Embed Size (px)
Citation preview
Principle of MARKETING
Muneeb Allah Rakha M14BBA073
KashifMajeed M12BBA078
HARIS ALI M14BBA076
TO:
MISS MEHWISH KHAN
Marketing Analysis of Orient Electronics
HAILEY COLLEGE OF BANKING &FINANCE, UNIVERST OF THE PUNJAB LAHORE
1
TABLE OF CONTENTS PAGE #
History 3
vision 5
mission 5
Core values 6
products 6
competitors 6
Board of directors 9
Partnership with foreign brands 10
Compete in electronic market 11
Distribution model 12
BCG matrix 14
4 p’s Marketing concept 14
Marketing winning awards 15
Spending on research 24
SWOT Analysis 26
PEST Analysis 27
Conclusion 29
2
Orient electronics
Historyinstituted. It was the first Private Limited Company of Orient Group of Companies. The company started importing modern photography papers
3
and films in Pakistan and Mitsubishi Corporation of Japan Orient Electronics Pvt. Ltd, established in 2005, is one of the fastest growing consumer electronics companies in Pakistan. With a wide range of home appliances, including Air Conditioners, Refrigerators, LED TVs, Water Dispensers, Microwave Ovens etc., the company is proud to introduce modern technologies in the industry at a very affordable price. A dedicated workforce, professionals and the inspiring management leadership of Orient Electronics have powered the company to pursue its vision and mission which lead to innovation.
orient cover its way of progress through different segment of years.
1957 – 1980In 1957 in Lahore Mian Muhammad Fazal set up a small photography business. He worked as sole proprietor for almost 18 years until his elder son MianTalatMehmood joined him in 1975. Orient also started importing and expanded to nationwide distribution of photographic products.
1980 – 2000In 1983 Orient color labs (Pvt) Ltd wasbecame its major business partner. In 1988 M/S Orient Enterprises came into being. The primary business of Orient Enterprises was import and sale of photographic cameras of latest technology. Main supplier of these products was M/S Yashica of Japan. The company also ventured into lighting business in 1999 and started importing goods from M/S Osram lighting of Germany. M/S Adnan Corporation was set up for facilitating this business.
2000 – 2010A dealership agreement with Mitsubishi Electric in 2000 entered the company in home appliances business and split Air Conditioners were introduced in the country for the first time. In 2005 government imposed heavy duties and taxes on imported CBU to promote the local industry. Orient Group of Companies decided to set up its own manufacturing facility by forming a new manufacturing company
4
with the name of Orient Electronics Pvt Ltd. Strategic partner, for setting up the facility on almost 250 Kanals, was Mitsubishi Electric that provided technical guidance for purchase as well as installation of machinery. Initially AC assembly line was installed in first phase but with the passage of time other products like microwave ovens and water dispensers were included in the company’s range of products. Assessing the market requirements Orient Electronics Pvt Ltd. introduced refrigerator in its product line in 2009.
2010 - 2016In 2011 Orient established a research and development center by the name of “Innovation Center”. It was the first center of its kind in Pakistan. The company changed its complete outlook in 2012 with the new brand idea “Live in innovation” and introduced World’s 1st Glass Door Refrigerator with embedded LED TV. In 2013 Orient signed dealership agreement with M/S Midea Electric, China’s largest home appliances producing company. This brand name is being marketed in Pakistan by Orient as Media Home Appliances. 2014 was the year in which energy saving products were launched by Orient. Products like Android LED TV and Invertech along with a number of other highly energy saving products. The first Smart Air Conditioner of Pakistan was launched in 2014 by the name of Econotech. In 2016 Orient Invertech was upgraded to Orient DC Inverter Heat and Cool. The AC has features like eco-friendly operation, heat and cool function and low voltage operation.
VisionOur vision is to be an innovative company that is driven by modern and cutting edge ideas and concepts. We work and rework on ideas that could lead us to
providing convenient, durable, lasting and innovative consumer electronic goods to our valued customers.
5
MissionOur mission is to lead the consumer electronics goods industry in the country
with quality products. We aim to work on ideas that lead to innovative products resulting in a user friendly experience for the customer. Our products are
constantly evolving to meet this objective.
Core valuesCustomer focused
We provide according to customer need &budget.we deliver good home apllinces
Deliver on commitments
We provide our products on commitments.
Passion for excellence
Customer satisfaction is our passion
Live innovation
Inventing new things is our strategy
slogan
"Live in Innovation"
6
Products:
Fridge Orient introduces world’s 1st glass door refrigrators
Key Features
Low Voltage Operation, No stabilizer required Detachable Gasket Auto Defrost Function Solid Freeze Scratch less Glass
LedAt Orient, striving for the “perfection element” is believed to be a norm not a
target. That being said, the company has not only reached sublime heights in a
7
surprisingly short time period it has also been trying to maintain and further
improve on the quality of products that go by their name. Having been
established for over a few decades now, Orient Group of Companies (OGC)
jumped out of nascence with a spark; creating a customer base that has been
rising with unparalleled steepness. And now, the company has decided to take yet
another leap in the field of home electronics! Today we present to you our
symbol of excellence; Orient LED & LCD TVs!
Coming with a way better design than any other TV in the same category, these
indigenous machines are going to be a major attraction to your eyes. The LED TV
comes with one of the most expensive stands being provided in the market for
this category, the crystal stand, which gives a sleek and expensive look to the TV.
Needless to say, this in itself does justice to the quality of the product.
OGC, doing what it does best, has made sure that the product comes loaded with
added features along with the standard ones being provided in the market. Such
attempts at staying a step ahead of others have given it a superior edge over the
rest. Besides a much better picture quality, Orient TVs come with the latest
software making it very user friendly and free from slip-ups. A handy gadget that
is easy to get used to and has all that it takes to be your pick of the week! They let
you enjoy greater connectivity features than any other product in competition
with added plug and play options like the USB and HDMI ports. Both the LED and
LCD TVs support 24 different formats of Video, Audio & Imagery, being the
highest count of supported formats in the same category of televisions!
8
Vaccum cleaner
dc air conditioner
9
Washing machine
Competitors:Competitors of orient are following:
Dawlance
Pel
10
Waves
Board of DirectorsMian Muhammad Fazal (Chairman)
MianTalatMahmoodFazal (Managing Director),
Mian Ahmed Fazal (Executive Director)
MianZubairFazal (Director Photo Division)
Mian Abdul RehmanTalat (Director Marketing)
Mr. HomaeerWaheed (Director Operations)
Technological partnerships with foreign top class brands:
We are not distributors; we are having technological partnerships with foreign top class brands to bring that technology in Pakistan. As far as our own brand is concerned, we’re applying the same kind of technology to produce high quality
11
products with affordable price. This creates our brand serving to the consumer in a different segment.
Partnership with foreign companies like Samsung:
As mentioned already the partnership with other brands is a technological transfer partnership. To create their brand image in the market.
Target market:Middle East is our most important target market. Because the products we are making work very well in extreme temperatures and severe weather conditions which is why our products are most sought after in Middle Eastern countries and in Africa.
Household appliances& offices
Orient is a symbol of innovation in Pakistan and one of the fastest growing consumer electronic companies in Pakistan. With a wide range of home appliances the company has introduced modern technologies in the industry at a very affordable price. Orient products can be accessed from Orient Center.
12
Industry: Industry oriented education is an approach to learning from an
industry perspective.The problem with this traditional methodology of learning is that there is no close relationship with industry requirements
Compete in electronics market
Size of organizationWe have a very valuable human resource with qualified professionals and technicians. Our manufacturing unit is situated in Lahore (26-Km Multan Road) with state-of-the-art production facility and assembly lines. We strictly follow the international standards in manufacturing and assembling our products making sure the safety of our workers.
Technology adoptionOrient uses latest technology that consume less electricity. Because the price per unit of electricity is very high in Pakistan.
Price unitPrice per unit of orient is affordable.
Distribution model
Company
Sales office & dealers
13
Whole seller& retailer
Consumer
Demographic trends
Orient products are for all ages of human being,housewives & offices.
14
STARDc inverter air
conditioner
QUESTION MARKMobile phone+tablets
MARKET
GROWTH
HIGH
LOW
RELATIVE MARKET SHARE
HIGH LOW
CASH COW Glass door refrigerator
DOGVacuum cleaner
BCG Matrix:The BCG matrix categorizes brands according to two parameters, the rate of market growth and the relative market share. There are four categories under which brands may fall:
Star: High market growth & high relative market share.
Cash cow: Low market growth & high relative market share.
Question mark: High market growth & low relative market share.
Dog: Low market growth & low relative market share.
15
4 p’s concept
Product Fridge,led,splitac,dc ac,washingmachine&vacuum cleaner
PricePrice of our product is reasonable.lowest price in Pakistan.
The obvious pricing objectives of orient electronics are
• Maximization of Profits
• To achieve the target return and targeted sales
• Maintain the Market share
1. Orient is the best brand in the market.
2. Orient products consume less electricity.
3. Second reason is that orient target market is upper tier.
4. And to some extend upper tier of middle tier. But paying more for orient, customer feels value.
5. If we compare the price of orient with other local brands there is small difference.
6. As far as quality is concerned, by paying more customers is not worried about the quality.
16
PromotionThe company is promoting its product through the following modes
• Advertisement
• Public Relations
Ramadan Ration Pack Distribution Activity
Being a gift directly from heavens above; Ramadan surely reflects Allah SWT’s
divine and benignant countenance upon Muslims all over the globe. With
blessings flowing like a never ending stream God opens up his doors of mercy
even wider for His beloved Prophet’s (SAWW) Ummah. It is common knowledge
for every believer that in this holy month, the doors of wrath are closed down and
replaced by an abundance of earnings, wealth and prosperity. Wishes are granted
and prayers are answered as man is brought nearer to the Creator by the
Creator’s own will –for this is the month when Allah’s word; The Holy Quran was
revealed. Orient Group of Companies (OGC) wishes you a very happy month of
blessings!
Since the early years of the company, welfare work has been valued as a corner
stone in the company’s philosophy. Orient has been working to fulfill their
corporate social responsibility demands for over half a century. It is a regular
practice for the top level management to devote time and resources for this
benevolent cause every now and then.
Keeping in line with the irresistible image of OGC in this matter, the company has
been undertaking numerous social welfare activities. Since years, OGC has been
17
distributing free Ration Packs to its employees every month. The packs include
enough rations to last for a complete month and include everything for the use of
an average household’s kitchen. The employees falling under the minimum wages
category are greatly helped financially throughout the year. The rations packs
include; cooking oils, sugar, rice, wheat, 3 different types of pulses, tea and
roohafza.
In the Holy month of Ramadan the company extends its hand to deserving
families other than those on its payroll as well, thus it’s not only the employees
who benefit from this noble cause. The surrounding areas of the factory are
inhabited by a large number of deserving families that are given the ration packs
free of cost throughout the month of Ramadan. This year OGC has decided to
supply families with these free ration packs on different dates spread over the
month of Ramadan at as many as 14 different sites adjacent to the factory.
Understanding the critical economic condition of our country and its devastating
impact on the lives of people living around the poverty line; this is a
commendable effort. Islam, being a religion of peace mandates care and affection
towards the less privileged and OGC has always been a step ahead of the rest in
following this. The top level of management wishes that God almighty continues
to shower the company with its blessings so that they can continue to make lives
easier for people in Ramadan and send them home with smiles.
• Sales Promotion
Orient center wedding offerEver friendly and ever considerate towards its customers, Orient family never lags
behind in doubling up the joy of its customers on such occasions. This one of a
kind offer brings you numerous prizes at every corner of Pakistan. With Orient
18
Centers located all around the country, the company has launched a Wedding
Offer for all the customers who shop at Orient Centers. And the numerous lucky
draws being held at Orient Centers have increased the chance of winning prizes
by a manifold.
The method is simple, users just need to go and shop for their marriage at the
named Orient Centers, fill up their warranty card and drop it in the lucky draw
ballot to get their name entered into lucky draws. Begetting never-seen-before
prizes like wedding function dinner for the guests, return tickets of Dubai for the
couple and not to forget dozens of Orient appliances; this offer is a must get!
It is worth mentioning here that Orient group of Companies (OGC) has set up
Orient Centers all over the country to facilitate customers in reaching genuine
products, Orient Centers being Franchised Brand Shops, provide our customers
with the trust they need in the product quality. It’s a double shot for users; since
the offer is available at dozens of Orient Centers. And in case you don’t know
where to go to get a chance at the prizes, do visit the Find Us section of our
website, our store locator will help you choose the best option to go and shop
from.
As we all know, the marriage season lasts for months, the company has decided
to take the Wedding Offer to the whole length of the season, good news for
customers who are still planning their shopping; this offer is valid for the whole
month of November!
We have added the prize details for our customers so that you know how
lucrative this offer is:
19
Wedding function dinner
Return ticket to Dubai for a lucky couple
Orient LED 22” – 1 Prize for every Orient Center
Orient Microwave Oven – 1 Prize for every Orient Center
Dinner for a lucky couple – 2 Prizes for every Orient Center
Knowing how to create a customer base in the market are the trademarks of a
company with brighter prospects, OGC is all that and a lot more. Generous
towards its customers and always looking forward to be a part of its customer’s
glee, Orient has made a place in the market that is irresistible. The wedding offer
is a testimony to that.
Hurry up and get your name entered into the lucky draws, this might just be your
lucky day!
• External Communication
Air Port Hospitality Program ForHujaj-e-Karam
Orient Group of Companies (OGC) being at a position where a lot is expected from
it, does not limit itself to the sole purpose of business making. It is a matter of
policy for OGC to meet the corporate social responsibility requirements with rigor
and enthusiasm. Orient has always had a hand to play in this matter but the
history of their charity work goes way back to the formations of the company and
since then, it has been a regular practice at Orient to be of some good to the
public in means other than their business.
20
This year, OGC took up a task that was not only one of its kind but a humongous
one at the same time. At the auspicious occasion of Hajj, Orient Group of
Companies reach out to the respected pilgrims at the time of their departure
towards the House of God. Orient set up a campaign in which lunch boxes were
distributed to the Hujjaj-e-Karaam as they awaited their flight towards Makkah.
Around 25000 pilgrims were presented with the packed lunch boxes.
The Haji Camp which was traditionally set up at the Lahore railway station had to
be closed down and at this point OGC stepped forward and arranged for a
temporary Haji Camp at the Old Airport Lahore. Special permission was sought
from the Defense Ministry as well as the Civil Aviation Authority for this set up.
Both of the aforementioned bodies very generously allowed Orient to go through
the campaign and so a sitting arrangement for 500 people was made at the old
airport under OGC’s supervision. The company tried their best to cater the needs
of all the pilgrims and so they were provided with fans to kill the heat. An
abundant supply of bottled mineral water was presented and fridges were
installed to keep the water and food cool as the Haji’s awaited to board their
flights.
Inside the departure lounge of the Allama Iqbal International Airport, OGC
contracted the airport staff to help distribute the lunch boxes to every pilgrim
boarding a flight from the airport. The satisfaction of our respected pilgrims is
OGC’s priority, thus for the making and packing of the lunch boxes, Orient had
contracted the well reputed private food chain.
The whole campaign, solely funded by OGC, lasted for a complete month during
which Orient’s staff worked tirelessly for the comfort of the pilgrims who often
face difficulty due to the crowd at haji camps and the airport terminals. Whether
21
it is because of management failures or a general pressure due to the large
number of pilgrims going for hajj, most of the pilgrims have complained in the
past about lack of proper food or unavailability of resting spaces at the haiicamps.
This was the sole reason why OGC took to share the burden and tried to satisfy
the pilgrims for the basic complaints about food and rest areas. Throughout the
whole month OGC appointed 8 waiters on a 24 hour duty just to cater the
pilgrims. One security guard stood in place guarding the camp throughout the
month and 2 of OGC’s own employees were assigned to supervise the whole
campaign for the complete tenure.
The campaign in itself was huge, spanning over more than 30 days with a lot of
man power and a generous outflow of funds. But of course, God has blessed the
company in return for all such efforts that they have made so far. The pilgrims
were very pleased at the treatment they got, which is a rare case considering the
history. Most of them were of the opinion that they never expected such
arrangements for them. Sending around 25000 people worth a smile on their face
when the depart to the Holy land is a something that surely begets huge returns
from Allah Almighty.
The campaign was a complete success MashAllah and following their own trend,
OGC plans to continue with such endeavors in the future.
• Events And Exhibitions
• T.V Advertisement on different channels
• Radio Advertisement , F.M 100
• Bill boards almost in every big city
22
• Posters / Banners
• Small gifts for dealers/distributors to push new product sale
• Small gifts
• party to introduce them new product
• T – Shirts printed with product logo on them
• Caps
• Key chains
PlaceChannels: 17 Sales offices, Over thousands Dealers and Retailers throughout the country. Uses selective and complementary distribution
1. The distribution channel includes Distributors and Dealers/retailers.
2. The Pakistan is divided into 6 Regions.
• Upper Punjab
• Lower Punjab
• Center Punjab
• Sindh
• Balochistan
• KPK
Region Offices are following:
Rahim Yar Khan, Vehari, Quetta, Sahiwal, Gujranwala, Karachi
23
1. The overall orient products are manufactured in Lahore.
2. For all Pakistan stocks dispatch is carried out from factory warehouse.
Warehouses
There are further 5 warehouses in the country.
1. Lahore
2. Islamabad
3. Multan
4. Karachi
5. Quetta
Distribution Channels
• Distribution Vehicles
• Freight On Road ( goods transportation service)
Competitive advantage
Competition in Local market exhibitionDawn Lifestyle is an event that brings together numerous lifestyle brands under
one roof at Expo Center Lahore on 10th February 2016. Orient Electronics availed
this opportunity to exhibit its innovative products. Attractive and interactive stall
design fascinated visitors in large numbers. Product demos were arranged to give
them the feel and experience of the entire product range.
Visitors were also briefed about different features of Orient products and how
innovation can play an effective role in making their lives easier and comfortable.
24
As complimentary gifts giveaways were distributed among the visitors. People
from all age groups took keen interest in various Orient products and made the
event exciting and memorable.
Marketing awards wining ceremony
Ever friendly and ever considerate towards its customers, Orient family never lags
behind in doubling up the joy of its customers on such occasions. This one of a
kind offer brings you numerous prizes at every corner of Pakistan. With Orient
Centers located all around the country, the company has launched a Wedding
Offer for all the customers who shop at Orient Centers. And the numerous lucky
draws being held at Orient Centers have increased the chance of winning prizes
by a manifold.
The method is simple, users just need to go and shop for their marriage at the
named Orient Centers, fill up their warranty card and drop it in the lucky draw
ballot to get their name entered into lucky draws. Begetting never-seen-before
25
prizes like wedding function dinner for the guests, return tickets of Dubai for the
couple and not to forget dozens of Orient appliances; this offer is a must get!
It is worth mentioning here that Orient group of Companies (OGC) has set up
Orient Centers all over the country to facilitate customers in reaching genuine
products, Orient Centers being Franchised Brand Shops, provide our customers
with the trust they need in the product quality. It’s a double shot for users; since
the offer is available at dozens of Orient Centers. And in case you don’t know
where to go to get a chance at the prizes, do visit the Find Us section of our
website, our store locator will help you choose the best option to go and shop
from.
As we all know, the marriage season lasts for months, the company has decided
to take the Wedding Offer to the whole length of the season, good news for
customers who are still planning their shopping; this offer is valid for the whole
month of November!
We have added the prize details for our customers so that you know how
lucrative this offer is:
Wedding function dinner
Return ticket to Dubai for a lucky couple
Orient LED 22” – 1 Prize for every Orient Center
Orient Microwave Oven – 1 Prize for every Orient Center
Dinner for a lucky couple – 2 Prizes for every Orient Center
Knowing how to create a customer base in the market are the trademarks of a
company with brighter prospects, OGC is all that and a lot more. Generous
towards its customers and always looking forward to be a part of its customer’s
26
glee, Orient has made a place in the market that is irresistible. The wedding offer
is a testimony to that.
Hurry up and get your name entered into the lucky draws, this might just be your
lucky day!
Orient spending on research:We know the importance of research and development which is very important in the scenario of the world being a global village. Today innovation and invention is what people need. Research and development is our focus and we have a promise to deliver to our customer the products with innovation and improved performance.
1 Strategies To Capture Its Competitor’s Client
They have market intelligence They map the prices They set the pricing policy decisions If the competitor change the pricing policies obviously
they change their price policy. Competition with Chinese brands
Actually the Chinese philosophy is to create disposable products, while our products are designed and produced for the long term use. The cost philosophy for both business models is different.
Future plans:Our future plans are aggressive and ambitious. Our vision is to be the best appliances manufacturer, which means providing the best products and services at a highly affordable price.
services regarding CSR:
27
It is very important for a business group to work for humanity and the betterment of society, and we are well aware of that. We firmly believe in effective CSR activities. There are quite a number of initiatives that the Orient Group of Companies has taken to play its positive role in society. FirdousFazal Welfare Society consistently work on those areas where people need us the most like health, education etc
SWOT Analysis:
28
Strengths Brand Name. More than 69years of experience in the paints industry. Multinational Company. World renowned in electronics manufacturers. Having production setup in more than 7 countries. Wider range of products. Wider dealer network as compared to its competitors. Business volume is very high as compared to the competitors. Focuses on safety, security, health and environment as a corporate social
responsibility. Technological Advantage. All parts are imports from japan.
Weaknesses Very low discounts for business partners. Complex Supply Chain Configuration. Comparatively less convenient delivery of the products as business partners are
in 1000’s. Meeting demand becomes a challenge in the demand season.
Opportunities Higher standard of living and awareness developing in Pakistan. Pakistan is developing country and there is a lot of business growth in this
country. So seeking new markets in this area is great opportunity.
Threats29
Political instability in Pakistan Economic instability
Political Crisis in Pakistan Threats to the new entrants in the market
Threats to the new entrants in the market. Law & Order Situation The company which is doing business in Pakistan has to calculate the factors
like load shedding and energy crisis. Though the crisis has increased manifolds yet I think the problem is not new for us. We have started using LED lights to minimize the energy needs. Yes, there is no denying the fact that energy crisis is hampering our overall business a great deal. The sooner this crisis ends the better for the country and its economy.
Threats to the new entrants in the market
PEST Analysis
30
Political FactorsPolitical CrisisSince the independence in 1947, Pakistan has continuously faced political crisis. The political crisis has led to uncertain environment in the country, which is a threat for any business including Berger Paints.
Inconsistency in Rules & RegulationsThe rules and regulations are changed quite frequently due to changes in the government that effects the business flow for any company. E.g. the last government had introduced subsides for the chemical sector but now the current government is planning to finish all subsides.
31
Law & Order SituationThe law and order situation is crucial as it has causes serious disruption on business activity. The suicide bombing and military operations have had an adverse effect on the confidence of foreign investors.
Taxation LawsThe government is providing relief to the electronics industry. There is a 10% reduction in the central excise duty on electronics products.
Economic FactorsEconomic SituationEconomic conditions are not very sound. The rising political instability has led to economic instability as well.
InflationInflation remains the biggest threat to the economy. The surge in global petrol prices and thus local petrol prices hurt the buying power of consumers that reduced the demand for products. Due to inflation the cost of doing business has also gone higher. If Pakistan keeps on getting better grants and loan waivers or if any other economy boosting factors such as controlled inflation rate and economic growth take place, it will benefit the entire electronics industry including orient.
UnemploymentThe unemployment rate is going up and up which has increase the level of poverty thus further reducing the buying power of the people.
Decling trends in rupees value:
Actually appliances business in Pakistan doesn’t have a balance in terms of import and export, still due to non-availability of raw material and low vendorization
32
industry a lot of our material is still import based. So rupee depreciation always greatly affects the cost of our products.
Social FactorsWestern Life StyleIncreasing globalization has amplified the influence of “Western Culture” in Pakistan. The lifestyle of Pakistani people is changing rapidly. People are more conscious about their houses presentation.
PopulationTo meet the demands of a rapidly increasing population, there is an increase in the number of construction projects in Pakistan which is a positive sign for orient.
TechnologicalFactorsLatest TechnologiesCompanies have technology with which they can have a competitive advantage in the Pakistani market. Companies are investing in there infrastructure to not only expand but also to upgrade their existing structure.
Electronics TechnologyOrient introduces dc inverter technology which consume less electricity.
The price of an air conditioner cover in 1 year.
Conclusion:
33
• We conclude that, while going through the company visit, the co-operation is found to be very well organized, developed and most ideal industry in every walk of its production, administration and management aspects.
34
