Histroy,Goverence and Activites

2.  Brief profile of selected industry
 Another industry that has grown in Pakistan is that of air-conditioning and refrigeration. The
demand for Air Conditioners was estimated to be 63,528 in 1994-95 and was expected to grow at
the rate of 4.8% per annum for the next five years. Increasing trend in urbanization, income and
change in lifestyle has boosted the demand for air conditioners. In 1994-95, 70% of the total
demand was met by local production which increased at the rate of 18.7% for the previous six
years. Air conditioners are also smuggled in the country on a large scale. Despite ban on imports
of Air conditioners through Afghan transit, trade smuggling of air conditioners is expected to
continue. Smuggled brands are available at two-third of the prices of local brands. Two leading
brands, PEL (local brand) and General (international brand) accounted for75% of the market
share in 1995. However there is an increasing trend towards split air conditioners nation-wide.
 Refrigeration industry has exhibited tremendous growth in Pakistan. The demand for refrigerators
is estimated to be at 300,000 per annum for 1994-95 and is expected to grow at the rate of 10%
per annum for the next five years. Increasing trend in urbanization, electrification of villages and
the likely replacement of CFC emitting refrigerators with the CFC-free refrigerators were
estimated as boosters of demand. Another reason for the increasing trend had been the public
opinion that Deep Freezers are the best alternate of refrigerators when electric load shedding
occurs. Increasing trend in urbanization, income and change in life style have boosted the demand
for Deep freezers. Approximately 40% of the demand for deep freezers was from the commercial
sector i.e. shopkeepers, hotels etc., whereas 60% demand is from the domestic sector. Almost
100% of the total demand is met by local production while imports and smuggling of deep
freezers is negligible.

3.  Three leading brands dominating 85% of the market share are Waves, Dawlance and
Candy. The proportion of authorized dealers in top 31 cities shows that Dawlance
enjoys widest network of dealers followed by PEL, Philips, Andesite and Samsung
while the purchases data of dealers surveyed in the top eleven cities indicate that
Dawlance enjoyed highest market share followed by PEL, Philips and Andesite. The
dealers expect that the market for refrigerator would grow at a rate of 11.4% in the
coming few years. In 1994 estimated nation-wide numbers of households were 15.10
million, amongst which 9.97 million were electrified households.
 Households having a new fridge were estimated to be 2.39 million (24% of electrified
households) while households that bought a new fridge in the last 3 years was 0.828
million (8.3% of electrified households). These figures show rapid growth in the
industry and the trend was estimated to continue as customers were assured of
Guarantee and After Sale Support. The Government has also encouraged local
production through the deletion program and tax-free zones. There was also an
increasing tendency towards no frost refrigerators, but the higher price, interruptions
in power supply and load shedding restrained its growth.

4.  Brief profile of selected business unit
 Market Positioning Dawlance is the largest company in Pakistan engaged in appliance business.
Present Market Share of Dawlance product is: refrigerators 65%, Washing Machines 35%,
Microwave Oven 40%, Chest Freezers45%, and Air Conditioners 15%.
 There are three factors to take into account for home appliance industry in Pakistan. Firstly, the
challenging situation has been created by dealers whose profits have been reduced due to certain
policies adopted by manufacturers in the last few years. So they are looking forward to new
manufacturers entering in the industry. More profits and better services are also being included in
their demands. Secondly, the new entrants in the manufacturing industry including manufacturers and
importers, either they are local or foreign investors have challenged the domination of existing
manufacturers and importers. Thirdly, due to the expansion in market size horizontally and vertically,
competitive situation has been increased among manufacturers within the industry.
 Dawlance is the largest Home Appliances Brand of Pakistan with Annual Turnover of over Rest. 15.5
Band the overall strength of over 4,000 employees. It has a range of Products in various categories
including Refrigerators, Chest Freezers, Microwave Ovens, Washing Machines and Split AC.
 Dawlance Market Share in Pakistan is 58% and it has No. 1 position in 4 out of 5 categories.
Dimension: Managing all facets of Dawlance Group marketing in Pakistan and Export Markets to
deliver top line proceeds of Rest. 15.5 Billion.
 In July 2010, results of a survey conducted in fifty cities and four hundred villages of the country
were announced. The study was carried out by an international research agency and a local activation
agency. It ranked Dawlance as the seventh most leading brand of the country.

12. Analysis of current customer
portfolio .

13. SWOT Analysis on Dawlance
Pakistan Strengths:
 * The company has good market position and turn over.
 * The company has latest machinery available producing different
household appliances.
 * The brand is so popular within Pakistan and has sixteen distributions
center all over the country.
 * The company got very talented technical and managerial staff.
 * The company is located in main city Karachi, more near to big markets.
 Weakness:
 * The company is losing a lot of money due to extra labors and manual work.
 * The company hire graduates but the associated staffs not train them properly
that result in lack of communication, incompetence and very less company
knowledge.
 * The Managers of different departments not showing their full and motivation for
the company.
 * Theft events occur mostly because of no scanning system and irregularity.

14. .
Opportunities:
* The company can take a lead of Pakistan market by excellent marketing and customer
service.
* The company has the ability to grow and can increase its turn over by Online sale,
marketing and shopping.
* Electronic Business can save huge money by reducing manual work.
* The company has got no online competitor within the country.
Threats:
* The company has a major threat to security. It is located in main city and has no
scanning and proper security system.
* It is in competition in market with china and some other companies like Singer
Pakistan.
Trained and expert technician quits by finding better opportunity.

15. Drawing of BCG matrix :

16. •Identification of strategically significant customers (SSC):
•Analysis of value for customer:

17. Identification of top 20 % customers of Dawlance:
 Dawlance has got various types of dealers according to their potential. Around 25% of
dealers are "A-class" dealers who sell over 1000 units and above per year. "B-
class" dealers are those dealers who sell from 400 units up to 999 units per year. They
are around 50% in total dealer and the rest are in best 25% of "C-class" dealers sell
from 200 up to 399 units per year.

18.  Segmentation based:
 Most of the families living cities like Karachi, Lahore, Peshawar, and Islamabad generating
high turn over for D
 Dawlance and those cities where service centers exists 17 exits.
 Families are sub divided into following categories.
 * Middle Lower Families (30% of the whole population)
 * Middle-Middle Families (20% of whole population)
 * Middle Upper Families (10% of the whole population)
 * Upper Families (05% of the whole population)

 The rough estimation shows 35% of the population leave in poverty and that they some
time unable to go for any precious product.
 Refrigrater,A.c & Microwave.
 Present Market Share of Dawlance product is: refrigerators 65%, Washing Machines 35%,
Microwave Oven 40%, Chest Freezers 45%, Air Conditioners 15%.

19. Consumer positioning
 Dawlance refrigerators is working for upper middle class and upper class
 Refrigerators are suitable for Pakistani weather
 market positioning of refrigerators found very vigorous
 Customer believe that Dawlance is reliable - 12 respondents
 Bought on past experience
 Prefer Dawlance due to its good performance ,durability and stylish design
 Dawlance provide the warranty card that lets its customers rehabilitate or replace the
components if get damage
 Demographic segmentation
 Gender ; male and female
 Family life cycle ; young single , married and married with children's and so on
 Income 40000 plus

20. Target market segment
 Dawlance is a parent company and is targeting each of its appliance in different
market segment.
 In the category of refrigerators , they are targeting families of middle class and
upper class
 Age limit =25-60 years
 Income level –average or above average
Behavioral segmentation
 Our product have been segmented on the basic of benefits that customers seek in in
economic price

21. Customer life cycle management of Dawlance:
Acquire:
 Print media (20% Newspapers, News channels and magazines).
 TV ads (20%).
 Dawlance Official website (offer.
 words of mouth (1st position out 5 main players , 2 top of mind brand in all product
categories and out of 7 positions out of 3500 brands in Pakistan)
Convert:
 Dawlance 800 dealers all over the Pakistan providing facilities of welcoming
customers with great warm and provide details of products.
.

22.  Retain & Grow:
 2014 Lucky draw winners microwave oven 7 out 40( Karachi hydra bad etc.).
 News updates on websites about products.
 Free Recopies & Recopies books.
 20 % Marketing budgets on Promotions activates mainly focuses on price
reductions of products
 Serve:
 Dealers makes sales (800 over Pakistan).
 Draz.pk some products are available for sale(Dealers).
 online service Request at website official (May App develop).@@
 17 After sale services (4 in Karachi , 2 in hydra bad and remaining in main
sixties). @
 Online user manuals for products on websites.

23.  High life time value:
 Around 25% of dealers are "A-class" dealers who sell over 1000 units and
above per year.
 Benchmark:
 Hyper star , Metro & Other big malls.
 Inspiration:
 Middle Upper Families (10% of the whole population)
 Upper Families (05% of the whole population).
 These will help to inspire other customers to purchase products to improve life.
 Cost magnets:
 Big 16 Sale branches of Dawlance company that supply products in all big cities
across all provinces of Pakistan.
Strategically significant customers(SSC):

24. CRM Plan components:
Reengineered customer touch points of Dawlance:
Pre Purchase:
 Social media marketing (Facebook , twitter , integral and linked in etc.).
 Price catalog of products should be available on official website.
 Views and rating should be available on websites.
 News link should be update last was updated on June 2014.
 During Purchase:
 A lot of complaints has been examined against sale and staff personnel of
Dawlance which is very bad for good wall of company. According to face book
page company provide only two time training of dealers in last apex six years.
Company should provide training secession at least after one year to cope new
challenges and should provide new information about company situation.
 Promotion link should be resume on website.
 An Online premium delivery service should be start on websites for upper class
and dowry purposes it will increases sale.
 You tube for how to effectively used products.

25. After purchase:
Service and support teams and after sale services complaints has
been raising consecutively on Facebook page in from
2018.Dawlance has only 17 own service centers in different parts
of country .
Dawlance should increase the number of services center to
improve service.
Dawlance should develop an app through which customer can
complaints, can give reviews and suggestion about products.

26.  Loyalty Program for Dawlance:
 Develop an App for loyalty
 Membership free sign up by email or phone number and get 500
free points means 5 % off on that purchase.
 Give necessary data and get 10% off.
 500 free points on customer birthday means 5 % off.
 Referred loyalty program to a Friend and get 5% off.

27. Loyalty Programmed for Dawlance:
Choose a loyalty card type:
 Dawlance demand card Purchase from 300000/- to above in
1 year. 30% off
 Dawlance gold card Purchase from 150000/- to 300000/-
in 1 year. 15-25% off
 Dawlance silver card Purchase from 50000 /- to 100000/-
in 1 year. 5-10% off.
 on Next purchase in 3 years they will get 15% , 10% and 7% off
without any limit of price.

28. After that select a bundle of five items and get 10 % off.
First access to special offers.
Priority in After sale services.
Priority in lucky draws.
Save up to 10% on a appliance package of your choice.
3 nights stay at pc through lucky draw from diamond card
customer after one year of membership.
Refer to 1 (newly married couples and Dowry package ) and get
1500 Points that can be convertible into discount after 1 year and
10 special discount at referred time

29. Frequency of visit dealer point (get 500 free points means 5 % off
and special 5 % percent for that day only.
Refer brand to a new friend and get 500 more free points.
On Next every purchase they will get 500 points free which can be
discounted in next time purchases.
Diamond cards customer will also get first 3 Free home deliveries.
After that select a bundle of five items and get 10 % off.
Rewards to customer and Company:
Search cost reduce
high quality product
Discounts
Long term customer high value.
high profit