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Walton clasic

  1. 1. PROJECT REPORT OnMarketing Strategy of “WALTON” Ltd. Prepared for: Md. Nazrul Islam Sr. Lecturer Dept. of Business Administration Prime University Mirpur-1, Dhaka-1216. Submitted to: Saiful Islam ID No: 121020102032 Program: M.B.A (Major in Marketing ) Batch No: 29th (36cr.) Dept. of Business Administration Date of Submission: February15, 2013 Prime University Mirpur-1, Dhaka-1216 1
  2. 2. Letter of TransmittalFebruary15, 2013To,Md. Nazrul IslamSr. LecturerDept. of Business AdministrationPrime UniversitySubject: Submission of Project Paper.Dear Sir,Here is my Project paper you have assigned me as a partial fulfillment of my MBA degree. It is anobligatory requirement of MBA student to be attached with an organization for three months is orderto gain practical knowledge about marketing and other issue, which is referred to as the project study.A lot of information collected from Walton Company Ltd. And so I have prepared a project report on“Overall Marketing Strategy of WALTON” Ltd.In this Project paper, I have tried to give my best effort. Besides this there may be have short comings.There fore, I will be grateful if you kindly accept my report and oblige thereby.Thanking you.Yours truthfully,Saiful IslamID No: 121020102032Program: MBA (Major in Marketing )Batch No: 29th (36 Cr.)Dept. of Business Administration,Prime University 2
  3. 3. Student’s DeclarationI, Saiful Islam, ID No: 121020102032, Batch: 29th, Program: MBA, Major inMarketing, Department of Business Administration, Prime University do herebydeclare that the Project Report entitled “Marketing Strategy of Walton Ltd.” is anoriginal work done by me for the partial fulfillment of the Master of BusinessAdministration.I also affirm that it has not been submitted by me before for any other degree.----------------------------------Saiful IslamID No: 121020102032Program: M.B.A (Major in Marketing )Batch No: 29th (36cr.)Dept. of Business Administration,Prime University 3
  4. 4. Supervisor’s CertificateThe Project paper entitled “Marketing Strategy of Walton Ltd.” prepared by SaifulIslam, a student of department of business administration, Prime University, ID No:121020102032, Batch No: 29th, MBA program (Major in Marketing), under mysupervision and guidance.I wish him every success in life.------------------- -Md. Nazrul IslamSr. LecturerDept. of Business AdministrationPrime University 4
  5. 5. AcknowledgementPreparing such a project paper has been a thrilling and learning experience for anproject like me. Project report is an important requirement for the completion of MBADegree. This project helps to introduce an organization‟s culture and its environment.Apart from it also enrich our real life working experience.First of all I express gratefulness to almighty ALLAH for the successfully completionof my internship and preparation of this report, without whose will and help nothingwould be possible in this world. I am indebted to all of them. It would be unthinkable toprepare such a report and present it in a lucid manner without the help of my supervisorMd.Mizanur Rahman. I would like to extend my gratitude to Md. Amdadul HagueSarker, for his kind advice and suggestions. I was also greatly assisted by Shamim-Al-Mamun, Assistant Director (marketing) and Sumon Chandra Basak, Officer,Marketing of the company. I would like to give my heartiest thanks especially toAlamin Hossain, Marketing Executive, for providing me the valuable information forthis report.At last I would like to convey my best regards to all the employers of R.B. Group andits sister concern WALTON Hi-tech‟s who helped me directly and indirectly during myinternship period. 5
  6. 6. Executive SummaryThe report on “WALTON: brand performance towards delivered customer satisfactionand loyalty, was based on the course materials that I have learnt in WALTON Hi-TeachIndustries Limited a sister concern of R.B. Group I have gathered what I believed to bethe most complete information from the text and reference books. Marketingdepartment and management of WALTON Company have helped me extensively toprepare this report named “The overall Marketing Strategy of WALTON”.WALTON HIL (Walton Hi tech Industries Ltd.) is the pioneer of Refrigerator, Freezer,and Motorcycle manufacturing technology in Bangladesh. It is also the manufacturer ofEnergy Saving Lamp. R.B. Group (Mother Company) is the country‟s top businessGroup in electrical and electronics goods using the brand name WALTON with someother sector like Textiles, Dairy etc. The company has been running its business with agreat reputation since 1977. Establishment of Walton HIL to manufacture Refrigeratorand Freezer, Energy Saving Lamp and Motorcycle etc. In the country is a milestone inthe path of success and reputation of the brand WALTON.Introduction of part-1deal with the introduction of the report. The main purpose was togive the idea about how the data of this was collected and how the report was prepared.I tried to collect all the needed information in limited time.Company presentation of part 2 has dealt the basic information of the companyWALTON: The main purpose of this was to give the general information of theorganization to understand the business activities. Part 3 and 4 deal with the report topicdiscussion about the marketing activities analysis. The main purpose is to emphasize onthe brand performance of the organization to find out the loyalty and satisfaction ofcustomers perceived value for WALTON product. I hope that the calculation andrecommendation will get a clear picture about the business activities of WALTON.Conclusion of part 5 deals with the concluding statement of the report. 6
  8. 8. CHAPTER – 11.1BACKGROUND OF THE REPORTThis is the report on internship program of MBA supervised by Md.Nazrul Islam Sr.Lecturer, Department of Business Administration, Prime University. The project reportwas placed in WALTON Hi Tech Industries Limited; for the three month internship tohave a practical Snatch over the Marketing activities of this organization. The topic ofthe report is proposed “The Overall Marketing Strategy of Walton”. Basicallyinternship is a part of MBA program which is designed to reduce the gap between thetheoretical knowledge and practical knowledge. I am very glad for getting thisopportunity to accomplish my practical orientation at WALTON Hi-Tech IndustriesLimited a sister concern of R.B. Group, Head office: Jibon Bima Bhaban, (Level-3),10,Dilkusha C/A, Dhaka-1000; From September 14,2011 to December 14,2011.1.2 OBJECTIVE OF THE REPORTThe specific objective of the study is as follows1. To understand the marketing function of the company.2. To find out the efficiency and effectiveness of existing Marketing system.3. To analyze the competitive market share of different products of Walton‟s.4. To identify the marketing problems faced by Walton Hi-Tech Industries.5. To evaluate the present performance of WALTON brand in comparison with other major competitors. 8
  9. 9. 1.3 METHODOLOGYAn information plan has been structured to collect the relevant data consistent with thepreparation of the report to conduct the study. For that reason Primary and secondarydata were reviewed thoroughly in an organized manner. This study is mainly onsecondary data collected from Head office, Showrooms, and Factory open market. Alsohave a market survey on questionnaire basis on customers, showroom managers andcorporate level as a primary source of data. Newspapers and other printed materialswere also used for collecting relevant data. 1.4 LIMITATIONS OF THE STUDYSeveral limitations remain regarding the coverage and comparability of data. 1. Data collection procedure was not so easy within limited time. 2. All users were not co-operating with me. 3. In case of data collection from competitors, every place was not accessible. 4. In certain critical areas, reliable data are extremely scarce. 5. All showroom managers were not co-operative in providing data. 6. Some data collected from one source contradicted with other data and actual data findings raised confusion. As a result, actual situation was difficult to assess. 9
  10. 10. CHAPTER-2 (ABOUT WALTON) 2.1 HISTORICAL BACKGROUND OF “WALTON”Walton HIL (Walton Hi-Tech Industries Ltd.) is the pioneer of refrigerator, freezer, andmotorcycle manufacturing technology in Bangladesh. It is also the manufacturing ofEnergy saving Lamp. R.B. Group (Mother Company) is the country‟s top businessGroup in electrical and electronics, Motorcycle, Electricity generating equipments andother household electrical & electronics goods using the brand name WALTON withsome other sectors like Textiles, Dairy etc. The company has been running its businesswith a great reputation since 1977. Establishment of Walton HIL to manufactureRefrigerator & Freezer, Lamp and Motorcycle etc. In the country is a milestone in thepath of success and reputation of the brand WALTON. Walton HIL has introduced first advanced research and manufacture technologies and equipments for customized commercial and household Refrigerator and freezer, Motorcycle and Energy Saving Lamp etc, In Bangladesh. The company desires to provide the latest technology based products with innovative design, excellent quality and many different models & capacities. In this concern, management of Walton HIL ensures their commitments for quality at any cost. WALTON brand main products are different types of Television (CRT, LCD, Plasma etc), HD, DVD & DVD Player, Motorcycle, Refrigerator & Freezer, Microwave Oven, Steam Oven, Domestic and Industrial Generator, Washing Machine, Wrist- Watch, Manganese & Alkaline Battery, Energy saving Lamp, Power tiller, Air- conditioner and various types of necessary and useful home appliances. Walton HIL is furnished with strong Research & Developed (R&D) Division comprising of a team of dedicated skilled engineers & technical personnel. It is fully equipped industrial set up with annual production target of 0.9 million Refrigerator, 0.138 million Motorcycles & 5 million Energy Saving Lamps. The Industry has its own Mold & Die making section where high precision molds are produced with the help of state of the art CNC, Wire-Cut, EDM Machines. Walton HIL always emphasizes on supreme priority in achieving customer satisfaction. The company always ensures product quality and renders the innovative latest technologies in its products. It has a complete experienced professional engineering team combined with both home and abroad to serve the valued customers. 10
  11. 11. 2.2 WALTON AT A GLANCEManagement Office : WALTON Hi-Tech Industries Ltd. 10, Dilkusha C/A, Jibon Bima Bhaban, (3rd Floor), Dhaka-1000, Bangladesh. E-mail: info@walton.comBusiness Operation started inBangladesh : 1978No. of Employees when Started : Management-5 & Marketing-10Present No. of Business : 120Present No. of employees : about 2000Product range : Air conditioner, Refrigerator, Deep Freezer, DVD player, Microwave oven Color Television, Washing machine, Motor cycle, Generators (Portable and Industrial)Business Collaboration with : WALTON Peoples Republic of Korea, Peoples Republic of China.Business system : Cash and Hire purchase System 11
  12. 12. 2.3 MISSION WALTON will become the acknowledged leader in electronic home appliance industry to provide quality products into reasonable price. Leadership will be achieved by establishing the industry standards of excellence for quality of service and by maintaining the broad loyalty relative to our service commitment. Achievement of Mission requires: 1. Absolute dedication to understanding and fulfilling our customers need with the appropriate mix of service, reliability, product and price for each customer. 2. A countrywide showroom and service network for customer providing with reputed brands, products with excellent useful characteristics with different aspects for customer. 3. Allocation of resources consistent with the recognition that we are in number one position in countrywide business. 4. An environment that rewards achievement, enthusiasm and team spirit and which offers each person in WALTON with superior opportunities for personal development and growth. 5. A professional organization able to maintain initiative and local decision making while working together within a centrally managed network. The evaluation of our business in providing new products, new services, markets or products will be completely driven by our single-minded commitment to anticipating and meeting changing needs of customer. 2.4 GOAL To provide best quality products for the valued customers by introducing latest technology driven products and expanding service network. 12
  13. 13. 2.5 OBJECTIVE1. To create and continuous upgrading the loyalty of the clients and theirrecommendation of our people through: quality products and good advice,dependable service and delivery and efficient marketing effort.2. To establish a strong and distinguished corporate portfolio and image byretaining the tradition of the world‟s greatest product line up.3. To continuous upgrading and monitoring and evaluating of total qualitymanagement (TQM) approach to our all marketing and distribution system bymaking dynamic, honest and industrious showroom and dealer personal, anintegrated part of the family.4. To reach the pinnacle of the market in Brand Category combined withcustomer segmentation and strength our position there.5. Develop an integrated human resource policy and implement its consistentuse through the organizational training, authority commensurate withresponsibility and recognition for performance. 6. To ensure that every number of the management team will be a person oftop capability. 7. Introduce methods to plane for the provision of required caliber andquantify if staff.8. Assist the organization in becoming more customers aware and responsivein changing needs of external marketing environment.9. Define and encourage implement of an improved communications culturethroughout the organization.10. Faster a leadership style throughout the organization which encouragesthe respect for individuals, teamwork and close identification with customers. 13
  14. 14. Long-range objectiveThe long-term objective is to gain leadership globally in the home applianceindustry.Short term objectiveTheir short-range objective is profit maximization through customersatisfaction by providing quality product and increase market share inelectronics market.2.6 STRATEGIC INTENTTo be the global leader in the appliance industry.Corporate strategicTo earn more than average profit by exceeding customer expectation.Business strategyAdding product features to different markets and thus gain substantial marketshare.Operational strategyTo promote corporate image, to established good production facilities and tosetup a good distribution channel. 14
  15. 15. 2.7 ORGANIZATIONAL STRUCTURE OF WALTON Managing DirectorAdmin Account Credit Director DirectorDept. Dept. Dept. Marketing technical Inventory Logistic Service Show room Dept. Dept. Dept.Authority controls all over the company along with the supervision of threedirectors (finance, Marketing and Technical). The segmented departments aredoing activities under the supervision of both head of department and theauthority. The summaries of department activities are discussed bellow: 15
  16. 16. Administration Department The major activities of administration department are as follows:  Staff recruitment, staffing, staff management (transfer, promotion) and staff controlling.  Administrative activities regulating, setting up workings of various subordinate dept. and monitoring employees.  Some additional activities benefiting the company. Accounts Department This department basically does the following activities: Preparing monthly account‟s report Preparing and financing report LC import related banking activities Central accounting process.Credit DepartmentThe following activities are done be the department: Hire purchase activities. Monitoring and preparing credit functions of field officers Checking out and preparing arrear collection report of showroom managers Observing any type of discrepancy gap and performance evaluation of field officers. Supervising branch level data (Hire Agreement) through area managers. 16
  17. 17. Marketing DepartmentThis department does the following activities mainly: Market survey Sales promotional activities Advertisement Market research Competitor Additional activities like arrangement of foreign trip or incentive bonus for employees etc.Audit DepartmentThe department is doing the following activities: Data entry of (Accounts) both weekly and monthly report.Data entry and recording file of cash and hire sales and collection From hire sales.Inventory DepartmentThe following activities are done by the department: Management of inventory. Recording total amount of purchase of products weekly and monthly. Preparing record of total sales unit of products weekly and monthly.Logistic Department The activities of the department are no less significant which are as follows: Any type of product distribution. Product support and logistic support. Controlling and management of store. 17
  18. 18. Service departmentThe department does the following things: Management of after sales service Product services done by expertise like service engineer & B.S.C engineer. Only own product servicing is done. After sale service is done at free of cost for one yearShowroom ActivitiesShowroom is the grass root level of WALTON Hi-Tech Industries Ltd andserving the customers directly.There are more than 1300 Showroom all over the country. Method of selling is inboth cash and hire sales. Various forms are used in selling which are as follows:Forms used for Cash Sales F304 (Final Receipt General), LPR (Without VAT) F364(Cash received with VAT)Forms used for Hire Sale Hirer Proposal Form Guarantor‟s Form Agreement Form (F315) Salesman‟s Certificate (F317) Hirer‟s Down payment Receipt(F365) Installment /Collection Receipt (F314 18
  19. 19. 2.8 MAJOR CONSIDERATIONS IN HIRE SALES  Hirer‟s full name, parents name address, occupation no. of years involved in the job.  Students or blow 18 years aged can‟t be a hirer.  Two guarantor who are „not related‟ to Hirer and also have enough financial strength to compensate later if hirer defaults.  Hirer will have to make four signatures in the agreement form and all signatures in the agreement form and all signatures should at the same language at the same manner.  At first, Down Payment + 2 Installments will be taken including VAT if any.  For police, BDR, Army ID no. is compulsory.  Hirer can not hire more than one product at a time.  Service charge of collecting installment will within 10kilo distance Tk.20 and for every next 1 kilo Tk.3.  There should not be any amendment using fluid or mutilation of the agreement form.  The hirer will pay installment within 7th day of each month. Otherwise will be fined @ TK. 25 form 8 to 20th of that month.Other Issues related to Hire Sales  Revert: If hirer fails to pay installment, then the product is taken return to the showroom back.  Reverse: The reverted product returned to the previous hirer if he pays arrear or Sale to another person.  Sale cancel: If any hirer surrenders the product who is not capable of paying installment, the sale is then cancelled. In this case, change of TK 1000 for use of each 1 month will be deducted from hire value and the rest amount will be refunded.  Delinquent list: The installments due for collection in the current month. 19
  20. 20. 2.9 FORMS USED FOR REPORTING  Weekly Cash Sale Report (F320): Cash receipt & Disbursement of Salary. Bulk Sales Commission & Incentive bonus are described here. The balance goes to remittance sheet.  Weekly Hire Sale Report (F321): It includes collecting Bonus (if 100% collection – 4% bonus otherwise not), Installment collection data from collection sheet (F322), Down Payment with without VAT. Stock of Hire agreement.  Retirement Sheet (F312): Balance from F320 & F321, method of remittance transfer (DD, PO etc) in details to the Head Office.  Monthly Reporting: Summary of Month‟s cash & hire sales and other relevant data. 2.10 DISCOUNT METHOD  If hirer makes full payments within two months, then he will get the product at cash price.  If hirer makes full payment at 3rd month, he will have to pay cash price + a lump sum amount (of course the sum will be less than hire price).  If hirer makes payment at 4th to 10th month, he will get discount at a chronological down percentage manner.2.11 PRODUCT FACILITIESProduct Name Guaranty / WarrantyRefrigerator Six months Guaranty, Five Years WarrantyMotor Cycle Two Years WarrantyVoltage Stabilizer Two Yeas GuarantyGenerator Engine 2 Years WarrantyDVD One Year WarrantyMicro Wave Oven One Year WarrantyTV Picture tube 2 Years Warranty, Sales service 5 Years Warranty.LCD One Year Warranty 20
  21. 21. 2.12 DESCRIPTION OF THE TASKS PERFORMED BY EACH DIVISION a) Home appliance market is the world‟s largest consumer goods market and WALTON Hi-Tech Industries Ltd. is one of the major organizations in home appliance in Bangladesh most of the companies are moving globally to sound growth rate. WATON is not exception from this criterion. The brand WALTON one of the major international brands possessed by WALTON Hi-Tech Industries Ltd. is assisting to get moving globally. b) The basic intent of the report is to present the performance WALTON Refrigerators and Freezers of WALTON Hi-Tech Industries Ltd. and to enhance the value of brand and product in a very complex competitive environment. The report discusses the competitive market analysis of WALTON Refrigerators and freezers. Consumer perception of a number of brand alternative, nature of Distribution channel and their activities, advertising and promotional activities, market share and growth. The outcomes of the analysis are shown in brief. c) Rivalry is likely to increase its WALTON‟S strategic move to global market has been successful. d) The life cycle stages of the products of WALTON are mostly in nature stage. e) All the big companies in the market are acquiring small companies and as the product range is quite large they enjoy Economics of scale. f) Customers are very brand loyal. g) Some rivals have good distribution channels. h) As buyers preferences are changing it is inducing the industry to change. i) An intense competition is going on the market of home appliance between the brand and non-brand product. j) The increasing demand for non-brand product is due to lower price rather than other k) Customers are not very well-known about WALTON product like Konka. 21
  22. 22. l) Advertisement, another key issue of sales growth through which Konka. Nova and some other non-brand are doing very well in sales. m) Konka and Walton are most demanding in the gray market because of lower price, nice getup and for guarantor period. n) The demand of Microwave oven is increasing day by day which is a positive sign for WALTON o) Rice is the first choice of the customer for purchasing Microwave oven in the gray market but brand loyalty and quality are not ignorable.2.13 MARKETING STRATEGY AND MARKETING MIXMarketing MixThis is a traditional approach to marketing planning which is based on the four Ps:Product policy:Product is, in fact, the range of the products(Goods or services) that the organization offers to the marketplace. Decisions have to bemade about quantities, timing, product variations, associated services, style and eventhe packaging and branding.Price policyPrice is a vitally important decision area because although it is a promotional tool inmany respects, it is the main source of income to the organization. If prices are loweredfor promotional purpose, the case flow within the company, and its long termprofitability, could be seriously affected. As with products, there is normally a range oprices. These can very according to the quantities bought, the importance of-thecustomer, and the market segment. Pricing can be long-termand short-term. Pricing can involve discounts, special offers, allowances, credit, and„trade-ins‟. It is vitally important to get price decisions right.Place policy 22
  23. 23. A business when planning its marketing will ask a number of questions relating to placei.e. „through which outlets should we sell the product? How do we physically move theproduct to these chosen outlets? How far afield do we wish to operate (locally,nationally, or internationally)? Place, or distribution policy, is a massive, complexdecision area. The Marketing mix gives a plan by which to operate to influence andsatisfy the buyer/customers. The four Ps approach is not perfect, and is certainly notintended to cover all the marketing activities, e.g. marketing research, research, ofcourse, the provider of information for the decision in all of the 4p area.2.14 WALTON MARKETING MIXMarketing Mix Product Mix Distribution Mix Communication Incentive Mix  product  Physical Mix  Money line Range Distribution  Advertising off(discount)Design Concept  Supplier  Sales  Competitors  Stock Catalogue  Sales  Handling  Field Sales promotion  Storage forces  Transportation  public  Warehousing Relation   Distribution  Direct  Color channel Marketing Appeal  Direct  Telephone  Style Distribution sales Intention  Trading Block force(Brand  Package Image ) proposal  Brand  Merchandisi Name ng  price Structure  Service Function  Warranty Offer2.15 BUILDING A STRONG BRAND (WALTON) 23
  24. 24. 1. Ensure identification of the brand with customers and an association of the brand in customer‟s minds with a specific product class or customers need.2. Firmly established the totality of brand meaning in the mind of customers by strategically liking a host of tangible and intangible brand association with certain properties3. Elicit the proper customer responses to this brand identification and brand meaning.4. Convert brand response to create an intense, active loyalty relationship between customers and the brand (WALTON). 24
  25. 25. CHAPTER-3 (MARKETING ACTIVITY ANALYSIS)3.1 PRODUCT ANALYSISA product may be anything that can be offered to a market for attention, acquisition,use, or consumption that might satisfy a want or need. It includes physical objects,services, persons, places, organizations, and ideas.Product ClassificationsMarketers divide products and services into two broad classes based on the types ofconsumers that use them-consumer products and industrial products. a. Consumer Products Marketer products are those that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort. These products differ in the ways consumers buy them and how they are marketed. b. Industrial Product Products are those bought by individual and organizations for further processing of for use in conducting a business.According the previous definitions, Refrigerator and Freezers should be categorized asa consumer product. As a shopping product, they are less frequently purchasedconsumer products that customers compare carefully on suitability, quality, price, andstyle. They spend much time and effort in gathering information and makingcomparison. They buyers see homogeneous shopping products, such as majorappliances, as similar in quality but different enough on price to justify shoppingcomparisons.PRODUCT (Freezer & Refrigerator) CATEGORIES: 25
  26. 26. WALTON & MARCELFreezer and Refrigerators categories LitersFC-1D5 (Deep)Fc-2T5 (Deep)D-1FO 160LtW2D-1H5 185D-1H5 185W2D-A90 190WD-19A 191W2D-2X1 201W-125C 201W3D-2AO 210WFF-2A3 213W2D-2BO 220W3D-BDO 240W2D-2D4 244W2D-2GC 273Freezer and Refrigerators categories LitersM2D-B7C 273M2D-2DD 244M3D-B40 240M2D-B20 220M2A3-FF 213M3D-B10 210M-125C 201M2-A91 191M2D-19X 190Stanfam 185Smartfam 160MD-20E(D) 205Fresh cool 145Singtwo 170 26
  27. 27. 3.2 CONSUMER ANALYSISConsumers express themselves and communicate with each other through theconsumption of goods and services. Understanding how marketing manages itscustomers represents one half of the analysis. The other half needs to focus on the aimsof marketing in respect of its customers. Overriding the commercial aims (for example,increased usages, and profit and market share) is that of what marketers are marketingand consumers are consuming. The company that really understands how consumerswill respond to different product features, prices, and advertising appeals has a greatadvantage over its competitors. Consumer purchases are influenced strongly by cultural,social, personal and psychological characteristics. The marketer needs to know whatpeople are involved in thy buying decision and what role each person plays. Peoplemight play any of several roles (initiator, influencer, decider, buy, decider, buyer, anduser) in a buying decision.Knowing the main buying participants and the roles they play helps the marketer fine-tune the marketing program.The customer analysis for the WALTON‟s products has been done through a marketersurvey. And on the basis of that survey customer analysis has been made.Survey Type: Consumer SurveySample size: 120Income Group: Within TK.20000- Tk.40000 and above.Occupation: Service holder and Business personality.Social Class: Lower-middle and upper middle.Survey Area: Different Location of Dhaka City.Date of Survey: 11November, 2012 to 10February, 2013. 27
  28. 28. In this case we have gone to the Walton showrooms (Basundhara City, Mohammadpur,and Stadium market, Mirpur, Moghbazar, Shewrapara, Rokya Sarani, and Mirpur) forcollecting information of consumers. We have collection information from 120consumers. We have tried our best to cover all levels of customers.Table: Opinion about WALTON Refrigerators and Freezers and features.Opinion Good Very Good Excellent No Idea BadPercentage 25% 28% 38% 7% 3% Opinion 3% Percentage Bad 7% 1 38% No Idea 28% Excellent 25% Very Good Good 0% 20% 40%Table: Competition about Walton and Others Brand 28
  29. 29. Walton Lg Sony Sharp Samsung Others 27% 25% 22% 17% 12% 4% Brand Name 30% Walton 25% Lg 20% Sony 15% Sharp 10% Samsung 5% Others 0% p Lg ng s ny n ar er to So su Sh al th m W O SaTable: 3.1 Present brand users of Microwave of different brand. 29
  30. 30. Brand Sharp Samsung LG Walton Miacko% 15 5 21 27 32Opinion about present china brand user of Refrigerators and Freezers ofdifferent brands:Brand Butterfly Sharp Walton Nova Konka Others% 19.50 12.37 25.63 15.75 16.35 10.40 Butterfly Sharp Walton Nova Konka OthersSpecific reason for choosing products of WALTON brands: 30
  31. 31. Reason Price Brand image Features Warranty GetupPercentage 32 27 17 18 6 Price Brand image Features Warranty Getup Reason for choosing BrandOpinion about the “Brand Image” position:Brand name Percentage PositionLG 24 1stWalton 21 2ndSharp 18 3rdSony 15 4thTCL 14 5thSamsung 13 6thToshiba 12 7thKonka 6 8thOthers 4 9thOpinion about low price offer high qualityOpinion Agree Not sore Strongly 31
  32. 32. DisagreePercentage 15% 38% 47% Strongly Disagree Not sure Agree 0% 10% 20% 30% 40% 50%Opinion about WALTON Refrigetors and Freezers price present. Size 27,28,30(Liter)Price: 22700-24500-23900-26500Opinion About price Reasonable Affordable High Unreasonable Percentage 34 25 36 5 Opinion About Price Reasonable Affordable High Unreachable 0% 10% 20% 30% 40%3.3 PROMOTION ACTIVITY AND ADVERTSEMENT 32
  33. 33. Advertising is an evolving business function. It was traditionally used to announce theavailability of products in customer, brand building, positioning conveying the USP(Unique Selling Proposition) and so on. In recent years, advertising has undergone anumber of significant changes in both strategy and exception. Most of the consumerproduct companies have come to the stage where they can‟t do business withoutadvertising. It used to be said be that advertising was the smartest form ofcommunicating without telling the truth. With the cost of media skyrocketing, and theattention span of the customers shrinking with ad clutter, We cannot blame theadvertises for not giving the entire truth. Advertising is a communication tool In orderto be successful. Once we develop goals and objectives in keeping with thecommunication core of adverting. Once we have clearly defined the communicationgoals, we must then adders the role of advertising within the overall marketing strategyof the firm.The advertising campaignThe campaign may be carried out an advertising agency for a large organization. Theimportant starting point is to have clear objectives as to what is to be achieved. Thestages in the advertising campaign set out are in a recommended order.Identify right timingTiming of the advertising is crucial. Too before the event, and the customers forget; toolate and they have bought something else. Seasonal markets need careful timing. Amedia expenditure plan should be drawn, detailing at what stage of the campaign themoney should be spent, and on which media need to be informed first so that stockswill be in the shops when consumer get to hear about it.Promotion to the consumer: Advertising MediaPromotional communication methods consist of advertising sponsorship, branding.Packaging, public relations. Sales promotion and merchandising. They must not offerconflicting messages. Advertising media must be chosen for its ability to reach the rightmarket segments. Perhaps the most significant role that advertising plays is itsadvertising is its contribution to the creation of brand preference. If the necessaryingredient for advertising is a brand name, then the key to continued successfuladvertising is a good product. It goes without saying that no amount of advertising willpersuade consumers to repeatedly buy a bad product. The key to successful advertisingis to view a product as a bundle of consumer benefits rather than as a physicalcommodity. Advertising must communicate messages that address major benefits of aproduct and communicate realistic benefits of consumers. Examples of primary productconsideration in establishing advertising goals are: 33
  34. 34. 1) Brand position within a product category: products priced at the high end of a category will require different advertising strategies just as advertising for new products will differ from their established competitors. 2) Product purchase cycle: Obviously package goods bought on a biweekly cycle such as groceries will use different advertising approaches than durable goods, such as appliances, which are purchased every 5 to 10 years. 3) Product awareness and market position: Product with high market saturation has a much different marketing strategy than others, and it is reflected in both its advertising budget and its creative approach. 4) Product seasonality: For seasonality, Product is marketed differently. 5) Short term advertising strategy: Is a particular campaign designed to gain initial consumer trial, encourage higher purchase levels from current customers, or based on the following.Identity the right mediaThe choice of media is large and rapidly expanding as more TV channels and the newtechnology of the Internet add to the choice. Selection is therefore critical and must bebased in the following: 1) Is the cover to be local, regional or national? 2) Does the overall cost rule out any medium? 3) How many people are reached and at what cost per person?] 4) Which social group does the medium reach? 5) How often the message is put over- hourly, daily, weekly etc? 6) Can the message be detailed / how long a life will it have? 7) What are the image / status / prestige of the medium? 8) How important are sound, movement, color, size? 9) Will the results be measurable e.g. replies to one advertisement?These are the key question to be asked when selecting suitable media the lists in theboxes in the diagram have been drawn up in categories in order to answer this question.3.4 ADVERTISING PATTERN OF WALTON HI-TEC INDUSTRIES LTD. 34
  35. 35. WALTON‟s advertising pattern is the following:  Electronic Media (Television)  Newspaper  Billboard  Purchase of pointElectronic Media: WALTON uses B.T.V., channel I, A.T.N Bangla, NTV andother Bangladeshi channels for their advertising purpose. Also maintaining aspecial program in Bangla Vision.Newspaper: Two Major News paper, Ittefaq and prothom-Alo are used for theiradvertising purpose.3.5 THE OBJECTIVE OF ADVERTISING OF WALTON MARKETING ISGIVEN BELOW: 1. To establish an immediate sale. 2. To bring prospect to closer to a sale. 3. To bring a long term franchise. 4. To bring consumption among users. 5. To initiate first move towards a sale. 6. To give sales force a supporting service. 7. To gain market support. 8. To deeper penetration. 9. To open distribution. 10. To develop image. 11. To import information. 12. To enter new market. 13. To create awareness. 14. To support retail trade. 15. To promote incentive marketing. 16. To counter price competition. 17. To overcome memory laps. 18. To defend present position. 19. To reinforce reputation monopoly. 20. To establish market lead. 35
  36. 36. 3.6 ADVERTISING AGANCY OF WALTON HI-TECH INDUSTRIESLTD.WALTON Hi-tech Industries Ltd. does their advertising activities through theNishu advertising agency for specially T.V. media.3.7 SALES PROMOTIONThe techniques of sales promotion are so diverse and widely used that they arepart of the promotional programs of virtually every company. Sales promotion isdirected to a number different target markets and comes in an array of formats.Despite its many forms, all sales promotion techniques have in common the goalof creating short term sales. The most frequently used forms of sales promotionare the following 1. Point-of- purchase advertising 2. Premiums 3. Specially advertising 4. Coupons 5. Sampling 6. Deals 7. Event marketing 8. Sweepstakes and contests 9. Cooperative advertising 10. Directories and Yellow pages 11. Trade incentives 36
  37. 37. 3.8 Walton’s SALES PROMOTIONAL OBJECTIVES.Sales promotional objectives of WALTONConsumer promotion Trade and industrial promotion 1. Matching comp 1. Extending distribution network. 2. Increasing amount of purchase. 2. Meeting competitive activity. 3. Combating own corporate 3. Stimulating showroom/ outlet‟s purchase and image cooperation 4. Including immediate purchase. 4. Overcoming seasonal fluctuation 5. Providing distribution sales 5. Introducing new product push 6. Opening new accounts. 6. Stimulating demand push 7. Increasing average value of order 7. Retained established customers. 8. Promoting showroom target 8. Reaching specific markets. 9.Enlisting support from publicity 9. Extending effective distribution. 10.Encouraging advance stock 10. Overcoming seasonal patterns. holding 11. Developing brand awareness. 11. Gaining merchandising support 12. Controlling selling effort 12. Purchase supporting products 13. Acquiring marketing 13. Educating for trade Intelligence. 14. Reclaiming lost or dormant business. 14. Including consumption of range. 15. Securing media news coverage. 15.Evaluting Media effectiveness 37
  38. 38. Channels distribution of WAL TON Products“Any sequence of institutions from the producer to the consumer including one orany number of middle men is called channel of distribution”-Mc Carthy.Producers normally use a number of marketing intermediates for taking theirproducts to users. Marketing intermediaries bear a variety of names such as: soleselling agents, stockiest, Wholesalers, franchised dealers retailers, authorizedrepresentatives, brokers/ commission agents and jobbers. All such intermediariesconstitute the distribution channel. The depots/ showrooms and other directoutlets of producers also from part of distribution channel.Manufacture Channel’s Distribution ConsumersRole and Important of distribution channelsDistribution channels play a pivoted role in the successful marketing of mostproducts especially consumer products.Channel perform a wide variety of functionsThe important of distribution channels can be understood clearly by analyzing thewide variety of function perform by them.  Channels provide distribution efficiency to manufactures.  Channels supply products in required assortments.  Channels provide salesmanship.  Channels help merchandise the products.  Channels look after physical distribution and financing functions.  Channels decisions have a vital bearing on decision on other areas of marketing.  Channels act as change agents and generate demand.  Channel levels.  Channel members.  Channel length. 38
  39. 39. WALTON‟s Channel of distributionCompany must decide on the best way to store, handle, and move their productsso that they are available to customers in the right assortments, at the time, and inthe right place. Logistic effectiveness will have a major impact on both customersatisfaction and company costs. a poor distribution system can destroy anotherwise good marketing effort. Butterfly Marketing Ltd. is maintaining thefollowing distribution channel under the direct supervision of logistic departmentthrough authority to maintain the product property and to teach the finalconsumers.Supply chain Import Warehouse Logistics Dept. Marketing Dept. Outlet Ultimate Customer Service center 39
  40. 40. Physical Distribution:Physical distribution looks after physical handling of goods, and assuresmaximum customer service. It airs at offering delivery of right goods at the righttime and places to customers. Physical distribution activities cover. Order processing handling of goods Packaging Warehousing transportation Inventory and Customer serviceAll middle men in distribution perform these functions and they assure putting theproduct with in an arms length of customer desire and demand.Opinion about showrooms decoration positive impact:Brand Sharp Samsung LG Walton Sony% 20 26 20 24 10 Brand 30% Sharp 20% Samsung 10% LG Walton 0% Sony 1 40
  41. 41. 3.9 PRICE ANALYSISThe price prevailing in the market at any given time and determined by the forcesof demand and supply is the market price. Market price is important because pricechanges send signals to producers which tells them whether they should producemore or less of their good or service. If the price of a product is raising this is asign that producers need to supply more.Producers will respond to this signal because, in general, higher rives lead tohigher rewards for producers (profit) and so they have an incentive to work harderand increase production. Filling prices, on the other hand, hand generally lead tofalling profits and this is the way that the market signals to producers that theyshould produce less.The influence of price on demand: The price of a good or service is obviouslyone of the main factors that influence how much we buy of it. The factors thatcause the level of demand to change are explained below. The general rule is: An increase in demand leads to arise in price. A decrease in demand leads to a fall in priceChange in income: Most people gain an income from working in the form ofwages and salaries. However, people can gain an income from a number of othersources. They might be from employment, savings, retirement pension, statebenefits, property ownership, share ownership or business. It is clear that the levelof people‟s income the greater the level of demand. It also follows from this thathigher the level of demand the higher the market price. Obviously this logic canalso be applied the other way around- lower incomes lead to lower demand andlower price.The price and availability of credit: The price of some goods and service thatpeople wish to buy can often be so high that they find it difficult to afford themout of one month‟s income. 41
  42. 42. The influence of price on supply: The price of a good or service is obviouslyone of the main factors that influence how much we buy of it. The general rule isthat; The higher the price of good or service the more businesses will want to produce The lower the price of a good or service the less business will want to produceThe factors that cause the level of supply to change and hence the market price ofgoods and services to alter, are explained bellow. An increase in supply leads to a fail in price A decrease in supply leads to a rise in priceChanges in the cost of production: A rise in business costs will often lead to afall in profit levels and so firms will lose some of their incentive to produce. It themajority of firms in the industry are affected in the same way then there will be afall in supply. Similarly a fall in business costs tends to increase profit levels andthey have an incentive to produce more. If most firms in the industry respond inthe same way then there will be an increase in supply.Factors to consider when setting pricesBefore setting price, the company must decide on its strategy for the product. Ifthe company has selected its target market and position carefully, then itsmarketing-mix strategy, including price, will be fairly straightforward. At thesame time, the company may seek additional objectives. The clearer a firm isabout its objectives, the easier it is to set price. Price is only one of the marketing-mix tools that a company uses to achieve it marketing objectives. 42
  43. 43. Price decisions must be coordination with product design, distribution, andpromotion decisions to from a consistent and effective marketing program.Pricing for WALTON products:In case of the product Refrigerators and Freezers, WALTON Hi-tech IndustriesLtd. has adopted the following price on the basis of following formula.Selling price = Landed cost (LC) + Administrative cost + Transportation cost +Warehousing cost + VAT + Profit margin. Price comparison of different brand for 226 Liter refrigerator :LG Sharp Konka Walton Sony29000 33500 25000 26500 28500 Price Difference 40000 Walton 30000 Sharp 20000 LG 10000 Konka 0 Sony 1 43
  44. 44. 3.10 MARKET ANALYSIS OF THE INDUSTRYTo ensure that our analysis is consistent, it is very important to define the„industry‟ we are dealing with. An „industry‟ is defined as a group oforganizations or business units producing close substitutes. For the convenienceof our analysis the industry can be defined in both wide and narrow.Major participants of Industry:The companies who are performing well and have maximum market share of theindustry are as follows.Global brand: 1. WALTON 2. Sharp 3. Whirlpool 4. LGNon brand 1. Ariston 2. Kelvinator 3. Super ariston 4. Konka 5. Nova 44
  45. 45. Table: Market Share Analysis of Industry for global brand: (Sales value)For the year 2012Company Name Market Share %LG 30.75Walton 25.75Sharp 24.25Sony 12.15Others 7.10 Market Share 40 30 LG 20 Walton 10 Sharp 0 Sony 1 Others Percentage 45
  46. 46. Chapter-4 (Findings and Recommendation)4.1 SWOT ANALYSIS OF WALTON REFRIGERATORS ANDFREEZERS Strength  Efficient management  Good distribution channel  Long experience in this industry and good learning curve.  Reputation as a global company environment friendly products  Wide distribution capability  Brand loyal customers  Brand image of WALTON  Easy access to capital investments  Economies of scale due to standardized product  Structured geographic network  Two sales category higher purchases system or cash Weakness  Weak marketing strategy.  Lack of strong marketing network rather than competitors.  Lower frequency in Advertisement in electronic media.  Lack of proper decoration of showrooms.  So high price than china base product. (Refrigerators and Freezers). 46
  47. 47. Opportunity  WALTON has very positive corporate image  Proper utilization of hire sales system can flourish the sales growth  New products developing thought.  Small and local competitors are decreasing  Changes in people‟s life style, enhancement of purchasing power and changes in social values.Threats  A shift in buyer needs and tastes away from the industry‟s product  Adverse demographic changes  As opportunities are increasing some Korean companies may enter the market as they already have similar products microwave oven. (Superaristion)  The frequency of advertisement is increasing by the competitors rather than WALTON  Day by day inter new product in Bangladesh which price is so low. (china product) 47
  48. 48. 4.2 RECOMMENDATION I recommend the following steps: 1) Price can be reduced to attract the customers mostly. 2) More advertising campaign should be taken to attract the customers. 3) Number of showrooms should be increased. 4) Credit facilities could give to the dealer in some cases. 5) Set up a control R & D department to make R & D activities more costeffective & fruitful. 7) Should have in house advertising agency. 8) After sales services facilities should be prompt &with care. 9) Strengthen channel of distribution. 10) Can diversify in other domestic products to gain economics of scale. 11) Becoming more aggressive to cover wide area. 12) Setting up a strong image. 13) Can improve promotional activities. (Consumer promotion, tradepromotion) 48
  49. 49. Implementation planManagers at all levels are involved in implementing a strategy. Of course toplevel managers should take the initiatives to carry out the help of middle level andlower level managers. Then the whole task should be divided into several parts.Procurement manager is needed to play a major role here. He should have thecapability to negotiate with the supplier in order to lower the input price. Theycan also setup a central R& D department to make R & D activities more costeffective and fruitful. The R & D team has also something to do inimplementation. The manager in charge of R & D should persuade hissubordinates to come up with innovative ideas and give operational efficiency tolower the price. The manager of marketing department will be responsible inimplementing the plan. He should explore creative ideas to attract the customers.The advertising and promotional activities should be exceptional to influence theconsumers to buy WALTON products.Contingency planThere is always uncertainty in this world. The strategies taken to accelerate acompany‟s growth may go in vain. Therefore the company should have somebackup strategy. Since the average income of Asian consumers is low, manypeople may be reluctant to buy WALTON‟s products. For this, WALTON canintroduce an economic version of its product line, which will be affordable for thelow-income consumers. Not only for Asia, can it produce this economic versionfor any low income-earning people all over the worldInternational market is unforeseeable; the government may not act in accordancewith the terms and conditions. In this case they can seek cooperation from thegovt. to put pressure on the host government so that they comply with theinternational norms, rules and regulations. Local people who have stronginfluence on the govt. should be convinced by parent company so they act infavor of them. All these strategies may not produce the desired result, soinsurance should always be there to cover up this loss before entering any newcountry. 49
  50. 50. CONCLUSION From the study of “Marketing Strategy of WALTON”, it can be concluded that strategy followed by WALTON Company Ltd. is comparatively good. Since consumer demands change instantly, the company should take the advice strategies and policies to grab the market. In this regard integrated marketing can be helpful. Rivalry is likely to increase; its WALTON‟S strategic move to global market has been successful. The life cycle stages of the products of WALTON are mostly in mature stage. All the big companies in the market are acquiring small companies and as the product range-is-quite large they enjoy Economies of Scale. Customers are very brand loyal some rivals have good distribution channels. As buyer‟s preferences are changing it is inducing the industry to change. An intense competition is going on in the market of home appliance between the brand and non-brand product. The increasing demand for non-brand product is due to lower price rather than others. Customers are not very well-known about WALTON product like due to the drawback of advertisement. Advertisement is one of the key issues of sales growth through which konka. Nova and some other non-brand are doing very well in sales. Konka and WALTON are most demanding in the gray market because of lower price, nice getup and for guarantor period. The demand for WALTON‟s products is increasing day by day which is a positive sign for WALTON. Price is the first choice of the customer for purchasing products in the gray market but brand loyalty and quality are not ignorable.References 50
  51. 51. 1. Philip Kotler, Marketing Management (11th edition), New Delhi: Prentice Hall, 2003, 706pp.2. Philip Kotler & Gary Armstrong, Principles of marketing (10 th edition) New Delhi: Prentice-Hall, 2003, 734pp3. Belch, George E. & Michel A. Belch, Advertising & Promotion (5th edition) New Delhi: Mc Graw-Hill, 2003, 795pp.4. Station, W.J. Fundamentals of Marketing, New Delhi: Mc Graw-Hill, 1992, 723pp.5. Mc Carthy, E.J. & W.D. perreault, „Essentials of Marketing‟, New-Jersey: Irwin, 1990, 668pp.6. Integrated Advertising, Promotion, and Marketing communications(Kenneth e. clow Donald Baack).7. Naresh K. Malhotra, Marketing Research an Applied Orientation (5thedition) New Delhi: Prentice Hall, 2009, 809pp. APPENDIX_1 51
  52. 52. The purpose and content of a marketing plan:Unlink a business plan, which offers broad overview of the entireorganization mission,Objective, strategy and resource allocation, a marketing plan has a morelimited scope.Product Review:The product review should summarize the main features for all of thecompany s products . The information may be organized by product line,type of customer , by market or by order of product information.Competitive Review:The purpose of a competitive review is to identify key competitors, theirmarket positions and briefly discuss their strategies.Opportunities:Opportunities are external elements that the company may be able to itsadvantage.Marketing research: Management should explain in this section how marketing research will be used to support development, implementation and evaluation of strategies and action programs APPENDIX-2Total market demand: 52
  53. 53. The total volume that would be bought by a defined consumer group in adefined geographic area in a defined time period in a defined marketingenvironment under a defined level and mix of industry marketing effort.Market potential:The upper limit of market demand.Net profit percentage:The percentage of each sales dollar going to profit calculated by dividing netprofits by sales. netprofitNet profit percentage = netsalesNet marketing contribution:A measure of marketing profitability that income only components ofprofitability controlled by marketing.Marketing return on sales:The percent of net sales attributable to the net marketing contributioncalculated by dividing net marketing contribution by net sales. APPENDIX-3 53
  54. 54. Marketing field is booming with nearly a third of all Bangladesh nowemployed in marketing related positions. Marketing salaries may very bycompany, position, and region, and salary figures change constantly. Inaddition, because of the consumer and product knowledge .I will gain inthese jobs, marketing position provide excellent training for the highestlevels in an organization?Resume Tips:Resume is very important for any jobs. So, we should know the resume.1. Communicate our worth to potential employers in a concrete manner,citing exam- whenever possible.2. Be concise and direct.3. Use active verbs to show I am a doer.4. Keep our resume compact. Usually one page.5. Format the text to be attractive, profession and readable.Marketing jobs:This section describes some of the key marketing positions.Retailing, marketing research, new product planning, marketing logistics,public relations. TO WHOM IT MAY CONCERN 54
  55. 55. This is to certify that, Saiful Islam Of PrimeUniversity, MBA Program, ID No: 121020102032 Has successfully completed the Internship in our Marketing Department From November – 10, 2012 to February – 10, 2013 At R.B. Group of companies Ltd. Head Office: 10, Dilkusha C/A, Dhaka-1000 Wishing every success in his life._________________ ________________Subrata Kumar Nandi Shamim-Al-MamunDeputy Director Assistant DirectorHRM Division Marketing Department Head Office: Jibon bima Bhaban(Level-3) 10, Dilkusha C/A,Dhaka-1000 Tel: +88-0285718345, 9554045, 7171873 E-mail: info@waltonbd.com www.Waltonbd.com www.rbgroupbd.com/ info@rbgroupbd.com PROJECT PAPER OnOverall Marketing Strategy of “WALTON”Ltd. 55
  56. 56. Presented By: Saiful Islam Prime UniversityMirpur-1, Dhaka-1216, Phone: 8014045, 8051782 56