This entirely refers to the two adherents without whom this project would not have gained the perfection and elegance which it now has. First and the foremost we are thankful to Almighty Allah (S. W. T), the most gracious and merciful, whose blessings and support were always there for us in making our report a successful one and the extent of that success is substantial in terms of quality and its explicit features.Now, we would like to thank our teacher Sir Facial Queries, the second adherent, for providing us with the pleasure of a cordial and supportive work environment that we had experienced during the time span Of Our report. We are thankful for his quality teaching, cooperation, guidance, constructive criticism and valuable suggestion throughout the course.
Special acknowledgement to our Parents for their love, blessings and kind support throughout the period of our studies and further.Thanking again the Almighty Allah and our Teacher. LETTER OF TRANSMITTAL Sir Facial Queries KARA university, Defense Campus, Karachi.
18th December, 2014 Us object: Letter of Transmittal Respected Sir, With due respect and as per your instructions we have prepared this report. It’s a complete group effort, in which we prepared a report for analyzing the strategic moves of Dalliance Pat. Ltd. This combine effort enabled us to complete this report. Kindly accept the report and we hope you would find it appropriate. Thanking you.
Initially they started business with refrigerator manufacturing & later extend their product line to deep freezer, washing machine, microwave oven & air conditioner. With the continuous improvement & innovation, Dalliance has achieved its position in Pakistan market. The company provides dependable & reliable products at reasonable priced to the customers & enhances their quality of life. Present market share of Dalliance product is: refrigerators 65%, washing machines 35%, microwave oven 40%, deep freezer 45% & air conditioner 20%.As Dalliance has a prominent & significant market share in Pakistan, it provides its customer the benefits of modern lifestyle & world class innovative products, unmatched nationwide customer support, a vast dealer network & after sales-service throughout the country.
Dalliance has maintained superior quality standards & can proudly State to be the first Pakistani Company awarded the ISO 9001, ISO 14001 , & SHOOS 18001. Dalliance also exports appliances to entries like Sir Lankan, Bangladesh, Saudi Arabia as well as some Central Asian & African countries. Industry Dynamics The home appliance industry is rapidly growing industry of Pakistan.Pakistanis consumer electronics market which was worth 2 billion dollar in 201 2 is now growing by an annulled average of 13. 3% which will lead to approximately 3. 3 billion dollars by 2016. The role of procurement is very important because product engages with many technical core materials which have to compatible with each other and high cost is involved. Snapshot of Industry Analysis in 2012 Market Size USED 2 Billion in 2012 Market players Dalliance, Hairier, LAG, Mediumistic, National , Orient, Panasonic, Peel, Phillips, Samsung, Sony and Waves Social Environment: People become more price conscious.
People like energy savers like products splits. In country like Pakistan the use of AC and Refrigerator is huge because of the large summer season of 8 months. Upper and middle class even use AC. Companies are becoming more social responsible as they have introduced Antibacterial and anti-dust filters. Vision statement: “Make Dalliance A Global Brand By Practicing Reliability: Make Pakistan Proud Of Us”. The vision statement of Dalliance states that through reliability, creativity, communication & continuous innovation company hopes to achieve better position in the minds of consumer.
It states that Dalliance places its top priority on the satisfaction of its customers, partners & employees. Dalliance intend to create reliable & respectable brand image through sustainable, top quality & modern design products delivered all over the world. Mission Statement: “Promote Reliability In Everything We Do In The Field Of Household Appliances”. It states that by providing quality & innovative products the many can constantly meet customer expectations.
By emphasizing on the factor of reliability,firm can achieve customer loyalty.Their mission is to design products in a way that can withstand the most adverse climatic conditions in Pakistan & able to support their customers in time of their need which is an essential part of their reliability culture. Product Portfolio Refrigerators Air conditioner Roaster Toaster Micro-Wave Oven Juicer Washing Machines Dryers Irons Deep Freezer Small The prime strategy is the combination of both low cost provider and providing a bit of differentiation, they believe in bringing in relevant solutions or consumers.Copying internationally available solutions to various needs may or may not work in their market cause of various reasons like power failures, higher operating temperatures and assuring healthy lifestyle of their valuable customers. While developing these products all of these harsher working environments are kept in view so that they are manufactured as per local desirability and performance standards.
Their products are market competitive and in the international ground they received a much greater response than expected and hence those responses are turning into refutable business deals providing Dalliance with access to more countries for exports. The objective of Dalliance is to provide appliances to all people who fall in lower middle, middle, and upper middle class in this country such that most of the families can enjoy the electrical home appliances in their home because they enhance better quality of life.Dalliance has got products, which are as per international standards and carry all the basic features, which need In any such type of appliances.
Dalliance believe that whatever they provide to their customers should be durable and reliable. All the reduces, which Dalliance market, are durable enough and customer can keep on using them for quite many years without any problem. Dalliance is one of the popular electronics manufacturing companies in Pakistan. The company since built is has good turn over and good customer satisfaction level.The company is more established in urban areas having big ware houses and retail shop which the customers buy directly.
The products range from small appliances like Switches, Irons to Air Conditioned and Refrigerators all of which has good demand within the country. The company has segmented its products in to daily use electronic stuff to seasonal appliances like heaters in winters and Air Conditions. More than 70% of Pakistan population is below E a day making it very difficult for them even to meet to their both time meal.Most of the families have a very low income and huge burden and difficult for them to go for luxury and even necessary stuff like Refrigerators and heaters. Over the past one year the due the global crisis the country is in economic crisis resulting in the downfall of many manufacturing companies. Dalliance is also the victim of this economic disease.
The company is also facing political and security problems all over he world affecting its marketing strategies very badly. However the brand can’t bring its quality down because of diluted market problems.The company Dalliance sells its prod cuts through its main warehouses and shops within the country and have almost negligible sale online when we characterize it as BBC or direct to customer sale. They have tried to design a plan that attracts most customers from all over the country ranging low medium to upper class families. The strategy here is low price and good quality and extra facilities to capture the market and take a competitor market share. 1 .
Dalliance strategy is to produce more user health friendly rather than conventional production. This technology is named as “H-Zoon?’.Pakistani consumers today are very concerned about their family health, be it related to their food preservation in refrigerators, various methods of washing clothes or quality of air inside and outside their house. 2.
Dalliance tries to minimize the load of Power Consumption (Electric Bill), and enhance Quality, Service and Reliability for its consumers. 3. Dalliance products are comparatively cheaper than other local or foreign company, giving opportunity to people of all classes to be a part of it PESTLE ANALYSIS The Pestle analysis is the abbreviation for political, economic, social, technological, legal and environmental analysis.All these aspects are taken to analyze the external environment. Political: Political condition is getting worst day by day in Pakistan. The country is passing through the dark stage of the history facing security and instability problems. Government is not in position to provide funding for the company growth and is not in the position to go for international legislations.
International trading policies are worst and corruption is very high. Economic: Due to recent global economic crisis the company is facing a lot of problems. Tax rate is high and the retail market seems to be going down.Social: Most of the people of the country are living in rural areas, unaware of the products and its benefits. These people don’t like products TV’s because of religious concern. The people in these rural areas like manual work and don’t like machinery. Female normally don’t visit shops and don’t work.
Most of the people can’t afford to buy. ‘ Technological: Technology is growing day by day. The company has latest machinery and has highly qualified engineers and professionals.
The cheap technology of china has brought a new revolution not only in Pakistan but in the whole world.Legal and Environmental: The company business is not bound to any legal and environmental constraints and has open hands to market effectively. Soot Analysis of Dalliance After analyzing the strategy and objective of the organization we have performed its soot analysis and identified the following points: 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 striations centre 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 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.
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 Change in government policies and some of the arriving crises. It is in competition in market with china and some other companies like Singer Pakistan. Economic downturn So on the basis of the above SOOT analysis we can conclude that the company needs new marketing strategies and online sale opportunity.There is a need to design a new relationship of the company with its suppliers and Customers The company Seems not to have enough competitors, so a better opportunity to invest money on latest online internet technology. BCC Matrix of Dalliance: Stars: The Microwave ovens are the star product of dalliance that have the best market shares and generate the most cash are considered stars. However, because of their high growth rate, it also consumes large amounts cash.
Cash cows: Dalliance refrigerators are Cash cows and leader in the marketplace and generate more cash than they consume.These are business units or products that have a high market share, but a low growth prospects. Dogs: The Washing machines of Dalliance are dogs and have both a low market share and low growth rate. They don’t earn a lot of cash, nor do they consume a lot. Most likely these aspects of a business are making little, if any money. Questions marks: Vertical Freezer is Question Mark product of Dalliance as it is the part of business that has high growth prospects, but a low market share. They are consuming a lot of cash, but bringing little back in return.
Market position of dalliance According to estimation the Pakistan has 160 million of population and most of them leaving in families of at least four or five person on average. This in other words means if we can divide the market in to following segments. The segmentation is entirely done on the basis of average monthly income and normal living standard. We will extend on Dalliance image of innovation, quality, and value and has to make it more competitive in market. MARKET SEGMENTATION The main market is segmented in to Serbian and Rural Areas which can be further sub segmented in to following categories.The products are segmented in to the following categories. 1. High quality expensive Products (attracting rich families) 2.
Medium quality moderate Price Products (For medium class families) 3. General Products of daily usage common use 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 sometime unable to go for any precious product.Distribution The company has almost sixteen big warehouses all over the country and retail stores in almost all the big cities. The company along with physical consisting in the retail shops will also have the facility to order via phone and mails. So the product can been delivered with no hassle. The payment for the products will be in advance either by queue/postal order or Bank deposit.
GEOGRAPHICAL DIVISIONS Most of the families living cities like Karachi, Lahore, Appeaser, and Islamabad and many major cities and districts have more probability to buy electronic appliances manufactured by Dalliance.Therefore the main focus is on urban areas which have easy access and easy delivery services. Most of the bill board adverts are normally spread in cities with lights easily resurging customers. Dalliance Step towards Civilization: Dalliance with a sustainable expansion strategy, made its presence felt at the Big 5 exhibition held in Dublin recently, says a Press release. At the exhibition, Dalliance stood out from the crowd as the only Pakistani home appliances company that managed to impress a fair number of foreign countries in the MEAN region and other African countries.Exploring export opportunities in the Middle East and African region, Dalliance showcased its refrigerators and freezers at the exhibition. Dalliance established its Dublin office in 2009 to Ochs on export segment whereby it manufactures and distributes refrigerators, washing machines, chest freezers, air conditioners and microwave ovens in the region.
Talking on overseas expansion, Has Jamie Head of Sales and Marketing, Dalliance said, we at Dalliance are proud to be a Pakistani appliances company operating in Dublin.The Dublin office is our first international office for entire global distribution of Dalliance products. This is Dalliances first overseas participation and we are displaying our latest products in the event.
We are also looking at other Gulf countries and efferent parts of Africa and East Africa for new business opportunities. Challenges Hi-zone technology cost occurs for the production of multi Home Appliances and for that they have to work on continuous bases to give the best in the soak.Pakistan is one of the very few countries where 95 percent of the appliance market is dominated by local players and it occurs a huge dare for dalliance that his consumer wont shift due new technology or change in any driver.
Heavy financial support is required because all imports are done on advance payments and product itself expensive and make to sock in nature o product holding cost is very high. Dalliance is a market leader but it is facing a draw back in its Television production which is almost nearly to 12% working in market.They are trying to held it up but not getting kind of feedback about the particular product. Warehousing issues occur as dalliance have major warehouse almost in every cities and towns so whenever an order place they try to get it from the nearest one in minimum 3 hours but if it is not available so in that case it will direct delivery from Hydrated in 3 days, which consume extra money, time and delay in service. Lower entry barriers for low end category product.
The company is losing a lot of money due to extra labors and manual work.The company has a major threat to security. It is located in main city and has no scanning and proper security system so they are working on these things which show a biggest challenge regarding the security of these products. Recommendation Invest into its advertisement campaign and increase customer awareness and the market share. Focus on process & product innovation and find new ways to manufacture its product and develop products according to changing nonuser needs and awareness.Pakistani home appliances has a great advantage of freight charges as compare to the competitors which are mostly from the global market which includes China, Middle East and African markets. Exports markets of Pakistani home appliances products are Afghanistan, ALGAE, Sir Lankan and Iraq. Potential is also there to expand to further global markets which includes Middle East markets and creating new market in South Asia and Africa.
List itself in the stock exchange Of Pakistan so it can generate more financial which will be useful for its global expansion. Not serving international market on huge bases so now importing their appliances.