Post on 15-Nov-2014
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“A PROJECT OF MARKETING PLAN”
PRESENTED TO
PROF. DR. NADEEM AHMAD BASHIR
PRESENTED BY
MAZHAR HUSSAINI.D # 023111
ABDUL HAFEEZI.D# 023117
MUDASSAR HAMEEDI.D # 023392
MUHAMMAD NADEEM AHMADI.D # 023114
Institute Of Management Sciences Lahore
To the people who have worked
tediously through the ages to
uphold the principles of
determination, commitment and
devotion for the sake of
humanity.
ACKNOWLEDGEMENTWe wish to place on record our indebtedness to the following people for the
continuous support we received during the process of compilation of this report.
In particular to Dr. Nadeem Ahmad Bashir, our teacher, for his unrelenting interest,
keeping constant contacts and help that he gave during the process.
We are also thankful to Daewoo people for providing material relating to this report.
TABLE OF CONTENTS
1. Executive Summary 1
2. Daewoo International Corporation 2 Introduction General Information Company Chronology Departments Management
3. Daewoo in Pakistan 6 Introduction Why Daewoo in Pakistan? Start in Pakistan Investment
4. Services 8
5. Special Features 9
6. SWOT Analysis 10
7. Marketing Plan 11 Mission statement People vision Marketing objectives Target market Market positioning
8. Marketing Mix 13
Product Place Promotion Price
9. Conclusion & Recommendations 15
Executive Summary
The Diagnostic study on Daewoo Express Bus Service is indeed an
informative one. Daewoo came into Pakistan for the construction of
Motorway [M-2] Project. Then they were asked to operate their Inter
City Bus Service that was from Lahore to Islamabad. The government
of Pakistan proposed this, on November 11 1999, Daewoo started Inter
City Bus Service with a fleet of initially 20 buses, which was from
Railway Station Lahore to Choongi Amar Sadhoo. Then they gradually
increased their fleet and currently they are operating with 70 buses.
Daewoo is facing severe competition with Niazi Express. Other
franchise companies like New Khan Metro, Premier are also indirect
competitors of Daewoo.
As far as the financial situation of Daewoo is concerned, it had to bear
a large number of losses in its first two years of operations. But, it is
the growth phase. This can be judged from the fact that the
percentage of net loss was greater than 20 buses, and it reduced as
the number of buses increased to 70. So we can say that Daewoo,
though now not financially sound, has a strong tendency and in the
near future it will be a profitable enterprise. Express Bus Service
started working from 1998 with 40 buses and now they are at 64 and
also profitable.
Daewoo operates in the kind of industry where the entry barriers are
high. The reasons being a large amount of investment, equipment and
network are required.
The major weakness in the Daewoo Express and City Bus Services is
that their network is not extensive enough to accommodate most
areas. Even Daewoo City Buses are too much crowded.
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An increase in the number of routes and buses especially in the
Daewoo City Bus Service Department is the best way of tackling this
situation.
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DAEWOO INTERNATIONAL CORPORATION
Introduction
A locomotive for national economic development since its founding in
1967 as Daewoo Industrial Co., Ltd., today’s “Daewoo International
Corporation” is the new vanguard of Korean Trade. The company
played a leading role in overcoming economic crisis in 1998 by
achieving top results in export and trading surplus. Throughout its long
history, the company also played a major role as a vanguard in non-
governmental diplomacy. The company’s dynamic trade policies led to
the establishment of diplomatic ties with 13 nations as well as to the
expansion of export markets by setting up Korea’s first trade branch
office in 37 countries. Daewoo Corporation was reorganized into three
new companies in order to normalize all operations: Daewoo
International Corporation in trade, Daewoo Engineering and
Construction Co., Ltd., in construction and Daewoo Co. in others.
Having normalized operations, Daewoo International is leaping into the
new millennium with more than three decades of international
marketing expertise, international trading man power, high quality
products and all inclusive domestic and international sales networks.
With such reliable qualifications, the company looks forward to
positioning itself as a truly global leader in world trade.
With its own distinctive technology and development capabilities,
Daewoo international has been, for more than three decades, a
worldwide name for fine quality products. Now, with new
environmentally friendly materials, the company augmented its
renown and reliability in material for footwear, garments, car interiors
components and miscellaneous goods. First in Korea to acquire ISO
9002 and QS 9000 quality certification in its field, the company
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continues to expand its global exports and develop new trade
strategies. With its solid capabilities in manufacturing technology and
improvements in both process and quality, Daewoo International is
steeping into the new millennium with top competitiveness, top
products, and top services.
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General Information
Name of the company Daewoo International Corporation
CEO Lee Tae-Young
Address
541 5- Ga
Namdaemunno, Chung Gu, Seoul,
Korea, G.P.O Box 2810
Phone 082+2-759-2114
Fax +82+2-753-9489
Company Chronology
Mar. 22, 1967Established as Daewoo Industrial
Co., Ltd
Jan. 1, 1982Merged with Daewoo
Development Co., Ltd;
1998Ranked first in Korea in exports
and trade surplus
Number of staff: Approx. 9000
Overseas network: Subsidiaries: 70
Branch offices: 49
Major business areas:
International Trading, Overseas
Resources Development,
Domestic and Overseas
Investment Business Overseas
Projects, etc.
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Organization 10 Division, 51 teams
Departments
Corporate Restructuring
Finance
International finance and overseas management
Office of management
Staff of legal affairs
Management
With 30 years of experience, Daewoo’s Management Development
Center recently introduced new visions to foster personal efficiency
and advancement. The center is initiating a number of systematic new
programs for employees, as well as innovative steps as the leading of
training facilities, operation of consignment training, and public
lectures.
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Daewoo in Pakistan
Introduction
As Daewoo has a name all over the world due to interest in
automobiles, consumer goods, financial and securities, construction,
engineering and trade sector, Daewoo is working for the last thirty
years and their motto is “from tile till ship”.
Daewoo, a top Korean company, emerged in Pakistan in 1993, when it
sort $1 billion in Lahore- Islamabad Motorway Project which was highly
political in nature. Though it discouraged in getting more projects but
with the re-election of Nawaz Sharif Government, Daewoo has come
with its renewed commitments in taking part in development related
activities.
In the first phase, company would import buses from Korea and
intends to invest $60 million in its transport venture which would have
600 buses fleet in total. Company source says that it is also
considering installing a bus assembling plant to take part in the
massive demand of passenger transport.
The company commenced its business on December 10, 1997 after
obtaining certificate for commencement of business from registrar of
companies, Lahore. Daewoo Pakistan Motorway Services Ltd. was
incorporated as a public ltd. company on October 23, 1997. The object
of the company was to provide services on Lahore- Islamabad
motorway.
Daewoo Pakistan Express Bus Services Ltd. was incorporated as a
public ltd. company by shares with the object of engaging in
transportation business. Their detailed description activities are:
To plan, survey, design, finance, construct, own, operate and
maintain bus services.
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To carry on the business of transport of goods, mails,
passengers, animals from place to place either by air, by land or
sea whether in airplanes, motor-vehicles, cars, ships or in any
manner what so ever.
To indulge in higher transportation services in all the parts of the
world.
Starting in Pakistan
In May 1999, Daewoo signed memorandum of understanding with the
Government of Punjab at Seoul, Korea to operate 1500 buses in
Pakistan out of which 700 buses were proposed to be operated in
Punjab whereas 800 buses in Sind.
It was also agreed that government would provide the requested funds
for this project from outstanding payment on the construction of
Lahore-Islamabad Motorway Project. Anyhow, this agreement could not
be materialized and due to the certain reasons and eventually Daewoo
had
to arrange funds for import of 50 buses through financial institutions
and those maintain its commitments made with the citizens of
Pakistan.
To operate the city bus in Lahore, a franchise agreement was signed
on August 3, 1999 between Daewoo and Lahore Regional Transport
Authority, Government of Punjab.
Investment
To commence its business on January 12, 1998, after obtaining
certificate for commencement of business from Registrar of
Companies, Lahore, the company has planned an initial equity
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investment of US $ 1 million. The total cost of the project has been
estimated at $ 6.526 million, which the company proposes to finance,
by equity investment of $ 5.095 million and by loan arrangements of $
1.431 million. In this project, as well, Daewoo wants 100% equity in the
project instead of 60% allowed.
Services
There are two types of services that Daewoo is providing in Pakistan
which are as follows:
1. Express Bus Service
2. City Bus Service
Express Bus Service
This is the inter-city bus service of Daewoo International Corporation in
Pakistan.
Major routes
Lahore - Islamabad
Lahore - Multan
Lahore - Sargodha
Lahore - Faisalabad
Rawalpindi - Murree [wagon]
Lahore - Peshawer
City Bus Service
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This is the intra-city service of Daewoo International Corporation in
Lahore, Pakistan. This department offers an extensive transportation
network within Lahore through a fleet of 70 buses.
Daewoo is also considering the launch of this service in other
metropolitans such as Karachi.
Special Features[Daewoo Express]
It provides its services from cities to cities comparatively to the other
companies, Daewoo aims to provide following services for their
customers:
Smooth drive with reclining seats
Refreshment
Audio/Video entertainment
Centrally heated and air-conditioned
Reservation facilities
Pick and drop facilities
Punctual departures and arrivals
24 hour service
Computerized ticketing
Courteous hostesses
Armed security guards
Cargo service
Expert drivers
All these points are advantages for Daewoo over all the other
transportation companies in Pakistan.
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SWOT Analysis
Strengths
1. Brand name
2. Unique Service
3. State-of –the-art equipment
4. Professional management
5. Trendsetters
[in transportation]
6. High traveler satisfaction
7. Extensive Employee
Training Program
Weaknesses
1. Lack of an extensive transport
network
2. Over crowding of vehicles
3. Insufficient marketing
intelligence
Opportunities
1. More buses, routes and a
greater range of transport
network
2. Better management of
available resources
3. Innovative Marketing
Threats
1. Well established competitors
2. Government policies
3. Fluctuation in fuel prices
4. Up coming companies
5. Intensive disturbances on the
roads
6. Non-availability of spare parts
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MARKETING PLAN
BUSINESS MISSION
“We envision growing in the shortest possible time into number one traveling
company in Pakistan with the unique ability to meet the needs of consumers of
every age group for facility and pleasure through development of highest quality
and customer-care services.”
PEOPLE VISION
We envision the company to develop an extremely motivated and professionally
trained work force, which would drive growth through innovation and renovation.
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MARKETING OBJECTIVES
The fiscal and political policies and economical conditions of the government and its
efforts are creating a generally business friendly environment are likely to help in the
economic turn around. The international community is supplementing these efforts to
overcome economic difficulties. These indicators are holding out the hope that the year
2004 may be better for business. However, it is early to say with any finality how
business will develop, given certain uncertainties that still prevail. On our part we are
confident that we will maintain our growth momentum and perform well in the coming
year. Our focus will remain on a long-term view of the business, quality consciousness
and efficiency through innovation and renovation in all areas of operation.
TARGET MARKRT
Our target customers are middle and upper class citizens who think time is more precious
than money and sufferings of using conventional traveling medias.
MARKET POSITIONING
We want positioning our company as the company, providing comfortable traveling
experience with a nice cooperative and friendly staff.
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MARKETING MIX
PRODUCT
Daewoo will provide traveling services using innovative techniques and modern
technologies with a friendly and gentle environment.
PLACE
The company will make sure that service is available throughout the country at all the
suitable locations.
PROMOTION
Effective marketing remains the hallmark of Daewoo as a company involved in supplying
services with a great emphasis on effective long-term strategies. Its services (traveling,
pick & drop, cargo etc) will be promoted through out the country using a network of bus-
stations.
It will ensure consistent and balanced growth, despite adverse market conditions. As a
result, Daewoo will enjoy an extremely high degree of recognition and reliability, which
has earned leadership positions for most of its services. Its more and more branches will
be initiated in other cities where demanded.
PRICE
After developing their pricing structures and strategies, companies often face situations in
which they must initiate price changes or respond to price changed by competitors. In
some cases, the company may find it desirable to initiate either a price cut or a price
increase. In both cases, it must anticipate possible customers and competitor reactions.
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Several situations may lead the firm to consider setting its price. One such circumstance
is excess capacity: In this case, the firm needs more, business and cannot get it through
increased improvement or other measures. It may drop its "follow-the-leader pricing"—
charging about the same price as its leading competitor—and aggressively cut prices to
boost profit.
A successful price increase can greatly increase profits. For example, if the company's
profit margin is 3 percent of fare, 1 % price increase will increase profits by 33 percent if
fare volume is unaffected.
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Conclusion and Recommendations
1. Daewoo is an international brand and through its high quality
and exclusive services, it has gained a good repute in the local
transport business. But it has been seen that Daewoo
Corporation has not lived up to its name as far as the
establishment of an extensive transport network is concerned.
Passengers in most areas of Punjab and in all the other provinces
of Pakistan have no access to the Daewoo Bus Services. There is
also a great need for an inter city transport network of Daewoo in
metropolitans such as Karachi, Rawalpindi and Faisalabad etc.
This problem can be dealt with by increasing the no. of inter city
and intra city routes and buses as well as increasing the range of
transport services.
2. It has recently been observed that following a tremendous
growth in the number of passengers, Daewoo Intra City Bus
Service has suffered great over-crowding which has deteriorated
the standard of comfort claimed by the company.
One probable solution to this problem is again an increase in the
no. of transport vehicles and routes. Moreover, a better handling
and management of the present bus routes and the number of
buses can also lead to a more pleasant situation.
3. I was quite shocked to know in my meeting with Executives of
Finance and Marketing of Daewoo, Pakistan that no advertising
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campaign has ever been launched to highlight the comparative
superiority of the company over its local competitors.
Consequently, a large proportion of consumers remain unaware
of the great facilities afforded by the bus service.
Therefore, advertisement is a feasible and necessary way for the
bus service to attract passengers who are unfamiliar of the high
class and uniquely elegant transportation experience- offered by
Daewoo- and hesitate when spending on the comparatively high
Daewoo bus fair.
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