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COMSATS INSTITUTE OF INFORMATION TECHNOLOGY ISLAMABAD

BRAND MANAGEMENT

FINAL PROJECT

SUBMITTED TO :

SIR LAEEQ JASWAL

SUBMITTED BYB:

AKHLAQ HUSSAIN SP08-BBA-091

SHAYAN LATIF 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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INTRODUCTION:-

HISTORY:-

The origins of the company can be traced to 1882, when Emil Rathenau who had acquired

licences to use some of Thomas Edison’s lamp patents in Germany. The Deutsche Edison

Gesellschaft ("German Edison Company") was founded in 1883 with the financial backing of

various banks and private individuals, with Emil Rathenau as company director.

In 1884 the Munich-born engineer Oskar von Miller (who later became the founder of the

Deutsches Museum) joined the executive board. 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 - this date is considered

to be the birthday of the German electrical industry.

The original factory was located near Stettin bahnhof. In 1887, the Company acquired land in the

Berlin-Gesundbrunnen area on which the Weddingsche Maschinenfabrik (founded by Wilhelm

Wedding) was previously located. In the same year, in addition to a restructuring and expansion

of the production range the AEG name was adopted.

In 1887 Mikhail Dolivo-Dobrowolsky joined the company as chief engineer, later becoming

vice-director. 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.

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,

where it lit 1000 light bulbs and drove an artificial waterfall - at the International Electro

technical Exhibition in Frankfurt am Main. This success marked one of beginnings of the general

use of alternating current for electrification in Germany, and showed that distance transfer of

electrical power could useful economically. Additionally, in the same year the Stadtbahn

Halle/Saale (City railway Halle - Saale) is opened - being the first electric tram system (of

notable size) in Germany.

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Tropp Paul began his work for the AEG 1889/90 until 1893, and Franz Schwechten designed the

facades of the Acker- und Hussitenstraße 1894-95.

In 1894 the site of the former Berlin Viehmarktgasse (cattle market) was purchased. This had a

siding connecting to the Berlin rail network produced, but there was no rail connection between

the two plants - 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. The tunnel was implemented by

Siemens & Halske (S & H) (later to become Siemens) under the direction of C. Schwebel and

Wilhelm Lauter - this is now the Spree tunnel Stralau - used by public transport.

In 1903 the competing radio companies of AEG with and of Siemens & Halske are merged

forming a joint subsidiary company with the name Telefunken.

In 1907 the architect Peter Behrens became an artistic adviser. Responsible for the design of all

products, advertising and architecture, he has since become considered as the world's first

corporate designer.

The activity of the company soon extended to all areas of electrical power engineering, in

particular to electric lighting, electric power, electric railways, electro-chemical plants, as well as

the construction of steam turbines, automobiles, cables and cable materials. In the first decades,

the company had many factories in and around Berlin:

On the 20th June 1915 the founder, Emil Rathenau died aged 77.

SOME CHARACTERISTICS OF AEG APPLIENCES:-

Advanced Engineering From Germany:

AEG stands for Advanced Engineering from Germany. Precision German engineering means

unrivalled features, function and performance. All appliances offer outstanding performance,

versatility and reliability along with superb aesthetics to enhance your kitchen design. AEG

products are developed and manufactured with meticulous attention to detail, using the best of

modern design and the very latest technology.

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Safety in Mind

Customer’s safety and health are of paramount importance to AEG. That’s why AEG appliances

are always designed with these factors in mind. Many of our cook tops are equipped with a child

safety lock and an auto-safety switch off, and the safety thermocouples on gas cook tops ensure

that if the flame goes out, the gas stops flowing immediately. AEG engineers work hard to

include features that avoid accidents, ensuring that your kitchen is a relaxing place to be.

Award-Winning Design

AEG appliances integrate seamlessly with both European flavor and traditional North American

cabinetry. AEG exceptional designs have earned accolades including awards from reddot, KBB

Review Industry, and Good Housekeeping magazine.

Two Year Warranty

AEG offer a two year warranty, including parts and labor, on our range of AEG appliances.

Warranty is subject to registration and conditions of warranty.

Caring For the Environment

AEG has always been committed to minimizing the amount of electricity, water and detergent

used by household appliances, not only helping to care for the environment, but saving money

for users as well. As a result, many of AEG’s appliances achieve impressive ‘A’ energy

performance in the European rating system. AEG’s environmental policy minimizes the

ecological impact of every appliance at each stage of its life, from manufacture to disposal. Use

of the latest technology allows us to produce appliances using fewer types and smaller quantities

of raw materials. Waste is kept to a minimum and recycled wherever possible.

AEG’s Green Approach

AEG has adopted a 360-degree approach to sustainable design, making it a consideration

throughout the supply chain, from the procurement of raw materials, construction of products,

delivery methods, and ultimately, the recycling of appliances and packaging materials once they

have reached the end of their lifespan.

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, recognizing their continued commitment to reducing energy

consumption in production facilities, products and services.

• Nearly all of AEG’s production facilities have received ISO 14001 designation.

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• Since 2000 AEG has reduced energy consumption in its washing machines, dishwashers, and

ovens by 25% to 30%.

• Washing dishes in an AEG dishwasher actually consumes less water, energy and detergent than

washing by hand.

• AEG Lavamat washing machines have received A+ ratings in Europe—the highest possible.

Always investing in research and development, current models consume 25% less energy than

models produced in the late 1990s, and 50% less energy than those manufactured in the 1980s.

• AEG appliances are RoHS compliant (Reduction of the use of certain Hazardous Substances), a

European directive that calls for the reduction or elimination of potentially harmful substances

such as lead, cadmium, mercury and chromium in the manufacturing of appliances and

electronics.

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 AEG-

Electrolux standard single ovens are ‘A’ energy rated for optimum performance. AEG-

Electrolux’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 technology and the most energy

efficient range, for excellent economy. Electronic interactive LCD displays and digital cooking

with temperature recommendation ensure complete control of the cooking process.

Perfect in form:

AEG-Electrolux ovens have high performance design built in, 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.

All AEG-Electrolux single and double ovens now feature anti-fingerprint stainless steel taking

the elegance of steel to the next level, ensuring your oven always looks great in your kitchen.

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Perfect safety:

All AEG-Electrolux oven doors are either quadruple, triple or double-glazed. These multi-

layered 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.

Auto safety switch off:

For peace of mind, the oven automatically switches off when it is left on for too long – time and

temperature dependent.

Child lock:

On selected AEG-Electrolux ovens, the controls can be locked to prevent misuse for extra

security and peace of mind.

Perfect control:

Avantgarde is the latest in intelligent digital technology, designed to take the guesswork out of

cooking. With a host of advanced features, Avantgarde ovens will automatically make

recommendations to help achieve perfect cooking results. 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, so there is no need to keep an eye on the clock. The

Avantgarde’s clever controls have preset recipes programmed in for you to try, automatically

recommending the optimum cooking function and temperature for perfect results. You can also

save your favorite recipes into the Avantgarde’s memory, so that the required cooking settings

are automatically selected when the recipe is entered. Automatic weight programmers mean all

you have to do is select the food type and enter the weight; the oven will select the preferred

cooking function and temperature required. The residual heat indicator in the display shows the

level of heat left in the oven after it has been switched off. This is also an ideal energy saving

method to keep food warm with the residual cooking heat.

Electric hobs:

AEG-Electrolux offers a vast range of stylish hobs with the very latest technology for high

performance cooking with stunning visual impact, including our design-award winning Maxi-

sense models. Ceramic and Induction hobs add form and function to any kitchen design, with

sleek beveled edges and smooth touch controls.

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Perfect in form:

AEG-Electrolux ceramic and Induction hobs are designed to be the focal point of your kitchen,

combining the very latest technology, innovative and practical features with elegant designs.

AEG-Electrolux electric hobs offer a range of style options including polygon and rectangular

shapes, 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. 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.

Automax:

AEG-Electrolux’s highly intelligent Automax function provides fantastic automatic zone control,

so you do not have to constantly monitor the pans on the hob. After selecting a Automax, 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.

Stop+Go:

At the touch of a button, all zones are reduced to a keep warm level, and then when the button is

touched again it returns the zones exactly to the previous level. This feature is perfect when you

need to leave the hob for an unexpected call.

Power booster:

Most AEG-Electrolux hobs also feature the Power booster function providing an intense rapid

heat up, saving time.

Timer:

A timer of up to 99 minutes can be programmed for each individual cooking zone allowing you

precise control. Once the cooking time is complete, the hob will automatically switch itself off

and an acoustic signal will sound.

Cooling:

AEG-Electrolux cooling appliances have a range of innovative functions for advanced food

preservation, whilst features such as air purifiers and door open alarms provide the ultimate in

peace of mind.

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Stylish design:

The AEG-Electrolux cooling range has a stylish design that supports the modern, sleek yet

simple kitchen design. The pale blue interiors with Alu-silver and square push buttons

complement their modern appearance. AEG-Electrolux cooling appliances are designed to store

food in perfect condition. Whatever the space available, our range has the storage capacity to suit

every lifestyle and the appearance to enhance the design of every kitchen. A range of different

sized cooling appliances to suit every kitchen design, from under-counter appliances, to models

that can be installed in-column at eye level.

Energy efficient:

All AEG-Electrolux models are A or A+, designed to be the most economical cooling products

you can buy, whilst silent technology means the noise output is minimal, contributing to a

pleasant kitchen environment. Our cooling models are 100% CFC and HFC free. This means that

they cause no harm to the ozone layer, 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.g. holidays). 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. Once back from holidays it will be easy

for the fridge to recover to its normal temperature.

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, providing the best conditions for your food. High Temperature Indicator signals if the temperature rises (such as during a power cut). Door Indicator (visual and/or audible) signals if the door is open. Service Indicator signals if there is a fault requiring technical assistance.

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. The Coolmatic feature on fridges offers you fast

chilling of fresh foods, whilst the Frostmatic feature quickly freezes food just placed in the

freezer, ensuring all food is stored in optimum condition. Simple controls make operation easy

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and both Coolmatic and Frostmatic automatically switch off after a set period and return to

normal temperature.

SUMMARY

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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.

First we have given the information about the company and a brief history of the company, 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.

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,

Economic, Social, Technological, Environmental and Legal aspects of the Pakistani market for

AEG Kitchen Appliances.

Then we discussed the launching strategies of AEG Kitchen Appliances in Pakistan, in this part

we have discussed the price, promotion and distribution strategies to be adopted by the AEG

Company while entering the market.

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.

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 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

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PESTEL is an acronym that stands for Political, Economical, Social, Technological,

Environmental and Legal. It is used to describe an analysis that is used for determining the

opportunities and risks of global expansion. Sometimes it is described as a PEST or PESTLE

analysis. Political, Economical, Social, Technological, Environmental and Legal issues often

differ domestically and even more so internationally. As a company looks to leverage the

advantages that the democratization of technology, information and finance, and grow beyond

the national borders that previously confined them, it is imperative that they consider a PESTEL

analysis to accompany their SWOT analysis. 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.

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. 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. 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.

Now a day’s Pakistani environment is instable due to political clashes among political

parties. Inside country war and drown attacks in north frontier areas. This political

instability has led to uncertain environment in the country, which is a threat for any

business especially for those who are thinking of launching their business in Pakistan

as in case of AEG.

Due to huge budget deficit and low growth of economy government has increased the

taxes on household items electronic items etc. 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. So AEG has to

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keep this thing in mind before launching their operations and set a price which is

suitable for customers and it falls in their budget.

At this point in time the corruption rate is very high in Pakistan. 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. 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.

Economic:

Economic conditions are influenced by political and government policy, 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, jumping to 7.9% in 2006 to 23.3% in first quartile of

2010. This increasing ratio will hurt the buying power of the consumers that will

overall reduce the demand for the products. 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.

Pakistan has a growing upper class with relatively high per capita incomes. In late

2010, the Central Board of Revenue estimated that there were almost 2.8 million

income-tax payers in the country with 45% people are living on 2$ per day. 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. By

following this strategy they can easily capture a huge market share.

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. 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. It will also be a good

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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. 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.

Social:

The socio cultural environment summarizes demand and tastes, 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.

The life style of people is changing rapidly. People are more conscious about status most

of the people purchase those household items which suite their style and perform certain

tasks for them. 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. 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 Pakistani people are more social and want to remain in contact with other people.

They celebrate lots of festivals like Eid Celebrations, Marriage Celebrations and other

cultural festivals. On these festivals they want to give gifts to their loved ones regarding

the nature of the festival. 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. This will

influence the demand for the product.

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.

As Pakistan is an Islamic country and people are very strict in case of Islam. Anything

against the philosophy of Islam on either print or electronic media is treated as against

Pakistan. Most of the people dislike anything which sabotages their culture or subculture.

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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. AEG must also manufacture those products which best

suites our culture.

Technological:

Advances in technology can have a major impact on business success. Technological changes

impacts socio cultural attitudes as well as on economy:

Companies have technology with which they can compete in Pakistan. 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. So they will have a

competitive advantage on other companies when they will launch their operations in

Pakistan.

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.

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, medium and large. These appliances can provide

so much comfort for the people of Pakistan because they can perform any task within

minutes without wasting any energy.

Environmental:

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Environmental factors include the weather and climate changes. 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 appliances comply with RoHS (Reduction of the use of certain hazardous

substances), a European Directive that calls for the reduction or elimination of potentially

harmful substances such as lead, cadmium, mercury and chromium in the manufacture of

appliances and electronics. 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.

As in case of Pakistan there will be some sort of competition for AEG in the market from

dawlance, orient, and other electronic companies. 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.

AEG has adopted a 360-degree approach to sustainable design, making it a consideration

throughout the supply chain, from the procurement of raw materials, construction of

products, delivery methods, and ultimately, the disposal of the appliances once they have

reached the end of their lifespan.

Legal:

These are related to the legal environment in which firms operate. The introduction of age

discrimination and disability discrimination legislation, 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.

For AEG to establish its business in Pakistan it has to face so much legal regularity from

the government. 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.

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.

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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, 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.

PRICING, PROMOTION & DISTRIBUTION STATEGIES

Pricing Strategy:

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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. 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. Discount and Allowance Pricing

2. Segmented Pricing

3. Psychological Pricing

4. Promotional Pricing

5. Geographical Pricing

6. International pricing

Out of these we will use few of them,

Discount and allowance Pricing:

(a) We will give quantity discount to our buyers who will buy large volumes. For instance

if they maintain their loyalty with us we will most probably give them 6% discount. It

will be a reward for our customers.

(b) A functional discount will be given to our trade channel members who perform various

functions such as selling, storing and record keeping.

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. 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.

Promotion Strategies:

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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. For promotion we have targeted the Upper

and middle class of Pakistan for our product.

Pull Strategy:

The strategy we have adopted for our promotion is “pull strategy”. 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.

The Promotion Mix:

It consists of the specific blend of advertising, sales promotion, public relations, 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. 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. For this purpose they should make advertisements for

Television and Radio.

Sales Promotion

In this promotion they should offer incentives through discount to our customers but within a

short period of time.

Direct Marketing

They should also use direct marketing strategy like proving our customers with catalogs.

DISTRIBUTION STRATEGY

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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. 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. It is also the most

effective strategy for the sales with maximum profit from the market.

LOCATIONS FOR LAUNCH (Cities)

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The locations and cities which we have chosen to launch AEG kitchen appliances are major

cities of Pakistan those are Lahore, Karachi, and Islamabad and we will sell our products through

our own outlets and some distributors as well. 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,

whether the product matches with their lifestyle 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 second thing why we chose these major cities is because of Consumer Buying Power. 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.

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, either there is already someone who have captured this market. 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.

The fourth reason why we chose these cities is because of consumer accessibility. 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. 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.

Market Targeting

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A target market consists of set of buyers sharing 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;

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.

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.

Target Market:

A target market consists of a set of buyers who share common needs or characteristics that the

company decides to serve.

Target marketing can be done in many levels these are as follows

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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.

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.

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.

Micro Marketing: the practice of tailoring products and marketing programs to the needs

and wants of the specific individuals and local customer groups. 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.

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, as this is due to many factors some of these factors I will explain here.

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, 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, Lahore and Karachi) to get the response from the market. If the

response is good then we will go for the overall market.

HIGH COMPETITION:

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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, 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.

MEDIA OF PROMOTION

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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;

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, and this

characteristic can be used for our interest.

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.

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.

Another reason for the selection of Magazine as a mode of communication is due to its

reminding property, as Magazine is a good.

Detailed information about the product can easily be communicated to the target market

as these products need detailed information to be communicated.

RADIO STATION:-

We used radio station for the promotional campaigns of our product because;

Local market target so Radio is the best way to target market access.

It is a good due to low cost effect.

Due to the retaining effect of the radio advertisement.

TELEVISION:-

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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;

The overall cost per message delivered is very low when we target a huge potential

market like Karachi, Lahore and Islamabad.

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

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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 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.

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 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.

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.

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 advertisement created was constructed from different videos available on the internet. 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 music is also taken from the internet and cut in accordance to the requirement of the

advertisement and then mixed according to the advertisement.

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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;

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.

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.

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REFERENCES

www.aeg.com

www.aeg-electrolux.co.uk

www.wikkipedia.com

www.google.com

www.youtube.com

Brochures of AEG products

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