Walton Hi-Tech Industries Ltd. is the one and onlymanufacturer of multi-stagedRefrigerator, Freezer, Air Conditioner, Television andMotorcycle and is treated as one of the sophisticatedmanufacturing plant in Bangladesh and South Asia.Now Walton is going to emerge as an AC producer.
Marketing objectiveBe a market leader in Air conditioner marketin Bangladesh within Five years.To build profitable customer relationship byproducing environmentally better ACand getting them to market faster at lower cost.
Financial objectiveTo achieve break even at the first yearTo achieve 25% sales growth in subsequentyears and to achieve at least 30% mark upCapture 50% of local market share andcontribute billion taka profit in companybalance sheet from this business unit
Bargainingpower ofsuppliers●No backward linkage isdeveloped locally● Raw materials are mostlyimported●Depended on foreigntechnological supportLow influence over Suppliers
Bargainingpower ofBuyersDistributed through• Own outlet•Dealers and agents• Local electronics retailers’showroomFinal customers have lots ofoption as reputed brands areoffering high tech productsMedium influence overbuyers
Threatof entry•Need high technologicalsupport and expertise to setindustry•High capital requirement andfixed cost•High sunk costLow threat of new entry in thisindustry from local market
ThreatofsubstituteSubstitute product of AC may becooling fan , ventilator fan butthose can not serve as required.So no close substitution for AC isavailableVery low threat of substituteproduct
Intensityamongcompetitors•Market is very much saturatedwith renowned brands•World class brands arecompeting with cutting edgetechnology•Rapid innovation anddiversification by competitorsCompetition is very acute inmarket
GeographicalIncome andoccupation•Metropolitan city•Medium and zillatowns• suburbs & smalltowns.• villages•High income corporatecustomers•Middle income and SME•Lower middle income•Lower incomeMarket segments
Target marketHigherclasscustomersEconomic classcustomersCustomers having higher incomemostly corporate and businesscustomers and household customersliving in metropolitan cities havingincome of above 50,000 tk.• market size: about 65-%70% users arelocated in this segments• Market growth: market is growingabout 40%-50% each year•Attractiveness: this customers arewilling to pay premium price forenvironmental friendly and innovativeproduct more over it’s market growth ismoderate . Those data make theSegmented marketing
Higher classcustomersEconomicclasscustomersHouse hold customers having middleincome, living in zilla towns, suburb orsmall town and villages: small andmedium enterprises•Market size: comprises 30%-40%ofmarket share•Growth rate: 80%-120% growth rate.•Attractiveness: this customers’ income isgrowing and they are demanding ACmore and more. So this customers can bereached by already established brand anddistribution channel . Those situationsmakes this segment Lucrative.Target marketConcentrated orniche marketing
Positioning strategySophisticated ACOffering an environmentfriendly AC with sophisticatedtech innovation like•Eco- navigation and HD filter• good sleep and anti bacteriacoating tech.• turbo cooling and anti-humidification tech.Economic ACOffering a low cost, energyefficient user friendly ACwith• durability and reliability•Low watt•Triple weather protectedtech• comfort air flow andefficient tech.More For The Same Same For The Less
Pricing strategySophisticated ACAdopting More For TheSame strategyPrice range may be 90,000 to120,000 tk.Economic ACAdopting Same For TheLess strategyPrice range may be 45,000to 50,000 tk.
Distribution channelOwn outletDealer andagentsLocal electronicssuppliersE- commerce