Karakoram International UniversityKarakoram International UniversitySkardu CampusSkardu Campus

SubjectSubject““Marketing Management”Marketing Management”

Present toPresent to““Mr. Kashif Ali Shigri”Mr. Kashif Ali Shigri”

Group membersGroup members

• Ammarah GulAmmarah Gul• Syed Sakhawat MusaviSyed Sakhawat Musavi• Wazir AnjumWazir Anjum• Muhammad WaseemMuhammad Waseem• Mehdi AliMehdi Ali

IntroductionIntroduction• Objective of studyObjective of study• CrisisCrisis

Presented byPresented by““M.Waseem”M.Waseem”

Happy Christmas Happy Christmas Company Company

Situated Situated International Trade City in Yiwu International Trade City in Yiwu

FOUNDERFOUNDER

HuangHuang

In our study we are going to reveal the In our study we are going to reveal the environmental analysis in order to over environmental analysis in order to over come the leading crisis from the Global come the leading crisis from the Global

Economic issues.Economic issues.

Objective of a studyObjective of a study

About HCCAbout HCC

• It is situated in an international trade city in It is situated in an international trade city in YIWU.YIWU.

• Its fonder is HUANG.Its fonder is HUANG.• HCC is the manufacturer as well as HCC is the manufacturer as well as

wholesaler of its own product.wholesaler of its own product.• It is an international well-known producer It is an international well-known producer

with elevated value product.with elevated value product.• It only has a product line of Christmas items.It only has a product line of Christmas items.• Its targeted markets are America and EuropeIts targeted markets are America and Europe• It mainly deals in fiber optic trees, baublesIt mainly deals in fiber optic trees, baubles

Current Crisis of HCC Current Crisis of HCC

• Global recessionGlobal recession• The sale of the company decreased.The sale of the company decreased.• 60 million to 35 million Yuan.60 million to 35 million Yuan.• Variation in buying behaviorVariation in buying behavior• The hesitance of European and The hesitance of European and

American buyers. American buyers.

Macro-environment Macro-environment analysisanalysis

Macro-Environment AnalysisMacro-Environment Analysis• PoliticalPolitical• EnvironmentalEnvironmental• EconomicalEconomical• SocialSocial• TechnologicalTechnological

Presented byPresented by““Ammarah Gul”Ammarah Gul”

PoliticalPolitical• China has greatly suffers from trade China has greatly suffers from trade

protectionismprotectionism• Global financial crisisGlobal financial crisis• Appreciation in YuanAppreciation in Yuan• Enhances labor wagesEnhances labor wages• High prices of goodsHigh prices of goods

• ““BUY AMERICA “ schemeBUY AMERICA “ scheme• Defame of Chinese productDefame of Chinese product• India banned on the toys of chinaIndia banned on the toys of china

EnvironmentalEnvironmental• Product cause health hazard to ChildsProduct cause health hazard to Childs• There is no Eco-friendly productThere is no Eco-friendly product• No alternate of plasticNo alternate of plastic• No chance for green marketingNo chance for green marketing

EconomicalEconomical• China has been named as "Rising Dragon”China has been named as "Rising Dragon”• China's economy is mounting at high and China's economy is mounting at high and

steady ratesteady rate• High prices of raw material like petroleum, High prices of raw material like petroleum,

plastics and steel.plastics and steel.• Increases exporting costIncreases exporting cost• Weakening the strength of china's Weakening the strength of china's

manufacturing industry.manufacturing industry.

SocialSocial• Big countryBig country• high population density (1.3 billion people) high population density (1.3 billion people) • It gives a high potential lucrative growth It gives a high potential lucrative growth

marketmarket• Opportunity for marketersOpportunity for marketers• Chinese government passed "One-Child Chinese government passed "One-Child

Policy”Policy”

TechnologicalTechnological• The reputation of "Made in China”The reputation of "Made in China”• HCC suffer hard due to such bad reputation HCC suffer hard due to such bad reputation

of other companiesof other companies• HCC has old technologyHCC has old technology• Cost of product increase because of old Cost of product increase because of old

TechnologyTechnology• E-CommerceE-Commerce• Its really need to give injection of Its really need to give injection of

confidence to the worldconfidence to the world

Micro-environment Micro-environment analysisanalysis

Micro-Environment AnalysisMicro-Environment Analysis• CustomersCustomers• DistributorsDistributors• CompetitorsCompetitors• SuppliersSuppliers

Presented byPresented by““Syed Sakhawat Musavi”Syed Sakhawat Musavi”

CustomersCustomers• HCC was mainly focusing on the HCC was mainly focusing on the

European and North American European and North American customerscustomers

• It is the time to change this viewIt is the time to change this view• Need to focus domestic customerNeed to focus domestic customer• Japanese & Russian people also have Japanese & Russian people also have

increasing consuming power on festivals increasing consuming power on festivals

DistributorsDistributors• HCC has its own distributing channelHCC has its own distributing channel• Reduce the thread of profit marginReduce the thread of profit margin• Need to established outlets at overseasNeed to established outlets at overseas• Need to introduce E-CommerceNeed to introduce E-Commerce• Products will be available for customer Products will be available for customer

at their door stepat their door step

CompetitorsCompetitors• Local competitors that have high strategies Local competitors that have high strategies

regarding marketing of productsregarding marketing of products• Supply their products to the market Supply their products to the market

approximately 2 month ago.approximately 2 month ago.• In order to capture maximum market shareIn order to capture maximum market share• Overseas competitor have dominant Overseas competitor have dominant

competitive advantagecompetitive advantage• low labor cost in Indialow labor cost in India• May be strong competitor in futureMay be strong competitor in future

SupplierSupplier• Increase in cost of raw materials, Increase in cost of raw materials,

Petroleum, and other factors of productionPetroleum, and other factors of production• HCC either reduce their profit margin or HCC either reduce their profit margin or

sale their products on high price.sale their products on high price.• Weakening their financial strength as well Weakening their financial strength as well

as lose numerous number of customersas lose numerous number of customers

Internal analysisInternal analysis

Internal AnalysisInternal Analysis• Assumptions onAssumptions on• MenMen• MoneyMoney• MachineryMachinery• MaterialMaterial• ManagementManagement

Presented byPresented by““Mehdi Ali Haideri”Mehdi Ali Haideri”

MenMen• Need to increase number of laborNeed to increase number of labor• Trained them Trained them • Motivate through compensationMotivate through compensation• Develop strategies to retain competent employeeDevelop strategies to retain competent employee• Equal employment opportunityEqual employment opportunity• Strong employees competitive advantageStrong employees competitive advantage

MoneyMoney• Borrowed loans from financial Borrowed loans from financial

institutionsinstitutions• Maximize their share capitalMaximize their share capital• Profit Re-energizingProfit Re-energizing• Short term loans from banksShort term loans from banks

MachineryMachinery• Need to improve latest technologyNeed to improve latest technology• Manufacture material with the use of Manufacture material with the use of

latest technology.latest technology.• Result in low cost of productionResult in low cost of production• Effective and efficient utilization of Effective and efficient utilization of

resources.resources.

MaterialMaterial• Need materials in bulk amountNeed materials in bulk amount• Result in discount receivedResult in discount received• Cost minimizationCost minimization• Control to reduce wastages of raw Control to reduce wastages of raw

materialsmaterials

ManagementManagement• Developed new techniques to enhance Developed new techniques to enhance

the qualitythe quality• Developed new strategies to boost up Developed new strategies to boost up

the market sharesthe market shares• Open marketing offices in overseasOpen marketing offices in overseas• Customer oriented productsCustomer oriented products• Effective communication with in as well Effective communication with in as well

as out side of the organization.as out side of the organization.

Internal AnalysisInternal AnalysisSWOT AnalysisSWOT Analysis• StrengthsStrengths• WeaknessesWeaknesses• OpportunitiesOpportunities• ThreatsThreats

Presented byPresented by““Wazir Muhammad Anjum”Wazir Muhammad Anjum”

SWOT ANALYSISSWOT ANALYSIS

STRENGTHSTRENGTH• LocationLocation• Quality productsQuality products• Religious factorReligious factor• Reputation of companyReputation of company• Remarkable export history Remarkable export history • Dedicated employeeDedicated employee• Effective management teamEffective management team

Weakness Weakness • Low human capital Low human capital • High labor costHigh labor cost• High production costHigh production cost• Increasing exporting costIncreasing exporting cost• No Eco-friend substitute of raw materialNo Eco-friend substitute of raw material• Company name; HCCCompany name; HCC• Seasonal businessSeasonal business

OpportunityOpportunity• Great domestic consumer market Great domestic consumer market • One child policyOne child policy• Growing population of chinaGrowing population of china• Growing human needs to satisfyGrowing human needs to satisfy• Targeting other festivalsTargeting other festivals• High acceptance and welcoming of High acceptance and welcoming of

foreign culture in Chinaforeign culture in China• Potential foreign market other than USA Potential foreign market other than USA

& EU& EU

ThreatThreat• Lack of currency exchange-rate Lack of currency exchange-rate

mechanism. mechanism. • Other companies repo like “Made in China”Other companies repo like “Made in China”• American Policies regarding importAmerican Policies regarding import• Competitors with great competitive Competitors with great competitive

advantagesadvantages• Low labor cost in other countriesLow labor cost in other countries• Increasing number of companies focusing Increasing number of companies focusing

ChristmasChristmas

ReferencesReferences

http:\\A report card for China's environment Jonathan Watts http:\\A report card for China's environment Jonathan Watts Environment guardian.co.uk.htmEnvironment guardian.co.uk.htm

http:\\China Social Issues & Conditions.htmhttp:\\China Social Issues & Conditions.htm

Q & A