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COMSATS INSTITUTE OF INFORMATION TECHNOLOGY ISLAMABAD
BRAND MANAGEMENT FINAL PROJECT
SUBMITTED TO : SIR LAEEQ JASWAL
SUBMITTED BYB: AKHLAQ HUSSAIN SHAYAN LATIF SP08-BBA-091 SP08-BBA-084
Date: 28th november 2011
TABLE OF CONTENTS Introduction………………………………………………..04 Details of products…………………………………………07 Summary…………………………………………………...12 PESTEL analysis…………………………………………...13 Strategies for launch……………………………………….19 Target audience…………………………………………….23 Media of promotion………………………………………..26 Justification of advertisement…………………………...…28 References……………………………………………….…30
and showed that distance transfer of electrical power could useful economically. when Emil Rathenau who had acquired licences to use some of Thomas Edison’s lamp patents in Germany. later becoming vice-director. In 1884 the Munich-born engineer Oskar von Miller (who later became the founder of the Deutsches Museum) joined the executive board. His work on polyphase electric power led him to become the world's leading engineer in 3 phase electric power systems at the end of the 1880s. This success marked one of beginnings of the general use of alternating current for electrification in Germany.this date is considered to be the birthday of the German electrical industry. with Emil Rathenau as company director. In 1887 Mikhail Dolivo-Dobrowolsky joined the company as chief engineer. The Deutsche Edison Gesellschaft ("German Edison Company") was founded in 1883 with the financial backing of various banks and private individuals. where it lit 1000 light bulbs and drove an artificial waterfall .at the International Electro technical Exhibition in Frankfurt am Main.being the first electric tram system (of notable size) in Germany. In 1891 Miller and Dobrovolski succeeded in demonstrating the transmission of electrical power over a distance of 175 km from a hydro electric power plant in Lauffen am Neckar to Frankfurt. In 1887. 4 . The original factory was located near Stettin bahnhof. The same year the company entered negotiations with the Berlin Magistrat (the municipal body) to supply a large area from a central supply. which resulted in the formation of the Städtische Elektricitäts-Werke AG zu Berlin (AGStEW) ("City electricity works company (Berlin)") on 8 May 1884 . in the same year the Stadtbahn Halle/Saale (City railway Halle .Saale) is opened . in addition to a restructuring and expansion of the production range the AEG name was adopted. In the same year. the Company acquired land in the Berlin-Gesundbrunnen area on which the Weddingsche Maschinenfabrik (founded by Wilhelm Wedding) was previously located.INTRODUCTION:HISTORY:The origins of the company can be traced to 1882. Additionally.
In 1894 the site of the former Berlin Viehmarktgasse (cattle market) was purchased. This had a siding connecting to the Berlin rail network produced. AEG products are developed and manufactured with meticulous attention to detail. electro-chemical plants. Precision German engineering means unrivalled features. In 1903 the competing radio companies of AEG with and of Siemens & Halske are merged forming a joint subsidiary company with the name Telefunken. he has since become considered as the world's first corporate designer. electric railways. as well as the construction of steam turbines.und Hussitenstraße 1894-95. Emil Rathenau died aged 77. the company had many factories in and around Berlin: On the 20th June 1915 the founder. function and performance. but there was no rail connection between the two plants . In 1907 the architect Peter Behrens became an artistic adviser. Responsible for the design of all products. The activity of the company soon extended to all areas of electrical power engineering. automobiles. SOME CHARACTERISTICS OF AEG APPLIENCES:Advanced Engineering From Germany: AEG stands for Advanced Engineering from Germany.this is now the Spree tunnel Stralau . The tunnel was implemented by Siemens & Halske (S & H) (later to become Siemens) under the direction of C. advertising and architecture. using the best of modern design and the very latest technology. Schwebel and Wilhelm Lauter .used by public transport.Tropp Paul began his work for the AEG 1889/90 until 1893. versatility and reliability along with superb aesthetics to enhance your kitchen design. and Franz Schwechten designed the facades of the Acker. 5 . in particular to electric lighting.therefore in 1895 a link between the two plots was built as an underground railway in a specially designed tunnel of 270 meters in length. All appliances offer outstanding performance. cables and cable materials. electric power. In the first decades.
Waste is kept to a minimum and recycled wherever possible. and the safety thermocouples on gas cook tops ensure that if the flame goes out. construction of products. including parts and labor. making it a consideration throughout the supply chain. the recycling of appliances and packaging materials once they have reached the end of their lifespan. As a result. AEG engineers work hard to include features that avoid accidents. products and services. That’s why AEG appliances are always designed with these factors in mind. Here are a few facts about AEG’s commitment to our planet: • Recipient of the European Commission’s prestigious Sustainable Energy Award in the Corporate Commitment category. KBB Review Industry. Use of the latest technology allows us to produce appliances using fewer types and smaller quantities of raw materials. Caring For the Environment AEG has always been committed to minimizing the amount of electricity. Award-Winning Design AEG appliances integrate seamlessly with both European flavor and traditional North American cabinetry. not only helping to care for the environment. Many of our cook tops are equipped with a child safety lock and an auto-safety switch off. Two Year Warranty AEG offer a two year warranty. and ultimately. 6 . AEG’s environmental policy minimizes the ecological impact of every appliance at each stage of its life. from the procurement of raw materials. • Nearly all of AEG’s production facilities have received ISO 14001 designation. delivery methods. AEG exceptional designs have earned accolades including awards from reddot. recognizing their continued commitment to reducing energy consumption in production facilities. Warranty is subject to registration and conditions of warranty.Safety in Mind Customer’s safety and health are of paramount importance to AEG. ensuring that your kitchen is a relaxing place to be. the gas stops flowing immediately. AEG’s Green Approach AEG has adopted a 360-degree approach to sustainable design. many of AEG’s appliances achieve impressive ‘A’ energy performance in the European rating system. on our range of AEG appliances. water and detergent used by household appliances. but saving money for users as well. from manufacture to disposal. and Good Housekeeping magazine.
AEGElectrolux’s new range of built in and under-counter double ovens now feature UK market leading innovation ‘A’ energy rating in both ovens. and 50% less energy than those manufactured in the 1980s. dishwashers. the latest technology and the most energy efficient range. Electronic interactive LCD displays and digital cooking with temperature recommendation ensure complete control of the cooking process. • AEG Lavamat washing machines have received A+ ratings in Europe—the highest possible. DIFFERENT PRODUCTS Ovens Ovens features: AEG-Electrolux’s full size multifunction single oven with fully integrated steam functions or our new advanced multifunction single oven with digital auto-cooking achieve perfect results every time. The latest Avantgarde technology takes all the guesswork out of cooking and all AEGElectrolux standard single ovens are ‘A’ energy rated for optimum performance. cadmium. • Washing dishes in an AEG dishwasher actually consumes less water.• Since 2000 AEG has reduced energy consumption in its washing machines. receiving several design awards including the prestigious IF Product Design Award 2008 and the Red Dot Design Award 2008. The appearance of our ovens coordinates perfectly with all other kitchen appliances to enhance the appearance of every kitchen. mercury and chromium in the manufacturing of appliances and electronics. for excellent economy. a European directive that calls for the reduction or elimination of potentially harmful substances such as lead. and ovens by 25% to 30%. All AEG-Electrolux single and double ovens now feature anti-fingerprint stainless steel taking the elegance of steel to the next level. Always investing in research and development. current models consume 25% less energy than models produced in the late 1990s. ensuring your oven always looks great in your kitchen. • AEG appliances are RoHS compliant (Reduction of the use of certain Hazardous Substances). energy and detergent than washing by hand. 7 . Perfect in form: AEG-Electrolux ovens have high performance design built in.
Avantgarde ovens will automatically make recommendations to help achieve perfect cooking results. Automatic weight programmers mean all you have to do is select the food type and enter the weight. With a host of advanced features. These multilayered glass panes are removable for easy cleaning and covered in a special heat reflective coating keeping the heat in the oven and the door cooler. including our design-award winning Maxisense models. Perfect control: Avantgarde is the latest in intelligent digital technology. All the oven features and functions are selected quickly and simply using the responsive touch control LCD panel and the display shows you how long food has been cooking for. You can also save your favorite recipes into the Avantgarde’s memory. designed to take the guesswork out of cooking. automatically recommending the optimum cooking function and temperature for perfect results. the controls can be locked to prevent misuse for extra security and peace of mind. The residual heat indicator in the display shows the level of heat left in the oven after it has been switched off. with sleek beveled edges and smooth touch controls. so that the required cooking settings are automatically selected when the recipe is entered. Child lock: On selected AEG-Electrolux ovens. triple or double-glazed. the oven will select the preferred cooking function and temperature required. This is also an ideal energy saving method to keep food warm with the residual cooking heat. the oven automatically switches off when it is left on for too long – time and temperature dependent. so there is no need to keep an eye on the clock. Ceramic and Induction hobs add form and function to any kitchen design.Perfect safety: All AEG-Electrolux oven doors are either quadruple. Auto safety switch off: For peace of mind. 8 . The Avantgarde’s clever controls have preset recipes programmed in for you to try. Electric hobs: AEG-Electrolux offers a vast range of stylish hobs with the very latest technology for high performance cooking with stunning visual impact.
The electronic touch controls enable you to directly access the desired cooking level or simply slide your finger along the scale until you reach the required heat setting. This feature is perfect when you need to leave the hob for an unexpected call. Stop+Go: At the touch of a button. so you do not have to constantly monitor the pans on the hob. Automax: AEG-Electrolux’s highly intelligent Automax function provides fantastic automatic zone control. combining the very latest technology. Timer: A timer of up to 99 minutes can be programmed for each individual cooking zone allowing you precise control. this function brings the zone up to the boil and will then reduce it to the pre-selected power level for the remainder of the cooking time. the hob will automatically switch itself off and an acoustic signal will sound. Power booster: Most AEG-Electrolux hobs also feature the Power booster function providing an intense rapid heat up. and then when the button is touched again it returns the zones exactly to the previous level. whilst features such as air purifiers and door open alarms provide the ultimate in peace of mind. AEG-Electrolux electric hobs offer a range of style options including polygon and rectangular shapes. all zones are reduced to a keep warm level.Perfect in form: AEG-Electrolux ceramic and Induction hobs are designed to be the focal point of your kitchen. After selecting a Automax. Once the cooking time is complete. saving time. 103cm widths and bevelled glass edges will enhance the appearance of any kitchen. Perfect control: AEG-Electrolux’s electronic ‘Direktouch’ controls use the very latest digital technology to ensure precise heat selection. innovative and practical features with elegant designs. 9 . Cooling: AEG-Electrolux cooling appliances have a range of innovative functions for advanced food preservation.
sleek yet simple kitchen design.Stylish design: The AEG-Electrolux cooling range has a stylish design that supports the modern. our range has the storage capacity to suit every lifestyle and the appearance to enhance the design of every kitchen. The pale blue interiors with Alu-silver and square push buttons complement their modern appearance. from under-counter appliances. High Temperature Indicator signals if the temperature rises (such as during a power cut). designed to be the most economical cooling products you can buy. All fridge freezers feature an adjustable thermostat for easy adjustment of the internal temperature of the fridge freezer. This means that they cause no harm to the ozone layer. Precise control: A host of advanced features offer you total control over your high-performance AEG-Electrolux cooling appliance. AEG-Electrolux cooling appliances are designed to store food in perfect condition. whilst silent technology means the noise output is minimal. holidays). Simple controls make operation easy 10 . Once back from holidays it will be easy for the fridge to recover to its normal temperature. contributing to a pleasant kitchen environment. Advanced electronic interface: Advanced electronic temperature controls are simple to use and ensure precise temperature control. Whatever the space available. to models that can be installed in-column at eye level. A range of different sized cooling appliances to suit every kitchen design. The controls are child proof and the LCD /LED display provides reassurance that the optimum temperature is being maintained. whilst the Frostmatic feature quickly freezes food just placed in the freezer. providing the best conditions for your food.g. ensuring all food is stored in optimum condition. and also do not contribute to the greenhouse effect. Maintaining perfect conditions: The holiday mode sets the temperature of the fridge cabinet to 14°C without affecting the freezer. This is very useful particularly on occasions where the fridge will not be used for an extended period of time (e. Energy efficient: All AEG-Electrolux models are A or A+. The temperature set by the holiday mode allows the preservation of food such as butter and eggs and it prevents the creation of unpleasant odours whilst the door remains closed for a long period of time. Our cooling models are 100% CFC and HFC free. Door Indicator (visual and/or audible) signals if the door is open. Service Indicator signals if there is a fault requiring technical assistance. The Coolmatic feature on fridges offers you fast chilling of fresh foods.
and both Coolmatic and Frostmatic automatically switch off after a set period and return to normal temperature. SUMMARY 11 .
Then we discussed the launching strategies of AEG Kitchen Appliances in Pakistan. in this part we have shown the origin of the company and the different phases of the growth of the company and how they entered in to the market. Environmental and Legal aspects of the Pakistani market for AEG Kitchen Appliances. in this part we have discussed the price. promotion and distribution strategies to be adopted by the AEG Company while entering the market. Social. Then we have explained our advertisement that we have made for TV and Magazine that how it will affect the customer and what type of message we are trying to deliver to the customer. Technological. Then we have discussed how to communicate our massage to the target market and what are the modes of communications that we are going to use for the purpose of advertisement and explained why we have chosen the particular mode of advertisement for the purpose of advertisement to attract the potential customer. Then we have discussed how to segment the market into different target market and how to evaluate the target market and to select the target audience as to attract towards our product as a potential customer.Our project is on AEG Kitchen Appliances and in his project we have tried to elaborate every aspect if AEG in troduces its products of kitchen appliances in the Pakistani market. In the second part of the project we have done the PESTEL analysis for the AEG Kitchen appliances for Pakistani market and discussed the important Political. First we have given the information about the company and a brief history of the company. PESTEL ANALYSIS 12 . Economic.
Due to huge budget deficit and low growth of economy government has increased the taxes on household items electronic items etc. which is a threat for any business especially for those who are thinking of launching their business in Pakistan as in case of AEG. Inside country war and drown attacks in north frontier areas. Sometimes it is described as a PEST or PESTLE analysis. Environmental and Legal. and grow beyond the national borders that previously confined them. Social. Social.PESTEL is an acronym that stands for Political. Political. Due to this customers have to pay a huge amount of taxes on buying of these items this is the reason why customers are cutting their expenses because they cannot afford all of these items. It is used to describe an analysis that is used for determining the opportunities and risks of global expansion. As a company looks to leverage the advantages that the democratization of technology. So AEG has to 13 . Current government has increased the taxes for launching new business operations in the country that will be a hard challenge for AEG to establish their business in Pakistan and to run their operations smoothly. PESTEL Analysis for AEG Kitchen Appliances for Pakistan: Political: The Government of Pakistan plays an important role in the operation and manufacturing products and services in terms of regulations. Technological. Environmental and Legal issues often differ domestically and even more so internationally. Following are some important factors which are needed to be considered by AEG before starting their operations: Due to unpredictable political and governmental changes in Pakistan the rules and regulations change quite frequently. The PESTEL analysis provides a strong framework used by global and multinational corporations to set the stage to develop specific tactics to mitigate the risks involved in executing their vision in unfamiliar environments. Economical. This political instability has led to uncertain environment in the country. Technological. information and finance. Economical. Now a day’s Pakistani environment is instable due to political clashes among political parties. it is imperative that they consider a PESTEL analysis to accompany their SWOT analysis.
This increasing ratio will hurt the buying power of the consumers that will overall reduce the demand for the products.9% in 2006 to 23. So AEG has to keep this situation in mind and try to target the upper class people of Pakistan who can afford their products and later try to launch some other products as well which are not very high in price range and can attract the middle income people. It will also be a good 14 . By following this strategy they can easily capture a huge market share.keep this thing in mind before launching their operations and set a price which is suitable for customers and it falls in their budget. So AEG has to adjust their prices according to this current economic situation and try to charge as low prices as possible for its products so that consumers can easily buy their products. Almost all of the sectors of the country are corrupt this is the reason why most of the foreign companies are closing their operations from Pakistan because the current government has imposed so many illegal charges on them due to which the profit ratio is not up to the standards. being a major influence affecting these can affect the AEG who are thinking of launching their business in Pakistan: Due to inflation the cost of doing business is also gone higher. In late 2010. AEG has to keep this thing in mind that how they can survive in this scenario so that their operations run successfully and they make a healthy profit as well.3% in first quartile of 2010. So when AEG launches its business in Pakistan it will be a great opportunity for unemployed people to get a job at AEG and a healthy income as well. Inflation is being controlled by State Bank of Pakistan and under strict eyes but unemployment rate is growing up and up with the increase level of poverty. Pakistan has a growing upper class with relatively high per capita incomes. jumping to 7.8 million income-tax payers in the country with 45% people are living on 2$ per day. the Central Board of Revenue estimated that there were almost 2. At this point in time the corruption rate is very high in Pakistan. Economic: Economic conditions are influenced by political and government policy. Inflation remains the biggest threat to the company.
If AEG wants to target the upper-end of market they have to publish and aired their advertisements in English language. which vary with fashion and disposable income provide opportunities and threats to AEG Company: Increasing globalization has amplified the influence of “Western Culture” in Pakistan. Social: The socio cultural environment summarizes demand and tastes. Anything against the philosophy of Islam on either print or electronic media is treated as against Pakistan. So AEG has to face many challenges to start their business successfully in Pakistan and keep their operations running effectively and efficiently in those locations where they will start their operations. Marriage Celebrations and other cultural festivals.opportunity for AEG to hire qualified people at low pay scale because of the unemployment in the country. Economic instability is worsening day by day as liquidity crunch is prevailing in the world. People are more conscious about status most of the people purchase those household items which suite their style and perform certain tasks for them. As Pakistan is an Islamic country and people are very strict in case of Islam. because most of the upper class people of Pakistan are status conscious and when they will see a advertisement in English language they will perceive that AEG is a well known brand and it suites their style. So it will be a great opportunity for AEG to focus on these things before establishing their business and when they do that they should provide their products at low prices and also offer the bundle pricing for their products. 15 . Most of the people dislike anything which sabotages their culture or subculture. AEG has different kitchen appliances ranging from cooking to cleaning so it will be a great deal for people to get everything they want under one roof. The life style of people is changing rapidly. So AEG has a great opportunity to introduce their kitchen appliances which suites their style and works in the same manner as people want their appliances to work. This will influence the demand for the product. The Pakistani people are more social and want to remain in contact with other people. On these festivals they want to give gifts to their loved ones regarding the nature of the festival. They celebrate lots of festivals like Eid Celebrations.
As AEG appliances are not currently available in Pakistan but when they will start their business in Pakistan AEG will make the most of precious space with AEG’S small but beautiful range of compact appliances which are perfectly suitable for all sizes of kitchen ranging from small. Environmental: 16 . AEG must also manufacture those products which best suites our culture. Technological: Advances in technology can have a major impact on business success. So they will have a competitive advantage on other companies when they will launch their operations in Pakistan. Technological changes impacts socio cultural attitudes as well as on economy: Companies have technology with which they can compete in Pakistan. the technology that they are using in their products are currently not available in Pakistan. The current focus of people are towards those items which are using state of the art technology as in case of AEG the kitchen appliances.So AEG has to keep this thing in mind when they doing certain promotions for their products and try not to make any ad or news which is not related to our culture and doesn’t target any Islamic values. Nowadays in Pakistan people are constructing homes according to modern architectural structure for instance open kitchen AEG provides all the technological edge preparing and open kitchen. These appliances can provide so much comfort for the people of Pakistan because they can perform any task within minutes without wasting any energy. As a new company in Pakistan AEG must invest not only in their infrastructure but also in their new product and services to expand their name in the market and provide people those products which are user friendly and have state of the art technology to perform any task in the kitchen ranging from cooking to cleaning. medium and large.
With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for the firms to consider. It means that they are producing certain products which are safe for health this is new innovation will surely help them capture a huge market share and this new strategy can also be followed in Pakistan as well. mercury and chromium in the manufacture of appliances and electronics. cadmium. For AEG to establish its business in Pakistan it has to face so much legal regularity from the government. and other electronic companies. an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organization’s actions. 17 . the disposal of the appliances once they have reached the end of their lifespan. and ultimately. In order to successfully establish their business they have to take permission from the government to lease the land or buy their own land to establish their office. a European Directive that calls for the reduction or elimination of potentially harmful substances such as lead. delivery methods. construction of products. As in case of Pakistan there will be some sort of competition for AEG in the market from dawlance. But when AEG will start their business in Pakistan they will automatically have a competitive advantage on these companies because they don’t have a huge line of kitchen appliances as compare to AEG. Legal: These are related to the legal environment in which firms operate.Environmental factors include the weather and climate changes. AEG has adopted a 360-degree approach to sustainable design. AEG appliances comply with RoHS (Reduction of the use of certain hazardous substances). They have to pay so many taxes on regular basis for their operations which they are performing throughout the country which is the main cause due to which most of the foreign companies are closing their operations from Pakistan because they have to pay so many taxes. from the procurement of raw materials. making it a consideration throughout the supply chain. The introduction of age discrimination and disability discrimination legislation. orient.
PROMOTION & DISTRIBUTION STATEGIES Pricing Strategy: 18 . PRICING. but they should follow the government rules to hire those employees which are capable and matches with the criteria. AEG should also follow Health and Safety Laws like they should provide certain training to their employees on safety and health and they should also provide them an environment which is safe and healthy and doesn’t affect their health. For AEG to establish its operations in Pakistan they should also follow the discrimination law which means that they should not hire employees on race or ethnicity.
(b) A functional discount will be given to our trade channel members who perform various functions such as selling. storing and record keeping. Segmented Pricing 3. Psychological Pricing 4. It will be a reward for our customers. So as a close competitor of for example Dawlance they have to keep in mind the psychological limit of prices while entering in to the market so their prices should not be mot high enough and not low enough the prices of its competitor Which is Dawlance. Discount and allowance Pricing: (a) We will give quantity discount to our buyers who will buy large volumes. Geographical Pricing 6. Discount and Allowance Pricing 2. For instance if they maintain their loyalty with us we will most probably give them 6% discount. International pricing Out of these we will use few of them. Psychological Pricing: AEG is a German company so it already has a psychological effect of high quality products in the minds of the customer. which is why they can grab the attention of the market. Promotional Pricing 5. Promotion Strategies: 19 . We have chosen Market Penetration as there is a lot of competition in the market with other brands.As our product is an introductory product in Pakistan therefore out of the new product pricing strategies that are Market Skimming Pricing and Market Penetration Pricing. Price Adjustment Strategies: Once we have entered a market we have to examine the following price adjustment strategies which are: 1.
As through this marketing strategy we can use the quality aspect of our product for the purpose of grabbing the attention of the customer and then making him/her believe on what we say and then to become our customer. personal selling and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationships. Advertising It’s a non personal presentation and promotion. For promotion we have targeted the Upper and middle class of Pakistan for our product. Direct Marketing They should also use direct marketing strategy like proving our customers with catalogs. Sales Promotion In this promotion they should offer incentives through discount to our customers but within a short period of time. Pull Strategy: The strategy we have adopted for our promotion is “pull strategy”.After setting the price of our product we then move forward towards the promotion of our product which is the most effective part of our plan. They must use the broadcast media for this purpose and must communicate with its target audience in order to make them realize that you are there in the market for them. public relations. For this purpose they should make advertisements for Television and Radio. sales promotion. DISTRIBUTION STRATEGY 20 . The Promotion Mix: It consists of the specific blend of advertising.
After planning the price strategy and promotion strategy our next final step is the distribution strategy of our introductory product in the market for our customers. It is also the most effective strategy for the sales with maximum profit from the market. LOCATIONS FOR LAUNCH (Cities) 21 . There are two different distribution channel levels which are: Direct Marketing Channel Indirect Marketing Channel They must use Direct Marketing Channel for the distribution of their product as it shows the reliability for the product and a trust building in the minds of the customers.
If we get a positive response from the consumer and our business got successful in these cities and we manage to capture a healthy market share then we will launch our operations in other small cities of Pakistan as well. The second thing why we chose these major cities is because of Consumer Buying Power. The basic reason why we chosen specific cities is because first we want to check the consumer response whether they like the products or not. and Islamabad and we will sell our products through our own outlets and some distributors as well. either there is already someone who have captured this market. The third reason why we chose these cities is because of the market dynamics in this case we will do extensive research and we will check what are our competitors either they have the same products which we have. By keeping all these things in mind we will establish our business in these cities if someone didn’t already captured this kitchen appliances market. They don’t have to face any parking issues and they can easily reach our outlets without any difficulty because of the transport facility available in these cities. We know that most of upper class community of Pakistan lives in major cities of the country so we decided to launch our operations in these cities to attract as much upper class as possible so that people recognize our product and also decide to buy it. There are also no security issues in the major cities so people can safely come to our outlets and shop their favorite items without any fear.The locations and cities which we have chosen to launch AEG kitchen appliances are major cities of Pakistan those are Lahore. Karachi. whether the product matches with their lifestyle or not. Market Targeting 22 . The fourth reason why we chose these cities is because of consumer accessibility.
• • Evaluating market segments Selecting target market segments Evaluating market segments: We evaluated our target marketed segmented on the basis of these three factors • Segment size and growth: in this part we checked that whether the segment we targeted is easy for us to serve or not or can we get the expected profitability from the segment or not. Target Market: A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. For the selection of the target market some of the most important things to be kept in mind are as follows. • • Segment structural attractiveness: in this part we checked that if there are any competitor in the market to divert our customers and the attractiveness of our target market Company’s objective and resources: in this part we checked whether our company had enough resources to fulfill our customer’s requirements and does our company’s objective is related to our customers. Selecting target market segments: After the evaluation of different segments of the market they must decide which and how many segments of the market to target.A target market consists of set of buyers sharing common needs or characteristics that the company decides to serve. Target marketing can be done in many levels these are as follows 23 .
Lahore and Karachi) to get the response from the market. If the response is good then we will go for the overall market. as this is due to many factors some of these factors I will explain here. • Individual marketing: tailoring products and marketing programs to the needs and preferences of individual customer’s also known as one-to-one marketing. Choosing a Target Market: For our project we have decided to select the upper and middle class market of Pakistan for our product. It is of two types • Local Marketing: tailoring brands and promotions to the needs and wants of local customer groups-cities neighborhoods and even specific stores. PRICE: As the price of our product is high and its affordability is in some segments of Pakistani market so we decided to target the upper and middle class of Islamabad. Micro Marketing: the practice of tailoring products and marketing programs to the needs and wants of the specific individuals and local customer groups. Lahore and Karachi. NEW ENTRANCE: As we are the new entrant of a market so for the test purpose whether the product will be accepted in the market by the customers or not we are just targeting some areas of the Pakistani target market (Islamabad. Undifferentiated (mass) Marketing: it is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. Concentrated (niche) marketing: it is a market coverage in which a firm goes after a large share of one or a few segments or niches. 24 . Differentiated (segmented) Marketing: it is a market coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
Lahore and Karachi). COST: As a new entrant of the market with a tough competition the entrance cost for our product will be high so we cannot risk high cost of introduction due to high competition.HIGH COMPETITION: As the market is already captured by existing competitors like Dawlance and Orient so at the start we are just targeting some areas of the Pakistani target market (Islamabad. 25 .
It is a good due to low cost effect. Another reason for the selection of Magazine is due to the target market selection as we are targeting the local market of the Karachi Islamabad and Lahore only so Magazines are good selection of promotional mode due to its local circulation.MEDIA OF PROMOTION The media for promotion for our product that we focus more will be Television Radio stations and Magazines as well because we are trying to target a local market at first who are good in status in Pakistan and in a few of the popular areas of Pakistan. To understand why we used this mode of communication I will try to explain it below. Local market target so Radio is the best way to target market access. MAGAZINES:We are using the magazines as a mode of promotion for our product due to many reasons some of the reasons are as follows: Magazines are a good choice for our product because their life time is more. Another reason for the selection of Magazine as a mode of communication is due to its reminding property. Detailed information about the product can easily be communicated to the target market as these products need detailed information to be communicated. and this characteristic can be used for our interest. 26 . RADIO STATION:We used radio station for the promotional campaigns of our product because. as Magazine is a good. The second reason for choosing magazine for our product is due to the nature of our product. cooking magazines can be best choice for this reason.
Due to the retaining effect of the radio advertisement. As our competitors are also using the same medium for communication so in order to catch the attention of our target market we must also have to use the same medium for the purpose of communication. The overall cost per message delivered is very low when we target a huge potential market like Karachi. TELEVISION:Television is the most effective way of communicating the product to the target market and to create a suitable environment for the product and the reason of choosing this medium for communication is due to. Lahore and Islamabad. 27 .
TYPE OF ADVERTISEMENT: As we don’t have enough resources and due to this constraint we are not capable of creating a good advertisement for now. The purpose of this ad is to show. PRODUCT INFORMATION: The advertisement also gives a little bit of information about the name and model of the AEG product as you can see in the bottom at every product’s view.JUSTIFICATION OF TE ADVERTISEMENT Television advertisement: The TV advertisement that we have prepared is basically focusing on the different quality products of the AEG kitchen appliances. The purpose of providing this information to the target market is to create a sense of knowledge among the potential customer about our product name and model. TO CREATE DESIRE: In our advertisement we tried to show the technology that AEG is using in their products in order to create a desire in the minds of the potential customer. 28 . VISUAL: The advertisement is based on just to show the look of the product and as we have shown in the advertisement it gives the complete view of the product available in the market from AEG kitchen appliances and to give the idea to the potential customer about the look of the product that how our product look like. By showing the state of the art products with latest technology we tried to create a desire in the minds of those potential customers who are interested in the use of the products with latest technology.
These videos are edited and cut according to the requirement of the advertisement and then mixed together in order to form a continuous video.The advertisement created was constructed from different videos available on the internet. MAGAZINE Advertisement: The Magazine advertisement that we have prepared is basically focusing on the different products of the AEG kitchen appliances. The purpose of this ad is to show. TO CREATE DESIRE: The advertisement of the Magazine gives the pictures of the products that are now entering in the market and to create reminding effect to the customer because these product are not sold on daily weekly or monthly basis but on long term yearly basis. The music is also taken from the internet and cut in accordance to the requirement of the advertisement and then mixed according to the advertisement. VISUAL: The advertisement is based on just to show the look of the kitchen appliances and to give the idea to the potential customer about the look of the product that how our product look like. 29 .
wikkipedia.aeg.youtube.com www.uk www.google.com www.aeg-electrolux.com Brochures of AEG products 30 .co.com www.REFERENCES www.
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