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Channel Management Dawlance

Sino Table of Contents Page No

1 Introduction and Short History of Dawlance 01

2 Sales & Marketing Program 03

3 Vision 04

4 History of a Dawlance 04

5 Corporate Belief 04

6 Corporate Responsibilities 15

7 Collaborations 16

8 Human Resources & Dealer Structure 17

9 Production Plan 18

10 Dawlance Business Process 11

11 Distribution System 14

12 Type of sources of Raw Material & Detail of Raw Material 16

13 Supply Chain Issues 18

14 Supply Chain 21

15 Market Segmentation 22

16 Transportation Network (Modes of Transportation) 24

17 SWOT Analysis 25

18 Marketing Plan 26

19 Market Players 30

20 Marketing Strategies 31

21 Conclusion 35

INTRODUCTION

A review of channel management

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Channel Management Dawlance
Channel Management yet another sales and marketing phrase that is thrown around like
everyone knows what it means. But so few companies really comprehend channel management
in a way that really helps them. It’s really no wonder. Sales channels (being the conduits by
which we distribute our products to the end-user) come in many shapes-from direct, to the web,
to the traditional retail environment. And, we’re just doing whatever we can to get any business
from any of them! But is that the most efficient and effective approach?

That’s where Channel Management comes in. Channel management, as a process by which a
company creates formalized programs for selling and servicing customers within a specific
channel, can really impact your business—and in a positive way! To get started, first segment
your channels by like characteristics (their needs, buying patterns, success factors, etc.) and then
customize a channel management program that includes:

Goals

Define the specific goals you have for each channel segment. Consider your goals for the
channel as whole as well as individual accounts. And, remember to consider your goals for both
acquisition and retention.

Policies

Construct well-defined polices for administering the accounts within this channel. Be sure to
keep the unique characteristics of each segment in mind when defining policies for account set
up, order management, product fulfillment, etc.

Products

Identify which products in your offering are most suited for each segment and create appropriate
messaging. Also, determine where your up sell opportunities lie.

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SALES & MARKETING PROGRAMS

Design support programs for your channel that meet THEIR needs, not what your idea of their
needs are. To do this, you should start by asking your customers within this segment, “how can
we best support you in the selling and marketing of our products?” That being said, the standard
considerations are product training, co-op advertising, seasonal promotions, and merchandising.
Again, this is not a one-size fits all, so be diligent about addressing this segment’s SPECIFIC
needs in these areas.

Defining a channel management strategy for each segment allows you to be more effective
within each segment, while gaining efficiency at the same time. Still, maintaining brand
consistency across all channel segments is critical to your long-term success. So find a good
balance between customization and brand consistency and you’ll be on your way to successful
channel management.

VISION

"We are committed. Above everything else, Dawlance places its top priority on the satisfaction
of human beings the satisfaction of its customers, partners and employees. All our policies and
approach towards work revolve around our corporate belief."

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HISTORY OF A COMPANY

Dawlance United Refrigeration Industries Ltd. was established in 1980 at initial stage Dawlance
started production by producing refrigerators after that company started to produce other home
appliances products like it has established a deep freezer manufacturing unit in 1988 after that it
continue to add more products to its production line, in 1999 Dawlance Pakistan got certification
from ISO 9001 and ISO 14000 in 2001. In 2001 Dawlance start to establish its USL shops and
today Dawlance Pakistan is one of the leading company in home appliances business in Pakistan.
Dawlance has two plants its refrigerator plant is located in Hyderabad and other plant is located
in Karachi where most of the product are assembled. The Objective of Dawlance Pakistan is to
provide durable and reliable products to its customers at reasonable prices that enhance their
quality of Life of Pakistani peoples.

CORPORATE BELIEF

Individual must be respected.

The customer must be given the best possible products and services.

Excellence and superior performance must be pursued.

CORPORATE RESPONSIBILITIES

Gives higher slandered of living by providing the outclass products with greater reliability and
affordability.

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Channel Management Dawlance
Implementing the first class production engineering.

Personal growth benefits for each of employees working in to the company.

Its global firm which in results enhances the companies prestige and status.

To reinforce value like harmony, solidarity, discipline and dedication

DAWLANCE (A BUSINESS OF DIFFERENT GROUPS)


Dawlance Pakistan is a collaborative business that is handled by different groups like:

     

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Name of Company:   Nature of Business:

United refrigeration industries LTD. Manufacturer of Dawlance Brand


  Refrigerators

Dawlance (PVT)LTD Manufacturer of Dawlance Brand Deep


  Freezers & Washing Machines

United sales (PVT.) LTD. Hire Purchase Business of Domestic


  Appliances.

Dawlance marketing (PVT.) LTD. Retail Store Network with the brand
  name of "Electric city"

Dawlance electronics (PVT.) LTD. Marketing and Distribution of OEM


 
products

These all business units are interlinked with each other and with head office located in Karachi
Dawlance Centre on Dr. Zia-uddin Ahmed Road, and all business units are using a direct
reporting system with head office.

HR & DEALERS STRUCTURES OF DAWLANCE PAKISTAN

Name
Managing director Mr. Basheer Dawood
Employs
Management 600
Worker 900

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Channel Management Dawlance
Sales network 16 sales branches
After sales & network services
Branches 20
Contract work shop 40
Central office 1 in Karachi
Regional office 1 Lahore
Ware houses 16 all over the Pakistan
USL branches 11 all over the Pakistan
USL shops
Karachi 11 shops
Other cities 5
Electric shops 3 in Karachi only
Dealers 800 all over the Pakistan

PRODUCTION PLANS

Products currently produced by Dawlance Pakistan

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Channel Management Dawlance
Dawlance is producing a series of products in home appliances business

Refrigerators

Dawlance is specialized in producing refrigerators and for Dawlance refrigerators


are considers as a cash cow item having a variety of features available like:

Washing machines

Dawlance is also producing washing machines and having a leading name in


washing machine production. Dawlance washing machine is space-saving
compact design packed with highly efficient cleaning mechanism, powerful
pulsation and noise free operation having different features available like twin tub
system and Korean motor.

Deep freezers

Dawlance is producing the ultimate models of deep Freezers which are


environment Friendly and having polyurethane Insulation for greater cooling
retain ability and great savings on annual electricity bills

Owens

Dawlance is also producing having huge features available like speedy cooking
& heating operation gives steaming hot food in minutes.
Dawlance have available both types of Owens available like manual and touch

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Air conditions

Dawlance introduces the concept of T3 Super Tropicalized Technology in splits


air conditioners with international technology having splits available in different
sizes and verities.

Other small appliances items

Not only the big and expensive items but Dawlance is also producing items
related to small appliances vacuumed cleaner is one of them.
Further more other items include: irons, food processors,
sandwich maker, and toasters that make the life too easier.

Televisions

Dawlance has not leave their customers away from entertainment, for resolving
that issue they are also producing televisions with Europeans
technology that includes televisions in different sizes like 14, 21,
29, and 34 inches.

Retains cooling
Thick insulation allows retain ability of cooling and freshness for longer periods
even in case of power failures.

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Channel Management Dawlance

Shelf Strength
Durable shelves- can hold weight up to 60 kgs.

Work effectively even at 50 'C


Copper condenser- makes it possible for Dawlance refrigerators to work effectively
even at severe temperatures like 50 degrees Centigrade.

Pipe Oil Cool Compressor


Imported compressor from Matsushita of Japan, with 5 pipes oil-cool mechanism.

Copper Condenser
Efficient oil cool compressor combined with copper condenser for;
a. Great cooling performance even at 50 degrees Centigrade
b. Enhancing the compressor life

THE COMPANY HAS PARTIALLY AUTOMATED ITS FOUR MAJOR


BUSINESS PROCESSES

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Sales Process

Accounting and Finance

Human Resource

Store and warehouse management

The details of these modules and how they help in the business processes is provided as

Under

Sales or Shipment Module

The sales module encapsulates all information regarding distributor data management,
key accounts management, sale (cash inflow) and shipment etc. The distributor information is
captured with regards to the area it is covering in the local market, the location of the distributor,
name, contact numbers, contact persons etc. Key accounts are those retailers to which the
company distributes the product directly. The products are then shipped the distributor.
Usually, the distributors bring along their own vehicles to load the shipment. At the time of
sale, the data is saved in ERP sales module, the finance data (cash inflow) is updated and a
receipt is generated by the system called sales invoice. The system keeps track of which
distributor purchased what quantity and the frequency of sales can also be captured. A daily sales
report is generated by the system which shows the distributor, units of product
purchased, date of purchase, the total amount and other key information. The company
defines a target sale for each distributor at the beginning of month.

The reports generated by the system also provide the user with the information of what
percentage of the target has been achieved by the distributor as yet. The distributor can be judged

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on this basis if he will be able o achieve the set target or not. The ERP system not only keeps
track of the primary sales done to the distributor, it also captures the secondary sale data
provided by Territory Development Managers (TDMs), the personnel designated by the
company to monitor the distributor sales (at distributor end) and to keep a check that a
distributor does not enter the domain of another distributor. The secondary sales data contains
information regarding distributor’ s sale to retailers which is recorded in units per day and does
not actually contain information as to which retailer the product was sold.

Financial Accounting module

Financial accounting module has a basic and limited functionality. It has two to three main
entry forms regarding insertion/deletion of accounts (chart of accounts) and transaction
entry. Any transaction taking place in the company will be recorded here. The invoices
(payment or receipt) are also created in the same form. The form contained a category
field where the category of receipt/transaction is defined. The categories can be cash
receipt, bank receipt, payment invoice, sale invoice etc. A notable point is that the transaction is
not made automatically when a sales transaction takes place. This could be rightly so as the
cash payment is received directly from the distributor by the finance department, but it can
create a logical error since the transaction is not done in correspondence to the sales transaction.
The reports generated the system include trial balance, balance sheet, income statement and
other basic financial statements.

Inventory Management

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It is also a limited-functionality module which only records how much items are produced today.
This entry is done at the end of the day and still there is confusion about what actually is
inserted in the system since the total manufactured amount is reduced at the end of the
day due to sales transaction and the corresponding batch numbers or lot numbers are not
recorded in sales module. The system still supports the inventory control system since it contains
up-to-date information regarding the finished product available in the warehouse only and also
the store data which contains information of raw materials. The stock-in and stock-out is also
updated whenever requisition is made from the production department for the raw material used
for production.

Human Resource Management module

Human Resource Management module has proved to be very handy when it comes to daily
attendance and payroll calculations. The system automatically generates a bar code when a new
employee is added in the HRM module. On the basis of this bar code, employee gets a printed
card. Whenever an employee comes in or goes out, he scans his card against the bar-code reader
placed at the entry gate of the company and the time-in and timeout of instantly updated by the
system. A monitory report is also flashed on manager’s screen which is updated every 5
seconds. This shows a complete list of employees coming in and going out. The system contains
a descriptive employee record and employee leaves are also managed by the system. It shows
how much leaves of which category (casual leave, paid leave, sick leave etc) as been acquired
by each employee as yet. The payroll of employees are calculated automatically
including overtimes, deductions (for late arrivals and extra leaves), bonuses, allowances etc.
and a pay slip is generated by the system. In order to support the ERP system and network as a
whole,

DISTRIBUTION SYSTEM

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In Dawlance no such department namely Supply Chain but they have the concept of SCM and
implemented it in their organization. The department of Sales Planning is looking after all SCM
matter which is presiding by the MD Dawlance (Mr. Bashir Dawood). The scope of SCM consist
from top to bottom means from suppliers to customer is planed and look after by the sales
planning department and the activities are as follows. The activities regarding supply chain are to
plan 3 months advance production schedule for suppliers and inform them to arrange on time
supplies according to schedule and to inform distributors regarding the production so to arrange
accordingly.

Number of Warehouses

Sixteen warehouses all over the Pakistan

Number of Suppliers

Dawlance have many suppliers both foreign & local but selected foreign suppliers.

Foreign Suppliers

Local Suppliers

Foreign Suppliers

Dawlance have the concept of reliability and due to satisfy their customers and for the best
quality products they import main components. To fulfill the customer’s needs and demands they
specially import main components from JAPAN, KOREA & GERMANY. Detail of components
is as follows.

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Compressor from Matsushita of Japan, with 5 pipes oil-cool mechanism for Large sizes

range of Refrigerators.

Condenser is import from Germany & (Daewoo) Korea for both Small sizes range of

refrigerators as well as Deep freezer.

Local Suppliers

Local suppliers are low cost as compare to foreign suppliers and reduce the inventory

cost as well.

Local suppliers easily manage supplies as per production schedule. For example

Dawlance provide purchase orders to suppliers 3 months before to meet production

targets.

Location of the suppliers is near to the factories DPL-1 & DPL-2. Suppliers built

inventory stock at their ends and supply components on JIT basis.

DPL Hyderabad produce large sizes of refrigerators and some other components in house

also and some local suppliers also in Hyderabad who supplies in DPL Hyderabad.

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TYPES & SOURCES OF RAW MATERIAL

Asia Industries

Simitco

Sitara Industries

Premier Classic

Nobel Enterprises

Hameed Trading

Rizwan Enterprises

Imperial Plastic

ICI Paints

Abdul Razzaq Eng

Prime Manufacturing

Detail of Raw Material

Wheel Adjustable

Defrost Tray Cover

Egg Tray

Nobe

Rubber Buffer

Poly Bags

Cold Roll Sheets

Water Inlet Pipe

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Hardware

Damper

They outsource the packing material of Refrigerators but due to the heavy wastages company has
established its own facility to manufacture that packaging material.

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SUPPLY CHAIN ISSUES

Lead Time

Lead time for foreign suppliers is as follows

Imported material arrives at port in 21 days, inventory available in DPL1 & DPL2 on

same day.

Lead time of imported material for DPL (Hyd.) is 22 days.

Lead time of local supplier is 4 -5 hrs because most of the local suppliers are situated

near factories. (e.g. in SITE area & Korangi/Landhi Industrial Area)

Suppliers Responsiveness

Supplier gives positive responsiveness because the supply according to the schedule, although
they know that Dawlance has small warehouse capacity that’s why they built stocks at their ends
and supply as per requirements.

Purchasing Prices

Purchasing prices and Percentage / Share allocation is based on the quality and reasonable price.

Quality Defects

Dawlance have both quality assurance and Post Delivery Inspection (PDI) departments and the
responsibility of these departments is to ensure the quality of both imported as well as local
components. Quality defects debited to vendor that’s why vendor ensure providing specified &
best quality.

Rejections

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Rejections would return to vendors otherwise scrap if vendor won’t collect it with in 15 days.

Cycle Time

Cycle time is varying in different products, for example cycle time for refrigerator is as follows:

Production of one thousand refrigerators per day in 24 working hours that consist of

shifts DLP (Hyderabad).

Production of 800Washing Machines per day in 12 working hrs DPL-2 (Karachi).

Production of 500 Deep Freezer per day in 12 working hrs DPL-2 (Karachi.).

Assembly of 500 Split Air Condition per day in 12 working hrs DPL-2 (Karachi).

Order Fulfillment

The plan production as per orders and after production through logistics they supplies finished
products to the distributors from factory.

Back Orders Stocks

Back order stocks some time in sessions like (Eid, Ramzan, and summer) but they plan
accordingly to manage market demand.

Complaints

Dawlance have settled different complaints centers through out the Pakistan through which
company resolve customer’s complaints in reasonable way.

Returns

Defective products returns to factory and then quality check and rectify the problem and then
defective goods sold out through bids.

Delays schedule

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There are no such delays in order fulfillment because Dawlance have 3 months stock of imported
parts and local parts are available on JIT basis.

Financial plans

Due to the Private Ltd Company Dawlance did not provide the exact figures of financial data but
approximately the figures are as follows.

SALES = 2.5 Billion

COGS = 1.5 Billion

Manpower = Up to 3000 in 3 Plants

Profits = 900 Million

Assets (Stock) = 3 months advance stock (vary in term of amount)

Competitors

The major competitors of different products are as follows

Pell in Refrigerator

Waves in Deep Freezer

SG, Hair & Chinese Brands in Split A/c.

Waves again in Micro Wave

Hair & Super Asia in Washing Machining

So many in T.V. but now Dawlance no more involve in importing T.V.

SUPPLY CHAIN

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MARKET SEGMENT & SHARE


Dawlance products are segmented in all over the Pakistan. Large as well as small cities both are
included in the segment.

Market Share Provience Wise

60
40
20
0
Sindh Punjab Balochistan Peshawar

Share

They share the share information with us which is got on the bases of market & Dealers survey
of Dawlance.

Refrigerator = 70% share in market (Major Share in Market)

Deep Freezer = 25 to 30% share in market (Waves share is a bit high in D.F)

Split A/c. = 20% share in market (Mitsubishi “MR. Slim” share is high in Split

A/c.)

Micro Waves = 60% share in market (But due to verity of brand it’s vary)

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Product Wise Share

Micro
Waves, Refrigerat
Refrigerator 33% or, 39%
Deep Freezer
Split A/c.
Micro Waves Split A/c.,
Deep
11%
Freezer,
17%

Future Growth Targets

Dawlance established plant in Landhi (DPL-2) in 2002-03 where they assemble Split A/c. But
due to the demand in market of Micro Wave they planed to assemble Micro Waves in that
factory also which an imported product is completely till now as well as they set the target of 15
to 20 % increase in sales each year.

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FLOW OF DISTRIBUTION AND CHANNEL MANAGEMENT


SCHEDULE

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Imported Material

Processing Units
DPL
DPL-1
Local Material DPL-2

Ware House

Distributors

Retailers

Customers

SWOT NALYSIS

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STRENGHT WEAKNESS

 Brand Image  Lack of exercise in providing after sales


service to customers.
 Reasonable Price
 Not have conventional SCM DEPT but SCM
 Variety of Products function is there

 Pioneer in introducing different Color &


design series.

OPPURTUNITIES THREATS

 Technological Enrichment  WTO.

 Culture Effect  Intense Competition

 People Awareness  Innovations

 Chinese Brands

MARKETING STRATEGIES AND PLANS OF DAWLANCE PAKISTAN

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Marketing strategies applied in Dawlance Pakistan. Here our main focus is to see the
effectiveness of the marketing strategies applied Dawlance for selling their products particularly
Refrigerators and other home appliances items for Just to understand the marketing strategies in
general and refrigeration market in particular industry, one should know that:

What marketing strategies ought to be?

Who are the main players in the market?

What kind of other products do they produce?

How do they promote and supply their products?

What type of competition is going on in the market?

And finally what are the marketing strategies being applied by the companies?

These are the questions to be addressed, but the main theme is the marketing strategies of
Dawlance in Refrigerators. This marketing plan is mainly divided into four parts

Marketing strategies in general.

Main players of home appliances in the Pakistan market.

Marketing strategies of Dawlance though out then pakistan for all the products.

conclusion

All the information that is presented here have been acquired and extracted from various primary
and secondary sources. In this study, best possible efforts have been made to collect the correct
and uncovered information.

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MARKETING STRATEGIES IN GENERAL

Fluctuating customer requirements and competitive forces are putting more pressure on
marketing and are demanding superior marketing strategy and tactical execution. The cycle time
from product creation, to product launch, for a winning go-to-market strategy, leaves no margin
for error.

Marketing puts the customer at the center of the organization. The organizations, which do so,
reap the profits. The idle marketing ought to be or the key steps to a successful strategy can be
summarized as:

Be Clear about Mission

The common, customer-orientated thread running through all the activities of the organization
and how we define the kind of market oriented organization we want to be.

Marketing Research

In marketing strategy some one should do know about the marketing potential for his the product
and should find out through research that:

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Who are our Customers?

What do we really know about their needs, preferences, behavior and their life

styles?

What can we offer them... at a price... that other companies do not?

How do we perform in comparison to our competitors?

How are we currently performing for our customers?

Where are the gaps, the weak points, the fudges, and the point of excellence... the

USPs (Unique Selling points)?

How are we different?

Why are we different?

How can we better delight?

How do we change?

What do we change?

How clever are we with our market intelligence?

How well is our market research working?

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  Set Strategic Aims

Market Penetration

Market Development

Product Development

Entering new Market

Segment the Customers

Consider groups who share a similar need and who will respond in a similar way.

Design a Marketing Strategy

To achieve specific marketing objectives, based (e.g.) on the Marketing mix.

Set Tactical Plans, Budgets, Programs

Assign individual responsibilities to achieve the objectives.

Monitor Progress

Measures against standards and control

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MAIN PLAYERS IN HOME APPLIANCES IN PAKISTAN

Just to understand the home appliance market, first of all we should know who the main players
in the market are? Actually there are two types of marketers:

Those who manufacture refrigerators locally.

Who import and market the same in Pakistan.

Local Manufacturers of home appliances are: Dawlance, Waves, Pel and Singer. These
manufacturers roughly cater 80% need of the market.

Imported Manufacturers of home appliances are: Super, General, Hair, Samsung, Mitsubishi, and
Siemens.

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Companies import refrigerators from their principal countries and market the same in Pakistan.
In-fact these all companies contribute only 20% of the market requirement. The above all are
direct competitors of Dawlance.

MARKETING STRATEGIES OF DAWLANCE

The marketing mix is the organization's overall offer, or value, to the customer. 'The basic
marketing mix is often nick named "the 4Ps" (product, place/distribution, pricing, promotion);
these are elements in the marketers armory — aspects that can be manipulated to keep ahead of
the competition'. Here I've explored the marketing strategies of Dawlance in terms of marketing
mix have been explored.

Product Strategy

The object of Dawlance is to provide home appliance products to all people who fall in lower
middle, middle, and upper middle class in this country such that most of the families should have
refrigerators in their home because they enhance better quality of life. Dawlance has got
products, which are as per international standards and carry all the basic features, which need in
any such type of appliances.

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Dawlance believe that whatever they provide to their customers should be durable and reliable.
All the products, which Dawlance market, are durable enough and customer can keep on using
them for quite many years without any problem. It provides its refrigerators, 3 years compressor
guarantee and 1 year chest freezer, and free service in spare parts under normal use.

Pricing Strategy

Dawlance has got around 52 models in their refrigerators and variety of models in other product
line. From the price list and discussion had with their management, it appears that they have
position their product pricing in such a way that their main focus is middle and upper middle
class. However, they have some selected range for upper class as well.

Dawlance has got a policy that their all product price should be the same in all cities and town in
Pakistan market. Dawlance bear freight cost and make their product available to their dealers

irrespective of where they are located. For this, they give uniform margin to their dealers
irrespective of whether he is big or small.

Dawlance consider pricing as one of an important element of marketing mix. It believes that their
retail prices should be uniform all over the country irrespective of whether customers buy from
Peshawar or Karachi. In order to maintain a uniform price all over the country, Dawlance bear
transportation charges and make the product available at cost price at dealer premises.

Promotional Strategy

Dawlance promotion budget is around 1.75% of their turnover. 40% spending of their budget is
Print Media, 20% goes on TV, 20% on Out door activity and balance 20% on Sales Promotion
activity. They believe that print media and out door activity help them to reach to their target
customer. Due to satellite transmission and having multi-channels, it does not pay one unless you
have very huge budget to spend on this media. On promotion, their spending is more on
consumer incentive schemes. Since it pay them and there is direct relationship between sales and
consumer. Further, it gives customer a direct benefit in shape of price reduction.

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Distribution Strategy

Dawlance has got around 800 dealers all over the country. Dawlance ensures that its refrigerators
are available almost in all appliances markets of Pakistan. They have got 80% penetration in
dealer sector. One can get very easily their product in any city or small town of Pakistan.

Dawlance has got various types of dealers according to their potential. Around 25% of dealers
are "A-class" dealers who sell over 1000 units and above per year. "B-class" dealers are those
dealers who sell from 400 units up to 999 units per year. They are around 50% in total dealer and
the rest are in best 25% of "C-class" dealers sell from 200 up to 399 units per year.

In order to provide quick and timely delivery to their dealers: they have got big warehouses
located in almost all big cities and towns. Whenever they get order from the dealer they try to

provide supplies to their dealer from closest warehouse. In case stock is not available in the
warehouse then it is delivered directly from Hyderabad Factory. The maximum delivery time
incase stock is delivered from Hyderabad Factory is four (4) days. However if supply is given

from closest warehouse then hardly it takes 2-3 hours time. They believe that, timely delivery of
their product to the dealer, is one of an important element in their success in Pakistan.

Product Cycle

Dawlance is an ISO 9000 certified company and among its mission statement. It is one of their
missions to provide quality product to their customers. Therefore, they ensure that every product,
which is delivered from their factory, must go through rigorous quality check. So that only
perfect product, free from any defect is delivered to their customers.

After Sales Services

Dawlance believes that after sales service is one of the most important elements of marketing
mix and thus give due emphasize in providing quality after sale service to its refrigerator
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customers. Dawlance has got qualified foreign-trained engineers in its team of after sale service
and also properly trained technicians and supervisors who look after service centers and provide
reliable quality after sales service to its customers.

Dawlance has got 17 its own service centers in different parts of country. Besides, they have got
34 franchise workshops to cover remote areas, where its service center doesn't exist. These are
service centers and franchise workshops cover almost 99% market of Pakistan. Wherever
Dawlance dealer is, there you'll find Dawlance workshop or either franchise workshop to take
care of service need.

In order to provide satisfactory after-sales service, Dawlance ensures that in all of its service
centers sufficient inventory of spare parts is maintained, even these are available with franchise
workshops.

Dawlance has got the policy first of all to carryout repair, if required at customer place. Incase if
refrigerator problem is not diagnosed at customer premises then it is taken to its workshop.
Whenever they get any complain, they prepare job sheets and puts its record in computer and
whenever at later date if complain is repeated, in that case they also have a history with them of

such product in their data bank. Even after five years if you want to find out from Dawlance
service center that how many times there refrigerators have been referred on account of technical

Problem to their center, they can dig out from their computer record. In nutshell, we can say that
Dalliance's after sales service workshops are very well properly organized and they work
according to international service standard. As far as service charges are concerned Dawlance
consider that it is not a profit center rather it's a support center for sales.

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CONCLUSION

From the above information, it has been analyzed that there is no comparison of Dawlance.
There are several reasons behind it. For example: Dawlance is a big local manufacturer of
refrigeration industry in Pakistan. It has got all engineering capabilities and very good finance
and of course technical know-how to produce internationally accepted quality refrigerators
locally. On the other hand other home appliances companies has got different agents in some of
the big cities of Pakistan.

Since Dawlance has very strong industrial base as well as deep-rooted marketing network in
Pakistan, they don't feel any threat from any of their competitors, either local or from importers.
Every year due to weakness of Pak Rupee, US $ cost of import is going up and thus home
appliance products are becoming costlier day by day. Therefore, they have a big challenge before

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Channel Management Dawlance
them to maintain their market share and also to maintain their reasonable growth against local
manufacturers.

All Dawlance products are made for middle, upper-middle and upper class. But mostly products
are made for upper-middle and upper class. Present market share of Dawlance products is 65%
while other companies present market share of 35% for home appliance products.

In the light of above evidences, it could be said that Dawlance is a leading company as compared
other companies, due to its dominance in the market, lower prices, and availability of spare parts
and after sale service, etc. Hence people prefer to buy Dawlance products because in many cases
Dawlance is dominant in the Pakistan market because not of its marketing strategies but least
competition by other companies. It means, it is not only the marketing strategies of any company
which plays a dominant role but it the success of product lies in the marketing strategies as well
as the policies of the Government i.e. favorable or unfavorable. As far as the case of other
companies is concerned, it is suggested that instead of depending on import it should install its
plant in Pakistan so that it may lessen its burden on taxes.

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