Professional Documents
Culture Documents
Channel Management Dawlance
Channel Management Dawlance
3 Vision 04
4 History of a Dawlance 04
5 Corporate Belief 04
6 Corporate Responsibilities 15
7 Collaborations 16
9 Production Plan 18
11 Distribution System 14
14 Supply Chain 21
15 Market Segmentation 22
17 SWOT Analysis 25
18 Marketing Plan 26
19 Market Players 30
20 Marketing Strategies 31
21 Conclusion 35
INTRODUCTION
1|Page
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.
2|Page
Channel Management Dawlance
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."
3|Page
Channel Management Dawlance
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
The customer must be given the best possible products and services.
CORPORATE RESPONSIBILITIES
Gives higher slandered of living by providing the outclass products with greater reliability and
affordability.
4|Page
Channel Management Dawlance
Implementing the first class production engineering.
Its global firm which in results enhances the companies prestige and status.
5|Page
Channel Management Dawlance
Dawlance marketing (PVT.) LTD. Retail Store Network with the brand
name of "Electric city"
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.
Name
Managing director Mr. Basheer Dawood
Employs
Management 600
Worker 900
6|Page
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
7|Page
Channel Management Dawlance
Dawlance is producing a series of products in home appliances business
Refrigerators
Washing machines
Deep freezers
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
8|Page
Channel Management Dawlance
Air conditions
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.
9|Page
Channel Management Dawlance
Shelf Strength
Durable shelves- can hold weight up to 60 kgs.
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
10 | P a g e
Channel Management Dawlance
Sales Process
Human Resource
The details of these modules and how they help in the business processes is provided as
Under
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
11 | P a g e
Channel Management Dawlance
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 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
12 | P a g e
Channel Management Dawlance
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 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
13 | P a g e
Channel Management Dawlance
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
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.
14 | P a g e
Channel Management Dawlance
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
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
targets.
Location of the suppliers is near to the factories DPL-1 & DPL-2. Suppliers built
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.
15 | P a g e
Channel Management Dawlance
TYPES & SOURCES OF RAW MATERIAL
Asia Industries
Simitco
Sitara Industries
Premier Classic
Nobel Enterprises
Hameed Trading
Rizwan Enterprises
Imperial Plastic
ICI Paints
Prime Manufacturing
Wheel Adjustable
Egg Tray
Nobe
Rubber Buffer
Poly Bags
16 | P a g e
Channel Management Dawlance
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.
17 | P a g e
Channel Management Dawlance
Lead Time
Imported material arrives at port in 21 days, inventory available in DPL1 & DPL2 on
same day.
Lead time of local supplier is 4 -5 hrs because most of the local suppliers are situated
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
18 | P a g e
Channel Management Dawlance
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
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 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
19 | P a g e
Channel Management Dawlance
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.
Competitors
Pell in Refrigerator
SUPPLY CHAIN
20 | P a g e
Channel Management Dawlance
21 | P a g e
Channel Management Dawlance
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.
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)
22 | P a g e
Channel Management Dawlance
Micro
Waves, Refrigerat
Refrigerator 33% or, 39%
Deep Freezer
Split A/c.
Micro Waves Split A/c.,
Deep
11%
Freezer,
17%
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.
23 | P a g e
Channel Management Dawlance
24 | P a g e
Channel Management Dawlance
Imported Material
Processing Units
DPL
DPL-1
Local Material DPL-2
Ware House
Distributors
Retailers
Customers
SWOT NALYSIS
25 | P a g e
Channel Management Dawlance
STRENGHT WEAKNESS
OPPURTUNITIES THREATS
Chinese Brands
26 | P a g e
Channel Management Dawlance
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:
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 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.
27 | P a g e
Channel Management Dawlance
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:
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:
28 | P a g e
Channel Management Dawlance
What do we really know about their needs, preferences, behavior and their life
styles?
Where are the gaps, the weak points, the fudges, and the point of excellence... the
How do we change?
What do we change?
29 | P a g e
Channel Management Dawlance
Set Strategic Aims
Market Penetration
Market Development
Product Development
Consider groups who share a similar need and who will respond in a similar way.
Monitor Progress
30 | P a g e
Channel Management Dawlance
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:
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.
31 | P a g e
Channel Management Dawlance
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.
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.
32 | P a g e
Channel Management Dawlance
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.
33 | P a g e
Channel Management Dawlance
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.
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
34 | P a g e
Channel Management Dawlance
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.
35 | P a g e
Channel Management Dawlance
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
36 | P a g e
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.
37 | P a g e