Escolar Documentos
Profissional Documentos
Cultura Documentos
LETTER OF ACKNOWLEDGEMENT
Explicitly completing a course as comprehensive as Strategic Marketing we owe a debt
of gratitude to our teacher, Sir Rizwan Raheem. We have been greatly aided by him,
throughout the semester.
In addition to this, while developing this report we were provided with all the required
information and guidelines by Dr. Rizwan Raheem. We are, therefore, greatly
appreciative for the wonderful support that we have received.
We have also been fortunate enough to be in this group together.
Faithfully,
Hussain, Zia, Ammar, Sikandar, Ahsan and Zehra.
2|Page
Table of Contents
Executive Summary: .................................................................................................................... 5
Introduction .................................................................................................................................. 6
About the Company ................................................................................................................ 6
Vision &Mission ....................................................................................................................... 6
Business Lines........................................................................................................................... 6
Brands ........................................................................................................................................ 7
Quality Standards: ................................................................................................................... 7
Quality Policy ....................................................................................................................... 7
Business Environment: ................................................................................................................ 8
External Analysis ......................................................................................................................... 8
Market Research ........................................................................................................................... 9
Market Growth Trend ............................................................................................................... 12
Market Structure ........................................................................................................................ 14
Competitive Analysis ................................................................................................................ 15
Major Players .......................................................................................................................... 15
Minor Players ......................................................................................................................... 15
Consumer Analysis .................................................................................................................... 16
Present Needs: ........................................................................................................................ 16
Future Needs: ......................................................................................................................... 16
Customer Buying Criteria ..................................................................................................... 17
PEST Analysis ......................................................................................................................... 17
Porters Forces Model ............................................................................................................... 18
Internal Analysis ........................................................................................................................ 19
SWOT ........................................................................................................................................... 20
Driving Forces & Trends ....................................................................................................... 21
Segmentation and Target Market ............................................................................................ 22
Positioning .................................................................................................................................. 22
Product Life Cycle Stages ..................................................................................................... 23
Marketing Plan ........................................................................................................................... 24
Product: ................................................................................................................................... 25
Price: ......................................................................................................................................... 25
Place: ........................................................................................................................................ 26
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Distribution Structure........................................................................................................ 26
Promotion Plan: ...................................................................................................................... 27
Promotion in Rural Areas: ................................................................................................ 27
Integrated Marketing Communication ........................................................................... 28
Advertising Strategy: ......................................................................................................... 29
Financials ..................................................................................................................................... 29
Market Size for past 4 years.................................................................................................. 30
Market size for next 4 years .................................................................................................. 31
Implementation, Control & Contingency Plan ...................................................................... 32
Sales Analysis ......................................................................................................................... 32
Market Share Analysis .......................................................................................................... 32
Distribution Analysis............................................................................................................. 32
Customer Analysis ................................................................................................................. 32
Appendix-A ........................................................................................................................ 34
References: .................................................................................................................................. 35
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Executive Summary:
As part of the MBA program we are required to make an industry-based project for the
course Strategic Marketing which is facilitated by Dr. Rizwan Raheem. The assignment
which is given to us is to find the business plan/ practical framework of marketing plan
of any company in Pakistan and in this report we are presenting the companys
Introduction, business environment which includes external analysis (Market structure,
Market growth, competitor Analysis, Consumer Analysis, market trends impact, Pest
Analysis, Porters five forces & strategies), internal analysis (SWOT, key issues and
challenges and finally the companys overall strategic direction and how to achieve that
strategic direction through marketing plan. However, through this project work we had
an exposure to the practical application of the course and also had the sound
knowledge that how the companies in Pakistan are managing their long term and shortterm strategies.
For this project we contacted a stationery company because Pakistans stationery
industry has faced a tremendous growth over the years as the users of stationery items
are mostly Pre School going children or the youngsters in Colleges and Universities and
Pakistans stationery items are not only preferable domestically but internationally also.
Therefore, we visited Dollar Industries Pvt. Ltd., which is one of the leading stationery
companies in Pakistan with 40% market share; the further introduction of the company
is being discussed in this report.
We discussed all our queries by the help of questionnaire with Mr. Ali Asim, Group
Product Marketing Manager and Mr. Shahzad Deshmukh, Brand officer Dollar
Industries Ltd. We discussed about Dollars business scope, future aspirations, present
and future strategies, market structure and growth, current and potential market
segment, distribution strategies, market driving forces and strategies,
competitive/segment analysis and many other things which we have discussed and
learned in our course.
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Introduction
About the Company
Dollar Stationery is one of the Top writing instruments and stationery manufacturer
in Asia, Dollar has its availability all over Pakistan (Shafaat Khan, 2005) and also
exporting to more than 50 countries namely Canada, USA, France, Germany, UK,
Greece, Middle Eastern countries, SriLanka, India, Indonesia, Thailand, Bangladesh,
Afghanistan, Egypt, Libya, Sudan, Kenya, South Africa, Australia and many more
countries (Dollar Stationery, 2016).
Dollar has the Position of Heritage Brand as it is founded more than half-a-century
ago in 1954 by Muhammad Siddiq started formulating and producing inks in a
small place situated in the old town of Karachi. At that time fountain pen was the
primary instrument used for writing. Back then; prevailing brands in pens and inks
were mostly imported from Europe and the US. Persistent innovation and
expanding product range is the competitive advantage for Dollar stationery, which
results in enviable brand loyalty (Dollar Stationery, 2016).
Business Lines
Dollar Stationery has World Class Manufacturing All in House, The Factory is
Located in S.I.T.E Area.
Manufacturing & Marketing of stationery and writing instruments
Engineering Division (Making Dies, tools, Molds, Jigs etc.)
Chemical Division (Formulating Ink and glues)
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Brands
Following are the famous
brands
and
besides
producing
its
ownbranded items, DOLLAR
also manufactures and
exports private labeled /
OEM stationery products
for some of the leading
international
brands
(Dollar Stationery, 2016).
Quality Standards:
Quality Policy
Best Quality at an affordable price
Are committed to innovating and
continually improving
products,
services, processes and systems
Complying with the quality standards
including the European, US, British,
German and other country specific
standards.
DOLLAR maintains and updates Product
/ Material Safety Data Sheets (MSDS) as
well as CE certification for their global
customers
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Business Environment:
External Analysis
8|Page
Market Research
Market research gives the detail insights about the market dynamics that how the
particular industry is performing and along with that it gives us the latest trends in the
market, According to Amir Shafaat Khan (2003) the stationery industry is s changing
rapidly therefore Dollar Stationery has gathered some market insights through which
they can alter their strategies, Ali Asim(Group Product Marketing Manager) discussed
the following points which will tell us regarding the stationery industry dynamics in
Pakistan:
1. The major chunks of writing instrument buyers are students and then
professionals and teachers.
2. Most of the consumers consider price and quality an important factor while
buying any writing instrument
3. Stationery comes under FMCG category but it takes time in consuming it
therefore most of the consumers buy pens and stationery once in 15 days or in a
bulk.
4. Advertisements are one of the emerging influencers in stationery industry but
their friends or retailers are influencing currently most of the consumers.
5. Stationery is a wholesale driven industry.
6. Most of the non-stationery shops like bakery, pan shops, medical stores buy
stationery from the retailers.
Following are the graphical representation of market research conducted by Dollar
stationery.
Brand Preference
Purchase Frequency
33.33%
33.33%
Signature
27%
20%
Dollar
53%
13.33%
Piano
Deer
7%
0%
Bulk
purchase
Borrow
Picasso
13%
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Driving Factors
33.33%
26.66%
20%
13.00%
6.66%
Price
Quality
Easy
Refillable
Availability
Design
Influencers
Parents
0%
Frequent Buyers
Advertise
ments
13%
Retailers
34%
60%
25%
10%
Friends
40%
5%
10 | P a g e
Colleague
s
13%
Sales
Maximum Sales
40%
High During
Exam
20%
Stable
throughout the
year
20%
5%
Dollar
Piano
Deer
New
promotions
introduced
5%
Signature
Picasso
Non-stationery shop's
Purchase of Stationery
from Retailers
80%
Through Distributor
Through Wholesale Market
20%
40%
60%
YES
NO
11 | P a g e
Dollar
40%
Industry
60%
According to the World Bank Overview (2015) Pakistan also exports around
$5.5 million of writing instruments and stationary items all over the world
and the exports are rising gradually
12 | P a g e
The total educational institutions in Pakistan are 508,846 from which 90%
consist of schools and other 10% consist of other educational institutes.
(Exhibit-1) (Demographics of Pakistan, 2013-14)
The current labor force in Pakistan is 58.41 million; in which 43% of this labor
is involved in agriculture, 20.3% in industry and the remaining 36.6% in other
services. The estimate labor force growth is by 3.7% and the growth is due to
increasing amount of female professionals. (Demographics of Pakistan, 201314)
13 | P a g e
Market Structure
Influencers
Parents,
Teachers,
Friends,
Advertisements
Friends,
Teachers,
Parents, retailer,
Advertisements
Friends,
Stationery
Retailers,
Advertisements
Colleagues,
Retailers,
Advertisements
End Users
Pre School
Students
(preprimary
-4th Grade
Secondary
students (5th
GradeMatric
College,
University
Students
Fountain Pen,
Pointers, Color
Marker, Ink
Teachers,
Presenters
Products
Pencil &
color
pencils,
crayons,
markers
Board marker
& Permanent
Marker, Ball
pen
Advertisements,
promotions,
colleagues
Office &
Institution
Supplies
(Government
institutions,
Schools,
Hospitals)
Staple pins,
StickGlue, Pens,
High lighters
Channels
Non-Stationery
Shops (Pan
Shops, Bakery,
Medical Store)
Wholesaler
Office
Suppliers,
Sales
Personnel
Retailers
Distributor
Writing
Instruments
Industry
14 | P a g e
Market Structure
According to the Article in Business Recorder (2012, Dec 18)
Consumer segments are being evolving over time and each player in the writing
instruments industry are launching and developing the new products according
to needs of consumers
Advertisements & promotions are becoming one of the major sources of
influencers in stationery products
Non-stationery shops are one of the emerging forms of channel however these
shops buy the required/demanded stationery from the nearby retailers.
Many manufacturers do direct selling to institutions and high potential stores.
Competitive Analysis
Overall Writing
Instrument Market
Major Players
o Dollar
o Shah son (Goldfish, Picasso)
o Indus Pencil (Deer)
o Sayyad Engineers (Piano)
o Aftab Sons (Signature)
Minor Players
o Dux
o Faber Castle
o Pelikan
o Uni-ball
Chinese
Stationery
Market Local
Players
Market Share
Others
10%
Picasso
15%
Dollar
40%
Piano
20%
Signature
15%
15 | P a g e
Consumer Analysis
Following are the insights of consumer while selecting any writing instruments (Ali
Asim, 2016):
Present Needs:
Future Needs:
16 | P a g e
Very
Important
4
Quite
Important
3
Nice
Have
2
to Not
significant
1
Dont
Want it
0
Brand image
& reputation
*
*
Price
Eco-friendly
products
Availability of
product
Promotions &
marketing
PEST Analysis
Political:
o Government has imposed 25% tax duties on stationary and craft items to
discourage imports from countries like china which provides
comparatively cheaper stationary items. (Pakistan Economic Survey, 201415)
o No value added tax at present, can be implemented in future
o Favorable direct investment policy
17 | P a g e
Economical:
o Consumption per capita and literacy rate is expected to increase steadily
o Favorable policies for promoting education
Social:
o 60% population is under the age of 30 and population is increasing
o Popularization of LMTs, IMTs and Malls in Pakistan
Technological:
o According to Mr. Ali Asim Dollar is working to introduce eco-friendly
products which are not very common in Pakistani market in which nonhazardous chemical, ink, plastic will be used which will be dissolvable in the
natural environment.
Power of Buyer:
Threat of substitute:
o Low cost e-pads by the Chinese companies are entering Pakistani market
18 | P a g e
Internal Analysis
19 | P a g e
SWOT
Strengths:
Weakness:
Opportunities:
Non-stationery shops
Penetration in European union countries
Penetration in other stationery accessories
Increase availability in rural areas
Threats:
20 | P a g e
Potential Impact
Dollar
Competition
+++
+++
---
---
+++
+++
+++
++
+++
+++
+++
++
also
has
positive
enrolment
in
in
student
schools,
increase
in
demand of stationery.
Technological advancement
Reduction in cost of a
product
and
improvement in quality
Emergence
stores
on
non-stationery
Increase in availability
of the product in
emergency.
+++
---
+++
---
21 | P a g e
This Table is self-analyzed to show the impact of external trends and possible threats
which may impact the Dollar Company and Other players in the industry.
Positioning
Educational product or the product which aids in learning or writing.
Consumer seeks solution in their product that is why consumer mostly prefers their
product and there would be hardly any house in Pakistan where Dollars product
would not be used. However, Dollar also does its brand extension by focusing their
business scope, which is related to educational products or instruments, which help in
writing.
22 | P a g e
Sales
Students
Teachers
Professionals
Introduction
Growth
Maturity
Decline
23 | P a g e
Marketing Plan
24 | P a g e
Product:
PRODUCT PLAN
MARKET
SEGMENT
EXISTING
PRODUCT
TURN
OVER
62,570,245
INCREASE
BY %
NEW PRODUCT
PROJECTED
TURNOVER
16.6 %
Calligraphy Pointer
72,956,905
Professionals
Pointers
Pre-School
Student
Simple
Design
Products
103,680,000
30%
Paint Markers
25%
PreStudent
School
Professionals
Low Quality
Fountain Pen 28,814,199
Teachers
Board
Markers
Students
12,585,540
Price:
COST-PLUS PRICING - Set price at production cost (cost of goods and fixed
profit), plus a certain profit margin (Ahmed et al., 2014)
Eliminating intermediaries should produce cost effective products.
Focus on reducing operational cost.
Other than that following pricing strategy is adopted for new launching of
products:
Market Penetration Strategy
Promotional Strategy
25 | P a g e
Place:
Dollar should do direct selling to high potential stores i.e. Hyperstar, Metro,
Imtiaz, Chase etc. because these stores are the growing trend in Pakistan:
Provide trade offers
Shelf branding
Distribution Structure
Distribution Channel
Institutional Selling/ Office Suppliers
Wholesaler/ Distributor
% of Production
10%
55%
30%
Retailer
Modern trade/ High Potential Stores
5%
-
Non-Stationery shops
Future of Retailing an article in Business Recorder (2012, Dec 18)
Stationery is a wholesale driven industry and major part of its distribution is done
through wholesale.
Retailing is a prominent form of distribution and it is still establishing in Pakistan
Making Dollar products the preferred choice in the whole of Pakistan, through value
added and best quality products, sustaining leadership in the entire market while
increasing penetration in rural areas to gain higher market share by making Dollar
products available and creating awareness, and attaining cost effectiveness.
26 | P a g e
Promotion Plan:
According to Mr. Ali Asim Dollar does not use A.T.L effectively for any of its product but uses
B.T.L, it sponsor & sets up stall in trade fairs.
27 | P a g e
Radio Spot
Airing
Print Ads
- Dawn young
world
- Other
children
magazines
Direct
Marketing
Institutional
promotion
Trade
Offer
Activation &
BTLs
- Discounted
selling and
Street activities in
all
cities
Outdoor
Advertisin
g
- Billboards
Television
advertising
Retail Presence
- New pack for retail
- - Shelf branding
- POS material
28 | P a g e
Advertising Strategy:
Financials
Since Dollar industries is a private Ltd. firm therefore financials such P&L, income
statement and balance sheet were not shared by the company, thus, we were only
provided by the tentative sales & volume, expected sales comparison and
demographics of some of their SKUs which company uses to project their sales for the
year.
Exhibit-1
2013-14
2014-15
Sales
Volumes
Projected
Sales
Volumes
Markers (PM /
OB)
20,799,818
Ball Pens
69,009,934
PRODUCT
Inc. /
Dec
Industry
Volumes
Competitors
24,157,836
16.14%
48,000,000
Sayyed, Deer
78,692,650
14.03%
360,000,000
Sayyed, Shah
sons, Signature
29 | P a g e
Gel Pen
1,025,926
2,441,810
138.01%
12,000,000
Signature, Dux
Fountain Pen
28,814,199
33,743,464
17.11%
72,000,000
Sayyed, Dux
Dollar Color
Marker
16,427,258
19,668,540
19.73%
96,000,000
Sayyed
Pointer soft-liner
62,570,245
72,957,390
16.60%
147,000,000
Sayyed,
Signature
Inks
21,050,451
24,292,368
15.40%
55,000,000
103,680,000
100.00%
518,400,000
Dux, Shahson,
Trica, Deer
Pencil
Total volume
produced
219,697,831
1,308,400,000
Source: Dollar Stationery Pvt. Ltd is sharing sales Volume. Despite of sharing their
actual financials and the growth rates are also tentative.
2011-2012
8.6 billion
2012-2013
8.96 billion
2013-2014
9.33 billion
2014-2015
10 billion
CAGR
Market Segment
2012
2013
2014
2015
3.85 billion
4.01 billion
4.26 billion
4.6 billion
Per
Annum
Growth
6.04%
0.72 billion
0.79 billion
0.83 billion
0.877 billion
6.72%
2 billion
2.25 billion
2.5 billion
2.85 billion
4.08%
Students
Professionals
Teachers
30 | P a g e
Sales in PKR
2014-2015
2015-2016
2016-2017
2017-2018
10.51 billion
10.72 billion
11.04 billion
12.4 billion
CAGR
Market Segment
2014-2015
2015-2016
2016-2017
2017-2018
Students
4.91 billion
5.01 billion
5.18 billion
6.014 billion
Per
Growth
7%
1.04 billion
1.24 billion
6.9%
4.51 billion
4.54 billion
5.13 billion
4.40%
Annum
Professionals
4.69 billion
Teachers
The Market Size for next four years is being predicted by the Dollar Stationery if the above
discussed factors remains positive in near future however the growth rate segment wise is
provided by Dollar Stationery.
31 | P a g e
Distribution Analysis
o Sales and order process will be recorded by designated sales personnel
(RaniLinka, 2012).
o All the sales through distribution will show amounts of orders and sales
in specific locations. Distribution costs will be included in this analysis
(Pania et al., 2006)
Customer Analysis
o Consumers will be segmented depending on their values, for instance, the
consumer who are in schools have different values as compared to one
who are in colleges, universities or corporate sector.
o School students demands writing instruments, which are more colorful
and attractive, college students demands for more fluent writing pens
since the volume of their notes are higher. University students want pens,
which are cheaper as they dont keep it with them for much longer time.
And for corporate consumers, they want something, which shows
elegance and class.
32 | P a g e
Exhibit -2
508,846
156,592
320,611
23,964
3,213
1,202
3,125
University
139
Source: Demographics of Pakistan, Wikipedia
31%
63%
5%
0.63%
0.23%
0.61%
0.027%
33 | P a g e
Appendix-A
Please rate amongst the feature you consider important and least important while
you purchase a writing instrument:
Factors
Absolutely Very
Critical
Important
Quite
Important
Nice
Have
to Not
significant
1
Dont
Want it
0
Performance
& Quality
Design
features
&
Brand image
& reputation
Price
Eco-friendly
products
Availability
of product
Promotions
& marketing
Absolutely Crucial:
Very important:
The factor, which is important but absence of it, will make me dissatisfied
Quite Important:
Nice to Have:
Not Significant:
34 | P a g e
References:
Dollar Stationery Pvt. Ltd. Introduction Retrieved from: http://www.dollar-stationery.com/
RaniLinka, 2012, Marketing Plan, Rani Fruit drinks, September 2012:
http://www.ranilanka.com/images/profile.pdf
Chinese Stationery Swarms Market (2005, April 29) Retrieved from
http://www.dawn.com/news/402994/chinese-stationery-swarms-market
Aamir Shafaat Khan (2003, April 15). Foreign Stationery Floods Market. Retrieved from
http://www.dawn.com/news/95031/foreign-stationery-floods-market
Market Growth Trends (2013-14) Retrieved from
https://en.wikipedia.org/wiki/Demographics_of_Pakistan#Literacy
Khoso I, Ahmed RR, Ahmed J, (2014), Pricing Strategies in Pharmaceutical Marketing, The Pharma
Innovation Journal, Vol. 3 (7): 13-17
Demographics of Pakistan. (2015, April 17) Retrieved from
http://www.worldbank.org/en/country/pakistan/overview
Business Recorder (2012, Dec 08) Market Structure of Writing Instrument Industry. Retrieved from
http://www.brecorder.com/supplements/:36th-fpcci-export-awards-2011-2012/1269391:future-ofretailing-in-pakistan/
Ahmed RR, Vishnu P, and Amin MA, (2014), Impact of Product Packaging on Consumers Buying
Behavior, European Journal of Scientific Research, Vol. 122 (2): 125-134.
Dollar Stationery Brands and Advertising Strategy (2016, Jan 5) Retrieved from
http://www.slideshare.net/FarzanAdil1/dollar-stationary
Ahmed RR, Ahmad N, Parmar V, and Khoso I, (2014), Role of Packaging and Labeling on Pakistani
Consumers Purchase Decision, European Scientific Journal, Vol. 10 (16): 464-473
Pania, N., Tezir, T., Raposo, L., Kapur, S., Mandal, A. & Graham, L. (2006), Marketing Plan for
Tropicana Pomlife, Business Marketing Analysis Program Students George Brown College:
http://tezir.com/marketing/management/PomLife.pdf
Ahmed RR, and Sattar I, (2014), Pharmaceutical Promotional Mix in Pakistan, Middle East Journal of
Scientific Research, Vol. 21 (3): 533-542
Dollar Stationery Internal Analysis and Marketing Plan (2012, Oct 12). Retrieved from
https://www.scribd.com/doc/109730951/Dollar-Stationary-Industries
Resource person Visiting card with whom we had discussion regarding the Marketing Plan of Dollar
Stationery.
35 | P a g e