Packweld Co. Pvt. Ltd. Marketing Audit

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 Audit

Marketing environment audit Task environmental audit Marketing strategy audit Marketing system audit Marketing productivity audit Marketing functions audit Marketing organization audit Recommendations Areas Covered

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 Company Profile

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 Marketing Environment

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 Marketing Environment

Markets –Market leader in PP technology –50-55% market share –50% of profits from India Customers/clients – 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. Task Environment

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 Task Environment

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 Environment

Objectives and Goals – Presents scenario: No. of clients: 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 Marketing Strategy Audit

Strategy – Advertisement: Trade fairs and exhibition Yellow pages Industrial magazines – Long terms goals Expansion plans: Aiming International markets like Africa Kenya, Lagos, Bangladesh Marketing Strategy Audit

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. Marketing Systems Audit

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 Audit

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 Audit

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 Audit

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 MarketingFunction Audit Marketing Function 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 Audit

Marketing Communication –Modes of Advertisement: Demo Trade-fairs Directory advertising Personal contacts Relations Sales –Demos –Order placements –Relationship management Marketing 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 Marketing Organization Audit

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 Recommendations

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 Recommendations

Thank you