NATIONAL COLLEGE OF COPMUTER SCIENCESA PROJECT OF UNIVERSITY OF SOUTH ASIA

Group (A)PROJECT

BUSINESS RESEARCH METHOD(“Launch of china products decreased the quality and how affects local products”)

NATIONAL COLLEGE OF COPMUTER SCIENCES

A PROJECT OF UNIVERSITY OF SOUTH ASIA

MBA3RD SEMESTER

Presented by: NAME ROLL NO.

MOHAMMAD ALI IQBAL M-85FAYAZ AHMED M-86

QAMAR JAVED SHEIKH M-89MOHAMMAD YASIR M-95

SANA TARIQ M-74 MEHWISH BATOOL M-76

ANAM BOOTA M-67

SEEMA AHMAD M-108 Presented to: SIR Mr. Abdul

Manan

Summary Our research on highly usage of China products in local market instead of local products have following points. 1) Problem Statement: “Launch of china products decreased the quality and how affects local products”

“What are the effects of china products in our local market/Manufactures?” Why China products sales increases and local products Sales decreases. Different variables are identified that help in making the theoretical framework.

2) Sampling Design: We have taken the sample of 15 respondents and use simple random sampling technique. 3) Data Collection Method: Best suited instrument is used i.e. questionnaire. 4) Findings: According to our research china products are dominantly used by people because of better quality at fewer prices but some products are also there which have low quality due to this reason some people avoid the usage of china products.

INTRODUCTION

Broad Problem Area Now-a-days people from each & every sphere of the world purchasing Chinese products excessively instead of local products. Conceptual issue: Downsizing of local products in market due to Chinese products.

Usage of China Products & its impact on Market: •High Competition in market•Demand of local product decreased•Local industry unable to compete•Low pricing strategy

PRELIMINARY DATA COLLECTION

• Data through unstructured interviews has been gathered from at least 15 People (including Shops). Each interview lasts for at least 10-30 minutes.

• Focusing & analyzing the respondent’s perceptions, attitude and behavioral responses we are able to pin point the following variables as our key findings.

PRELIMINARY DATA COLLECTION

•Cheaper Cost products•Price conscious customer•Better quality as compare as local products•No any promotional Strategy of Chinese Products•Attractive packaging & designs of Chinese products•High Satisfaction with product Price•Innovative•Different choices according to people need•Similar products with same strategy

Classification of Variables

Pluses

•Cheaper Cost products•Batter quality as compare as local products•Attractive packaging & designs of Chinese products•High Satisfaction with product Price•Innovative•Customer requirement•Psychological effect develop about products•Chinese Policies & economic changes has great impact on Pakistan economy•Similar products with same strategy

Classification of Variables

Minuses

•Any decrease in China’s economic growth level can reduce the Pakistan economy•Local manufactures unable to compete•Some Customer buy bad products (Punishment)•Price conscious instead of Quality conscious

LITERATURE SURVEY

Literature Survey

By using related databases, sources of secondary data, internet search we extract the relevant and desired information & reviewed all of the most recent articles on Pakistani People need and impact of China Products & Why china products sales are increases. 

•Low pricing strategy•No Advertising (No Promotion Strategy)•High economy level •High production at very lower cost

Literature View

• As trade between Pakistan and China crosses the eight billion mark, Marylou Andrew investigates how Chinese goods and services are impacting the Pakistani market.

• The Pak-China relationship goes way back to 1950, when Pakistan was the one of the first countries to officially recognize the People’s Republic of China (PRC). This relationship has been extended to cooperation of all kinds, not the least of which is cultural exchange, investment and trade.

• Chinese companies have invested heavily in Pakistan, and some sources are putting the total investment figure to-date at $25 billion, with the bulk of the money flowing into infrastructure projects such as roads and ports, oil and gas exploration and mining.

• Trade is another important area of cooperation, and following the Pak-China Free Trade Agreement (FTA) in 2006, China has become Pakistan’s second largest partner with bilateral trade currently valued at over eight billion dollars. The balance of trade is of course heavily tilted in China’s favor and the country’s exports to Pakistan include telecom equipment, electronics, motorcycle parts, plastics and many other items by means of the formal and the informal economy.

• Although there are many advantages to trading with China, not the least of which is the import of goods that Pakistan is unable to produce, experts say that the influx of cheap Chinese products is driving less competitive local manufacturers out of the market. Regardless of the pros and cons, the impact of Chinese goods on the Pakistan market is inescapable and in this respect, the two areas under the microscope in this issue of Aurora are the telecom sector and the two-wheeler industry.

• Chinese government has singed some sort of infrastructural development projects with Pakistan, which will benefit both countries in increasing trade and water management resources. High development percentage of China has produced a positive effect on Pakistani markets by providing cheaper goods than to American and European manufacturers. China’s products are very much popular in Pakistani markets due to their prices and different choices in quality as according to people’s need.

• Pakistan mostly gets benefits from China – Pakistan relations and agreements but there are some negative effects of this relationship on Pakistani economy at micro-level. Pakistani local manufacturers are unable to compete with Chinese manufacturers with respect to price and quality as Chinese manufacturers are producing goods at very low price than local Pakistani producers. Some local Pakistani manufacturers are changing their businesses, as they are unable to continue manufacturing because Chinese products are still cheaper in their markets. Government of Pakistan is also providing facilities to those traders, which are doing business with China. Due to these reason small Pakistani manufacturers are suffering badly.

PROBLEM STATEMENT

A clear, precise and concise statement of the issue that is to be investigated with the goal of finding an answer or solution. So, our problem is that  •“Launch of china products decreased the quality and how affects local products” •“What are the effects of china products in our local market/Manufactures?”

THEORATICAL FRAMEWORK

Theoretical framework comprises of following steps: •Identification of Variables•Relationship among variables•Nature & Direction of Variables•Explanation how we consider this relationship may exist.•Schematic Diagram

1- Identification of VariablesIdentification of the dependent, independent and intervening variables have been done in the theoretical framework. •Dependent Variable: Extensive use of China Products •Independent Variable: Low price Strategy

Price conscious customers Middle & Lower level customers MarketDifferent Choices according to people need Similar Products

•Intervening Variable: Cheaper cost

•Moderating Variable: Low pricing strategy

Price Conscious

2- Relationship among Variables• Due to low pricing strategy of Chinese products the

sales of Chinese products enhanced because Chinese products still sold at cheaper cost & quality and our local customer are price conscious instead of quality conscious they can fulfill their need within the current income, in addition these factors local manufactures has decreases their products sales and Chinese products sales increases day by day local customer has price conscious and want to fulfill their needs in very lower cost so these variables having direct relationship with the dependent variable and also among themselves like multi-functional products and similar products variety range.

3- Nature & Direction of Variables

• The variables influences may be positive or negative like low price strategy, similar and multifunctional products gives high satisfaction to customer with their needs. However, its negative impact on our local manufactures products because local products are costly due to high rate of raw material, product promotion and high cost labor. Intervening variable (Cheaper cost of products) enhance the sales of Chinese products.

4- Justification for the Existing Relationship

• By considering all the materials we get from secondary data sources and by interviewing with targets audience analyze and then decide that the relationships exist among the variables. Here we can say that cheaper cost, low pricing strategy with similar & multifunctional products (Price conscious customer) is basic element to increasing sales of Chinese products and this variable may act as moderating variables.

5- Schematic Diagram

INDEPENDENT VARIABLES DEPENDENT VARIABLE 

Price conscious customer Middle & Lower level CustomersTarget Market Making Products according to people need High usage of Chinese Products Similar & Multifunctional Products

Low Price Strategy

Cheaper Cost

INTERVENING VARIABLE  Price Conscious People

  MODERATING VARIABLE

 OBJECTIVES OF RESEARCH

• We all are acquainted with the information that why Chinese products sales & usage increased in last 10-15 years. A hefty community of middle & lower class can purchase cheaper cost products due to their low income and satisfaction. This indispensable objective of pour research project was sort out the reasons why launch of Chinese products affect our local market/ local manufactures product? Why each & every age group peoples prefer to purchase Chinese products? Why customer can purchase Chinese products instead of local products?

RESEARCH DESIGN

Design Strategy

       Category   Description •Research Type * Correlational •Study Setting * Non-Contrived •Purpose of Study * Descriptive •Time Dimension * Cross Sectional •Unit of Analysis * Individuals

Measurement

Scaling

Data Collection Method •Questionnaire

Our questionnaire consists of 12 questions (6 close ended & 2 open ended)

•Questionnaire design

i-Simpleii-Relevantiii-Lengthy

Response Formats •Structured Formats

Questions are prepared by using levels of measurement•Nominal Scale Group•Ordinal Scale Group•Interval Scale Group•Ratio Scale Group  •Unstructured Formats

Open ended questions is asked at the end of the questionnaire

SAMPLING DESIGN

 •In sampling design, we have taken the sample of 15 respondents. The sampling technique used here is simple random sampling i.e. (Probability Sampling)

•Interviews were selected on random basis from the population to avoid biasness and encourage probabilistic response. So, we have used simple random sampling.

SUMMARY OF FINDINGSFrom our data analysis we have summarized the following points: • 60.2% people income is Rs.200 PKR/day they can purchase 

Chinese products because products are cheaper.

• 55.7% purchase in given income because Chinese products have cheaper cost. 

• 40% people used Chinese products for their personal needs.

• 33% people purchase Chinese products according to product multi-functions & similarity of products.

 • 67% people purchase due to low price range, Similarity with local 

products.

• 63% people purchase same attributes but on low price.

PERSONAL LEARNING STATEMENT

• While conducting this research project, we have learned how to work collaborate, how to communicate with different individuals, how to collect analyze the data and right conclusion form it.

• In spite of all this the major change that we observed in ourselves was that we have gained so much confidence with an added value of curiosity of looking and critically analyzing the areas of interests.

CONCLUSION

While conduction this research project, we collect data about Chinese products sales in our local market. The basic thing is that Chinese products cost is cheaper because economy level of Chinese industries are very high and Chinese raw material cost is very cheaper also Chinese labor cost is very cheaper . So, due to cheaper cost products china grasp our local market because the Chinese market analysts knows what Pakistan’s people needs and Pakistani customers economy level and they are making goods on very low price strategy.

Pakistani local manufacturers are unable to compete with Chinese manufacturers with respect to price and quality as Chinese manufacturers are producing goods at very low price than local Pakistani producers. Some local Pakistani manufacturers are changing their businesses, as they are unable to continue manufacturing because Chinese products are still cheaper in their markets.

Analysis

Chinese Product Quality Analysis

Price Analysis

Appendix 

Questionnaire

Questionnaire(Please chose the appropriate option)

1)     What do you think about products image of china in local market.

i- Excellentii- Very Goodiii- Goodiv- Bad 2)     According to Quality Chinese products are i- Excellentii- Very Goodiii- Goodiv- Bad 3)     How much local products sales decreased due to Chinese products.

i- Very muchii- Averageiii- Normal

4)     What do you think about price of Chinese products? The price is

i- Very Highii- Highiii- Reasonableiv- Low

5)     How much you are satisfied with Chinese products.

i- 25%ii- 50%iii- 75%iv- 100% 6)     Why you buy Chinese products instead of local products. i- High Price, High Qualityii- High Price, Low Qualityiii- Low Price, Low Qualityiv- Low Price, High Quality

7)  “Launch of china products decreased the quality and how affects local products” Please give your kind comments on this statement. •…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 8)  “What are the effects of china products in our local market /Manufactures?” Please give your kind comments on this statement. •……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Unstructured Questions

1) How china know about the demand of our people? 2) Why we purchase Chinese products? 3) Chinese products are costly instead of local products? 4) Do you think Chinese products are bad? 5) How china captured the quality & quantity of products? 6) Why Chinese industries innovative? 7)  Why Chinese economy is high?

Unstructured Questions

8) Why in China labor cost is cheaper? 9) Why in China raw material cost is cheaper? 10) Do you think china advertise their products in our local market?

11) Why china doesn’t advertise the products in our local market? 12) Do you think in future china will captured our whole market?

13) Why local products are costly? 14) If you are rich then will you purchase Chinese products?

THANK YOU