dawlance gst rate

1. NAME
ABDUL WAHAB AAMIR
ROLL #
S2F16ASOC0006
COURSE
ADP2
SUBMITED TO
PROF.ALAMDAR

4. About Us
Since 1980, Dawlance Premium Home Appliances Company
has been turning houses into homes with thoughtfully innovative
household appliances. The legacy of Dawlance – that now stretches
over more than 3 decades - started off with the production of
Refrigerators. Today, Dawlance – with reliability as its core
value - provides cutting edge Washing Machines, Chest Freezers,
Vertical Freezers, Split AC & Microwave Ovens.
Over the last 35 years, Dawlance has not only developed the largest
dealer network but has also established the largest after-sales service
across Pakistan.

5. Company mission
Promote Reliability In Everything We Do In The Field Of Household Appliances
Vision
Make Dawlance A Global Brand By Practicing Reliability: Make Pakistan Proud Of Us

6. GST RATE.NET SALE & PROFITABILITYOF
DAWLANCE COMPANY PVT LTD PAKISTAN FOR
THE YEAR OF 2017/2013
GST OF Dawlance PAKISTAN FOR THE YEAR 2017:
 Dawlance June qtr net up 10% to Rs 678 cr; firm claims GST hit top
line
 Net sales grew 8.38%, negatively impacted by GST roll out; profit up
9.77%
GST OF Dawlance PAKISTAN FOR THE YEAR 2016:
 Dawlance June qtr net up 8% to Rs 598 cr; firm claims GST hit top
line
 Net sales grew 7.12%, negatively impacted by GST roll out; profit up
9.2%
GST OF Dawlance PAKISTAN FOR THE YEAR 2015:
 Dawlance June qtr net up 7.2% to Rs 486 cr; firm claims GST hit top
line
 Net sales grew 7.11%, negatively impacted by GST roll out; profit up
8.3%
GST OF Dawlance PAKISTAN FOR THE YEAR 2014:

7.  Dawlance June qtr net up 7.04% to Rs 382 cr; firm claims GST hit
top line
 Net sales grew 6.6%, negatively impacted by GST roll out; profit up
8.0%
GST OF Dawlance PAKISTAN FOR THE YEAR 2013:
 Dawlances June qtr net up 4.97% to Rs 352 cr; firm claims GST hit
top line
 Net sales grew 5.9%, negatively impacted by GST roll out; profit up
7.23%
Graph Of Reserves and Share capital

8. COMPANY’S OBJECTIVES
The continuous improvement of all products and services through
total involvement of employees.
2. The development and strengthening of joint ventures and
partnerships with external and internal customers and suppliers.
3. Providing innovative and higher quality products to achieve total
customer satisfaction by understanding their requirements and
anticipating their future expectations or needs through:
Monitoring Annual Targets for quality improvement in all areas and
function of the organization.
Valuing people by understanding and drawing upon their strengths i.e.
abilities and knowledge and make efforts for their training and
development.
4. With a dedicated team of professionals the company is striving
to improve the quality of life in Pakistan homes through reliable
equipment for power distribution and home appliances.
MARKETING STRATEGIES OF DAWLANCE AND LG

9. A Comparative Study.
The study is based on the comparison of marketing strategies applied in
LG. and Dawlance. In this study, the main focus to see the effectiveness of
the marketing strategies applied by both the companies — Dawlance and
LG, for selling their products particularly Refrigerators.
Just to understand the marketing strategies in general and refrigeration
market in particular, one should know that what marketing strategies
ought to be? Who are the main players in the market? What kind of other
products do they produce? How do they promote and supply their
products? What type of competition is going on in the market? And
finally what are the marketing strategies being applied by both the
companies? These are the questions to be addressed, but the main theme
is the marketing strategies of Dawlance and LG Refrigerators. This paper
is mainly divided in to four sections.
The first section deals with the marketing strategies in general. The
second section focuses on the main players of Refrigerators in the
Pakistan market. The third section sheds light upon the marketing
strategies of Dawlance and L.G. Though the marketing strategies of all
the products may be the same. But mainly it has been focused on the
refrigerator marketing strategies here. Finally, the paper is concluded in
the last section.
All the information that is presented in this paper has been acquired and
extracted from various primary and secondary sources. In this study,
best possible efforts have been made to collect the correct and
uncovered information. For this, the information has been collected by
both primary and secondary sources. Primary data is based on the
interviews from the top officials of both the companies based on the
semi-structured questionnaire. The secondary data is based on the
published reports and Internet.
1. MARKETING STRATEGIES IN GENERAL
Fluctuating customer requirements and competitive forces are putting
more pressure on marketing and are demanding superior marketing
strategy and tactical execution. The cycle time from product creation, to

10. product launch, for a winning go-to-market strategy, leaves no margin
for error.
Marketing puts the customer at the center of the organization. The
organizations, which do so, reap the profits. The idle marketing ought to
be or the key steps to a successful strategy can be summarized as:
1.1 BE CLEAR ABOUT MISSION
The common, customer-orientated thread running through all the
activities of the organization and how we define the kind of market
oriented organization we want to be.
1.2 MARKETING RESEARCH
In marketing strategy some one should do know about the marketing
potential for his the product and should find out through research that:
WHO ARE OUR CUSTOMERS?
• What do we really know about their needs, preferences, behavior
and their life styles?
• What can we offer them... at a price... that other companies do not?
• How do we perform in comparison to our competitors?
• How are we currently performing for our customers?
• Where are the gaps, the weak points, the fudges, and the point of
excellence... the USPs (Unique Selling points)?
• How are we different?

11. • Why are we different?
• How can we better delight?
• How do we change?
• What do we change?
• How clever are we with our market intelligence?
• How well is our market research working?
• 1.3 Set Strategic Aims
• Market Penetration
• Market Development
• Product Development
• Entering new Market
• 1.4 Segment the Customers
Consider groups who share a similar need and who will respond in a
similar way.
• 1.5 Design a Marketing Strategy
• To achieve specific marketing objectives, based (e.g.) on the
Marketing mix.
• 1.6 Set Tactical Plans, Budgets, Programs
• Assign individual responsibilities to achieve the objectives.
• 1.7 Monitor Progress
MEASURE AGAINST STANDARDS AND CONTROL.
2. Main Players of the Refrigerators in Pakistan Market
Just to understand the refrigeration market, first of all we should know
who the main players in the market are? Actually there are two types of
marketers: those who manufacture refrigerators locally and those who
import and market the same in Pakistan.

12. Local Manufacturers of Refrigerators are: Dawlance, Waves, Pel and
Singer. These manufacturers roughly cater 80% need of the market.
Imported Manufacturers of Refrigerators are: LG, Super, General, Hair,
Sam Sung, Indesit, Semins,
Parties import refrigerators from their principal and market the same in
Pakistan. In-fact these all parties contribute only 20% of the market
requirement. The above all are direct competitors of Dawlance and LG.
electronics.
3. "Marketing Strategies of Dawlance and L.G Refrigerator"
Before discussing the marketing strategies of Dawlance and L.G, first we
will go through the profiles of the companies in brief.
DAWLANCE:
Dawlance United Refrigeration Industries Ltd. was established in 1980. It
is the Largest Company in Pakistan engaged in appliance business.
Dawlance stands for durable & reliable household appliances. Its
refrigerator Factory is located in Hyderabad. The main Objectives are to
provide dependable and reliable product at reasonable price to majority
of Pakistanis and to enhance their quality of Life. Present Market Share
of Dawlance product is: refrigerators 65%, Washing Machines 35%,
Microwave Oven 40%, Chest Freezers 45%, Air Conditioners 15%,
L.G.
Haniska International is a multinational company, located in Korea. LG is
an agent of Haniska International in Pakistan market. LG is an importer
of home appliances in Pakistan. It imports Refrigerators, Air
Conditioners, Washing Machines & Microwave Ovens from Korea and
China. LG has got around 300 dealers all over the country. Marketing
objectives of L.G are: to provide world class product to upper and upper
middle class to enjoy real luxury in their life. Present Market Share of L.G
product is: Refrigerators 4%, Washing Machines 2%, Microwave Oven
3%, Chest Freezers nil, Air Conditioners 25%.
3.1. MARKETING STRATEGIES

13. The marketing mix is the organization's overall offer, or value, to the
customer. 'The basic marketing mix is often nick named "the 4Ps"
(product, place/distribution, pricing, promotion); these are elements in
the marketers armory — aspects that can be manipulated to keep ahead
of the competition'. Here I've explored the marketing strategies of
Dawlance in terms of marketing mix have been explored.
3.1.1 PRODUCT STRATEGY
The object of Dawlance is to provide refrigerator to all people who fall in
lower middle, middle, and upper middle class in this country such that
most of the families should have refrigerators in their home because they
enhance better quality of life. Dawlance has got products, which are as
per international standards and carry all the basic features, which need
in any such type of appliances.
Dawlance believe that whatever they provide to their customers should
be durable and reliable. All the products, which Dawlance market, are
durable enough and customer can keep on using them for quite many
years without any problem. It provides its refrigerators, 3 years
compressor guarantee and 1 year chest freezer, and free service in spare
parts under normal use.
Whereas, LG's objective is to provide world class product to upper class
and upper middle class to enjoy real luxury in their life. Since LG is a

14. Korean brand and being imported from Korea, it has very advanced
features, which are normally demanded by in developed countries.
LG also insures that whatever product they market should be durable
enough which last quite many years and give trouble free service to their
customers. It provides its refrigerators, five years compressor guarantee
and one year free service in spare parts under normal use.
3.1.2 PRICING STRATEGY
Dawlance has got around 52 models in their refrigerator product line.
From the price list and discussion had with their management, it appears
that they have position their product pricing in such a way that their
main focus is middle and upper middle class. However, they have some
selected range for upper class as well. Product-wise price list enclosed in
appendix for reference.
Dawlance has got a policy that their all product price should be the same
in all cities and town in Pakistan market. Dawlance bear freight cost and
make their product available to their dealers irrespective of where they
are located. For this, they give uniform margin to their dealers
irrespective of whether he is big or small.
Dawlance consider pricing as one of an important element of marketing
mix. It believes that their retail prices should be uniform all over the
country irrespective of whether customers buy from Peshawar or
Karachi. In order to maintain a uniform price all over the country,
Dawlance bear transportation charges and make the product available at
cost price at dealer premises.
Whereas the LG pricing strategy is cost + fixed mark up to cover their GP.
Since they cater to upper middle and upper class, therefore their 90%
dealers are in big cities only. Product-wise price list enclosed in
appendix for reference. LG follows pricing policy in which their normal
formula is import cost + reasonable gross profit to cover their marketing
expenses and also give them reasonable profit.
3.1.3 PROMOTION STRATEGY
Dawlance promotion budget is around 1.75% of their turnover. 40%
spending of their budget is Print Media, 20% goes on TV, 20% on Out
door activity and balance 20% on Sales Promotion activity. They believe
that print media and out door activity help them to reach to their target

15. customer. Due to satellite transmission and having multi-channels, it
does not pay one unless you have very huge budget to spend on this
media. On promotion, their spending is more on consumer incentive
schemes. Since it pay them and there is direct relationship between sales
and consumer. Further, it gives customer a direct benefit in shape of
price reduction.
As far as Advertising strategy of LG is concerned, it is being planned and
executed by LG, Korea through their Pakistan Office keeping in view their
global approach and theme line. Local Agent of LG simply gives advice
and coordinate in its implementation. Since LG is a multi-national brand,
their spending on advertising is in such a way that their all product get
promoted. Although for different product they have got different agent;
like for TV, New Electronics/Karachi. For computer monitor, Vision
Computer. For mobile phone, Chimera.
It was not possible to get the exact advertising budget of LG, but it
appears from their spending and the figures collected from Pakistan
Advertising Association and from some other sources that their spending
is around 6/7 per cent of their sales in Pakistan territory. Due to being a
multi-national company and as a part of their global Strategy they, most
of the time, divert their funds from strong market and spend more on
weak or under developed markets.
Further, as far as Sales Promotion strategy is concerned, it is being
designed and implemented by their respective agent of each product in
Pakistan. For the promotion of Home Appliances products: Hanaska
International designs their own strategy. Their major approach and
emphasis on promotion through trade. They offer very handsome
incentives to their dealers, who in return push their product among the
customer and thus they get their desired volumes in Pakistan. It has been
noted that due to being import base product they are always high price
vis-a-vis other brands in the market and it is one of the reason why they
give so much emphasis on the motivation of dealers.
3.1.4 DISTRIBUTION STRATEGY
Dawlance has got around 800 dealers all over the country. Dawlance
ensures that its refrigerators are available almost in all appliances
markets of Pakistan. They have got 80% penetration in dealer sector. One
can get very easily their product in any city or small town of Pakistan.

16. 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.
In order to provide quick and timely delivery to their dealers: they have
got big warehouses located in almost all big cities and towns. Whenever
they get order from the dealer they try to provide supplies to their
dealer from closest warehouse. In case stock is not available in the
warehouse then it is delivered directly from Hyderabad Factory. The
maximum delivery time incase stock is delivered from Hyderabad
Factory is four (4) days. However if supply is given from closest
warehouse then hardly it takes 2-3 hours time. They believe that, timely
delivery of their product to the dealer, is one of an important element in
their success in Pakistan.
As it has already been stated in earlier that LG refrigerators are
imported. Mostly they import from Korea and some of the models are
imported from China as well. LG relatively don't maintain loose stock at
their end. Simply based on historical forecast and feedback of their
dealer about the possible demand, they import from their principal.
They ask their dealer to maintain sufficient stock at-least 4-6 week at
their end. Rather they believe in replenishment of dealer stock based on
their sales. It means dealers stock always remain in within a limit,
doesn't exceed beyond 6 week level.
As mentioned above, they have only 300 dealers mostly in big cities and
some in small towns. They also have got a policy that retail price all over
the country should be uniformed for the customers, whether he/she buy
from Karachi, Islamabad, or Peshawar.
They also bear transportation cost and thus provide supplies at uniform
rate to their dealers. They have got three big warehouses in Karachi,
Lahore and in Islamabad. From these warehouses they feed their product
to their dealers and thus they make their product available to them.
3.1.5 PRODUCT LIFE CYCLE
Dawlance is an ISO 9000 certified company and among its mission
statement. It is one of their missions to provide quality product to their

17. customers. Therefore, they ensure that every product, which is delivered
from their factory, must go through rigorous quality check. So that only
perfect product, free from any defect is delivered to their customers.
Since LG is an international name in home appliances, therefore LG
ensures that their product must meet their rigorous quality standard. So,
when it is delivered to the customer, it must meet customer's
expectations.
3.1.6 AFTER SALES SERVICES
Dawlance believes that after sales service is one of the most important
elements of marketing mix and thus give due emphasize in providing
quality after sale service to its refrigerator customers. Dawlance has got
qualified foreign-trained engineers in its team of after sale service and
also properly trained technicians and supervisors who look after service
centers and provide reliable quality after sales service to its customers.
Dawlance has got 17 its own service centers in different parts of country.
Besides, they have got 34 franchise workshops to cover remote areas,
where its service center doesn't exist. These are service centers and
franchise workshops cover almost 99% market of Pakistan. Wherever
Dawlance dealer is, there you'll find Dawlance workshop or either
franchise workshop to take care of service need.
In order to provide satisfactory after-sales service, Dawlance ensures
that in all of its service centers sufficient inventory of spare parts is
maintained, even these are available with franchise workshops.
Dawlance has got the policy first of all to carryout repair, if required at
customer place. Incase if refrigerator problem is not diagnosed at
customer premises then it is taken to its workshop. Whenever they get
any complain, they prepare job sheets and puts its record in computer
and whenever at later date if complain is repeated, in that case they also
have a history with them of such product in their data bank. Even after
five years if you want to find out from Dawlance service center that how
many times there refrigerators have been referred on account of
technical problem to their center, they can dig out from their computer
record. In nutshell, we can say that Dalliance's after sales service
workshops are very well properly organized and they work according to
international service standard. As far as service charges are concerned
Dawlance consider that it is not a profit center rather it's a support
center for sales.

18. As it has been mentioned earlier that LG has got market of refrigerators
only in big cities and some of its big towns in Pakistan. Therefore, they
have got relatively lesser number of service centers as compared to
Dawlance. At present LG has got only eight after sales service centers in
Pakistan. From these service centers LG provides after sales service to
each customers. They also maintain spare parts of serviceable items.
Since their product is 100% imported, the souring of spare parts is only
import based.
Relatively LG refrigerator's parts are expensive comparative to locally
made because LG imports spare parts from Korea and various other LG
production centers. One of the reasons for being these parts expensive is
that LG's local agent has to pay almost 70% of the product cost towards
import duty, sales tax and other import cost.
We can say that LG also believe in quality, after sale service to its
customers and also considers after sales service as one of the important
element of marketing mix.
CONCLUSION
From the above information, it has been analyzed that there is no
comparison between Dawlance and LG. There are several reasons behind
it. For example: Dawlance is a big local manufacturer of refrigeration
industry in Pakistan. It has got all engineering capabilities and very good
finance and of course technical know-how to produce internationally
accepted quality refrigerators locally. On the other hand L.G is a
multinational company and has got different agents in some of the big
cities of Pakistan. It is simply an importer and imports refrigerator from
Korea and markets the same in Pakistan.
Since Dawlance has very strong industrial base as well as deep-rooted
marketing network in Pakistan, they don't feel any threat from any of
their competitors, either local or from importers. In the contrary L.G
refrigerator is an import-based activity. Every year due to weakness of
Pak Rupee, US $ cost of import is going up and thus LG refrigerator is
becoming costlier day by day. Therefore, they have a big challenge before
them to maintain their market share and also to maintain their
reasonable growth against local manufacturers.
All Dawlance products are made for middle, upper-middle and upper
class. While LG products are made for upper-middle and upper class.

19. Present market share of Dawlance refrigerators is 65% while L.G's
present market share for refrigerators is 4%.
In the light of above evidences, it could be said that Dawlance is a
leading company as compared to LG, due to its dominance in the market,
lower prices, and availability of spare parts and after sale service, etc.
Hence people prefer to buy their products. Dawlance is dominant in the
Pakistan market because not of its marketing strategies but least
competition by L.G. L.G being a foreign company suffers because of
government policies by paying heavy import taxes. It means, it is not
only the marketing strategies of any company which plays a dominant
role but it the success of product lies in the marketing strategies as well
as the policies of the Government i.e favorable or unfavorable. As far as
the case of L.G is concerned, it is suggested that instead of depending on
import it should install its plant in Pakistan so that it may lessen its
burden on taxes.
* Annie Idrees is the final year student of MITM at Isra University
Hyderabad. The writer is very grateful to Professor Dr. Amanat Ali
Jalbani, Chairman Department of Management Sciences, Isra University,
Hyderabad, who very kindly has provided full support and guidance for
writing this paper, otherwise it would have been very difficult to
complete it.