Company Description: ..................................................................................................................................... 3 Strategic Focus and Plan: ............................................................................................................................... 5 Mission Statement: ...................................................................................................................................... 5 Goals: .............................................................................................................................................................. 5 Non Financial Goals:................................................................................................................................. 5 Financial Goals: ......................................................................................................................................... 5 Core Competency and Sustainable Competitive Advantage ................................................................... 5 SWOT Analysis ............................................................................................................................................... 6 Strenghts ................................................................................................... Error! Bookmark not defined. Weakness .................................................................................................................................................. 7 Opportunities ............................................................................................................................................. 7 Threats ........................................................................................................................................................ 7 Competitor Analysis ..................................................................................................................................... 7 Haier ........................................................................................................................................................... 7 Q Mobile ..................................................................................................................................................... 7 Customer Analysis ............................................................................................................................................ 8 Segmentation ................................................................................................................................................ 8 Target Market ................................................................................................................................................ 9 Point of Difference ................................................................................................................................... 9 Marketing Program ........................................................................................................................................... 9 Product Strategy ........................................................................................................................................... 9 Promotion ................................................................................................................................................ 10 Financial Data and Projection ....................................................................................................................... 11
Executive Summary: Entering the smart phone market was not an option for us, but a necessity. The future belongs to smart hand held devices. Moving forward, I believe we will soon see regular featured phones (within certain price segments) replaced by smart phones. The world is changing swiftly and consumers today expect access to information at their fingertips. We are moving from a device-led environment towards one that is led by solutions. And only smart phones are capable of providing better software solutions to consumers in the shape of varied applications. Company Description: Orient Group of Companies has been on the forefront of design and development, by coming up with new products and increasing its presence in all its featured markets. Established in Lahore in1957, today the Orient Group of Companies is one of the largest consumer goods companies of Pakistan. Orients products have proven themselves in functional performance parameters set by international industry experts. With the vision to become leaders of the industry, Orient strives to make each of its products, with careful R&D and intensive innovation. Orient aims to give its customers new and original products each year, which can be value beyond the ordinary in every household. Business name: Orient Group of Companies.
Business structure:
Orient is a registered company with Security Exchange Commission of Pakistan. Business location:
26-KM Multan Road Lahore.
Date established:
It was established in 1957.
Business owner(s):
Mian Abdul Rehman Talat Mian Talat Mahmood Fazal Mian Ahmed Fazal Mian Zubair Fazal
Owner/s experience:
Mian Talat Mahmood Fazal:
Mian Talat Mahmood Fazal is the Managing Director of Orient Group of Companies. With over 30 years of experience in the consumer electronics business, Mr. Talat Mahmood Fazal is a strategic thinker with an eye towards the bigger picture. As the captain of the ship, he has steered Orient Group of companies through the tides of time. Under his guidance and leadership, The Orient Group of companies has transformed into one of the largest consumer electronics group in Pakistan.
Mian Ahmed Fazal: Mian Ahmed Fazal is the Executive Director of the Orient Group of Companies. A target driven mind, Mr. Ahmed Fazal keeps a keen sight towards the current and future trends, and technological advancements, all the while setting challenging deadlines and creating a benchmark for excellence that is shaping Orient Group of Companies as one of the leading names in the business. He is particularly instrumental in automating the Sales module of Orient Group of Companies with the current state of the art proprietary ERP (SAP), thus channelizing the sales infrastructure that has efficiently streamlined the revenue generation for the company.
Mian Zubair Fazal: Orient Group of Companies began with the Photo Goods Industry. Even after 50 years, and many divisions, the photo business remains photographic business of Orient Group of Companies. Now with the partnership with Samsung electronics, the innovative range of Samsung photographic appliances are now part of the of the Orients family of products, being managed brilliantly by Mr. Zubair Fazal.
Mian Abdul Rehman Talat: Coming from the world of Information technology, Mr. Abdul Rehman Talat is a relatively new entrant in the consumer electronics business. However, with a tech savvy background, this field is right up his alley. No company today can survive without an integrated marketing strategy, especially using digital media to create user awareness effectively and Mr. Abdul Rehmans creative ideas in this regards are paving the way for the Orient Group of Companies bright and shining future.
Products or Services: ACs Refrigerator Microwaves Water Dispenser Cooling System LCD/LED TVs Vacuum Cleaner Strategic Focus and Plan: Mission Statement: Goals: Orient is a technology leader in the market, as they always focus towards innovation. They always tries to come up with new ideas which can make customer life easier. Orient always been in the opinion that it shoul;d make its customer use there products to make life easier. Orient want to achieve the following goals in the near future. Non-Financial Goals: To retain its image in the mind of customer for introducing user friendly products. Enter the new industry of cell phone markets with Smart technology. To achieve the national wide distribution across all over Pakistan. To add a new cell phone model within 6 Months. To be the market leader in the cell phone industry like they are leading the home appliances industry. Financial Goals: Entering the smart phone industry will make the earning per share grow by 3% annually, after a successful launch. There will be a decrease in the debt equity of the company by at least 16%. Obtain financing to expand manufacturing capabilities, increase distribution, and introduce new product line. Core Competency and Sustainable Competitive Advantage
The top management is highly qualified and have much technological knowledge which helps them to innovate new features in the product line. They have always been focused towards the technological development. They provide distinctive, high quality products, and related accessories using the latest technology in the market. They deliver these products to the customers, using effective manufacturing and distributive system, that helps to maintain the company quality standards. Orient's innovation throughout the business strategy, marketing, management, organization, ideas and institutions in various aspects and areas of the enterprise which integrates all the resources to continue to play the advantages of Haier, Haier and create tremendous value. In terms of core competency orient seeks to achieve a unique ability to provide distinctive high quality cell phones according to the demand of the Pakistani market. They will
Sales Analysis
Sales for your overall market
Sales for your business
Sales for your competitors
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Sales for overall market Smartphones sales grew by 50 percent or 63 million units during first quarter, as compared with duration last year, and reached 210 million units. This is almost half of overall mobile phones sales that stood at 425 million units. Sales for our business We are introducing the new smart phone with distinct features and network supported handsets. In the first year we are expecting to gain a market share of 5.9%, and an increase of 16% annually. We would be selling around 50,000 units per month with the price tag of Rs. 24,999/- Sales for our competitors Q-Mobile Q mobile has expanded its import has doubled to 600,000 to 700,000 mobile handsets per month. Haier Haier has recently launched its smart phone and in the first quarter they have achieved sales around 80,000 units per month across all over Pakistan.
SWOT Analysis Strengths Diversity among products. Orient as brand name in the market. Already in the field of technology. Weakness Lack in understanding customer preference. Lack of user centered design. Lack of brand awareness on the globe only national level. Opportunities Development of Mobile phone industry. High % of mobile user in the market. A strong demand for the highly innovative products in the market. High disposable income in the emerging cities. Low tarrif rates offered by the service providers. 3G & 4G service introduction. Threats Landline phone service. High competition in the market. High bargaining power of the consumers. Competitor Analysis
Orient Curve is one of the best smart phone which has a software of android Kitkat 4.4, which is one of the latest model with captive display. I find most important to talk about Q mobile and Haier, which is part of Googles Android operating system. I find these two companies the most important, because Q Mobile and Haier are the targeting the market with low prices. If Orient wants to achieve the leadership position it has to deal with this two companies Q Mobile and Haier.
Haier has recently launched its mobile, they have penetrated into the market by giving smart phone to the Upper middle class with the basic android apps. Whereas Q Mobile has launched cell phone with a wide range of cell phones for lower to upper class.
Haier Haier entered the Pakistani smartphone market for first time in November 2013 with its Android Phone. The smartphone has been great success and by now. Currently the Haier has 6.8 % market share in Pakistan. Haier has a very diversified customer base such that some of the Haier users are children, students, average adults, and businessmen and women.
Q Mobile Q Mobile is the market leader with 65% of the market share in the rural areas of Pakistan. In the second quarter of 2013 Q Mobile overtook Nokia with 29% market share in the Rural market. In this region Nokia has been the market leader since 1990. Customer Analysis The customers are divided on the basis of following terms: Segmentation Targeting Positioning Segmentation Using a segmentation strategy means recognizing smaller market segments and targeting those with products suitable for that specific customer group. We have segmented the market on the following features to gain a good market share. Geographical Demographics Psychographics Behavior Geographical On the basis of geographical location we have divide the market in four parts Punjab, Sindh Balochistan and KPK. In the first quarter we will only be supplying the Punjab region. After that we would be giving it to the other regions as well. Demographics They are based on the following aspects: 15-40 Age Group Male and Female Income Level Social Class Psychographics They are based on the following aspects: Lifestyle Personality Motive Behavioral Price Senstivity Product usage Benefits Sought
Target Market We are targeting the youth and middle aged people who want everything on their finger tips: SMS Conscious People Multimedia Users Upper Middle Class Internet Surfing People (3G & 4G Enabled Handsets) Photography Lovers High Quality HD Videos Point of Difference We are creating difference in our handsets on the following prospects: Quality Software Battery Timing Resale Value User Friendly Multimedia Supported HDMI Supported Marketing Program Product Strategy The products should be stylish and attractive with the current trends and technology. One of the most seen trends is to use a touch screen mobile handsets with the advent of IPhone. If the emerging markets and trends are focused, then style and design will play an important role as the Pakistani consumers are mostly young and middle aged with an increasing amount of disposable income for this they look towards brand which are fashionable. Product Features
We are taking the first step towards making smart phones available to all Pakistani consumers at an affordable price, so that everyone can use the latest mobile technology. Orient Curve is equipped with a 2ghz Octacore processor with a 4.7-inch capacitive LCD touch screen. It is a Dual SIM smart phone with the Android OS (4.4 Kitkat) operating system. The phone has two cameras, one on the front with 12 Mega Pixels and one on the back with 2.8 Mega Pixels, making it the only phone in this price segment capable of Skype video chat and the phone is, of course, wifi capable.
Price The price of this Orient Curve with distinct feature is Rs. 24,999/-. We will be using the market penetration strategy in order to gain a huge market share. Orient retail price will be issued to the distributor for strict implementation. Strict monitoring will be implemented to ensure that retailer would not dilute the brand by selling it at a lower or higher price. Place Orient is getting its products to the market through distributors. It will mainly sells its smartphones through Mobile operators and retailers, which is common for the industry. According to the marketing mix analysis for Orient, the company mainly focuses on product component of the marketing mix. Orient will offer great variety of product at a different price levels. Given the variability in products and series, at this point it is hard to understand the strategic choices of the company. It is even impossible to assess the decisions regarding the new series Orient Curve, which are of interest for my analysis. Promotion Nokia makes use of advertising on television, newspapers, radio and billboards. There is no information on any current or near past promotional campaigns. We would be using the following promotional tools: Advertising Executive Series Youth Series HD Series Sales Promotion Privilege Cards Public Relations Dealer Commission