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?