packweld co. pvt. ltd. marketing audit. marketing audit – packweld

Packweld Co. Pvt. Ltd.Packweld Co. Pvt. Ltd.

Marketing Marketing AuditAudit

Marketing Audit – Packweld Marketing Audit – Packweld

• Analysis of either the external marketing environment or a company's internal marketing goals, objectives, operations, and efficiency

• External Marketing audit - economic, political, infrastructure, technological, and consumer perspectives; market size and structure; and competitors, suppliers, and distributors issues

• Internal Marketing audit - company's mission statement, goals, and objectives; its structure, corporate culture, systems, operations, and processes; product development and pricing; profitability and efficiency; advertising; and deployment of the sales force

Marketing AuditMarketing Audit

• Marketing environment audit • Task environmental audit • Marketing strategy audit • Marketing system audit • Marketing productivity audit • Marketing functions audit• Marketing organization audit • Recommendations

AreasAreas CoveredCovered

• Packweld – J. M . Vasnani Engineering Co. - founded in 1949 by Mr. J. M. Vasnani

• Core business - to manufacture processing machinery for welding PVC and PP Stationery

• Recent exploits – Supplied plastic molding machinery used for manufacture of Tata Nano and Mahindra and Mahindra Xylo

CompanyCompany ProfileProfile

• Demographic– Located in the industrial area near Ulhasnagar– Well-connected by transportation mode– Major Suppliers: Mumbai, Coimbatore– Clients: All over India, Kenya, Bangladesh &

other African Countries• Economic

– Double octroi duty while importing and exporting

– No excide duty applicable– No direct effect of economic meltdown as

orders were in pipeline

MarketingMarketing EnvironmentEnvironment

• Environmental– No pollution control system required– No requirement of natural resources

• Technological – Old technology is used– No such new trends in the technology

• Political– No special law applicable– Has to follow regular factory act and

manufacturing norms– Child labor is not allowed

MarketingMarketing EnvironmentEnvironment

• Markets– Market leader in PP technology– 50-55% market share– 50% of profits from India

• Customers/clients– 300-400 clients – Clients all over India, Colombo, Kenya,

Bangladesh, other African countries– Mahindra n Mahindra, BARC, TELCO are some

of the important clients– High economic efficiency and reliability of the

machines is highly appreciated by customers resulting in brand loyalty.

TaskTask EnvironmentEnvironment

• Competitors– Only 3 major players in India– Moga electronics and Hemant company limited

strong competitors– Moga Strength - Contract based tie-ups with

clients• Distribution and dealers

– No dealers– Direct orders from the clients

• Suppliers– Suppliers mainly from Mumbai and Coimbatore

TaskTask EnvironmentEnvironment

• Facilitators and marketing firms– Minimal storage costs– Client pays for transportation facilities except for

Mumbai– In-house design team – Extensive facilities accommodating shortest lead

times.

• Publics– Suppliers pose a threat to the company as the

company doesn’t keep much safety stock– Company is trying to build up good long term

relationships with suppliers through face to face meetings, advance payments, timely clearance of dues.

Task EnvironmentTask Environment

• Objectives and Goals– Presents scenario:

• No. of clients: 300-400• Clients: Mahindra n Mahindra, BARC, TELCO, Paras

steel, Bata, Metro shoes etc– BARC has no option but to buy it only from them else

import from UK• Market share: 50-55% market share• Number of Competitors: 2

– Current Strategy:• Competitive pricing• Special discounts to local clients• Customer retention due to trust• More of Just In Time approach

MarketingMarketing StrategyStrategy AuditAudit

• Strategy

– Advertisement:• Trade fairs and exhibition• Yellow pages• Industrial magazines

– Long terms goals• Expansion plans: Aiming International markets like

Africa Kenya, Lagos, Bangladesh

MarketingMarketing StrategyStrategy AuditAudit

• Marketing Information System– There is an MIS installed in the company.– It helps in generating valuable information

required for decision making.

• Marketing Control System– There is no formal marketing activity

undertaken by the company , given the monopoly status in the market and also being established in the field.

MarketingMarketing SystemsSystems AuditAudit

• Profitability Analysis– Territory: the whole product is manufactured at

one place– Market share: huge, as there are only 2 players

in the market for high capacity– Competitive rates: entire product being

manufactured at one place.• Recommendations regarding

expansion and/ or diversification: Since it is a market leader it can think of

expansion It can use brand extension while expansion

Marketing Productivity Marketing Productivity AuditAudit

• Cost-effectiveness– Cost incurred by marketing activities:

No formal marketing department established

Target the customers via trade fairs Established in field – so no market required

– Budget allocated to such activities: Not done

Marketing Productivity Marketing Productivity AuditAudit

• Profitability Analysis– Profitability of the product on the territory,

market basis– Recommendations regarding expansion and/ or

diversification

• Cost-effectiveness– Cost incurred by marketing activities– Budget allocated to such activities– Comparison between cost incurred and cost

allocated– Recommendations

Marketing Productivity Marketing Productivity AuditAudit

• Products– PVC, PP machines

• With around a total of 60 machines– Around 60 years of experience of producing high

quality, economic efficiency and reliable products• High Brand loyalty

• Price– Price Revision after two years– Factors affecting price

• Raw materials, transportation, logistics, technology

• Profit Margin depends on type of market

MarketingMarketing Function AuditFunction Audit

• Distribution– Transportation

• Cost is borne by the client• Undertakes delivery only to Mumbai-based clients.

• Warehousing– Just-in-time production of Machines– Storage at company Galas

• Logistics– Very less safety stock of metals

Marketing Function AuditMarketing Function Audit

• Marketing Communication– Modes of Advertisement:

• Demo• Trade-fairs• Directory advertising• Personal contacts• Relations

• Sales– Demos– Order placements– Relationship management

Marketing Function AuditMarketing Function Audit

• No dedicated marketing department – As there are only two competitors– Enjoys long term relationships with major

clients

• Trade fairs, exhibition, industrial magazines for advertisements

MarketingMarketing OrganizationOrganization AuditAudit

• Go global and explore new markets– Target China, Taiwan and Western countries as

well• Diversify• Establish offices all over India

– Keep a model for demonstration• Provide training and better after sales

service• Maintain the monopoly in PP machines

RecommendationsRecommendations

• Differentiate the PVC machines• Create a dedicated marketing and sales

team• Keep innovating

– Put technology at the heart of economic development

– Innovation won’t happen accidentally. Put a structured R&D team

RecommendationsRecommendations

Thank youThank you