Group Members
Muhammad ShoaibImtiaz AhmedFateh MuhammadSaud KhanSaifullah Khan
Dawlance“Dawlance Lia to Baat Bani”
Reasons For Selecting Dawlance
Local CompanyManufacturing companyConsisting its own Distribution ChanelExisting and extending opportunitiesSales Department and Sales teamCompany outletsFeasibility and Capacity
Introduction of DawlanceDawlance United Refrigeration Industries Ltd.
was established in 1980.stands for durable & reliable household
appliances. Its refrigerator Factory is located in Hyderabad.Five Factories all over PakistanThe main Objectives are to provide dependable
and reliable product at reasonable price to majority of Pakistanis and to enhance their quality of Life.
Company Growth And Expansions
To increase growth and revenue, Dawlance going to launch its new brand of Deep Freezers to cope up with the challenges of new millennium and future trends.
Future Prospects of Dawlance
Vision“To be the market leader in every of our
products, Nationally and regionally”We are committed above everything else.
Dawlance places its top priority on the satisfaction of human beings, the satisfaction of its customers, partners and employees. All our policies and approach towards work revolve around our cooperate belief.
Mission“To win the utmost satisfaction, trust and
loyalty of our valued customers”Mission of Dawlance is to design all
Dawlance products in such a way that can withstand the most adverse climatic conditions in Pakistan, to serve quality electronic product to customer and being able to support our customers in times of their need is an essential part of our reliability culture.
Mission for New ProductDawlance has the mission to long term
growth in the deep freezers industry. Its wants to dominate this product as the most favorite product by both industry and home consumers. It will be the value creation for the company.
COMPANY OUTLOOK STRENGTHS Reliable, strong brand name and exists for 28
years in the Pakistani Market. Employee ownership is high: employee is
motivated and is considered the king and is given most of the decision making powers.
Dawlance has a very strong network of dealers: more than 2000 dealers all over Pakistan
A competitive advantage and a major strength for Dawlance is that it exports products to Srilanka and Thailand.
WEAKNESSES
No Complain outlets.Communication gap: No Call centers
available for after sale purpose.Communication also for dealers with respect
to placing orders.No sale tracking systems such as the SAP.
Dawlance still works on FoxPro which causes accountability problems with dealers
No properly functioning website: customers cannot post a comment or any complain related to the product.
OPERTUNITIES
Reduce communication Gap between dealers and sales department of Dawlance.
Reduce communication between end customer and sales department.
Implement new technology such as the SAP to keep track of sales and profits.
Review Credit policy to ease burden of dealers.
THREATS
Competitors are lowering their prices
Terrorism
Economic instability
Short fall of electricity
Induction of International Companies
Competitors of Dawlance
LG
WAVES
PEL
MARKET STATUS INDUSTRY
Better performance
Favorable brand image
Room for innovation
Competitor Analysis
It has strong competitors like LG, Samsung, Haier, PEL
Dawlance enjoys market leadership in refrigerator and microwave ovens category in Pakistan.
They should develop market penetration and market development strategy to gain competitors market share by attracting nonusers or competitors customers.
Market
Present Market Share
Refrigerators 65%,Washing Machines 35%, Microwave Oven 40%, Air Conditioners 15%.
PRICING ANLYSISDawlance has got a policy that their all
product price should be the same in all cities and town in Pakistan market
Prices are set keeping in view the target audience which is middle class populace.
ADMINISTRATIVEName of Different Departments/Sections
United refrigeration industries LTD
Dawlance (PVT.)LTD United sales (PVT.) LTD
Dawlance marketing (PVT.) LTD
Dawlance electronics (PVT.) LTD
ACCOUNT SERVICES
Transaction entry
The invoices (payment or receipt)
Trial balance, balance sheet, income statement and other basic financial statements.
Transaction recording method
SALES DEPARTMENT
The Head
The National Sales Manager
Two Regional Managers
Zonal Managers
Branch Manage
Sales Officers/ Sales Executives
SALES CHANNELS
Direct Channel
Rashid Minhas Road Karachi.Saddar Karachi.Defence Karachi.
Indirect Channels
LAST FIVE YEARS SALESYEAR UNITS SOLD(Millions) REVENUE(Billions)
2010 1.2 Pkr 2.040
2009 0.9 Pkr 1.530
2008 0.675 Pkr 1.147
2007 0.50625 Pkr .86025
2006 0.379687 Pkr.645.679
The company has shown about 25% increase in sales in the last 5 years.
NEXT FIVE YEARS SALES PLANYEAR UNITS TO SELL(Mil) REVENUE(Bil) DF
Contribution
2011 1.6 Pkr 2.5 12%
2012 1.9 Pkr 2.8 15%
2013 2.4 Pkr 3.2 19%
2014 2.9 Pkr 3.7 25%
2015 3.4 Pkr.4.3 30%
The company has shown about 25% increase in sales in the last 5 years.
FINANCIAL FUTURE PLANS
SALES = 2.5 Billion COGS = 1.5 BillionManpower = 600 MillionProfits = 900 MillionAssets (Stock) = 3 months advance
stock (vary in term of amount)
Deep Freezers Contribution= 300 Mill=12%
AFTER SALES SERVICES
Dawlance has got qualified foreign-trained engineers
17 its own service centers
34 franchise workshops to cover remote areas
workshops cover almost 99% market of Pakistan
FUTURE GROWTH TARGETS FOR THE NEW PRODUCTTarget the sales
Breakeven in two year
Main Steps
Sales Forecasting by market
segment Analysis
Current Account Status
Target accounts
Distribution
Why Sales forecasting (First Reasons to Forecast) Check Feasibility Employment levels required Promotional mix Additional Investment in production & Promotion
Sales forecasting (Main Considerations)1. Market Segmentation
IndustryCommercialDomestic
2. Market Potential Industrial sector
Ice Cream, Frozen food, Beverages companiesDomestic
Sales forecasting (Main Considerations)
3. Sales Potential Company(Market Share & Market Potential)Refrigerators 65%, Freezers 35%
Sales forecasting (Main Considerations)4. Estimating Market Potential & Sales Potential
Ability to buyWillingness to buyMarket Research
Need AnalysisTrends
5. Product Life CycleIntroduction 3-6 monthsGrowth 1-10 Years even moreMaturity After 10 yearsDecline Unpredictable
Sales forecasting (Main Considerations)
6. Estimating Industry Sales
7. General Economic Conditions
8. Projecting Company Sales
9. Forecasting Methods1. Jury of Executive Opinions
2. Sales Force Composite
10.Sales Procedures16 points of sales process
Sales forecasting ( Sales Quotas an Budget Allocation)
11. Sales Quotas
12. Sales forecasting ( Approach)
Sales forecasting ( Demand)
Customer Groups: Home and Industry
Geographical Area: Pakistan then Central Asia
Marketing Environment: Increasing Demand
Number of Customers could be: About 2 million Plus
Sales forecasting ( Demand)
Average Selling Price per Deep freezer: 35,000
Estimate of market demand(Monetary term): 40
bill(Price*avg Customer)
Company Demand = Market Demand * Company’s Market Share
= 40 x 50% Market Share = Rs 20 billion
Sales forecasting ( Demand)
Price Comparison
Waves1. Waves WT-2180 18CFT Rs: 36499 2. Waves WT-2150-CB 15 Rs: 35699 3. Waves WT-2130-CB 13 Rs: 34699 Dawlance1.Dawlance 300-P 8 Rs: 27799
Sales forecasting ( Sales Force)
Recruit
Train
Develop
Integrate
Compensate
Motivate
Control
Direct
Sales forecasting (Current Accounts)
Market Share in Deep Freezers = 15-20%
Refrigerators =65%
Chest Freezers =45%
Sales forecasting (Target Accounts)
Market Share in Deep Freezers= 20-60%(First Five Years)
Growth =15-20%(Expected & Created)
Profit Margin =5-10%(First Five years)
15% and above( After Five
years)
Sales forecasting (Sales and Distribution)
Information: Internet, Sales representative, Retail
Channels: Direct, One Stage, Traditional
Cost: Distribution
Terms: Credit Sales, Trade, Warranty
Packaging: Shipping, Display, Retailers
Sales forecasting (Sales and Distribution)
Sales Strategies: Sales Personnel:(commissioned based,
product demonstrators, telephone solicitors)
Effectiveness:Actual vs Forecasted
Training: Product, Customers, Negotiation
Motivation: Incentives, Encouragement
Coordination: Among Promotional and
Sales Activities
Questions&
Queries are welcomed?