Problem Definition of “Walton” for foreign brand of Refrigerator, LED TV, Mobile

Phone.
Walton is the latest multinational electrical, electronics, automobiles and other appliances
brand with one of the largest well equipped R & D facilities in the world carried out its
production through different subsidiaries under the banner of Walton group headquarters in
Bangladesh. Today, Walton has a workforce of more than 20000+ in total 22 production
bases under 680+ acres of factory area. The capacity of yearly production is 10 million units
based on the market demands. Walton is the giant professional manufacturer in the relevant
industry and has gained high reputation in terms of its unbeatable capability for producing
Electrical and Electronics goods in the most competitive way in aspect of quality, cost, design
and innovation. Along the way, Walton has earned domestic and global recognition for its
experience and proven track record in a variety of electronics fields. Walton is the pioneer of
developing state of the art designs and modern technology having leading market share
specializing in Multi-Stored Refrigerators, Freezers, Air Conditioners, LED/ LCD
televisions, Motorcycles, Smart Phones and Home Appliances. WALTON has established a
milestone as the highest exporting Bangladeshi enterprise in the field of electronics, with a
universal presence in over 20 countries and by 2020 the presence of Walton will be ensured
almost every country in the world. Business started since 1977 and early 2008 WHIL started
manufacturing of Refrigerator, Freezer, Air Conditioner, Compressor and now onward
expanding its operation in Television, Home & Electrical Appliances. Walton & Marcel have
become the most trusted and prestigious Brand in the E&E industry in Bangladesh through its
strong manufacturing base, quality products, competitive price, extensive market coverage
and last but not the least, the prompt after sales services. As a result, within a very short
period of time, both the Brands have captured substantial market share and positioned itself
as the most dominant performer in the E&E sector in Bangladesh. Product portfolio of WHIL
includes Refrigerator (Frost & Non-Frost), Freezer, Air Conditioner, Compressor and
Television. Walton has been maintaining 100% compliances since its inception and certified
ISO 14001:2004 Refrigerators & Air Conditioner Division, ISO 9001:2015 Refrigerators &
Air Conditioner Division and OHSAS 18001:2007 Certificate for successfully adopting
sound occupational health and safety management systems, efficient staff management,
minimizing the risk of accidents and achieving adequate corporate reputation ensuring the
standard of products and combining the above to minimize the production cost. Walton is the
No. 1 Manufacturer and Exporter of Refrigerator, LED TV, Mobile Phone, Walton has
achieved many international & national awards and recognitions like some recent prestigious
and best business awards are: The Golden Globe Tiger Award 2015 in the category of
Excellence & Leadership Brand, DHL-Daily Star Bangladesh 15th Business Award 2014 for
Best Enterprise in Bangladesh, Asia Best Employer Brand Awards in 2015, Six times 1st
Prize for Highest VAT Payer at DITF-2015, 2014, 2013, 2012, 2011 & 2010 respectively,
Second Prize for Premier Pavilion Category at DITF-2015. But Walton now facing
Comparatively low sales growth in mobile phone industry in spite of having reasonable
price range in city outlets.

SWOT MATRIX
Opportunities
 Achievement of sales growth
through into of new product.
 Introduction of sales in major
cities.
 One of the local companies to
export mobile phones.
 Tax break on import of part.
 New Invention &
Technology.
Threats
 Unethical competition prevailing
in the market.
 Market share dominated by foreign
brands.
 Compare like Symphony in line of
their own manufacture plant in the
country.
 Price Inflation.
 Competitors new product &
innovation.
Strengths
 Local brand loyalty &
Image.
 Manufacturing plant
very near to capital.
 Qualities in all 65
districts.
 Wide range of
products.
 Good Quality in low
price.
Possible Strategy (S+O)
 Sustaining established
brand loyalty image by
introducing new product to
expand sales.
 Providing wide range of
products at low price than
competitors.
Possible Strategy (S+T)
 Expand market position
due to better high local
demand than competitors.
 Low manufacturing cost
and product differentiation.
Weaknesses
 Unable to attract high
income group.
 New in market.
 Less reliability &low
trust.
 Unskilled marketing
employees.
Possible Strategy (W+O)
 High configure product
attract high income
group.
 Provide after sale service
to capture more reliability
&trust.
Possible Strategy (W+T)
 Withdraw business from
Bangladesh.
Evaluation of the alternative strategies from our quadrant
1. Expanding brand loyal by introducing new phone to expand sales.

Advantages
 High product recognition
 Sales volume increase
 Attract city customers
 Strong entry barrier for new competitors

Disadvantages
 High cost involved
 Non-Availability of skilled man power

2. Provide after sales service to capture more reliability & trust.

Advantage
 Increase in local demand
 More satisfied target customer
 Lower rate of brand switching
Disadvantages
 Expensive to implement.
 Training employees consume time a lot.
 Lack of after sale service acknowledgment.

3. Expand market position targeting local demand than competing

foreign goods

Advantages
 Increase market share
 Demand for local brand increases
 Expansion in national income

Disadvantages
 Inefficient marketing employees
 Ambiguity in market position
 Risky foreign competitors

Best Alternative Selection

Expanding brand loyal by introducing new phone to expand sales.
 Budget for Walton Company

Particulars
Fixed Cost
Research & Development
 Survey (6zone,30 per zone, 2
days @200) 72000
 Additional cost of research 80000
Advertisement 400000
TV 50000
Radio 300000
Newspaper
200000
Social Media promotion

Variable Cost
Purchase price 35,00,000
(1000unit@ 3500) 2,00,000
VAT ( 1000 unit @ 200) 3,00.000
Software installation ( 1000 1,00,000
unit @300) Packing
Distribution Cost Per Unit
3,00,000
• Dealers commission (1000 unit @ 300)
1,00,000
• Transportation cost ( 1000 unit @ 100)
Total Cost 56,02,000
Implementation

What How When

Research & Development Within next 1month  Survey on targeted local
for consumers.
manufacture  Finance department needs to do
cost analysis.
 Market demand analysis by
experts.

Promotional activities Within next 6 months  Marketing department must

prepare budget for promotional
activities
 Formulate buzz marketing,
mouth to mouth marketing, e-
commerce marketing to reach
expected sales growth
 Monitor customer response to
promotional activities.
Distribution Within next 2 months  Contact local distribution
channels to meet the market
demand.
 Prepare cost analysis for packing
& distribution activities.
 Ensure skilled SCM department
for effective distribution.
Conclusion
After implementing the strategy for overcoming the problem of Walton, it will earn more
market shares in city malls than before. The profitability will be maximized if proper market
demand can be applied. It is going to be little costly process but for high achievement target,
it’s necessary. If the implementation process goes well, Walton will be one of the top mobile
companies in Bangladesh & abroad. It would achieve a significant earning in GDP of
Bangladesh.