Course: Marketing Management

Semester: Spring 2017

Assignment: Services Purchase
Submitted to: Sir Najeeb Agrawalla
Date: March 4th, 2017

Company Selected for Product Purchase: Dawlance

COMPANY BACKGROUND:

Dawlance is a Pakistani manufacturer of major home appliances based in Karachi. Founded in

1980, it was acquired by Istanbul based Arelik in 2016. Dawlance has three factories, two sites
in Karachi and one in Hyderabad, with a total of 4,000 employees. In 2015, Dawlance had
revenues of $220.6 million selling products in Pakistan and Middle East. It was acquired
by Arelik in November 2016 for $258m, and since then function's a wholly owned brand
for Arelik.

PRODUCT PURCHASED:

Refrigerant R-600.

PRODUCT PRICE:

2.2 Million Euros

DECISION MAKERS INVOLVED:

Both local and international teams are involved in decision making.

MOTIVATION BEHIND PURCHASE:

R600, also known as CARE 10, is refrigerant grade Isobutane, a natural, or "not in kind",
refrigerant suitable for use in a range of refrigeration applications.

PROBLEMS SOLVED BY THE PRODUCT:

The use of R600a is increasing due to its low environmental impact and excellent
thermodynamic performance and it is now the refrigerant gas of choice in domestic and small
commercial refrigerators. It is non-toxic with zero ODP (Ozone Depletion Potential) and very
low GWP (Global Warming Potential).

ATTRIBUTES CONSIDERED BEFORE PURCHASE:

Following were some of the attributes that were considered before purchasing the product:

Cost Saving
Innovation

Page 1 of 10
 Environment Friendly

TYPE OF DECISION:

Automated decision making process.

BUYING BEHVIOR:

It has recently been from private to a multinational company. Employees still resist the changes.
Newly laid down SOPs are sometimes bypassed but the overall environment is competitive.

DECISION MAKING PROCESS:

Step
Step 1
2
3
4
Ste
Step 6
p
Page 2 of 10
 Company Selected for Product Purchase: Yunus Textile
Mills Limited
COMPANY BACKGROUND:

Yunus Textile Mills Limited (YTM) is a vertically integrated textile mill located in Karachi,
Pakistan. The company, with annual production capacity of 100 Million meters, is the largest
exporter of Home Textile products from Pakistan. In addition to manufacturing, YTM also
provides its customers design and distribution services with offices based in USA, France, Spain,
United Kingdom and Canada. At present YTM supplies directly to majority of leading retailers
of USA and Europe and is producing products for various private and retail brands.

PRODUCT PURCHASED:

Labels for garment products.

PRODUCT PRICE:

PKR 96 Million

DECISION MAKERS INVOLVED:

The decision making process is centrally controlled by higher authorities.

MOTIVATION BEHIND PURCHASE:

To keep the firm competitive.

PROBLEMS SOLVED BY THE PRODUCT:

Good quality product with low cost.

ATTRIBUTES CONSIDERED BEFORE PURCHASE:

Following were some of the attributes that were considered before purchasing the product:

Quality
Customer Satisfaction
Cost
Timely Delivery
Flexibility

Page 3 of 10
TYPE OF DECISION:

Centralized but process can be bypassed

BUYING BEHVIOR:

It is a private firm with proper management and competitive environment. They trust they their
suppliers and consider word of mouth. They are less system oriented, flexible and empower their
employees.

DECISION MAKING PROCESS:

Step
Step 1
2
3
4
Ste
Step 6
p

Page 4 of 10
 Company Selected for Product Purchase: K-Electric
COMPANY BACKGROUND:

K-Electric is a Pakistani vertically integrated electric-energy corporation involved in generating,

transmitting, and distributing electrical power to around 20 million inhabitants of Karachi. It
employs over 11,000 people and covers an area of 6,500 square kilometers with industrial,
commercial, agricultural and residential areas falling under its network. The organization has 2.5
million customer accounts in Karachi, Dhabeji and Gharo in Sindh, and Hub, Uthal, Vindar and
Bela in Balochistan.

PRODUCT PURCHASED:

Copper wire (250 metric tons)

PRODUCT PRICE:

$ 5.2 Billion

DECISION MAKERS INVOLVED:

The decision making process is centrally controlled by higher authorities who make decisions in
planned and bureaucratic way.

MOTIVATION BEHIND PURCHASE:

K-Electric makes every purchase by considering it an investment and thinking of long term
profits.

PROBLEMS SOLVED BY THE PRODUCT:

Good quality product with low cost.

ATTRIBUTES CONSIDERED BEFORE PURCHASE:

Following were some of the attributes that were considered before purchasing the product:

Technical
Commercial
End User Satisfaction

Page 5 of 10
TYPE OF DECISION:

Centrally controlled. Planned and bureaucratic.

BUYING BEHVIOR:

K-Electric has market monopoly and dominance. Top management influences every decision
which sometimes is egoistic. Supplier dynamics are also considered before buying a product.

DECISION MAKING PROCESS:

Step
Step1
2
3
4
Step
Page 6 of 10
 Company Selected for Service Purchase: ABB
COMPANY BACKGROUND:

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and
industry customers to improve performance while lowering environmental impact. The ABB
Group of companies operates in around 100 countries and employs about 124, 000 people.

SERVICES PURCHASED:

Technical Services

SERVICE PRICE:

$ 2.7 Million

DECISION MAKERS INVOLVED:

The decision making process is decentralized and controlled by concerned managers.

MOTIVATION BEHIND PURCHASE:

To get good quality technical services locally and at reasonable price.

PROBLEMS SOLVED BY THE SERVICE:

Good quality technical services.

ATTRIBUTES CONSIDERED BEFORE PURCHASE:

ABB purchases services from certified vendors only.

TYPE OF DECISION:

Decentralized as well as planned & budgeted.

BUYING BEHVIOR:

ABB doesnt compromise on quality. They give much importance to their organizational core
values. Managers are empowered and decision making is decentralized. Although they are very
efficient and competent, they still resist the change.

Page 7 of 10
DECISION MAKING PROCESS:

Step 1
2
3
Step 4
Page 8 of 10
 Company Selected for Service Purchase: iflix

COMPANY BACKGROUND:

iflix is a Malaysian subscription video-on-demand service owned by Iflix Sdn Bhd, which is
based in Kuala Lumpur, Malaysia. The site serves as a digital hosting and distribution platform
for Western and Asian dramas obtained through partnerships with over 150 studios and content
distributors globally including Metro-Goldwyn-Mayer, Disney, Warner Bros, Paramount, NBC
Universal, Fox, CBS, BBC, Sony Pictures and Media Prima.

SERVICES PURCHASED:

iflix is a startup and it required services of media agency for their promotion through online Ads
and mediums like radio, cinema, also integrations with the RJ.

DECISION MAKERS INVOLVED:

The media buying involved the whole team but following were the key decision makers:

Country Manager: Provided the overall leadership

Marketing Manager: Negotiated and was the focal person
Head of Asia Marketing: Facilitated the process
Finance Manager: Oversaw the financial issues and transaction

MOTIVATION BEHIND PURCHASE:

The product launched as SVOD service which is new for the market and people do not have
awareness regarding how to use it. So the first step included:

Creating brand awareness: Good frequency and reach

Educating the consumers: Integrations

Hence it became really important to get the media partner on board who would provide all the
media buying services with all cost and more mileage. The product in which this organization
deals with is an online service therefore media services were essentially required to deliver the
message to the audience.

PROBLEMS SOLVED BY THE PRODUCT:

The media buying agency facilitated the company to have the brand name out there in the market
through mediums like radio, cinema, also integrations with the RJ helped educate the consumers
regarding how the service can be used with its relevance.

Page 9 of 10
ATTRIBUTES CONSIDERED BEFORE PURCHASE:

Following were some of the attributes that were considered and analyzed before the purchase:

Cost per spot Market reputation

Number of radio integration
Payment terms
Market reputation
Extensive media plans
Additional services
Placement of Ads in cinema
Existing companies they are working with
Overall response time
Number of FOCs given
Number of promo trails, time checks, brought to you by

TYPE OF DECISION:

It was the first decision as the company has recently been launched (startup). It was a formal
decision making process because approval process involved not only the local team but the
global teams approval was also required. It was a quarterly contract which had to be reviewed
and evaluated.

BUYING BEHVIOR:

It is new startup with non-bureaucratic culture. Employees are empowered to make decisions that
seem better for the organization. They prefer the local suppliers for the services they need but are
flexible to changes.

DECISION MAKING PROCESS:

The decision making process has been explained through following flowchart:

S
Ste
tep
p1
2
3
4
Step5
6 Page 10 of 10