Letter of Transmittal:

December 27, 2011.

Mr. Syed Munir Khasru
Professor
Institute of Business Administration,
University of Dhaka.
Sir,
With due respect, we are here to submit the following report on Walton Bangladesh
according to the instructions given by you.
After going to several Walton showrooms in Dhaka and doing a thorough online
research on Walton Bangladesh, we have been quite successful in collecting necessary
background information about Walton Bangladesh. A survey among the existing and
prospective Walton 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
Md. Raisul Azam (64)
Rezwanur Rahman (68)
Syed Ashhab Zaman (97)
Nobel Haque (104)
Nazmus Saadat (115)
Section - B
BBA 19th batch
IBA, University of Dhaka.

Executive Summary:
This report was commissioned to analyze and evaluate performance and future prospects
of Walton in a growing domestic electronic market.
The research reveals that in a continuously growing market, Walton has become a reliable
name for customers. Countrywide network, inclination towards quality and dedicated
team of employees are the main causes of its success. Though it had started business with
home appliances, yet it has always been committed to satisfying customer demand by
introducing new products. Recent production and selling of motorcycle and airconditioner testifies that position of Walton.
Walton has a goal to double overall market share in the next 5 years. It has successfully
positioned itself as a customer friendly and eco-friendly company. Its after sales service
has contributed tremendously in building this image in customers minds.
Since its target market is middle-income people, the price of their products is
comparatively lower than those of competitors. This strategy helps the company greatly
in a price sensitive consumers market. In recent years Walton has increased promotional
activities through organizing various national sports events.
Further investigations have revealed that to achieve the role of market leader, it will face
challenge from foreign brands. Moreover, rapidly growing demand from customers for
electronic products may put pressure on Walton. It has adopted market penetration,
product development and market development strategy for future growth.
The report has found the prospects of Walton promising in its current position. Favorable
government policy will help it expand domestic and international markets in the future.

Table of Contents:
1. Introduction
1.1. Origin of Report
1.2. Objective
1.3. Methodology
1.4. Limitations

4
4
4
5

2. Company and Market Background

2.1. Electronics market in Bangladesh
2.2. Walton HIL
2.3. Competitor Analysis
2.4. Market Share

5
6
7
8

3. Strategic Situational Analysis

3.1. Market Analysis
3.2. Market Segmentation
3.2.1. Demographic
3.2.2. Geographic
3.2.3. Psychographic
3.3. PEST Analysis
3.4. SWOT analysis

9
9
9
9
12
12
13

4. Marketing Strategy
4.1. Market positioning
4.2. Marketing Mix
4.2.1. Product
4.2.2. Price
4.2.3. Place
4.2.4. Promotion

13
14
14
14
15
15

5. Financial Analysis

16

6. Future Growth and Challenges

6.1. Current Market Status
6.2. Challenges
6.3. Future Growth

16
16
17

7. Recommendation

17

8. Conclusion

18

9. Appendix

18

10. References

20

1. Introduction
1.1. Origin of Report:
This report was assigned by Professor Syed Munir Khasru, the Business
Communication instructor of BBA 19th batch, Institute of Business Administration,
University of Dhaka.

1.2. Objectives:

Learning a didactic approach to Business Communication.

Incorporating theoretical education with practical experience.
Gaining knowledge about the current market trend of the country.
Getting acquainted with different policies, rules and regulations of the
government on the products concerned.

1.3. Methodology:
The methodologies used in the research process for this report, were:
Data Collection:
Primary data is the information that we collect first-hand and secondary data is the
information collected by others and used by us. For data collection, we used three
approaches:
a First, we conducted some field research. We went to some Walton retail outlets
and asked the customers about their valuable suggestion and opinions.
b We searched about Walton on the Internet and found some important information
regarding their company background, product lines and promotional programs.
c We went to Walton head office and collected the annual reports for Walton
Bangladesh for the year 2010.
Surveys:
For surveys, we made a questionnaire one for the sellers and another for the buyers. The
questionnaire for the sellers contained questions about their sales price, sales volume,
customer demography etc. And the questionnaire for the buyers included questions about
their economic background, their preferences and their buying budget and frequency.
To circulate the questionnaires, we followed two approaches:
We handed the questionnaires personally to people. We went to the retail outlets
and gave the questionnaire to the people working there and collected their
answers. Then we chose some random prospective buyers and handed them the
questionnaire prepared for them. The random sampling included people from our
residential areas, our friends and the students from different departments of
University of Dhaka.

Record analysis:
After collecting the data, we recorded them. Then we analyzed them by doing the
following:
a We collected the survey answers and made charts and graphs using that data for
supporting the report.
b Then we analyzed Waltons annual reports and extracted our required figures from
them.

1.4. Limitations:

a
b
c

Though we tried our best to make a hundred percent perfect report, a few
limitations held us back. The main limitations that we faced, were
As many of the common products were barred, we had to choose one from a
limited number of options.
When we went to collect information from the Walton outlets, they were not
fully able to cooperate with us, as our required information was confidential.
There was not enough data in the websites.

2. Company and Market Background:

2.1. Electronics Market in Bangladesh
The Electronics Market in Bangladesh is an ever-rising industry. The appropriate market
size has never been determined as it is ever changing. The whole market can be separated
into several segments like:

Semiconductor Market
Electronics Appliances Market
Raw Materials and Spare Parts Market
IT Market

Walton is one of the major players in the electronic appliances market. They are also
manufacturing motorcycles alongside home appliances such as television, refrigerators,
air-condition etc.
The market of these products relies heavily on the average household income. For most
people in Bangladesh home appliances had been luxuries they, which they cannot afford,
but recently the situation have been changing. Over the last 10 years, there has been
massive economic growth in the country, which has increased the income of lower-middle
and middle class people. So the demand for home appliances has increased substantially.
If we look at the annual GDP growth of the country in the last 10 years, we can see that
there has been a steady increase.

Figure 01: Annual GDP growth of Bangladesh:

One of the main reasons of this growth has been because of the increased investment in
the fast growing sectors of the economy, which has reduced the rate of unemployment
drastically over the years.
It is evident that the increase in earning of the population has also had an impact on the
buying behavior. Middle and upper middle classes have emerged and reached a certain
level that is attractive for the importers and manufacturers. Bangladesh Bank has the
records of imports of Home Appliances over the years.
Figure 02: Import of Home Appliances (BDT):
Item
2004-05
2005-06

2006-07

2007-08

2008-09

Electrical Home Appliances

243665

236150

190548

150241

204951

At first there was a huge growth to the numbers of Home Appliances imported in the
country, but the numbers have declined in recent years, as tax holidays on imported parts
and high import tax on electronic products have made companies focus on assembling
and manufacturing their products in Bangladesh.

2.2. Walton HIL:

Walton Hi-Tech Industries Ltd (Walton HIL) is one of the best companies in the
electronic sector of Bangladesh. Walton is one of those few Bangladeshi companies that
export electronic products since most of the companies in Bangladesh import products of
various famous brands. The company was established in 1977. Since then, it has been
setting new benchmarks in production of electronic goods in Bangladesh.
The company has a yearly production capacity of 1.4 million pieces of fridge, 300,000
pieces of air conditioner and 300,000 pieces of motorbike. In its early stage, the company
used to produce home appliances. Today their product mix includes Mobile Phone,
Generators, and Motorbikes. In 2009 the company signed an agreement with the
Malaysian auto manufacturer Ageth to set up an automobile plant in its factory premises.
After meeting the local demand the company is exporting its products to Qatar, Dubai,
Abu Dhabi and Kuwait of Middle East, Ghana of Africa and India, Nepal and Bhutan of

South Asia, and U.S.A. It also wants to export its products to France, Italy, Germany,
Spain and other European countries. Walton has been successful in capturing this large
international market because of its high quality products. To ensure this high quality of
products all the members of the Walton family, both factory and administrative members,
work very hard round the year.
The factory of Walton is situated in Savar and the corporate office is at Dilkusha C/A,
Dhaka. There are 120 outlets of Walton throughout the country so that customers
everywhere can buy Walton products. Walton has a dedicated team of skilled engineers
and technical personnel from home and abroad who ensure quality products for the
customer. Because of this highly skilled team Walton can offer the customers a wide
range of products.

2.3. Competitor Analysis:

In the field of home appliances such as television, refrigerator, freezer, air-condition etc.
some of Waltons competitors are:

Competitor

Television

Refrigerator

LG

LG

General
Gree

Sharp
Samsun
g

Samsun
g
MyOne

LG

Samsun
g

Sony

Singer

Air-Condition

Panason
ic
Panason
ic

Whirlpo
ol
Most of these brands have been in this market for a long time. But none of them were
able to match the market growth of Walton in the last 3 years. Although LG-Butterfly is
the No.1 home appliances brand in the country, Walton is catching up fast.

Walton has started manufacturing major parts for the assembly of motorcycles. Right now
they hold nearly 8% of the market share. Its competitors are:

Bajaj
Hero Honda
Dayun
TVS
Singer
Butterfly

2.4. Market Share:

By conducting a survey among consumers we were able to determine peoples preference
of brands while buying home appliances and which brand of product they have bought.
The market demand of different brands of television, refrigerator and motorcycles has
been calculated by survey method. It must be noted that had the survey been centered on
middle class families in rural areas, Walton would have had a much higher market share
since these people are the main target market of Walton. Also, Since Walton is the sole
domestic producer among these brands; it enjoys some tax reduction that makes it capable
of manufacturing and selling its product at reasonable prices. This facility provides
Walton with a competitive advantage. Hence, Walton plans to target another 15% of the
market in the next 5 years and they are confident that they will be able to easily achieve
that target.
Figure 03: Preferred brand for TV

LG

Other; 9% LG; 14%

Butterfly Sony Singer Walton Konka My One Samsung Toshiba Panasonic
Panasonic; 11%
Butterfly; 9%
Toshiba; 7%
Samsung; 8%

Other

Sony; 17%

My One; 5%
Konka; 6%
Singer; 5%
Walton; 10%

Figure 04: Preferred brand for Air-Condition:

Market Share

General

LG

Gree

National

Transtec

Whirlpool Daikin Danhum-bush

Walton; 7%
American aire; 6%
General; 18%
Danhum-bush; 4%

American aire

Daikin; 7%
LG; 15%
Whirlpool; 13%

Walton

Gree; 9%
Transtec; 8%
National; 13%

Figure 05: Market Share of Motorcycles:

Market Share
Bajaj

TVS;4%
13% TVS
Singer;
6% Butterfly;
Hero
Honda
Dayun
Walton
Bajaj; 30%
Dayun;
17%
Walton; 8%
Hero Honda; 22%

Singer

Butterfly

3. Strategic Situational Analysis:

3.1. Market Analysis:
Bangladesh, with its growing population and economic growth, has huge demand for
household products. The fact that only about 60% of the country has electricity available

proves that when electricity will be available throughout the country, demand will
increase further.
As the people of this country are mainly price sensitive, Walton, being the sole
manufacturer of refrigerator, freezer and motorcycle, is very keen to meet the demand of
this large market by providing competitive prices.
Waltons primary goal is to capture the local market, as they are still behind market leader
LG-Butterfly. But they are also exporting their products. Already they have customers in
Myanmar, Bhutan and planning to expand their market to Africa.

3.2. Market Segmentation:

Segmentation is one of the most important factors of strategic marketing. Market
segmentation is one of the steps that go into defining and targeting specific markets. It is
the process of dividing a market into a distinct group of buyers that require different
products or marketing mixes. Markets can be segmented or targeted using a variety of
factor. The bases for segmenting consumer markets include:
Demographical bases (age, family size, life cycle, occupation)
Geographical bases (states, regions, countries)
Behavior bases (product knowledge, usage, attitudes, responses)
Psychographic bases (lifestyle, values, personality)
The market in which Walton is doing its business is consumer market and Walton mainly
segments its market base on Demographic, Geographic and Psychographic basis.

3.2.1. Demographic Segmentation:

In segmenting the market on demographic basis Walton mainly considers occupation and
family size of the consumer. It targets the people of middle-income level and designs its
products for mainly nuclear family.

3.2.2. Geographic Segmentation:

Walton segments the whole country in eleven zones for marketing purpose. They are

10

Dhaka North Zone

Dhaka South Zone
Dhaka South-West Zone
Chittagong Zone
Comilla Zone
Barisal Zone
Jessore Zone
Sylhet Zone
Bogra Zone

Mymensingh Zone
Rajshahi Zone

Area Managers are responsible for these zones and it is their responsibility to develop
market there. Product demand and response of the customer are not same in all zones.
Maintaining the sales in high demand zones like Dhaka, Comilla, Bogra the marketing
department is trying to increase their sales in low demand zones.
Currently, Walton has either their retail shops or dealer shop in all of the 65 districts of
Bangladesh. They have multiple shops in Dhaka and Chittagong in order to provide
maximum convenience.
Figure 06: Walton Plazas in Dhaka:

Figure 07: Walton Plazas in Chittagong:

3.2.3. Psychographic Segmentation:

Walton markets its product by using psychographic segmentation. They use lifestyle to
segment their market. For example Walton is marketing relatively cheaper CRT
Television for lower-middle income and rural people and at the same time LCD
Television for higher middle-income people. It also designs the refrigerators of different
size and capacity considering the people of different lifestyle.

11

3.3. PEST Analysis:

Political Factor:
o
o
o
o

Economic Factor:
o
o
o
o

High Import Duty on Imported Home Appliance Product

Export promotion schemes of Bangladesh Government
Tax Incentives on Import of Plants
Constant Government Support

Increase in per capita income

Growing GDP high disposable income
Increase in Spending Power
A huge prospect of a profitable export sector

Sociocultural Factor:
o Manufacturing Eco-Friendly product
o Changing lifestyle of middle income people

Technological Factor:
o Improvement in Technology made electronics cheaper
o Increased quality of produce

3.4. SWOT Analysis:

12

4. Marketing Strategy:
4.1. Positioning Strategy:
Walton has created huge enthusiasm among the consumers of its target market with its
slogan Aamader Ponnyo. They accepted Waltons endeavor of manufacturing some
electronic items like, refrigerator & Freezer and motorcycle for the first time in
Bangladesh, and are more than willing to buy a product of high quality made in our own
country. On the other hand, as a local manufacturer Walton can sell quality products at
comparatively lower price than other competitors.
It also makes its product available at the nearest possible places in each areas of
Bangladesh through Walton Plazas (own showroom) and countrywide dealers. New
Walton Plazas are being opened frequently in different places of the country for getting
closer to the customers.
Another strategy of Walton for creating a concrete place in the customer mind is its after
sales service. In order to providing the quickest possible after sales service to the
customers Walton has already established 39 Service Centers and opening more service
centers is under process. 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.

4.2. Marketing Mix:

13

4.2.1. Product:
Walton has a good number of products available in the market. The company produces
home appliances, mobile, generator and motorbike. A brief description of its major
products is given below:

Refrigerator:
Walton mainly produces home appliances. In fact in its website the company is
introduced as the pioneer in refrigerator production in Bangladesh.
Walton Refrigerator & Freezer ensures highest quality compressor, Condenser is
made by 100% copper, which lasts for 20-30 years. The most important thing is that
every spare parts including door with different color are changeable and available
everywhere over the country.
Television:
Walton produces LED, LCD, and CRT televisions. Walton Television ensures
home cinema entertainment. Walton Televisions d4ta Digital Technology is one
of the most innovative technological solutions that automatically reduces video
noise, Selects the best picture and performs fine-tuning by auto frequency
tracking technology.
Motorcycle:
Walton motorcycles are now competing with the Indian Hero-Honda and TVS
brand. The motorcycles have become famous because of the special specification
like mobile phone indicator, Digital gear display, Fuel location meter, Air shock
absorber, Remote control, Hydraulic Brake, Anti-Theft lock and Alloy rim etc.
Walton motorcycles are also fuel-efficient.
Other than these products Walton also produces Mobile handsets, generators, air
conditioners, DVD players, and microwave ovens.
Figure 08: Product Mix of Walton HIL

Home
appliances

Television
DVD Player
Refrigerator
Freezer
Microwave
Oven
Air-Condition

Mobile
Excel
Classic
Luxuria

Generator
Diesel
Generator
Gasoline
Generator

Vehicles
Motorcycle

4.2.2. Price:
Waltons main target market has always been middle-income group. SO they have been
very careful in setting their price of product. Also the fact that they manufacture their
products, it allows them to set a lower price than their competitors, as they dont have to

14

pay heavy import duty. Below is a comparison of the prices of different products of
different brands-

Figure 09: Product Mix of Walton HIL

Model
Walton
LG
10 CFT
26,200
35,000
10.5 CFT
28,100
38,300
11.5 CFT
29,700
40,600

Transtec
32,000
32,500
36,000

Figure 10: Product Mix of Walton HIL

Model
Walton
LG
29 Color TV
18,500
28,350
37 LCD TV
48,800
65,600
42 LCD TV
75,200
95,000

Sony
26,350
59,500
88,000

My One
22,700
-

Figure 11: Product Mix of Walton HIL

Model
Walton
Bajaj
125 CC
103,900
175,000
110CC
96,000
148,500
Cruiser
93,300
120,000

Hero Honda
155,000
145,000
110,500

TVS
160,000
140,500
98,000

Sharp
29,500
31,000
37,000

In all three products in which we have done market research, it is evident

that Walton is providing the consumers with the least expensive product. It
is vital for Walton as price is the only tool where they have a superior
advantage over other brands. But it must be noted that consumers in higher
income level also look for quality products. So Walton needs to find a fine
balance between price and quality as they move forward in the coming
years.

4.2.3. Place:
For making the product available to its target customers Walton use its distribution
channel. Walton generally uses its own transport facilities for reaching the product to its
120 Walton Plazas and about 700 dealers. If any dealer wants to use his own transport for
transporting Walton products from factory to his shop, he gets 1% reduction on dealer
price.

4.2.4. Promotion:
Ever since Walton started its production in its manufacturing plant, they have started a
wide promotional campaign on its product. Their tagline Amader Ponnyo reflects the
pride they take by being able to sell home appliances manufactured in Bangladesh. Right
now Walton has TVCs running in all major satellite channels of Bangladesh in peak hours
targeting their core target customers. Also they have numerous billboards and
advertisements in print media. Also their 120 Walton Plazas across the country also works
as a major advertising tool. Walton has recently started sponsoring different major sports
event in the country. Recently they sponsored their first International Cricket Tournament
and thus it allowed their brand to be viewed by millions of people across the world.

15

5. Financial Analysis:
Summary of the Financial Report of Walton for the year 2010:
Figure 12: Financial analysis of Walton HIL
Particulars
Total Sales
Cost of Goods Manufactured
Gross Profit
Operating Profit
Net Profit

Amount Tk
2,553,024,782.10
2,414,093,716.05
305,852,566.61
99,636,450.25
26,530,733.53

6. Challenges and Future Growth:

6.1. Current Market Status:
Although Walton is a growing brand, it is yet to establish itself as the market leader. In
fact it still has a long way to go, especially in capturing the elite customer bracket.
Figure 13: Market Comparison
Price
Quality
Walton
LG
Sony
Singer
Samsung

****
***
*
***
**

**
****
***
**
***

Variety

*
****
***
**
**

Distribution

***
****
*
**
*

Scope for
Growth

****
**
*
**
*

We can see from the above table that clearly overall LG leads and have a significant lead
when it comes to these values. They have been in the market for 20 years and have done
remarkably to capture nearly one-fourth of the total home appliance market. But coming
second right now is Walton. By providing the same quality in much lower price, Walton
has created an excellent brand following. They have a very good distribution system, with
outlets all over the country. But their main problem has been variety. They are still way of
the benchmark at the moment when it comes to product variety. But Walton will put more
emphasis in this sector and plan to catch the lights of LG and Sony in the next 5 years.

6.2. Challenges:

16

Establish Walton as the No.1 Home Appliance Brand of the Country

Capturing the market share of existing foreign brands
Bringing more variety in their product line
Continue increasing market share at the same rate over the next 5
years.

6.3. Future Growth:

Walton has decided to penetrate market, develop both market and product to achieve
profitable growth in future.
Market penetration: Through extensive promotion campaign Walton has set goals to
make more sales in future. Countrywide distribution system helps it achieve its goals.
Market Development: Walton is exporting its products in Middle East, Latin America and
Africa. It has plans to explore European markets also.
Product Development: Recently, Walton brought Air-Condition in market. Though it
hasnt gained spectacular market share yet, continuous customer attraction reflects future.
Expected market growth of Walton in the next five years:
Product Line
Motorcycle
TV
Refrigerator
Air-Condition

Present Market
Share
5%
8%
13%
2%

Expected Market
Share (2016)
25%
30%
25%
10%

Main Competitor
Bajaj, Hero Honda
LG, Sony
LG, Samsung
LG, General, Gree

7. Recommendations:

To establish Walton as the brand for home appliances & other electronic
accessories, some changes are needed in its strategies-

17

Switch to Market Penetration Pricing without compromising quality.

Partner with local and international OEM (original equipment manufacturers)

for elegant & sophisticated designs & equipment.

Develop gaming consoles like Gameboy, PlayStations, X-box and medical

appliances for caring old people through innovative approaches.

Customer Loyalty Program

Year long incentives and special offers

8. Conclusion:
The company has been running its business with good reputation since 1977.
Establishment of Walton HIL to manufacture Refrigerator & Freezer, Air
Conditioner, and Motorcycle etc. in Bangladesh is a milestone in the path of
success and reputation of the brand WALTON. Walton HIL is the first company to
introduce advanced research and manufacturing technologies and equipment for
household & commercial Refrigerator & Freezer, Motorcycle and Air Conditioner
etc. in Bangladesh.
For Bangladesh, Walton has become a company to be proud of in the export arena.
Walton has truly redefined Bangladesh from being a consumer country to a
producer country for home appliances.

9. Appendix

Financial Figures of the year 2010

Survey:

1. In what age group do you belong to?

15-18

19-21

22-25

26-30

30 and above

2. Currently which brand/brands of home appliances are there at your house?

18

LG

Walton

Singer

Sharp

Sony

Panasonic

My One

Marcel
Other (please specify)

3. What do you value most when selecting a brand from which to buy electronic
items?

Brand Value

Convenience

After-sales Service

Price

Quality

Manufacturing Country
Other (please specify)

4. What is your assumption about Walton Products?

Made in Bangladesh

Very competitive price

Quality less than other foreign brands

Lots of TVC

5. Walton is the only company to mass-produce electronic items in Bangladesh, Will

it make you buy Walton products instead of other imported ones?

Yes

No

6. Is there a Walton Showroom near your place?

Yes

No

7. Walton plans to produce first ever car in Bangladesh within 7-8 years. What are
your thoughts?

19

Can't Wait

Walton car! Are you Serious?

I will still remain a Toyota guy

Will be proud to ride a Bangladesh made car

10. References:

20

Tanvir Hassan
Senior Executive,
Department of Finance
Walton HIL

www.watton.com.bd

Taskin Ehtesham
Marketing Officer
LG-Butterfly

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