Introduction-kh javed (Repaired) (1)

8/7/2019 Introduction-kh javed (Repaired) (1)

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MARKETINGMANAGEMENT

FIXED VENDOR &

MOBILE VENDOR

Submitted to: Ms. AyeshaSadullah

SHABBIR-MOBILE

KHAWAJA

GROUP MEMBERS:

SALMAN SHAH

DANNIYAL JAFRI


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EXECUTIVE SUMMARY

Shabbir (50) a leather product mobile hawker operates 7 days a week from 11 am to 11 pm at Zainab

market Saddar. His target markets are those people who belong to SEC-C. The mobile vendor has

positioned itself as value for money and the prices the mobile vendor quotes are between Rs.150 to

200.The only kind of promotion done by him is offering discounts to his loyal customers .Eid is the

season Shabbir looks forward to when he does roaring business. On any regular day Shabbir plans to

achieve a sales target of 5 to 15 sales everyday keeping an approximate of 30% margin over the products

he sells and calculates the profits made every 15th day. Shabbir predicts pressures on price from

competitive activities happening in the locality due to labor migration Other than that he also saves

sufficient capital to help him manage adequate levels of inventory. Shabbir buys his stock every 15 days.

Shabbirs priority is to have a permanent outlet or a stall though he believes that government is not able

to assist him in any manner.

Shabbir says that RGST will not have much impact on the market as the suppliers will not increase their

prices as it will affect their sales.

Khawaja Javed Hakak a shop owner of leather products. He owns the shop and the manufacturing unit

from where he obtains his daily supplies. His business mainly deals with the corporate giants, as well as

fulfilling local and international orders. The shop is for higher credibility plus a carrying out his retail

sales. Khawaja Javed started his business in 1986 with a small retail shop and then from continuous

improvement and development he is able to make his own manufacturing unit in the area of Korangi

Industrial Area where his products are made.

Khawaja Javed says that the inconsistent government policies with respect to domestic exports are

creating much more hurdle in there way reaching international markets and potential investors are not

coming into the country due to tense law and order situation and this law and order situation disturbs the

economic activity affecting all manufacturers at large due to strikes, market closing etc. Further more

when government is fails to provide continuous power which in turn leads to production delays due to

this creates bad name about the manufacturer causing to loose potential orders in future.

This report entails the activities, marketing objectives, SWOT Analysis of a street hawker as well as a

shop owner in a particular field. It covers all aspects of their business from pricing till promotion.

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TABLE OF CONTENTS

MOBILE VENDOR-SHABBIR.....4

Market Segmentation........4

Marketing Objectives cum Strategies .............5

Financials......5

Contingency Plans.......6

Future Plans.....6

SWOT Analysis........6

Pictures-(mobile vendor).............7

FIXED VENDOR-KHAWAJA TRADERS.......8

Market Segmentation..........8

Marketing Objectives cum Strategies............9

Financials.......9

Contingency Plans.......10

SWOT Analysis........10

Pictures-(fixed vendor)........11

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SHABBIR LEATHER PRODUCT-MOBILE VENDOR

Shabbir (50), a leather product mobile hawker operates 7 days a week from 11 am to 11 pm at Zainab

market Saddar. His target markets are those people who belong to SEC-C. The mobile vendor has

positioned itself as value for money

and the prices the mobile vendor

quotes are between Rs.150 to 200.The

only kind of promotion done by him is

offering discounts to his loyal

customers .Eid is the season Shabbir

looks forward to when he does roaring

business. On any regular day Shabbir

plans to achieve a sales target of 5 to

15 sales everyday keeping an

approximate of 30% margin over the

products he sells and calculates the

profits made every 15th day. Shabbir

predicts pressures on price from

competitive activities happening in

the locality due to labor migration Other than that he also saves sufficient capital to help him manage

adequate levels of inventory. Shabbir buys his stock every 15 days. Shabbirs priority is to have a

permanent outlet or a stall though he believes that government is not able to assist him in any manner.

Shabbir says that RGST will not have much impact on the market as the suppliers will not increase their

prices as it will affect their sales.

TARGET MARKET: target market consists of male shoppers mainly due the variety of male

products as well as female (sometimes) for the gloves.

GEOGRAPHIC SEGMENTATION: Shabbir moves around the main road at Zainab market Saddar

where people who live in that area or are familiar with the area know him. He only caters to the people in

that area.

DEMOGRAPHIC SEGMENTATION: He targets those who dont go for branded stuff or are reluctant

to shop from branded outlets and showrooms. They are his target audience. SEC-C is what he targets.

Being a mobile vendor and giving products on a very low price. Shabbirs target markets are those people

who belong to SEC-C. As said by him, majority of the sales made are to men or to females who aremostly buying stuff for the male members of their family.

POSITIONING: The mobile vendor has positioned itself as value for money, as the prices are very low

and even the product that he offers lasts for quite a long period. Such positioning is kept because SEC-Cis the target market who are the once as he says want durability in minimal price.

MARKETING OBJECTIVES CUM STRATEGIES

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PRODUCT: The product being offered to the customers of the mobile vendor are leather wallets, gloves,key holder, small purses and bags, visiting card holders, which is mostly targeting male members of

SEC-C as Shabbir said. The product being offered by Shabbir is of the quality as the price paid by the

customers. The products are brought from leather market at Zainab market where there are two qualitieseither Chinese or Pakistani, Shabbir buys both and catering to SEC-C. Chinese ones are cheaper than

Pakistani products.

PRICE: The prices the mobile vendor quotes are between Rs.150 to 200. As he targets the lower incomegroup, these prices are competitive in the market through which he attracts customers. His loyal

customers are offered a discounted price which motivates them to re-purchase the product from him in

the future.

Product Price Quoted tocustomers (Rs)

Cost (Rs) Minimum profitmargin to be kept after

bargaining

Wallet 120 60 30%

Diary 250 130 30%

Handbag 200 150 30%

Gloves 200 150 30%

Keychain 100 40 30%

Cardholder 90 50 30%

PLACE: Shabbir the mobile vendor has even located himself in a busy area of i.e Zainab market. Thestock which he has on his stall comes from the wholesalers in the leather market at Zainab market even

though hes buying from that place from past 25 years he gets no credit for purchases and the reason he

mentions for that is the lack of trust attitude for each other inculcated among the people over time.

PROMOTION: The only kind of promotion done by him is offering discounts to his loyal customers so

that they come back and re-purchase the products from him. Because as Shabbir says Allah is the onewho provides rizq to people and he has complete faith in Allah for the success of his business if he runs it

with honesty.

FINANCIALS: Eid is the season Shabbir looks forward to when he does roaring business. On any

regular day Shabbir plans to achieve a sales target of 5 to 15 sales everyday. Total sales revenue forShabbir in a day is projected to be approximately Rs. 2000 as per the estimates provided by him. That

makes a profit of at least Rs600 a day if the profit margin is kept at least 30%. Though Shabbir did not

accept it but on investigating from his colleagues we came to know that the mobile vendors have to pay

some amount to the law enforcement agencies on a daily basis.

He keeps a record not on every transaction but on the profits he made from the sales. He keeps an

approximate of 30% margin over the product he sells and calculates the profits made every 15th day.

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CONTINGENCY PLAN, CONTROLS AND COMPETITION: Shabbir predicts pressures on price

from competitive activities happening in the locality due to labor migration. It is expected that this would

not only have an impact on profitability but on break even sales volume as well. He tries to make

efficient use of his resources in order to avoid this. Other than that he also saves sufficient capital to help

him manage adequate levels of inventory. Shabbir buys his stock every 15 days.

FUTURE PLANS: Shabbirs priority is to have a permanent outlet or a stall though he believes that

government is not able to assist him in any manner. The reason why he wants to be affixed to ceratin

place is due to customer footfall in that particular area as well as people coming back and finding him.

POSSIBLE IMPACT OF RGST ON BUSINESS: Shabbir says that RGST will not have much impact

on the market as the suppliers wont get themselves registered with the tax body (tax evasion) and hence

will not increase their prices as it will affect their sales.

SWOT Analysis (as per Shabbir)

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Strength

1. Hardworking

2. Consistent in running the business

3. Faith in Allah

Weakness

1. Mobile-not a permanent place which

means that not much sales as people tend

to buy from those who have a permanent

place so at people could come back if the

product develops any fault

2. Quality which even its good is

considered to be inferior because the

vendor is mobile

Opportunity

1. Expansion possible only if the

government support in form of easy loans

or grants

Threat

1. Seasonal migrations by individuals

belonging to upcountry who come to

Karachi and setup their businesses hence

increasing competition

2. Extortion money paid on daily basis to

law enforcement agencies


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KHAWAJA TRADERS-SHOP OWNER

INTRODUCTION: Khawaja Javed Hakak, 35 who is a father of 3 lives in Gulistan-e-Jauhar. He leaves

for his shop which is located in

Sadder Zainab Plaza. He owns the

shop and the manufacturing unit

from where he obtains his daily

supplies. His business mainly deals

with the corporate giants, as well as

fulfilling local and international

orders. The shop is for higher

credibility plus a carrying out his

retail sales. Khawaja Javed started

his business in 1986 with a small

retail shop and then fromcontinuous improvement and

development he is able to make his

own manufacturing unit in the area

of Korangi Industrial Area where

his products are made. The

inspiration as an entrepreneur he got from his father who had a business of Fur products. Khawaja Javed

explained that from inception till the year 2005 he was in continuous phase of expanding his business and

grabbing every opportunity to make it more big, but the recession in 2007 has shattered his dreams and

hes facing a continuous decline in the sales. But as an entrepreneur Khawaja Javed is determined to

grow his business despite the fact that recession is gone but after shocks are due.

TARGET MARKET: They are 2nd generation manufacturers and retailers because people seek out for

them rather then looking out for business. Their end purchaser is customer not a consumer(Mostly).

They mainly target large corporate as well as small consumers including male and females because have

a complete variety.

GEOGRAPHIC SEGMENTATION: the geographic segmentation which is depicted

information that corporate giants mainly from Karachi, Lahore and Islamabad as well as international

leather products buyer who find excellent products on a cheap rate due to availability of cheap labor.

DEMOGRAPHICS: The class which Khawaja traders focus on Giant Corporate (SEC-A) and in

retailing part they target SEC-A and SEC-B+ and SEC-B- and SEC C.

POSITIONING: Product positioning by Khawaja traders is mainly an Excellent Quality product with

the minimum prices. They are not in competition with Branded Retailers like Jafarjees Leather and

HUB Leather because they have exactly same products available, but the only difference is that they

arent charging for the royalty of their brand name, which is being done by Branded retailers.

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MARKETING OBJECTIVES CUM STRATEGIES

PRODUCT: The product offering is wide at Khawaja Traders which includes assortments of Belts,

Bags, Pouch, Wallets, Diary covers, briefcases, giveaways, Card holders, key chains, Diaries, Folders

and gloves. These products are manufactured at their own units. And are targeted to SEC-A and SEC-B

(+,-) and SEC-C.

PRICE: The price offering is attractive, competitive and is at par with other leather accessories shops in

the market. There is no bargaining, only fixed prices with a profit of 10%-20% on corporate orders, and

the price per unit charged to those orders varies with quantity ordered. For retail selling the profit margin

is 25%-35% depending on the quality of product as well as uniqueness. The pricing strategy adopted by

Khawaja Traders is Cost plus pricing.

Product Price Range(RS) Price offered to

retail customers +Profit Margin

Price offered to

Corporate &International +

Profit Margin

Wallet 60-1200 Cost + 35% Cost + 12%

Diary 100-1500 Cost + 30% Cost + 20%

Handbag 300-5000 Cost + 35% Cost + 15%

Gloves 100-1500 Cost + 35% Cost + 10%

Keychain 20 600 Cost + 25% Cost + 20%

Cardholder 40-600 Cost + 25% Cost + 20%

PROMOTION: There is no promotional activity carried out by Khawaja Traders. The only thing which

they maintain and seek out for is customer relationship building through referrals and word of mouth due

to which they are able to get large orders from their customers. The other types of promotions which he

offers is only restricted to corporate orders which are in bulk quantity, as well as to attract them again.

PLACE: Khawaja traders have a shop in Zainab Market section of leather goods. From their all the

supplies to the corporate orders were made thru Mr. Javeds personal car.

FINANCIALS: Khawaja Javed calculates the sales at the end of the month because the sales pattern is

continuously fluctuating someday he might have a sale of 100,000Rs and some day he might have a zero

sale. He has a shop in an area where there is no collection of extortion money, due to which he saves a

substantial amount. On corporate clients the (%) of profit charged is around 15%-25% depending on the

quantity of order, and on retail selling he charge 25%-35% depending on the customer as well as product.

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CONTINGENCY: As corporate and international orders are time bound therefore a strong backup plan

is required in case of any violent law and order situation, he makes sure that all workers should reach the

workplace and if not he pickup them all in his van and take them to the manufacturing unit in order to

meet up the deadline.

SWOT Analysis (as per Khawaja Javed)

Strength

1. Brick and Mortar Retail outlet +

manufacturing Unit

2. Strong Relationships Corporate Vendor

3. Complete Business understanding. Could

entice customer to buy the product.

4. Vicinity free from extortionists collecting

extortion money. (Bhatta)

Weakness

1. Lack of skilled labor. No development

or improvement

2. Pressure is not handled effectively,

unable to meet deadlines.

Opportunity

1. Outsourcing supplies from china.

2. Start marketing through wide

availability of social networking in

international markets about product

offering.

Threat

1. Economic and political instability.

Investor refrains from placing order due to

the prevailing law order situation in fear of

unable to meet deadlines.

2. Distrust of Pakistani image ininternational market, potential as well as

existing investor withdraws their

investment. Distrust caused mainly due to

war on terror.

3. Improper infrastructure. Unable to meet

their deadlines due to continuous power

and gas failure.

4. Continuous red tapeism by government

in provision of export facilities.

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Introduction-kh javed (Repaired) (1)