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Super Asia Private Limited

Brand Audit

Submitted by:

Muhammad Saddam Sajid


Muhammad Adeel Uppal
Mudassar Umer

Bsc Accounting & Finance and MBA

GIFT University

Date: 26th April 2009

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Super Asia Private Limited

Brand Audit of Super Asia Brand

(First Part Brand Inventory)

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Acknowledgement

First of all, we thank to Allah Almighty to provide us


courage to complete this project. We also thank to
our honorable Professor Sir Nadeem Mustafa to
provide us opportunity to make the topic on such
interesting project.

Table of Contents
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Title no Particulars Page no


1 Super Asia (History) 1-2
2 Value Chain Analysis 3-4
3 Products 5-7
4 Services 8
5 Pakistan Economy 9-10
6 PEST Analysis 11-13
7 Market Analysis 14-15
8 Market Segmentation 16-17
9 Product Life Cycle 18-19
10 Competitor Analysis 20-24
11 Porter Five Forces Model 25-26
12 PEST Analysis of Super Asia 27-29
13 SWOT Analysis of Super Asia 30-32
14 Analyze buying behavior 33-34
15 Positioning strategy 35-36
16 Product Strategy 37
17 Pricing Strategy 38
18 Distribution strategy 39-40
19 Communication strategy 41-43

Super Asia
It goes way back to 1968, when Mr. Mian Muhammad Din, the founder of Super Asia,
offered its first ever product, Washing Machine, with manufacturing facilities at a small
scale to the local community of Gujranwala, city of Punjab. It was about to change the

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lifestyle of that generation and was a struggle to facilitate the end user with automated
technology. He was visionary to predict the pattern of growth in Home Appliances
Industry across Pakistan. It took more than a decade of painstaking engineering work to
build up the brand name, Super Asia, which had become the symbol of Quality,
Durability, Innovation and Economy. Today, it is a conglomerate of companies with
more than a dozen different products serving much sectors of society. The success tale
spread well over 25 years when Super Asia produced the first washing machine of
Pakistan. Later on Super Asia started producing room air coolers, gas and electric
geysers. Super Asia in order to maintain its superiority in producing public utility
products has introduced hot and cold, and only cold water dispenser. Similarly the
complete range of super Asia fans is of international standard. There are different sizes,
colors in Ceiling, Pedestal, Bracket, Circu-matic and Exhaust Fans.

Chronology of Events happened at Super Asia is as under:

1975: Super Asia produced its first ever Washing Machine in Pakistan.
1980: Introduced Air Cooler in the market.
1985: Offered Geyser in the market.
1995: Introduced Water Dispensers in the marketplace.
1998: Fans are launched in the market.
2003: Motorcycles launched and insulation sheet entry in the market.
2004: Air conditioner and Microwave Oven offered.
2006: Automotive Parts presented in the market.
2008: Three-wheeler CNG auto-rickshaw.
2009: Hardees International Burger Chain.
2010: Gas Stove and Cooker Hood.
Every successful company and organization defines its visions and mission and makes
the strategies and rules to achieve these missions and visions. To achieve these visions
and missions the organizations and companies have to fulfill the objectives so that the
long term visions and missions can be achieved. Same like that Super Asia also have
defined its vision and mission which are quoted here.

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VISION:
“To be the market leader in every of our products,
Nationally and regionally”
Our foremost aim is to think big, be the pace setter and modernizer. Since 1972, being the
market leader in washing machines, we have concrete plans to replicate our best practices
in every of our offerings, across the region. It is the VISION that every employee of the
organization is clear about.

MISSION:
“To win the utmost satisfaction, trust and loyalty
Of our valued customers”

Super Asia uses the best prevalent tools to win and maintain the satisfaction trust and
loyalty of its valued customers. Quality, Delivery and Innovation are the core elements of
our philosophy. Stake holders at every level strive to maintain the status quo of the
company, to deliver the best. Continues struggle with commitment is technique to
accomplish this MISSION.

Value Chain Analysis


Value Chain Analysis describes the activities that take place in a business and relates
them to an analysis of the competitive strength of the business. Influential work by

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Michael Porter suggested that the activities of a business could be grouped under two
headings:

(1) Primary Activities - those that are directly concerned with creating and delivering a
product (e.g. component assembly). In Super Asia the primary activities are
manufacturing and assembling. Manufacturing includes the manufacturing of raw
materials, fans, washing machines and geysers and assembling contains the assembling of
motorbikes and rickshaws.

(2) Support Activities, which whilst they are not directly involved in production, may
increase effectiveness or efficiency (e.g. human resource management). It is rare for a
business to undertake all primary and support activities. In Super Asia, the supporting
activities are human resource management, quality control management, inventory
control management, accounting system and other supporting activities.

Linking Value Chain Analysis to Competitive Advantage

The activity a business undertakes is directly linked to achieving competitive advantage.


For example, if Super Asia which wishes to outperform its competitors through
differentiating itself through higher quality will have to perform its value chain activities
better than the opposition. By contrast, a strategy based on seeking cost leadership will
require a reduction in the costs associated with the value chain activities, or a reduction in
the total amount of resources used.

Primary Activities

Primary value chain activities include:

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Primary Activity Description


Inbound logistics All those activities concerned with receiving the raw materials
Operations The manufacture of products of Super Asia- the way in which resource
inputs (e.g. raw materials) are converted to outputs (e.g. finished
goods )
Outbound All those activities associated with getting finished goods like washing
logistics machines, fans, etc to consumers.
Marketing and Essentially an information activity - informing buyers and consumers
sales about products and services (benefits, use, price etc.)
Service All those activities associated with maintaining product performance
after the product has been sold

Support Activities

Support activities include:

Secondary Description
Activity
Procurement This includes how Super Asia deals with the suppliers in order to
purchase the raw materials. (e.g. sourcing and negotiating with
materials suppliers)
Human Resource That includes how Super Asia provides benefits and compensations to
Management its employees in order to retain them.
Technology Activities concerned with managing information processing and the
Development development and protection of "knowledge and experience" in a
company.
Infrastructure Concerned with a wide range of support systems and functions such as
finance, planning, quality control and general senior management.
That department is lead by the executives of the Super Asia company.

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PRODUCTS
Super Asia offers a lot of home appliances for its valuable customers. Super Asia is a
leading manufacturing company in Pakistan and is competing with foreign companies
with its weapon of quality and customer satisfaction. Super Asia is the biggest home
appliances producer in Gujranwala and offers leading home appliances. They offer with
lot of home appliances which compete with all foreign products due to its fine quality,
standards and customer satisfaction. Following are the products which Super Asia offers
in the home appliances products:

Washing Machines (large number of models)


• Best performance and electric economy with heavy-duty electric motors.
• Double strike bars for clean, bright and extraordinary washing.
• Ideal portable washers for large, medium and small families.
• Maintains its performance even on low voltage.
• Save time & detergent while brilliant washing.

Microwave Oven (large number of models)


• Defrost Setting.
• Painted Steel Cavity.
• Push Button Door.
• Painted steel cavity.

Air Conditioner (large number of models)


• New Wall Mounted Series.
• Built to the highest international standards.
• Ensuring maximum efficiency, performance and reliability.

Fans (large number of models)


• Quiet operation.

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• Specially designed blades.


• Even air throw & Revolving grill.

Room Air Coolers (large number of models)


• Ultra cool air and quite performance.
• For the first time in Pakistan introduce water proof pump.
• An efficient and energy saver cooling system.

Water Dispensers (large number of models)


• New & easiest way to get hot & cold drinking water with water guard.
• New striking design.
• Low energy consumption.
• Easy to install
• Attractive low price.

Electric Water Coolers (large number of models)


• Complete plastic front.
• Continue supply of cold water.
• Seasonal effects and rust proof.
• Completely tested

Gas Water Heaters-Geysers (large number of models)


• Automatic Thermostat.
• Available in 25 & 55 Gln.
• No water leakage.

Motor bikes: (large number of models)


• Comfortable seat
• Economical
• Less petrol mileage
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Product types, varieties and brands

PRODUCTS
☼ Air Conditioners ☼ Fans

☼ Washing Machines ☼ Room Coolers

☼ Water Dispensors ☼ Geasers

☼ Microwave Ovens

☼ Motor Bikes

Note: Every product has different models.

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Services
• To provide customer a prompt, quality and reliable service at their doorstep Super
Asia has a largest after sales service network through out the country.

• To take care of customer appliances all service centers have latest tools,
equipments and machineries.

• After sales service team consist of Engineers and highly qualified staff with great
professional approach due to this reason customer feels confident, once their
appliance are being maintained.

• Super Asia after sale service also provide the facility to customer of lifting their
units from residence to service center and delivering within 48 hours.

• We take care of our customers by remaining in contact with them so that they
should not face any type of problem.

Following are the Address of branch offices:

• Super Asia sales & service 89 temple road Lahore. Mob:0300-8406116

• Super Asia sales & service 405 Jinnah colony Faisalabad. 041-647943

• Super Asia sales & service Gulf Plaza Chandni chowk near Gondal CNG Ist floor
Flat no1 Rawalpindi. 051-4843187, 0321-5181000

• Super Asia sales & service Ahmad park colony opposite Jamia-Saqlain road near
Khanawal road Multan. 061-770225

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Super Asia Private Limited

Pakistan Economy
Pakistan is an under developed country. It has suffered from very economical and
political crises that include internal political disputes and low levels of foreign
investment. Between the era of 2001-2007, the poverty status in the country will
increased by 15% but the spending in the provincial capitals and federal capital
Islamabad shows the large amount of development. This creates a gap between the
developed and underdeveloped cities of Pakistan. In the era of 2004-2007, there is a large
foreign investment came in Pakistan. Very large industry including telecommunication,
media and several other manufacturing industries launched their units in Pakistan. In that
era the GDP of Pakistan raise up to 5-8% but this growth was declined when Pakistan
faced the very critical electricity crises.

Despite electricity crises, the other major crucial element is inflation. Petrol prices and
the prices of other home appliances and other consumable things are going up and up
vigorously. It is jumping from 7.7% in 2007 to 20.8% in 2008, and 14.2% in 2009.
Moreover due to political instability in the country, the value of rupee is depreciating and
at this point $1 is equal to Rs.81 (approximately).

The government of Pakistan now taking the loan from the International Monetary Fund to
stabilize the economy and reduce the budget deficit of the country but this loan caused
the burden on the local people of Pakistan. The poor person became poorer and the rich
person became richer. The middle class is going to be end slowly. Textile sector which is
a very crucial and important constituent of GDP of the country, faces many sever crises
of electricity. Due to that matter the export of the country regarding textile is also
affected. Other long term challenges include expanding investment in education,
healthcare, and electricity production, and reducing dependence on foreign donors.
Reduction in the education and health budget and the increase in the budget of the
military and security & defense are also affecting severely the economy of the country.
Most of the people in the country face the shortage of heath and education facilities. The

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unemployment rate in the country is also increasing day by day. The other major factor
that today Pakistan faced is the issue of security in the country. That issue should be
resolved in order to stabilize the economy.

These all the variables in the economy can be improved by good governance, hard work,
efficient utilization of resources, homogeneous investment in all cities of Pakistan,
encouragement of foreign investment, stabilization of home and government industry,
increase of exports, reduce the power and energy crises and reduction of foreign loans.

Key variables:
GDP (purchasing power parity): $448.1 billion (2009 est.)
GDP (official exchange rate): $166.5 billion (2009 est.)
GDP - real growth rate: 2.7% (2009 est.)
GDP - per capita: $2,600 (2009 est.)
Labor force: 55.88 million (2009 est.)
Unemployment rate: 24% (FY05/06 est.)
Investment (gross fixed): 18.1% of GDP (2009 est.)
Inflation rate (consumer prices): 14.2% (2009 est.)
Industrial production growth rate: -3.6% (2009 est.)
Exports: $17.87 billion (2009 est.)
Imports: $28.31 billion (2009 est.)
Exchange rates: (PKR) per US dollar - 81.41 (2009)

Source: 2010 CIA World fact book

PEST Analysis
Political factors:

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• Pakistan is a major economic power in south Asia, but political violence poses a
major threat to the country's continued growth. Over the years, Pakistan has
experienced military-led rule, assassinations of national leaders and lawlessness in
the country's tribal areas.

• Well recently the election has decided Pakistan people’s party with heavy
mandate and Muslim league Nawaz got the 2nd position, the Pakistan peoples
party in collision with Muslim league Nawaz made the government. The
government is not trying to solve issues but creating problems for the president
Musharaf and forcing him to resign for the job.

• Political instability in Pakistan has included militancy in tribal areas; violence in


Karachi, one of Pakistan's largest cities;

• Political violence in large cities of Pakistan especially in Karachi poses a large


threat to Pakistan's economy. Karachi is the main hub of commercial activity,
accounting for 80 percent of Pakistan's exports.

• Pakistan's economic growth is intertwined with political stability at the national


level.

Economical Factors:

• After the founding of the Pakistani state in 1947, the government's economic
policy concentrated attention on developing an economic infrastructure, achieving
self-sufficiency in food, and developing export industries.
• The economy of Pakistan is the 27th largest economy in the world in terms
of purchasing power, and the 45th largest in absolute dollar terms.
• Pakistan was facing a sluggish growth and incomes of the middle and lower
middle classes, which constituted 60-70 per cent of the population, might

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decrease significantly, reducing their purchasing power and increasing


unemployment.
• Government was trying its best to expand the tax net in the coming budget, but all
these efforts would prove futile due to the prevailing law and order situation in the
country.
• Inflation remains the biggest threat to the economy, jumping to more than 9% in
2005 before easing to 7.9% in 2006. In 2008, following the surge in global petrol
prices inflation in Pakistan has reached as high as 25.0%. The central bank is
pursuing tighter monetary policy while trying to preserve growth.
• Foreign exchange reserves are bolstered by steady worker remittances, but a
growing current account deficit - driven by a widening trade gap as import growth
outstrips export expansion - could draw down reserves and dampen GDP growth
in the medium term.
• Agriculture accounted for about 53% of GDP in 1947. While per-capita
agricultural output has grown since then, it has been outpaced by the growth of
the non-agricultural sectors, and the share of agriculture has dropped to roughly
one-fifth of Pakistan's economy. In recent years, the country has seen rapid
growth in industries (such as apparel, textiles, and cement) and services (such as
telecommunications, transportation, advertising, and finance).

Social factors:
• Economic factors gave birth to a certain type of socio-political order, casting its
long shadow over the coming generations, has been seen with a benign eye.

• The effect of culture and language on the economic development has


been completely ignored. Even sociologists and anthropologists have not
attempted to quantify these variables while attempting to explain the evolution of
Pakistani society.
• Simplistic and quantitative measures of education and health care are taken
to be main determinants of the level of human capital. The number of schools
and enrollment size is used to measure the literacy rate.

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• Pakistan's political economy can be understood only if major historical, social,


cultural and linguistic factors are brought into focus. Only then can a credible
course of action be prescribed.

Technological factors:

• The high-technology sector has become the most important and dynamic
component of manufacturing in the economy of Pakistan, particularly in its
remarkable performance in the generation of output and income.
• However, despite its importance as a source of employment, the rate of growth of
high-tech employment during the last three decades has declined sharply. In
addition a remarkable change in factor shares towards an increasing trend of
capital share and a decreasing one in the income rewarded to labor have been
observed.
• In spite of the crucial importance attributed to high-tech industries in Pakistan, no
systematic study so far has been conducted on the structure of production of this
sector. This study is therefore, the first attempt to fill this gap.
• Production is characterized by positive economies of scale while technical change
exhibited a factor bias, being material saving and capital using, no discernible
effect was noted with respect to labor

Market Analysis

Super Asia is using to maximize the sales of the company, In this analysis stage of every
product is determined and these stages are related to the sales position of that product.
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The next analysis in this chapter is product life cycle. Product life cycle shows the all
stages of sales from its production to the decline of the product. Every product when
produced passes from different stages of the sales, sometimes its sales is going to
increase and sometimes its sales starts decreasing. Sometimes its sales are at the boom
position and sometimes theses are going to decline.

Market Share:
In order to analyze the market share of the products of Super Asia we made the BCG
(Boston Consulting Group matrix). The detail of this matrix is given below:

Stars - Stars are high growth businesses or products competing in markets where they are
relatively strong compared with the competition. Often they need heavy investment to
sustain their growth. Eventually their growth will slow and, assuming they maintain their
relative market share, will become cash cows. Here the motorcycle and fans of Super
Asia best fit because their growth is high but they still need high investment to sustain
their growth.

Cash Cows - Cash cows are low-growth businesses or products with a relatively high
market share. These are mature, successful businesses with relatively little need for
investment. They need to be managed for continued profit - so that they continue to
generate the strong cash flows that the company needs for its Stars. Washing Machines of
Super Asia comes under this head because they are earning a lot for the company and
need very low investment.

Question marks - Question marks are businesses or products with low market share but
which operate in higher growth markets. This suggests that they have potential, but may
require substantial investment in order to grow market share at the expense of more
powerful competitors. Management have to think hard about "question marks" – which
ones should they invest in? Which ones should they allow to fail or shrink? Water
Dispensers, Geyser, Room Air Cooler and Safe Lines have very low market share but
they operate in higher market growth. Super Asia should think about the Water

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Dispenser, Geyser, Room Air Cooler and the Insulation Sheet because they can earn a lot
for the company, if investment is made in these business portfolios.

Dogs - Unsurprisingly, the term "dogs" refers to businesses or products that have low
relative share in unattractive, low-growth markets. Dogs may generate enough cash to
break-even, but they are rarely, if ever, worth investing in. Air Conditioners and
Microwave Oven of Super Asia are at this stage.

Market Segmentation
Dividing a market into distinct groups of buyers who have distinct needs, characteristics,
or behavior and who might require separate products and marketing mix. Rather than
Super Asia offers the same marketing mix to vastly different customers, market

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segmentation makes it possible for Super Asia to tailor the marketing mix for specific
target market, thus better satisfying the customer needs. Not all elements of marketing
mix are necessarily changed from one segment to the next. Super Asia has segmented by
various bases, and industrial markets are segmented somewhat differently from consumer
markets. A basis for segmentation is a factor that varies among groups within a market,
but that is consistent within groups. Super Asia has segmented the market on the
following bases:

Geographic Segmentation:
Geographically Super Asia segmented the world market as that, the company normally
focuses on the Pakistani market for whole of its products. Pakistani market is the target
segment of Super Asia. They make the segments of the whole world market and then
decide to focus on one segment which is the Pakistani market.

Demographic Segmentation:
Super Asia divides the market for different products on different way. There are lot of
segments of market on the bases of demography, like; on the bases of gender, age,
education, occupation, income and family status. Super Asia has to choose the different
segments for their different products. For every product of the company there is different
segment.

Psychographic Segmentation:
On the bases of psychology the company has made the segment on the bases of lifestyle,
values and attitude. There is different level of products for different status people. This
segmentation based on the lifestyle and family status.

Behavioral Segmentation:
This segment of the company is based on the usage rate, brand loyalty, price sensitivity
and benefits of the product.

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Product Life cycle


A product’s life cycle can be divided into several stages characterized by the revenue
generated by the product. If a curve is drawn showing product revenue over time, it may
take one of many different shapes, an example of which is shown below:

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Development Stage:
The life cycle concept may apply to a brand or to a category of the product. Its duration
may be as short as a few months for a fad items or a century or more for product
categories. Product development is the incubation stage of the product life cycle. There
are no sales and the firm prepares to introduce the product. As the product progresses
through its life cycle, changes in the market mix usually are acquired in order to adjust to
evolving challenges and opportunities.

Introduction Stage:
When the product is introduced, sales will be low until customers become aware of the
product and its benefits. Some firms may announce their product before it is introduced,
but such announcement also alert the competitors and remove the element of surprise.
And Super Asia also uses this strategy that they announce the product before the
introduction and their view about this thing is that customers become aware of the
product before its introduction in the market. Advertising costs are typically high during
this stage in order to rapidly increase the customer awareness of the product and to target
to the early adopters. When Super Asia was introducing its Motorcycle they were
advertising a large. During the introductory stage the firm is likely to incur additional
costs associated with the initial distribution of the product. These higher costs coupled
with a low sales volume usually make the introduction stage a period of negative profits.
During the introduction stage, the primary goal is to establish a market and build primary
demand for the product class.

Growth Stage:
It is the stage of the product life cycle in which a product’s sales start climbing quickly. It
is a period of rapid revenue growth, sales increases as more customers become aware of
the product and its benefit and its additional market segments are targeted. Once the
product has been proven a success and customers being asking for it, sales will increase
further as more retailers become interested in carrying it. The marketing team may

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expand the distribution at this point. Motorcycle and Ovens of Super Asia are at this stage
because their sales are increasing. When the competitors enter the market, often during
the later part of the growth stage, there may be price competition and increased
promotional costs in order to convince the consumers that the firm’s product is better
than that of the competition.

Maturity Stage:
The stage in the product life cycle in which sales growth slows or level off, it is the most
profitable stage while sales continue to increase in this stage, they do so at a slower pace.
Because brand awareness is strong, advertising expenditure will be reduced. Competition
may result in decrease market share and prices. Super Asia’s Washing Machines and
Spinners are at the maturity stage and earning a lot of profit for the company and their
advertisement cost is also very low. The competing products may be very similar at this
point, increasing the difficulty of differentiating the product. There are lot of companies
in the market, domestic and foreigners. The company is placing effort into encouraging
competitor’s customers to switch, increasing usage per customers and converting the non-
users into customers. Sales promotion may be effort to encourage retailers to give the
product more shelf space over competing products.

Competitors Analysis

Home Appliances industry is facing the intense competition. There is no such big merger
is taking place in this industry. The local competitors are Dawlance, Waves, PEL, Singer
and imported competitors are LG, Sam Sung, Siemens and General. Haier is a joint

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venture of Government of China and Private sector of Pakistan, so it is the only


multinational company which has its plant in Pakistan. Currently there is a decline in the
manufacturing industry in Pakistan and especially in the home appliances industry but
from last six to seven years industry growth rate is almost ten to eleven percent. There are
many factors behind it like political uncertainty, economic crush which came worldwide
and energy problem in Pakistan, but now the situation is very much under control.

From the last few years there is a major change in buying patterns of people, per capita
income increased and living standard of the people also changed which overall increased
the demand. Decrease in family size also increased the demand. Hot weathers and
increase in population also increase the demand for products which overall increased the
production. Demand on the occasions like marriages also increased. Technology is also
changing in this industry and people are also becoming health conscious there is a
technological change. The new entrant threat is low as the entry barriers in this industry
are high, including high capital cost, government policies, already existing strong brand
names, and a concentrated and highly competitive market.

PEL:
Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. It
was established in 1956 in technical collaboration with M/s AEG of Germany. In October
1978, the company was taken over by Saigol Group of Companies. Since its inception,
the company has always been contributing towards the advancement and development of
the engineering sector in Pakistan by introducing a range of quality electrical equipments
and home appliances and by producing hundreds of engineers, skilled workers and
technicians through its apprenticeship schemes and training programmes.

Dawlance:
Established 1980
Refrigerator Production 1981
Deep Freezer Production 1988
Deep Freezer Manufacturing Unit 1992
Launched RAC and No-Frost Ref 1992

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Launched WM and MWO 1995


Production of No-Frost Refrigerator 1996
Production of Aero-Design Series 1996
Production of Up-Right Freezer 1997
ISO 9001 Certification 1999
Production of Washing Machine 2000
ISO 14000 Certification 2001
USL Shops 2001
Electric city # 1 2001
Signature series USL Shops 2002

Waves:
Waves was established in 1973 and grew to a leading Home Appliances manufacturing
Company in Pakistan, in a very short span of time. This was achieved by the tireless
efforts of our devoted Management, highly motivated professionals and dedicated team
work, committed to excel in the quality and services. It has highly skilled professionals,
responding rapidly to the market needs. With the most modern and high-tech CAD
manufacturing facilities, our products capture over 80% of the local market for
Refrigerators, Deep Freezers, Air Conditioners and other home appliances. The company
manufactures Refrigerators, Deep Freezers, Air Conditioners, Washing Machines,
Microwave Ovens and many other quality home appliances, with the production ratio
exceeding the overall production of Pakistan's appliances manufacturers.

Singer:
Singer has been operating in Pakistan since 1877, when the first Singer sewing machines
went on sale in our shops. Today, Singer Pakistan Limited is a large, diversified company
with a presence throughout Pakistan. Singer has the largest retail network in South Asia
with over 750 stores. Beginning with the sewing machine, Singer’s product portfolio has
diversified to encompass a highly successful multi-brand strategy combining products of

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top world marques with the company’s own products across a range of household and
industrial categories. Singer (Pakistan) B.V. holds 70.28% of the issued share capital of
Singer Pakistan Limited. Singer Pakistan Limited was listed on Karachi and Lahore
Stock Exchanges in 1985.

Honda Pakistan:
Atlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor
Co. Ltd., Japan. The company was created by the merger of Panjdarya Limited and Atlas
Autos Ltd. in 1988. Both these motorcycle manufacturing concerns were established by
the Atlas Group. In addition, a third concern, Atlas Epak Ltd. was taken over by the
Government of Bangladesh in 1971 after the fall of Dhaka. AHL manufactures and
markets Honda motorcycles in collaboration with Honda Motor Company. Honda
motorcycles are by far the largest selling motorcycles in the country with an unmatched
reputation for high quality, reliability and after-sales-service.

Suzuki Pakistan:

In 1983 Pak Suzuki Motor Company Ltd (PSMCL) established as a joint venture between
Suzuki Motor Corporation of Japan (SMC) and Pakistan Automobile Corporation
(PACO) Govt. of Pakistan.

Yamaha Pakistan:
DYL Motorcycles Ltd; is engaged in the manufacturing and assembling of YAMAHA
brand Motorcycles in Pakistan. DYL brands are the undisputed leader in 100 cc category
in Pakistan Motorcycle Industry. Our Manufacturing facility is situated at Hub Chowki,
whereas our state of art assembling plant is located in Uthal Industrial Area, Distt:
Lasbella, Baluchistan . A professional commitment ,stringent quality control, nationwide
dealers network, excellent after sales, aggressive marketing have helped established the
company’s image and reputation as a front runner brand in Pakistan Motorcycle Industry.

Pak hero:

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Pakistan is one of those countries of the world where Auto Rickshaws are extensively
used as a public transport. Till 1996, Italian made Rickshaws were used in Pakistan
having 90% market share. In 1996, a young Pakistani businessman and industrialist, Mr.
Muhammad Javed Iqbal introduced “PAK HERO RICKSHAW” in Pakistani market.
Produced within the limited resources this Rickshaw was a masterpiece of quality and
performance which brought about a revolution in the auto industry. It gained extensive
popularity and in a very short period of time, “PAK HERO” became a known name all
over Pakistan.

PAK HERO auto rickshaw having similar functions, shape and use as that of Italian made
rickshaw, proved to be a very close substitute for it. It is amazing that Pak Hero became
the market leader in a period of only three year and its demand has been on the rise ever
since.

Others:
Ravi, king hero, Toyo, metro, united etc.

Market Share (Home appliances)

Market share
Super Asia S inger
8% 6%
LG
13%
Dawlance
S inger
30%
Dawlance
W aves
P el
LG
Pel
27 S uper Asia
18%

W aves
25%
Super Asia Private Limited

Market Share (Motorcycles)


Other including
Super Asia
12%
Metro
1%
Sohrab
3% Honda
Hero Yamaha
6% Pak hero
Star Suzuki
4% Star
Honda
Suzuki Hero
55%
4% Sohrab
Pak hero Metro
4% Other including Super Asia
Yamaha
11%

Porter five forces model


The final out come of the research was that Super Asia has lost its competitive edge when
it comes to other brands. We will discuss in the light of the Porter’s Five Forces Model.
These five forces are following:

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Super Asia Private Limited

• The risk of new entry by potential competitors


• Rivalry among established firms
• The bargaining power of the buyer
• The bargaining power of the supplier
• The threat of substitute products

The direct competitors of Super Asia are Dawlance, Waves, LG, and Haier etc. The
Dawlance is market leader in the home appliances and PEL is still on second number. But
in window room air conditioner (WRAC) the PEL is market leader. The indirect
competitors for Super Asia in this industry are Samsung, Orient, Mitsubishi, Sabro,
Nobel and others Chinese brands available in the market. The Super Asia has no big
threat from all these companies.

RISK OF NEW ENTRY BY POTENTIAL COMPETITORS:

High Investments.
Threat for new entrants is high in this industry, partly due to the fact that this industry is a
lucrative industry and is very attractive for foreign companies. But in order to really
make a mark in this industry, you need to have strong investment and funding. For this
matter, Super Asia is at risk of the influx of foreign investments in this sector.

Foreign Brands.
Foreign brands like LG, Sony, Samsung, Mitsubishi and Haier etc. are a big threat for
Super Asia. The quality and brand image of foreign brands is high as compared to Super
Asia. Foreign brands have captured the market of split AC and television.

THE BARGAINING POWER OF THE BUYERS


Company’s buyers are the people who ultimately purchase and consume its products. If
there are so many brands and products available in the market at different prices, the
bargaining power of the buyers will be high because they have many alternatives, they

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Super Asia Private Limited

can demand to lower the prices. On the other hand if there are few brands or companies
in the market, then the buyers will be in a weak position to bargain. As a result, the
company can raise its prices and earn greater profits. If we see the Pakistani industry the
bargaining power of the buyers is very high because a variety of products are available in
the market at different prices. So the buyers can choose the product according to his
requirements.

THE BARGAINING POWER OF THE SUPPLIERS:


Suppliers can be viewed as a threat when they are in few numbers in the market. In that
case, the suppliers are able to force up the price of inputs. The after effects of that can
result in the reduction in the quality of inputs. If the suppliers of Super Asia Company are
weak then company will force the suppliers to reduce the prices of input and demand for
higher quality. If the suppliers are selling the products that have very few substitutes and
are differentiated from others, then the suppliers are always in good bargaining position.

PEST Analysis of Super Asia


Political Factors:

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Super Asia Private Limited

• Pakistani government is somehow stable in these days and focusing on the foreign
trade. Super Asia is taking advantage of this move by government and is trying to
increase their exports.
• Government is providing opportunities to the companies to provide benefits like
old-age benefits, disability benefits, pension, etc. These benefits are to be
provided by every company under the supervision of Social Security Ordinance.
• Super Asia is also providing its employees the benefits of social security.
• Government has allowed the Puffery statements in advertisement but there should
be truth in selling and deception statements are not allowed.
• The company has a trade mark and a trade name that gives the company an
exclusive right by the government policies to use it and enter into contracts and
dealings through its registered trade name.
• The company is bound to follow the workers safety regulations as laid down by
the workers safety act.
• As the policy of government the minimum wage that should be given to a worker
is 6000/= but Super Asia is not following that policy as other companies in the
area are also not following it.
• All the tax related policies are being followed by Super Asia.
• The company also publishes its annual reports as are compulsory to publish by the
government.

Economic Factors:
• Super Asia plays an important role for economic growth by contributing to the
economy of the country.
• The cost of production includes wages of workers, salaries to the staff, purchases,
utilities, carriage inward and outward, etc.
• The company offers a variety of products for different classes of customers. For
example, good quality and a bit expensive products for higher class and cheaper
products for middle and lower class customers.

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Super Asia Private Limited

• Some SBUs like washing machine and fans are at their boom while others like
motorcycle, oven, AC, etc are at their growth stage. It never happened that any
one of Super Asia’s product went into its recession stage.
• The prices of products of Super Asia are higher than products of its competitors
but still Super Asia has the largest market share due to the quality of its products.

Social Factors:
• The salaries and wages of the workers and management are not satisfactory so the
income distribution factor is not satisfactory.
• Super Asia is funding many NGOs and welfare organizations in the whole
country.
• Super Asia has the honor of being the first and only local home appliances
company to sponsor an international cricket series.
• The company is running a hospital “Mian Muhammad Din Memorial Trust
• Hospital” for the welfare of its employees as well as the people of the near
vicinities.
• The company is providing various types of home appliances which are helping in
improving the life style of the people.
• The company is providing models in a variety of fashion which can be used
differently at different places.

Technological Factors:
• The company is having a computerized lath machine which helps in reducing
labor cost and time needed to produce a dye.
• Due to technological improvements many items are available at lower prices from
China and Super Asia is taking full benefit from it.
• The manufacturing department also has different types of dyes for different
models or shapes of washing machine and fan.
• A tool shop also operates within the factory premises, which manufactures its
own tools to be used in production.

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Super Asia Private Limited

• Latest technology is being used by the company for motorcycle engine and air
conditioner machinery.
• The company is also thinking of introducing a new swap machine that would note
the attendance of each employee when one will swap his card into it. This
machine will also provide the management with the statements showing the late
minutes of each employee and the leaves in the month.

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Super Asia Private Limited

SWOT Analysis
SWOT stands for strengths, weaknesses, opportunities and threats. This is the analysis
related to the strengths which Super Asia proudly have, weakness of Super Asia,
opportunities which Super Asia can avail to prevent from the threats faced to the
company and the weaknesses of the company. The reason to do this analysis is to find out
that, what are the strengths of the company which can overcome the weaknesses of the
company and to determine the opportunities which can company avail to prevent the
threats to the company. I will individually examine the strengths, weaknesses,
opportunities and the threats faced by Super Asia here.

Strengths:

• The company has built up goodwill in the market of Pakistan, from a very long
time.
• The company has the largest market share throughout the country in the Washing
Machine industry and now striving to maintain and increase its share in Fan
industry as well.
• Brand name of Super Asia is known to almost every person in the country and is
very famous in home appliances industry.
• The company deals in all sorts of home appliances, like Washing Machine,
Spinners, Air Conditioners, Fans, Geysers, Water Dispensers, Room Air Coolers,
Microwave Oven and Cooking Range.
• Super Asia has launch the food chain with the famous food chain in America
• Continuous achievement of FPPCI exports Trophy.
• Super Asia is exporting its products to various regions across the globe mainly
markets like Africa, Middle East and Asia.
• The company is having a number of old employees who are committed and loyal
with the company.
• Super Asia offering benefits like medical facilities in the company hospital and
advance pay etc.

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Super Asia Private Limited

• A large number of models are available in the range of every product especially
fans.

Weaknesses:

• Technical labor and management of the company has the negative views about the
salaries and wages.
• Shortage of skilled labor in the company due to large competition.
• Low advertisement budget
• Most of the managerial staff is not well educated.
• The salaries of management staff are very low due to which the well educated and
experienced people does not come for the job in company.
• Same promotional strategies for international markets

Opportunities:

• Super Asia has opportunities to increase their exports of fans in order to increase
the market share.
• Introduce the latest technology in their products and in manufacturing units.
• More budget can be allocated on electronic and print media for advertisement to
increase their sales.
• Exhibit their products in international exhibitions.

Threats:

• Chinese Technology can decrease the sales of fans and other products
• Lower prices of competitor’s products.
• Current Power & Electricity crises are very big hurdle for the manufacturing unit
of the company. Due to the shortage of electricity the company may be unable to
meet the orders.

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Super Asia Private Limited

• Market demand is very seasonal.


• Retention of key staff critical.
• Possible negative publicity.

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Super Asia Private Limited

Analyze buying behavior


The buying process is initiated by the consumer itself. First of all, he or she identifies the
need that what type of product he or she wants. If a person wants to purchase any product
from Super Asia, he first has a need of that product. Without need there is no initiation of
buying process. A consumer, making a purchase decision will be affected by the
following three factors:

1. Personal

Every product of Super Asia is associated to the target market. Their products are unique
to a particular person they also take care the demographic Factors like gender, Race, Age
etc. Basically women in the family are responsible for the decision making. Young
people purchase things for different reasons than older people. Demographically they
design their products with innovative styles and colour combination so that the person
from every age group will like their products. If we consider about men and women,
women are more conscious and involved in the buying.

2. Psychological

Psychological factors include motives, Perception, Personality, life styles and attitudes.
When company made its products, in the designing phase they consider the life
style and the pattern of living in the manufacturing process. People in the large
cities prefer both the luxurious and economical products. But in the small cities,
towns and villages people prefer more the economical products. The
advertisements of the products are also made according to the lifestyle and usage
pattern of the customers.

3. Usage Pattern and Behavior

Super Asia divides its markets on two variables on the usage pattern. These are given
below:
1. Customers who used more products
2. Customer who used less products

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Super Asia Private Limited

Karachi, Lahore, Islamabad, Faisalabad, Multan, Sialkot, Gujrat, Gujranwala, Rawalpindi


and Islamabad are the cities in which Super Asia products are used more. The strategy of
the company in launching its products is approximately the same for every key area.
Super Asia company is focus on both lightly the heavily usage customers because both
types of customers provides them good feedback about their products in order to improve
it. The reason for the heavily usage of Super Asia products is of the product quality and
durability.

Criteria used to evaluate alternative products:

The benefits which are perceived by the customers about their products that is really
different, better and unique as compared to their competitors are:

• Basic quality of their products


• New designs
• Innovation in the product.
• Durability
• Low costs
• After sales services

Product usage, evaluation and discarded:


Customers buy products not only with their features but also for their perceived benefits
that the product delivers. According to the marketing department of the company, the
main purpose of their product is to provide quality and durability to its customers. They
are also concerned with the appearance and packaging of their products. According to
their view, their product should not only work accurately but it must look beautiful when
placed in the house or in the shop. Customers evaluate their products as a best quality and
durable product. The company has efficient after sales services and their products are also
a resale value if these is used in an efficient manner.

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Super Asia Private Limited

Positioning strategy

Arranging for a product to occupy a clear, distinctive and desirable place relative to the
competing products in the minds of the target consumers. Positioning is a perceptual
location. It's where your product or service fits into the marketplace. Effective
positioning puts you first in line in the minds of potential customers. Positioning is a
powerful tool that allows you to create an image. And image is the outward
representation of being who you want to be, doing what you want to do, and having what
you want to have. Positioning yourself can lead to personal fulfillment. Being positioned
by someone else restricts your choices and limits your opportunities. That's why it's so
important for Super Asia to transform their passion into a market position. If the
company doesn’t define its product or service, a competitor will do it for you. So the
company’s position in the market place evolves from the defining characteristics of their
product. The primary elements of positioning for Super Asia are:

Pricing: The prices of the company are somewhat high due to which the people are
converting to buy the competitors products. It is necessary for getting the positioning in
the minds of the consumers to set the lower prices of the products than competitor’s
products.

Quality: Quality of the products matters a lot. If your product is satisfying the consumer
quality wise then it is possible to get the higher sales. Some of the Super Asia’s products
are quality wise very well due to which they earn a lot of the revenue for the company.
The quality of Washing Machines of Super Asia is very satisfying to the customers due to
which this SBU get very large revenue for the company.

Service: They provide customer services due to which the consumers of home appliances
purchase their products. The company provide after sale services which is a key factor of
the large sales of Super Asia.

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Super Asia Private Limited

Distribution: The products of the company are available all over the country because it is
important that the products should be available to all the consumers. There are more than
1500 dealers of the company all over the country providing the products of Super Asia’s
products to the consumers.

Packaging: The beautiful packaging of the products attracts the consumers to buy the
products. Here the company is also strong because their packaging is very well.

Intended Points of Parity:


Most simply, a point of parity is a point of difference that a competitor has over the
company that it need to counteract. In many cases, Super Asia won’t even be able to
compete in the market unless it can nullify this advantage that your competitor has. It
makes just good efforts to increase its strengths and opportunities. With the reference of
all competitors the same attributes provide in the all competitors products are given
below:

• Variety in the products under the brand


• Need Satisfaction

Intended Points of Difference:


Points of difference are the attributes or benefit that consumer strongly associate with
brand, positively evaluate and believe that they could not find to the same extent with a
competitive brand. Super Asia wants to establish its following point of difference:

• Good quality
• Economical
• Style
• Colour Combination

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Super Asia Private Limited

Product Strategy

Product strategy begins with a strategic vision that states where a company wants to go,
how it will get there, and why it will be successful. It is like a roadmap, and like a
roadmap it’s useful only when you know where you are and where you want to go. All
the products of Super Asia exhibit their barnd names. The product is physical product or
service offered to the consumers. In the case of physical product, it also refers to any
services or conveniences that are part of the offering. Product decisions include the
aspects, such as function, appearances, packaging, service and warranty etc.

All the products of Super Asia are the physical products, the company does not deal any
service, but provide the after sales service repair services and home delivery services etc.
the products decisions include the following factors:
• Variety
• Quality
• Design
• Features
• Brand Name
• Packaging
• Services

And Super Asia have included all these factors in their products, such as there is a lot of
variety in every product of the company, some of the products are quality wise very
good, design and packaging of the products are very attractive and have different feature.
The brand name of Super Asia is known to almost every person in the country and the
company also provide after sale services, free repair services and home delivery services.

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Super Asia Private Limited

Pricing Strategy

Pricing in the Super Asia for fan is done by the fan manufacturing unit. The quality
control officers and the persons in the manufacturing unit conduct a meeting with the
board of directors to set the prices of the fans and also for the raw material purchased. In
setting price, Super Asia has following things kept in mind:

• List price
• Discount price
• Allowances
• Payment period
• Credit terms

Super Asia provides all the list prices of products to its dealers and asks them to provide
the discounts to the customers. The company provides different types of allowances like
prizes and lucky draws but these are not frequent. The company also deals with the
dealers on credit basis. Super Asia keeps the price of the products relative to its
competitors in order to sustain the market but didn’t compromise in the cost. In order to
reduce the price, the company first checks the quality status. If there is a possibility of
good quality in the low price then it reduce the price. Home appliances industry also has
a significant impact of the price of the company’s product. The costs of the raw material
also have the significant effect on the prices of the product. The costing methods used to
set the price of the products in the company are:
• Standard Costing
• Process costing

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Super Asia Private Limited

Distribution strategy

Super Asia Company has a very strong relationship with it dealers, and distributors.
There is a dealer convention every year launched in the company so that the dealers and
distributors from all over the Pakistan interact with each other and also from the
company. Moreover, company remains in contact with dealer via phone, postal and
internet resources. The company gives the feedback forms to all the dealers for their
product feedback and they considered their dealers and distributors as the good source of
receiving feedback from the customers. Super Asia also offers Ummrah packages for its
dealers. Company provides the discount to the dealers on its products. That is also a great
sign of good relationship between the company and the dealer. Basically the company has
two major channels at which the company sells the products are:

Distributor channel:

There are 7 distributors of Super Asia in the cities of Lahore, Faisalabad, Multan,
Hyderabad, Karachi, Rawalpindi, and Gujranwala. These distributors have warehouses,
where they supply the products to the sub dealers.

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Super Asia Private Limited

Dealer channel:

There are number of dealers in all over the country and company sells its product directly
to those dealers.

Super Asia uses its personal conveyance for the distribution of the products to place of
selling. And these points of selling are approachable to all the consumers. Like
Gujranwala there is proper electronics and home appliances market which is at the
assessable place. In other cities these points of selling are easily approachable to all the
customers. And the company provides a large inventory to all its dealers so that
consumers can not face the difficulty of un-availability.

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Super Asia Private Limited

Communication strategy

In Super Asia Company Private Limited there is a separate marketing department which
performs all the essential marketing functions that are suitable for the company. In the
marketing department there are 25-30 employees are working. There is a fixed budget for
the marketing activities in the company. From the total budget the marketing department
consumes the 2.5% to 3.5% of the budget. Super Asia Company spend on advertisement
for remain in the market relative to their competitors. The biggest selling points of the
company are Lahore, Karachi, Rawalpindi, Faisalabad, Peshawar etc, but this also
depends upon the per capita income of the people living in that city. The company
conveys their goodwill, past experiences and quality with their products when give an
advertisement of their products. There is no fixed number of advertisements both on print
and electronic media. When ever the company wants it launch the advertisement. This
decision is based upon the budget of the company. It mostly depends upon the season. If
there is the season of the fan then the advertisement runs but after the season they will
drag the advertisement and launch the new one for their next seasonal product.

The company also performs the international marketing by giving their advertisements in
the international channels like HBO, Star World, Filmax etc and the internationally
watched Pakistani channels like ARY Digital network, GEO TV network etc. The
promotional tools which are used by the company for the marketing are: Advertisement
including print, electronic and internet etc, brouchers, exhibition attendance and bill
Boards etc. moreover the loyal customers of the company also do publicity of Super Asia
products.

Brand spokesperson:

According to the marketing department of the company, it is strongly important that a


beautiful model displays their products in the advertisement because the people get very

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Super Asia Private Limited

satisfaction when they see that a popular model uses their products. So, it is an
encouraging tool for promoting their sales of their product.

Brand theme:

Depending on how one looks at the ambiguous ending of the play, Super Asia’s Brand's
iron strength of will is a blessing. If one interprets their ending statement, ‘‘conveys their
goodwill, past experiences and quality with our products!’’ to mean that their Brand
should have focused on prideful will and more on quality, then it is a quality product. If,
however, one takes the voice to mean that people are acknowledging their Brand's hard
work and welcoming them to the market at the hour of Brand's development stage, then it
will is a blessing for them. In any case, Brand's will is their personal driving force, and it
becomes the driving force of the play.

Events sponsored:

Following are the events sponsored by Super Asia brand:

• Dealers convention
• Any media campaign
• Famous dramas and current affair programs
• Cricket matches
• Talk shows and live shows

Brand association:

Brand Association is linking your brand to imagery that can further enhance your brand.
These could be in the form of expressions, attitudes, qualities, meanings, people or even
other brands. Super Asia’s Brands provide multiple sensory stimuli to enhance customer
recognition. For example, a Super Asia fans can be visually recognizable from its
packaging, durability, quality, outlook, etc. It can also be recognizable via sound, such as
hearing the name on a radio advertisement or talking with someone who mentions the
product. Customers who are frequent and enthusiastic purchasers of a particular brand of
Super Asia are likely to become Brand Loyal. Cultivating brand loyalty among customers

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Super Asia Private Limited

is the ultimate reward for their successful marketers since these customers are far less
likely to be enticed to switch to other brands compared to non-loyal customers.

Communication mix:

The first step in the marketing communication process is deciding what a component of
the Marketing Communication Mix Super Asia is going to utilize in communicating with
its target audience. The five traditional elements of the communication mix are:

• Advertising: every medium is used include newspapers and magazines, the


Yellow Pages, billboards, signs and posters. As well, advertising on buses,
benches, gas pumps and even public restrooms is in vogue today
• Direct Marketing: This component of the marketing communication process
includes direct mail, catalogs, coupons and inserts, telemarketing, online
marketing and television infomercials by Super Asia.
• Personal Selling: This is the most dreaded as well as the most expensive of all
methods in the marketing communication process. Super Asia did not use that
method more.
• Public Relations: This includes the general public, consumers, shareholders,
employees, partners, competitors and the government. Super Asia considered that
factor very critical for making its strategies.
• Sales Promotion: Sales promotion simply refers to purchase incentives that Super
Asia provides its customer with. These are the number of forms including offering
free goods or services, coupons and vouchers, gifts and prizes, discounts, samples,
financial incentives, charitable promotions like the hospital free service and any
other value-add over and above their standard product or services.

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Super Asia Private Limited

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