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Orient electronics
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Principle of MARKETING
Muneeb Allah Rakha M14BBA073
KashifMajeed M12BBA078
HARISALI M14BBA076
TO:
MISS MEHWISH KHAN
Marketing Analysis of OrientElectronics
HAILEYCOLLEGE OF BANKING &FINANCE, UNIVERST
OF THE PUNJAB LAHORE
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instituted. It was the first Private Limited Company of Orient Group of
Companies. The company started importing modern photography papers
and films in Pakistan and Mitsubishi Corporation of Japan Orient
Electronics Pvt. Ltd, established in 2005, is one of the fastest growing
consumer electronics companies in Pakistan. With a wide range of home
appliances, including Air Conditioners, Refrigerators, LED TVs, Water
Dispensers, Microwave Ovens etc., the company is proud to introduce
modern technologies in the industry at a very affordable price. A
dedicated workforce, professionals and the inspiring management
leadership of Orient Electronics have powered the company to pursue its
vision and mission which lead to innovation.
orient cover its way of progress through different segment of years.
1957 – 1980
In 1957 in Lahore Mian Muhammad Fazal set up a small photography
business.He worked as sole proprietorforalmost 18 years until his elder
son MianTalatMehmood joinedhim in 1975. Orient also started importing
and expanded to nationwidedistribution ofphotographicproducts.
1980 – 2000
In 1983 Orientcolor labs (Pvt) Ltd wasbecameits major business partner. In 1988
M/S Orient Enterprises came into being. The primary business of Orient
Enterprises was importand sale of photographic cameras of latest technology.
Main supplier of these products was M/S Yashicaof Japan. The company also
ventured into lighting business in 1999 and started importing goods fromM/S
Osramlighting of Germany. M/S Adnan Corporation was setup for facilitating this
business.
2000 – 2010
A dealership agreement with MitsubishiElectric in 2000 entered the company in
home appliances business and split Air Conditioners were introduced in the
country for the firsttime. In 2005 governmentimposed heavy duties and taxes on
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imported CBU to promotethe local industry. OrientGroup of Companies decided
to set up its own manufacturing facility by forming a new manufacturing company
with the name of Orient Electronics Pvt Ltd. Strategic partner, for setting up the
facility on almost 250 Kanals, was MitsubishiElectric that provided technical
guidance for purchaseas well as installation of machinery. Initially AC assembly
line was installed in firstphasebut with the passageof time other products like
microwaveovens and water dispensers wereincluded in the company’s rangeof
products. Assessing themarketrequirements Orient Electronics PvtLtd.
introduced refrigerator in its productline in 2009.
2010 - 2016
In 2011 Orientestablished a research and development center by the name of
“Innovation Center”. Itwas the first center of its kind in Pakistan. The company
changed its complete outlook in 2012 with the new brand idea “Live in
innovation” and introduced World’s 1stGlass Door Refrigerator with embedded
LED TV. In 2013 Orientsigned dealership agreement with M/S Midea Electric,
China’s largest home appliances producing company. This brand name is being
marketed in Pakistan by Orient as Media Home Appliances. 2014 was the year in
which energy saving products werelaunched by Orient. Products likeAndroid LED
TV and Invertech along with a number of other highly energy saving products. The
firstSmart Air Conditioner of Pakistan was launched in 2014 by the name of
Econotech. In 2016 OrientInvertech was upgraded to OrientDC Inverter Heatand
Cool. The AC has features like eco-friendly operation, heat and cool function and
low voltage operation.
Vision
Our vision is to be an innovative company that is driven by modern and cutting
edge ideas and concepts. We work and rework on ideas that could lead us to
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providing convenient, durable, lasting and innovative consumer electronic goods
to our valued customers.
Mission
Our mission is to lead the consumer electronics goods industry in the country
with quality products. We aim to work on ideas that lead to innovative products
resulting in a user friendly experience for the customer. Our products are
constantly evolving to meet this objective.
Core values
Customer focused
We provide according to customer need&budget.we deliver goodhome
apllinces
Deliver on commitments
We provide our products on commitments.
Passion for excellence
Customer satisfaction is our passion
Live innovation
Inventing new things is our strategy
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slogan
"Live in Innovation"
Products:
Fridge
Orient introduces world’s 1st
glass door refrigrators
Key Features
Low Voltage Operation, No stabilizer required
Detachable Gasket
Auto DefrostFunction
Solid Freeze
Scratch less Glass
Led
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At Orient, striving for the “perfection element” is believed to be a normnot a
target. That being said, the company has not only reached sublime heights in a
surprisingly shorttimeperiod it has also been trying to maintain and further
improveon the quality of products that go by their name. Having been
established for over a few decades now, OrientGroup of Companies (OGC)
jumped out of nascence with a spark; creating a customer base that has been
rising with unparalleled steepness. And now, the company has decided to take yet
another leap in the field of home electronics! Today we presentto you our
symbolof excellence; Orient LED & LCD TVs!
Coming with a way better design than any other TV in the same category, these
indigenous machines are going to be a major attraction to your eyes. The LED TV
comes with one of the mostexpensive stands being provided in the market for
this category, the crystalstand, which gives a sleek and expensive look to the TV.
Needless to say, this in itself does justiceto the quality of the product.
OGC, doing whatit does best, has made surethat the productcomes loaded with
added features along with the standard ones being provided in the market. Such
attempts at staying a step ahead of others have given it a superior edge over the
rest. Besides a much better picture quality, Orient TVs come with the latest
softwaremaking it very user friendly and free fromslip-ups. A handy gadget that
is easy to get used to and has all that it takes to be your pick of the week! They let
you enjoy greater connectivity features than any other productin competition
with added plug and play options like the USB and HDMI ports. Both the LED and
LCD TVs support24 differentformats of Video, Audio & Imagery, being the
highest count of supported formats in the samecategory of televisions!
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Waves
Board of Directors
Mian Muhammad Fazal (Chairman)
MianTalatMahmoodFazal (Managing Director),
Mian Ahmed Fazal (Executive Director)
MianZubairFazal (Director Photo Division)
Mian Abdul RehmanTalat (Director Marketing)
Mr. HomaeerWaheed (Director Operations)
Technological partnerships with foreign top class brands:
We are not distributors; weare having technological partnerships with foreign top
class brands to bring that technology in Pakistan. As far as our own brand is
concerned, we’reapplying the same kind of technology to produce high quality
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products with affordableprice. This creates our brand serving to the consumer in
a different segment.
Partnership with foreign companies like Samsung:
As mentioned already the partnership with other brands is a
technological transfer partnership. To create their brand image in
the market.
Target market:
Middle East is our mostimportant target market. Because the products we are
making work very well in extreme temperatures and severeweather conditions
which is why our products are mostsoughtafter in Middle Eastern countries and
in Africa.
Household appliances& offices
Orient is a symbol of innovation in Pakistan and one of the fastest growing
consumer electronic companies in Pakistan. With a wide range of home appliances
the company has introduced modern technologies in the industry at a very
affordable price. Orient products can be accessed from Orient Center.
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Industry:Industry oriented education is an approach to learning from an
industry perspective.The problem with this traditional methodology of learning is that there is no
close relationship with industry requirements
Compete in electronics market
Size of organization
We have a very valuable human resourcewith qualified professionals and
technicians. Our manufacturing unit is situated in Lahore (26-KmMultan Road)
with state-of-the-artproduction facility and assembly lines. We strictly follow the
international standards in manufacturing and assembling our products making
surethe safety of our workers.
Technology adoption
Orient uses latest technology that consumeless electricity. Because the price per
unit of electricity is very high in Pakistan.
Price unit
Price per unit of orient is affordable.
Distribution model
Company
Sales office & dealers
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BCG Matrix:
The BCG matrix categorizes brands according to two parameters, the rate of
market growth and the relative market share. There are four categories under
which brands may fall:
Star: High market growth & high relative market share.
Cash cow: Low market growth & high relative market share.
Question mark: High market growth & low relative market share.
Dog: Low market growth & low relative market share.
STAR
Dc inverter air
conditioner
QUESTION MARK
Mobile phone+tablets
M
A
R
K
E
T
G
R
O
W
T
H
HIGH
LOW
RELATIVE MARKET SHARE
HIGH LOW
CASH COW
Glassdoor refrigerator
DOG
Vacuum cleaner
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4 p’s concept
Product
Fridge,led,splitac,dc ac,washingmachine&vacuumcleaner
Price
Price of our productis reasonable.lowestpricein Pakistan.
The obviouspricing objectivesof orient
electronicsare
• Maximizationof Profits
• To achieve the target returnandtargetedsales
• Maintainthe Market share
1. Orient is the best brandin the market.
2. Orient products consumeless electricity.
3. Secondreasonis that orient target market is upper tier.
4. And tosome extendupper tier of middle tier. But paying more for orient,
customer feels value.
5. If we compare the price of orient withother local brands there is small
difference.
6. As far as quality is concerned, by paying more customers is not worried
about the quality.
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Promotion
The company is promoting its product throughthe following modes
• Advertisement
• Public Relations
Ramadan Ration Pack Distribution Activity
Being a gift directly fromheavens above; Ramadan surely reflects Allah SWT’s
divine and benignant countenance upon Muslims all over the globe. With
blessings flowing like a never ending streamGod opens up his doors of mercy
even wider for His beloved Prophet’s (SAWW) Ummah. Itis common knowledge
for every believer that in this holy month, the doors of wrath are closed down and
replaced by an abundanceof earnings, wealth and prosperity. Wishes aregranted
and prayers areanswered as man is broughtnearer to the Creator by the
Creator’s own will –for this is the month when Allah’s word; The Holy Quran was
revealed. Orient Group of Companies (OGC) wishes you a very happy month of
blessings!
Since the early years of the company, welfare work has been valued as a corner
stone in the company’s philosophy. Orient has been working to fulfill their
corporate social responsibility demands for over half a century. It is a regular
practice for the top level management to devote time and resources for this
benevolent cause every now and then.
Keeping in line with the irresistible image of OGC in this matter, the company has
been undertaking numerous social welfare activities. Since years, OGC has been
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distributing free Ration Packs to its employees every month. The packs include
enough rations to last for a complete month and include everything for the use of
an average household’s kitchen. The employees falling under the minimum wages
category are greatly helped financially throughout the year. The rations packs
include; cooking oils, sugar, rice, wheat, 3 different types of pulses, tea and
roohafza.
In the Holy month of Ramadan the company extends its hand to deserving
families other than those on its payroll as well, thus it’s not only the employees
who benefit from this noble cause. The surrounding areas of the factory are
inhabited by a large number of deserving families that are given the ration packs
free of cost throughout the month of Ramadan. This year OGC has decided to
supply families with these free ration packs on different dates spread over the
month of Ramadan at as many as 14 different sites adjacent to the factory.
Understanding the critical economic condition of our country and its devastating
impact on the lives of people living around the poverty line; this is a
commendable effort. Islam, being a religion of peace mandates care and affection
towards the less privileged and OGC has always been a step ahead of the rest in
following this. The top level of management wishes that God almighty continues
to shower the company with its blessings so that they can continue to make lives
easier for people in Ramadan and send them home with smiles.
• Sales Promotion
Orient center wedding offer
Ever friendly and ever considerate towards its customers, Orientfamily never lags
behind in doubling up the joy of its customers on such occasions. This one of a
kind offer brings you numerous prizes at every corner of Pakistan. With Orient
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Centers located all around the country, the company has launched a Wedding
Offer for all the customers who shop at Orient Centers. And the numerous lucky
draws being held at Orient Centers haveincreased the chance of winning prizes
by a manifold.
The method is simple, users justneed to go and shop for their marriageat the
named Orient Centers, fill up their warranty card and drop it in the lucky draw
ballot to get their name entered into lucky draws. Begetting never-seen-before
prizes like wedding function dinner for the guests, return tickets of Dubaifor the
couple and not to forget dozens of Orient appliances; this offer is a mustget!
Itis worth mentioning here that Orient group of Companies (OGC) has set up
Orient Centers all over the country to facilitate customers in reaching genuine
products, OrientCenters being Franchised Brand Shops, provideour customers
with the trustthey need in the productquality. It’s a double shotfor users; since
the offer is available at dozens of Orient Centers. And in case you don’t know
whereto go to get a chance at the prizes, do visit the Find Us section of our
website, our storelocator will help you choose the best option to go and shop
from.
As we all know, the marriageseason lasts for months, the company has decided
to take the Wedding Offer to the whole length of the season, good news for
customers who are still planning their shopping; this offer is valid for the whole
month of November!
We have added the prize details for our customers so that you know how
lucrative this offer is:
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Wedding function dinner
Return ticket to Dubai for a lucky couple
Orient LED 22” – 1 Prizefor every Orient Center
Orient MicrowaveOven – 1 Prizefor every OrientCenter
Dinner for a lucky couple – 2 Prizes for every OrientCenter
Knowing how to create a customer base in the marketare the trademarks of a
company with brighter prospects, OGCis all that and a lot more. Generous
towards its customers and always looking forward to be a part of its customer’s
glee, Orienthas made a place in the market that is irresistible. The wedding offer
is a testimony to that.
Hurry up and get your name entered into the lucky draws, this might justbe your
lucky day!
• External Communication
Air Port Hospitality Program ForHujaj-e-Karam
Orient Group of Companies (OGC) being at a position where a lot is expected from
it, does not limit itself to the sole purposeof business making. Itis a matter of
policy for OGC to meet the corporatesocial responsibility requirements with rigor
and enthusiasm. Orienthas always had a hand to play in this matter but the
history of their charity work goes way back to the formations of the company and
since then, it has been a regular practice at Orient to be of somegood to the
public in means other than their business.
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This year, OGCtook up a task that was notonly one of its kind but a humongous
one at the same time. At the auspicious occasion of Hajj, OrientGroup of
Companies reach out to the respected pilgrims at the time of their departure
towards the Houseof God. Orient set up a campaign in which lunch boxes were
distributed to the Hujjaj-e-Karaamas they awaited their flight towards Makkah.
Around 25000 pilgrims werepresented with the packed lunch boxes.
The Haji Camp which was traditionally set up at the Lahore railway station had to
be closed down and at this point OGC stepped forward and arranged for a
temporary HajiCamp at the Old AirportLahore. Special permission was sought
fromthe DefenseMinistry as well as the Civil Aviation Authority for this set up.
Both of the aforementioned bodies very generously allowed Orientto go through
the campaign and so a sitting arrangementfor 500 people was made at the old
airportunder OGC’s supervision. Thecompany tried their best to cater the needs
of all the pilgrims and so they wereprovided with fans to kill the heat. An
abundantsupply of bottled mineral water was presented and fridges were
installed to keep the water and food cool as the Haji’s awaited to board their
flights.
Insidethe departurelounge of the Allama IqbalInternationalAirport, OGC
contracted the airport staff to help distributethe lunch boxes to every pilgrim
boarding a flight fromthe airport. The satisfaction of our respected pilgrims is
OGC’s priority, thus for the making and packing of the lunch boxes, Orient had
contracted the well reputed private food chain.
The whole campaign, solely funded by OGC, lasted for a complete month during
which Orient’s staff worked tirelessly for the comfortof the pilgrims who often
face difficulty due to the crowd at haji camps and the airportterminals. Whether
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it is becauseof management failures or a general pressuredue to the large
number of pilgrims going for hajj, mostof the pilgrims have complained in the
past aboutlack of proper food or unavailability of resting spaces at the haiicamps.
This was the sole reason why OGCtook to sharethe burden and tried to satisfy
the pilgrims for the basic complaints about food and rest areas. Throughoutthe
whole month OGCappointed 8 waiters on a 24 hour duty justto cater the
pilgrims. One security guard stood in place guarding the camp throughoutthe
month and 2 of OGC’s own employees were assigned to supervisethe whole
campaign for the complete tenure.
The campaign in itself was huge, spanning over more than 30 days with a lot of
man power and a generous outflow of funds. But of course, God has blessed the
company in return for all such efforts that they have made so far. The pilgrims
were very pleased at the treatment they got, which is a rare case considering the
history. Mostof them were of the opinion that they never expected such
arrangements for them. Sending around 25000 peopleworth a smile on their face
when the depart to the Holy land is a something that surely begets huge returns
fromAllah Almighty.
The campaign was a complete success MashAllah and following their own trend,
OGC plans to continue with such endeavors in the future.
• Events AndExhibitions
• T.V Advertisementondifferent channels
• RadioAdvertisement , F.M 100
• Bill boards almost in every big city
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• Posters /Banners
• Small gifts for dealers/distributors topushnewproduct sale
• Small gifts
• party to introduce themnewproduct
• T – Shirts printedwithproduct logoon them
• Caps
• Key chains
Place
Channels:17 Sales offices, Over thousands Dealers and Retailers throughout
the country. Uses selective and complementary distribution
1. The distributionchannel includesDistributors andDealers/retailers.
2. The Pakistanis dividedinto6 Regions.
• Upper Punjab
• Lower Punjab
• Center Punjab
• Sindh
• Balochistan
• KPK
RegionOffices are following:
Rahim Yar Khan, Vehari, Quetta, Sahiwal, Gujranwala, Karachi
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1. The overall orient products are manufacturedinLahore.
2. For all Pakistanstocks dispatchis carriedout from factory warehouse.
Warehouses
There are further 5 warehouses inthe country.
1. Lahore
2. Islamabad
3. Multan
4. Karachi
5. Quetta
DistributionChannels
• DistributionVehicles
• Freight OnRoad ( goods transportationservice)
Competitive advantage
Competition in Local market exhibition
Dawn Lifestyle is an event that brings together numerous lifestyle brands under
one roof at Expo Center Lahore on 10th
February 2016. OrientElectronics availed
this opportunity to exhibit its innovative products. Attractiveand interactive stall
design fascinated visitors in large numbers. Productdemos werearranged to give
them the feel and experience of the entire product range.
Visitors werealso briefed about different features of Orientproducts and how
innovation can play an effective role in making their lives easier and comfortable.
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As complimentary gifts giveaways weredistributed among the visitors. People
fromall age groups took keen interest in various Orientproducts and made the
event exciting and memorable.
Marketing awards wining ceremony
Ever friendly and ever considerate towards its customers, Orientfamily never lags
behind in doubling up the joy of its customers on such occasions. This one of a
kind offer brings you numerous prizes at every corner of Pakistan. With Orient
Centers located all around the country, the company has launched a Wedding
Offer for all the customers who shop at Orient Centers. And the numerous lucky
draws being held at Orient Centers haveincreased the chance of winning prizes
by a manifold.
The method is simple, users justneed to go and shop for their marriageat the
named Orient Centers, fill up their warranty card and drop it in the lucky draw
ballot to get their name entered into lucky draws. Begetting never-seen-before
26. 26
prizes like wedding function dinner for the guests, return tickets of Dubaifor the
couple and not to forget dozens of Orient appliances; this offer is a mustget!
Itis worth mentioning here that Orient group of Companies (OGC) has set up
Orient Centers all over the country to facilitate customers in reaching genuine
products, OrientCenters being Franchised Brand Shops, provideour customers
with the trustthey need in the productquality. It’s a double shotfor users; since
the offer is available at dozens of Orient Centers. And in case you don’t know
whereto go to get a chance at the prizes, do visit the Find Us section of our
website, our storelocator will help you choose the best option to go and shop
from.
As we all know, the marriageseason lasts for months, the company has decided
to take the Wedding Offer to the whole length of the season, good news for
customers who are still planning their shopping; this offer is valid for the whole
month of November!
We have added the prize details for our customers so that you know how
lucrative this offer is:
Wedding function dinner
Return ticket to Dubai for a lucky couple
Orient LED 22” – 1 Prizefor every Orient Center
Orient MicrowaveOven – 1 Prizefor every OrientCenter
Dinner for a lucky couple – 2 Prizes for every OrientCenter
Knowing how to create a customer base in the marketare the trademarks of a
company with brighter prospects, OGCis all that and a lot more. Generous
towards its customers and always looking forward to be a part of its customer’s
27. 27
glee, Orienthas made a place in the market that is irresistible. The wedding offer
is a testimony to that.
Hurry up and get your name entered into the lucky draws, this might justbe your
lucky day!
Orient spending on research:
We know the importance of research and development which is very important in
the scenario of the world being a global village. Today innovation and invention is
what people need. Research and development is our focus and wehave a promise
to deliver to our customer the products with innovation and improved
performance.
1 Strategies To Capture Its Competitor’s Client
They have market intelligence
They map the prices
They set the pricing policy decisions
If the competitor change the pricing policies obviously they change their
price policy.
Competition with Chinese brands
Actually the Chinese philosophy is to create disposableproducts,
while our products aredesigned and produced for the long term use.
The cost philosophy for both business models is different.
Future plans:
Our future plans are aggressiveand ambitious. Our vision is to be the
best appliances manufacturer, which means providing the best
products and services at a highly affordableprice.
services regardingCSR:
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Itis very important for a business group to work for humanity and
the betterment of society, and we are well awareof that. We firmly
believe in effective CSR activities. There are quite a number of
initiatives that the OrientGroup of Companies has taken to play its
positive role in society. FirdousFazalWelfareSociety consistently
work on those areas where people need us the mostlike health,
education etc
SWOT Analysis:
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Strengths
Brand Name.
More than 69years of experience in the paints industry.
Multinational Company.
World renowned in electronics manufacturers.
Having production setup in more than 7 countries.
Wider rangeof products.
Wider dealer network as compared to its competitors.
Business volumeis very high as compared to the competitors.
Focuses on safety, security, health and environment as a corporatesocial
responsibility.
Technological Advantage.
All parts are imports fromjapan.
Weaknesses
Very low discounts for business partners.
Complex Supply Chain Configuration.
Comparatively less convenient delivery of the products as business partners are
in 1000’s.
Meeting demand becomes a challenge in the demand season.
Opportunities
Higher standard of living and awareness developing in Pakistan.
Pakistan is developing country and there is a lot of business growth in this
country. So seeking new markets in this area is great opportunity.
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Threats
Political instability in Pakistan
Economic instability
Political Crisis in Pakistan Threats to the new entrants in the market
Threats to the new entrants in the market.
Law & Order Situation
The company which is doing business in Pakistan has to calculate the factors
like load shedding and energy crisis. Though the crisis has increased manifolds
yet I think the problemis not new for us. We have started using LED lights to
minimize the energy needs. Yes, there is no denying the fact that energy crisis
is hampering our overallbusiness a great deal. The sooner this crisis ends the
better for the country and its economy.
Threats to the new entrants in the market
PEST Analysis
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Political Factors
Political Crisis
Since the independence in 1947, Pakistan has continuously faced political crisis.
The political crisis has led to uncertain environment in the country, which is a
threat for any business including Berger Paints.
Inconsistency in Rules & Regulations
The rules and regulations are changed quite frequently due to changes in the
government that effects the business flow for any company. E.g. the last
government had introduced subsides for the chemical sector but now the current
governmentis planning to finish all subsides.
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Law & Order Situation
The law and order situation is crucial as it has causes serious disruption on
business activity. The suicide bombing and military operations have had an
adverseeffect on the confidence of foreign investors.
Taxation Laws
The government is providing relief to the electronics industry. There is a 10%
reduction in the central excise duty on electronics products.
Economic Factors
Economic Situation
Economic conditions are not very sound. The rising political instability has led to
economic instability as well.
Inflation
Inflation remains the biggest threat to the economy. The surge in global petrol
prices and thus local petrol prices hurt the buying power of consumers that
reduced the demand for products. Due to inflation the cost of doing business has
also gone higher. If Pakistan keeps on getting better grants and loan waivers or if
any other economy boosting factors such as controlled inflation rate and
economic growth take place, it will benefit the entire electronics industry
including orient.
Unemployment
The unemployment rate is going up and up which has increase the level of
poverty thus further reducing the buying power of the people.
Decling trends in rupees value:
Actually appliances business in Pakistan doesn’t have a balance in terms of import
and export, still due to non-availability of raw material and low vendorization
33. 33
industry a lot of our material is still import based. So rupee depreciation always
greatly affects the costof our products.
Social Factors
Western Life Style
Increasing globalization has amplified the influence of “Western Culture” in
Pakistan. The lifestyle of Pakistani people is changing rapidly. People are more
conscious abouttheir houses presentation.
Population
To meet the demands of a rapidly increasing population, there is an increase in
the number of construction projects in Pakistan which is a positivesign for orient.
TechnologicalFactors
Latest Technologies
Companies have technology with which they can have a competitive advantage in
the Pakistani market. Companies are investing in there infrastructure to not only
expand but also to upgradetheir existing structure.
Electronics Technology
Orient introduces dc inverter technology which consumeless electricity.
The price of an air conditioner cover in 1 year.
Conclusion:
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• We conclude that, while going through the company visit, the co-operation
is found to be very well organized, developed and most ideal industry in
every walk of its production, administration and management aspects.