysis and then PEST analysis.
2.1- SWOT ANALYSIS:
SWOT stands for strengths, weaknesses, opportunities and threats. This is the analysis related to the strengths which Super Asia proudly have, weakness of Super Asia, opportunities which Super Asia can avail to prevent from the threats faced to the company and the weaknesses of the company. The reason to do this analysis is to find out that, what are the strengths of the company which can overcome
the weaknesses of the company and to determine the opportunities which can company avail to prevent the threats to the company. I will individually examine the strengths, weaknesses, opportunities and the threats faced by Super Asia here. Strengths: The company has built up goodwill in the market of Pakistan, from a very long time. The company has the largest market share throughout the country in the Washing Machine industry. Brand name of Super Asia is known to almost every person in the country and is very famous in home appliances industry. The company deals in all sorts of home appliances, like Washing Machine, Spinners, Air Conditioners, Fans, Geysers, Water Dispensers, Room Air Coolers, Microwave Oven and Cooking Range. Super Asia is also the strategic partner of Procter & Gamble. The strategies of Super Asia are like Procter & Gamble. Continuous achievement of FPPCI exports Trophy. Super Asia is exporting its products to various regions across the globe mainly markets like Africa, Middle East and Asia. The company is having a number of old employees who are committed and loyal with the company. Super Asia retains its employees by offering benefits like old age benefits, disability benefits, disease benefits, medical facilities in the company hospital and advance pay etc. A large number of models are available in the range of every product of the company. The company has won the Merit Trophy 2004-2005 of Federation of Pakistan Chamber of Commerce & Industry presented by General Peres Musharraf to the Chief Executive of Super Asia.
The company also has won the Merit Trophy 2005-2006 of Federation of Pakistan Chamber of Commerce & Industry presented Shaukat Aziz (Prime minister of the time) to the Managing Director of Super Asia. Weaknesses: Technical labor of the company has the negative views about the management of Super Asia. There is shortage of skilled labor in the company due to which the company has to face a large of competition. The advertisement budget of Super Asia is very short comparatively other brands in the market. Most of the managerial staff is not well educated. There is also a very weak point in the management which is overstaffing. There is overstaffing in the management. The salaries of management staff are very low due to which the well educated and experienced people does not come for the job in company. The management staff do not have direct link with their dealers (sellers of Super Asia’s products). The complaints department does not provide the proper services to the customers of the company. The company has not developed the proper promotional strategies for international markets. Dealers of the company complaints for the low profit margin in Super Asia’ products. Opportunities: Due to Government policy of low export duty, Super Asia has opportunities to increase their exports.
Due to the strong financial position of the company, the management can use the latest technology in their products. They can use the brand name in the international market to increase their sales of Fans like their Washing Machines. As the company is financially very strong, so it can use electronic and print media to increase their sales. They should invest in the SBUs like Air Conditioner and Microwave Oven which have low market share and very low growth rate. Super Asia should appear in the international industrial exhibition. It is a big opportunity for the company to create the awareness of its brand in the international markets.
Threats: Chinese Technology is the very big threat to Super Asia. .Other competitors of Super Asia are offering the same products at relatively lower prices. A large number of new incoming companies are increasing the competition in the market. Stylo Washing Machine Company is investing a heavy budget in the promotion of their products. Current Power & Electricity crises are very big hurdle for the manufacturing unit of the company. Due to the shortage of electricity the company may be unable to meet the orders. The complaints in some particular SBUs, like Motorcycles is a big threat to the brand name of the company.
2.2- PEST ANALYSIS:
A scan of the external macro environment in which the firm operates can be expressed in the following factors; 1. Political 2. Economic 3. Social 4. Technological PEST analysis is used to describe a framework for the analysis of these macro environment factors. A PEST analysis fits into an overall environment scan as shown in following diagram
PEST ANALYSIS Political Factors:
Pakistani government is somehow stable in these days and focusing on the foreign trade. Super Asia is taking advantage of this move by government and is trying to increase their exports. Government is providing opportunities to the companies to provide benefits like old-age benefits, disability benefits, pension, etc. These benefits are to be
provided by every company under the supervision of Social Security Ordinance. Super Asia is also providing its employees the benefits of social security. Government has allowed the Puffery statements in advertisement but there should be truth in selling and deception statements are not allowed. The company has a trade mark and a trade name that gives the company an exclusive right by the government policies to use it and enter into contracts and dealings through its registered trade name. The company is bound to follow the workers safety regulations as laid down by the workers safety act. As the policy of government the minimum wage that should be given to a worker is 6000/= but Super Asia is not following that policy as other companies in the area are also not following it. All the tax related policies are being followed by Super Asia. The company also publishes its annual reports as are compulsory to publish by the government. Economic Factors: Super Asia plays an important role for economic growth by contributing to the economy of the country. The cost of production includes wages of workers, salaries to the staff, purchases, utilities, carriage inward and outward, etc. The company offers a variety of products for different classes of customers. For example, good quality and a bit expensive products for higher class and cheaper products for middle and lower class customers. Some SBUs like washing machine and fans are at their boom while others like motorcycle, oven, AC, etc are at their growth stage. It never happened that any one of Super Asia’s product went into its recession stage. The prices of products of Super Asia are higher than products of its competitors but still Super Asia has the largest market share due to the quality of its products.
The exchange rate of the company is high due to which the customers have the confidence on Super Asia.
The salaries and wages of the workers and management are not satisfactory so the income distribution factor is not satisfactory. Super Asia is funding many NGOs and welfare organizations in the whole country. Super Asia has the honor of being the first and only local home appliances company to sponsor an international cricket series. The company is running a hospital “Mian Muhammad Din Memorial Trust Hospital” for the welfare of its employees as well as the people of the near vicinities. The company is providing various types of home appliances which are helping in improving the life style of the people. The company is providing models in a variety of fashion which can be used differently at different places. Technological Factors:
The company is having a computerized lath machine which helps in reducing labor cost and time needed to produce a dye. Due to technological improvements many items are available at lower prices from China and Super Asia is taking full benefit from it. The manufacturing department also has different types of dyes for different models or shapes of washing machine and fan. A tool shop also operates within the factory premises, which manufactures its own tools to be used in production.
Latest technology is being used by the company for motorcycle engine and air conditioner machinery. The company is also thinking of introducing a new swap machine that would note the attendance of each employee when one will swap his card into it. This machine will also provide the management with the statements showing the late minutes of each employee and the leaves in the month. The company has provided the computers to the staff members to eliminate the cost of stationery and to save the time. Different software are being used in every department for advertisement, employee data base, payroll and for the maintenance of accounts.
CHAPTER NUMBER 3: INTERNSHIP EXPERIENCE
I have been working in Super Asia MDS Ltd as an internee for 6 weeks. The reason for choosing this company for internship experience was that it is one of the biggest companies in our city. Although other companies and banks also offer the facility of internship for MBA students but I decided to work in Super Asia for its reputation and its friendly environment. Although an internee is not a permanent employee of the company but can get a lot of knowledge and skills in this very short period and so did I.
I took it as opportunity for me and my career and tried to acquire as many skills as I could. The management and other staff of my department have been very cooperative and guided me throughout my internship period. They treated me like the employee of the company and took my full time to work in the company for me to get used to of working in an organization. It was for the first time in my life when I felt that there are some practical and reasonable assignments in front of me and I tried to accomplish each and every task with full of my responsibilities and capabilities
3.1- CONCERENED DEPARTMENT INFORMATION:
I did my MBA in marketing so it was necessary to do the internship in the marketing department. Due to this reason I decided to select the marketing department of Super Asia. In this company each department is governed by director, so marketing director was the head of the marketing department. Under director the marketing manager Mr. Mustajab Hussain was managing the marketing department. Haji Muhammad Ashraf chief executive of the company has played a leading role in the marketing aspects of the products, he is fully aware of the international modern marketing trends. Mr. Sohail Yousaf is the director of the marketing department and Mr. Mustajab Hussain is the marketing manager. And a team consisting of the assistants and the sales men is working under the marketing manager. As sales department is also considered under the marketing department so the sales related issues are also handled by the marketing director and manager. Salesmen have to analyze the market by survey and find their position in the market.
Salesmen of the company have to capture the dealers in the market, and the salesmen are also responsible for the recovery of the payments. First they take the orders and then these orders are delivered to the production department. Production department provide the items of order to the carriage department and after the delivery of goods the salesmen go for the recovery of the payment. The main task of the salesmen is to get the new dealers in the market.
3.2- WORKING EXPERIENCE (DUTIES/ RESPONSIBILITIES):
During the internship in Super Asia some duties and responsibilities were assigned to me and I have to complete these tasks with my full attention and responsibilities. Here I am giving some little bit detail of these duties and responsibilities: My primary duty was to assist my boss who was the marketing manager Mr. Mustajab Hussain. It was also assigned to me to go with the salesmen to deal with the company’s existing and new dealers. My boss gave me an assignment to do the market survey on the sales of washing machines and I did that task with my full attention. The second task was to do the same survey on the sales of air conditioner, microwave oven, fans, air coolers and geyser and I complete this assignment with my full responsibility. Mr. Mustajab Hussain my boss demands the reports of these surveys from me. And I accomplished these report and present to him. My boss also consults with me about the latest marketing and sales strategies and asked me for the modification in these strategies.
During my internship period, I visited the market with the company’s salesmen four times. During my visits I deal with the customers and attract the new customers for the company.
3.3- LEARNINGS/ ACHIEVEMENTS:
The main purpose of internship is to get a practical experience in the market and to get some practical knowledge. Usually the period of internship is short but we can learn a lot from this period. This was first time in my life when I was doing some reasonable and practical tasks. A lot of learning and achievements I have gotten from the marketing staff like: First thing I learnt from this short period of job is punctuality. I learnt from this how to be in time in the company. The second thing is dressing, professional dressing matters a lot. By seeing my seniors and colleagues I start to copy them in dressing. It was a big achievement for me, that I learn how to do the work in team and group of people. Working in the team should be learnt.. Communication with the customers and get their minds is very difficult task, but in the company I visit the market four times and learnt how to communicate with the customers and how to get the new customers. How to sit in professional people, how to look, how to talk and how to work is also learning for me. I learnt from the organization that how to accomplish the tasks and the assignments which were assigned to me. It was first time in my life to work whole day in the company with full responsibility, to go in time and to off in time. I learnt how to implement my MBA knowledge on this job. I learnt what the practical implementation of the book knowledge is.
I learnt how to present the present the products to customers and how to explain the characteristics of the product.
3.4- SKILLS USED AND ACQUIRED:
To do any type of job a number of skills and abilities are necessary and when this job is professional then a man should perfect and have a lot of skills and abilities to perform any type of the task. In the finance field a man should have the ability to making and analyze any type of the account, can operate Microsoft office, long term writing capacity and proper dressing etc. and in human resources field a man should be in proper dressing, well presentation power, can handle the workers and punctual. Same like these I did the job in the marketing department and following are some of the skills needed and acquired: The first and necessary skill for the marketing job is the communication power. The communication power should be very strong. Ability to enforce and agree the customer to purchase our product by presenting the characteristics of the product. A marketing officer should have the strong presentation power, so that he can present any topic against his executives. The ability to perform Microsoft power point so that one can make the slides of one’s presentation. Skills to operate new latest marketing and selling strategies to increase the sales of the company. The ability to convince the company’s dealers and new customers for the company. The ability to make the commercials and advertisement for the products of the company. The ability to make the conversation and bargaining with the customers.
CHAPTER NUMBER 4: MARKETING ANALYSIS
In the chapter number four of my final project, I have included the marketing analysis, in this analysis I examined that which of the marketing strategies Super Asia is using to maximize the sales of the company, the second analysis in this chapter is Boston Consulting Group analysis and in this analysis it is determined that in which stage the
different products of Super Asia lies, this analysis is called the Boston Consulting Group. In this analysis stage of every product is determined and these stages are related to the sales position of that product. The third analysis in this chapter is product life cycle. Product life cycle shows the all stages of sales from its production to the decline of the product. Every product when produced passes from different stages of the sales, sometimes its sales is going to increase and sometimes its sales starts decreasing. Sometimes its sales are at the boom position and sometimes theses are going to decline. Here I am doing these three analysis related to the sales of Super Asia one by one.
4.1- Marketing Strategies:
The marketing logic by which the business unit hopes to achieve its marketing objectives. The strategic plans define the company’s overall mission and objectives. Marketing’s role and activities summarize the major activities involved in managing marketing strategy and the marketing mix. Next comes, marketing strategy-the marketing logic by which the company hopes to achieve these profitable relationships. Through market segmentation, targeting and the positioning, Super Asia decides which customers it will serve and how. It defines the total market, then divides it into smaller segments, and focuses on serving and satisfying customers in these segments. Two things come under the head of marketing strategies: 1- Customer-Centered Marketing Strategy 2- Marketing Mix 1- Customer-Centered Marketing Strategy: In today’s competitive marketplace, companies’ needs to customer centered. They must win customers from competitors, then keep and grow them by delivering greater value. But before it can satisfy customers, a company must first understand their needs and wants. Thus, sound marketing requires a careful customer’s analysis.
Super Asia knows that it cannot profitably serve all consumers in a given marketat least not all customers in the same way. There are too many kinds of customers with too many different kinds of needs. And most companies are in a position to serve some segments better than others. So Super Asia has divide up the total market, choose the best segments and design strategies for profitably serving chosen segments. This process involves three steps, which are: i. ii. iii. Market Segmentation Target Marketing Market Positioning
Now these are explained individually here: i. Market Segmentation: Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products and marketing mix. Rather than Super Asia offers the same marketing mix to vastly different customers, market segmentation makes it possible for Super Asia to tailor the marketing mix for specific target market, thus better satisfying the customer needs. Not all elements of marketing mix are necessarily changed from one segment to the next. For example, in some cases only the promotional campaigns would differ. A market segment should be: • • • • • Measurable Accessible by communication and distribution channels Different in its response to a marketing mix Durable (Not changing too quickly) Substantial enough to be profitable 36
Super Asia has segmented by various bases, and industrial markets are segmented somewhat differently from consumer markets. A basis for segmentation is a factor that varies among groups within a market, but that is consistent within groups. Super Asia has segmented the market on the following bases: Geographic Segmentation: Geographically Super Asia segmented the world market as that, the company normally focuses on the Pakistani market for whole of its products. Pakistani market is the target segment of Super Asia. They make the segments of the whole world market and then decide to focus on one segment which is the Pakistani market. Demographic Segmentation: Super Asia divides the market for different products on different way. There are lot of segments of market on the bases of demography, like; on the bases of gender, age, education, occupation, income and family status. Super Asia has to choose the different segments for their different products. For every product of the company there is different segment. Psychographic Segmentation: On the bases of psychology the company has made the segment on the bases of lifestyle, values and attitude. There is different level of products for different status people. This segmentation based on the lifestyle and family status. Behavioral Segmentation:
This segment of the company is based on the usage rate, brand loyalty, price sensitivity and benefits of the product. ii. Target Marketing: Target marketing involves breaking a market into segments and then concentrating your marketing efforts on one or more key segments. Target marketing can be the key to a small business’s success. The beauty of target marketing is that it makes the promotion, pricing and distribution of your products and/or services easier and more cost-effective. Target marketing provides a focus to all of your marketing activities. When Super Asia has defined the market segments, it can enter one or more segments of a given market. There are different market segment for the different products of Super Asia, and the company target individually on the different segment of the different products. Here I am showing the target market for different products of the company: Washing Machine, Spinners and Oven: Super Asia can make the promotional strategy for whole of the market, but in the advertisement and promotional strategies the company focuses on the housewives and women. So in these SBUs the target market of the company is the housewives and the women. And there are different models of these products for the different status people and having different lifestyles. The company makes the promotional strategy for the whole market of Pakistan. Air Conditioner, Fans, Geysers and Air Coolers: In this range of the SBUs the company’s target market are families of different status and lifestyle. Here the company makes the promotional strategies for whole of the family because these products are used
by whole of the family members. Mainly the promotional strategies for these products are made for the urban areas.
Motorcycles: This product is only used by the men, so in this range of the product the company’s target market are men of the Pakistan. So they make the advertisement to attract only the men. iii. Market Positioning: Arranging for a product to occupy a clear, distinctive and desirable place relative to the competing products in the minds of the target consumers. Positioning is a perceptual location. It's where your product or service fits into the marketplace. Effective positioning puts you first in line in the minds of potential customers. Positioning is a powerful tool that allows you to create an image. And image is the outward representation of being who you want to be, doing what you want to do, and having what you want to have. Positioning yourself can lead to personal fulfillment. Being positioned by someone else restricts your choices and limits your opportunities. That's why it's so important for Super Asia to transform their passion into a market position. If the company doesn’t define its product or service, a competitor will do it for you. So the company’s position in the market place evolves from the defining characteristics of their product. The primary elements of positioning for Super Asia are: Pricing: The prices of the company are somewhat high due to which the people are converting to buy the competitors products. It is necessary for getting the positioning in the minds of the consumers to set the lower prices of the products than competitor’s products.
Quality: Quality of the products matters a lot. If your product is satisfying the consumer quality wise then it is possible to get the higher sales. Some of the Super Asia’s products are quality wise very well due to which they earn a lot of the revenue for the company. The quality of Washing Machines of Super Asia is very satisfying to the customers due to which this SBU get very large revenue for the company. Service: They provide customer services due to which the consumers of home appliances purchase their products. The company provide after sale services which is a key factor of the large sales of Super Asia. Distribution: the products of the company are available all over the country because it is important that the products should be available to all the consumers. There are more than 1500 dealers of the company all over the country providing the products of Super Asia’s products to the consumers. Packaging: The beautiful packaging of the products attracts the consumers to buy the products. Here the company is also strong because their packaging is very well.
2- Marketing Mix: The marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives. Consumers often call the marketing mix "the offering." Super Asia’s marketing mix also depends on these procedures. Your offer is controlled by the following variables often referred to as the four Ps in marketing: Product Price Place
Product: The product is physical product or service offered to the consumers. In the case of physical product, it also refers to any services or conveniences that are part of the offering. Product decisions include the aspects, such as function, appearances, packaging, service and warranty etc. All the products of Super Asia are the physical products, the company does not deal any service, but provide the after sales service repair services and home delivery services etc. the products decisions include the following factors:
• • • • • • •
Variety Quality Design Features Brand Name Packaging Services And Super Asia have included all these factors in their products, such as
there is a lot of variety in every product of the company, some of the products are quality wise very good, design and packaging of the products are very attractive and have different feature. The brand name of Super Asia is known to almost every person in the country and the company also provide after sale services, free repair services and home delivery services. Price: Price is the amount of money consumer has to pay to obtain the product. Pricing decision should take into account profit margins and the probable pricing responses of the competitors. Pricing not only include the pricing list, but also discounts, financing and other options such as leasing. In the pricing strategy Super Asia have included following things: • • • • • List Price Discounts Allowances Payment Period Credit Terms
Super Asia has provided a list price of all its products to all of its dealers and asked them to provide the discounts to all the customers. The company gives different types of the allowances to all of its dealers and consumers like, prizes, discounts schemes etc. The company also deals with its dealers on the credit bases. Place: Place includes company activities that make the product available to the target consumers. Place decisions are those associated with the channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical and facilitating functions. Distributions decisions include market coverage, channel member selection, logistics and levels of service. Following things have included by Super Asia in the Places strategies: • • • • • • Channels Coverage Assortments Locations Inventory Transportation Super Asia uses its personal conveyance for the distribution of the products to place of selling. And these points of selling are approachable to all the consumers. Like Gujranwala there is proper electronics and home appliances market which is at the assessable place. In other cities these points of selling are easily approachable to all the customers. And the company provides a large inventory to all its dealers so that consumers can not face the difficulty of un-availability. Promotion:
Promotion means activities that communicate the merits of the product and persuade target consumers to buy it. Promotions decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decisions, it is useful to know the value of consumer in order to determine whether additional customers are worth the cost of acquiring them. Super Asia has taken the following steps for the promotional strategies: • • • • Advertising Personal Selling Sales Promotion Public Relation The budget for advertisement is low for the company products which is great threat for the company due to which the competitors are getting the advantage. Super Asia also does the promotion in some public welfare works. Company is funding to various NGOs and welfare organizations.
4.2- BOSTON COSULTING GROUP ANALYSIS:
The business portfolio is the collection of businesses and products that make up the company. So in Super Asia every product is the business portfolio for the company. The best business portfolio is one that fits the company's strengths and helps exploit the most attractive opportunities. The company must: (1) Analyze its current business portfolio and decide which businesses should receive more or less investment, foe example in Super Asia some of the business portfolio need
more investment like Air Conditioner, Microwave Oven and some business portfolios like Washing Machines need less investment. (2) Develop growth strategies for adding new products and businesses to the portfolio, while at the same time deciding when products and businesses should no longer be retained. Super Asia has made the strategy for growth and adding new products; like Insulation Sheet. Methods of Portfolio Planning: The two best-known portfolio planning methods are from the Boston Consulting Group (the subject of this revision note) and by General Electric/Shell. In each method, the first step is to identify the various Strategic Business Units ("SBU's") in a company portfolio. An SBU (Strategic Business Unit) is a unit of the company that has a separate mission and objectives and that can be planned independently from the other businesses. An SBU can be a company division, a product line or even individual brands - it all depends on how the company is organized. In Super Asia every of their SBU has separate mission and objectives and the management makes the individually planning for every of their SBU. So we can say that there are 10 SBUs of Super Asia. The Boston Consulting Group Box ("BCG Box")
Using the BCG Box (an example is illustrated above) a company classifies all its SBU's according to two dimensions: On the horizontal axis: relative market share - this serves as a measure of SBU strength in the market On the vertical axis: market growth rate - this provides a measure of market attractiveness By dividing the matrix into four areas, four types of SBU can be distinguished: Stars - Stars are high growth businesses or products competing in markets where they are relatively strong compared with the competition. Often they need heavy investment to sustain their growth. Eventually their growth will slow and, assuming they maintain their relative market share, will become cash cows. Here the motorcycle and fans of Super Asia best fit because their growth is high but they still need high investment to sustain their growth. Cash Cows - Cash cows are low-growth businesses or products with a relatively high market share. These are mature, successful businesses with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars. Washing Machines of Super Asia comes under this head because they are earning a lot for the company and need very low investment. Question marks - Question marks are businesses or products with low market share but which operate in higher growth markets. This suggests that they have potential, but may require substantial investment in order to grow market share at the expense of more powerful competitors. Management have to think hard about "question marks" - which ones should they invest in? Which ones should they allow to fail or shrink? Water Dispensers, Geyser, Room Air Cooler and Safe Lines have very low market share but they operate in higher market growth. Super Asia should think about the Water Dispenser, Geyser, Room Air Cooler and the Insulation Sheet because they can earn a lot for the company, if investment is made in these business portfolios.
Dogs - Unsurprisingly, the term "dogs" refers to businesses or products that have low relative share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in. Air Conditioners and Microwave Oven of Super Asia are at this stage.
4.3- PRODUCT LIFE CYCLE:
A product’s life cycle can be divided into several stages characterized by the revenue generated by the product. If a curve is drawn showing product revenue over time, it may take one of many different shapes, an example of which is shown below:
The life cycle concept may apply to a brand or to a category of the product. Its duration may be as short as a few months for a fad items or a century or more for product categories. Product development is the incubation stage of the product life cycle. There are no sales and the firm prepares to introduce the product. As the product progresses through its life cycle, changes in the market mix usually are acquired in order to adjust to evolving challenges and opportunities.
Introduction Stage: When the product is introduced, sales will be low until customers become aware of the product and its benefits. Some firms may announce their product before it is introduced, but such announcement also alert the competitors and remove the element of surprise. And Super Asia also uses this strategy that they announce the product before the introduction and their view about this thing is that customers become aware of the product before its introduction in the market. Advertising costs are typically high during this stage in order to rapidly increase the customer awareness of the product and to target to the early adopters. When Super Asia was introducing its Motorcycle they were advertising a large. During the introductory stage the firm is likely to incur additional costs associated with the initial distribution of the product. These higher costs coupled with a low sales volume usually make the introduction stage a period of negative profits. During the introduction stage, the primary goal is to establish a market and build primary demand for the product class. The following are some of the marketing mix implication of the introduction stage: Product: At this stage one or few products which are differentiated are introduced. Safe Line of Super Asia is at this stage. And somewhat Motorcycle is also at this stage. Price: Usually at this level the prices are high to cover the cost of the product. But sometimes low prices are set for the penetration in the market and gain the high market share. Super Asia usually uses the penetration strategy at this stage so that they can attain the high market share. Here the prices of Safe Line of the company are high.
Place: Distribution is selective at this stage and scattered as the firm commences implementation of the distribution plan. Promotion: Super Asia set a heavy budget at the introduction stage of the product for its advertisement. At this stage heavy advertisement is necessary.
It is the stage of the product life cycle in which a product’s sales start climbing quickly. It is a period of rapid revenue growth, sales increases as more customers become aware of the product and its benefit and its additional market segments are targeted. Once the product has been proven a success and customers being asking for it, sales will increase further as more retailers become interested in carrying it. The marketing team may expand the distribution at this point. Motorcycle and Ovens of Super Asia are at this stage because their sales are increasing. When the competitors enter the market, often during the later part of the growth stage, there may be price competition and increased promotional costs in order to convince the consumers that the firm’s product is better than that of the competition. During the growth stage, the goal is to gain consumer preference and increase sales, the marketing mix may be modified as follows: Product: New product features and packaging options; improvement of product quality. Motorcycle, Fans, Water Dispensers and Air Coolers are at the growth stage. Their sales are improving.
Price: Maintained at the high level if demand is high, or reduced to capture additional customers. Here the company reduced the prices so that more customers can attract towards Super Asia. Distribution/ Place: Distribution becomes more intensive; trade discounts are minimal if resellers show a strong interest in the product. The company is providing more inventory to its distributors. Promotion: Increase advertising to build brand preferences. The management is making strong promotional strategies for Motorcycles, Fans, Water Dispensers and Air Coolers.
The stage in the product life cycle in which sales growth slows or level off, it is the most profitable stage while sales continue to increase in this stage, they do so at a slower pace. Because brand awareness is strong, advertising expenditure will be reduced. Competition may result in decrease market share and prices. Super Asia’s Washing Machines and Spinners are at the maturity stage and earning a lot of profit for the company and their advertisement cost is also very low. The competing products may be very similar at this point, increasing the difficulty of differentiating the product. There are lot of companies in the market, domestic and foreigners. The company is placing effort into encouraging competitor’s customers to switch, increasing usage per customers and converting the non-users into customers. Sales promotion may be effort to encourage retailers to give the product more shelf space over competing products. During the maturity stage, the primary goal is to maintain market share and extend the product life cycle. Marketing mix decision may include:
Product: Modifications are made and features are added in order to differentiate the product from competing products that may have been introduced. The Washing Machines and Spinners of the company are at maturity stage. Price: Possible price reductions in response to competition while avoiding a price war. Super Asia has set the prices of Washing Machines and Spinners at fare place. Place/ Distribution: New distribution channels and incentives to resellers in order to avoid losing shelf space. The company is distributing their products in a large and making the new dealers in the market. Promotion; Emphasis on differentiation and building of brand loyalty. Incentives to get the competitors’ customers to switch. The company is advertising a lot to attract the customers towards their products.
The product life cycle stage in which a product’s sales decline and market becomes saturated. The product becomes technologically obsolete or customer taste changes. If the product has developed brand loyalty, the profitability may be maintained longer. Such as the Washing Machines of Super Asia is making the profits a longer. Unit cost may increase with the declining production volumes and eventually no more profits can be made. During decline phase, the firm generally has three options: 51
Maintain the product in hopes that competitors will exit, reduce costs and find new uses of for the product. Harvest it, reducing making support and coasting along until no profit can be made. Discontinue the product when no more profit can be made or there is successor product. The marketing mix may be modified as follows: Product: The number of products in product line may be reduced. Air Conditioners and Oven of the company are at decline position. Price: Prices may be lowered to liquidate the inventory of discontinued products. Prices may be maintained for continued products serving a niche market. The company has lowered the prices of Air Conditioners and Ovens to make some share in the market. Place/ Distribution: Distribution become more selective, channels that no longer are profitable are phased out. The distributions of these products of the company are very low. Promotion: Expenditures are lower and aimed at reinforcing the brand image for continued products. The company is making lower advertising for these products but they should enhance the budget of these products to increase the market share.
CHAPTER NUMBER 5: CONCLUSION
Organizations exist when two or more people work towards achieving common goals. An organization can never be better than the people it hires. Hence we have to get the best to be the best because the performance of the employees reflects the company’s image and standing in the market. Out of the three M’s i.e. Man, Money & Machine, probably the human dimension is of the utmost importance. Hiring employees is not the sole objective rather the primary goal is to devise a tool that can help the organization attract, maintain, retain and motivate them enough to give their best to the organization. Training and development is therefore the first step towards success. Better the quality of the employees better the performance of the company. An organization’s ability to meet the training and development challenges provides an opportunity to make significant contribution to the company. With better quality people executing the company’s operations the HR department can create a competitive advantage for the company. Here in the end I want to sum up my report of internship in Super Asia in few words. Again I would like to say thanks to Super Asia and it all employees for providing such supportive environment of learning. I must say that my 6 weeks internship experience in Super Asia was a great learning time and I believe that it will be very helpful for me in future career.
During my internship in Super Asia I had chance to practically use my knowledge and skills which I have gained during my study as well as I gained and experienced different new skills on the job. It also helped to learn about the manufacturing sector working in Pakistan, its procedures and products and services. Here in the report I have tried my best to give very informative and useful details regarding my internship in Super Asia and I believe that by reading this one would agree
with me that gaining practical experience of what we learn in books is as important and useful as any other thing. I was fortunate enough to secure a position as an internee here and thereby able to do an in depth analysis of the working environment of this company from the inside and of the external environment
• I have realized that Super Asia is performing very well since sits inception. It is quite difficult to give suggestion to improve the working conditions of Super Asia MDS Ltd. As we know that nothing is perfect, there is always a room for improvement, so I have found during my internship can be made up taking into account the following suggestions. • Super Asia is also offering motorcycle with its brand name but during my internship period I came to know that there are a lot of complaints the company is facing from its motorcycle department. So the organization must improve the quality of its motorcycle in order to maintain its goodwill. • The organization is also in process of computerizing its records which is good sign but it is going on with small progress. Computerization must be done on early basis. This will help in increasing efficiency of work done, customer’s satisfaction decreases the stationary cost and resultantly it will increase profits. • In past Super Asia MDS Limited has always being suffered from bad Government policies. Government intervention should avoid completely. • Employees Training programmer must be introduced on continuous basis so that Employees have understanding with the latest developments especially with the customers.
Super Asia should introduced incentive plans for employees on regular basis so that if employees may work whole heartedly for the welfare of their organization. While giving incentives qualification, work, experience, hard work and such other factors must be considered.
Mismanagement of resources must be avoided as much as possible as it decreases profit but also discourage hard worker and honest employees.
Fresh graduates must be recruited. As the combination of Experienced and fresh can produce better results and it will improve the efficiency of management.
Company’s different schemes must be conveyed to the targeted customers so that to increase the share in market.
Management by objectives needs to be introduced immediately. It will help improve the functioning of the organization and will lead to greater participation and the workers and subordinates will be encouraged.
http://www.superasia.biz/about Google website manufacturing information Retrieved on December 30, 2008, en.wikipedia.org/wiki/manufacturing Google website methods of preparing report Retrieved on December 30, 2008, www.projects.ex.ac.uk/RDavies/arian/ http://www.quickmba.com/marketing/market-segmentation/ http://www.netmba.com/marketing/product/lifecycle/ http://tutor2u.net/business/strategy/bcg_box.htm Book Reference: Philip Kotler, Principles of Marketing, Prentice -Hall, 1980. Gary Armstrong joined as co-author in 1989
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