All praises for Allah who is the so Merciful, Beneficent to His creation and who is the master

of Judgment day. Without His consent, nothing is possible.

We offer our humblest thanks from the cores of our hearts to the Holy Prophet Hazrat

Muhammad (PBUH) who is forever a model of guidance and knowledge for mankind.

Now we wish to express our special thanks to our worthy teacher Sir Mr. Malik Asim Awan

for his Cooperation, Valuable guidance and supervision under which this project has been

completed.

We are also thankful to Sonica Industry. For their help, association, encouragement and best

wishes, this enables us to complete this project of Marketing Management of Sonica Industry.

All we specially acknowledge all those persons who helped and support us in regard to

provide information for this project report (directly or indirectly).

Rana Waqas 09108136 Rana Ammar 09108124

Yousaf Abbas 09108123 Usman ilyas 09108127

Executive

SummaryMarketing is very important in an Organization. Organizations have been using their

departments in carrying out the product and create value in the mind of customer and make

success full product and enhance the sale. In order to address the challenges of Modern

Business era, the organizations use all their departments as a tool.

This report is based on project of Sonica Industry which has factory in Gujranwala near pindy

bypass. There are four main industries under the head of Sonica industries

1. Sonica Auto industry.

2. Sonica Plastic furniture industry.

3. Sonica injection molding industry.

4. Sonica Copper wire industry.

The project is also an effort to investigate and evaluate the Marketing Management Process in

all the Departments of Sonica Industry. We have given the Project of Marketing

Management. We have selected the Sonica Products for our Project. In Sonica industry we

are selected two products one is motor bike (70cc) and second is Plastic Furniture. Sonica

was established in 1978.

We apply different Marketing Functions and theories of analysis in our project (SWOT,

PEST, Situation, 4Ps and etc). In the very end of this report we have some significant

suggestions and recommendations for further improvement, development, rectification,

precedence and excellence of the Sonica. Report area include glossary.

Sonica Group of Industries

Sonica Plastic industries started its business in 1978 by manufacturing spare parts of Plastic

washing machines on a small scale under the supervision of Muhammad Munawar. But

continuously and gradually this small unit started manufacturing of Plastic Furniture on a

large scale in 2009.Sonica Plastic Industries has its own automatic machinery. This is all

achieved by sharing committed management and experienced employees. Sonica Plastic

Industries is now become a prominent name in Plastic Furniture industry in Pakistan. Sonica

Plastic Industries satisfying hundred of million customers all over Pakistan and abroad too.

Sonica Auto Industries started business in 2001 by manufacturing spare parts of MOTOR

CYCLE on a small scale under the supervision of Muhammad Waqar. But continuously and

gradually this small unit started manufacturing of MOTOR CYCLE on a large scale in 2006.

Sonica Auto Industries has its own automatic paint shop, assembling department etc. This is

all achieved by sharing committed management and experienced employees

 Sonica Auto Industries is now become a prominent name in Auto industry of Pakistan.

Sonica Auto Industry satisfying hundred of million customers all over Pakistan. Today, as we

are witnessing a new era of industrial, economic and commercial advancement, we have

developed all our efforts for the betterment and achievement of the new positive prospect of

long term development.

While Sonica industry also manufacturer of Cooper wire but due to high increase in the price

of cooper raw material this plant is stopped last 1 year

Situational Analysis

Vision Statement

To improve on contemporary measures such as, cost, quality, service, speed of delivery and

mobilization.

Customer satisfaction with high Quality

Create Trust in all customers

To Be …

... A market leader by providing quality products and superior service to our customers, while

learning from their feedback to set even higher standards for our products.

Mission Statements

A sign of Quality & Durability

PEST ANALYSIS

Political Factors

Inconsistent policies of the government adversely affect the business environment of

the country.

The government seems to complete its tenure of five years for the first time so it is a

good sign.

Frequent increase in oil prices disturbs the cost and selling price of the raw materials

and products respectively.

The government plays very little role in building up the health, education, and

infrastructure of our nation. As a result the human resource is not as skilled as ideally

it ought to be.

Economic Factors

Due to recession the economic growth of the industries in which Sonica operates is

almost stagnant.

Interest rates are high. Although the group has a solid equity based equity but it has

borrowed a loan of 30 million for the plastic unit. The financial cost of the loan is

quite high and in future further borrowings would be difficult to attain, although

secured borrowings can be attained as the group has a heavy asset base.

Inflation rate is above 20%. If prices are not increased by more than 20% in a year,

inflation cannot be covered. The increase results in loss of sales.

Social Factors

Labor is not health conscious in this region so it is available at low wages.

They are willing to do overtime in order to earn more money as they are living in

poor conditions.

Technological Factors

Technology is becoming advance day by day and it is very difficult to cope with such

rapid advancement. It is not cost efficient as well make frequent changes in

technology. Normally, technology is upgraded after a period of 3-5 years.

Technology can bring efficiency, improve quality and reduce effort. Efficiency can

reduce cost and quality can increase sales and establish a brand name. Less number of

people may be required thus further reducing cost. But it requires huge amount of

investment initially and people will take time accepting new technology and getting

used to it. Some may show resistance.

With the help of advanced technology Sonica can achieve competitive advantage and

dictate terms in the market.

In Plastic Furniture Unit the management is not compromising by investing in the

research and development. This is why they have a wide range of products. Some of

them are not even offered by competitors who are very old in the industry.

Special expertise may be required to bring the technological change in the group as they do

not have any IT department in any unit

HOW LARGE IS THE MARKET FOR THE PRODUCT IN QUESTION?

In country like Pakistan it is difficult for the peoples to maintain the cost incurred on the bikes

petrol. After every day the price of fuel in Pakistan is increased so it is the need to make a

bike which is fuel efficient and will be on very low cost and will be easily accessible for the

poor people as well. So we introduced a bike which will be 50cc and its price will be very low

and will be up to Rs.30, 000. The peoples who are cost conscious and does not afford the fuel

charges will bought our bike and in Pakistan most peoples are poor and middle class so they

will bought our bike rather than other bike and market for our bike will be very high. And our

target market will be middle class peoples and office going peoples.

SONICA AND OUR PRODUCT MARKET SHARE

As we knew the market share for Sonica are only 5% as compared to other bike producing

companies which is very low. Therefore we introduced some thing innovative which other

companies does not provide, due to this innovation the market share of our company will

increase as compared to other companies and our company will got a status in bike market as

well.

FACTORS INFLUENCING THE DEMAND OF OUR PRODUCT

These are factors that influence the demand of our product;

Low income

The income of Pakistani peoples is not too high and they don’t afford the high price

bikes therefore in such conditions when we will introduced low price bikes peoples

will attract toward our bikes.

Increasing prices of fuel

In country like Pakistan where inflation rate is very high prices of every thing is gone

up and up and the price of fuel is also becomes high after every day therefore our

50cc bike will create his demand at his own and people will prefer our bikes to

purchase.

Innovative design and technology

Marketing analysis

In our bike such a type of engine is held which is most economical engine of Pakistan

history that engine give us minimum 150miles per liter. And such a type of engine

will make his demand on his own.

MARKET SEGMENTATION

We introduced the bike for those middle class peoples who does not afford bike due to high

prices and also the high expense of fuel and also for those office going peoples who had very

low incomes and does not afford the high price of fare or fuel so our target market will be

middle class peoples and low income employees.

OUR PRODUCT AND PLC

Because Sonica is going to introduced innovative thing in the market therefore our product

will be on the very early stage of the product life cycle which is introduction. But with more

promotion and advertisements company can make the loyalty in minds of the customers due

to which peoples will buy our product and our product will reach on growth stage of PLC.

With more promotions company will form the good will in the mind of the customers due to

which the demand for our product will be increased with the passage of time.

WHO ARE THE COMPETITORS?

Mainly these will be our competitors;

HondaYamahaSuzuki

THEIR STRENGTH AND WEAKNESSES

Their strength is that they have very high market shares and loyalty in the mind of the

customers and they gave very high quality products therefore peoples will think a lot to come to our product.

Their weakness is that they produced very high price bikes which are not affordable

for the middle class peoples like Pakistan.

BASICS OF COMPETITION

Our Basics of competition will be price and most economical engine of our bike.

Those things will provide us some sort of competition with our competitors.

HISTORY OF COMPETITIORS

Honda is in Pakistan from 1975 till now they are very famous in motor bikes in

Pakistan because they maintain their standard of quality from start to till now.

CURRENT MARKET SHARE OF COMPETITIORS

Honda has 71.16% market share in the market of motor cycle while Yamaha`s market share are 14.41% and Suzuki market share are 2.54% while other companies like toyo, habib and Ravi had total 12% market shares for bikes industry in Pakistan.

Competitors Analysis

Porter Five force model

Our product is according to the bargaining power of Pakistani customers while

Honda`s products are out of range from customers that is the edge our company had over others.

Because our product will be attractive it will be a threat that Honda or Yamaha also

introduced the same product.

Porter Five force model

An Analysis of organizations strengths, weaknesses, opportunities and threats. Strengths and

Weaknesses are internal factors of an organization, whereas Opportunities and threats are

external factors of an organization.

The combined internal and external analysis of an organization called SWOT ANALYSIS of

the organization.

Strengths

They manufacturing high quality products

They have a quality control Department check their product at every step

They have 5% market share in 7 years

They have high qualified managers which are the success key for company.

Latest technology

They are ready to launch Sonica cc 100

Due to offering credit policy the number of customers Sonica Plastic Industries has is

high.

Since 1978 they have developed goodwill and customer loyalty. This is they do not

lose any of their customers. They develop long lasting relations with the customers by

giving them credit in tough times as well.

They have high figures of sales. Even in times of recession they have a gross turnover

in 2010 of 475 million.

The group has a very strong base of investment. The majority of the investment is

equity based.

Weaknesses

New employees are unskilled.

No proper training provided to their employees. Current employees are mostly uneducated.

High labor cost

Tax rate increase in Pakistan

New product takes time for gain market share

None of the units in the group has developed Best Practices Manual or Standard

Operating Procedures. This results in the execution of operations in a non-standard

way. The culture of the organization is also affected by the ways organization is being

run. People do not know what to do when a problem comes up and ultimately it has to

be solved by the higher management instead of following best practices in the

organization.

Trusting new customers on the recommendation of existing customers and giving

them credit is another weakness. Sometimes the new customers do not pay for the

goods delivered to them.

Opportunity

By offering credit to customers they charge more in order to gain higher margins.

Due to uncertain and difficult conditions in the country sometimes competitors are

because of such conditions. These are the times when one can capture the disturbed

market. This results in brand recognition, high sales and high profits.

New model of motor bike SM 125cc going to be launched which have demand in the

market. Providing such items is a good opportunity to earn money.

Threats

There is always a risk of bad debts when credit is offered. Sonica Group of Industries

also faces this risk.

The environment of the country nowadays is very uncertain. Making plans on the

basis of estimation has become very difficult.

Frequent increase in the price of petrol result in increase in the prices of all the raw

materials. Due to this selling price has to be increased and customers are lost.

High interest rate is paid by the organization on debts taken from banks.

Mostly raw material is made in Pakistan. Because of Electricity short fall production

are not in proper. In case of some political instability, results can be very drastic.

They are enjoying the whole market as their clients as there is no any perfect

competitor, so they have a large threat of competitor.

Such high rate of inflation has destroyed the economy. Nobody is willing to invest

and so customer buying behaviors have changed and so they negatively affect the

sales.

Cost of production increase day by day because tax rate increase petrol and electricity

prices increase also our country face the problem of inflation and recession so cost

increase.

Analyze buyer behavior

WHO INITIATE THE BUYING PROCESS?

Our marketers will initiate the buying process they will show that our product will

fulfill the current need of more millage with less price then customers knew that they

want such a product which will give us such a attributes that will fulfill our need then

they will think about purchase.

FACTORS STIMULATES THE NEED

The poor economic condition and every day increase of inflation in Pakistan will

stimulate the buyer that they purchase such an inexpensive bike.

CRITERIA TO EVALUATE THE ALTERNATIVES

These might be the criteria to evaluate the Alternatives;

Price

Mileage

Quality and durability

Economic trends

Availability

After sale services

Warranty

The most important criteria will be Price, Quality and mileage of the product because

mostly peoples are price and quality conscious.

Those who will found that our product is serving more than the competitors product

will decide to our product.

Those peoples in whose mind our marketers become successful to create good will or

loyalty will finally purchase our product.

After purchase peoples will use our product then they evaluate the attributes of our

product with other one if their evaluation about our product will be good then they

will purchase our product again or suggest others to purchase our product but if our

product does not fulfill the needs or their thinking criteria they will leave our product

and will move toward the other company.

By introducing new 50cc technology in Pakistan Our Goal is to reach more than forty

percent of total sale of bikes in Pakistan and got more than forty percent share in

motor-bike market and our product will be available in every city and every village of

Pakistan

.

GOALS OF OUR

COMPANY

CURRENT STRATEGY

Our current strategy of market segmentation is demographic segmentation in which

we encounter income part because of the current economic situations of Pakistan.

Our competitors cater behavioral segment and use differentiation strategy for those

peoples who concentrate on quality rather than price.

Because we made product on the basis of less price and high quality regarding

mileage therefore our focus strategy is most prominent because we us demographic segmentation.

Yes we can serve our product to those old age men’s who use bikes like vespa and

feel comfortable on their because the speed of that bike is not too much and they use it very comfortably there fore when they saw our bike which is fuel efficient and less price they will come toward our bike.

Review of Market segmentation

DIFFERENTIATION STRATEGY

Our product is different from the competitor product because of its low cost and its

attribute of high mileage. Our competitor like Honda and Yamaha use the

differentiation strategy by making high quality products which are long term useable.

If our customers have high brand loyalty for Sonica then them our new innovative

product will also be favorable for customers. But if customers do not have high

loyalty then our new product features will attract customers toward our product.

While our competitors Honda and Yamaha already have very high brand loyalty in

the minds of the customers because they gave continuously same quality products.

There will be a need to change the differentiation strategy when customers go toward

Honda rather than our innovative product then we introduced a 200cc bike for young

generation that is our back up plan.

PRODUCT STRATEGY

Yes, our product features of low price, high mileage and high quality bike is suitable

for our differentiation strategy positioning strategy. Because if it becomes successful it will create good image in the minds of the customers.

Our competitors like Honda, Yamaha and Suzuki gave high quality products on high

prices they gave no any extra features as compared to their prices As well they are not

Review of

differentiation and

positioning

Product strategy

giving stylish bikes to market and they are maintain their old design of bikes but they change only their mono on every year new model that’s the only difference that they create in new products.

Yes, every company should introduced new features into their products because

peoples wants new features every day and if company provide that features then peoples becomes loyal with them.

Yes the introduction of new traits in the new market is profitable because on that

place peoples does not knew about their product and want to knew about that by using it and if they feel good they will surely told to older segment peoples and company will encounter more customers. As I already told peoples need new look or attributes in the product if they get then they will become loyal as well when company change packaging then capture more customers intention.

Our launch plan will be different from our competitors because our competitors first

introduced new product into the market then market them but we firstly market our product and then provide to the customers. In the start we will place low price and then increase by looking demand of our product.

We can improve the quality of our product by giving after sale services for long time

and giving long term warranties.