Академический Документы
Профессиональный Документы
Культура Документы
Marketing
BRAC University
Group 5
Tabassum Akhter
Fariha Zafor Rima
Mohammad Ismail
Section 1
Date of Submission 9th April,
2014
Letter of Transmittal
April 9th, 2014
Mr. Suntu Kumar Ghosh
Assistant Professor,
BRAC University.
Sir,
With due respect, we are here to submit the following report on Walton Mobile Bangladesh
according to the instructions given by you.
After doing several secondary market research (information from websites, articles and a
thorough online research), we have been quite successful in collecting necessary background
information about Walton Mobile and, henceforth, design a suitable marketing plan. A survey
among the existing and prospective Walton Mobile users also helped us to understand the market
trend and the consumer behavior. The following report is the result of our findings and efforts.
We appreciate this opportunity to work under you.
Sincerely,
Group 5
Tabassum Akhter - 13304131
Fariha Zafor Rima - 13304132
Mohammad Ismail - 13304022
Executive Summary
This report is prepared to analyze and audit the current marketing strategies and prepare a
marketing plan for Walton Mobile.
Our study revealed that in a continuously growing market, Walton Mobile has become a reliable
name for customers. Countrywide network, inclination towards quality and yet maintaining
affordability, and dedicate team of employees providing after sales service are the main causes of
its success.
Keeping in mind the consumer demand of different target market, Walton Mobile has build up its
product line. Since the consumer market is price sensitive, Walton Mobile has an approach of
demand/value based pricing, and charges lower prices compared to its competitors. It has also
adopted market penetration, product development and market development strategy for future
growth.
Further investigations have revealed that to achieve the role of market leader, it will face
challenge from foreign brands like Symphony. Yet, there are promising prospects of Walton in
its current position. Appropriate market plan and its effective implementation will help it expand
domestic and international markets in the future.
Table of Contents
Introduction
Company/Product Profile
Consumer behavior
Types of Consumer Behavior
Steps in the consumer buying behavior
Segmentation, targeting and positioning strategy
Market segmentation
Target market strategies
Differentiation and positioning strategies
Product Strategy
Level of product
Types of consumer product
Branding strategies
Pricing strategy
Pricing method
Pricing Strategy
Distribution or Location Strategy
Level of Distribution Channel
Distribution or Marketing Channel system
Recommendation and Suggestion
Budget, timing and control
Contingency plan
Conclusion
Introduction
The mobile phone has become an essential part of Bangladeshs customers everyday life and has
made a safe haven in one of our pockets much like our wallet that we never want to leave at
home while we head for our work. This is the dominant device that we now express ourselves
through, get our work done and share our pains and pleasures with. Though, the introduction of
telecommunication industry has been pretty late in our country compared to that of the
neighboring countries, the introduction of Citycell and GrameenPhones GSM technology has
created a boom in the cellphone industry of Bangladesh since 1997. Now a number of players,
both international like Nokia, Samsung, Sony as well as local companies like Walton Mobile and
MyOne, are battling very hard for their respective market share and the consumers.
Company/Product Profile
Walton Mobile in an elegant line of mobile phone handsets, owned by the Walton Hi-tech
Industries Ltd (Walton HIL). Found and established by S.M. Nazrul Islam in 1977, Walton HIL
has its production and assembly facilities in Bangladesh, and serves the local as well as the
international market. It is the sister concern of the R.B. Group and has its factory located in
Chandra, Gazipur. Walton is the pioneer of Refrigerator, Freezer, Air Conditioner and
Motorcycle Manufacturing Technology in Bangladesh. The company desires to provide the latest
technology based products with innovative design, excellent quality and many different models
& capacities. The product line of WALTON brand are different types of Television (CRT, LCD,
LED), DVD Player, Motorcycle, Refrigerator & Freezer, Microwave Oven, Steam Oven,
Domestic and Industrial Generator, Manganese & Alkaline Battery, Air conditioner and various
types of necessary and useful home appliances etc. Walton HIL is furnished with strong
Research & Development (R&D) Division comprising of a large team of dedicated highly skilled
engineers & technical personnel from home and abroad.
Waltons vision is Amader Ponno that means Walton ltd. is always there to help the customers
get the full assistance of communications services in their daily lives. They want to make it
simpler for the customers to get what and when they want it, and as an implementation of that
vision they are setting up many showrooms in different parts of the country. And the objective is
to emerge as a global electrical and electronics brand by introducing Made in Bangladesh
products worldwide and establish Bangladesh as an industrialized nation. With the slogan of
Walton Mobile at every hand, Walton aims in providing unquestionable quality, longer
durability and eye-popping style at a very affordable price.
Consumer Behavior
Types of Consumer Behavior:
Behavior is the decision processes and acts of people involved in buying and using products. The
process consumers use to buy products and services is different for every individual and every
category of product. Based on the degree of involvement and the degree of difference between
the brands in the product category, there are four types of Buying Behavior:
The cell phone industry is broad and includes a wide range of models having number of features
and applications to be used. Based on the product category and the uniqueness of brands of cell
phones, we can classify the buying decision behavior into two types
and working out. Marketing scholars have developed a five stage buying processes. A
consumer typically undergoes this process before buying a product.
Need recognition: The buying process starts the very moment a need or problem is recognized
by a consumer. A need or problem can be stimulated by external factors or triggered by internal
factors. A marketer requires to study the different ways by which need for a particular product
may arise. By doing so, they can easily counter the consumers need and solve their problem
through their product. In case of buying mobile phones, need may arise in two ways:
Internal factors- Consumers can face basic need to communicate because of the following
reasons:
I.
II.
III.
External factors- The consumers can be influenced to buy cosmetics or external need can
be generated by:
I.
II.
III.
Information Search: After the need or problem recognition, the consumers tend to search for
information.
Public- Customers can collect information from magazines, films, AVs of experts.
Experiential- Examining any particular model of cell phone in Waltons or any other
companys showroom or in the retail shops and judge to know more real information
about the mobile phone.
Evaluation of Alternatives: After collecting all the information gathered, consumers will then
evaluate all the pros and cons of the alternatives under different criteria:
Quality- Judge on which brands product is of better quality and also satisfies their
priorities or need.
Durability- Think about which product will last longer in a much comparative price. For
example, they may think whether a particular cell phone can be used for a long time and
is of relative price.
Price- Price is the most crucial factor that a consumer always keep in mind while buying
a product, that is it too expensive or cheap or whether is it worthy of the brand value.
Image and features- If the product is well known or reputed and has attractive solutions to
their problems, then the consumers give that product more preference.
Extra facilities- The consumers will also see if the cosmetics brand provides extra
facilities of after sale services, guarantee cards, or provides any attractive offers like free
screen protector or phone covers.
Unexpected factors- A sudden change in life style or income status due to loss of job or a
job promotion. For example, if the consumer loses her job, she might switch to less
expensive mobile phones.
Satisfied- The recognized problem is solved after the purchase of the cosmetic. It leads to
repetitive buying, spread positive image of the company.
10
Unsatisfied- Not being happy about the purchase as it could not fully satisfy the stimulated need.
It ends up portraying a negative impact on the consumers and thus on the overall market, also the
consumers lose their trust on that brand.
Demographic
Age Group
Income Group
Older/Aged
people:
Adult/ Working
Population
Teen/Younger
Generation
Low- Income
Group
Middle Income
Group
Above 50
Years Old
Less/Uneducat
ed
Mostly in
between 30-50
years old
Between 18-30
years old
Uses mobile
phone as a basic
need for
communication
Prefer simple
phones with
basic features
like phone
calls and
texting
Prefers a balance
between
multimedia,
feature and
simplicity in
usage
Prefer
advanced
mobile
features
(internet,
unique
application,
video etc. )
Very price
sensitive
Mostly price
sensitive
11
Entertainment
Walton L
Series
Walton T
Series
Walton Q
series
Information
Communication
Walton B
Series
Walton
Primo
Series
Product Differentiation
Service Differentiation
People/Employee Differentiation
Channel Differentiation
12
The Walton Mobile aims at differentiating its products from its competitors using the following
strategies:
Product Differentiation:
Form/Shape Walton introduces sleeker, thinner and lighter phone range, making it
handy for the customers to carry as well as giving them an upmarket and standard
outlook.
Features - Fast and powerful Processor, coupled with the latest Android operating system
and a variety of services and functions are offered by Walton in their latest Primo series.
Service Differentiation:
Maintenance and Repair Service - Walton provides an adept after sales service team. In
fact it is the biggest after sales servicing network in Bangladesh. Walton Mobile owns
forty-three after sales servicing points all over Bangladesh, which are ever so alive to
solve the tiniest problem also. Walton equally values its sales and after sales service for
maintaining a long and positive relation with its customer and thus retain and increase the
customer.
Channel Differentiation:
Walton Mobile is being made available in individual retail outlets (along with other
competitor brands) as well as in Walton Plazas (own showroom) and countrywide
dealers, enabling the product to have an increased coverage and wider distribution
channel
Image Differentiation:
Logo Established in 1977, the logo of Walton HIL is very well known among all
groups of consumers, and has its reputation earned as an affordable and good quality
provider of products. The logo, therefore, allows Walton Mobile to differentiate easily
from its competitors.
13
Slogan The slogan of Walton Mobile at every hand is easy to remember, catchy and
very widely publicized in order to demonstrate the vision of the company and create an
affordable image in the target markets minds.
Product Strategy
Level of product:
Branding is an established source for sustaining the competitive advantage in the marketplace.
According to Kotler (2010) brand and design are the parts of the products actual element.
There are three levels for a product/service as shown by the diagram:
The Core Product is the benefit of the product that makes it valuable to the consumers.
According to Kotler (2010) the core product addresses the question what is the buyer really
buying. So for cell phones, the core product could be the need for communication, or
entertainment or information.
14
The Actual Product - is the tangible, physical product which is required to get the core product.
At actual level the support for Walton Mobile comes through design, aesthetics, brand and
packaging.
The Augmented Product - is the non-physical part of the product. It usually consists of lots of
added value, for which you may or may not pay a premium. It is an issue after developing a
dependable core layer and actual layer, and to remain competitive in the market, a marketer
should focus more on providing augmented products. Walton Mobile provides augmented
services such as its customer care service, warranty, latest software installation services etc.
1. Convenience offerings
2. Shopping offerings
3. Specialty offerings
4. Unsought offerings
For Walton Mobile, which has many different competitors providing more or less equal features
and facilities to the customers, the consumer product could be classified as Shopping Product,
where the consumers carefully compare on suitable price, quality and style. Also, the level of
involvement is high among the consumers for the purchase of Walton Mobile because the price
is higher than the convenience products. It, therefore, becomes very vital for the marketers of
Walton Mobile to provide information through advertising, along with keeping an ideal balance
between affordability and quality.
15
Branding Strategies:
A branding strategy helps establish a product within the market and to build a brand that will
grow and mature in a saturated marketplace. Making smart branding decisions up front is crucial
since a company may have to live with the decision for a long time. There are basically four
brand development strategies, which are illustrated below:
Walton Mobiles follow the Line Extension strategy in order to develop its brand, by launching
a new, slightly different item in the same product category such as Walton L, Q and T series
cellphones. The strategy helps Walton Mobile reduce risks associated with new product
development. Due to the established success of the parent brand, consumers will have instant
recognition of the product name and will be more likely to try the new line extension. As a result,
promotional costs are much lower for a line extension than for a completely new product.
However, Walton Mobile itself is a Brand Extension of its parent company Walton HIL, and the
already established reputation of its parent company enables the new brand extension grab
market share at a quicker pace.
Pricing Strategy
Pricing Method:
Current Pricing Method: Price is the only element in the marketing mix that produces revenue,
while all other elements represent costs. Price is also one of the most flexible marketing mix
elements. Pricing is the number one problem facing by most of the companies. Prior to that, it is
16
really important to focus on pricing and come up with a pricing strategy that helps the company
to set the highest position. Walton is a Bangladeshi company. Mobile phones of Walton are now
very updated and they are trying to give the best quality. There are different types of pricing.
Such as- cost based or cost plus pricing, demand or value based pricing, and competition based
pricing. From these pricing Walton mobile company is currently following the Value or
demand based pricing. When the product price is determined based on the demand it is
considered as the value based pricing. Here, the customer expectation is the vital point. If the
customers give more value to the product then the price would be high. It depends on the value
or the demand of the product. Mobile phones are one of the basic necessities of people for
communication. In todays world people not only want to communicate through phone calls but
also use Internet & 3G calls. Customer always keeps these factors in their mind. In addition to
that, Walton is designing their phones according to the customers expectation. They are
focusing on the features & quality of the mobile while making the mobile phones. When Walton
will be able to satisfy the customer expectations they will give more value to the product. Value
based pricing is more customer driven. In this way, Walton is applying the value based or
demand based pricing.
Pricing Strategy:
There are many ways to price a product. Marketers mainly follow four types of pricing
strategies. They are
Walton mobile is following the New product pricing strategies. It is a new company in the
electronics sectors, so they have to follow the new product pricing strategies. Under new product
pricing strategies there are two factors. They are
17
As Walton mobile wants to create a new market segment of its own they are going for market
penetration pricing rather than market skimming pricing. The price charged for products and
services is set artificially low in order to gain market share. Their objective is to increase sale,
enter in the new market, increase market share. Here, marketers set the lowest or minimum price
for the services. Once this achieved, the price is increased. They are also giving high quality
within a low price.
Market penetration pricing is appropriate in two conditions. They are
Marketers should be price sensitive- As different brands of cell phones are available in
the Bangladesh market, this market is price sensitive. Almost all the mobile phone
industries are today competing to grab as much market share as possible, thus they opt to
charge low price to allow the demand law: the lower the price the higher the demand.
Therefore, Walton tries to provide their phones at a low price with equal quality as their
competitors.
When the sells will increase, the production cost or distribution cost will decrease
18
wholesaler or through a channel of distribution. Walton has a countrywide retail sales outlets and
service points network. Therefore, it can be deduced that Walton uses a one level channel
distribution as Walton is well established in the native country and thus utilises its years of
endowment and experience. Walton cell phone uses a number of their own retail shops (Walton
Plazas) with specialized and knowledgeable sales persons. Walton Mobile owns forty-three after
sales servicing points all over Bangladesh, which are ever so alive to solve the tiniest problem
also. It also has a number of distributors who make sure Walton is present in as many
independent retail shops as possible to succeed on their motto Walton at every hand. Walton
has a total of 442 exclusive distributors from the companys 18 zones across the country, out of
which 64 were rewarded as best distributors.
Manufacturer
(Walton
Mobile)
Authorized
Distributors
Retailers
Final Consumer
Brand
Showrooms
(Walton Plazas)
19
Number of intermediaries:
Many producers do not sell products or services directly to consumers but instead use marketing
intermediaries to execute an array of necessary functions to get the product to the final consumer.
These intermediaries, such as middlemen (wholesalers, retailers, agents, and brokers),
distributors, typically develop a firm committal bond that builds in the one channel or multi
channel marketing chain. The marketing intermediaries are:
1.
Intensive distribution
2. Selective distribution
3. Exclusive distribution
Walton Hi-tech Industry limited uses selective distribution, which is in between intensive and
exclusive distribution. Selective distribution involves more than one but less than mass
distribution. As mentioned above in the report that Waltons cell phones are a shopping product
and thus, the most appropriate way to elevate Waltons cell phones in the existing Bangladeshi
market is to have selective capable distributors to acknowledge the market requirement for their
products and make the products availability convenient for the consumers. For example, Dhaka
is a densely populated district of Bangladesh and thus need large number of shops to have
Walton products, that is enough products is accessible already in the market for the potential
buyers.
20
Change in Attitude: Walton is giving everything whatever Samsung, Sony are giving but
at a much lower price which can be affordable by people from any socio economic
background. However, its competitors like Symphony or My One are also doing the
same. Therefore Walton needs to do things differently. They need to make people
believe, that they will not only going to give what their competitors are giving, but they
are going to give them something different or do things differently. For this, Walton
needs to heavily invest in research and development. They should add features which
Sony or Samsung hasnt provided it, make the phones look more thin and attractive,
however, keeping a low price.
Advertisement: Walton is a home based product, therefore its cost decreases in many
ways. Therefore Walton can spend a lot on advertisement. They can do pioneer
advertisement, under which they should only make people aware of their availability.
Then, comparative advertisement, under which they can compare their product with
competitors products. Then, competitive advertisement, under which the will only
highlight the product benefits.
Further Segmentation: Market for Wanton mobile phones, should be segmented even
farther, for example, different mobiles for boys and girls. Even though, this is a risky
theory, however, if the segmentation were as per customer requirement, it would be very
catchy.
21
Approx.
500000
100000
20000
15000
115000
250000
250000
By observing the above table it can be said that if Walton spends 250000 taka per month for
their expenditures , their total cost per year would be 3000000 taka . Therefore, their sales must
be increased every month otherwise they will not be able to have profit after this kind of
expenditure.
Contingency plan:
As per recommendation, they should set their cost lower than production cost so that sales
increases. Now, if this plan does not work in terms of gaining profit, they can increase their
budget range for some times or they can go reducing expenditure in a proper manner. Then, it is
said that they should go for comparative advertisement but as back plan they should also try to
highlight their service, their quality and their market strategy so that if one fails another works.
22
Conclusively, we can say, Walton Mobile has build reputation for redefining Bangladesh from
being a consumer country to producer country for mobile phones, which gives the company a
strong edge to increase its market share in the industry. Despite having strong competitors like
Symphony and MyOne, Walton Mobile is moderately successful in getting customers attention
and grabbing the market share. It is in its growth stage and has great scope for further growth and
brand development. Appropriate strategic, tactical and operational plans at all levels of the
organization along with proper flow of financial resources will, therefore, become vital for
Walton Mobile to achieve all the objectives and recommendations provided in this marketing
plan.
References