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Project
Feasibility Report
International
Marketing Project
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“Pakistan
“When you have got that light of knowledge by means of
education and when you have made yourselves strong economically and
industrially, then you have got to prepared yourselves for your defense --
defense against external aggression and to maintain internal security”.
Dedicated
To:
THE Great Quaid
Muhammad Ali Jinnah
Copyright © 2010
Acknowledgements
First
of all, our most sincere thanks are due to our Allah, the merciful, without whose benign consent this piece of
project work would have been impossible. Our special thanks goes to our parents
and kind teachers whose help and support and special prayers went along each
and every stage.
Then of course, our beloved teacher Mr. Moin Abbas who was generous enough
to spare his precious time and was always accessible, and respected Supervisor Mr. Yawar Abbas who made himself
available every minute we met him for questions regarding to project.
Contents
Company Profile
Vision
Statement
Choice
of product
Finance Expertise Resource Time
Choice of
country
Segmentation
Demographically Geographically
Psychographics Behavioral Segmentation
Strategies
Entry Strategy Acquisition Why Acquisition
Launch Strategy
Functions
And Nature Of product
Product Line Features
Pricing Issues
Promotion
Distribution
Concluding Remarks
Cost Leadership
COMPANY
PROFILE
“HOME DECO “has a
rich history of marble, woolen masterpieces, and other handicrafts. The entire
wealth of timeless Pakistani handicrafts has survived through ages. The legacy
of Pakistani culture promises everything- beauty, dignity, form and style.
These handicrafts radiate an aura of glory, exhibit hereditary skills and show
painstaking craftsmanship.
Taking several order from other company which is handling big order, to be a sub-ordinate company which done the finishing touch.
Taking several order from other company which is handling big order, to be a sub-ordinate company which done the finishing touch.
Starting from many
of years, we are doing all in house production already. Starting from the
forming process through the finishing touch, we can make it.
HOME DECO is
selected from local needed, Asia , Europe and Middle East .
The reasons are that our products are nice, we are using quality wood, good
finishing touch, quality controlling.
We are keep developing our research and
development to catch up our client & customer needed.
VISION STATEMENT
"Most
Innovative and fastest growing trends company offering products is admired and
liked in every home every home"
“HOME
DECO”
mission is to create highest standards
of product, providing high quality.It creates and promotes modern eras with vital looks
. We will strive to grow our product, with sustainability and great scenery to surprise
the World.
The
Group caters to the premium segment of the market and conscious about the
standards of quality. So stringent are the quality specifications at every
stage, it will be a habit rather than being mere procedure.
CHOICE
OF PRODUCT
1.
Marble master pieces.
2.
Wooden pieces.
3.
Handicrafts.
We
chose this product line because Pakistan Pakistan Pakistan
a) Finance:
The
partners of the business will initially arrange financing through Equity and
make Self-financing by contributing capital in profit sharing ratios already
defined in deed made at the start of business.
Later
when business is established, the Debt financing may be introduced in business
as required by the nature of operations and working capital (WC) requirements.
As
our business is of decoration pieces made of wood, clay and marble, so we need
suitable budget for this business. For finance purpose
we have to consider the currency of UAE and make budget according to the
economical situation of UAE. So at first stage we will invest Rs. 500 million
or 23 million Dirham. So this is our approximate budget set for initial
entrance in UAE market.
b) Expertise:
The labor is highly skilled that belongs to
the interior parts of Pakistan Baluchistan . The artisans
are equipped with qualities of state of the art skills that are unique in the
sense that they are not found anywhere in the world.
Their work will depict perfection, and
expertise they possess in carvings, polishing & finishing.
c) Resources:
We
will have all kinds of resources both in the form of human and natural resources.
The human resources will contain all
the skilled labor, artisans and the persons who will be doing carvings on
decorative items.
In natural resources, we will have raw
material available in the form of marble n wood. In marble the following kinds
are available in Pakistan multan Pakistan
d) Time:
We
have spent a lot of time in the national as well as international market with
very good business and brand repute. We have captured many of international
market shares and have good time to expand our business. We are in the UAE
market situation where still no very strong competitors which gives us very
tough time. We are in a peculiar economic situation where any excessive control
on liquidity and credit expansion could result in capital flight. On the other
hand, if the expanding liquidity is left on its own, it could result in rising
costs and
prices. So it is suitable time to enter the market with a reasonable
opportunity gap.
CHOICE
OF COUNTRY:
Our customers are the
individuals that buy the goods for personal use. The people in UAE have
lavished life style because their income level is high and they always strive
for best luxurious life to live. Females especially desire to decorate their
home with decoration pieces and ready to spend more and even more for satiety
level.
But in future we can acquire
more shares in international market by having customers from other countries.
Segmentation:
1.
DEMOGHARAPHICALLY
According to a 2005 census,
the population of the UAE is estimated to =e 4,621,399, and this figure is set
to grow at about 3.833% per= annum (2008 EST.).
The
age structure of the country is as follows:
0-14 years: 20.5% (male 484,102/female 462,405)
15-64 years: 78.6% (male 2,663702/female 970,672)
65 years and over: 0.9% (male 2,244/female 14,274)
Total Median Age: 30.1 years =male 32 years/female
24.6years)
Ethnic
Distribution
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Emirate:
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19%
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width"79%"
Other Arab & Iranian:
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23%
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South Asian
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50%
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Expatriate
(include. Westerners & East Asians)
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8%
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Education:
77.9% of the UAE's population is literate;
and the literacy rate amongst males and females=is 76.1% and 89.7% respectively
(2008 EST.).
Note: literate people= are defined as those over the age of 15 who can read and write.
Population:
UAE has one of the most diverse populations
in the Middle East , as well as one of the
highest percentages of foreigners in any nation. It is estimated that less than
20% of=the population are UAE citizens. This has been brought about by the fact
hat, since the mid-1980s, people from all across South
Asia have settled in the UAE. In 2006, there were approximately
2.15 million nationals=from countries like India
Some of the factors which make the country an attracting destination for foreigners are its high living standards and abundant=economic opportunities, compared to the rest of the Middle East and South Asia.
On age base, gender base our customer are both males & females of every age, race and ethnicity because we have packages for every class of society.
Some of the factors which make the country an attracting destination for foreigners are its high living standards and abundant=economic opportunities, compared to the rest of the Middle East and South Asia.
On age base, gender base our customer are both males & females of every age, race and ethnicity because we have packages for every class of society.
2.
GEOGRAPHICALLY
Our customers wide spread in
Middle East and in future the countries that have
a rich tradition of buying decoration items that are unique.
Economic situation:
The UAE economy achieved
real growth of 7.4% in 2007 over 2006, attributed to a number of factors
including: a rise in oil prices by 13.1%, as barrel average price reached USD
69.1 in 2007, which led to a rise in gross domestic product (GDP) by about AED
698 billion.
Crude oil is a leading
industry sector which has contributed 35 % of the GDP in 2007, followed by the
manufacturing sector, whose diversified activities - whether in oil, liquefied
gas, or factories in free zones – contributed 13% to the GDP achieved in 2007.
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1 AED
UAE Dirham 1 AED = 22.9786 PKR |
=
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22.9786 PKR
1 PKR = 0.0435 AED |
Cultural aspect:
Etiquette is important here, and by making an effort to undress and local custom and culture, many doors will open for you. The culture here has evolved from a deep-rooted belief in Islam, which is more than just a religion. It is a total way of life, which governs every activity and decision that is made in daily life.
3. Psychographics
Psychographics
are based on the consumer's activities, interests and opinions, so it's
basically how they spend their time, what their preferences and priorities are
and how they feel about events and issues. Psychographic research is closely
related to psychological research, and especially when it comes to personality
and attitude measurement. This form of applied consumer research has proved to
be a valuable marketing tool that helps identify consumer segments that are
likely to be responsive to specific marketing messages.
ü Activities
ü Interests
ü Opinions
ü Attitudes
ü Values
4.
BEHAVOURIAL SEGMANTATION:
Special
occasion for the benefit quality service, speed, convenience.
User
status: Non-user, first time user.
Loyalty
status:
None, medium, strong.
Readiness
stage: Unaware,
aware, Informed, Uninformed, interested,
Desires: intending
to buy, attitude towards
Product: enthusiastic: positive, indifferent, Negative,
hostile, differentiated and undifferentiated.
Strategies:
Entry Strategy
As we are entering the UAE market first time
with popular brand in the world so we have to undergo a specific market entry
strategy. In this regard, we should have to use that strategy for our business
which support comparatively better in the market of UAE. There are many entry
strategies but we will select according to political, financial, economic and
other situations so that our over all business may not be disturbed due to
these circumstances.
Acquisition
There
are some related companies operating in UAE such as:
·
Abu
Dhabi Co.
·
ABIC Internationals.
·
DRA Product Design.
Acquisition
“a market strategy” according to our view, knowledge and survey reports is
comparatively a better entry strategy. As there are very few related companies
operating but not very strong in market share.
So
according our strategy we have acquired ABIC Internationals with many
advantages. When we enter in international market political conditions mostly
matter. As it is fact that not only political but also economical, and
financial conditions of UAE are very suitable for this business.
Why Acquisition?
We
are known as an expert in product line. We have not only manufacturing experts
but also quality crude resources. We will acquire same company name because it
reflects views and values of foreign people. We are going to hire our
manufacturing experts and popular clay, marble and wood.
On the other hand to get the
knowledge and experience about market trend and situations, we will hire
functional department employees and personnel locally from UAE because they are
well familiar of trend and traditions of UAE.
As mentioned above, UAE is
considered to be a peaceful and stable politically so our business may not be
disturbed and affected by the UAE politics. And Pakistan
Launch Strategy
(a) FUNCTIONS
AND NATURE OF PRODUCT:
Our business portfolio consisting
products made by hand by skilled persons belonging to different areas of Pakistan
Product
line:
Wood pieces
Handicrafts
Marble pieces
FEATURES:
The clients will be dealt in
an appointment that will be charged per hour. In the appointment catalogue will
be presented and then it will be discussed. The order will be confirmed and
then it will be written and signed by the clients and the founders and one copy
will be written within the client and the other one is in the hand of company.
The date of delivery and terms and conditions will be given… time to make any
change or replace of item. The order will be delivered through organization
trucks, freight charges + the clients will be dealt with harmony, humbleness
and pleasantly. In case of any misconception or confusion about any product or
any term or condition, guideline will be provided to the clients.
How
orders are placed / response time:
We give emphasis to
discussion with our clients so we get information about the requirement of the
clients after a discussion a catalogue will be presented from where the clients
have to choose their products. They have to make us write that down the items
they have selected.
(b)PRICING
ISSUE:
We deal in different
products so our pricing will be after adding our profit margins on products
then on our packages and their delivery.
Package
prices. Package
for middle class ranges. Package
for high class ranges. Package
for single item category. Charges
on conducting an appointment in case of designer Charges
for one appointment and discussion. Charges
on whole packages. Charges
on safe delivery.
(c) PROMOTION:
Our
promotion will be through advertisement on a well known website and through
brochures and by hanging some decorative items in the town. Our promotion will
be done in magazine and newspapers, sales promotion, telemarketing, Billboards
and direct marketing techniques will be used.
(d)
DISTRIBUTION:
Our distribution involves
retail outlets, initially only single huge outlet will be opened in huge cities
of UAE where income level of people is more than the average & standard
income level. And these outlets will contain all items of decoration available
in different categories. In future, these outlets will be expanded and more
retail shops opened.
Concluding Remarks
Cost
leadership:
It describes a way to
establish the competitive advantage. Cost leadership, in
basic words, means the lowest cost of operation in the
industry. The cost leadership is often driven by company
ü efficiency,
ü size,
ü scale,
ü scope and
ü Cumulative
experience.
A cost leadership
strategy aims to exploit scale of production, well defined scope and other
economies (e.g. a good purchasing approach), producing highly standardized
products, using high technology. These patterns consist in simultaneous cost
leadership, superior customer service and product leadership.
Cost leadership is
different from price leadership. A company could be the lowest
cost producer, yet not offer the lowest-priced products or services. However,
cost leader companies do compete on price and are very effective at such a form of competition,
having a low cost structure and management.
By producing high volumes of standardized products, the firm hopes to take advantage of economies of scale and experience curve
effects. Maintaining this strategy requires
a continuous search for cost reductions in all aspects of the business.
To be successful, this strategy usually requires a
considerable market share advantage or preferential access to raw materials,
components, labor, or some other important input. Without one or more of these
advantages, the strategy can easily be mimicked by competitors. Successful
implementation also benefits from:
- process
engineering skills
- products
designed for ease of manufacture
- sustained access
to inexpensive capital
- close
supervision of labor
- tight cost
control
- incentives
based on quantitative targets
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