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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

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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

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and showed that distance transfer of electrical power could useful economically.this date is considered to be the birthday of the German electrical industry. The same year the company entered negotiations with the Berlin Magistrat (the municipal body) to supply a large area from a central supply. Additionally. in the same year the Stadtbahn Halle/Saale (City railway Halle .at the International Electro technical Exhibition in Frankfurt am Main. later becoming vice-director. In 1887 Mikhail Dolivo-Dobrowolsky joined the company as chief engineer. In the same year. where it lit 1000 light bulbs and drove an artificial waterfall . the Company acquired land in the Berlin-Gesundbrunnen area on which the Weddingsche Maschinenfabrik (founded by Wilhelm Wedding) was previously located.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. 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.Saale) is opened . 4 . when Emil Rathenau who had acquired licences to use some of Thomas Edison’s lamp patents in Germany.INTRODUCTION:HISTORY:The origins of the company can be traced to 1882. The Deutsche Edison Gesellschaft ("German Edison Company") was founded in 1883 with the financial backing of various banks and private individuals. In 1884 the Munich-born engineer Oskar von Miller (who later became the founder of the Deutsches Museum) joined the executive board. In 1887. which resulted in the formation of the Städtische Elektricitäts-Werke AG zu Berlin (AGStEW) ("City electricity works company (Berlin)") on 8 May 1884 . This success marked one of beginnings of the general use of alternating current for electrification in Germany. The original factory was located near Stettin bahnhof. in addition to a restructuring and expansion of the production range the AEG name was adopted. with Emil Rathenau as company director.

The activity of the company soon extended to all areas of electrical power engineering. using the best of modern design and the very latest technology. and Franz Schwechten designed the facades of the Acker. The tunnel was implemented by Siemens & Halske (S & H) (later to become Siemens) under the direction of C. Emil Rathenau died aged 77. SOME CHARACTERISTICS OF AEG APPLIENCES:Advanced Engineering From Germany: AEG stands for Advanced Engineering from Germany. Responsible for the design of all products. In 1907 the architect Peter Behrens became an artistic adviser.this is now the Spree tunnel Stralau . electric power. versatility and reliability along with superb aesthetics to enhance your kitchen design.und Hussitenstraße 1894-95. as well as the construction of steam turbines. This had a siding connecting to the Berlin rail network produced. in particular to electric lighting. advertising and architecture. In the first decades. Schwebel and Wilhelm Lauter .Tropp Paul began his work for the AEG 1889/90 until 1893. but there was no rail connection between the two plants . function and performance. cables and cable materials.used by public transport. AEG products are developed and manufactured with meticulous attention to detail. electric railways. automobiles. he has since become considered as the world's first corporate designer. All appliances offer outstanding performance. Precision German engineering means unrivalled features. In 1894 the site of the former Berlin Viehmarktgasse (cattle market) was purchased.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. 5 . In 1903 the competing radio companies of AEG with and of Siemens & Halske are merged forming a joint subsidiary company with the name Telefunken. the company had many factories in and around Berlin: On the 20th June 1915 the founder. electro-chemical plants.

That’s why AEG appliances are always designed with these factors in mind. making it a consideration throughout the supply chain. 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. but saving money for users as well. water and detergent used by household appliances. Caring For the Environment AEG has always been committed to minimizing the amount of electricity. the recycling of appliances and packaging materials once they have reached the end of their lifespan. As a result. 6 . including parts and labor. the gas stops flowing immediately. and Good Housekeeping magazine. Award-Winning Design AEG appliances integrate seamlessly with both European flavor and traditional North American cabinetry. Waste is kept to a minimum and recycled wherever possible. • Nearly all of AEG’s production facilities have received ISO 14001 designation. from manufacture to disposal. ensuring that your kitchen is a relaxing place to be. Two Year Warranty AEG offer a two year warranty. construction of products. AEG’s Green Approach AEG has adopted a 360-degree approach to sustainable design. Warranty is subject to registration and conditions of warranty. many of AEG’s appliances achieve impressive ‘A’ energy performance in the European rating system. from the procurement of raw materials. delivery methods. recognizing their continued commitment to reducing energy consumption in production facilities. AEG engineers work hard to include features that avoid accidents. Use of the latest technology allows us to produce appliances using fewer types and smaller quantities of raw materials. and ultimately.Safety in Mind Customer’s safety and health are of paramount importance to AEG. AEG exceptional designs have earned accolades including awards from reddot. not only helping to care for the environment. products and services. AEG’s environmental policy minimizes the ecological impact of every appliance at each stage of its life. and the safety thermocouples on gas cook tops ensure that if the flame goes out. on our range of AEG appliances. Many of our cook tops are equipped with a child safety lock and an auto-safety switch off. KBB Review Industry.

ensuring your oven always looks great in your kitchen. a European directive that calls for the reduction or elimination of potentially harmful substances such as lead. Electronic interactive LCD displays and digital cooking with temperature recommendation ensure complete control of the cooking process. • Washing dishes in an AEG dishwasher actually consumes less water. current models consume 25% less energy than models produced in the late 1990s. energy and detergent than washing by hand. mercury and chromium in the manufacturing of appliances and electronics. Perfect in form: AEG-Electrolux ovens have high performance design built in. 7 . Always investing in research and development. • AEG appliances are RoHS compliant (Reduction of the use of certain Hazardous Substances). dishwashers.• Since 2000 AEG has reduced energy consumption in its washing machines. and 50% less energy than those manufactured in the 1980s. 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. • AEG Lavamat washing machines have received A+ ratings in Europe—the highest possible. receiving several design awards including the prestigious IF Product Design Award 2008 and the Red Dot Design Award 2008. AEGElectrolux’s new range of built in and under-counter double ovens now feature UK market leading innovation ‘A’ energy rating in both ovens. 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. for excellent economy. the latest technology and the most energy efficient range. All AEG-Electrolux single and double ovens now feature anti-fingerprint stainless steel taking the elegance of steel to the next level. The appearance of our ovens coordinates perfectly with all other kitchen appliances to enhance the appearance of every kitchen. and ovens by 25% to 30%.

including our design-award winning Maxisense models. Electric hobs: AEG-Electrolux offers a vast range of stylish hobs with the very latest technology for high performance cooking with stunning visual impact. Automatic weight programmers mean all you have to do is select the food type and enter the weight. Auto safety switch off: For peace of mind. Perfect control: Avantgarde is the latest in intelligent digital technology. The Avantgarde’s clever controls have preset recipes programmed in for you to try. designed to take the guesswork out of cooking. so that the required cooking settings are automatically selected when the recipe is entered. You can also save your favorite recipes into the Avantgarde’s memory. triple or double-glazed. 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. 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. the oven automatically switches off when it is left on for too long – time and temperature dependent. automatically recommending the optimum cooking function and temperature for perfect results. This is also an ideal energy saving method to keep food warm with the residual cooking heat. Ceramic and Induction hobs add form and function to any kitchen design. The residual heat indicator in the display shows the level of heat left in the oven after it has been switched off. so there is no need to keep an eye on the clock. the oven will select the preferred cooking function and temperature required. With a host of advanced features. 8 . Avantgarde ovens will automatically make recommendations to help achieve perfect cooking results.Perfect safety: All AEG-Electrolux oven doors are either quadruple. Child lock: On selected AEG-Electrolux ovens. with sleek beveled edges and smooth touch controls. the controls can be locked to prevent misuse for extra security and peace of mind.

whilst features such as air purifiers and door open alarms provide the ultimate in peace of mind. Automax: AEG-Electrolux’s highly intelligent Automax function provides fantastic automatic zone control. saving time. 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. Perfect control: AEG-Electrolux’s electronic ‘Direktouch’ controls use the very latest digital technology to ensure precise heat selection. 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. This feature is perfect when you need to leave the hob for an unexpected call. the hob will automatically switch itself off and an acoustic signal will sound. 9 . Timer: A timer of up to 99 minutes can be programmed for each individual cooking zone allowing you precise control. so you do not have to constantly monitor the pans on the hob. Cooling: AEG-Electrolux cooling appliances have a range of innovative functions for advanced food preservation. After selecting a Automax. 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. Once the cooking time is complete. combining the very latest technology. Power booster: Most AEG-Electrolux hobs also feature the Power booster function providing an intense rapid heat up. 103cm widths and bevelled glass edges will enhance the appearance of any kitchen. and then when the button is touched again it returns the zones exactly to the previous level. AEG-Electrolux electric hobs offer a range of style options including polygon and rectangular shapes. innovative and practical features with elegant designs. Stop+Go: At the touch of a button.

ensuring all food is stored in optimum condition. Our cooling models are 100% CFC and HFC free. High Temperature Indicator signals if the temperature rises (such as during a power cut). The Coolmatic feature on fridges offers you fast chilling of fresh foods. Whatever the space available. contributing to a pleasant kitchen environment. Maintaining perfect conditions: The holiday mode sets the temperature of the fridge cabinet to 14°C without affecting the freezer. 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. This means that they cause no harm to the ozone layer. Service Indicator signals if there is a fault requiring technical assistance. The pale blue interiors with Alu-silver and square push buttons complement their modern appearance.g. sleek yet simple kitchen design. Advanced electronic interface: Advanced electronic temperature controls are simple to use and ensure precise temperature control. The controls are child proof and the LCD /LED display provides reassurance that the optimum temperature is being maintained. Energy efficient: All AEG-Electrolux models are A or A+. our range has the storage capacity to suit every lifestyle and the appearance to enhance the design of every kitchen. from under-counter appliances. AEG-Electrolux cooling appliances are designed to store food in perfect condition. whilst the Frostmatic feature quickly freezes food just placed in the freezer. to models that can be installed in-column at eye level. whilst silent technology means the noise output is minimal. holidays). designed to be the most economical cooling products you can buy. providing the best conditions for your food. Simple controls make operation easy 10 . Door Indicator (visual and/or audible) signals if the door is open.Stylish design: The AEG-Electrolux cooling range has a stylish design that supports the modern. This is very useful particularly on occasions where the fridge will not be used for an extended period of time (e. Precise control: A host of advanced features offer you total control over your high-performance AEG-Electrolux cooling appliance. All fridge freezers feature an adjustable thermostat for easy adjustment of the internal temperature of the fridge freezer. Once back from holidays it will be easy for the fridge to recover to its normal temperature. and also do not contribute to the greenhouse effect. A range of different sized cooling appliances to suit every kitchen design.

SUMMARY 11 .and both Coolmatic and Frostmatic automatically switch off after a set period and return to normal temperature.

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. 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. promotion and distribution strategies to be adopted by the AEG Company while entering the market. in this part we have discussed the price. Environmental and Legal aspects of the Pakistani market for AEG Kitchen Appliances. Then we discussed the launching strategies of AEG Kitchen Appliances in Pakistan. First we have given the information about the company and a brief history of the company. 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. PESTEL ANALYSIS 12 . Social. 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. Technological. Economic. 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.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.

it is imperative that they consider a PESTEL analysis to accompany their SWOT analysis. Environmental and Legal. which is a threat for any business especially for those who are thinking of launching their business in Pakistan as in case of AEG. 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. 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. Economical. information and finance. Economical. 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.PESTEL is an acronym that stands for Political. Political. 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. This political instability has led to uncertain environment in the country. 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. Social. Social.  Due to huge budget deficit and low growth of economy government has increased the taxes on household items electronic items etc. Technological. Inside country war and drown attacks in north frontier areas. Sometimes it is described as a PEST or PESTLE analysis.  Now a day’s Pakistani environment is instable due to political clashes among political parties. and grow beyond the national borders that previously confined them. So AEG has to 13 . 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.

 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. It will also be a good 14 . This increasing ratio will hurt the buying power of the consumers that will overall reduce the demand for the 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. 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.keep this thing in mind before launching their operations and set a price which is suitable for customers and it falls in their budget. Economic: Economic conditions are influenced by political and government policy. the Central Board of Revenue estimated that there were almost 2. By following this strategy they can easily capture a huge market share. 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. Inflation remains the biggest threat to the company.8 million income-tax payers in the country with 45% people are living on 2$ per day. jumping to 7.  Pakistan has a growing upper class with relatively high per capita incomes. In late 2010.9% in 2006 to 23. 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. 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.  At this point in time the corruption rate is very high in Pakistan. 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 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. Marriage Celebrations and other cultural festivals.  If AEG wants to target the upper-end of market they have to publish and aired their advertisements in English language. 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. 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.  As Pakistan is an Islamic country and people are very strict in case of Islam. 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. People are more conscious about status most of the people purchase those household items which suite their style and perform certain tasks for them. 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.  The Pakistani people are more social and want to remain in contact with other people. They celebrate lots of festivals like Eid Celebrations. 15 . Most of the people dislike anything which sabotages their culture or subculture. This will influence the demand for the product.  Economic instability is worsening day by day as liquidity crunch is prevailing in the world. The life style of people is changing rapidly. On these festivals they want to give gifts to their loved ones regarding the nature of the festival.opportunity for AEG to hire qualified people at low pay scale because of the unemployment in the country. 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. 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.

Technological changes impacts socio cultural attitudes as well as on economy:  Companies have technology with which they can compete in Pakistan. AEG must also manufacture those products which best suites our culture.  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. Technological: Advances in technology can have a major impact on business success. 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.  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. the technology that they are using in their products are currently not available in Pakistan. medium and large.  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 .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. So they will have a competitive advantage on other companies when they will launch their operations in Pakistan. These appliances can provide so much comfort for the people of Pakistan because they can perform any task within minutes without wasting any energy.

Legal: These are related to the legal environment in which firms operate. delivery methods. the disposal of the appliances once they have reached the end of their lifespan. and ultimately. and other electronic companies. The introduction of age discrimination and disability discrimination legislation. 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. from the procurement of raw materials.  AEG appliances comply with RoHS (Reduction of the use of certain hazardous substances).  As in case of Pakistan there will be some sort of competition for AEG in the market from dawlance. construction of products. making it a consideration throughout the supply chain. 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. cadmium. 17 .  For AEG to establish its business in Pakistan it has to face so much legal regularity from the government.  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. a European Directive that calls for the reduction or elimination of potentially harmful substances such as lead. 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.Environmental factors include the weather and climate changes. orient. mercury and chromium in the manufacture of appliances and electronics. 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. 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.  AEG has adopted a 360-degree approach to sustainable design.

 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. PRICING. but they should follow the government rules to hire those employees which are capable and matches with the criteria. PROMOTION & DISTRIBUTION STATEGIES Pricing Strategy: 18 .  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.

Segmented Pricing 3. Promotional Pricing 5. 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 2.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. which is why they can grab the attention of the market. Discount and allowance Pricing: (a) We will give quantity discount to our buyers who will buy large volumes. Promotion Strategies: 19 . Psychological Pricing: AEG is a German company so it already has a psychological effect of high quality products in the minds of the customer. For instance if they maintain their loyalty with us we will most probably give them 6% discount. Psychological Pricing 4. (b) A functional discount will be given to our trade channel members who perform various functions such as selling. We have chosen Market Penetration as there is a lot of competition in the market with other brands. Price Adjustment Strategies: Once we have entered a market we have to examine the following price adjustment strategies which are: 1. storing and record keeping. Geographical Pricing 6. It will be a reward for our customers. International pricing Out of these we will use few of them.

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. Pull Strategy: The strategy we have adopted for our promotion is “pull strategy”. personal selling and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationships. The Promotion Mix: It consists of the specific blend of advertising. For this purpose they should make advertisements for Television and Radio. Direct Marketing They should also use direct marketing strategy like proving our customers with catalogs.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. Sales Promotion In this promotion they should offer incentives through discount to our customers but within a short period of time. 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. For promotion we have targeted the Upper and middle class of Pakistan for our product. sales promotion. public relations. DISTRIBUTION STRATEGY 20 . Advertising It’s a non personal presentation and promotion.

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. LOCATIONS FOR LAUNCH (Cities) 21 . It is also the most effective strategy for the sales with maximum profit from the market.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.

either there is already someone who have captured this market. 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. whether the product matches with their lifestyle or not. 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. 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 fourth reason why we chose these cities is because of consumer accessibility. 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. Karachi. Market Targeting 22 . and Islamabad and we will sell our products through our own outlets and some distributors as well.The locations and cities which we have chosen to launch AEG kitchen appliances are major cities of Pakistan those are Lahore. 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. The second thing why we chose these major cities is because of Consumer Buying Power. 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. 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.

For the selection of the target market some of the most important things to be kept in mind are as follows. Target marketing can be done in many levels these are as follows 23 . • • 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. • • 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.A target market consists of set of buyers sharing common needs or characteristics that the company decides to serve. 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.

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. Choosing a Target Market: For our project we have decided to select the upper and middle class market of Pakistan for our product. 24 . as this is due to many factors some of these factors I will explain here. 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.  Micro Marketing: the practice of tailoring products and marketing programs to the needs and wants of the specific individuals and local customer groups. If the response is good then we will go for the overall market. • Individual marketing: tailoring products and marketing programs to the needs and preferences of individual customer’s also known as one-to-one marketing.  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.  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) to get the response from the market. 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. 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.

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 . Lahore and Karachi).

 Detailed information about the product can easily be communicated to the target market as these products need detailed information to be communicated.  The second reason for choosing magazine for our product is due to the nature of our product. and this characteristic can be used for our interest. RADIO STATION:We used radio station for the promotional campaigns of our product because. 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. 26 . To understand why we used this mode of communication I will try to explain it below.  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. as Magazine is a good.  Local market target so Radio is the best way to target market access.  It is a good due to low cost effect.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. cooking magazines can be best choice for this reason.  Another reason for the selection of Magazine as a mode of communication is due to its reminding property.

 Due to the retaining effect of the radio advertisement. Lahore and Islamabad.  The overall cost per message delivered is very low when we target a huge potential market like Karachi. 27 . 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.  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.

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. 28 . 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. 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. The purpose of this ad is to show. 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. 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. 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.

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. 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. 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. 29 . MAGAZINE Advertisement: The Magazine advertisement that we have prepared is basically focusing on the different products of the AEG kitchen appliances.

co.google.REFERENCES www.aeg-electrolux.aeg.wikkipedia.com Brochures of AEG products 30 .com www.com www.uk www.youtube.com www.