Final Marketing Chamarkerinnel(1)

7/28/2019 Final Marketing Chamarkerinnel(1)

1/35

Karam Ceramics LimitedMarketing Channel

Submitted to

Sir AHMED HUSSAIN KHAN

MARKETING CHANNELS

Submitted BySAMAR JAVED MBPE 12158

M. SHOAIB RASHEED 12114

USAMA BASHARAT 12149

SAIMA BATOOL 12154


2/35

TABLE OF CONTENTS

Contents

CHAPTER 1 - INTRODUCTION

ACKNOWLEDGEMENT 1

EXECUTIVE SUMMERY 2INTRODUCION /COMPANYPROFILE 4PRODUCTLINE 5

MARKETINGDEPARTMENT 7MARKETINGHEADANDREPOSIBILITIES 7

REPONSIBILITIES OFMARKETINGDEPTT. 7

CHAPTER 2 - MARKETING STRATEGIES

DEALERSHIPCRIETERIA 9DEALERINCENTIVESCHEME 10SALESPROMOTION 10

ORDERBOOKINGPROCESS 10DELIVERYCHANNEL 11

DEALERSHIPCANCELLATIONPROCESS 12NO.OFDEALERSANDLOCATION 13

REFERENCES 18

ATTACHEMENTTS

APPLICATION FORMDEALERSHIP CONTRACT LETTER(BLANK)


3/35

Page 1


4/35

EXECUTIVE SUMMERY

Page 2

Executive Summery

We are three members in the group and are given to prepare a report on marketing

channels of any manufacturing company; covering the topics, Companys profile,

Introduction to Marketing Department, and their procedure / responsibilities. For this

purpose we have contacted their head office and acquired some raw data and prepared

the project.

For a complete and presentable project we have gathered information from these sources:

Oral Information from Sales team leader Mr. Yaqoob (Head Office Karachi) Images, Company profile, and Respective information from website Copy of Contract and application form from Mr. Junaid, Dealer at Lahore Office

After conduct of the above researches, our key findings are:

Karam Ceramics is a manufacturing concern which is engaged in themanufacturing of Stylish tiles for residence and commercial premises.

Karan Ceramics is collaborate with CERIC CETIC (France), B & T, Welko, Sacmi(Italy), Modena Machinery (china),

They have many distributer in Pakistan covering many major cities. Mr. Shahid (Marketing Manager) is the head of marketing department and

responsible of smooth operation of all the business activities, Marketing MIX, and

Companys Growth in sense of market reputation and product branding

Marketing Department also involves in the control of distributer and has check onafter sales issues.

Dealership / Distributer ship Criteria depends upon the region and outlet size. Company process two type of orders On Outlet and trough distributor


5/35

EXECUTIVE SUMMERY

Page 3

If any distributer fails to complete the targets its distributorship is automaticallycancelled

All the dealer deposit security to the company and refundable at the time ofcancellation or termination

All the outstanding dues are deducted the time of cancelation of contract6 Any part either Karam Ceramics or Distributer can cancel the agreement at any

time.


6/35

CHAPTER 1 INTRODUCTION

Page 4

Chapter 1 Introduction

Introduction / Company name

Companys Name

Karam Ceramics Limited

Business line

Karam Ceramics is engaged in the business of manufacturing of ceramics tiles for

residential premises and commercial offices. They are having wast range of designs and

style.

Legal Status

Karam Ceramics is a public limited company and listed on Pakistan Stock Exchange.

Name of directors

Mr. Shuban Ali G. Kassim Chairman

Mr. Irshad Ali S. Kassim Vice Chairman

Mr. Munawar Ali Kassim Chief Executive

Mrs. Mariam S Kassim Director

Mrs. Sakin Noorullah Director

Mrs Shaheen Barkat Ali Director

Mr Shahnawaz Madhani Director

Date of EstablishmentKaram Ceramics was established in 1979 on 8th April

Address factory295/311, Deh Halkani, Manghopir, Hub Dam Road, Karachi


7/35


Page 5

Head Officer AddressB.C 6 Block 5 Kehkashan Scheme 5 Clifton Karachi

Branch Office Lahore4-L Gulberge III ferozepur road Lahore

CompanysBankerSoneri Bank Limited

Standard Chartered Grindalys

Muslim Commercial Bank Limited

Babib Bank Limited

Paid Up CapitalRs. 145,486,760/-

Companys Product Line

Company makes tiles in In different sizes for for different categories such as

Residencialo Bed Roomo Bathroomo Kitcheno Exterioro Loungeo Dining Roomo Drawing Room


8/35


Page 6

Commercialo Shopping Mallso Class Roomso Auditoriumo Restaurantso Executive Rooms / Officeso Conference Room / Officeso Admin Floor

All the above stated tiles are available in under mentioned sizes

6 x 6

8 x 8

10 x 10

8 x 12

10 x 13

12 x 12

16 x 16


9/35


Page 7

Marketing Department

Location

Marketing Department of the company is established in Head office (Karachi)

Marketing Head

Mr. Shahid is the Marketing Head of the company

Responsibilities of Marketing Department

Marketing Department is a group of whole team of many professionals and they have

their own Job description, but individually, Id we describe the responsibilities of

Marketing Head That are:

Gather a research about new designs according to the customers desire Understand the process of sales of distributers and direct outlet. Manage the CRM as well as vendors Manage the Marketing Strategies and Plan Management of Marketing Mix


10/35


Page 8

Manage Agencies and Distributors

Manage the cost of tiles Manage the customer focusIrrespective of the individual (Manager of Department), There are many common tasks

are performed by Marketing Department such as:

Marketing Research

A group of specialized are assigned to make a research on current and new product lines

to make their product at customers first choice. They also collaborate with the French

and Italian specialists in order to meet the international standards of quality and product

Develop the Marketing Strategy and PlanAnother group assignment is to develop the strong plan regarding their budget, product

quality, where to buy the raw material, and of which quality.

Management of Marketing Mix

It is the responsibility of Marketing Department to manage the marketing mix. Karam

Ceramics have a strong plan of Marketing mix (Price, Product, Placement, and Promotion)

different people are engaged to manage all these things.

Customer Relationship Management

Generally Marketing Department is responsible to manage a database to record the

customers information, but Karam Ceramics is retaining the information of theirdistributors.

Manage Advertisement

Marketing department is also responsible for management of advertisement of their

product and brand, for this they already have arrangements in their budget.

Measuring Success

Marketing Department also measures the growth of company, in intangible forms, such as

number of unit sold, market reputation, branding, designs copy rights of designs. Etc.

In short, Marketing Department has a very versatile nature of job and responsibilities,

they can emphasize on any other department of company. They have a focus in wholebusiness activities of company including sakes, purchases, production, designs,

promotions, quality and quantity.


11/35


Page 9

Distribution Channel Flow:

Physical Possession Flow:

Ownership Flow:

Promotion Flow:

Negotiation Flow:

Financing Flow:

Risking Flow:

Ordering Flow:

Payment Flow:

Producer Dealer Customer









12/35

Page 10


13/35

CHAPTER 2 MARKETING STRATEGIES

Page 11

Chapter 2 Marketing Strategies

Karam Ceramics have strong binding with distributors to make their sales better and

aimed their goals high. For this they have specific criteria for dealership. Their focus is on

these rules:

Their distributors target customers may not match the ideal customer but reaching

target customers for better growth and retaining the Brand

Their distributors may have near competitive products or alternative solutions.

They may employ pricing and promotion policies which are compatible with companys

marketing strategies.

Whereas, they still have very low criteria to meet the current local market situation. Their

minimum requirements are as under:

Dealership Criteria

Sales Criteria

The minimum sales of distributer should be 1,000,000/- (One Million for small cities

And 1,500,000/- should be for Major city Area i.e Lahore, Karachi

Infra Structure

Showroom - Minimum 40 x 40 sq. meter show room

Store Room - Optional and Preferable

Frontage - 10 15 Meters


14/35


Page 12

Prerequisites

Customer Centric and well interior Show Room

Strategic Location

Brand Compatible Area

Dealership Incentive Schemes

Company dont have any specific distributor ship incentives and promotions, they are all

working on commissions of sales, Commission rate is based upon their volume of sales,

depends upon the market and city of show room.

Sales Promotion

Whereas company offers many sales promotion

Credit Note

Company gives credit note to the distributer, after completing the monthly tarots. All theamountis credited in the distributers account and can be utilize in next month, Ir means

they can purchase more material from Karam Ceramix

Annual Reward

They held an annual meeting, and amount distributer of the year, whereas give small

prizes to all distributers.

Order Processing Method

Company Generates two types of orders

Direct Sales Through Distributer


15/35


Page 13

Direct Sales

Company deals with walk in customers at their outlet and there is no formality of order,

Customer comes, select design and take it away. Payment is made on spot

Through Distributer

There is a chain process for Order Processing

Account Creation

At the time of Agreement, Distributer open an account with Karam Ceramix, and and

compulsory have Minimum Rs. 1,000,000/-of Credit Balance.

Order Application

At the time of purchase, Distributer fills physical order form along with all required data.

Such as, Current Credit Balance, Price of order, Order for Month, Delivery Date /

Acknowledgment

Approval from Head Office

After Processing of Physical application form, Distributer takes approval from Head Office

for the delivery

Approval has two parts,

Credit Balance Value of Order

Delivery Channel

Company has dual policy for Delivery

Delivery in Same and Major City

Company delivers the order to the distributers where house if in the same city o major

city I.e Lahore, Rawalpindi or Karachi


16/35


Page 14

Delivery in Other Cities

Company Does not offer delivery to distributers if are not in major city . Distributer itselfpays charges for delivery. Such as mandi bahaud din.

Dealership Cancellation

Distribution Agreement can be cancelled either by both parties

By Karam Ceramics By Distributer

By Karam Ceramix

Karam Ceramic monitors the sales and performance of distributers each month, If

distributers fails to achieve the targets continuously three months, can be terminated as

distributer at any time, This option is stil held with Karam Ceramics, Either to continue

distribution ship or cancel it.

By Distributer

A distributer also have to right to terminate the distributor ship at any time, but Noticeperiod to cancel the agreement is before 3 months.

Note : In both cases, All the credit balance and security held with company is refunded to

karam ceramics.


17/35


Page 15

Companys Distributers and Outlets

(Address and Contact Number)

LAHORE

Ammar Sanitary store

199-Ferozpur Road, Lahore

PH: 042-37580173

Makka Sanitary store

Ferozpur Road, Near Mazang Chungi, Lahore

PH: 042-37587632

RAWALPINDI

Asia Sanitary Store

Muslim Market, Jinnah Road, Rawalpindi

PH: 051-5537488

Main Jee Market, Jinnah Road, Rawalpindi

PH: 051-5772736

Aqeel sanitary store

CH: Waris Plaza, Khanna Road, Rawalpindi

PH: 051-34470263

SAILKOT

Modern Sanitary House

Circular Road, Sialkot

PH: 052-34582000. 03216132000


18/35


Page 16

FAISALABAD

Haji Manzoor Sanitary Store

Railway Road, Faisalabad

OKARA

Al- Madina Sanitary Store

Deepalpur Road, Okara

PH: 0333-6964161

SAHIWAL

Khadam Boring House

Church Road sahiwal

PH:040-4465223

GUJAR KHAN

Butt Sanitary Store

Railway Road,

PH:051-3511326

MULTAN

Al-Khair TradersHassan Parwana Colony, Multan

PH: 03009639940

Leader Ceramics

Hassan Parwana Colony Multan


19/35


Page 17

JHELUM

Daar Ties

A llama Iqbal Library Road Jhelum

PH: 054-4624697

M Saleem Tiles

Bilal Town, Near Commercial College, Jhelum

PH: 0321-8512412, 054-43732191

LALA MUSA

M. Sanitary Store

Mall Road, Lala Musa

PH: 03456780390

ATTOCKNorthern Hardware and Paint Store

B-59 Civil Bazar Attock

PH: 0300-5172211

GUJRAWALA

Madina Traders

OPP. Iqbal High School. Gujrawala

PH: 0553-735199

United Traders

OPP. Iqbal High School. Gujrawala

PH: 0553-840274


20/35


Page 18

MIRPURMushtaq Sanitary Store

Allama Iqbal Road Mirpur A.K

PH: 058274-39250

PESHAWAR

Shoaib Pipe Store

Khebar Bazar, Peshawar

PH: 091-32553922

PIRMAHEL

Zeeshan Sanitary Store

Ghallah Mandi, Pir Mahel

PH: 0333-8941143, 0463-367336

MANDI BHAWALDIN

Asia Sanitary StorePhalia Road, M.B.A

PH: 0546-3507849

JHANG

Haji Noor Iron Store

Kot Road, Jhang

PH: 047-37624450


21/35

ALLOCATION OF CHANNEL FUNCTION AND FLOWS

Page 19

Allocation of Channel Function and Flows

The distribution channel of KARAM CERAMICS allocates the different functions of channel

and work is performed on different levels of channel. Following are the channel flows and

functions performed by different channel members.

CHANNEL FLOWS

PhysicalPossession

Flow

OwnershipFlow

PromotionFlow

NegotiationFlow

FinancingFlow

RiskingFlow

OrderingFlow

PaymentFlow


22/35


Page 20

Physical Possession Flow:

In the above diagram, KARAM CERAMICS uses this channel flow for physical possession of

refrigerators. Producer transfers refrigerator to its dealers and the dealers transfers to customers.

Ownership Flow:

In the above diagram, KARAM CERAMICS uses this channel flow for ownership of

refrigerators. Producer transfers ownership of refrigerators to its dealers and dealers transfer

ownership of refrigerators to customers.

Promotion Flow:

In the above diagram, KARAM CERAMICS uses this channel flow for the promotion of

refrigerators. Producer does promotions of refrigerators for its dealers and dealers do

promotions of refrigerators for its customers.

Negotiation Flow:

In the above diagram, KARAM CERAMICS uses this channel flow for negotiation between

each others. Producer and dealers do negotiation regarding their transaction and daily work

between each other. The dealers and customer do negotiation between each other.






23/35


Page 21

Financing Flow:

In the above diagram, financing flow has been shown. The producer and dealer both finance to

each other in business activities and dealer and customers finance to each other in the business

activities.

Risking Flow:

The above diagram shows the risking flow which affects both sides in the channel. Both

producer and dealers consider risk in the daily business activities and dealer and customers also

consider risk.

Ordering Flow:

In the ordering flow of marketing channel there is reverse flow in the channel. Customers order

to dealer for refrigerators and the dealer give order to producer (KARAM CERAMICS) for the

demand of refrigerators.

Payment Flow:






24/35


Page 22

In the payment flow of marketing channel there is reverse flow in the channel. Customers make

payments of purchasing of refrigerators to dealer and the dealers make payments to producer(KARAM CERAMICS) for purchasing of refrigerators.


25/35

MEMBERS OF KARAM CERAMICS CHANNEL OF

DISTRIBUTION

Page 23

Members of KARAM CERAMICS Channel of

Distribution

There are 1600 members of KARAM CERAMICS Channel of distribution from which

currently active 1200 members all over the Pakistan. This means there are 1200 retailers of in

Pakistan are selling the products of KARAM CERAMICS.

FUNCTIONS

The distribution channel of KARAM CERAMICS performs different functions of daily

business activities for performing effectively and efficiently. There are some functions of

distribution channel of KARAM CERAMICS which are given below.

Carrying of Inventory Demand generation Physical distribution After-sale service Extending credit to customers Emerging and spreading persuasive communications about given offers and promotions. Finding, searching and communicating with prospective buyers. Shaping and fitting the offers according to the buyers needs including activities such as

manufacturing, grading, assembling and packaging.

Reaching an agreement on price and other terms of the offer so that ownership orpossession can be transferred.

Transporting and storing goods. Acquiring and using funds to cover the costs of the channel work Assuming the risks of carrying out the channel work


26/35


DISTRIBUTION

Page 24

Demand Side Factors:

The demand side factors of distribution channel of KARAM CERAMICS are as follows;

Facilitation of Search:

The distribution channel of KARAM CERAMICS facilitates its customers to search its

products easily. In 21 cities of Pakistan KARAM CERAMICS has its dealers and in those cities

the customers can easily see its products and get awareness about the products.

Adjustment of Assortment Discrepancy:

The distribution channel of KARAM CERAMICS adjusts the assortment discrepancies by

dividing its products according to different sizes. Following are the functions that are

performed by the distribution channel of KARAM CERAMICS.

Sorting:

The distribution channel of KARAM CERAMICS sorts its products in different sizes

Accumulation:

The distribution channel of KARAM CERAMICS accumulates its products from the factory

and makes available to the customers by distributing at their nearest place.

Allocation:

The distribution channel of KARAM CERAMICS breaks down its supply into different sizes

stock.

Assorting:

The refrigerators are assorted by the distribution channel and KARAM CERAMICS distributes

the refrigerators by assortment.


27/35


DISTRIBUTION

Page 25

Supply Side Factors:

The supply side factors of distribution channel of KARAM CERAMICS are as follows;

Routinization of Transactions:

The distribution channel of KARAM CERAMICS distributes its products routine wise that

makes the distribution channels work efficient and effective.

Reduction in Number of Contacts:

The distribution channel of KARAM CERAMICS has fewer levels in its distribution channel

that increases the return on products to the company.


28/35

ABILITY TO MEET TARGET CUSTOMER SEGMENTS

DEMAND FOR SERVICE OUTPUT

Page 26

Ability to meet Target Customer Segments Demandfor service output

The distribution channel of KARAM CERAMICS is doing its job effectively and efficiently.

The following points are the facts of this statement that KARAM CERAMICS is meeting the

target customer segments demand for service output.

Production Capacity:

The production capacity of KARAM CERAMICS regarding refrigerator varies according to the

season or non season months. The seasonal months starts from March and ends in September. It

is 7 months duration that is called season and the production capacity in the season

approximately 2000 refrigerators per month.


29/35

GAP ANALYSIS

Page 27

Gap Analysis

SOURCES OF GAPS:

The sources of gaps in the distribution channel are given below.

Environmental Bounds:

There are no local legal constraints for KARAM CERAMICS to distribute its products in the

Pakistan. KARAM CERAMICS can distribute its products in all over the Pakistan and

KARAM CERAMICS is doing this for its customers to penetrate the market.

Managerial Bounds:

There are some managerial bounds in the working of distribution channel of KARAM

CERAMICS. Sometimes there comes a conflict in the working of channel work the

management of distribution of KARAM CERAMICS bounds some areas to distribute its

products.

EnvironmentBounds Managerial

Bounds


30/35

GAP ANALYSIS

Page 28

TYPES OF GAP

The types of gap are as follows.

Demand Side Gaps:

There are some gaps in the demand side of distribution channel of KARAM CERAMICS.

Sometimes in the season (summer) when there is high demand of refrigerator there comes gap

in the supply of refrigerators in the market because in the summer season there is more demand

of refrigerator but there is less supply and this creates gap in demand side.

Demand Side Factors

Supply Side Factors


31/35

GAP ANALYSIS

Page 29

Supply Side Gaps:

There are some gaps in supply side of KARAM CERAMICS distribution channel. Sometimes

the cost of distribution of products gets high due to uncertain events that happen. Due to

uncertain events like accidents the cost gets increase and there comes gap in supply side of

distribution channel of KARAM CERAMICS.


32/35

POWER

Page 30

Power

KARAM CERAMICS has the power on its channel members due to its hold on the distribution

functions and activities to make the channel work effective and efficient.

SOURCES OF POWER

The sources of Power are given below:

Reward Power:

KARAM CERAMICS has the reward power on its dealers because it gives rewards to those

dealers who have the high sale in the preceding year. KARAM CERAMICS gives different

types of incentives and tour tickets of other countries to those dealers who have high sale in the

preceding year. Due to these types of rewards dealers try to increase the sale.

Legitimate Power:

KARAM CERAMICS has the legitimate power on is dealers because KARAM CERAMICS

does contract with every new dealer whom wants to becomes the distribution channel member

of KARAM CERAMICS and applies some terms and conditions by doing that contract. Due to

this contract every dealer of KARAM CERAMICS distribution channel is bounds to follow

terms and conditions of the company.

Channel Conflicts:

There come channel conflicts sometimes in performing the channel functions that creates

problems in the functions of channel.

Types of conflicts:


33/35

POWER

Page 31

The conflicts types are following which occur in the working of channel functions:

Sometimes dealers do not make payments of purchases. Sometimes dealers do not follow the company policies Sometimes dealers do not fulfil the contracts


34/35

CHAPTER 2 ATTACHMENTS

Page 32

Chapter 2 Attachments

Application Form Dealership Contact Copy


35/35

REFERENCES

References

Oral Information

All the Oral Information such as order processing, obtained from Marketing

Department / Head Office

Physical Letters

Contract Letter of Dealer / Application form from Lahore Office

Web Links

http://www.karamceramics.com/contact.htm

http://www.karamceramics.com/profile.htm

http://www.karamceramics.com/products-line.htm
http://www.karamceramics.com/contact.htmhttp://www.karamceramics.com/profile.htmhttp://www.karamceramics.com/profile.htmhttp://www.karamceramics.com/contact.htm

Final Marketing Chamarkerinnel(1)

Documents