DEDICATION

This research is dedicated to my Parents, Teachers, and all those whose prayers have always paved the way to success. The ultimate dedication is towards those innocent people who died by suicide bomb blast in Pakistan before their time.

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ACKNOWLEDGEMENT
All praise to Almightily Allah and His last Prophet (PBUH) who have bestowed upon me Their blessing, which helps and enabled me to accomplish this research successfully. At the outset, I feel obliged to express my profound gratitude to my research supervisors Mr. Haroon, who has throughout the research work provided me with endless help, valuable guidance and encouragement. His expertise, experience and ability to open new vistas of knowledge have contributed much in meeting my educational quest. Beside I truly appreciate my friends and class fellows who have helped me immensely in making my research achievable and complete. Their support and guidance made this project possible.

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EXECUTIVE SUMMARY
Pakistan is a challenging country so it is facing a challenge of the foreign investment and the latest technology that has baldy struck the domestic market of Pakistan that is consisted of Gujrat, Gujranwala and Faisalabad and many other cities of Pakistan. Now a days Pakistan’s domestic manufacturers are facing lot of problems like their sales are declining, market share has been decreasing and above all customers are also decreasing. One of the industries is the Fan industry of Pakistan. This study is based on the problem “sale declining of fans”. The main purpose of this study is to identify the reasons of study and clear the dilemma of split units. In this research report the data gather from companies of fans in Pakistan are Wahid Industries, General Fan Company, Millat Industries and Super Asia Electronics. Theories of researchers like Niki Owen and Larsson H.J and others have also been used as reference and to study the problem literature. The data has been gathered through the questionnaires and interviews conducted from the customers, users of fans and the various shop owners. The results of data analysis are shown through graphs. The conclusion part of the research describes that what are the factors and reasons which influence sales of fans negatively and how dilemma of split units exists.

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Tables of Contents
CHAPTER-1
TABLES OF CONTENTS.....................................................................................................................................VII CHAPTER-1..............................................................................................................................................VII 1. INTRODUCTION .....................................................................................................................................1 1.1 FAN INDUSTRY: LOCAL AND EXPORT MARKETS......................................................................2 1.1.1 Raw material .................................................................................................................................3 1.1.2 Exports...........................................................................................................................................3 1.1.3 The main constraints hindering the growth of industry as well as export are:.............................4 TABLE –I: EXPORT OF FANS ...................................................................................................................6 TABLE –II: PARTS OF FANS EXPORTED ..............................................................................................6 1.2 INTRODUCTION OF COMPANIES ..................................................................................................7 1.2.1WAHID INDUSTRIES (PAK FANS)................................................................................................7 1.2.3 MILLAT INDUSTRIES ................................................................................................................14 1.2.4 SUPER ASIA ELECTRONICS INDUSTRIES .............................................................................16 1.2.5 PAK UNION FAN INDUSTRIES..................................................................................................17 1.2.6 SUPER INDUS ELECTRICAL INDUSTRIES.............................................................................19 1.2.7 OTHER FAN PRODUCING COMPANIES .................................................................................19 1.3. BROAD PROBLEM AREA ..............................................................................................................20 1.4 PURPOSE OF THE STUDY..............................................................................................................21 1.5 TYPE OF INVESTIGATION: ............................................................................................................21 1.6 EXTENT OF RESEARCH INTERFERENCE:..................................................................................22 1.7 RESEARCH OBJECTIVES ...............................................................................................................22 Primary objectives ...............................................................................................................................22 Secondary objectives ...........................................................................................................................22 1.8 SCOPE OF THE STUDY....................................................................................................................23 1.9 LIMITATIONS....................................................................................................................................23 1.10 PROBLEM DEFINITION.................................................................................................................24 2. LITERATURE REVIEW ........................................................................................................................25 2.1 NIKI OWEN ASPECTS .....................................................................................................................26 2.2 ADVERTISING MISTAKES .............................................................................................................27 2.3 SALES AND SALES SWITCH .........................................................................................................29 2.4 PRICE OF THE PRODUCT ...............................................................................................................31 2.5 IMAGE OF THE PRODUCT..............................................................................................................33 2.6 ADVERTISING OF THE PRODUCT.................................................................................................35 2.7 QUALITY OF THE PRODUCT.........................................................................................................37 2.8 COMPETITION OF THE PRODUCT................................................................................................39 2.9 EXTERNAL CAUSES .......................................................................................................................40 3. THEORETICAL FRAME WORK: .......................................................................................................45 3.1 BASIC FRAMEWORK..................................................................................................................................45 List Labels ....................................................................................................................................45 3.2 PRACTICAL INTERACTION OF VARIABLES ..............................................................................46 4. HYPOTHESIS DEVELOPMENT:.........................................................................................................47 5. RESEARCH METHODOLOGY............................................................................................................48 5.1 TYPE OF STUDY.......................................................................................................................................48 5.2 RESEARCH INSTRUMENTS...........................................................................................................................48

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5.3 RESPONDENTS OF THE STUDY.....................................................................................................................49 5.4 SAMPLING PROCEDURE..............................................................................................................................49 5.5 SUMMERY OF INTERVIEWS.........................................................................................................................50 6. CONCLUSION & RECOMMENDATION ..........................................................................................52 CONCLUSION..................................................................................................................................................52 RECOMMENDATIONS .......................................................................................................................................54 TABLES AND GRAPHS......................................................................................................................................56 REFERENCES ........................................................................................................................................62 APPENDICES...............................................................................................................................................64 QUESTIONNAIRE I (FOR CUSTOMERS) ................................................................................................................64 QUESTIONNAIRE II (FOR SHOP OWNERS) ............................................................................................................66

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1. INTRODUCTION
There is no doubt that Pakistan is a developing country and has a strong domestic market. For the last couple of years Pakistan’s economy has been increased in the world and has also becomes an identified challenging country. There are many factors that help Pakistan to become stronger in the world. The industry whether it is an education, sports or media Pakistan has never stop to progress and meet the upcoming challenges of the world. Pakistan’s another significant aspect that also boosts the economy of Pakistan is foreign investment that has been doubled for the last couple of years. The countries like Norway, U.A.E, Netherlands, Singapore, Japan and China has now become the most significant investors in Pakistan. The popular industries of investment are banking, telecom and home appliances (Foreign Direct Investment). As said, Pakistan is a challenging country so it is facing a challenge of the foreign investment and the latest technology that has baldy struck the domestic market of Pakistan that is consisted of Gujrat, Gujranwala and Faisalabad and many other cities of Pakistan. Now a days Pakistan’s domestic manufacturers are facing lot of problems like their sales are declining, market share has been decreasing and above all customers are also decreasing. One of the industries is the Fan industry of Pakistan. The people of Pakistan should know about the domestic market, so this study will help them to have a little view of a single domestic industry. This study is descriptive study that defines that various reasons of what has happened in domestic market that cause the trouble like this. Essentially, this study will provide the information like, customers behavior about the industry, what are the opinions of the shop owners? What are the reasons behind low sales? And how can sales be increased? Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 1

1.1 FAN INDUSTRY: LOCAL AND EXPORT MARKETS Fan is a daily use item. Its utility increases, especially in the summer season. The industry is producing about 5 to 6 millions fans per annum and meeting successfully the local as well as export demand. Out of the total production, approximately 30 percent fans consist of pedestals, 7 percent consist of brackets and remaining 63 percent are ceiling fans. The industry belongs to light engineering industry category, and is one of the industries that existed at the time of independence. In the early 1950s it was declared as cottage industry and its more than 50 percent units still fall in this category. Fan industry is mainly confined to Gujranwala and Gujrat, cities of Punjab province of Pakistan. The reason for its remaining a cottage industry is that majority of the units does not have full facilities of production under one roof. They usually give offers to the units having machines for different parts like fan guard, blade castings, core lamination etc. These units have lathes, shapers, milling machines, and power pressers, die casting machines and electroplating equipments. Therefore, most of the units are simply assembling units. Thus, they do not give brand names to their products. Besides small and medium units, a few units are quite large and have integrated system i.e. from motor winding to high-pressure dies castings. These companies have reputed brands names and the qualities of their products are of international level. The units are the main players in export field. The industry is producing a variety of products indifferent sizes and designs. The major products are: Ceiling, Pedestals, Table, Table-Cum-Pedestal Fans, Circumatic Fans, Wall Bracket, Exhaust Fans And Propellers. Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 2

The industry supplies quality products to the local markets, whether branded or unbranded, at competitive prices. About 400 units have a production capacity of 5 to 6 million fans, on single shift basis. The production is equal to demand, including a nominal quantity of exports. The actual production has remained about 2.5 million fans per annum, showing a 50 percent idle capacity. The demand for fan is continuously increasing due to increase in population and speedy migration towards a big cities, and exports. The other factor is that during the last few years, local demand for quality products is increasing fast as compared to low price goods. This means people are becoming quality conscious. 1.1.1 Raw material Moat of the raw material used by the fan industry are directly ort indirectly imported from different countries. Irregular and constrained supplies of some basic inputs are the main bottlenecks. Some of the raw materials used in the manufacturing of a fan are: electric steel sheets, aluminum, enameled copper wire, ball bearing, steel rod and PVC. Major fan producing countries are Japan, Korea Taiwan Hong Kong India and China. Japan is covering high quality market segment of fan market. Korea and Hong Kong are in middle segment of market while Pakistan India Taiwan and China are supplying comparatively low quality products at cheaper prices. 1.1.2 Exports Although fans exports have great potential, their exports are negligible. In 1992-93, only two hundred thousand fans were exported to only two countries, Iraq and Yemen. But now the industry is exporting fans to more than countries.

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The figures given in table-I indicate that although the exports of ceiling fan increased from RS 134 thousand to 209 million rupees, the trade is fluctuating a great deal. As against ceiling fans, the increase is pedestal fan export is quite stable i.e., continuously rising. Pakistan has also started exporting parts of fans. During the last four years, as shown in table II, the amount earned from export rose from RS 4.2 million to RS 107 million in 1998-01, but decreased to about fifty percent the very next year, 2001-02. However, in spite of big fluctuations, it is believed that if some bottlenecks are removed there is a big scope for enhancing the exports of fans. The situation is that from very the beginning, the government has not given any incentives to encourage fan industries., whatever progress the industry made, it has made on its own resources, and is due to its dedicated and hard working manufacturers and laborers. In spite of lack of proper training the industry ha innovated and uplifted the standard to the level where its products can compete in the world markets. 1.1.3 The main constraints hindering the growth of industry as well as export are: Ball bearing is an important part that ensures smooth running and noiseless working of an electric fan. Fan manufacturers are now importing this item because of smuggled ball bearings local units are not producing quality products. Thus, anti-smuggling measures should be taken to save the local industry, which in turn would ensure regular supply of ball bearing to fan industry at reasonable prices. In the meantime, the import duty on ball bearings should be rationalized.

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Like ball bearings, Electric Steel Sheet (ESS) is also a major item in fan manufacturing. It determines the quality, performance, durability and electric consumptions of a fan. However, due to ESS shortage and high prices, fan manufacturers are using Mild Steel Sheet (MSS). The motors manufactured from this material are not good quality and use more electricity. Prices of raw material are a major constraint in export. For instance, in some cases C & F prices of raw material in Pakistan are greater than C & F price of fans from India. Therefore, if the government really wants sot increases export of fan, custom duties on raw material should lowered to a reasonable level. There is an urgent need to establish a research department for innovation and to improve designs of fans according to the requirements of international buyers. Pakistan Standard Institute’s (PSI) procedure should be simplified and the latest technical laboratory should be set-up to test the fans. The PSI should establish its testing laboratory in the area where industry exists and test fans on two standards i.e., at local and international. The test reports should be given in a specific period. Further, an institute of labor training should immediately be established with the help of PEFM Association. The other measures to enhance the exports include organizing seminars, doing surveys of the foreign markets that would give the idea of how to export, where to export and what to export.

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Table –I: Export of fans Years 1998-99 1999-00 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 Table –II: Parts Of Fans Exported Years 2001-2002 2002-2003 2003-2004 2004-2005 Table –III: Fans Exporters by Type
(Millions RS)

Ceiling Pedestal (000 RS) 1341289 817621826 1863615137 255232432 1568966370 5925161554 208963183613

Millions 4.2 16.6 109.7 67.9

Fans Type Ceiling Fans Pedestal Fans Table Fans Exhaust Fans Other Fans Fan Blowers Other Fans N.S Total

2001-2002 2002-2003 2.6 32.4 1.1 0.1 2.9 24.0 3 45 15.7 66.4 -0.1 6.9 13.2 9.7 42

2003-2004 59.3 161.6 -0.1 5.1 0.7 5.3 232.1

2004-2005 208.9 183.6 0.9 -27.2 -2 422.6

2005-2006 90.3 150.8 0.8 ---20.1 --362

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Source: Federal Bureau of Statistics. 1.2 INTRODUCTION OF COMPANIES

1.2.1WAHID INDUSTRIES (PAK FANS) Mission To enhance its reputation its reputation for quality in all its operation, providing a better quality product to the customers and make their satisfaction through which to maximize the business profit. Company profile Wahid Industry was setup in Gujrat as a modest manufacturing unit in 1936. It started its operation with the manufacturing of light engineering and utility goods. In 1945, for the first time in this region, the company embarked on the manufacturing of electric fans. It is a pioneering achievement of Mr. Abdul Wahid, the founder and lifetime chairman of the company. He simply took it as a challenge, undeterred by the attendant initial difficulties. His determined efforts were finally crowned with success. The project not only tool off under his dynamic policies but also register a phase of rapid growth and expansion, capturing a major share in the country’s markets. Thanks to the founder Presidents dictum, “no compromise on quality”, Pak fan today is not only synonymous with top quality fans but also an identified symbol for Wahid industries. Towards making Wahid industries limited, a self-reliant concern a modern automatic Japanese plant was installed in 1981. At this plant, we manufactured international quality enameled copper wire and marked under the brand name if Pak Super. This brand has taken a major share in local market. So the company is adopting those methods of production and quality control, which conform to meet international standards. Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 7

The company has now its own facilities for accurate testing on the most modern and sensitive testing equipment. Every product is subjected to the most rigid test and eaves the factory only when it is finally “passed” by the experts. True to the company’s progressive business philosophy. Mian Ehsanullah, the director and son of founder president Mr. Abdul Wahid, is always on the look out for the world’s latest technologies to adopt and assimilate in the production of Pak fan. His father motto, “no compromise no quality” is a creed for Mian Ehsanullah, which he adheres to most strictly. To live up to its progressive image the company keeps itself a breast of the latest technological developments around the world and this enables the company to continually introduce ever-new concepts in electric fans. The remote controlled and louver fans are quite recent examples. As a result of its innovative excellence and ever evolving technological processes, Pak fan remain the number choice- both at home and abroad, including the Middle East. In year 1999-2000 Pak fan achieved the highest international quality award ISO 9002 certified company. Pak fan also won the FPCCI trophy 1999-2000 and now Pak fan is the largest exporter and manufacturer and electric fans of Pakistan. Towards its role as a deposable corporate citizen, Wahid industries keeps on and encouraging and contributing to social uplift programs. The company runs a modern hospital named “Wahid Trust Hospital” equipped with the latest facilities and leading medical practitioners. “Pak fan is the name of durability and reliability”

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Future Planning PAK FAN is very eager to improve its business activities, so far more improvement of quality assurance. In near future organization is interested in increasing its business area and wants to capture more market that it already has but not fully captured. This is why the management is keen to introduce the new iron under the name of Pak Iron Industry.
Address WAHID INDUSTRIES PRIVATE LIMITED

G.T Road Gujrat, Pakistan Telephone +92-053-352528

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1.2.2 GENERAL FAN COMPANY (G.F.C Fans) Mission The mission of G.F.C. FANS is to produce such quality products which provide entire satisfaction to all our customers the world over. Vision The management and the workers of GFC FANS have a vision to supply in near future all types of electric fans to all the countries of the world where fans are being used. We see ourselves as one of the largest and most renowned fan manufacturing company in the world providing all types of fans to all the countries according to their required specifications and needs. Our vision is to enlarge our market from the present day Middle East to whole of Africa, Europe, and America including South America, Central America and Caribbean. We believe that we have a unique product, which has been developed by GFC, and no other country manufactures a pedestal fan like ours. This product is most useful in the hot tropical humid climates. We want to mark this product throughout the world and we foresee this product to dominate the entire International market. We want to set up an excellent after-sales-service and spare parts supply service to each and every country. We also want to set up home service centers throughout the world. We believe that within 10 years we can achieve an export target of US Dollars 40 Million. About company General Fan Company (Pvt.) Ltd. was formed in 1954 as a small manufacturing unit for electric fans. The company grew rapidly from its modest start because of the quality of its products. The company was one of the major exporters of fans in 1960's to Iraq. However, the company was in trouble in late 1970's due to differences in its partners. The present management took over the company in 1978 and Engineer Muhammad Ilyas took over as Chief Executive of the company. Under his dynamic leadership the company rew Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 10

rapidly and G.F.C. became major recognized brand for fans in the Pakistani market. Mr. Muhammad Ilyas, the Chief Executive who is a foreign trained Electrical Engineer, brought in new technologies for fan manufacturing from developed countries and improved G.F.C. products in a continuous process. Automatic Capstan Lathe Machines and Die Casting Machines were introduced in 1982. Automatic Winding Machines were brought from Taiwan in 1985. A Japanese made modern Enameled Wire Manufacturing Plant was installed in 1987 for the manufacturing of quality enameled copper wire for own consumption as well as for the sale in the local market. Plastic Injection Molding Machines were installed in 1993 to manufacture own plastic parts for plastic fans like Exhaust Fans, Bracket Fans, Circumatic Fans and Table Fans. A modern tool room was set up for the manufacture of Dies, Molds and Models etc. The tool room consists of Wire Cut Machines, EDM Machines, Surface Grinders, Cylindrical Grinder, Shaper Machines, CNC Milling Machines and Copy Milling Machines. Automatic Rotor Balancing Machines were introduced in 1995 to further improve the quality of fans. Modern Continuous Stamping Presses were installed in 1997 for manufacture of motors of all type of fans such as Ceiling, Pedestal, Bracket, Exhaust and Circumatic Fans etc. Slitter Machine for slitting the electrical steel sheet coils was installed in 1999. The company started manufacturing Washing Machines in 1996. Due to its quality and excellent finish the product has become an instant success. Gas & Electric Geysers are being manufactured since year 2000. The Chief Executive Mr. Muhammad Ilyas is a pioneer in the export of electric fans from Pakistan. To initiate the export from Pakistan he attended an International exhibition for electrical appliances in 1993 in Abu-Dhabi. The company also participated In many trade delegations as well as exhibitions arranged by Export Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 11

Promotion Bureau and Federation of Chamber of Commerce & Industry In Bangladesh, Yemen, Saudi Arabia, Dubai, Bahrain. Qatar, Sudan, Egypt, U.S.A. etc. G.F.C. was the first Pakistani company to export fans to the Middle East. G.F.C. Fans became an instant success due to their quality and durability in all the markets where these were introduced. General Fan Company has also set up a unit to manufacture capacitors used in electric fans, Washing machines and motors. Mr. Muhammad Ilyas (Chief Executive) and Mr. Muhammad Ijaz (Finance Director) are always on the look out for the latest technology for manufacturing of electric fans as well as for corporate management of the company. Now G.F.C. has established a new Computer department which keep its Executives update about any inquires. This shows the interest of management not only in manufacturing technology, but they also know the importance of information technology. G.F.C. has stepped in this Millennium fully equipped with manufacturing and information technology for Corporate Management and Marketing. G.F.C can rightly claim that they have all the best technologies in its workshops and in office, which are available for Design. Production and Management. Our products are now of International Standard, and we are truly an International Company. Our 600 Employees and Management are committed to Excellence in Quality. Credentials General Fan Company (Pvt) Ltd. is a pioneer in the export of electric fans from Pakistan. To initiate the export from Pakistan we participated in International exhibition for electrical appliances in 1993 in Abu-Dhabi. The company also participated in many trade delegations as well as exhibitions arranged by Export Promotion Bureau and Federation of Chamber of Commerce & Industry In Bangladesh, Yemen, Saudi Arabia, Dubai, Bahrain. Qatar, Sudan, Egypt, U.S.A. etc. G.F.C. was the first Pakistani company to Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 12

export fans to the Middle East. G.F.C. Fans became an instant success due to their quality and durability in all the markets where these were introduced.

By the grace of God, • G.F.C. has been getting the Export Trophy from FPCCI for the export of electric fans for many years. The growth rate of fan export from G.F.C. has been continuously more than 100% per annum for the last 5 years. • 1/3rd of the total fans exported from Pakistan are G.F.C. Fans. G.F.C. has large International orders many times more than the previous years for the financial year 2001-2002 and we are looking forward to export fans to all parts of the world including United States and Europe. • Water and Power development authority has issued the renewal of Registration in 1997. Registration Renewal is an honorable success that G.F.C. has achieved. • ISO-9002 Certificate assures that Manufacturing Quality of Electric Fans are according to International Standards. • Engineer in Chief Branch has given the certificate of Enlistment/Registration dated: 23-2-2000 on best technical performance. • Contract agreement for supply of G.F.C. Fans for "Army Housing Directorate" at 30 April 2001 and is a big achievement for G.F.C. Fans. • Pakistan Standard Institution has certified according to 1961 ordinance. The institution hereby grants to G.F.C. Fans. (Hereinafter called "the License") this License is used as standard mark.

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1.2.3 MILLAT INDUSTRIES Five decades now MILLAT has undoubtedly been a household name when it comes to the premier quality fans, thus making it the technology of this century. The third generation is now relishing the superb quality of its products after the two cherished it in their lifetime. The company came into operation in 1947 and became the pioneer company in manufacturing of fans. Initially the company started at a small manufacturing facility in the heart of Karachi at Lawrence Road. Due to its commitment to superior quality and innovative designs, Millat quickly became the market leader among the breed of brands. With increase in customer demand the company moved from Lawrence Road to its premises in site in 1960’s. From then on the company enjoyed a healthy market share and remained on the path of success due to its through commitment in producing quality products. With this addition of products, HM Esmail & Co now has a variety of electrical products to offer. The management of HM Esmail & Co has added same new designs in the areas of ceilings, bracket and ventilation fans along with the existing range including the everlasting ceiling, table, pedestal, wall and bracket fans and a full range of plastic models with innovative and elegant designs.
MILLAT FAN AS A BRAND

Millat Fans is engaged in the manufacture and export of all kinds of fans for consumer and industrial as well as export applications. Our Products We started with a big capacity of fans per annum and during a span of a decade, the company established itself among the top manufacturers in Pakistan. At present, Millat has been using latest technology, production machines and testing facilities with the Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 14

installed capacity of fans per annum. The products are manufactured in line with Pakistan as well as international standards. The Certifications...we have Our products are ISI marked and also approved by apex test houses. The company is amongst the biggest suppliers to Undertakings and large industrial houses. Our Quality Control We follow strict quality control at each and every step right from procurement of raw materials to in process goods. Each & every belt is checked and passed by our expert team of QC department before being sent to the finished goods store. Services We have a fully equipped technical department to cater to the various needs of the customer. We fully assist you in designing & modifying your belt pulley drive arrangements. In case you face any kind of belt failure problem our service engineer promptly attends to rectify faults at your end. Up gradation is a continuous process in our factory & we take regular feedback from customers to improve on our quality Factory Address: Phone: Head Office: Phone: Fax: E1-B S.I.T.E Korti, Sindh. (0221) 870473 Madina City Mall 6th Floor Sb-5 Abduallah Haroon Road Saddar, Karchi. +92-21-5683717 +92-21-5687524 +92-21-568820

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1.2.4 SUPER ASIA ELECTRONICS INDUSTRIES Super Asia is engaged in producing top order home appliances in South Asia. Recognition of its achievements in quality products is 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, Circumatic 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, Bangladesh, 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 Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 16

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. 1.2.5 PAK UNION FAN INDUSTRIES Goal of the company Our goal is to provide you with useful information about our company that we hope make it easier for you to do business with us. Company Profile Established in1980, manufacturer of ELECTRIC fans in Pakistan in the brand name of Super Sonic, in different designs and sizes. It includes special varieties of ceiling, pedestal, exhaust, bracket fans, table and which display their professional expertise, skill and are equally renowned locally and abroad. As a corporate policy we believe in providing best of services to our clients with correct information. Our extra friendly activities keep our members and dealers cheerful and always ready to provide a helping hand.20 years in export now also available in Pakistan

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Our ethics: We believe in ourselves and saying is doing. Our Clients: We export our products to Bangladesh, Sri Lanka, Singapore, Dubai, Saudi Arabia, South Africa, Nigeria, and Pakistan.We have metal the above quality certifications criteria due to our highly qualified, experienced and devoted operational staff under the supervision of professionals, supervisors& inspectors under secure working environments. We are producing environmental friendly and energy saving products Service: It begins and ends with caring, we are for you, fastest, innovative and always with a vision of future services today. We can develop design according to the requirement of our clients. Values: Our workers are skillfully trained and great emphasis is on attitude and workmanship. Company Name: Address: Products/Services We Offer: Business Type: Geographic Markets: No. of Employees: Annual Sales Range (USD): Year Established: Pak Union Fan Industries. 83, G.T. road, Lahore, punjab, Pakistan We are manufacturer of all kind of Fans like Ceiling Fans, Pedestal Fans, Bracket Fans and Exaust Fans Manufacturer Worldwide 101 - 500 People US$2.5 Million - US$5 Million 1980

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1.2.6 SUPER INDUS ELECTRICAL INDUSTRIES Super Indus electrical industries is a largest manufacturer of home appliances such as fans of all types and sizes, washing machines, room coolers, gas appliances. Super Indus electrical industry is working in Pakistan from last 35 years. We export our products to Bangladesh and Middle East countries since 15 years. Our motto is to provide excellent services to our customers. Company Name: Address: Super Indus Electrical Industries 58-A Small Industrial Estate No.1, Gujranwala, Punjab, Pakistan Ceiling Fans, Pedestal Fans, Stand Fans, Wall Fans And Exhaust Fans, Washing Machine, Dryer Machines, Room Air Coolers, Gas Stoves, Cooking Ranges, Gas And Electric Water Heaters, Room Heaters Fan, Washing Machine , Gas Cooker, Range, Stove , Water Heater / Manufacturer Mid East 101 - 500 People US$1 Million - US$2.5 Million our customers satisfaction is our certificate 1970 CEO

Products/Services We Offer:

Business Type/ Industry Focus: Geographic Markets: No. of Employees: Annual Sales Range (USD): Certificates: Year Established: Legal Representative/CEO:

1.2.7 OTHER FAN PRODUCING COMPANIES Pakistan Fan Consortium Golden Star Fans Pak Punjab Fans Global Technologies Vision Enterprises Sevendays Ace Electrical Appliances Amin Industrial Corporation Pioneer Industries Falcon Enterprises

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1.3. BROAD PROBLEM AREA In today’s highly competitive environments, improving sales has become a strong and difficult challenge of the marketers. There are many factors in the customer’s mind that makes sale to happen. Customers make purchase for the particular product because they have the need that is to b fulfilled. The decision behind of choosing a particular product for that is been a direct challenge for the marketers to understand the customers. This study revolves around the similar kind of situation in which the sales of particular product i.e., FAN has been declined. It occurs because the consumer perceives that the other fan product offers the right product features, image, or level of quality at the right price or may be the substitute is available like Split AC. This study answers such questions that make the sales of fans to decline. The most essential questions that has to be answered by this study are: • • • • • Up to what extent introduction of split units hits the sale of fans? The common dilemma, is it really the split units that cause trouble for fans? Whether the quality of fans has been declined or not? Does competition plays role in making low sales for the particular organization? Up to what extent the unawareness of customer about local industries is behind the low sales of fans? • Will advertisement increase and overcome the problem?

There are no easy answers to these questions, yet they trouble marketers in their day-today running of organizations plans and the future of both company and their selves. The reality behind sales decision is that the level of mind of customers and what motivates Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 20

customers is still a big problem for marketers and researchers. In this modern era, most of the product facing high competition and affecting constantly from their competitors in diverse ways, this need to be identified seriously. 1.4 PURPOSE OF THE STUDY This study will investigate the different factors and their influences on sales. it is also important to understand the characteristics of "problematic" competitors’ attitudes and behaviors that may lead to difficulties in making sales higer. This study will explore the customer’s perceptions illustrates the need for more research on customer’s perceptions about sales and for programs that make customers aware of product information as well as their actual influence. The aim of this research is to characterize and find out the different reasons that causes the sales of fans to fall. This study also tells the opinion of shop owners and customers about the domestic market of Pakistan. Some of the people of Paksitan still feels that in paksitan quality of products is igored so this also surved a good purpose. Finally, the most important and highly appreciated purpose of this study is to ellaborate the dilemma of split units that they cause the sales of fan to decreased. 1.5 TYPE OF INVESTIGATION: As in the course of my research I am interested for identification of some important factors associated with the problem so my study lies in the field of co-relational study where I would like to explain the extent of impact of variables on the customers ratio. The study under consideration is descriptive in nature where the characteristics of the variables of interest will be described for better understanding the underlying phenomenon of sales and customers ratio. In the present case the independent variables

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are Competitors’, Price, Quality, Availability and Reliability. While the dependent variable is Customers Ratio and Moderating Variable is Advertising. 1.6 EXTENT OF RESEARCH INTERFERENCE: From the Type of investigation it is evident that I am conducting a co-relational study. So my interest lies on the Customers and shop owners from where I would collect data through questionnaire and interviewing and would not affect the normal life of the target group so my research would be with minimal interference. 1.7 RESEARCH OBJECTIVES Cooper and Schindler (2001:95) say research objectives should address the purpose of the investigation. The objectives can be stated as research questions. In this study, there are primary and secondary objectives. Primary objectives • • • To know about the fan industry To find out customers’ behavior about the fan industry To know the opinion of existing customers about product, price, quality, availability, attitude of dealers, goodwill, and competitors and advertisement of companies product. • • To find out whether quality of fans is improved or not To find out whether price matches with the quality

Secondary objectives • • To make recommendations that will lead to increased the sales and customer ratio To learn apply and excel all researcher experience Page 22

Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq

1.8 SCOPE OF THE STUDY This study is mainly focusing on the customers, both salaried and businessmen of Rawalpindi. Moreover, the goal of this research is to describe the impact of split units on fans sales and the overall industry review. The analysis within this study will be based on both businessmen and salaried. Respondents belong to the upper-middle class, middlemiddle class and low class. The age group is above twenty-five years. 1.9 LIMITATIONS  The scope of this study is limited to only to business area and citizens of Rawalpindi.  The researcher does not possess any prior experience in this particular field and therefore this limited experience maybe a binding factor of consideration. • Moreover due to limited funds the researcher is faced with mobility problems and that is why the scope is restricted to Rawalpindi only. • To add to this there is a time restriction on this research and so a more comprehensive study cannot be undertaken. • Respondents may not be honest while giving interviews and filling the questionnaire, that is giving a false or biased picture. • The researcher may not be able to create a perfect questionnaire covering all the important aspects of the study. Where on the one hand, too many questions may result in the respondent losing interest and too few may not cover every feature of the research.

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1.10 PROBLEM DEFINITION In the prevailing competitive environment the products are facing severe competition and are influenced by the competitors and substitute products in different ways that require to be identified clearly so that appropriate measures can be taken by the marketers to sustain the customer ratio for a long time. In order to find out the factors, which influence the brand loyalty so, the problem statement is given as below: “How sales of fans have been declined and what is the impact of split units on sales of fans?” OR “Why the customer’s ratio has been declined?”

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2. LITERATURE REVIEW
In this section a broad review of literature that is connected to the problem will be performed. The literature will cover areas linked to reasons and outcomes to give a general idea of what has been previously studied by other researchers. Also, this part will provide a foundation for the analysis. There are number of researchers who provide the reasons and causes of sales declining. In their research they have proved how different factors affect the sales and force it to fall. The major threat to domestic manufacture is international manufacturers but besides that there are man other major threats who cause low sales. Those factors depend upon the type of product of course but there are exceptions, which mean some of the factors influence sales regardless of the type of the product. Researcher called those factors major threat and problems and they recommend marketers to observe and study those factors before entering in the market. According to Niki Owen (expert in the field of sales training and sales management training development), following are the main factors which influence sales in negative manner: • • • • • Price Substitute product Quality Competitors Unawareness

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2.1 NIKI OWEN ASPECTS Niki Owen is a very modern and innovative guru in the field of sales training and sales management training development. She has developed a remarkable sales training and sales development system – Sales Activator® which helps to increase sales. She has also provided some basic reasons other than above that causes downfall in sales. In her sales research findings particularly in manufacturing concerns, she has discovered four key aspects of successful selling and according to her, their absence will causes sale declining. Those four aspects are: • A well defined sales process

Metaphor: The little three pigs. “Then I will huff and I will puff and I will blow your house down!” Poorly defined sales process always dilutes sales revenue. In other words, a well-defined sales process increases sales revenues. • A well defined target market

Metaphor: Goldilocks and the three bears. “Whose been sitting in my chair- and broken it into pieces” If the product is not targeting the right audience it can never be successful and unable to generate sales. A product that is targeted to wrong area and unconcerned people can easily destroy all the resources of producer. A target is necessary for the sales as income for the business. A good target market not only enhances the sales but also helps to introduce new products. • A well-defined promotional campaign Page 26

Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq

Metaphor: the elves and the shoemaker. “Although he worked hard times were bad and he became very poor.” The product is very good and according to the needs of the consumer but how it can generate sales if its awareness in target market in zero which means no one knows that there is a product of their demand .a good promotion increases the sales volume and market share. • A well described benefits

Metaphor: the ugly Ducking. Why, I’ m a swan!” If product is not beneficial and does not meet the requirement of the consumer it cannot be successful in the market thus the result would be no sales .the product should speak the benefits itself. 2.2 ADVERTISING MISTAKES One of the marketing source website describes promotion is a key aspect in the marking sales and also a key reason of declining sales. The website describe that sometimes promotion itself became the reason of sales declining due to ineffective promotion. The article by Bob Leduc on the website gives 5 common advertising mistakes which affect the sales negatively. These 5 common advertising mistakes cause you to lose sales. But you can easily avoid these mistakes once you become aware of them. • Stop and go advertising

Many businesses reduce their advertising when they are getting plenty of sales. Then they increase their advertising when sales decline. This pattern of stop and go advertising creates a repeating cycle of high sales volume and low and sales volume. it also prevents the business from growing. Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 27

Develop and follow a plan of regularly scheduled advertising regardless of your sales volume. Continuous advertising produces steady growth. It also reduces the time you have to spend on making advertising decisions. • One shot advertising

Businessmen often devote al of their advertising efforts to attracting new customers. But they devote little or no effort to cultivating theses prospects for further sales. Most prospective customers will not buy the first time they hear or see your sales message. But many will buy later if you follow up with them. Your follow up can be a simple as contacting them periodically with a new offer. TIP: Customers are prospects too. Stay in contact with them. Find or develop other products or services you can offer them. It’s easier to make a sale to a previous customer than to someone who never bought from you. • Copycat advertising

Businesses often copy their competitors advertising ideas. This can be effective for a short time. But results quickly decline as more and more competitors copy the same idea. Instead of copying your competitors advertising ideas, improve on them. Create something better – something your competitors cannot copy. For example, give your customers a reason to buy from you instead of form a competitor. This can be as simple as including a unique bonus only you can offer – or providing the personal attention your competitors are not willing or able to provide. • Scatter shot advertising

Many businesses got poor result from their advertising because they reach too many prospects with little or no interest in what they are selling. This often occurs because they Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 28

choose the cheapest advertising instead of looking for low cost targeted advertising. Take some time to research and plan your advertising efforts. Look for ways you can reach concentrations of prospects likely to be interested in your product or services. TIP: Look for alternative media your competition may be overlooking. For example, many online marketers have started using direct mail postcards to generate traffic to their websites. It’s a low cost way to bypass the heavy competition online. • Self focused advertising.

Advertisers often promote facts about themselves or their products in their advertising. But facts don’t sell. Benefits sell. For example, which of the following has more impact? 1. “We provide complete marketing services for starting your own business” 2. “No more time clock. Work when you want. Take long vacations” The first focuses on the company and describe the services it provides. It’s boring and unattractive. The second focuses on the benefit provided by that service. It attracts attention and creates excitement – and generates more sales. These 5 common advertising mistakes cause you to lose sales. How many are you making? Apply the information revealed in this article to avoid these mistakes – and maximize the result you get from your advertising efforts. 2.3 SALES AND SALES SWITCH Marketers define the term sale as “final decision by customer to purchase a product”. The phenomenon sales before occurring pass through the number of processes in the mind of the customers. Customers have many things running in their mind and when a need or want about particular thing arises this is the time when customers desires about something and eventually search for the completion of it. When the customer goes out for Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 29

the need fulfillment and search for the product, there should be some product that realizes him that it is the one he is searching for. The decision of making purchase comes to happen when customers make the decision of the right product to satisfy the need and he buys it. The phenomenon attraction also exists when there is more one product available for the need fulfillment. It is the time where customer gets confused. In this situation customer buys that product about which he has heard or listened through friend or any promotional medium. Thus, making sales totally depends upon the decision of the customers unless the marketers do something to grab their attention towards their product through promotion or something beneficial. The researchers have defined sales through following equation. Sales=Product + Desire benefits + Decision (Lassar, Mittal and Sharma 1995). The equation states that customer makes sale only when he sees a desired benefits in the product that will satisfy his need than he makes a final decision of purchasing it. The better the benefits offered the higher the sales of the product. Inversely, sometimes customers are dissatisfied by the product and they want to switch their purchase to another available product for satisfy their need. This situation happens when need is not satisfied by the product and another product is available which makes the customer curios and resulting a sales switch to that particular product. Customer switch= dissatisfaction + substitute product + curiosity + decision When this sort of unwanted situation occurs in the external environment of the organizations, the ultimate result is the declining of the customers ratio or sales declining or market share losing.

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2.4 PRICE OF THE PRODUCT In many countries, price is always been a key problem for the marketers to cope. As customers are human and very curious and difficult to understand, marketers sometimes get confused about setting the price according to quality or according to the market. The companies around the globe have now become customers oriented and when a company becomes customer focused, everything starts to look different. That is because everything in a business can be viewed from a customer perspective. For this reason good customer satisfaction and loyalty programs span the entire organization. The different effects observed in previous studies lead one to consider whether other variables could act to moderate these effects. The present study is to point out such variables moderating the effects of price promotions among competitors. It is suggested that the particular effects of price promotions depend on the image of the promotional brand, as well as consumers’ loyalty status. (Kocas, 2005; Shor and Oliver, 2006) Furthermore, this effect is expected to be moderated by consumers’ loyalty status. High loyalty consumers who are more affectively and cognitively affiliated with a brand are more sensitive to the compatibility between price incentive and brand image than low loyalty consumers and also if the more customers are loyal to then brand the customer ratio or market share will tend to increase in return. For prestigious brands, using price incentives to promote prestigious brands can damage the exclusive status of the brand in high loyalty consumers’ minds. Thus price incentive is expected to have a negative effect on high loyalty consumers’ brand affect for a prestigious brand. For low loyalty consumers of a prestigious brand whose affiliation with the prestigious brand is weaker than that of high loyalty consumers, they are less sensitive to the incompatibility between the incentive and the brand image. Therefore, Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 31

price incentive should have a weaker impact on low loyalty consumers than on high loyalty consumers of the prestigious brand. (Yung-Cheng Shen, 2005) The situation is different for non-prestigious brands. As price advantage is often an important reason for consumers to purchase non-prestigious brands, price incentive is expected to be more compatible with the image of a non-prestigious brand than with a prestigious brand. “Moreover, for high loyalty consumers who buy non-prestigious brands for the reason of price advantage, they tend to regard price advantage as an important brand benefit. Hence price incentive would have a positive effect on the brand affect of high loyalty consumers. In contrast, for low loyalty consumers who are less sensitive to the compatibility issue, price incentive is expected to have weaker impact on their brand affect than on high loyalty consumers for a non-prestigious brand”. (Allenby et al., 2004; Dawes, 2004; Tauras et al., 2006), Nonetheless, evidence arguing otherwise also exists. Neslin and Shoemaker (1989) pointed out that the negative relationship between incentive and repurchase probability on the aggregate level could result from the way the data were aggregated. They demonstrated that it was possible to observe a decrease in aggregate repurchase probability due to promotion even if individual levels repurchase probability remained the same. Moreover, Davis et al. (1992) conducted a field experiment and found that price incentives did not have negative impacts on consumers’ brand evaluations. They used price incentives to promote four grocery items for 4 months, and compared consumers’ brand attitudes before and after the promotions. No negative change in brand evaluations was found in their study. Finally, Ehrenberg et al. (1994) also found no difference in sales volume or repeat purchase behavior due to price promotions. Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 32

Therefore, although there was evidence supporting a negative effect of price incentives on consumers’ brand evaluations, evidence indicating different directions of effects was also found. 2.5 IMAGE OF THE PRODUCT Here comes the way one presents one’s product or services this is called the Image. “Effective image results in a loyalty of the customers and brands as well. Three mandates that support it include knowing customers, aligning the corporate resources to deliver the desired results and monitoring the impact and effectiveness of the image and the changes in the marketplace. Organizations try to plan to create customer loyalty for their products or services. To get profits the loyalty should be on the foundation of the brand image.” (Roberts, Helen, 2000). The consumer needs to pampered these days because this is how is forced to come back to you. If you will not deal with him or her the way they expected then they will never come back to you. “The customers are required to attach emotionally to a brand. Many companies, now days are emphasizing on this issue. Building up relationships and making customers come back is part of strategy these days. Customers are convinced that they are getting for what they pay. Now a days rather than targeting the mass market, the emphasis is on establishing valued emotional relationships with individuals.” (Walton, Thomas, 2001). If the customer is attached to a brand once he will never go unless he feels that he is not getting the same from the product or the selling person. “It is clear that brands begin and end with people, and that companies suffer for lack of deep knowledge of the end customer-how she thinks, perceives, and acts within a natural cultural context. Confusion, faulty assumptions, and bad decisions are the natural consequence of that information deficit. (Bill Vernick, Knowing Your Customer, vol6, Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 33

p54, 2001). In the current time almost of all the businesses provide solutions online and try too show their brands on line and creat better image in the consumer’s mind as well. This has very serious concern with the brand loyalty and the position of a brand in the mind of the consumer. It can bring either positive or negative impact but mostly it is positive. “The customer who is prepared to pay a substantial premium for consumer electronics but who discovers, upon visiting a company website, that brand images take an interminably long time to build-or that crowded pages and unclear navigation make it next to impossible to locate a brand image. Both cases would severely undermine this customer's confidence in the brand and his or her motivation to purchase. (Jackson, 2002) Marketers have long courted consumers based on the age, gender, culture and attitudes that brand loyalties are formed early in life and dictate our purchases at retail for decades to come. The image we get, the loyal we are, marketers have assumed. Consumers have the exclusive on being open-minded about brands, right?( Christina, 2001). In some categories, that are true, according to recent Roper surreys, but on the whole, the relationship between brand loyalty and image has been vastly overstated. In reality, it is not one's brand that dictates consumer choice, but rather one's image. And image teaches us not just to become "creatures of habit." Instead, we also learn to ask the right questions and look for proof of claims; it enables us to examine life from a broader perspective. Sometimes brand image makes us more loyaly. (Carolyn Setlow, 2002). Moreover, customers ratio varies more by category than by image, depending on such factors as the number of brands in a category, the range of price points and the real/perceived differences among brands (Gale Group, 2002) Just as consumers in many categories

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remain open-minded about brands, marketers must remain open-minded about consumers and the opportunity to attract them, at all ages, to brands. Differentiating between the brand triggers such as a brand name, a distinctive logo or even a distinctive product design and image (i.e. the shape of a BMW), or a color scheme (BP) etc. and the brand associations (brand image) triggered by them is a first step to understanding what makes good brand management. Since these triggers are learned and often loved - by consumers, they have to be kept consistent over time. If brand triggers change suddenly, the access to the associations stored in the mind can get irritated. Consumers ask themselves, "Is this really still the same product?" A suddenly changed brand trigger can cost millions of hard-earned brand-equity dollars and ruin brand profits by throwing consumers back into a search mode. (Guenther MuellerHeumann, 2000) 2.6 ADVERTISING OF THE PRODUCT Significant amounts of money are spent every year on advertising. Noticeably, in many advertising-intensive markets the products are nearly homogenous. This suggests that advertising could be used to redistribute buyers amongst sellers and not (only) to increase demand. Scherer and Ross (1990) note: “double-blind experiments have repeatedly demonstrated that consumers cannot consistently distinguish premium from popularpriced beer brands, but exhibit definite preferences for the premium brands when labels are affixed-correctly or not”. Many advertising campaigns have rather an emotional content and try to attract consumers by associating the product with attitudes or feelings that have no relevant relationship to the brand or its consumption. Commenting on Chevrolet’s 1988 Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 35

“Heartbeat of America” TV ads for automobiles, G.M.’s advertising executive Sean Fitzpatrick observed that they “may look disorganized, but every detail is cold-heartedly calculated. People see the scenes they want to identify with. [...] It’s not verbal. It’s not rational. It’s emotional, just the way people buy cars” (see Scherer and Ross 1990 p. 573, originally from “On the Road again, with a Passion”, New York Times October 10th, 1988.) Persuasive advertising could be a way to influence such customers to a brand and categorization through mental associations. Pepsi’s 1997 GeneratioNext campaign defines itself as being “about everything that is young and fresh, a celebration of the creative spirit. It is about the kind of attitude that challenges the norm with new ideas, at every step of the way”. Advertising contributes towards loyalty prevailing in consumer’s mind about a specific brand. Referring to the new trends in television advertising, James Twitchell, Professor of advertising at the University of Florida, noted that “Advertising is becoming art. You don’t need it, but it’s fun to look at” (see Herald Tribune, January 10, 2003). Loewenstein (2001) remarks “while conventional models of decision making can make sense of advertisements that provide information about Brands (whether informative or misleading), much advertising- for example, depicting happy, attractive friends drinking Coca-Cola seem to have little informational content. Instead such advertising seems to be intended to create mental associations and brand loyalty that operate in both directions, causing one to think that one should be drinking Coca-Cola if one is with friends (by evoking a choice heuristic) and to infer one that one must be having fun if one is drinking Coca-Cola (playing on the difficulty of evaluating one’s hedonic state).” See also Camerer et al. Advertising results in the creation of loyal consumer groups attached to the Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 36

firms and on the other it also creates the brand loyalty among customers, persuasive advertising may be used to relax price competition (Ugur Akgun, Ramon Caminal, Xavier, 2003) Remember that you owe your insight to the consumer, who should always drive your efforts. If you get off track and the consumers tell you, you must listen. This is the reason you have to keep checking with them, to make sure you have stayed true to their original guidance. Simply listen to consumers, because it's the best way to improve any new product, advertising, marketing, and packaging. Jack Gordon (AcuPOLL); Bill Vernick and Bob Sukys (BrandMine, 2003). Being a brand loyal in the current scenario is very difficult because of variety of substitutes and bombardment of adds. This makes a consumer confuse about the selection of a product and remembering the actual product. This is not only for expensive or big products but for all. So if a company comes with a poor strategy to introduce a product or enter in market it fails. So to make a product a success preference is set which results in the creating brand loyalty. “For understanding of brand preference first thing is communication, because this is how we perceive or actually know things so it plays important role in building brand loyalty. The second thing is to know true and false brand loyalty. It is also very important to know the way the marketers uses our sense to position the product in our minds.” (Bill Nissim, 2004) 2.7 QUALITY OF THE PRODUCT In the information age an organization’s most valuable assets are intangible (Jensen ; 1999 Doyle, 2000 ; Mouritsen 2000) and the more valuable assets include brands and their reputations (Hall, 1992; Rust, Zethaml and Lemon 2000). In a highly competitive business environment, customers have become one of the most important strategic resources. Customers of a company are from three sources: existing customers, Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 37

completely new customers, and new customers transferred from competing companies. Despite of the completely new ones, customers can be divided into two groups: those with high loyalty and those with low. Donna and Theodore indicate that the expense for getting new customers is about six to ten times the cost for keeping existing ones. Reichheld and Sasser's research point out that if a company can reduce 5% lose of existing customers then a 25-85% gain in profit is possible. In modern business environment, maintaining, enhancing, and developing customer loyalty is critical to corporate prosperity. Another factor strongly related to services brand success is the quality of brand and nature of customer service. (L. de Chernatony and S.L. Drury, 2005) essentially a brand is a cluster of functional and emotional values which enables an organization to make a promise about a unique and welcomed experience. The importance of high quality customer service is well grounded in the literature. Gronroos (2000) conceives a model of the levels on which a service can be offered. At the basic level, a core service exists which is accompanied by facilitating services and providing quality brand to customers (which make it possible for customers to use the core service) and supporting services (which can be used to increase the value of the core service). One aspect of quality service, treating customers with respect and not patronizing them, is noted as particularly important. This is in line with the work of Bitran and Hoech (1990), who found that high quality service brand involves focusing upon frontline employees by training and motivating them to treat customers respectfully, in order to increase their brand loyalty. Respondents from the more successful brands referred to this both implicitly and directly, One of the choices organizations face is whether to adopt a ‘loose’ or ‘tight’ style of brand management (Authors 3, 2001). Tight branding is the Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 38

dominant model evident in the management of brands providing quality of service and increasing brand loyalty. However, the importance recognized by managers of the more successful brands of maintaining the quality is more in keeping with the idea of loosing brand loyalty. There is a realization that senior management must reduce their dominant control over the brand, so staff can be allowed, or even encouraged, to personalize the experience for consumers. It will create a stronger relationship with consumers and a greater brand loyalty. 2.8 COMPETITION OF THE PRODUCT A central characteristic of competition is that firms are mutually dependent; the outcome of a marketing action by one firm depends to some extent on the reaction of its competitors. Given the number of firms in an industry, competition, or more appropriately, competitive response, can take on many forms. One way of examining competition is to distinguish between how firms compete between and across strategic groups in an industry (Porter 1985). There is limited empirical evidence regarding the type of competitive interaction that actually occurs between firms in the marketplace. Empirical research assessing competitive interaction, which did not even begin until the late 1970’s and early 1980’s (e.g., Gollop and Roberts 1979, Bresnahan 1981; see Bresnahan 1989), suggests that there is significant variation in the competitive interaction observed across categories and marketing mix instruments (Slade 1995). Since the outcome of a firm’s action depends at least partly upon the behavior of its rivals, it is important for firms to understand the nature of the game being played. Although competitive response can be understood along several different dimensions Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 39

(e.g., Ramaswamy, Gatignon, and Reibstein 1994; Bowman and Gatignon 1996), an important first step in this direction requires an understanding about the type of interaction that actually occurs. Previous research has attempted to classify or categorize competitive interaction. For example, Raju and Roy (1997) define three forms of competitive interaction: independent (Nash), leader-follower (Stackelberg) and collusive. Under independent behavior, each player takes its rival’s strategic actions as given and acts to maximize its own profits. Under leader-follower behavior, one firm acts as the leader (i.e., it does not react to its rival’s actions), while its rival follows changes in the leader’s strategic behavior. Under collusive behavior, firms act to maximize joint profits. In practice, it may often be the case that firms compete vigorously on price, but accommodate changes in the feature advertising of their rivals (Leeflang and Wittink 1992). A strong consumer franchise gives manufacturers leverage with retailers (Aaker 1991). And, loyalty reduces the sensitivity of consumers to marketplace offerings, which gives the firm time to respond to competitive moves (Aaker 1991)1. 2.9 EXTERNAL CAUSES Sometimes researchers feel problem in getting the reasons of sale declining because of the environment influences in market or segment. A common business webpage has shown following points that are present in environment but are not visible. Researchers have to do extra work on external environment to detect them. Following points stop sales to increase or cause sales declining:

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Exports are decreasing. Imports are increasing. The surplus in the trade and service account is decreasing.

Exports to U.S. and to EU countries have both weakened due to the influence of U.S. economies slowdown and the euro depreciation is the past, respectively. Further, reflecting the economies slowdown is U.S. and in Asian countries, exports to Asian countries, mainly electric machinery, have declined, and exports as a whole are decreasing. In the future, the continuing slowdown of the U.S. economy is expected to work as a factor to curb exports from Japan. Imports of Chinese-made textile products are increasing, but as imports of machinery and equipment represented by IT related goods are deceasing, imports as a whole are increasing moderately. Imports from EU countries show an up-trend due to the euro depreciation in the past, but imports from Asian countries are increasing at a moderate pace due to the decrease in imported machinery and equipment. Imports from the U.S. have weakened slightly. As for the balance of international payments, surplus registered in the trade and service account is decreasing due to a decline in the export volume and a risen the import volume, although in terms of price, the surplus expansion effect is at work de to the declining crude oil prices. • Business investment has increased in both manufacturing and non-manufacturing industries and the robust trend is expected to continue for the present, but there have been signs of slowdown as far as prospects are concerned. Business investment has remained on upward trend since it started to rebound at he end of 1999, thus becoming a factor to prop up the economy. So far, the advance has been led Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 41

primarily by manufacturing industries such as electric machinery, but the rising trend has been seen expanded to other industries as well. According to Quarterly Survey Of Corporate Enterprises, during the October-December quarter business investment rose in manufacturing industries and started to rise from the preceding year in nonmanufacturing industries as well. Also judging from the bank of Japan’s Tankan survey, the business investment plan for fiscal year 2000 shows the highest growth rate in recent years for both large firms and small and medium-sized firms in manufacturing industries, and even compared to the preceding survey, a significant upward revision (a year on year increase of 16.4% and 11.3% respectively for large firms and small and medium-sized firms) has been made. The outlook for business investment is expected to continue to be robust for the present, as machinery orders, a leading indicator, have continued to upturn in the second half of\ last year. However, there have already been signs of weakness for the future, such as the predicted decline in machinery orders in the January-March quarter. • Corporate profiles are continuing to recover markedly. Improvement in business confidence shows signs of a standstill. Corporate profits have improves since 1999 and significantly rebounded particularly since the second half of 2000 (according to Quarterly Survey Of Corporate Enterprises, recurrent profit rose 31.9% in the October-December quarter as compared t the same quarter a year earlier). The efforts of restructuring made by firms are raised as the reason for the recent improvement, but factors such as the increasing sales volume in manufacturing industries and the reduction of variable cost in non-manufacturing industries since the beginning of 2000, too, have made great contribution to this. Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 42

Improvement In business confidence shows signs of a standstill judging from business sentiment in the Quarterly Survey Of Corporate Enterprises (“rising” versus “falling”), with confidence deteriorating in both manufacturing and non-manufacturing industries and more firms in the whole corporate sector believing that business is unfavorable than those believing the opposite.
• The number of business failures has remained somewhat high.

The number of business failure has remained somewhat high, such as business failures pr month stood at 25000 (20% increase) approximately cases according to a survey conducted by Tokyo Commerce and Industry Research Ltd in Asia.
• Domestic wholesale prices and consumer prices are both declining slightly.

Domestic prices are slightly declining from the beginning of 2005 due to the declining prices of electric machinery and transport equipment. Domestic wholesale prices stayed almost unchanged from the preceding February but are actually continuing to decline from the preceding month, if the factor of temporary price increase due to the low temperature is excluded from edible agricultural, livestock and aquatic products such as eggs. Export prices declined as a result of the yen appreciation along with a decline on the contractual currency basis. Import prices declined as a result of yen appreciation along with a decline on the contractual currency basis. Further, the corporate service price index has continued to decline from the month a year earlier. Consumer prices have been declining slightly since the fall of 2004 due to the decline in the prices of textile products and food service (the composite index excluding perishables in January down 0.5% from the same month a previous-year). Further, consumer prices in the 23 wards of Tokyo in

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January fell by expanded magnitude from the same month a year earlier (the composite index excluding perishables in February down 0.5% from the same month a year earlier).

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3. THEORETICAL FRAME WORK:
3.1 Basic Framework A theoretical framework is conceptual model of how one theorizes or makes sense of relationship among several factors that have been identified important for the problem. This study will resolve around the following dependent, independent and moderating variables. Before going into the practical demonstration of variables through flow chart, first we have to list and define the purpose of the each variable that will be used in the research. List Price Quality Availability Reliability Competition Advertisement Declining Customers Ratio Labels Independent Independent Independent Independent Independent Moderating Dependent

The dependent variable “Declining Customers Ratio” is the variable of primary interest and to which the independent variables and moderating variable may cause to influence. The basic purpose because of which the above variables are taken is all of them have a strong influence in making a product successful in market like, if price is acceptable by market then everyone does not feel awkward to buy the product and the same is true for quality. Talking about availability of product, if product is physically not available or cannot easily accessible then how it is going to be purchased. Lack o advertisement does Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 45

not introduce company to remote areas. That’s why people would join other companies unknowingly. Finally less provision of reliability of local companies also increases the dissatisfaction of customers and ultimately leads to the low customer ratio. 3.2 PRACTICAL INTERACTION OF VARIABLES Price

Quality Customer Ratio Availability Dependent Variable Reliability

Competition Independent Variables Advertisemen t Moderating Variable

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4. HYPOTHESIS DEVELOPMENT:
H0: H1: H0: H1: H0: H1: H0: H1: H0: H1: There is no relationship between Price and Customer Ratio There is relationship between Price and Customer Ratio There is no relationship between Quality and Customer Ratio There is relationship between Quality and Customer Ratio There is no relationship between Availability and Customer Ratio There is relationship between Availability and Customer Ratio There is no relationship between Competition and Customer Ratio There is relationship between Competition and Customer Ratio There is no relationship between Reliability and Customer Ratio There is relationship between Reliability and Customer Ratio

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5. RESEARCH METHODOLOGY
This section presents the basic methodology and requirements in research. It includes the method of research, respondents and their description, source of data, the sets of research instruments that were used, treatment of data, and the statistical tools, which were used in this study. The data has gathered from the sample of population. Random sampling method will be used to make the sample true representative of the population. 5.1 Type of Study The type of the study is descriptive and based upon secondary data. This study is based upon the existing sources. The descriptive process of research was believed to be more suited in this kind of investigation. The goal of the study is to describe relevant aspects of the variables of interest to the researcher from an individual’s perspective. Descriptive study that presents the data in a meaningful form thus help to understand the characteristics of the situation, to think systematically about aspects in a given situation particularly of variables and problem and to offer ideas for further probing to make certain simple decisions. 5.2 Research Instruments Two types of questionnaires and unstructured interviews from shop owner and their workers are used as a research instrument for the study to gather and analyze the opinion of the respondents. It also included formal/ written information from websites and the forms as well as assistance from our professor and any concerned persons. Both field and desk research has been conducted to compile this study. Sources of desk research include: • • Newspapers The Internet Page 48

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5.3 Respondents of the Study Area where the study was conducted is Rawalpindi the adjacent city to the capital of Pakistan. The citizens of this city have every characteristic of being chosen as respondents therefore the respondents of the study are the earning individuals of Rawalpindi. The names of respondents who have participated while giving information and their views regarding topic are mentioned in the appendix. The list only provides the names of business individuals. 5.4 Sampling Procedure Despite the errors associated with sampling, samples had to be created from a colossal population of respondents. The samples were taken from the population on the basis of simple random sampling. Needless to say, even if the intent of this study were to examine every element of the population- time, cost and human resource constraints had made it very hard to collect data, or examine every element. With respect to unstructured interviews, the respondents of this study are the different earning individuals of Rawalpindi city. So the sample is taken from the population “the earning individuals of the mentioned city”. As also, the study revolves around the earning individuals so the sample of total 100 respondents are considered good enough and further segmented into two categories. The breakup of 100 respondents is 80 respondents are salaried persons and the remaining 20 are the business owned persons. To analyze and get the results the information collected simple random sampling method is to be used. In simple random sampling 50 respondents have been selected out of 80 to conclude the results.

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5.5 Summery Of Interviews During the visit of fans business owners’ shop, at the busy and business of Rawalpindi like Raja Bazaar and Pendora and Murree road, for getting information through questionnaires, there were 9 interviews conducted, 6 from different persons who are working in those shops and 3 from owners themselves. The owners told me about the brands they are selling and what incentives they are providing to customers like installment facility to the customers. Most of the shop owners are doing business from the last 15 to 20 years and they are successful. They informed about the most selling brands of the fan industry like Pak fans and Yunas fans. In this process of interviews the owners and workers told about the sales of fans, they said that fans still has a good sales but the interval between two buying is now has increased. They also agreed on the opinion of split AC’s attack on the sale of fans. They said that now customers who have a lot of money preferred split units. My reaction to this sentence was not good so I cross questioned that fan is one of the basic requirement of the room it cannot be ignored then they replied that previously when there was no split units customers were purchasing two sometimes three fans per room and now the situation is changed and the number is reduced to one fan per room and I agree on the answer. When the owners were asked to provide their opinion about how to increase the sales of fans? They said in return that its not like that fans’ sales have been low, instead of it, now there are many brands and producer are coming in market and the sales have shifted to many other brands like Prime fans for Gujranwala is entering in market. In marketing perspective competition is increasing in fans industry that is particularly good for Pakistan’s domestic market. Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 50

At the end, the most important thing that has been observed during field survey and interviews that most of shop owners, regardless of their business, has installed split units in their shops. And when they asked about it regarding the research they said in return that yes it would cause the sales of fans. They said that now persons who have good money in their hand and want to open any kind of shop or business, they install split units in their shops. Some of them also said that it also depends on the weather, the shop owners who have good profit they install split units because they want to get rid of summer’s hotness as Pakistan is a very gifted country and it has very cool winter and also very very hot summer. Finally, it seems necessary and purposely to mention the extra opinion of one of the owner who said deliberately that he is very happy and proud that now students are coming and concerning about the domestic market of Pakistan rather than international or other sector which are currently at the top like banking and telecom. He also said that the real gold is the domestic market of Pakistan about which people are not aware of and they should be told about the richness of the Pakistani domestic producers and their abilities.

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6. CONCLUSION & RECOMMENDATION
Conclusion The study of customer ratio of fan industry in the area Rawalpindi concludes that the main purpose of this study was to disover the reasons behind the low sales of fans and also clears the dilemma of split units causing the low sales of fans. Through this research it is concluded that there are two major independent variables which have affect the sales of fans negatively. Those variables are “prices” of fans and above all the “competition” between fan manufacturers. And other main cause that has been acquired during the interviews is the introduction of “split units” which has also decreases the sales of fans.. The moderating variable in this research was “advertising”. The survey shows that advertisement does have a major affect on sales of fans or any product. Shop owners’ dealers and believed that advertisement creates more demand and awareness about the fan and it should be increased. The reasons of the negative influence of independent

variables- price and competition- and effect of splits units are: • Prices of fans are not high but most of the users are belong to the middle class and the market of Pakistan has low literacy rate which result the price to effect the sales of fans. • Pakistan domestic market is very rich with manufacturers, so fan industry is full of fan manufacturers that cause the high competition in Pakistan. Thus, competition variable causes the low sales of fans as there are many producers are coming in market with quality products and also substitute products. • The influence of split units is also negative on sales of fans because the customers who have high income goes for the split units due to it cooling benefit. The split Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 52

units also cause the low sales of fans in a way that now the number of shop owners who have installed split units in their shops instead of fans has been increased day by day that also hit the sales of fans. • The dilemma of split units is exists because lot of fan manufactures thinks that split unit is the main reason of the low sales so they also start producing of split units. There are some independent variables which do not affect the sales of fans. Those independent variables are “quality”, “availability” and “reliability”. Quality of fans has been good and the customers do not have any question or reason for not purchasing fans because of quality. As Rawalpindi is diverse and very busy market thus availability also does not cause the sales declining. Reliability variable has also not involved in the causing the sales decline because fans producers are more concerned about quality and reliability of the product.

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Recommendations Although there are many factors that are taken part to make loyal customers but after conducting research I have found that in Pakistan due to poverty people cannot afford too much prices of goods due to less earnings. So there should be low price while maintaining the quality of product. Competition has been increased over the past few years in many industries of Pakistan. Through this research I have found that fan industry is also having many manufacturers. So the producers must observe their competitor and their strategy of promotion in order of compete with them. New technologies are coming daily. In this research I have found that the local manufacturers are not very keen to use new technologies because of their financial problem and profits. It is very important to use new technology to make customers loyal towards the company. Government can play its role in making this possible. This research reveals that promotion of fan manufacturing is not up to the mark. The manufactures advertise only in TV whereas Pakistan’s most market lives in rural areas. This research recommends the following promotional techniques: • Be newsworthy: The manufacturers should use all available TV media to provide awareness about their product and company. • Create a compelling client/customer e-newsletter:

This should be entertaining and informative; it must offer them something useful in their job or their life. Downplay the advertising element; this is definitely a soft-sell tool. Only send it to clients and serious prospects, not cold prospects. Finally, keep it short and keep the frequency reasonable; if you send them 1,000-word messages or contact them daily, they will stop opening e-mails from you altogether. Research Report on Sales Fluctuation in Fan Industry Qazi Ashfaq Page 54

Keep sale prices on the up and up:

A common advertising phrase for sales is "up to XX% off," and the higher the number, the bigger the attraction for customers -- but keep that number at a reasonable level. • Say "free" like you mean it:

Customers love to see and hear the word "free" in advertisements and sale notices. Your job as a businessperson is to stick to the meaning of the word. The two most important points: (1) If you have a "buy 1, get 1 free" sale, you can't raise the price of a good to cover the cost of the free item, and (2) if there's a condition on receiving a free item, such as buying three widgets, you need to state that condition clearly in all advertising. • Use promotional products:

Print ads get tossed in the recycling bin daily, and television and radio ads can fall victim to TiVo or satellite radio. But if your customers have a reminder, say a flash memory stick, with your logo and Web site on it, you'll stay top-of-mind.

If the competitor you've been comparing yourself to changes its prices, you need to either find a new, high-priced competitor so that your claims remain true or change your advertising. • Be aware that if you use comparative pricing for only a few of your products, customers might assume that the non-labeled products cost the same or possibly even more than a competitor's goods. • Look at your advertising through an objective eye. If it sounds unbelievable, then find the proof to back up your claims or change the ads.

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Tables and Graphs

Q:1 Fan is the basic necessity? 60 50 Values 40 30 20 10 0 Yes Respondents No Q. 1 Fan is the basic necessity?

According to 100% customers fan is the basic necessity

Q:2 You like 35 30 25 20 15 10 5 0 paksitani fans international fans respondents

values

Q:2 You like

Most of the customers like Pakistani fans.

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Q:3 Imortance of attributes

30 25 Values 20 15 10 5 0 Extremely Very important Important Some Not very what important important Not at all brand price Quality Reliability

Respondents

The survey shows that most of the customers pay attention towards price and quality of the fans before making a purchase.

Q:4 Electric comsuption

30 25 v alue s 20 15 10 5 0 excellent very good good responents fair poor fans coolers split AC

Almost 100% of customers do not complain about the electricity consumptions of fans.

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Q:5 What will you buy if your income is

45 40 35 30 25 20 15 10 5 0 split ac fan room cooler fan& split ac Fan & cooler

less than 10000 10000-15000 15000-20000 20000-30000 above 30000

values

respondents

Purchase decision is highly depends upon the income of the customer. The higher the income of the customer the more expensive product he will buy.

Q:6 Sales have been declined because of

35 30 25 20 15 10 5 0 strongly disagree disagree niether agree not disagree respondents agree strongly agree

values

split ac coolers elecricity prices quality competition

Most of the customers of fans agree with that sales of fans have been declined because of coolers and split units.

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Q:7 Scope of fans is still there in small villages

25 20 15 10 5 0 niether agree not disagree strongly disagree strongly agree

values

Q:7 scope of fans is still there in small villages

The survey reveals that scope of fans is still there in small cities and villages.
Q:8 AC/room coolers coolers are given preferrence over fans due to

50 40 30 20 10 0 Fans are unable to cope with summer The prices of AC/roomcoolers are affordable

Q:8 AC/room coolers coolers are given preferrence over fans due to

Customers are of the view that fans are unable to cope with summer. So that’s why they have switched to alternative products like coolers and split units.

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Q:9 Where you have seen the advertisement of Fans?

25 v alue s 20 15 10 5 0
er Tv io ap sp R ad Al l

Q:9 where you have seen the advertisement of Fans?

N

ew

Respondents source

Advertisement of fans is mostly seen on television.

Q: 10 Advertising of fans

30 25 20 15 10 5 0 niether agree not disagree strongly disagree strongly agree

values

good enough should be increased needs improvements

Advertising of fans should be increased, as customers want more improvement in it.

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Q:11 Advertising of fans should be on

10 8 6 4 2 0
er TV ad sp ft he ap R m io

Q:12 Advertising of fans should be on

ew

According to the survey customers feel that advertising of fans should be on all available medias.

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N

Al

lo

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REFERENCES • Market leadership strategy for service companies (creating growth, profits and customer ratio) Craig Terrill and Arthur Middle Brooks PB (NTC) American Marketing Association, 1990-1999-2002 • Consumer Behavior, J.Paul Peter and Jerry C. Olson, McGraw Hill/Irwin publishing, copyright©1999 • Nancy Giddens and Amanda Hofmann, Written August, 2002

http://www.extension.iastate.edu/agdm/wholefarm/html/c5-54.html Respect Marketing, the Campbell Ewald, • • http://www.crm.com/brand/loyaltymodels/html/m1m2.html

Customer

Joseph Plummer, McCann-Erickson (Article World Advertising Research Center) Published May, 2005

Nada Nasr-Bechwati (2001), “The Allocation of Promotion Budget to Maximize Customer Equity,” The International Journal of Management Science, 29, 4961.

• •

Katherine N. Lemon (1999), “A Dynamic Model of Customers’ Usage of Services: Usage as an Antecedent and Consequence of Satisfaction,” Journal of Marketing Research, 36(May), 171-186.

DoubleClick.net (2003), 2003 Multi-channel Holiday Shopping Study, Doubleclick.net.

Hof, Robert D. (2003), “Amazon.com,” BusinessWeek, November 24, 2003, 104.

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• • •

Philips Kotler “Marketing Management” International Edition Chapter 6 and 16 Kevin lane keller “brand management” International Second Edition Chapter 12 Michel Wedel, Fernando de Rosa, and Jose A. Mazzon, (2003), “Cross-Selling Through Database Marketing: A Mixed Data Factor Analyzer for Data Source:

• • •

Federal Bureau of Statistics. Disclosure,” Journal of Marketing Research, 38 (May), 157-159. Young, Sam J., (2001), “Make the Most of Every Channel,” Catalog Age, 18 (March), 58-59.

• • • • • • • • • • • • •

www.bizreport.com/2007/04/are_online_travel_sales_declining.html www.marketintelligencecenter.com/articles/335434 www.brandsynario.com www.fdi.com.pk www.pakboi.com.pk\investments www.royalfans.com www.gfcfans.com www.wahid-industries.com www.millatfans.com www.bizreport.com www.businesweek.com www.marketintelligencecenter.com www.alibaba.com\pakistan\manufacturing-concerns Page 63

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http://www.alibaba.com/trade/search?CatId=618&OfferType=SALE%2CAGEN T%2CMISC&IndexArea=company_en&Country=PK&CompanyType=&Searc hText=Fan

APPENDICES
Questionnaire I (for customers) Q:1 Fan is a basic necessity.(Please tick one)  Yes Q:2 Q:3 You like:  Pakistani fans

 No  International fans

You afford to buy:(Please tick one or more)  Fan  Room cooler  Split AC  All What is the level of importance for you towards following attributes of Extremely important 1 1 1 1 Very important 2 2 2 2 Somewhat important 3 3 3 3 Not very important 4 4 4 4 Not at all important 5 5 5 5

Q:4 fans?

Brand Price Quality Reliability Q:5

Q:6

Electric consumptions of following substitute products are: Excellent Very good Good Fair Poor Fans 1 2 3 4 5 Split AC 1 2 3 4 5 Coolers 1 2 3 4 5 What will you buy from following substitute products if your income is: Split AC Less than 10000 10000-15000 15000-20000 20000-30000 Above 30000      Fan      Room cooler      Fan & Split AC      Fan & Room cooler      Page 64

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Q:7

Sales of fans have been declined because of: Strongly Disagree disagree 1 2 1 2 1 2 1 2 1 2 Neither agree not disagree 3 3 3 3 3 Agree 4 4 4 4 4 Strongly agree 5 5 5 5 5

Split AC Coolers Electricity Prices Quality Q:8

Scope of fans is still there in small cities/villages. Strongly disagree 1 Disagree 2 Neither agree not disagree 3 Agree 4 Strongly agree 5

Q:9

AC/room coolers are given preference over fans due to:  Fans are unable to cope with summer  The prices of AC/room coolers are affordable Where you have seen the advertisement of fans?(Please tick one or more)  TV  Radio  Newspaper  Billboards  Never seen  Others_ _ _ _ _ (Please specify) Advertising of fans:  Good enough  Need improvements  Should be increased  Both second and third Your cooperation is appreciated

Q:10

Q:11

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Questionnaire II (for shop owners) Q:1 Q:2 You sell: (Please tick one)  Pakistani fans  International fans  Both Customers purchase fans by considering? Extremely Very Somewhat Not very important important important important Brand 1 2 3 4 Price 1 2 3 4 Quality 1 2 3 4 Reliability 1 2 3 4

Not at all important 5 5 5 5

Q:3 Q:4 Q:5 Q:6

Do customers bargain?  Yes  No How often do you receive bulky orders of fans?  Frequently  Occasionally Do you receive questions about electricity consumptions of fans?  Yes  No Sales of fans have been declined because of: Strongly Disagree Neither Agree Strongly disagree agree not agree Split AC 1 2 disagree 4 5 Coolers 1 2 3 4 5 Electricity 1 2 3 4 5 Prices 1 2 3 4 5 Quality 1 2 3 4 5 3 Scope of fans is still there in small cities/villages. Strongly Disagree Neither agree Agree disagree not disagree 1 2 3 4 Electric consumptions of following substitute products are: Excellent Very good Good Fair Fans 1 2 3 4 Split AC 1 2 3 4 Coolers 1 2 3 4 Strongly agree 5 Poor 5 5 5

Q:7

Q:8

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Q:9

Q:10

Q:11

Q:12

Q:13

Following factors will increase sales of fans: Strongly Disagree Neither Agree Strongly disagree agree not agree Price 1 2 disagree 4 5 Quality 1 2 3 4 5 Advertisement 1 2 3 4 5 Reliability 1 2 3 4 5 3 AC/room coolers are given preference over fans due to:  Fans are unable to cope with summer  The prices of AC/room coolers are affordable Where you have seen the advertisement of fans?(Please tick one or more)  TV  Radio  Newspaper  Billboards  Never seen  Others_ _ _ _ _ (Please specify) Advertising of fans:  Good enough  Need improvements  Should be increased  Both second and third Advertising of fans should be on:  TV  Radio  Newspaper  All of them Your cooperation is appreciated

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