small business
Content
EXECUTIVE SUMMARY
Home appliances are very important component of our life and are necessary things in our homes, without home appliances it is very difficult to spend our lives. It was the time when people did not have the washing machines, fans, air coolers, air conditioners, microwave ovens, water coolers and heaters but time makes the inventions and necessities make the inventions. Now at this time it is very difficult to spend the life without these appliances. In Pakistan a large of industries like, Waves, Dawlance, Pell, Pak, and Nas Gas etc are providing and producing the home appliance. Super Asia is one of these industries. Super Asia is the heavy manufacturing industry of Gujranwala in Pakistan. Super Asia is producing and manufacturing a lot of home appliances like washing machines, fans, air conditioners, microwave oven, geysers and water coolers. And it has also introduced Super Asia motor cycle SA 70. Like all heavy industries Super Asia also have defined their visions and missions, it has its values and objectives which the company has to achieve. It has its branches in big cities of Pakistan like Gujranwala, Lahore, Karachi, Hyderabad, Multan, Faislabad and Rawalpindi. In Gujranwala the branch is situated in a very large area and has a large number of departments like manufacturing department, assembling department, tool shop, packing department and gowdowns. The offices for the management are separately situated in separate building. Finance department, human resources department, marketing department, purchase and sales departments are working in Super Asia. In chapter number 2, I did the different analysis of the industry like the SWOT analysis and PEST analysis. In SWOT analysis I have analyzed that how the weaknesses of the Super Asia can be overcome by using the strengths of the company. And how Super Asia can save itself from available opportunities. Super Asia have large number of
weaknesses like low usage of modern and advanced machinery, very low advertisement budget, there is over staff in the management etc. these are some of the weaknesses of the company but management can overcome these weaknesses by its strengths. In some areas company have the strengths like it is situated in the market, have a trust of customers. Super Asia is facing a big threat of its competitors. The company is affected by the political power and government, economy and due to the new and advanced technology. I also did the PEST analysis which is political, economic, social and technological analysis. Then in the third chapter of my internship report, I included my internship experience. I did the internship in the marketing department of Super Asia and got a lot of knowledge from my boss. My concerned department was marketing department whose manager was Sir Mustajab; he was a very skilled and knowledgeable person and had a lot of knowledge and experience of marketing. There was some sales person in the staff who was responsible for the orders and delivery of the products. All the decisions related to marketing and sales were taken by the marketing manager who was answerable to the general manager. My duties during the internship were assisting the marketing manager and do the survey of market about the sales of products of Super Asia. I did two surveys about the sales; one was sales of washing machines of Super Asia comparatively sales of other companies and the other was the sales of AC, air coolers, geysers and microwave oven of Super Asia comparatively other companies products. The things required for the marketing jobs are to look active, inspired personality and strong communication powers, and I learned some that how to communicate with the customers in the market. I want to become a marketing guru and the things required for becoming marketing gurus were available in the staff of the Super Asia. In the fourth chapter of my final project are the analyses which are related to the marketing. This is the work which I did by myself; first analysis which I did is related to the marketing strategies that which one strategy is applicable in the Super Asia. The second analysis is the Boston Consulting Group analysis. In this analysis I determine that from the four stages of BCG in which stage the products of Super Asia lie. And the last analysis is the product life cycle. All the products passed from all the stages of the life
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cycle, the products when produced are introduced in the market then their sales improved with the passage of time and the time comes when their sales reaches at maximum level. After some time the recession start and their sales start decreasing. These are three analyses which I did in this chapter. In the last, I give the conclusion about this final project and my internship in Super Asia. What are the things which I learned from this internship report and what are the skills and strategies which I should implement in my life and personality so that I can achieve my goals and objectives. At the end of this report I gave the references of all the data and information which I have included in this report. The references are given in APA format.
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TABLE OF CONTENTS
Introduction ……………………………………………………………………… History of Industry in World ….………………………………………………… History of Industry in Pakistan ………………………………………………….. History of Organization …………………………………………………………. Information about the Organization …………………………………………….. Vision, Mission ………………………………………… ………………………. Products / Services ………………………………………………………………. Organizational structure …………………………………………………………. SWOT analysis………………... ………………………………………………… PEST analysis………………… …………………………………………………. Internship experience ……………………………………………………………. Concerned department information ……………………………………………… Working experience (Duties / Responsibilities) …………………………………. Learning / Achievements ………………………………………………………… 7 8 12 13 14 14 15 17 21 24 28 28 29 30
Skills used and acquired ………………………………………………………….. 31 Marketing strategies ……………………………………………………………… 33 Boston consulting group …………………………………………………………. Product life cycle ………………………………………………………………… Conclusion ……………………………………………………………………….. 42 45 51
References ………………………………………………………………………... 52
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INTRODUCTION
Super Asia is engaged in producing top order home appliances in South Asia. Recognition of its achievements in quality products are manifested in the form of the ISO 9002 certification. The success tale spread well over 25 years when Super Asia produced the first washing machine of Pakistan. Later on Super Asia started producing room air coolers, gas and electric geysers. Keeping in view the requirements and purchasing power of all the segments of the society Super Asia has introduced different washing machines to meet their demands. Super Asia has the honor to produce complete plastic body washing machine for the first time in Pakistan. Another hallmark in quality products is introducing the double action washing technology through side and center Plaster. In Pakistan Super Asia has not only introduced a large range of Room Air Coolers in plastic body, but in different sizes and values as well. Super Asia in order to maintain its superiority in producing public utility products has introduced hot and cold, and only cold water dispenser. It was an instant success' due to its design, effectiveness and affordable price amongst the consumers. Similarly the complete range of super Asia fans is of international standard. There are different sizes, colors in Ceiling, Pedestal, Bracket, Circu-matic and Exhaust Fans. Research based products of Super Asia enjoyed a sense of superiority over similar products in the open market. The objective is, however, to offer consumers products of international quality at affordable price and this can be judge by the fact that they are being exported to Saudi Arabia, Dubai, Bangla Desh, Sri Lanka and Myanmar from the last so many years, and their demand is growing day by day. The success story of Super Asia is due to its chairman Haji Mohammad Yousaf while Managing Director Haji Muhammad Afzal looks after the production aspects of the factory. He has a critical approach towards the products and their prices offered by their competitors.
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1.1- History of Industry in world:
History of Washing Machine Industry: Ancient peoples cleaned their clothes by pounding them on rocks or rubbing them with abrasive sands; and washing the dirt away in local streams. Evidence of ancient washing soap was found at Sapo Hill in Rome, where the ashes containing the fat of sacrificial animals was used as soap. The earliest washing "machine" was the scrub board invented in 1797. American, James King patented the first washing machine to use a drum in 1851, the drum made King's machine resemble a modern machine, however it was still hand powered. In 1858, Hamilton Smith patented the rotary washing machine. In 1874, William Blackstone of Indiana built a birthday present for his wife. It was a machine which removed and washed away dirt from clothes. The first washing machines designed for convenient use in the home.
History of Organization:
It goes way back to 1968, when Mr. Mian Muhammad Din, the founder of Super Asia, offered its first ever product, Washing Machine, with manufacturing facilities at a small scale to the local community of Gujranwala, city of Punjab. It was about to change the lifestyle of that generation and was a struggle to facilitate the end user with automated technology. He was visionary to predict the pattern of growth in Home Appliances Industry across Pakistan. It took more than a decade of painstaking engineering work to build up the brand name, Super Asia, which had become the symbol of Quality, Durability, Innovation and Economy. Today, it is a conglomerate of companies with more than a dozen different products serving much sectors of society. The success tale spread well over 25 years when Super Asia produced
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the first washing machine of Pakistan. Later on Super Asia started producing room air coolers, gas and electric geysers. Super Asia in order to maintain its superiority in producing public utility products has introduced hot and cold, and only cold water dispenser. Similarly the complete range of super Asia fans is of international standard. There are different sizes, colors in Ceiling, Pedestal, Bracket, Circu-matic and Exhaust Fans.
1.4- Information about the Organization:
Every successful company and organization defines its visions and mission and makes the strategies and rules to achieve these missions and visions. To achieve these visions and missions the organizations and companies have to fulfill the objectives so that the long term visions and missions can be achieved. Same like that Super Asia also have defined its vision and mission which are quoted here.
VISION:
“To be the market leader in every of our products, Nationally and regionally” Our foremost aim is to think big, be the pace setter and modernizer. Since 1972, being the market leader in washing machines, we have concrete plans to replicate our best practices in every of our offerings, across the region. It is the VISION that every employee of the organization is clear about.
MISSION:
“To win the utmost satisfaction, trust and loyalty Of our valued customers” 7
Super Asia uses the best prevalent tools to win and maintain the satisfaction trust and loyalty of its valued customers. Quality, Delivery and Innovation are the core elements of our philosophy. Stake holders at every level strive to maintain the status quo of the company, to deliver the best. Continues struggle with commitment is technique to accomplish this MISSION.
PRODUCTS:
Super Asia offers a lot of home appliances for its valuable customers. Super Asia is a leading manufacturing company in Pakistan and is competing with foreign companies with its weapon of quality and customer satisfaction. Super Asia is the biggest home appliances producer in Gujranwala and offers leading home appliances. They offer with lot of home appliances which compete with all foreign products due to its fine quality, standards and customer satisfaction. Following are the products which Super Asia offers in the home appliances products:
Washing Machines with its large number of models
Best performance and electric economy with heavy-duty electric motors. Double strike bars for clean, bright and extraordinary washing. Ideal portable washers for large, medium and small families. Maintains its performance even on low voltage. Save time & detergent while brilliant washing.
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Microwave Oven
Defrost Setting. Painted Steel Cavity. Push Button Door. Painted steel cavity.
Air Conditioner New Wall Mounted Series. Built to the highest international standards. Ensuring maximum efficiency, performance and reliability.
Fans of all types and with large number of models Quiet operation. Specially designed blades. Even air throw & Revolving grill.
Room Air Coolers Ultra cool air and quite performance. For the first time in Pakistan introduce water proof pump. An efficient and energy saver cooling system. Water Dispensers New & easiest way to get hot & cold drinking water with water guard. New striking design. Low energy consumption. Easy to install Attractive low price. Electric Water Coolers Complete plastic front. Continue supply of cold water. Seasonal effects and rust proof. Completely tested. 9
Gas Water Heaters Very low consumption of energy. No chance of water leakage. Finished with imported powder coating. Available in various colors and sizes.
SERVICES:
To provide customer prompt, quality and reliable services at their doorstep Super Asia has a largest after sales service network through out the country. To take care of customer appliances all services centers have latest tools, equipments and machineries. We take care of our customers by remaining in contact with them so that they should not face any type of problem. After sales services team consists of Engineers and highly qualified staff with great professional approach due to this reason customer feels confident, once their appliances being maintained. Super Asia after sale service also provides the facility to customers of lifting their units from residence to service center and delivering them within 48 hours.
1.5- ORGANIZATIONAL STRUCTURE:
Super Asia is market leader in Washing Machine, Air Cooler and Geyser, till today, given the presence of numerous local and foreign brands in Pakistani Home Appliances Market. We stand for as top five in Fan industry and among the top ten manufactures of Motorcycles in Pakistan. Super Asia Spans following divisions:
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Home Appliances Division:
Chairman
Super Asia M. Din Sons Ltd.
Super Asia Trading Co.
Superior Electric Private Ltd
• • • • • • • •
Washing Machine Room Air Cooler Geyser Water Cooler Air Conditioner Water Dispensers Microwave Oven Fan Division Ceiling Fan Bracket Fan Exhaust Fan Pedestal Fan Table Fan
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Automotives and Automobiles Division:
Chairman
Super Asia Motors Private Ltd
S. T. High-Tech Private Ltd
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Motorcycles Rickshaw Rickshaw -
Spare parts of Motorcycles
Insulation Sheets Division: • Insulation Sheets
Super Asia Administration:
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Chairman Managing Director Director Finance
General Manager
Chief Executive Director HR General Manager Director Marketing General Manager
Director Production General Manager
Finance Department:
General Manger
Finance Manager
Accounts Manager
HR and Administration:
General Manager
Human Resources
Administration
-
Time Keeping Salaries & Wages
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Canteen Hospital
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Security Department:
Cleaning Building Maintained Area Maintained Legal Cases Trade Mark
Security Manager
Security Staff
Gate Keeper
Premises
Residences
Sales and Marketing Department:
Country Manager
Dealers
Sales Managers
Production Department: • • • • • • • • Tool Shop Molding Shop Die Maintenance Shop Sheet Shop Motor Body Shop Motor Winding Shop Assembly Fan Shop 14
Store Department: • • Store Procurement Store for Final Goods
COMPANY ANALYSIS
In chapter number two of my final project of internship I have done the analysis of Super Asia. Here I did two type of analysis; first one is SWOT analysis in which I examined the strengths, weakness, opportunities and threats faced by Super Asia. And second analysis in this chapter is PEST analysis which is about politics, economic, social and technological changes. First I did first SWOT analysis and then PEST analysis.
2.1- SWOT ANALYSIS:
SWOT stands for strengths, weaknesses, opportunities and threats. This is the analysis related to the strengths which Super Asia proudly have, weakness of Super Asia, opportunities which Super Asia can avail to prevent from the threats faced to the company and the weaknesses of the company. The reason to do this analysis is to find out that, what are the strengths of the company which can overcome the weaknesses of the company and to determine the opportunities which can company avail to prevent the threats to the company. I will individually examine the strengths, weaknesses, opportunities and the threats faced by Super Asia here. Strengths: The company has built up goodwill in the market of Pakistan, from a very long time.
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The company has the largest market share throughout the country in the Washing Machine industry. Brand name of Super Asia is known to almost every person in the country and is very famous in home appliances industry. The company deals in all sorts of home appliances, like Washing Machine, Spinners, Air Conditioners, Fans, Geysers, Water Dispensers, Room Air Coolers, Microwave Oven and Cooking Range. Super Asia is also the strategic partner of Procter & Gamble. The strategies of Super Asia are like Procter & Gamble. Continuous achievement of FPPCI exports Trophy. Super Asia is exporting its products to various regions across the globe mainly markets like Africa, Middle East and Asia. The company is having a number of old employees who are committed and loyal with the company. Super Asia retains its employees by offering benefits like old age benefits, disability benefits, disease benefits, medical facilities in the company hospital and advance pay etc. A large number of models are available in the range of every product of the company. The company has won the Merit Trophy 2004-2005 of Federation of Pakistan Chamber of Commerce & Industry presented by General Peres Musharraf to the Chief Executive of Super Asia. The company also has won the Merit Trophy 2005-2006 of Federation of Pakistan Chamber of Commerce & Industry presented Shaukat Aziz (Prime minister of the time) to the Managing Director of Super Asia. Weaknesses: Technical labor of the company has the negative views about the management of Super Asia.
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There is shortage of skilled labor in the company due to which the company has to face a large of competition. The advertisement budget of Super Asia is very short comparatively other brands in the market. Most of the managerial staff is not well educated. There is also a very weak point in the management which is overstaffing. There is overstaffing in the management. The salaries of management staff are very low due to which the well educated and experienced people does not come for the job in company. The management staff do not have direct link with their dealers (sellers of Super Asia’s products). The complaints department does not provide the proper services to the customers of the company. The company has not developed the proper promotional strategies for international markets. Dealers of the company complaints for the low profit margin in Super Asia’ products. Opportunities: Due to Government policy of low export duty, Super Asia has opportunities to increase their exports. Due to the strong financial position of the company, the management can use the latest technology in their products. They can use the brand name in the international market to increase their sales of Fans like their Washing Machines. As the company is financially very strong, so it can use electronic and print media to increase their sales. They should invest in the SBUs like Air Conditioner and Microwave Oven which have low market share and very low growth rate.
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Super Asia should appear in the international industrial exhibition. It is a big opportunity for the company to create the awareness of its brand in the international markets.
Threats: Chinese Technology is the very big threat to Super Asia. .Other competitors of Super Asia are offering the same products at relatively lower prices. A large number of new incoming companies are increasing the competition in the market. Stylo Washing Machine Company is investing a heavy budget in the promotion of their products. Current Power & Electricity crises are very big hurdle for the manufacturing unit of the company. Due to the shortage of electricity the company may be unable to meet the orders. The complaints in some particular SBUs, like Motorcycles is a big threat to the brand name of the company.
2.2- PEST ANALYSIS:
A scan of the external macro environment in which the firm operates can be expressed in the following factors; 1. Political 2. Economic 3. Social 18
4. Technological PEST analysis is used to describe a framework for the analysis of these macro environment factors. A PEST analysis fits into an overall environment scan as shown in following diagram
Environmental scan
Macro environment
Micro environment
PEST ANALYSIS Political Factors:
Pakistani government is somehow stable in these days and focusing on the foreign trade. Super Asia is taking advantage of this move by government and is trying to increase their exports. Government is providing opportunities to the companies to provide benefits like old-age benefits, disability benefits, pension, etc. These benefits are to be provided by every company under the supervision of Social Security Ordinance. Super Asia is also providing its employees the benefits of social security. Government has allowed the Puffery statements in advertisement but there should be truth in selling and deception statements are not allowed. The company has a trade mark and a trade name that gives the company an exclusive right by the government policies to use it and enter into contracts and dealings through its registered trade name.
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The company is bound to follow the workers safety regulations as laid down by the workers safety act. As the policy of government the minimum wage that should be given to a worker is 6000/= but Super Asia is not following that policy as other companies in the area are also not following it. All the tax related policies are being followed by Super Asia. The company also publishes its annual reports as are compulsory to publish by the government. Economic Factors: Super Asia plays an important role for economic growth by contributing to the economy of the country. The cost of production includes wages of workers, salaries to the staff, purchases, utilities, carriage inward and outward, etc. The company offers a variety of products for different classes of customers. For example, good quality and a bit expensive products for higher class and cheaper products for middle and lower class customers. Some SBUs like washing machine and fans are at their boom while others like motorcycle, oven, AC, etc are at their growth stage. It never happened that any one of Super Asia’s product went into its recession stage. The prices of products of Super Asia are higher than products of its competitors but still Super Asia has the largest market share due to the quality of its products. The exchange rate of the company is high due to which the customers have the confidence on Super Asia.
Social Factors:
The salaries and wages of the workers and management are not satisfactory so the income distribution factor is not satisfactory.
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Super Asia is funding many NGOs and welfare organizations in the whole country. Super Asia has the honor of being the first and only local home appliances company to sponsor an international cricket series. The company is running a hospital “Mian Muhammad Din Memorial Trust Hospital” for the welfare of its employees as well as the people of the near vicinities. The company is providing various types of home appliances which are helping in improving the life style of the people. The company is providing models in a variety of fashion which can be used differently at different places. Technological Factors:
The company is having a computerized lath machine which helps in reducing labor cost and time needed to produce a dye. Due to technological improvements many items are available at lower prices from China and Super Asia is taking full benefit from it. The manufacturing department also has different types of dyes for different models or shapes of washing machine and fan. A tool shop also operates within the factory premises, which manufactures its own tools to be used in production. Latest technology is being used by the company for motorcycle engine and air conditioner machinery. The company is also thinking of introducing a new swap machine that would note the attendance of each employee when one will swap his card into it. This machine will also provide the management with the statements showing the late minutes of each employee and the leaves in the month. The company has provided the computers to the staff members to eliminate the cost of stationery and to save the time.
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Different software are being used in every department for advertisement, employee data base, payroll and for the maintenance of accounts.
MARKETING ANALYSIS 4.1- Marketing Strategies:
The marketing logic by which the business unit hopes to achieve its marketing objectives. The strategic plans define the company’s overall mission and objectives. Marketing’s role and activities summarize the major activities involved in managing marketing strategy and the marketing mix. Next comes, marketing strategy-the marketing logic by which the company hopes to achieve these profitable relationships. Through market segmentation, targeting and the positioning, Super Asia decides which customers it will serve and how. It defines the total market, then divides it into smaller segments, and focuses on serving and satisfying customers in these segments. Two things come under the head of marketing strategies:
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1- Customer-Centered Marketing Strategy 2- Marketing Mix 1- Customer-Centered Marketing Strategy: In today’s competitive marketplace, companies’ needs to customer centered. They must win customers from competitors, then keep and grow them by delivering greater value. But before it can satisfy customers, a company must first understand their needs and wants. Thus, sound marketing requires a careful customer’s analysis. Super Asia knows that it cannot profitably serve all consumers in a given marketat least not all customers in the same way. There are too many kinds of customers with too many different kinds of needs. And most companies are in a position to serve some segments better than others. So Super Asia has divide up the total market, choose the best segments and design strategies for profitably serving chosen segments. This process involves three steps, which are: i. ii. iii. Market Segmentation Target Marketing Market Positioning
Now these are explained individually here: i. Market Segmentation: Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products and marketing mix. Rather than Super Asia offers the same marketing mix to vastly different customers, market segmentation makes it possible for Super Asia to tailor the marketing mix for specific target market, thus better satisfying the customer needs. Not all elements
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of marketing mix are necessarily changed from one segment to the next. For example, in some cases only the promotional campaigns would differ. A market segment should be: • • • • • Measurable Accessible by communication and distribution channels Different in its response to a marketing mix Durable (Not changing too quickly) Substantial enough to be profitable Super Asia has segmented by various bases, and industrial markets are segmented somewhat differently from consumer markets. A basis for segmentation is a factor that varies among groups within a market, but that is consistent within groups. Super Asia has segmented the market on the following bases: Geographic Segmentation: Geographically Super Asia segmented the world market as that, the company normally focuses on the Pakistani market for whole of its products. Pakistani market is the target segment of Super Asia. They make the segments of the whole world market and then decide to focus on one segment which is the Pakistani market. Demographic Segmentation: Super Asia divides the market for different products on different way. There are lot of segments of market on the bases of demography, like; on the bases of gender, age, education, occupation, income and family status. Super Asia has
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to choose the different segments for their different products. For every product of the company there is different segment. Psychographic Segmentation: On the bases of psychology the company has made the segment on the bases of lifestyle, values and attitude. There is different level of products for different status people. This segmentation based on the lifestyle and family status. Behavioral Segmentation: This segment of the company is based on the usage rate, brand loyalty, price sensitivity and benefits of the product. ii. Target Marketing: Target marketing involves breaking a market into segments and then concentrating your marketing efforts on one or more key segments. Target marketing can be the key to a small business’s success. The beauty of target marketing is that it makes the promotion, pricing and distribution of your products and/or services easier and more cost-effective. Target marketing provides a focus to all of your marketing activities. When Super Asia has defined the market segments, it can enter one or more segments of a given market. There are different market segment for the different products of Super Asia, and the company target individually on the different segment of the different products. Here I am showing the target market for different products of the company: Washing Machine, Spinners and Oven:
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Super Asia can make the promotional strategy for whole of the market, but in the advertisement and promotional strategies the company focuses on the housewives and women. So in these SBUs the target market of the company is the housewives and the women. And there are different models of these products for the different status people and having different lifestyles. The company makes the promotional strategy for the whole market of Pakistan. Air Conditioner, Fans, Geysers and Air Coolers: In this range of the SBUs the company’s target market are families of different status and lifestyle. Here the company makes the promotional strategies for whole of the family because these products are used by whole of the family members. Mainly the promotional strategies for these products are made for the urban areas.
Motorcycles: This product is only used by the men, so in this range of the product the company’s target market are men of the Pakistan. So they make the advertisement to attract only the men. iii. Market Positioning: Arranging for a product to occupy a clear, distinctive and desirable place relative to the competing products in the minds of the target consumers. Positioning is a perceptual location. It's where your product or service fits into the marketplace. Effective positioning puts you first in line in the minds of potential customers. Positioning is a powerful tool that allows you to create an image. And image is the outward representation of being who you want to be, doing what you want to do,
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and having what you want to have. Positioning yourself can lead to personal fulfillment. Being positioned by someone else restricts your choices and limits your opportunities. That's why it's so important for Super Asia to transform their passion into a market position. If the company doesn’t define its product or service, a competitor will do it for you. So the company’s position in the market place evolves from the defining characteristics of their product. The primary elements of positioning for Super Asia are: Pricing: The prices of the company are somewhat high due to which the people are converting to buy the competitors products. It is necessary for getting the positioning in the minds of the consumers to set the lower prices of the products than competitor’s products. Quality: Quality of the products matters a lot. If your product is satisfying the consumer quality wise then it is possible to get the higher sales. Some of the Super Asia’s products are quality wise very well due to which they earn a lot of the revenue for the company. The quality of Washing Machines of Super Asia is very satisfying to the customers due to which this SBU get very large revenue for the company. Service: They provide customer services due to which the consumers of home appliances purchase their products. The company provide after sale services which is a key factor of the large sales of Super Asia. Distribution: the products of the company are available all over the country because it is important that the products should be available to all the consumers. There are more than 1500 dealers of the company all over the country providing the products of Super Asia’s products to the consumers. Packaging: The beautiful packaging of the products attracts the consumers to buy the products. Here the company is also strong because their packaging is very well.
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2- Marketing Mix: The marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives. Consumers often call the marketing mix "the offering." Super Asia’s marketing mix also depends on these procedures. Your offer is controlled by the following variables often referred to as the four Ps in marketing: Product Price Place Promotion
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PRODUCT
PRICE
MARKETING MIX
PLACE
PROMOTION
Product: The product is physical product or service offered to the consumers. In the case of physical product, it also refers to any services or conveniences that are part of the offering. Product decisions include the aspects, such as function, appearances, packaging, service and warranty etc. All the products of Super Asia are the physical products, the company does not deal any service, but provide the after sales service repair services and home delivery services etc. the products decisions include the following factors: • • Variety Quality 29
• • • • •
Design Features Brand Name Packaging Services And Super Asia have included all these factors in their products, such as
there is a lot of variety in every product of the company, some of the products are quality wise very good, design and packaging of the products are very attractive and have different feature. The brand name of Super Asia is known to almost every person in the country and the company also provide after sale services, free repair services and home delivery services. Price: Price is the amount of money consumer has to pay to obtain the product. Pricing decision should take into account profit margins and the probable pricing responses of the competitors. Pricing not only include the pricing list, but also discounts, financing and other options such as leasing. In the pricing strategy Super Asia have included following things: • • • • • List Price Discounts Allowances Payment Period Credit Terms Super Asia has provided a list price of all its products to all of its dealers and asked them to provide the discounts to all the customers. The company gives different
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types of the allowances to all of its dealers and consumers like, prizes, discounts schemes etc. The company also deals with its dealers on the credit bases. Place: Place includes company activities that make the product available to the target consumers. Place decisions are those associated with the channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical and facilitating functions. Distributions decisions include market coverage, channel member selection, logistics and levels of service. Following things have included by Super Asia in the Places strategies: • • • • • • Channels Coverage Assortments Locations Inventory Transportation Super Asia uses its personal conveyance for the distribution of the products to place of selling. And these points of selling are approachable to all the consumers. Like Gujranwala there is proper electronics and home appliances market which is at the assessable place. In other cities these points of selling are easily approachable to all the customers. And the company provides a large inventory to all its dealers so that consumers can not face the difficulty of un-availability. Promotion: Promotion means activities that communicate the merits of the product and persuade target consumers to buy it. Promotions decisions are those related to
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communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decisions, it is useful to know the value of consumer in order to determine whether additional customers are worth the cost of acquiring them. Super Asia has taken the following steps for the promotional strategies: • • • • Advertising Personal Selling Sales Promotion Public Relation The budget for advertisement is low for the company products which is great threat for the company due to which the competitors are getting the advantage. Super Asia also does the promotion in some public welfare works. Company is funding to various NGOs and welfare organizations.
4.3- PRODUCT LIFE CYCLE:
A product’s life cycle can be divided into several stages characterized by the revenue generated by the product. If a curve is drawn showing product revenue over time, it may take one of many different shapes, an example of which is shown below:
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Development Stage:
The life cycle concept may apply to a brand or to a category of the product. Its duration may be as short as a few months for a fad items or a century or more for product categories. Product development is the incubation stage of the product life cycle. There are no sales and the firm prepares to introduce the product. As the product progresses through its life cycle, changes in the market mix usually are acquired in order to adjust to evolving challenges and opportunities. Introduction Stage: When the product is introduced, sales will be low until customers become aware of the product and its benefits. Some firms may announce their product before it is introduced, but such announcement also alert the competitors and remove the element of surprise. And Super Asia also uses this strategy that they announce the product before the introduction and their view about this thing is that customers become aware of the product before its introduction in the market. Advertising costs are typically high during this stage in order to rapidly increase the customer awareness of the product and to target to the early adopters. When Super Asia was introducing its Motorcycle they were advertising a large. During the introductory stage the firm is likely to incur additional costs associated with the initial distribution of the product. These higher costs
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coupled with a low sales volume usually make the introduction stage a period of negative profits. During the introduction stage, the primary goal is to establish a market and build primary demand for the product class. The following are some of the marketing mix implication of the introduction stage: Product: At this stage one or few products which are differentiated are introduced. Safe Line of Super Asia is at this stage. And somewhat Motorcycle is also at this stage. Price: Usually at this level the prices are high to cover the cost of the product. But sometimes low prices are set for the penetration in the market and gain the high market share. Super Asia usually uses the penetration strategy at this stage so that they can attain the high market share. Here the prices of Safe Line of the company are high.
Place: Distribution is selective at this stage and scattered as the firm commences implementation of the distribution plan. Promotion: Super Asia set a heavy budget at the introduction stage of the product for its advertisement. At this stage heavy advertisement is necessary.
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Growth Stage:
It is the stage of the product life cycle in which a product’s sales start climbing quickly. It is a period of rapid revenue growth, sales increases as more customers become aware of the product and its benefit and its additional market segments are targeted. Once the product has been proven a success and customers being asking for it, sales will increase further as more retailers become interested in carrying it. The marketing team may expand the distribution at this point. Motorcycle and Ovens of Super Asia are at this stage because their sales are increasing. When the competitors enter the market, often during the later part of the growth stage, there may be price competition and increased promotional costs in order to convince the consumers that the firm’s product is better than that of the competition. During the growth stage, the goal is to gain consumer preference and increase sales, the marketing mix may be modified as follows: Product: New product features and packaging options; improvement of product quality. Motorcycle, Fans, Water Dispensers and Air Coolers are at the growth stage. Their sales are improving. Price: Maintained at the high level if demand is high, or reduced to capture additional customers. Here the company reduced the prices so that more customers can attract towards Super Asia. Distribution/ Place: Distribution becomes more intensive; trade discounts are minimal if resellers show a strong interest in the product. The company is providing more inventory to its distributors.
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Promotion: Increase advertising to build brand preferences. The management is making strong promotional strategies for Motorcycles, Fans, Water Dispensers and Air Coolers.
Maturity Stage:
The stage in the product life cycle in which sales growth slows or level off, it is the most profitable stage while sales continue to increase in this stage, they do so at a slower pace. Because brand awareness is strong, advertising expenditure will be reduced. Competition may result in decrease market share and prices. Super Asia’s Washing Machines and Spinners are at the maturity stage and earning a lot of profit for the company and their advertisement cost is also very low. The competing products may be very similar at this point, increasing the difficulty of differentiating the product. There are lot of companies in the market, domestic and foreigners. The company is placing effort into encouraging competitor’s customers to switch, increasing usage per customers and converting the non-users into customers. Sales promotion may be effort to encourage retailers to give the product more shelf space over competing products. During the maturity stage, the primary goal is to maintain market share and extend the product life cycle. Marketing mix decision may include:
Product: Modifications are made and features are added in order to differentiate the product from competing products that may have been introduced. The Washing Machines and Spinners of the company are at maturity stage. Price: Possible price reductions in response to competition while avoiding a price war. Super Asia has set the prices of Washing Machines and Spinners at fare place.
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Place/ Distribution: New distribution channels and incentives to resellers in order to avoid losing shelf space. The company is distributing their products in a large and making the new dealers in the market. Promotion; Emphasis on differentiation and building of brand loyalty. Incentives to get the competitors’ customers to switch. The company is advertising a lot to attract the customers towards their products.
Decline Stage:
The product life cycle stage in which a product’s sales decline and market becomes saturated. The product becomes technologically obsolete or customer taste changes. If the product has developed brand loyalty, the profitability may be maintained longer. Such as the Washing Machines of Super Asia is making the profits a longer. Unit cost may increase with the declining production volumes and eventually no more profits can be made. During decline phase, the firm generally has three options: Maintain the product in hopes that competitors will exit, reduce costs and find new uses of for the product. Harvest it, reducing making support and coasting along until no profit can be made. Discontinue the product when no more profit can be made or there is successor product. The marketing mix may be modified as follows: Product: The number of products in product line may be reduced. Air Conditioners and Oven of the company are at decline position.
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Price: Prices may be lowered to liquidate the inventory of discontinued products. Prices may be maintained for continued products serving a niche market. The company has lowered the prices of Air Conditioners and Ovens to make some share in the market. Place/ Distribution: Distribution become more selective, channels that no longer are profitable are phased out. The distributions of these products of the company are very low. Promotion: Expenditures are lower and aimed at reinforcing the brand image for continued products. The company is making lower advertising for these products but they should enhance the budget of these products to increase the market share.
CONCLUSION
Organizations exist when two or more people work towards achieving common goals. An organization can never be better than the people it hires. Hence we have to get the best to be the best because the performance of the employees reflects the company’s image and standing in the market. Out of the three M’s i.e. Man, Money & Machine, probably the human dimension is of the utmost importance. Hiring employees is not the sole objective rather the primary goal is to devise a tool that can help the organization attract, maintain, retain and motivate them enough to give their best to the organization. Training and development is therefore the first step towards success. Better the quality of the employees better the performance of the company.
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An organization’s ability to meet the training and development challenges provides an opportunity to make significant contribution to the company. With better quality people executing the company’s operations the HR department can create a competitive advantage for the company. Here in the end I want to sum up my report of internship in Super Asia in few words. Again I would like to say thanks to Super Asia and it all employees for providing such supportive environment of learning. I must say that my 6 weeks internship experience in Super Asia was a great learning time and I believe that it will be very helpful for me in future career.
During my internship in Super Asia I had chance to practically use my knowledge and skills which I have gained during my study as well as I gained and experienced different new skills on the job. It also helped to learn about the manufacturing sector working in Pakistan, its procedures and products and services. Here in the report I have tried my best to give very informative and useful details regarding my internship in Super Asia and I believe that by reading this one would agree with me that gaining practical experience of what we learn in books is as important and useful as any other thing. I was fortunate enough to secure a position as an internee here and thereby able to do an in depth analysis of the working environment of this company from the inside and of the external environment
6.2 RECOMMENDATIONS
• I have realized that Super Asia is performing very well since sits inception. It is quite difficult to give suggestion to improve the working conditions of Super Asia MDS Ltd. As we know that nothing is perfect, there is always a room for improvement, so I have found during my internship can be made up taking into account the following suggestions. • Super Asia is also offering motorcycle with its brand name but during my internship period I came to know that there are a lot of complaints the company is 39
facing from its motorcycle department. So the organization must improve the quality of its motorcycle in order to maintain its goodwill. • The organization is also in process of computerizing its records which is good sign but it is going on with small progress. Computerization must be done on early basis. This will help in increasing efficiency of work done, customer’s satisfaction decreases the stationary cost and resultantly it will increase profits. • In past Super Asia MDS Limited has always being suffered from bad Government policies. Government intervention should avoid completely. • Employees Training programmer must be introduced on continuous basis so that Employees have understanding with the latest developments especially with the customers. • Super Asia should introduced incentive plans for employees on regular basis so that if employees may work whole heartedly for the welfare of their organization. While giving incentives qualification, work, experience, hard work and such other factors must be considered. • Mismanagement of resources must be avoided as much as possible as it decreases profit but also discourage hard worker and honest employees. • Fresh graduates must be recruited. As the combination of Experienced and fresh can produce better results and it will improve the efficiency of management. • Company’s different schemes must be conveyed to the targeted customers so that to increase the share in market.
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•
Management by objectives needs to be introduced immediately. It will help improve the functioning of the organization and will lead to greater participation and the workers and subordinates will be encouraged.
REFERENCES:
http://www.superasia.biz/about Google website manufacturing information Retrieved on December 30, 2008, en.wikipedia.org/wiki/manufacturing Google website methods of preparing report Retrieved on December 30, 2008, www.projects.ex.ac.uk/RDavies/arian/ http://www.quickmba.com/marketing/market-segmentation/ http://www.netmba.com/marketing/product/lifecycle/ http://tutor2u.net/business/strategy/bcg_box.htm
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Book Reference: Philip Kotler, Principles of Marketing, Prentice -Hall, 1980. Gary Armstrong joined as co-author in 1989
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Home appliances are very important component of our life and are necessary things in our homes, without home appliances it is very difficult to spend our lives. It was the time when people did not have the washing machines, fans, air coolers, air conditioners, microwave ovens, water coolers and heaters but time makes the inventions and necessities make the inventions. Now at this time it is very difficult to spend the life without these appliances. In Pakistan a large of industries like, Waves, Dawlance, Pell, Pak, and Nas Gas etc are providing and producing the home appliance. Super Asia is one of these industries. Super Asia is the heavy manufacturing industry of Gujranwala in Pakistan. Super Asia is producing and manufacturing a lot of home appliances like washing machines, fans, air conditioners, microwave oven, geysers and water coolers. And it has also introduced Super Asia motor cycle SA 70. Like all heavy industries Super Asia also have defined their visions and missions, it has its values and objectives which the company has to achieve. It has its branches in big cities of Pakistan like Gujranwala, Lahore, Karachi, Hyderabad, Multan, Faislabad and Rawalpindi. In Gujranwala the branch is situated in a very large area and has a large number of departments like manufacturing department, assembling department, tool shop, packing department and gowdowns. The offices for the management are separately situated in separate building. Finance department, human resources department, marketing department, purchase and sales departments are working in Super Asia. In chapter number 2, I did the different analysis of the industry like the SWOT analysis and PEST analysis. In SWOT analysis I have analyzed that how the weaknesses of the Super Asia can be overcome by using the strengths of the company. And how Super Asia can save itself from available opportunities. Super Asia have large number of
weaknesses like low usage of modern and advanced machinery, very low advertisement budget, there is over staff in the management etc. these are some of the weaknesses of the company but management can overcome these weaknesses by its strengths. In some areas company have the strengths like it is situated in the market, have a trust of customers. Super Asia is facing a big threat of its competitors. The company is affected by the political power and government, economy and due to the new and advanced technology. I also did the PEST analysis which is political, economic, social and technological analysis. Then in the third chapter of my internship report, I included my internship experience. I did the internship in the marketing department of Super Asia and got a lot of knowledge from my boss. My concerned department was marketing department whose manager was Sir Mustajab; he was a very skilled and knowledgeable person and had a lot of knowledge and experience of marketing. There was some sales person in the staff who was responsible for the orders and delivery of the products. All the decisions related to marketing and sales were taken by the marketing manager who was answerable to the general manager. My duties during the internship were assisting the marketing manager and do the survey of market about the sales of products of Super Asia. I did two surveys about the sales; one was sales of washing machines of Super Asia comparatively sales of other companies and the other was the sales of AC, air coolers, geysers and microwave oven of Super Asia comparatively other companies products. The things required for the marketing jobs are to look active, inspired personality and strong communication powers, and I learned some that how to communicate with the customers in the market. I want to become a marketing guru and the things required for becoming marketing gurus were available in the staff of the Super Asia. In the fourth chapter of my final project are the analyses which are related to the marketing. This is the work which I did by myself; first analysis which I did is related to the marketing strategies that which one strategy is applicable in the Super Asia. The second analysis is the Boston Consulting Group analysis. In this analysis I determine that from the four stages of BCG in which stage the products of Super Asia lie. And the last analysis is the product life cycle. All the products passed from all the stages of the life
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cycle, the products when produced are introduced in the market then their sales improved with the passage of time and the time comes when their sales reaches at maximum level. After some time the recession start and their sales start decreasing. These are three analyses which I did in this chapter. In the last, I give the conclusion about this final project and my internship in Super Asia. What are the things which I learned from this internship report and what are the skills and strategies which I should implement in my life and personality so that I can achieve my goals and objectives. At the end of this report I gave the references of all the data and information which I have included in this report. The references are given in APA format.
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TABLE OF CONTENTS
Introduction ……………………………………………………………………… History of Industry in World ….………………………………………………… History of Industry in Pakistan ………………………………………………….. History of Organization …………………………………………………………. Information about the Organization …………………………………………….. Vision, Mission ………………………………………… ………………………. Products / Services ………………………………………………………………. Organizational structure …………………………………………………………. SWOT analysis………………... ………………………………………………… PEST analysis………………… …………………………………………………. Internship experience ……………………………………………………………. Concerned department information ……………………………………………… Working experience (Duties / Responsibilities) …………………………………. Learning / Achievements ………………………………………………………… 7 8 12 13 14 14 15 17 21 24 28 28 29 30
Skills used and acquired ………………………………………………………….. 31 Marketing strategies ……………………………………………………………… 33 Boston consulting group …………………………………………………………. Product life cycle ………………………………………………………………… Conclusion ……………………………………………………………………….. 42 45 51
References ………………………………………………………………………... 52
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INTRODUCTION
Super Asia is engaged in producing top order home appliances in South Asia. Recognition of its achievements in quality products are manifested in the form of the ISO 9002 certification. The success tale spread well over 25 years when Super Asia produced the first washing machine of Pakistan. Later on Super Asia started producing room air coolers, gas and electric geysers. Keeping in view the requirements and purchasing power of all the segments of the society Super Asia has introduced different washing machines to meet their demands. Super Asia has the honor to produce complete plastic body washing machine for the first time in Pakistan. Another hallmark in quality products is introducing the double action washing technology through side and center Plaster. In Pakistan Super Asia has not only introduced a large range of Room Air Coolers in plastic body, but in different sizes and values as well. Super Asia in order to maintain its superiority in producing public utility products has introduced hot and cold, and only cold water dispenser. It was an instant success' due to its design, effectiveness and affordable price amongst the consumers. Similarly the complete range of super Asia fans is of international standard. There are different sizes, colors in Ceiling, Pedestal, Bracket, Circu-matic and Exhaust Fans. Research based products of Super Asia enjoyed a sense of superiority over similar products in the open market. The objective is, however, to offer consumers products of international quality at affordable price and this can be judge by the fact that they are being exported to Saudi Arabia, Dubai, Bangla Desh, Sri Lanka and Myanmar from the last so many years, and their demand is growing day by day. The success story of Super Asia is due to its chairman Haji Mohammad Yousaf while Managing Director Haji Muhammad Afzal looks after the production aspects of the factory. He has a critical approach towards the products and their prices offered by their competitors.
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1.1- History of Industry in world:
History of Washing Machine Industry: Ancient peoples cleaned their clothes by pounding them on rocks or rubbing them with abrasive sands; and washing the dirt away in local streams. Evidence of ancient washing soap was found at Sapo Hill in Rome, where the ashes containing the fat of sacrificial animals was used as soap. The earliest washing "machine" was the scrub board invented in 1797. American, James King patented the first washing machine to use a drum in 1851, the drum made King's machine resemble a modern machine, however it was still hand powered. In 1858, Hamilton Smith patented the rotary washing machine. In 1874, William Blackstone of Indiana built a birthday present for his wife. It was a machine which removed and washed away dirt from clothes. The first washing machines designed for convenient use in the home.
History of Organization:
It goes way back to 1968, when Mr. Mian Muhammad Din, the founder of Super Asia, offered its first ever product, Washing Machine, with manufacturing facilities at a small scale to the local community of Gujranwala, city of Punjab. It was about to change the lifestyle of that generation and was a struggle to facilitate the end user with automated technology. He was visionary to predict the pattern of growth in Home Appliances Industry across Pakistan. It took more than a decade of painstaking engineering work to build up the brand name, Super Asia, which had become the symbol of Quality, Durability, Innovation and Economy. Today, it is a conglomerate of companies with more than a dozen different products serving much sectors of society. The success tale spread well over 25 years when Super Asia produced
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the first washing machine of Pakistan. Later on Super Asia started producing room air coolers, gas and electric geysers. Super Asia in order to maintain its superiority in producing public utility products has introduced hot and cold, and only cold water dispenser. Similarly the complete range of super Asia fans is of international standard. There are different sizes, colors in Ceiling, Pedestal, Bracket, Circu-matic and Exhaust Fans.
1.4- Information about the Organization:
Every successful company and organization defines its visions and mission and makes the strategies and rules to achieve these missions and visions. To achieve these visions and missions the organizations and companies have to fulfill the objectives so that the long term visions and missions can be achieved. Same like that Super Asia also have defined its vision and mission which are quoted here.
VISION:
“To be the market leader in every of our products, Nationally and regionally” Our foremost aim is to think big, be the pace setter and modernizer. Since 1972, being the market leader in washing machines, we have concrete plans to replicate our best practices in every of our offerings, across the region. It is the VISION that every employee of the organization is clear about.
MISSION:
“To win the utmost satisfaction, trust and loyalty Of our valued customers” 7
Super Asia uses the best prevalent tools to win and maintain the satisfaction trust and loyalty of its valued customers. Quality, Delivery and Innovation are the core elements of our philosophy. Stake holders at every level strive to maintain the status quo of the company, to deliver the best. Continues struggle with commitment is technique to accomplish this MISSION.
PRODUCTS:
Super Asia offers a lot of home appliances for its valuable customers. Super Asia is a leading manufacturing company in Pakistan and is competing with foreign companies with its weapon of quality and customer satisfaction. Super Asia is the biggest home appliances producer in Gujranwala and offers leading home appliances. They offer with lot of home appliances which compete with all foreign products due to its fine quality, standards and customer satisfaction. Following are the products which Super Asia offers in the home appliances products:
Washing Machines with its large number of models
Best performance and electric economy with heavy-duty electric motors. Double strike bars for clean, bright and extraordinary washing. Ideal portable washers for large, medium and small families. Maintains its performance even on low voltage. Save time & detergent while brilliant washing.
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Microwave Oven
Defrost Setting. Painted Steel Cavity. Push Button Door. Painted steel cavity.
Air Conditioner New Wall Mounted Series. Built to the highest international standards. Ensuring maximum efficiency, performance and reliability.
Fans of all types and with large number of models Quiet operation. Specially designed blades. Even air throw & Revolving grill.
Room Air Coolers Ultra cool air and quite performance. For the first time in Pakistan introduce water proof pump. An efficient and energy saver cooling system. Water Dispensers New & easiest way to get hot & cold drinking water with water guard. New striking design. Low energy consumption. Easy to install Attractive low price. Electric Water Coolers Complete plastic front. Continue supply of cold water. Seasonal effects and rust proof. Completely tested. 9
Gas Water Heaters Very low consumption of energy. No chance of water leakage. Finished with imported powder coating. Available in various colors and sizes.
SERVICES:
To provide customer prompt, quality and reliable services at their doorstep Super Asia has a largest after sales service network through out the country. To take care of customer appliances all services centers have latest tools, equipments and machineries. We take care of our customers by remaining in contact with them so that they should not face any type of problem. After sales services team consists of Engineers and highly qualified staff with great professional approach due to this reason customer feels confident, once their appliances being maintained. Super Asia after sale service also provides the facility to customers of lifting their units from residence to service center and delivering them within 48 hours.
1.5- ORGANIZATIONAL STRUCTURE:
Super Asia is market leader in Washing Machine, Air Cooler and Geyser, till today, given the presence of numerous local and foreign brands in Pakistani Home Appliances Market. We stand for as top five in Fan industry and among the top ten manufactures of Motorcycles in Pakistan. Super Asia Spans following divisions:
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Home Appliances Division:
Chairman
Super Asia M. Din Sons Ltd.
Super Asia Trading Co.
Superior Electric Private Ltd
• • • • • • • •
Washing Machine Room Air Cooler Geyser Water Cooler Air Conditioner Water Dispensers Microwave Oven Fan Division Ceiling Fan Bracket Fan Exhaust Fan Pedestal Fan Table Fan
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Automotives and Automobiles Division:
Chairman
Super Asia Motors Private Ltd
S. T. High-Tech Private Ltd
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Motorcycles Rickshaw Rickshaw -
Spare parts of Motorcycles
Insulation Sheets Division: • Insulation Sheets
Super Asia Administration:
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Chairman Managing Director Director Finance
General Manager
Chief Executive Director HR General Manager Director Marketing General Manager
Director Production General Manager
Finance Department:
General Manger
Finance Manager
Accounts Manager
HR and Administration:
General Manager
Human Resources
Administration
-
Time Keeping Salaries & Wages
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Canteen Hospital
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Security Department:
Cleaning Building Maintained Area Maintained Legal Cases Trade Mark
Security Manager
Security Staff
Gate Keeper
Premises
Residences
Sales and Marketing Department:
Country Manager
Dealers
Sales Managers
Production Department: • • • • • • • • Tool Shop Molding Shop Die Maintenance Shop Sheet Shop Motor Body Shop Motor Winding Shop Assembly Fan Shop 14
Store Department: • • Store Procurement Store for Final Goods
COMPANY ANALYSIS
In chapter number two of my final project of internship I have done the analysis of Super Asia. Here I did two type of analysis; first one is SWOT analysis in which I examined the strengths, weakness, opportunities and threats faced by Super Asia. And second analysis in this chapter is PEST analysis which is about politics, economic, social and technological changes. First I did first SWOT analysis and then PEST analysis.
2.1- SWOT ANALYSIS:
SWOT stands for strengths, weaknesses, opportunities and threats. This is the analysis related to the strengths which Super Asia proudly have, weakness of Super Asia, opportunities which Super Asia can avail to prevent from the threats faced to the company and the weaknesses of the company. The reason to do this analysis is to find out that, what are the strengths of the company which can overcome the weaknesses of the company and to determine the opportunities which can company avail to prevent the threats to the company. I will individually examine the strengths, weaknesses, opportunities and the threats faced by Super Asia here. Strengths: The company has built up goodwill in the market of Pakistan, from a very long time.
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The company has the largest market share throughout the country in the Washing Machine industry. Brand name of Super Asia is known to almost every person in the country and is very famous in home appliances industry. The company deals in all sorts of home appliances, like Washing Machine, Spinners, Air Conditioners, Fans, Geysers, Water Dispensers, Room Air Coolers, Microwave Oven and Cooking Range. Super Asia is also the strategic partner of Procter & Gamble. The strategies of Super Asia are like Procter & Gamble. Continuous achievement of FPPCI exports Trophy. Super Asia is exporting its products to various regions across the globe mainly markets like Africa, Middle East and Asia. The company is having a number of old employees who are committed and loyal with the company. Super Asia retains its employees by offering benefits like old age benefits, disability benefits, disease benefits, medical facilities in the company hospital and advance pay etc. A large number of models are available in the range of every product of the company. The company has won the Merit Trophy 2004-2005 of Federation of Pakistan Chamber of Commerce & Industry presented by General Peres Musharraf to the Chief Executive of Super Asia. The company also has won the Merit Trophy 2005-2006 of Federation of Pakistan Chamber of Commerce & Industry presented Shaukat Aziz (Prime minister of the time) to the Managing Director of Super Asia. Weaknesses: Technical labor of the company has the negative views about the management of Super Asia.
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There is shortage of skilled labor in the company due to which the company has to face a large of competition. The advertisement budget of Super Asia is very short comparatively other brands in the market. Most of the managerial staff is not well educated. There is also a very weak point in the management which is overstaffing. There is overstaffing in the management. The salaries of management staff are very low due to which the well educated and experienced people does not come for the job in company. The management staff do not have direct link with their dealers (sellers of Super Asia’s products). The complaints department does not provide the proper services to the customers of the company. The company has not developed the proper promotional strategies for international markets. Dealers of the company complaints for the low profit margin in Super Asia’ products. Opportunities: Due to Government policy of low export duty, Super Asia has opportunities to increase their exports. Due to the strong financial position of the company, the management can use the latest technology in their products. They can use the brand name in the international market to increase their sales of Fans like their Washing Machines. As the company is financially very strong, so it can use electronic and print media to increase their sales. They should invest in the SBUs like Air Conditioner and Microwave Oven which have low market share and very low growth rate.
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Super Asia should appear in the international industrial exhibition. It is a big opportunity for the company to create the awareness of its brand in the international markets.
Threats: Chinese Technology is the very big threat to Super Asia. .Other competitors of Super Asia are offering the same products at relatively lower prices. A large number of new incoming companies are increasing the competition in the market. Stylo Washing Machine Company is investing a heavy budget in the promotion of their products. Current Power & Electricity crises are very big hurdle for the manufacturing unit of the company. Due to the shortage of electricity the company may be unable to meet the orders. The complaints in some particular SBUs, like Motorcycles is a big threat to the brand name of the company.
2.2- PEST ANALYSIS:
A scan of the external macro environment in which the firm operates can be expressed in the following factors; 1. Political 2. Economic 3. Social 18
4. Technological PEST analysis is used to describe a framework for the analysis of these macro environment factors. A PEST analysis fits into an overall environment scan as shown in following diagram
Environmental scan
Macro environment
Micro environment
PEST ANALYSIS Political Factors:
Pakistani government is somehow stable in these days and focusing on the foreign trade. Super Asia is taking advantage of this move by government and is trying to increase their exports. Government is providing opportunities to the companies to provide benefits like old-age benefits, disability benefits, pension, etc. These benefits are to be provided by every company under the supervision of Social Security Ordinance. Super Asia is also providing its employees the benefits of social security. Government has allowed the Puffery statements in advertisement but there should be truth in selling and deception statements are not allowed. The company has a trade mark and a trade name that gives the company an exclusive right by the government policies to use it and enter into contracts and dealings through its registered trade name.
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The company is bound to follow the workers safety regulations as laid down by the workers safety act. As the policy of government the minimum wage that should be given to a worker is 6000/= but Super Asia is not following that policy as other companies in the area are also not following it. All the tax related policies are being followed by Super Asia. The company also publishes its annual reports as are compulsory to publish by the government. Economic Factors: Super Asia plays an important role for economic growth by contributing to the economy of the country. The cost of production includes wages of workers, salaries to the staff, purchases, utilities, carriage inward and outward, etc. The company offers a variety of products for different classes of customers. For example, good quality and a bit expensive products for higher class and cheaper products for middle and lower class customers. Some SBUs like washing machine and fans are at their boom while others like motorcycle, oven, AC, etc are at their growth stage. It never happened that any one of Super Asia’s product went into its recession stage. The prices of products of Super Asia are higher than products of its competitors but still Super Asia has the largest market share due to the quality of its products. The exchange rate of the company is high due to which the customers have the confidence on Super Asia.
Social Factors:
The salaries and wages of the workers and management are not satisfactory so the income distribution factor is not satisfactory.
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Super Asia is funding many NGOs and welfare organizations in the whole country. Super Asia has the honor of being the first and only local home appliances company to sponsor an international cricket series. The company is running a hospital “Mian Muhammad Din Memorial Trust Hospital” for the welfare of its employees as well as the people of the near vicinities. The company is providing various types of home appliances which are helping in improving the life style of the people. The company is providing models in a variety of fashion which can be used differently at different places. Technological Factors:
The company is having a computerized lath machine which helps in reducing labor cost and time needed to produce a dye. Due to technological improvements many items are available at lower prices from China and Super Asia is taking full benefit from it. The manufacturing department also has different types of dyes for different models or shapes of washing machine and fan. A tool shop also operates within the factory premises, which manufactures its own tools to be used in production. Latest technology is being used by the company for motorcycle engine and air conditioner machinery. The company is also thinking of introducing a new swap machine that would note the attendance of each employee when one will swap his card into it. This machine will also provide the management with the statements showing the late minutes of each employee and the leaves in the month. The company has provided the computers to the staff members to eliminate the cost of stationery and to save the time.
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Different software are being used in every department for advertisement, employee data base, payroll and for the maintenance of accounts.
MARKETING ANALYSIS 4.1- Marketing Strategies:
The marketing logic by which the business unit hopes to achieve its marketing objectives. The strategic plans define the company’s overall mission and objectives. Marketing’s role and activities summarize the major activities involved in managing marketing strategy and the marketing mix. Next comes, marketing strategy-the marketing logic by which the company hopes to achieve these profitable relationships. Through market segmentation, targeting and the positioning, Super Asia decides which customers it will serve and how. It defines the total market, then divides it into smaller segments, and focuses on serving and satisfying customers in these segments. Two things come under the head of marketing strategies:
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1- Customer-Centered Marketing Strategy 2- Marketing Mix 1- Customer-Centered Marketing Strategy: In today’s competitive marketplace, companies’ needs to customer centered. They must win customers from competitors, then keep and grow them by delivering greater value. But before it can satisfy customers, a company must first understand their needs and wants. Thus, sound marketing requires a careful customer’s analysis. Super Asia knows that it cannot profitably serve all consumers in a given marketat least not all customers in the same way. There are too many kinds of customers with too many different kinds of needs. And most companies are in a position to serve some segments better than others. So Super Asia has divide up the total market, choose the best segments and design strategies for profitably serving chosen segments. This process involves three steps, which are: i. ii. iii. Market Segmentation Target Marketing Market Positioning
Now these are explained individually here: i. Market Segmentation: Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products and marketing mix. Rather than Super Asia offers the same marketing mix to vastly different customers, market segmentation makes it possible for Super Asia to tailor the marketing mix for specific target market, thus better satisfying the customer needs. Not all elements
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of marketing mix are necessarily changed from one segment to the next. For example, in some cases only the promotional campaigns would differ. A market segment should be: • • • • • Measurable Accessible by communication and distribution channels Different in its response to a marketing mix Durable (Not changing too quickly) Substantial enough to be profitable Super Asia has segmented by various bases, and industrial markets are segmented somewhat differently from consumer markets. A basis for segmentation is a factor that varies among groups within a market, but that is consistent within groups. Super Asia has segmented the market on the following bases: Geographic Segmentation: Geographically Super Asia segmented the world market as that, the company normally focuses on the Pakistani market for whole of its products. Pakistani market is the target segment of Super Asia. They make the segments of the whole world market and then decide to focus on one segment which is the Pakistani market. Demographic Segmentation: Super Asia divides the market for different products on different way. There are lot of segments of market on the bases of demography, like; on the bases of gender, age, education, occupation, income and family status. Super Asia has
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to choose the different segments for their different products. For every product of the company there is different segment. Psychographic Segmentation: On the bases of psychology the company has made the segment on the bases of lifestyle, values and attitude. There is different level of products for different status people. This segmentation based on the lifestyle and family status. Behavioral Segmentation: This segment of the company is based on the usage rate, brand loyalty, price sensitivity and benefits of the product. ii. Target Marketing: Target marketing involves breaking a market into segments and then concentrating your marketing efforts on one or more key segments. Target marketing can be the key to a small business’s success. The beauty of target marketing is that it makes the promotion, pricing and distribution of your products and/or services easier and more cost-effective. Target marketing provides a focus to all of your marketing activities. When Super Asia has defined the market segments, it can enter one or more segments of a given market. There are different market segment for the different products of Super Asia, and the company target individually on the different segment of the different products. Here I am showing the target market for different products of the company: Washing Machine, Spinners and Oven:
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Super Asia can make the promotional strategy for whole of the market, but in the advertisement and promotional strategies the company focuses on the housewives and women. So in these SBUs the target market of the company is the housewives and the women. And there are different models of these products for the different status people and having different lifestyles. The company makes the promotional strategy for the whole market of Pakistan. Air Conditioner, Fans, Geysers and Air Coolers: In this range of the SBUs the company’s target market are families of different status and lifestyle. Here the company makes the promotional strategies for whole of the family because these products are used by whole of the family members. Mainly the promotional strategies for these products are made for the urban areas.
Motorcycles: This product is only used by the men, so in this range of the product the company’s target market are men of the Pakistan. So they make the advertisement to attract only the men. iii. Market Positioning: Arranging for a product to occupy a clear, distinctive and desirable place relative to the competing products in the minds of the target consumers. Positioning is a perceptual location. It's where your product or service fits into the marketplace. Effective positioning puts you first in line in the minds of potential customers. Positioning is a powerful tool that allows you to create an image. And image is the outward representation of being who you want to be, doing what you want to do,
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and having what you want to have. Positioning yourself can lead to personal fulfillment. Being positioned by someone else restricts your choices and limits your opportunities. That's why it's so important for Super Asia to transform their passion into a market position. If the company doesn’t define its product or service, a competitor will do it for you. So the company’s position in the market place evolves from the defining characteristics of their product. The primary elements of positioning for Super Asia are: Pricing: The prices of the company are somewhat high due to which the people are converting to buy the competitors products. It is necessary for getting the positioning in the minds of the consumers to set the lower prices of the products than competitor’s products. Quality: Quality of the products matters a lot. If your product is satisfying the consumer quality wise then it is possible to get the higher sales. Some of the Super Asia’s products are quality wise very well due to which they earn a lot of the revenue for the company. The quality of Washing Machines of Super Asia is very satisfying to the customers due to which this SBU get very large revenue for the company. Service: They provide customer services due to which the consumers of home appliances purchase their products. The company provide after sale services which is a key factor of the large sales of Super Asia. Distribution: the products of the company are available all over the country because it is important that the products should be available to all the consumers. There are more than 1500 dealers of the company all over the country providing the products of Super Asia’s products to the consumers. Packaging: The beautiful packaging of the products attracts the consumers to buy the products. Here the company is also strong because their packaging is very well.
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2- Marketing Mix: The marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives. Consumers often call the marketing mix "the offering." Super Asia’s marketing mix also depends on these procedures. Your offer is controlled by the following variables often referred to as the four Ps in marketing: Product Price Place Promotion
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PRODUCT
PRICE
MARKETING MIX
PLACE
PROMOTION
Product: The product is physical product or service offered to the consumers. In the case of physical product, it also refers to any services or conveniences that are part of the offering. Product decisions include the aspects, such as function, appearances, packaging, service and warranty etc. All the products of Super Asia are the physical products, the company does not deal any service, but provide the after sales service repair services and home delivery services etc. the products decisions include the following factors: • • Variety Quality 29
• • • • •
Design Features Brand Name Packaging Services And Super Asia have included all these factors in their products, such as
there is a lot of variety in every product of the company, some of the products are quality wise very good, design and packaging of the products are very attractive and have different feature. The brand name of Super Asia is known to almost every person in the country and the company also provide after sale services, free repair services and home delivery services. Price: Price is the amount of money consumer has to pay to obtain the product. Pricing decision should take into account profit margins and the probable pricing responses of the competitors. Pricing not only include the pricing list, but also discounts, financing and other options such as leasing. In the pricing strategy Super Asia have included following things: • • • • • List Price Discounts Allowances Payment Period Credit Terms Super Asia has provided a list price of all its products to all of its dealers and asked them to provide the discounts to all the customers. The company gives different
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types of the allowances to all of its dealers and consumers like, prizes, discounts schemes etc. The company also deals with its dealers on the credit bases. Place: Place includes company activities that make the product available to the target consumers. Place decisions are those associated with the channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical and facilitating functions. Distributions decisions include market coverage, channel member selection, logistics and levels of service. Following things have included by Super Asia in the Places strategies: • • • • • • Channels Coverage Assortments Locations Inventory Transportation Super Asia uses its personal conveyance for the distribution of the products to place of selling. And these points of selling are approachable to all the consumers. Like Gujranwala there is proper electronics and home appliances market which is at the assessable place. In other cities these points of selling are easily approachable to all the customers. And the company provides a large inventory to all its dealers so that consumers can not face the difficulty of un-availability. Promotion: Promotion means activities that communicate the merits of the product and persuade target consumers to buy it. Promotions decisions are those related to
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communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decisions, it is useful to know the value of consumer in order to determine whether additional customers are worth the cost of acquiring them. Super Asia has taken the following steps for the promotional strategies: • • • • Advertising Personal Selling Sales Promotion Public Relation The budget for advertisement is low for the company products which is great threat for the company due to which the competitors are getting the advantage. Super Asia also does the promotion in some public welfare works. Company is funding to various NGOs and welfare organizations.
4.3- PRODUCT LIFE CYCLE:
A product’s life cycle can be divided into several stages characterized by the revenue generated by the product. If a curve is drawn showing product revenue over time, it may take one of many different shapes, an example of which is shown below:
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Development Stage:
The life cycle concept may apply to a brand or to a category of the product. Its duration may be as short as a few months for a fad items or a century or more for product categories. Product development is the incubation stage of the product life cycle. There are no sales and the firm prepares to introduce the product. As the product progresses through its life cycle, changes in the market mix usually are acquired in order to adjust to evolving challenges and opportunities. Introduction Stage: When the product is introduced, sales will be low until customers become aware of the product and its benefits. Some firms may announce their product before it is introduced, but such announcement also alert the competitors and remove the element of surprise. And Super Asia also uses this strategy that they announce the product before the introduction and their view about this thing is that customers become aware of the product before its introduction in the market. Advertising costs are typically high during this stage in order to rapidly increase the customer awareness of the product and to target to the early adopters. When Super Asia was introducing its Motorcycle they were advertising a large. During the introductory stage the firm is likely to incur additional costs associated with the initial distribution of the product. These higher costs
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coupled with a low sales volume usually make the introduction stage a period of negative profits. During the introduction stage, the primary goal is to establish a market and build primary demand for the product class. The following are some of the marketing mix implication of the introduction stage: Product: At this stage one or few products which are differentiated are introduced. Safe Line of Super Asia is at this stage. And somewhat Motorcycle is also at this stage. Price: Usually at this level the prices are high to cover the cost of the product. But sometimes low prices are set for the penetration in the market and gain the high market share. Super Asia usually uses the penetration strategy at this stage so that they can attain the high market share. Here the prices of Safe Line of the company are high.
Place: Distribution is selective at this stage and scattered as the firm commences implementation of the distribution plan. Promotion: Super Asia set a heavy budget at the introduction stage of the product for its advertisement. At this stage heavy advertisement is necessary.
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Growth Stage:
It is the stage of the product life cycle in which a product’s sales start climbing quickly. It is a period of rapid revenue growth, sales increases as more customers become aware of the product and its benefit and its additional market segments are targeted. Once the product has been proven a success and customers being asking for it, sales will increase further as more retailers become interested in carrying it. The marketing team may expand the distribution at this point. Motorcycle and Ovens of Super Asia are at this stage because their sales are increasing. When the competitors enter the market, often during the later part of the growth stage, there may be price competition and increased promotional costs in order to convince the consumers that the firm’s product is better than that of the competition. During the growth stage, the goal is to gain consumer preference and increase sales, the marketing mix may be modified as follows: Product: New product features and packaging options; improvement of product quality. Motorcycle, Fans, Water Dispensers and Air Coolers are at the growth stage. Their sales are improving. Price: Maintained at the high level if demand is high, or reduced to capture additional customers. Here the company reduced the prices so that more customers can attract towards Super Asia. Distribution/ Place: Distribution becomes more intensive; trade discounts are minimal if resellers show a strong interest in the product. The company is providing more inventory to its distributors.
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Promotion: Increase advertising to build brand preferences. The management is making strong promotional strategies for Motorcycles, Fans, Water Dispensers and Air Coolers.
Maturity Stage:
The stage in the product life cycle in which sales growth slows or level off, it is the most profitable stage while sales continue to increase in this stage, they do so at a slower pace. Because brand awareness is strong, advertising expenditure will be reduced. Competition may result in decrease market share and prices. Super Asia’s Washing Machines and Spinners are at the maturity stage and earning a lot of profit for the company and their advertisement cost is also very low. The competing products may be very similar at this point, increasing the difficulty of differentiating the product. There are lot of companies in the market, domestic and foreigners. The company is placing effort into encouraging competitor’s customers to switch, increasing usage per customers and converting the non-users into customers. Sales promotion may be effort to encourage retailers to give the product more shelf space over competing products. During the maturity stage, the primary goal is to maintain market share and extend the product life cycle. Marketing mix decision may include:
Product: Modifications are made and features are added in order to differentiate the product from competing products that may have been introduced. The Washing Machines and Spinners of the company are at maturity stage. Price: Possible price reductions in response to competition while avoiding a price war. Super Asia has set the prices of Washing Machines and Spinners at fare place.
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Place/ Distribution: New distribution channels and incentives to resellers in order to avoid losing shelf space. The company is distributing their products in a large and making the new dealers in the market. Promotion; Emphasis on differentiation and building of brand loyalty. Incentives to get the competitors’ customers to switch. The company is advertising a lot to attract the customers towards their products.
Decline Stage:
The product life cycle stage in which a product’s sales decline and market becomes saturated. The product becomes technologically obsolete or customer taste changes. If the product has developed brand loyalty, the profitability may be maintained longer. Such as the Washing Machines of Super Asia is making the profits a longer. Unit cost may increase with the declining production volumes and eventually no more profits can be made. During decline phase, the firm generally has three options: Maintain the product in hopes that competitors will exit, reduce costs and find new uses of for the product. Harvest it, reducing making support and coasting along until no profit can be made. Discontinue the product when no more profit can be made or there is successor product. The marketing mix may be modified as follows: Product: The number of products in product line may be reduced. Air Conditioners and Oven of the company are at decline position.
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Price: Prices may be lowered to liquidate the inventory of discontinued products. Prices may be maintained for continued products serving a niche market. The company has lowered the prices of Air Conditioners and Ovens to make some share in the market. Place/ Distribution: Distribution become more selective, channels that no longer are profitable are phased out. The distributions of these products of the company are very low. Promotion: Expenditures are lower and aimed at reinforcing the brand image for continued products. The company is making lower advertising for these products but they should enhance the budget of these products to increase the market share.
CONCLUSION
Organizations exist when two or more people work towards achieving common goals. An organization can never be better than the people it hires. Hence we have to get the best to be the best because the performance of the employees reflects the company’s image and standing in the market. Out of the three M’s i.e. Man, Money & Machine, probably the human dimension is of the utmost importance. Hiring employees is not the sole objective rather the primary goal is to devise a tool that can help the organization attract, maintain, retain and motivate them enough to give their best to the organization. Training and development is therefore the first step towards success. Better the quality of the employees better the performance of the company.
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An organization’s ability to meet the training and development challenges provides an opportunity to make significant contribution to the company. With better quality people executing the company’s operations the HR department can create a competitive advantage for the company. Here in the end I want to sum up my report of internship in Super Asia in few words. Again I would like to say thanks to Super Asia and it all employees for providing such supportive environment of learning. I must say that my 6 weeks internship experience in Super Asia was a great learning time and I believe that it will be very helpful for me in future career.
During my internship in Super Asia I had chance to practically use my knowledge and skills which I have gained during my study as well as I gained and experienced different new skills on the job. It also helped to learn about the manufacturing sector working in Pakistan, its procedures and products and services. Here in the report I have tried my best to give very informative and useful details regarding my internship in Super Asia and I believe that by reading this one would agree with me that gaining practical experience of what we learn in books is as important and useful as any other thing. I was fortunate enough to secure a position as an internee here and thereby able to do an in depth analysis of the working environment of this company from the inside and of the external environment
6.2 RECOMMENDATIONS
• I have realized that Super Asia is performing very well since sits inception. It is quite difficult to give suggestion to improve the working conditions of Super Asia MDS Ltd. As we know that nothing is perfect, there is always a room for improvement, so I have found during my internship can be made up taking into account the following suggestions. • Super Asia is also offering motorcycle with its brand name but during my internship period I came to know that there are a lot of complaints the company is 39
facing from its motorcycle department. So the organization must improve the quality of its motorcycle in order to maintain its goodwill. • The organization is also in process of computerizing its records which is good sign but it is going on with small progress. Computerization must be done on early basis. This will help in increasing efficiency of work done, customer’s satisfaction decreases the stationary cost and resultantly it will increase profits. • In past Super Asia MDS Limited has always being suffered from bad Government policies. Government intervention should avoid completely. • Employees Training programmer must be introduced on continuous basis so that Employees have understanding with the latest developments especially with the customers. • Super Asia should introduced incentive plans for employees on regular basis so that if employees may work whole heartedly for the welfare of their organization. While giving incentives qualification, work, experience, hard work and such other factors must be considered. • Mismanagement of resources must be avoided as much as possible as it decreases profit but also discourage hard worker and honest employees. • Fresh graduates must be recruited. As the combination of Experienced and fresh can produce better results and it will improve the efficiency of management. • Company’s different schemes must be conveyed to the targeted customers so that to increase the share in market.
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Management by objectives needs to be introduced immediately. It will help improve the functioning of the organization and will lead to greater participation and the workers and subordinates will be encouraged.
REFERENCES:
http://www.superasia.biz/about Google website manufacturing information Retrieved on December 30, 2008, en.wikipedia.org/wiki/manufacturing Google website methods of preparing report Retrieved on December 30, 2008, www.projects.ex.ac.uk/RDavies/arian/ http://www.quickmba.com/marketing/market-segmentation/ http://www.netmba.com/marketing/product/lifecycle/ http://tutor2u.net/business/strategy/bcg_box.htm
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Book Reference: Philip Kotler, Principles of Marketing, Prentice -Hall, 1980. Gary Armstrong joined as co-author in 1989
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