Marketing Management project on Super

Asia Fans

Submitted to:

Sir Waqar Ahmed

Submitted by:

Ghulam Muhammad (094532064)

Mudassar Umer (100992002)
Muhammad Saqib Latif (094532105)
Usman Ali (084232075)

MBA-(P) and MS-Management Sciences

(Spring 2010)

University of Management and Technology Lahore

Date: 29-03-2010

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 ACKNOWLEDGEMENT

First of all, We thank to Allah Almighty who blessed

us with great courage to make this project. Secondly,
we thank to our respected professor Sir Waqar
Ahmed who provide us this interesting opportunity
to do this project. Moreover, we also thank to our
parents for their support.

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 Table of Contents

Serial # Particulars Page #

1 Pakistan Economy 5-6
2 Fan industry of Pakistan 7-8
3 Super Asia Muhammad Din Sons PVT limited 9-10

4 Organizational Chart 11
5 Services 12

6 Vision and Mission 13

7 Product types, Varieties and Brands 14

8 Product types, Varieties and Brands of Super Asia 15-18

Fans
9 Sales volumes and trends 19
10 Market Share 20

11 Growth rate 21
12 Demographic features 22

13 Life style and patterns 23

14 Usage Pattern and behavior 24

15 Preference for specific benefits 25

16 Advertisement and Promotional programs 26

17 Pricing Practices 27
18 Relationship with dealers and distributors 28-29

19 SWOT Analysis 30-31

20 Conclusion and Recommendations 32

21 Reference 33

22 Graphs 34

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 Pakistan Economy
Pakistan is an under developed country. It has suffered from very economical and
political crises that include internal political disputes and low levels of foreign
investment. Between the era of 2001-2007, the poverty status in the country will
increased by 15% but the spending in the provincial capitals and federal capital
Islamabad shows the large amount of development. This creates a gap between the

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developed and underdeveloped cities of Pakistan. In the era of 2004-2007, there is a large
foreign investment came in Pakistan. Very large industry including telecommunication,
media and several other manufacturing industries launched their units in Pakistan. In that
era the GDP of Pakistan raise up to 5-8% but this growth was declined when Pakistan
faced the very critical electricity crises.

Despite electricity crises, the other major crucial element is inflation. Petrol prices and
the prices of other hoe appliances and other consumable things are going up and up
vigorously. It is jumping from 7.7% in 2007 to 20.8% in 2008, and 14.2% in 2009.
Moreover due to political instability in the country, the value of rupee is depreciating and
at this point $1 is equal to Rs.81 (approximately).

The government of Pakistan now taking the loan from the International Monetary Fund to
stabilize the economy and reduce the budget deficit of the country but this loan caused
the burden on the local people of Pakistan. The poor person became poorer and the rich
person became richer. The middle class is going to be end slowly. Textile sector which is
a very crucial and important constituent of GDP of the country, faces many sever crises
of electricity. Due to that matter the export of the country regarding textile is also
affected. Other long term challenges include expanding investment in education,
healthcare, and electricity production, and reducing dependence on foreign donors.
Reduction in the education and health budget and the increase in the budget of the
military and security & defense are also affecting severely the economy of the country.
Most of the people in the country face the shortage of heath and education facilities. The
unemployment rate in the country is also increasing day by day. The other major factor
that today Pakistan faced is the issue of security in the country. That issue should be
resolved in order to stabilize the economy.

These all the variables in the economy can be improved by good governance, hard work,
efficient utilization of resources, homogeneous investment in all cities of Pakistan,
encouragement of foreign investment, stabilization of home and government industry,
increase of exports, reduce the power and energy crises and reduction of foreign loans.

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Key variables:
GDP (purchasing power parity): $448.1 billion (2009 est.)
GDP (official exchange rate): $166.5 billion (2009 est.)
GDP - real growth rate: 2.7% (2009 est.)
GDP - per capita: $2,600 (2009 est.)
Labor force: 55.88 million (2009 est.)
Unemployment rate: 24% (FY05/06 est.)
Investment (gross fixed): 18.1% of GDP (2009 est.)
Inflation rate (consumer prices): 14.2% (2009 est.)
Industrial production growth rate: -3.6% (2009 est.)
Exports: $17.87 billion (2009 est.)
Imports: $28.31 billion (2009 est.)
Exchange rates: (PKR) per US dollar - 81.41 (2009)

Source: 2010 CIA World fact book

FAN Industry of Pakistan

Pakistan is self sufficient in Fan industry. Two types of fans are manufactured in the
country that is given below:
• Domestic fans (consumes up to 125 watts of energy)
• Industrial fans (consumes over 125 watts of energy)
Fan industry produces different types of fans with a variety of design. It is one of the
industry that is exists in the country at the time of independence (1947). In 1950, fan
industry came under the category of cottage industry because the units produced in the
industry are fall in that category. As far as the export is concerned, Pakistani fans are not
much exported in the earlier years. Fan industry is mainly working in Gujrat and

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Gujranwala. However there units are also operating in Lahore and Karachi where the
offices of these factories are located to capture the international markets customers and
direct deal with them. Besides the fan manufacturing several other units that are
producing raw materials for the manufacturing of fans are also present in these and
nearby cities. There are five large companies in Gujrat and 2 large companies in
Gujranwala that contributed to 70% sales in the fan industry not only in Pakistan but also
in other countries of the world.

Fan industry has more than 500 production units in Pakistan but the registered number of
units under PEFMA (Pakistan Electric Fans Manufacturers Association) is only 200. The
consumption of fans in Pakistan is much more and it is increasing day by day. Fan
industry is manufacturing over 7 million fans and
exporting more than 2 million fans. The industry
is producing a variety of products in different
sizes and designs that includes Ceiling,
Pedestal, and Table, Table-cum-pedestal fans, Circumatic fans, Wall
bracket, exhaust fans and Propellers. The percentage table of the fan
manufacturing is given above.

Most of the raw materials used by the fan industry are directly or indirectly imported
from different countries. Some of the raw materials used in the manufacturing of a fan
are: Electric steel sheets, Aluminum, Enameled copper wire, Ball bearing and steel. The
demand of fan are increasing day by day because many people are migrating to large
cities, population of Pakistan is increased, due to hot and humid climate and the people
are becoming quality conscious. The major players in that industry are PAK Fans, GFC
fans, Royal Fans, Yonus Fans, Super Asia Fans, etc

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 procedure should be simplified and the latest technical laboratory should be

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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
report should be given in a specific period. Further, an institute for labor training should
immediately be established with the help of PEFMA Association. The other measures to
enhance the export, 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.

Super Asia Mohammad Din Sons Private

Limited
Super Asia is engaged in producing top order home appliances in South Asia.
Recognition of its achievements in quality products are manifested in the form of the ISO
9002 certification. The success tale spread well over 25 years when Super Asia produced
the first washing machine of Pakistan. Later on Super Asia started producing room air
coolers, gas and electric geysers.

Keeping in view the requirements and purchasing power of all the segments of the
society, Firstly Super Asia has introduced different washing machines to meet their

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demands. Washing machines are their key product. 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 fans in the Gujranwala. They are one of the pioneers
in the fan manufacturing industry in Gujranwala. In Pakistan Super Asia has not only
introduced a large range of Fans, but in different sizes and values as well.

Super Asia in order to maintain its superiority in producing quality fans in the fan
industry of Pakistan, has introduced different models of fans like classic, saver, crystal,
pedestal and other types according to the customer’s affordability. It was an instant
success' due to its design, effectiveness and affordable price amongst the consumers. The
complete range of super Asia fans is of international standard. There are different sizes,
colours in Ceiling, Pedestal, Bracket, Circu-matic and Exhaust Fans.

Research based products of Super Asia, in the fan industry of Pakistan enjoyed a sense of
superiority over fans in the open market. The objective is, however, to offer consumers
fans of international quality at affordable price and other home appliances. This can be
judge by the fact that they are being exported to Saudi Arabia, Dubai, Bangladesh, Sri
Lanka, Sudan and Myanmar from the last so many years, and their demand is growing
day by day.

Pakistan consists of Small and Medium Enterprises, (SMEs) and heavy industries which
form the backbone of its economy. About 60% of Pakistan's SME's are located in the
region of Export Triangle of Pakistan comprising Sialkot, Gujrat and Gujranwala. Gujrat
and Gujranwala are based upon the home appliances especially fans. PEFMA also
considers the fans of Super Asia as a quality fans. Super Asia shows the remarkable
increase in the production of its fans in the fan industry.

They are meeting the demands of their own city as well as the other cities and countries.
In the fan manufacturing industry of Pakistan, they place themselves on the 4 th number
after PAK Fans, GFC fans, and Royal Fans. These three companies are situated in Gujrat.
They also take care of the economy of Pakistan and also the industry and made their

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products according to the requirements of PEFMA, international standards and meeting
local and national wide demands of the customers.

Organizational Chart

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 Services

Follwoing services are provided by Super Asia Company:

• To provide customer prompt, quality and reliable services at their doorstep Super
Asia has a largest after sales service network through out the country.
• To take care of customer appliances all service centers have latest tools,
equipments and machineries.
• After sales service team consist of Engineers and highly qualified staff with great
professional approach due to this reason customer feels confident, once their
appliance are being maintained.
• Super Asia after sale service also provides the facility to customer of lifting their
units from residence to service center and delivering within 48 hours.
• Take care of our customers by remaining in contact with them so that they should
not face any type of problem.

Following are the Address of their branch offices:

• Super Asia sales & service 89 temple Road Lahore. Mob:0300-8406116

• Super Asia sales & service 405 Jinnah colony Faisalabad. 041-647943
• Super Asia sales & service Gulf Plaza Chandni chowk near Gondal CNG Ist floor
Flat no1 Rawalpindi. 051-4843187,0321-5181000
• Super Asia sales & service Ahmad park colony opposite Jamia-Saqlain road near
Khanawal road Multan. 061-770225

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 VISION

“To be the market leader in every of our products,

Nationally and regionally”

Our foremost aim is to think big, be the pace setter and modernizer. Since 1972, being
the market leader in washing machines, we have concrete plans to replicate our best
practices in every of our offerings, across the region. It is the VISION that every
employee of the organization is clear about.

MISSION

“To win the utmost satisfaction, trust and loyalty

Of our valued customers”

Super Asia uses the best prevalent tools to win and maintain the satisfaction trust and
loyalty of its valued customers. Quality, Delivery and Innovation are the core elements of
our philosophy. Stake holders at every level strive to maintain the status quo of the
company, to deliver the best. Continues struggle with commitment is technique to
accomplish this MISSION.

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 Product types, varieties and brands

PRODUCTS
☼ Air Conditioners ☼ Fans

☼ Washing Machines ☼ Room Coolers

☼ Water Dispensors ☼ Geasers

☼ Microwave Ovens

☼ Motor Bikes

Note: Every product has different models.

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 Product types, varieties of
Super Asia Fans
There are four types of Fans are manufactured in Super Asia that are given below:
• Ceiling
• Pedestal
• Bracket
• Exhaust
Ceiling:
Alpha Model Fan:
• Quiet operation
• Specially designed blades
• Wide air throw
• 5-speed on/off regulator
• Work on low voltage
Crystal Model Fan:
• Quiet operation
• Specially designed blades
• 5-speed on/off regulator
• High-grade copper wire
• High-grade silicon steel sheet
Fancy Model Fan:
• Quiet operation
• Specially designed blades
• Die cast aluminum paint
• 16-pole capacitor motor
• International standards
Grand Model Fan:
• Quiet operation
• Specially designed blades
• 2k stove enameled paint
• 5-speed on/off regulator
• 16-pole capacitor motor
• High-grade silicon steel sheet

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Jet Model Fan:
• Quiet operation
• Specially designed blades
• Wide air throw
• 5-speed on/off regulator
• Water proof modles available
• Double "Z" ball bearings
Pretty Model Fan
• Quiet operation
• Specially designed blades
• Wide air throw
• 5-speed on/off regulator
• High-grade copper wire
• High-grade silicon steel sheet
Saver Model Fan:
• Quiet operation
• Specially designed blades
• Wide air throw
• 5-speed on/off regulator
• Water proof modles available
• Double "Z" ball bearings
Turbo Model Fan:
• Quiet operation
• Specially designed blades
• Wide air throw
• 5-speed on/off regulator
• Water proof modles available
• Double "Z" ball bearings

Pedestal:
Louver Fan:
• Quiet operation
• Specially designed blades
• Rust and shockproof
• Revolving grill
• Remote control option
TCP Fan:

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 • Quiet operation
• Specially designed blades
• Rust and shockproof
• Revolving grill
• Adjustable angles
Stand Fan:
• 3 speed and off push button switch
• Available with night lamp
• Height adjustment with 92-112cm
• Die cast aluminum body
• Heigh grade silicon steel sheet
Pedestal Fan:
• Rhythm breeze function
• Specially designed blades
• Height adjustment
• 3-speed on/off regulator
• High-grade copper wire

Others:
Bracket Fan:
• Quiet operation
• Specially designed blades
• Wide air throw
• 3-speed adjustment
• 3 stage up and down adjustment
Table Fan:
• 3 speed and off push button switch
• Available with night lamp
• Die cast aluminum body
• Powder coated guard
• High grade silicon steel sheet
Circumatic Fan:
• Quiet operation
• Specially designed blades
• Wide air throw
• 360 degree oscillation
• International standards

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Exhaust Fans:
Plastic Exhaust Fan:
• Quiet operation
• Specially designed blades
• 1 or 2-way air direction
• Low energy consumption
• International standards
Plastic Exhaust Fan:
• Quiet operation
• Specially designed blades
• 1 or 2-way air direction
• Low energy consumption
• International standards
Metal Exhaust Fan:
• Quiet operation
• Specially designed blades
• Powerful air extraction
• Low energy consumption
• International standards

Sales volumes and trends

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The supervision of sales department is in the hands of sales-promotion manager.
Sometimes he reports to the directors, probably more often to the media and advertising
mangers and frequently coordinates with them, and general manager. Sales management
consists mainly of directing and controlling the details of their sales activities. Sales
promotion is chiefly concerned with devising plans for stimulating sales and methods for
putting these plans into operation. Management is mostly occupied with people;
promotion with plans and methods.

The sales of Super Asia Fans are boating up day by day. According to the marketing
Manager of Super Asia, “We are meeting our target every year”. They produce the fans
according to the demand of the market and also maintain the reserve in their stock during
the off season. They mainly produce the fans in the off season (winter season) and their
sales are on the peak in the summer season. Their main markets are the countries of
South East Asia, north and central Africa and some countries of Europe. The sales of
Super Asia fans are given below (See graphs in appendix):
Years Ceiling Pedestal Bracket Others
2006 72,000 25,000 10,000 15,000
2007 82,000 38,000 12,000 12,000
2008 91,000 41,000 13,000 10,000
2009 93,000 43,000 13,000 8,000

Note: Figures are in units

From the above table it is shown that the sales of the ceiling fans, pedestal and bracket
fans are increasing year by year. The sales of other fans like exhaust, Circumatic, louver,
and table fans are decreasing downwards because people want the other three fans more
due to the price, quality, and durability. Moreover, the economic climate of the country
will also determine the market sales.

Market Share
The market share of Super Asia fan is very low as compared to other fan manufacturers
in Pakistan but they are enjoying the revenues from the production of fans in the region.

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Beside the very strong competition in the market, Super Asia fans are very famous in the
large as well as small cities and towns. They think that their market share is all about
availing the market opportunity and they have a strong market opportunity for capturing
both the existing and potential customers. The fans of Super Asia are the symbol of good
quality and reliability. The pie chart shown below gives the better description of market
share of Super Asia Fans in the Pakistani market.

According to the above diagram, the market share of PAK Fans is very high. They
capture almost 50% or more the Pakistani market. Most of the target customers of the
companies are large cities. They segmentize the customers according to the sales in the
major cities and the international markets. The key indicators which show the market
share of the company are their rates (prices) and the credit policy. Other major factors are
government policies and economic factors. Exports of the Super Asia are also contributed
in boating up its market share.

Growth Rate
Super Asia Private Limited Company made its marketing strategy for nationwide
operations. They have two major networks for sales one is distribution network and other

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is dealer network. According to the past year, the growth rate in the sales of the Super
Asia fans are more than 30 % and growth rate in the production is more than 35%. The
two largest factors that enhance that growth are product quality and the market approach.
Super Asia fans are not compromise on the product quality. They provide quality
products in order to sustain the existing customers and to attract the new customers.

The market approach of the company is also very good. Their strong distribution and
dealer network enhances their sales which in turn create the good impact on the
company’s growth rate. Competitors and the prices of the other fans in the markets are
the major hindrances that affect the growth rate of the Super Asia but according to the
marketing manager of the company they are not compromise on quality so that their fan
sales are continued well and their growth rates are increasing day by day.

Approximately, 80,000 new houses are built in Pakistan and averagely 4 fans are
purchased for each house. This means that 3.2 million fans are required for Pakistani
customers. Super Asia is struggling hard to maintain their growth rate in the production
and sales of their fans so that they can increase their share in that number of fans but the
major industry in Gujrat will take the lead in the run of Growth rate. According to the
marketing manager of the company, if the government stabilizes the prices of raw
material, makes the tax rates more flexible on both imports and exports then the growth
rate of Super Asia Fans will increased more. Moreover they also increase the number of
labors, specialized staff and technology to increase the growth rate of the fans.

Demographic Features
Customers’ wants and needs are changes with the time. So with the passage of time, a
company also changes their products. Same is the case with Super Asia Company. The

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fans of super Asia company changes with time to time and they introduce the new and
attractive models for their customers. Demographically they design their fans with
innovative styles and colour combination so that the person from every age group will
like their fans. If we consider about men and women, women are more conscious and
involved in the buying of fans. They are going to the shop and like the fans according to
their own choice. For that reason the company made the colour combination in the fans
that are liked by the women.

In the case of youngsters and married people, their choice is all about the same. Both of
them can afford the saver model and the pretty model. The educated person when came to
buy the fan he negotiates with the dealers and distributors about the quality and features.
He also claim that features. He first research about the features of the fan and then he will
purchase the fan. Saver, Deluxe and Alpha model is purchased by the most of the
educated person because he wants the price and quality both. The income level is also
very crucial element in the customer buying process. All the social classes, educated and
uneducated persons buy the fan according to their choice but they also keep in mind their
income level. Super Asia manufactures the fans by keeping in mind that factor. The most
famous fan that have low price and good quality and more and more customers’ buy it, is
a saver model.

Middle class are the main target of the Super Asia fans and many of their fans are
manufactured on the basis of these target customers. Some high price fans are also
manufactured to target the elite class but these are in nominal amount. Caste system in
Pakistan has not a strong impact on the purchasing of the fans. It is somewhat replaced by
the income level. The last but not the least, the family size will have a great impact in the
sale of the fan. Most of the families having huge family size buy the saver and alpha
model but the small families buy both saver and pretty model.

Life Style and Patterns

Super Asia made its fan by also considering the factor of life style and patterns. In
today’s world when the people became more sophisticated and educated. Their lifestyle

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and patterns of living changed. In earlier times, people prefer the fan with heavy weights
but now people want the light weight fans with good colour combination. So the
company manufactures various types of fans so that it will need the demands and choice
of every customer. Heavy weight fans are also manufactured by the company to target
these types of customers but they are in a negligible amount.

When company made its fan, in the designing phase they consider the life style and the
pattern of living in the manufacturing process. People in the large cities prefer both the
luxurious (pretty, alpha, turbo fans) and economical fans (saver fans). But in the small
cities, towns and villages people prefer more the economical fans. The advertisement of
the fans is also made according to the lifestyle and usage pattern of the customers. Super
Asia Fans are liked by every type of personality. This means that company’s various
models of the fans are liked by the people according to their own personality.

Usage Pattern and Behavior

Super Asia divides its markets on two variables on the usage pattern. These are given
below:

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 1. Customers who used more fans
2. Customer who used less fans.
Karachi, Lahore, Islamabad, Faisalabad, Multan, Sialkot, Gujrat, Gujranwala, Rawalpindi
and Islamabad are the cities in which Super Asia fans are used more. The strategy of the
company in launching its fans is approximately the same for every key area. They remain
in contact with the both type of users by the postal, telephonic and internet resources.
Highly usage customers prefer the light weight fans like Saver, alpha, and turbo model
because they do not want to change the fan again and again. They buy the fan for the time
of 5 to 6 years. Lightly usage customers bought the fans just for a decoration piece in
their drawing rooms, bed room and TV launch. They rely on Air conditioners and use the
fans just for the sake of the spreading of the cool air in the air room.

Super Asia company is focus on both lightly the heavily usage customers because both
types of customers provides them good feedback about their fan in order to improve it.
The reason for the heavily usage of Super Asia fans is of the product quality and
durability.

Several behavioral patterns are also kept in mind while designing and selling a fan.
Company conducts the survey though the dealers because this the good channel for
receiving the feedback from the customers. Super Asia think that the customers purchase
their fans according to their attitudes, beliefs, benefits associated with the fans,
involvement to the design and satisfaction about the fan. Whenever, any customer comes
to purchase the fan they made decision on the shop by either the motivation of any other
customer or get satisfied from the features of the fan. Moreover there is a factor of brand
loyalty in the minds of the customers so that the sale of their fans increases. So by
keeping these all above behavioral patterns company design its fans and launch more and
more models in order satisfy the customers and capture more markets.

Preference for specific benefits

Customers buy products not only with their features but also for their perceived benefits
that the product delivers. According to the marketing department of the company, the

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main purpose of their product is to provide quality and durability to its customers. They
are also concerned with the appearance and packaging of their products. According to
their view, their product should not only work accurately but it must look beautiful when
placed in the house or in the shop.

Mainly the customers are buying the fans of Super Asia for the factor of good quality. In
the long run, the fans of the company, saves the money, and cost of the company.
However the company’s fans are little bit costly but they provide quality in their fans.
People who purchase their fans feel ease of using their products in the long run.
Moreover they provide after sale services in every city where their distributors and
dealers are available.

The benefits which are perceived by the customers about their fan that is really different,
better and unique as compared to their competitors are:

• Basic quality of their products

• New designs
• Innovation in the product.
• Durability
• Low costs
• After sales services

Advertisement and Promotional programs

In Super Asia Company Private Limited there is a separate marketing department which
performs all the essential marketing functions that are suitable for the company. In the

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marketing department there are 25-30 employees are working. There is a fixed budget for
the marketing activities in the company. From the total budget the marketing department
consumes the 2.5% to 3.5% of the budget. Super Asia Company spend on advertisement
for remain in the market relative to their competitors. The biggest selling points of the
company are Lahore, Karachi, Rawalpindi, Faisalabad, Peshawar etc, but this also
depends upon the per capita income of the people living in that city. The company
conveys their goodwill, past experiences and quality with their fans when give an
advertisement of the fans. There is no fixed number of advertisements both on print and
electronic media. When ever the company wants it launch the advertisement. This
decision is based upon the budget of the company. It mostly depends upon the season. If
there is the season of the fan then the advertisement runs but after the season they will
drag the advertisement and launch the new one for their next seasonal product.

According to the marketing department of the company, it is strongly important that a

beautiful model displays their fan in the advertisement because the people get very
satisfaction when they see that a popular model uses their fan. So, it is an encouraging
tool for promoting their sales of the fan. The company also performs the international
marketing by giving their advertisements in the international channels like HBO, Star
World, Filmax etc and the internationally watched Pakistani channels like ARY Digital
network, GEO TV network etc.

The promotional tools which are used by the company for the marketing are:
Advertisement including print, electronic and internet etc, brouchers, exhibition
attendance and bill Boards etc. moreover the loyal customers of the company also do
publicity of Super Asia Fans.

Pricing practices

Pricing in the Super Asia for fan is done by the fan manufacturing unit. The quality
control officers and the persons in the manufacturing unit conduct a meeting with the
board of directors to set the prices of the fans and also for the raw material purchased. In
setting price, Super Asia has following things kept in mind:

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 • List price
• Discount price
• Allowances
• Payment period
• Credit terms

Super Asia provides all the list prices of fans to its dealers and asks them to provide the
discounts to the customers. The company provides different types of allowances like
prizes and lucky draws but these are not frequent. The company also deals with the
dealers on credit basis. Super Asia keeps the price of the fan relative to its competitors in
order to sustain the market but didn’t compromise in the cost. In order to reduce the price,
the company first checks the quality status. If there is a possibility of good quality in the
low price then it reduce the price. Fan manufacturing industry also has a significant
impact of the price of the fans. The costs of the raw material also have the significant
effect on the prices of the fans. The costing methods used to set the price of the fan in the
company are:
• Standard Costing
• Process costing

Relationship with dealers and distributors

Super Asia Company has a very strong relationship with it dealers, and distributors.
There is a dealer convention every year launched in the company so that the dealers and
distributors from all over the Pakistan interact with each other and also from the
company. Moreover, company remains in contact with dealer via phone, postal and
internet resources. The company gives the feedback forms to all the dealers for their

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product feedback and they considered their dealers and distributors as the good source of
receiving feedback from the customers. Super Asia also offers Ummrah packages for its
dealers. Company provides the discount to the dealers on its products. That is also a great
sign of good relationship between the company and the dealer. Basically the company has
two major channels at which the company sells the fans and other products are:

Distributor channel:

There are 7 distributors of Super Asia in the cities of Lahore, Faisalabad, Multan,
Hyderabad, Karachi, Rawalpindi, and Gujranwala. These distributors have warehouses
where they supply the products to the sub dealers.

Dealer channel:

There are number of dealers in all over the country and company sells its product directly
to those dealers.

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 SWOT Analysis
Strengths:

• The company has built up goodwill in the market of Pakistan, from a very long
time.
• The company has the largest market share throughout the country in the Washing
Machine industry and now striving to maintain and increase its share in Fan
industry as well.

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 • Brand name of Super Asia is known to almost every person in the country and is
very famous in home appliances industry.
• The company deals in all sorts of home appliances, like Washing Machine,
Spinners, Air Conditioners, Fans, Geysers, Water Dispensers, Room Air Coolers,
Microwave Oven and Cooking Range.
• Super Asia has launch the food chain with the famous food chain in America
• Continuous achievement of FPPCI exports Trophy.
• Super Asia is exporting its products to various regions across the globe mainly
markets like Africa, Middle East and Asia.
• The company is having a number of old employees who are committed and loyal
with the company.
• Super Asia offering benefits like medical facilities in the company hospital and
advance pay etc.
• A large number of models are available in the range of every product especially
fans.

Weaknesses:

• Technical labor and management of the company has the negative views about the
salaries and wages.
• Shortage of skilled labor in the company due to large competition.
• Low advertisement budget
• Most of the managerial staff is not well educated.
• The salaries of management staff are very low due to which the well educated and
experienced people does not come for the job in company.
• Same promotional strategies for international markets

Opportunities:

29 UMT Lahore
 • Super Asia has opportunities to increase their exports of fans in order to increase
the market share.
• Introduce the latest technology in their products and in manufacturing units.
• More budget can be allocated on electronic and print media for advertisement to
increase their sales.
• Exhibit their products in international exhibitions.

Threats:

• Chinese Technology can decrease the sales of fans and other products
• Lower prices of competitor’s products.
• Current Power & Electricity crises are very big hurdle for the manufacturing unit
of the company. Due to the shortage of electricity the company may be unable to
meet the orders.
• Market demand is very seasonal.
• Retention of key staff critical.
• Possible negative publicity.

Conclusion

Marketing Function is labeled as the back bone of a company. If not properly done, it can
cause disruptions and deterioration in other functions as well as overall efficiency of the
organization. In Super Asia Fans, the marketing functions are done properly. The
marketing department is doing his job well. It is also make its marketing strategies and

30 UMT Lahore
fans by keeping in mind the demographic, life styles, usage and other benefits perceived
by the customers. With better quality people executing the company’s marketing
operations the marketing department can create a competitive advantage for the company.

Recommendations
• The allocation of the budget to marketing department is insufficient. The
company allocates 2.5% to 3.5% of their total budget to their marketing
department. Increasing marketing budget will boost up the sales. The increased
amount of sold units will cause a reduction in per unit fixed cost resulting in
better price competitiveness.

• There is no sales force training programs. Sales force training programs must be
introduced on continuous basis so that sales force has understanding with the
latest developments especially with the customers.

• Company’s different schemes must be conveyed to the targeted customers so that

to increase the share in market.

• Enter in the new markets for the sale of the fans and other products.

Reference
• http://www.theodora.com/wfbcurrent/pakistan/pakistan_economy.html

• http://www.jang.com.pk/thenews/investors/may2003/if.htm

31 UMT Lahore
 • http://www.superasia.biz/aboutus.html

Graphs
Ceiling Fan sales Pedestal Fan sales
Bracket Fan sales Other Fan sales

100,000 50,000
14,000 16,000
12,000
80,000 14,000
40,000
10,000 12,000
60,000 30,000
10,000
Units

Units

8,000
Units

Units

Series1
Series1 8,000 Series1
Series1
6,000
40,000 20,000
6,000
4,000 4,000
20,000 10,000
2,000 2,000
00 0
2006
2006 2007
2007 2008
2008 2009
2009
32 2006 2007
2007
UMT Lahore
20082009
Years
Years Years