Packweld Co. Pvt. Ltd. Marketing Audit. Marketing Audit – Packweld.
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Transcript of Packweld Co. Pvt. Ltd. Marketing Audit. Marketing Audit – Packweld.
Packweld Co. Pvt. Ltd.Packweld Co. Pvt. Ltd.
Marketing Marketing AuditAudit
Marketing Audit – Packweld Marketing Audit – Packweld
• Analysis of either the external marketing environment or a company's internal marketing goals, objectives, operations, and efficiency
• External Marketing audit - economic, political, infrastructure, technological, and consumer perspectives; market size and structure; and competitors, suppliers, and distributors issues
• Internal Marketing audit - company's mission statement, goals, and objectives; its structure, corporate culture, systems, operations, and processes; product development and pricing; profitability and efficiency; advertising; and deployment of the sales force
Marketing AuditMarketing Audit
• Marketing environment audit • Task environmental audit • Marketing strategy audit • Marketing system audit • Marketing productivity audit • Marketing functions audit• Marketing organization audit • Recommendations
AreasAreas CoveredCovered
• Packweld – J. M . Vasnani Engineering Co. - founded in 1949 by Mr. J. M. Vasnani
• Core business - to manufacture processing machinery for welding PVC and PP Stationery
• Recent exploits – Supplied plastic molding machinery used for manufacture of Tata Nano and Mahindra and Mahindra Xylo
CompanyCompany ProfileProfile
• Demographic– Located in the industrial area near Ulhasnagar– Well-connected by transportation mode– Major Suppliers: Mumbai, Coimbatore– Clients: All over India, Kenya, Bangladesh &
other African Countries• Economic
– Double octroi duty while importing and exporting
– No excide duty applicable– No direct effect of economic meltdown as
orders were in pipeline
MarketingMarketing EnvironmentEnvironment
• Environmental– No pollution control system required– No requirement of natural resources
• Technological – Old technology is used– No such new trends in the technology
• Political– No special law applicable– Has to follow regular factory act and
manufacturing norms– Child labor is not allowed
MarketingMarketing EnvironmentEnvironment
• Markets– Market leader in PP technology– 50-55% market share– 50% of profits from India
• Customers/clients– 300-400 clients – Clients all over India, Colombo, Kenya,
Bangladesh, other African countries– Mahindra n Mahindra, BARC, TELCO are some
of the important clients– High economic efficiency and reliability of the
machines is highly appreciated by customers resulting in brand loyalty.
TaskTask EnvironmentEnvironment
• Competitors– Only 3 major players in India– Moga electronics and Hemant company limited
strong competitors– Moga Strength - Contract based tie-ups with
clients• Distribution and dealers
– No dealers– Direct orders from the clients
• Suppliers– Suppliers mainly from Mumbai and Coimbatore
TaskTask EnvironmentEnvironment
• Facilitators and marketing firms– Minimal storage costs– Client pays for transportation facilities except for
Mumbai– In-house design team – Extensive facilities accommodating shortest lead
times.
• Publics– Suppliers pose a threat to the company as the
company doesn’t keep much safety stock– Company is trying to build up good long term
relationships with suppliers through face to face meetings, advance payments, timely clearance of dues.
Task EnvironmentTask Environment
• Objectives and Goals– Presents scenario:
• No. of clients: 300-400• Clients: Mahindra n Mahindra, BARC, TELCO, Paras
steel, Bata, Metro shoes etc– BARC has no option but to buy it only from them else
import from UK• Market share: 50-55% market share• Number of Competitors: 2
– Current Strategy:• Competitive pricing• Special discounts to local clients• Customer retention due to trust• More of Just In Time approach
MarketingMarketing StrategyStrategy AuditAudit
• Strategy
– Advertisement:• Trade fairs and exhibition• Yellow pages• Industrial magazines
– Long terms goals• Expansion plans: Aiming International markets like
Africa Kenya, Lagos, Bangladesh
MarketingMarketing StrategyStrategy AuditAudit
• Marketing Information System– There is an MIS installed in the company.– It helps in generating valuable information
required for decision making.
• Marketing Control System– There is no formal marketing activity
undertaken by the company , given the monopoly status in the market and also being established in the field.
MarketingMarketing SystemsSystems AuditAudit
• Profitability Analysis– Territory: the whole product is manufactured at
one place– Market share: huge, as there are only 2 players
in the market for high capacity– Competitive rates: entire product being
manufactured at one place.• Recommendations regarding
expansion and/ or diversification: Since it is a market leader it can think of
expansion It can use brand extension while expansion
Marketing Productivity Marketing Productivity AuditAudit
• Cost-effectiveness– Cost incurred by marketing activities:
No formal marketing department established
Target the customers via trade fairs Established in field – so no market required
– Budget allocated to such activities: Not done
Marketing Productivity Marketing Productivity AuditAudit
• Profitability Analysis– Profitability of the product on the territory,
market basis– Recommendations regarding expansion and/ or
diversification
• Cost-effectiveness– Cost incurred by marketing activities– Budget allocated to such activities– Comparison between cost incurred and cost
allocated– Recommendations
Marketing Productivity Marketing Productivity AuditAudit
• Products– PVC, PP machines
• With around a total of 60 machines– Around 60 years of experience of producing high
quality, economic efficiency and reliable products• High Brand loyalty
• Price– Price Revision after two years– Factors affecting price
• Raw materials, transportation, logistics, technology
• Profit Margin depends on type of market
MarketingMarketing Function AuditFunction Audit
• Distribution– Transportation
• Cost is borne by the client• Undertakes delivery only to Mumbai-based clients.
• Warehousing– Just-in-time production of Machines– Storage at company Galas
• Logistics– Very less safety stock of metals
Marketing Function AuditMarketing Function Audit
• Marketing Communication– Modes of Advertisement:
• Demo• Trade-fairs• Directory advertising• Personal contacts• Relations
• Sales– Demos– Order placements– Relationship management
Marketing Function AuditMarketing Function Audit
• No dedicated marketing department – As there are only two competitors– Enjoys long term relationships with major
clients
• Trade fairs, exhibition, industrial magazines for advertisements
MarketingMarketing OrganizationOrganization AuditAudit
• Go global and explore new markets– Target China, Taiwan and Western countries as
well• Diversify• Establish offices all over India
– Keep a model for demonstration• Provide training and better after sales
service• Maintain the monopoly in PP machines
RecommendationsRecommendations
• Differentiate the PVC machines• Create a dedicated marketing and sales
team• Keep innovating
– Put technology at the heart of economic development
– Innovation won’t happen accidentally. Put a structured R&D team
RecommendationsRecommendations
Thank youThank you