Marketing Audit ReportON

Strategic Marketing MBA (Morning) 3 ½ Years

Session: 2011-2015

Submitted To:MR ZAIN-UL-ABIDEEN

Submitted By:Jawwad Jaskani (12)Huzaifa Ameen (09)Rana Umar Farooq (31)Muhammad Omair (26)Saifal Hussain (33)

Department of management sciences

The Islamia University of Bahawalpur

Jaffer Agro Services (Pvt) Limited (JASPL)  is a unit of Jaffer brothers is a well known and reliable name in the crop farming community of Pakistan. JAS has been supporting farmers working in fields through its pesticides, fertilizers, seeds, harvesters and consultancy services for more than 30 years. JAS’ primary focus is on the supply of farm inputs including pesticides and fertilizers and to provide consultancy services to farmers in order to increase their output. Years of working experience with the farming community along with international agriculture exposure has helped JAS identify new areas of interest, based on technological advancement and the evolving requirement of the country’s agriculture sector.

Water soluble fertilizers, Bio-organic stimulants, corporate farming and High Efficiency Irrigation Systems are some of the new ventures addressed by JAS in collaboration with the most prestigious names worldwide. By virtue of such technical affiliations, JAS is able to access the most appropriate modern technology for cost effective services and has developed the required expertise to serve the farmer community in an efficient manner.\

Jaffer Brothers CHronology

1950s: Jaffer Brothers – Mainly involved in indenting of pesticides & fertilizer for government of Pakistan.

2000: Jaffer Agro Services (Pvt) Limited (JASPL)  Launch marketing of Maize hybrid seeds.

2013: Name of JAS Agro Chemical division has changed from National Insecticides Company (Pvt.) Ltd. To Jaffer Agro Services (Pvt) Limited (JASPL)

THE MARKETING ENVIRONMENT AUDITTHE MARKETING ENVIRONMENT AUDIT

I. Micro-Environment

Economic-Demographic

1. What does the company expect in the way of inflation, material shortages

unemployment and credit availability in the short run, intermediate run, and long run?

Ans: Jaffer Agro Group imports major of its products from suppliers in Belgium and

India, so by changing Dollar price it also change its selling price of product. They rarely

face material shortages as they have sufficient inventories in their ware houses. They

have their own investment and they do not depend on the bank loaning.

2. What effect will forecasted trends in the size, age distribution, and regional distribution

of population have on the business?

Ans: Among the above discussed point of size, age and region, the regional distribution

affects the most in the Pesticides Industry. To meet this factor, Jaffer Brothers has

divided the country in three zones i.e. Head Office Zone (Hyderabad), Central Zone

(Upper and Central Punjab and KPK) and South Zone (Interior Sindh and South Punjab).

As the crops are different in each region and the climate required for the farmers is

different, their products are also different. to cover different segments a they have to

maintain a wide range of employees throughout all branches in the country.

Technology

1. What major changes are occurring in product technology? In process technology?

Ans: The major changes occurring in the product technology are concerned with the

productivity of the crops and how to increase the per acre yield of the land. Various

technological products have been introduced in the market after proper research.

2. What are the major generic substitutes that might replace this product?

Ans: Syngenta, Four Brothers, Ali Akbar Group etc, are providing substitutes of this

product.

Political-Legal

1. What federal, state, and local agency actions should be watched? What is happening in

the areas of pollution control, equal employment opportunity, product safety, advertising,

price control etc. that is relevant to marketing planning?

Ans: The regulatory authority on this company is Punjab Plant Protection and Agri

Extension Department. The chemical composition of the pesticides and fertilizers are

watched by this department, for example, this department has banned sulphur products

recently. They also focus on the pollution control and price control of the products. They

import raw material and pay import duties and Government don’t provide any type of

subsidy.

Socio-Cultural

1. What attitudes is the public taking toward business and toward products such as those

produced by the company?

Ans: According to their survey the public opinion about their product is;

“Jaffer Brothers products are highly standardized but are costly.”

2. What changes are occurring in consumer life-styles and values that have a bearing on

the company’s target markets and marketing methods?

Ans: A few years before people were not well aware of the use and benefits of pesticides

and fertilizers and cannot compare the product that were available in the market but now

the trend has been shifted to the quality products and through our distributors we have

made our product available and we give some presentations on how to use and tell the

benefits to the farmers.

II. Task Environment

Markets

1. What is happening to market size, growth, geographical distribution, and profits?

Ans: Our industry has an annual turnover of about 44 billion and it has still growth

potential as Pakistan is an agri based economy out of which 3 billion is contributed by

Jaffer Brothers. It is a nationwide company.

2. What are the market segments? What are their expected rates of growth? Which are

high opportunity and low opportunity segments?

Ans: Jaffer Brothers is an agro chemical industry. This industry has growth potential and it targets all

those people who belong to agricultural sector.

Customers

1. How do current customers and prospects rate the company and its competitors?

Particularly with respect to reputation, product quality, service, sales force, and price?

Ans: Acoording to their survey, customers rate Jaffer Agro Service as best quality

product and the prices of products are high. The services are efficient.

2. How do different classes of customers make their buying decisions? What are the

evolving needs and satisfactions being sought by the buyers in this market?

Ans: There are basically two types of customers:

a. Small Farmer:

They directly buy from dealers.

b. Large Farmers:

They buy directly from company in bulks.

The customers who need quality products and increase their yield buy our product

because we strongly believe in quality.

Competitors

1. Who are the major competitors? What are the objectives and strategies of each major

competitor? What are their strengths and weaknesses? What are the sizes and trends in

market shares?

Ans: Syngenta, Ali Akbar, 4B are the major competitors. They focus on the bulk selling

and customer easily afford their product as their products are comparatively low priced.

We are in top 10 with regards to market share.

2. What trends can be foreseen in future competition and substitutes for this product?

Ans: the competition is increasing to very much extent as just locally operating companies are more

than 100 in Bahawalpur.

Distributions and Dealers

1. What are the main trade channels bringing products to customers?

Ans: Products come through head office to regional offices and then through territory

manager to the distributor and reach to the customers.

Facilitators

1. What is the outlook for the cost and availability of transportation services?

Ans: Jaffer Brothers has their own transportation to avoid the losses on the rent.

2. What is the outlook for the cost and availability of warehousing facilities?

Ans: The only warehouse that is owned by the company is the warehouse of Head Office

in Karachi.

3. What is the outlook for the cost and availability of financial resources?

Ans: They totally relay on their own investment.

III. Marketing Strategy Audit

Marketing Objectives

1. Are the corporate objectives clearly stated and do they lead logically to the marketing

objectives?

Ans: Our mission is JAS business will grow and perform through persistent customer

services, innovation, product quality, and commitment of our employees in Agro

Chemicals, Plant nutrient solutions and Efficient Irrigation Systems.  And its marketing

objectives are in line with the corporate objectives.

2. Are the marketing objectives stated in clear form to guide marketing planning and

subsequent performance measurement?

Ans: Yes marketing objectives stated to guide marketing planning, the objectives are set

on the annual basis and in one year there are two crops season.

3. Are the marketing objectives appropriate, given the company’s competitive position,

resources, and opportunities? Is the appropriate strategic objective to build, hold, harvest,

or terminate this business?

Ans: Of course they are in line with the corporate objective and they are giving edge in

front of competitor.

Strategy

1. What is the core market strategy for achieving the objectives? Is it a sound market

strategy?

Ans: Their selected market strategies including brand names, products, logo, slogans,

quality ISO certificates, warranty, size of product, packing etc.

2. Are enough resources (or too many resources) budgeted to accomplish the marketing

objectives?

Ans: No, there are not enough resources budgeted but a small amount is reserved for the

farmer surveys and to achieve marketing objectives.

3. Are the marketing resources allocated optimally to prime market segments, territories,

and products of the organization?

Ans: yes their resources are allocated optimally.

4. Are the marketing resources allocated optimally to the major elements of the marketing

mix, i.e. product quality, service, sales force, advertising, promotion, and distribution?

Ans: yes their all resources allocated optimally to the maximum elements of the

marketing mix, i.e. product quality, service, sales force, advertising, promotion, and

distribution.

IV. Marketing Organization Audit

Formal Structure

1. Is there a high-level marketing officer with adequate authority and responsibility over

those company activities that affect the customer’s satisfaction?

Ans: Jaffer is a diversified Group active in Agriculture, IT, Projects, Machinery,

Construction and Indenting businesses. The business landscape today requires a

continued and careful analysis of the businesses and formulation of strategies at the

Group level. Strategy development and its execution have become a continuous and no

longer a periodic process, based on rapid and effective decision making at all levels. The

Strategy, Planning and Diversification (SPD) department plays a vital role to facilitate the

Group as well as the business divisions management in their long-term strategic planning

and further diversification into related industries and they are responsible for the

activities that affect customer satisfaction.

2. Are the marketing responsibilities optimally structured along functional product, end

user, and territorial lines?

Ans: Yes we have given territory manager the targets and the responsibilities and their

incentives are linked with their performance.

Functional Efficiency

1. Are there good communication and working relations between marketing and sales?

Ans: Jaffer Brothers is one of the leading company. There is a strong collaboration

between the strategies of selling and marketing to achieve maximum growth in the

industry and to achieve the targets set each year.

2. Is the product management system working effectively? Are the product managers able

to plan profits or only sales volume?

Ans: yes their managers are very efficient to achieve its corporate objective. They mainly

focus on quality and quantity. They are capturing largest marketing share of agricultural

industry.

Interface Efficiency

1. Are there any problems between marketing and manufacturing that need attention?

Ans: No till now we don’t have such issue.

2. What about marketing and R & D?

Ans: We have a separate R&D Department and we conduct continuous research for the better of our

products. Jaffer consulting is dealing with this.

V. Marketing System Audit

Marketing Information System

1. Is the marketing intelligence system producing accurate, sufficient, and timely

information about developments in the marketplace?

Ans: yes the marketing intelligence system producing accurate, sufficient, and timely

information about developments in the marketplace.

2. Is marketing research being adequately used by company decision makers?

Ans: yes we conduct marketing research for the decision making because which roduct

shuld we bring and which not, we are told by this research.

Marketing Planning System

1. Is the marketing planning system well-considered and effective?

Ans: yes, as you know this is the era of marketing we know its effectiveness so consider

it as necessary.

2. Is sales forecasting and market potential measurement soundly carried out?

Ans: to some extent it is sound.

3. Are sales quotas set on a proper basis?

Ans: proper sales forces are arranged to attain their target sales. There is different areas

and their respective managers who are responsible to meet the quota and targets.

Marketing Control System

1. Are the control procedures (monthly, quarterly, etc.) adequate to insure that the annual

plan objectives are being achieved?

Ans: as discussed earlier that there are two seasons of crops and the annual objectives

divided into two semi annually objectives.

2. Is provision made to analyze periodically the profitability of different products,

markets, Territories and channels of distribution?

Ans: Yes setting targets differently.

3. Is provision made to examine and validate periodically various marketing costs?

Ans: Yes to some extent.

New Product Development System

1. Is the company well-organized to gather, generate, and screen new product ideas?

Does the company do adequate concept research and business analysis before investing

heavily in a new idea? Does the company carry out adequate product and market testing

before launching a new product?

Ans: through research and development we make better screening of product ideas and

then try to make products that increase per acre yield.

VI. Marketing Productivity Analysis

Profitability Analysis

1. What is the profitability of the company’s different products, served markets,

territories, and channels of distribution?

Ans: Profitability varies with the areas, the area with more productivity and farms are the

source attraction and profitability to the firm.

2. Should the company enter, expand, contract, or withdraw from any business segments

and what would be the short and long-run profit consequences?

Ans: There were some products that we withdraw because of sulphur, that was banned by

the government, we continuously expanding our portfolio.

Cost-Effective Analysis

1. Do any marketing activities seem to have excessive cost? Are these costs valid? Can

cost reducing steps be taken?

Ans: All marketing functions are managed properly. Company arrange demonstrations

as needed. No extra work is carried in marketing.

VII. Marketing Function Audit

Products (and Services)

1. What products and services does your organization offer?

Ans: Fertilizers & Commodities, House hold Hygiene and decorative, Agriculture,

Information Technology and Machinery and Allied Equipment.

2. Which are the primary products and services and which are of lesser importance?

Ans: Fertilizers & Commodities, House hold Hygiene and decorative, Agriculture,

Information Technology and Machinery and Allied Equipment.

2. How does the organization make it known what its offerings are?

Ans: We advertise our products through Wall Choking, Bill Boards & Radio.

3. To what degree are these products and services standardized or tailored to meet

specific needs of individuals or groups?

Ans: Almost all of our products are imported from India and Belgium

4. Are the products or services "branded" in any way (that is, do they carry a

distinctive name or logo or are they packaged in such a way that they are instantly

recognizable as coming from the organization)?

Ans: Yes our products are branded with our logo.

6. Are there new products that are worth adding?

Ans: Yes new products adding worth in business because Pakistan agricultural country

and we try to give new products.

7. Are any products able to benefit from quality, feature, or style improvements?

Ans: We focues on quality and import the quality material.

Sales Force (People)

1. Describe the employees who interface with the clients -- how are they dressed? What is

their customary manner when interacting with customers? Other customers or

intermediaries may also have an impact. Comment on the personal appearance and

behavior of other customer groups or intermediaries.

Ans: employees at their distributions and the sale forces performing field work at

villages are trained and well discipline. They behave with farmers very politely.

2. What are the organization’s sales force objectives?

Ans: The objective of the sales force is to reach our customers and to meet our sales

objectives

3. Is the sales force large enough to accomplish the company’s objectives?

Ans: Yes it is.

4. Is the sales force organized along the proper principle(s) if specialization (territory,

market, product)?

Ans: Yes, among the regions there are territory that are in control of territory managers.

5. Do the sales force show high morale, ability, and effort? Are they sufficiently trained

and incentivized?

Ans: Yes at the start of every season the employees have training workshops and they are

motivated and able to do the task.

6. Are the procedures adequate for setting quotas and evaluating performances?

Ans: performance are evaluated on the basis of seasonal targets.

Advertising, Promotion, and Publicity

1. What are the organizations’ advertising objectives? Are they sound?

Ans: The objective of the advertising is to convey the benefits and usefulness of our

products to our customers.

2. Is the right amount being spent in advertising? How is the budget determined?

Ans: Yes of course there is a budget. The budget is determined on the basis of the targets set for the

season.

1. Are the advertising media well chosen?

Ans: We mostly use Radio and wall chalking as advertise media because our customers

are farmers.