Report

on

Marketing Strategy Analysis of Walton

Bangladesh Ltd.

1
 Report

on

Analysis of Marketing Strategy of

Walton Bangladesh Ltd.

Prepared for

Md. Shah Alam Kabir Pramanik(Rana)

Lecturer; Dpt. of Marketing.

Bangladesh University of Business & Technology(BUBT).

Submission Date: 10th January, 2015.

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Submitted By-

GROUP NAME- Pro.

GROUP NO- 04(Int. 33 Sec-9)

List of Group Members:

S.R ID NAME MARKS MARKS

1 13142101374 Forhad Naeem
(01682078123)

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 Letter of Transmittal:

10th January, 2015.

Md. Shah Alam Kabir Pramanik.
Lecturer
Department of Marketing (BUBT)
Mirpur-2, Commerce College Road.
Dhaka-1216

Sir,
With all due respect, we are here to submit the following report on the marketing
analysis of Walton Bangladesh according to the instructions given by you.

After going to several Walton showrooms in Dhaka and doing a thorough online
research on Walton Bangladesh, we have been quite successful in collecting
necessary background information about Walton Bangladesh. A survey among the
existing and prospective Walton users also helped us to understand the market
trend, their marketing strategy, marketing mix, target market of the company,
positioning, the consumer behavior. The following report is the result of our
findings and efforts.

We appreciate this opportunity to work under your instruction.

Sincerely Yours,

Forhad Naeem
Bayazid Rahaman
Tanvir Shahriar
Anwar Parvez
Intake-33
Section-9
Program: BBA, fall semester, 2014-15

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 Acknowledgement

At first we desire to express our deepest sense of gratitude to almighty Allah.

With profound regard we gratefully acknowledge our respected course instructor

Md. Shah Alam Kabir Pramanik(Rana), for his generous help and day to day
suggestion during preparation of the report.

We like to give thanks especially to our friends & seniors for their enthusiastic
encouragement and helps during the preparation of this report by sharing us ideas
regarding this subject and for their assistance in making the report healthy.

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 Executive Summery
This report was commissioned to analyze and evaluate the marketing strategy of
Walton in a growing domestic electronic market. The research reveals that in a
continuously growing market, Walton has become a reliable name for customers.
Countrywide network, inclination towards quality and dedicated team of
employees are the main causes of its success. Though it had started business with
home appliances, yet it has always been committed to satisfying customer
demand by introducing new products. Recent production and selling of
motorcycle and air-conditioner testifies that position of Walton.

Walton has a goal to double overall market share in the next 5 years. It has
successfully positioned itself as a customer friendly and eco-friendly company. Its
after sales service has contributed tremendously in building this image in
customers’ minds.

Since its target market is middle-income people, the price of their products is
comparatively lower than those of competitors’. This strategy helps the company
greatly in a price sensitive consumers market. In recent years Walton has increased
promotional activities through organizing various national sports events.

Further investigations have revealed that to achieve the role of market leader, it
will face challenge from foreign brands. Moreover, rapidly growing demand from
customers for electronic products may put pressure on Walton. It has adopted
market penetration, product development and market development strategy
for future growth.

The report has found the prospects of Walton promising in its current position.
Favorable government policy will help it expand domestic and international
markets in the future.

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 Table of Contents

SL No Topics Page
A Prefatory Part
01 Title Fly 01
02 Title Page 02
03 Student declaration 03
04 Letter of Transmittal 04
05 Acknowledgement 05
06 Executive Summery 06
07 Table of Content 07
B The Report Part
08 Introduction of the Company 08-09
09 Different SBUs 10-11
10 Marketing Segmentation of Walton 12
11 Target Market 12
12 Differentiation 13
13 Product Positioning Strategy 13
14 Marketing Mix of Walton TV 14-16
15 SWOT Analysis 16-18
16 Conclusions 19
17 Bibliography 20

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Walton (company)
Walton Hi-Tech Industries Limited Bangladesh

"আমাদের পণ্য" "It's our product"

Type Private Limited Company
Industry Conglomerate
Founded 1977
Headquarte Jiban Bima Bhaban(Level- 3), Dhaka,
rs Bangladesh
Area served Worldwide
Key people S.M. Nurul Alam Rezvi (Chairman)
Consumer Electronics, Automobile,
Products
Mobile Phone, Home Appliances
Number of
16000+
employees
Slogan Made in Bangladesh.

Walton (Bengali: ওয়াল্টন), a brand of R.B Group

of Industries is a conglomerate based in Dhaka,

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Bangladesh. It comprises numerous subsidiaries and affiliated businesses, most of them united
under the Walton brand. The subsidiaries include Walton Motors, Walton Mobile and Walton
Electronics. Walton produces electronics, motor vehicles, and telecommunications products.

R.B Group of Industries was founded by S.M Nurul Alam Rezvi in 1977 as a trading company.
Over the next three decades the group diversified into steel, textiles, electronics and automobiles.
Walton entered into the steel industry in late 1970s and the electronics and automobiles in early
2000s; these areas would drive its subsequent growth. Since the 2000s Walton has expanded
towards electronics and automobiles and these became its most important sources of income.

Walton is one of the highest taxpayers in Bangladesh and has a strong impact on country's
economy. It was awarded for its export revenues. Walton received awards at the 2013 Dhaka
International Trade Fair (DITF), including one for paying the most taxes.

Website: www.waltonbd.com

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 Product
Walton has a good number of products available in the market. The company
products, home appliances, mobile, generator and motorbike. A brief description of
its major products is given below:

Refrigerator:

Walton mainly produces home appliances. In fact in its website the company is
introduced as the pioneer in refrigerator production in Bangladesh. Walton
refrigerator & freezer ensures highest quality compressor, condenser is made by
100% copper, which lasts for 20-30 years. The most important thing is that every
spare parts including door with different color are changeable and available
everywhere over the country.

Television:

Walton produces LED, LCD, and CRT televisions. Walton television ensures
home cinema entertainment. Walton Television’s d4ta Digital Technology is one
of the most innovative technological solutions that automatically reduces video
noise, Selects the best picture and performs fine-tuning by auto frequency tracking
technology.

Motorcycle:

Walton motorcycles are now competing with the Indian Hero-Honda and TVS
brand. The motorcycles have become famous because of the special specification
like mobile phone indicator, digital gear display, fuel location meter, air shock
absorber, remote control, hydraulic brake, anti-Theft lock and alloy rim etc.
Walton motorcycles are also fuel-efficient.

Other than these products Walton also produces Mobile handsets, generators, air
conditioners, DVD players, and microwave ovens.

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11
Several SBUs of Walton

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 MARKETING SEGMENTATION
Of
WALTON BANGLADESH Ltd

This company has mainly 2 major segmentation variables for consumer markets.
They are-

Demographic Segmentation –

Here, the company put much emphasize on the income of consumers.

a) Income: They divide a market into different income groups.

Behavioral Segmentation –

Here, the company put much emphasize on the benefit and status of the consumers.

a) Benefits Sought: They divide the market into groups according to the
different benefits (quality, service, economy, convenience, speed) that consumers
seek from the product.

b) User Status: The market of Walton Bangladesh Ltd. is segmented into non-
users, ex-users, potential users, first time users & regular users of a product. They
want to reinforce and retain regular users, attract targeted non-users and
reinvigorate relationships with ex-users.

TARGET MARKET
Walton’s primary goal is to capture the local markets of Bangladesh

Bangladesh with its growing population and economic growth has huge demand
for household products. The fact that only about 60% of the country has electricity

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available proves that when electricity will be available throughout the country,
demand will increase further. As the people of this country are mainly price
sensitive, Walton, being the sole manufacturer of refrigerator, freezer and
motorcycle, is very keen to meet the demand of this large market by providing
competitive prices. Walton’s primary goal is to capture the local market, as they
are still behind market leader LG-Butterfly. But they are also exporting their
products. Already they have customers in Myanmar, Bhutan and to expand their
market to Africa.

DIFFERENTIATION
Walton gives importance to 2 major thoughts in case of differentiation. They are-

Identifying Possible Value

Differences & Competitive Advantage

Others are-

Channel Differentiation
Product Differentiation
People Differentiation
Image Differentiation

Product Positioning Strategy

Positioning as a native product-
They target native products for positioning.

Product positioned as the “Same for Less”-

They try giving the same product in less price than that of competitor’s assuring the same
quality.

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 “MARKETING MIX”
The 4Ps of
Walton Television

PRODUCT :
Walton Television is a Consumer Product.

Product is recognized through their unique and excellent-

Branding.

&

Labeling.

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 PRICE:

Product name Size(inch) Price(TK)

Walton CRT TV 26 15,400
Walton LCD TV 32 44,700
Walton LED TV 42 2,50,000

Price comparison of Walton TV

With other companies

Model Walton LG Sony My One

29” color TV 18,500 28,350 26,350 22,700
37” LCD TV 48,800 65,600 59,500 -
42” LCD TV 75,200 95,000 88,000 -
From the chart above, We can clearly see that the price of Walton TV is less than the other
companies.

Place:

MANUFACTURER DEALER CONSUMER

PROMOTION:

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Promotional activities of Walton TV are mainly done through-

a) PACKAGING

b) PUBLIC RELATION

c) PUBLICITIES

d) POLITICS etc.

SOWT Analysis

Strengths:

• Largest electronic base in Bangladesh

• Strong distribution channels and customer service

• Leadership in product development and services

• Good Human Resource and Infrastructure Installation all over the country

• First service advantage

• Well-recognized brand name and reputation

• Loyal Customer Base

• High Ethical Standard

• Experienced management team

Weakness

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• Limited items.

• It has management problem.

• Too much inside out thinking in the company.

• Different departments not working together.

• Sometimes a tendency to be ignores.

• High employee turnover.

Opportunities

• Its more show rooms.

• No long-term Distribution/Channel strategy.

• Focus on additional requirement.

• Improved technological improvement and network coverage.

• Increased socialization.

• Demand for new & innovative products.

• Provide online buying facilities.

• Increase the brand value though initial offering.

• New and better interconnection of distributor.

• Huge need for electronic services.

• Declining prices for Walton handsets.

• Economic growth of Bangladesh.

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 Threats

• Aggressive marketing from company.

• Price war.

• Switching power of customer increased.

• More rigid government regulations.

• Increased marketing/operating costs.

• Increased bargaining power of the consumers.

• Sabotage of installation.

Strategy
Walton always try to make the best possible services. Moreover, it does not
promise any specific quality standards in service. Walton now try to give service
all side in our country. Walton tries hard to offer the best service quality, though,
the quality, consistency and accessibility of service is not guaranteed as the same
are dependent on various technical, physical, topographical, distinctive,
environment, regulatory, legal, and such other factors. Walton has the right to
change /very / reduce the extra charges, prices, validity period, product/service
feature and any other offers etc at any time in its sole carefulness for any reason
subject to official notification of such offers prior to giving effect to such changes.

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 Conclusion
The company has been running its business with good reputation since 177.
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 is the first company to
introduce advanced research and manufacturing technologies and equipment for
household & commercial Refrigerator & Freeze, Motorcycle and Air Conditioner
etc. in Bangladesh. For Bangladesh, Walton has become a company to be proud of
in the export arena. Walton has truly redefined Bangladesh from being a consumer
country to a producer country for home appliances.

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 ReferenceS:

1. “ITALTEL’S new chief gets what she wants” business week, april 30.
1984,p.51;Robert ball, “italy’s most talked-about executive,” fortune,
april 2, 1984, pp. 99-102;marisa bellisario “the turnaround at
ITALTEL,” LONG RANGE PLANNING, VOL. 18, NO. 6

(1985), pp.21-24.

2. Zachary schiller, “a model incentive plan gets caught in a vise,”

business week,January 22,1996,pp.89-90;caroiyn wiley, “incentive plan
pushes production” in Arthur A.thompson,jr,a.j.

3. Susan scherreik, “your performance review:make it perform,”business

week,December 12,2001,pp.139-40.

4. http://walton Bangladeshlimited.edu/cahrswp/414,accessed November

13,2008

5. Michale totty, “the dreaded performance review,” the

wa;bdllstreetjournal,November
27,2006;http//www.halogenoftware.comirl.cornell.edu/cah..

www.waltonbd.com

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