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Introduction

A clever person once said, "Visions demand a strategy, strategy requires a


plan." This is what is often overlooked or sidestepped by too many sales
people involved in the selling process today.
And when people talk about selling process, people are not only referring
to the sales persons or final customer, people are referring to the
advertising agency, the media placement agency, the online marketing
agency, the selling outlets, Selling & marketing strategy etc. In other
words, all parties that are involved in creating of a product to the final
stage of selling a finished goods or service are related to selling process
and its success.

Walton Hi-Tech Industries Ltd. (Walton HIL)


Walton is the pioneer in Manufacturing Refrigerator, Freezer, Air
Conditioner and Motorcycle Technology in Bangladesh. R.B. Group (Mother
Company) is now the country's one of the top business group in electrical
and electronics, Motorcycles, Electricity generating equipments and other
domestic electrical & electronics appliances using the brand name
WALTON.
The company has been running its business with a great status since
1977. Establishment of Walton HIL to manufacture Refrigerator & Freezer,
Air Conditioner, and Motorcycle etc. in Bangladesh is a milestone in the
path of success and reputation of the brand WALTON. Walton HIL has
introduced first advanced research and manufacturing technologies and
equipments for household & commercial Refrigerator & Freezer,
Motorcycle and Air Conditioner etc. in Bangladesh.
Walton HIL is furnished with strong Research & Development (R&D)
Division comprising with a large team of highly dedicated as well as skilled
engineers & technical personnel from home and abroad. It is fully
equipped industrial set-up with annual production capacity of 1.5 million
Refrigerators & Freezers, 0.3 million Motorcycles and 0.35 million Air
Conditioners, 1.0 Million Televisions. The Industry has its own Mold & Die
making section, high precision molds & dies are made by the help of the
state-of-the-art. machines. The company has three Poly Urethane Foaming
Plants, three Thermoforming (Vacuum forming) Units; highly equipped
Metal Forming Units with Powder Coating, Nickel-Chrome Plant & DieCasting Section, robots operated Injection Plastic Molding Plant, Highly
equipped Test Lab, Printing & Packaging Section, etc. Walton HIL always
emphasizes on supreme priority to achieve customer satisfaction. So far
Walton has received two awards. They are:

1. Bangladesh Binodon Sangbadik Samity Award- 2005 and


2. Dhaka International Trade Fair Award- 2004

Product List
Walton offers some variety of electronics products:
1. Air Conditioner
2. Color Television
3. Domestic and Industrial
Generator
4. Batteries
5. Manganese & Alkaline

6. Microwave Oven
7. Motor Cycle
8. Refrigerator
9. Mobile Phone
10.
DVD Player
11.
Steam Ovens etc.

Sales strategy
Every company uses a different strategy to uniquely position themselves
against their competitors. To understand what sales strategy to use in the
market, a marketer needs to understand their current market. The market
positioning of Walton is given below:

Market Positioning
1. The Product: Signer defines it in terms of what it does for its
customer. Walton only offers electronic products only that were
mentioned before.
2. The Price: Waltons pricing strategy is low cost focus. Walton is not
viewed as extremely expensive products. It has focused on mass
market segment with its low cost strategy.
3. The Place: Walton Bangladesh has a unique retail network. Its
products are sold through 599 outlets across the country. So their
customers are all over Bangladesh.
4. The Promotion: Promotion includes every aspect of advertising,
brochures, packaging, salespeople and sales methodology. Walton
has promoted its products in such a way that it has reached even in
the villagers awareness of serving low cost quality products.

Selling Strategy of Walton


After analyzing the market positioning of Walton it can be understood that
Walton uses Cost leadership selling strategy. Walton produces its
product at a lower cost and target customer who are poor and middle
class people and sale them products in a cheaper price. The details of
selling strategies are given below:
1. Product selling strategy
Walton produces most of the product on their own. Sometimes few parts
of the products are imported from other countries. After producing they
send the products to local distributor in different cities and then the
products are sold to the original buyer. The total range of products and
their selling sizes are given below:
Name Of Product
12.
Air Conditioner
13.
Color Television

Size of the Product


1ton, 1.5 ton, 2 ton
14,18,20,22.24,30 and LED
20, 32 and 40
Small and large

14.
Domestic and
Industrial Generator
15.
Batteries
16.
Manganese &
Alkaline
17.
Microwave Oven

AA and AAA size


Depends on industrial demand
8, 10 and 12 size
2

18.
19.
20.
21.
22.

Motor Cycle
Refrigerator
Mobile Phone
DVD Player
Steam Ovens

80cc, 100cc, 125cc, 150cc


8cft, 12cft, 16cft, and 20cft
Various model
One single model
Two different model

2. Packaging strategy
Walton products are available in different packing depending on the type
of product. The types of packages are given below:
Name Of Product
1. Air Conditioner
2. Color Television
3. Domestic
and
Industrial Generator
4. Batteries
5. Manganese
&
Alkaline
6. Microwave Oven
7. Motor Cycle
8. Refrigerator
9. Mobile Phone
10.
DVD Player
11.
Steam Ovens
The packages contain the details of
packages to attract the customers.

packaging of the Product


Plastic and hard paper
Paper box
No package available
Plastic box
Depends on industrial demand
Hard paper box
No package available
Hard paper box
Soft paper box
Paper box
Hard paper box
the product and they make attractive

3. Pricing Strategy of Walton


a) Trade Promotion
Walton Company gives trade commission to middle men or retailers in
way a that they offer them some commission of the sales, by this these
retailers and middle man push their product in the market. And thats why
Walton seen more in the market. And they have a good sale in the market
because according to the expert which product seen more in the market
that sells more.
b) Different Price in Different season
Some times Walton Company changes their product prices according to
the season. Summer is supposed to be a good season for Air condition
selling. So in winter they reduce their prices to maintain their sales and
profit.
4. Promotion strategies
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a) Getting shelves
They gets or purchase shelves in big departmental stores and display their
products in that shelves in that style which show their product more clear
and more attractive for the consumers in the local area.
b) Eye Catching Position
Salesman of the Walton Company positions their products in eye-catching
positions. Normally they keep their discounting product near the entrance
of the stores.
c) Sale Promotion
Company also do sponsorships with different college and schools cafes
and sponsors their sports events and other extra curriculum activities for
getting market share.
5. Distribution Strategy
Walton Company makes two types of selling
a. Direct selling
b. Indirect selling
a) Direct Selling: In direct selling they supply their products in shops
by using their own transports. They have over 100 vehicles to
supply their products. In this type of selling company have more
profit margin.
b) Indirect Selling: They have their whole sellers and agencies to
cover all area. Because it is very difficult for them to cover all area
of Bangladesh by their own so they have so many whole sellers and
agencies to assure their customers for availability of Walton
products.
6. Advertising strategy
Walton Company uses different mediums
Print media
Pos material
TV commercial
Billboards and holdings
Print Media
They often use print media for advertisement. They have a separate
department for print media.

POS Material
Pos material mean point of sale material this includes: posters and
stickers display in the stores and in different areas.
TV Commercials
As everybody know that TV is a most common entertaining medium so TV
commercials is one of the most attractive way of doing advertisement. So
Walton Company does regular TV commercials on different channels.
Billboards and Holdings
Walton is very much conscious about their billboards and holdings. They
have so many sites in different locations for their billboards.

SWOT analysis
Strength
i.

ii.

iii.

iv.

v.

vi.

vii.

Multiple Products in one Roof: Walton produces more than one


type of product under one roof. So even if one brand fails in the
market, Walton can back up the losses using the other brands. From
last few years Walton has already proved that.
Largest Local Dealer of Bangladesh: Walton is the largest local
Brand in Bangladesh who manufactures TV, freezer, motor-cycle etc
locally. They have outlets all over the country.
Around 600 Retail store in the country: Walton have around
600 retail store all over the country which helps them to grow faster
and reach customers more effectively.
International expansion: Walton has already controlling the lower
class market in Bangladesh and now it has 3 international offices
over the world. So now they are trying to control the oversea
markets.
Multiple retail formats for different consumer group: Walton
has multiple retail formats for different consumer groups. In Dhaka
city Walton has created expensive outlets showing every product of
Walton for middle class and upper middle class. When in the villages
Walton has smaller shop to attract lower and lower middle class
families.
Nationwide service network: Walton has nationwide service
network which provide services eight hours a day and five days in a
week. Walton provides long warranty period so if any product shows
difficulty, users can take it to nearest service shop.
Research and Development facility: Walton has R&D facility in
Dhaka city which provide opportunity to introduce new product to

the market. For example Walton has recently announced the launch
of mobile phones.

Weakness
i.

ii.

iii.

Low market Capital: Walton has less market capital than the
competitor. Because of low market capital Walton cannot invest
more money in R&D facilities to introduce new products. This is a
huge weakness for a local company.
Low economies of scale:
Even though the wage rate in
Bangladesh is very low but the export cost of the manufacturing
materials is very high so the average cost per product is more
expensive than some of its competitors.
Availability of costlier loans: Banks in Bangladesh offers load in
very high interest rate so when the company needs capital it cannot
take sufficient load because of the interest rate.

Opportunity
i.

ii.

iii.

iv.

Development and improved product mix: Since Walton is


currently offering only type of product and the current market is not
mature so Walton has huge opportunity for future to Develop and
improve new products.
Delivery of enhanced production efficiencies: The current
production rate of Walton is satisfactory but not sufficient to meet
with the demands.
Up gradation of facilities and systems: Walton has a huge
opportunity to upgrade their current system so that they can
introduce high quality product to market. With high quality products
they can enter into upper class market segment.
Diversifying product portfolios: At present Walton is only
offering 11 types of electronic products. If Walton upgrade their
current facility they will have the ability to produce more diversified
products. Since the current market is not mature so it is an easy
entry market for Walton. With diversified portfolio Walton can
diversify the risk of loss.

Threat
i.

Riskiness of the firm: At present Walton is only offering product


for lower and middle class product. The market is not mature so in
near future multiple competitors can enter into the market. This can
be a huge risk for Walton.
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ii.

iii.

iv.

Shortage of Funds: The capital of Walton is limited as it is


mentioned in the contract form. So in future if Walton wants to
increase its fund it can face shortage.
High-end competitors: The current market has a lot of High end
multinational competitors like Sony, Singer, LG, Samsung etc. these
high end competitors can enter into the low end market in any time
which can be a risk for Walton. Also these high end competitors put
a huge barrier to enter into high end market.
Political and economical influences: The political and
economical condition of Bangladesh is very unstable. Change of a
political party in every five year has a huge influence in the market.
This is a huge risk for Walton.

Conclusion
Traditional selling strategy looks at a service, product or product line and
the message needed to sell to a customer base. Cost leadership strategy
looks at the whole business, its vision and goals, its target markets, and
the natural connections between and among all the business elements to
discover what methods and messages will appeal to each customer.
Walton Bangladesh has already started implementing the cost leadership
concept in their selling strategy and has already observed the significant
changes in their outcomes. Selling has been increasing and integration
within and outside the organization has been more efficient. Because of
gradual implementation of holistic marketing approach it has sustained in
a very competitive market with success.

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