DAEWOO EXPRESS

PRESENTED BY
Shehar Yar Hussain Olakh

INSTITUTE OF SOUTHREN PUNJAB MULTAN

TO THE PEOPLE WHO HAVE WORKED
TEDISIOUSLY THROUGH THE AGES TO
UPHOLD THE PRINCIPLES
OF DETERMINATION, COMMITMENT AND
DEVOTION FOR THE SAKE OF HUMANITY.
 TABLE OF CONTENTS

• Executive Summary.
• Daewoo in Pakistan.
• Services.
• Special Features.
• SWOT Analysis.
• Marketing plan.
• Marketing Mix.
• Conclusion and recommendation.
 EXECUTIVE SUMMARY

The diagnostic study on DAEWOO EXPRESS bus service indeed an informative one.
DAEWOO came in Pakistan for the construction of motorway [M-2] project. Then they
were asked to operate there inter city bus service that was from Lahore to Islamabad. The
government of Pakistan was proposed this on November 11 1999, DAEWOO started inter
city bus service with initially 20 buses, which was from railway station Lahore to Chungi
Amar sadhoo. Then they gradually increased there fleet and currently they are operating
with 70 buses. DAEWOO is facing sever compition with Niazi express. Other frenchise
companies like NEW Khan Metro, Premier are also indirect competitors of DAEWOO.
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
 GENERAL INFORMATION

• Mar. 22, 1967: Established as Daewoo Industrial Co., Ltd

• Jan. 1, 1982: Merged with Daewoo Development Co., Ltd;

• 1998: Ranked 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.
• Organization: 10 Division, 51 teams
 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.
 DAEWOO IN PAKISTAN

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. Daewoo Pakistan Express Bus Services
Ltd. was incorporated as a public ltd. company by shares with the object of engaging in
transportation
 DAEWOO IN PAKISTAN

business. Their detailed description activities are:

• To plan, survey, design, finance, construct, own, operate and maintain bus services.
• To carry on the business of transport of goods, mails, passengers, animals from place to
place either by air, by land or sea whether inairplanes, motor-vehicles, cars, ships or in any
manner what so ever
• To indulge in higher transportation services in all the parts of the world.
 DAEWOO IN PAKISTAN

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.
 DAEWOO IN PAKISTAN

Services:
There are two types of services that Daewoo is providing in Pakistan which are as follows:
• Express Bus Service
• City Bus Service
 DAEWOO IN PAKISTAN

• Express Bus Service

This is the inter-city bus service of Daewoo International Corporation in Pakistan.
• Major routes:
• Lahore Islamabad
• Lahore Faisalabad
• Lahore Multan
• Rawalpindi Murree [wagon]
 DAEWOO IN PAKISTAN

• City Bus Service

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
 SPECIAL FEATURES
DAEWOO EXPRESS
• Punctual departures and arrivals.
• 24 hour service.
• Computerized ticketing.
• Courteous hostesses.
• Armed security guards.
• Expert Drivers.
 SWOT ANALYSIS

Strength Weakness

SWOT

Opportunity Threats
 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 TrainingProgram
 SWOT ANALYSIS

• Weaknesses
1.Lack of an extensive transport network
2.Over crowding of vehicles
3.Insufficient marketing intelligence
 SWOT ANALYSIS

• Opportunities
1.More buses, routes and agreater range of transportnetwork
2.Better management of available resources
3.Innovative Marketing
 SWOT ANALYSIS

• Threats
1.Well established competitors
2.Government policies
3.Fluctuation in fuel prices
4.Up coming companies
5.Intensive disturbances on there roads
6.Non-availability of spare parts
 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 qualityand 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.
 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.
 MARKETING MIX

• PROMOTION
Effective marketing remains the hallmark of Daewoo as a company involved in supplyingservices 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.
 MARKETING MIX

• 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.
 CONCLUSION AND RECOMMENDATIONS

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 cityand intra city routes and buses as well as
increasing the range of transport services.
 CONCLUSION AND RECOMMENDATIONS

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 theno. 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.
I was quite shocked to know in my meeting with Executives of Finance and Marketing of Daewoo, Pakistan
that no advertising 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.
 CONCLUSION AND RECOMMENDATIONS

• 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.