Research Report - Sales Fluctuaions in Fan Industry

DEDICATION

This research is dedicated to my Parents, Teachers, and all those whose prayers

have always paved the way to success. The ultimate dedication is towards those

innocent people who died by suicide bomb blast in Pakistan before their time.

Research Report on Sales Fluctuation in Fan Industry Page ivQazi Ashfaq

ACKNOWLEDGEMENT

All praise to Almightily Allah and His last Prophet (PBUH) who have bestowed upon me

Their blessing, which helps and enabled me to accomplish this research successfully. At

the outset, I feel obliged to express my profound gratitude to my research supervisors Mr.

Haroon, who has throughout the research work provided me with endless help, valuable

guidance and encouragement. His expertise, experience and ability to open new vistas of

knowledge have contributed much in meeting my educational quest. Beside I truly

appreciate my friends and class fellows who have helped me immensely in making my

research achievable and complete. Their support and guidance made this project possible.

Research Report on Sales Fluctuation in Fan Industry Page vQazi Ashfaq

EXECUTIVE SUMMARY

Pakistan is a challenging country so it is facing a challenge of the foreign investment and

the latest technology that has baldy struck the domestic market of Pakistan that is

consisted of Gujrat, Gujranwala and Faisalabad and many other cities of Pakistan. Now a

days Pakistan’s domestic manufacturers are facing lot of problems like their sales are

declining, market share has been decreasing and above all customers are also decreasing.

One of the industries is the Fan industry of Pakistan.

This study is based on the problem “sale declining of fans”. The main purpose of this

study is to identify the reasons of study and clear the dilemma of split units. In this

research report the data gather from companies of fans in Pakistan are Wahid Industries,

General Fan Company, Millat Industries and Super Asia Electronics. Theories of

researchers like Niki Owen and Larsson H.J and others have also been used as reference

and to study the problem literature.

The data has been gathered through the questionnaires and interviews conducted from the

customers, users of fans and the various shop owners. The results of data analysis are

shown through graphs. The conclusion part of the research describes that what are the

factors and reasons which influence sales of fans negatively and how dilemma of split

units exists.

Research Report on Sales Fluctuation in Fan Industry Page viQazi Ashfaq

Tables of Contents

CHAPTER-1

1. INTRODUCTION....................................................................................................................................IV

1.1 FAN INDUSTRY: LOCAL AND EXPORT MARKETS....................................................................2

1.1.1 Raw material..................................................................................................................................3

1.1.2 Exports...........................................................................................................................................3

1.1.3 The main constraints hindering the growth of industry as well as export are:.............................4

1.2 INTRODUCTION OF COMPANIES...................................................................................................7

1.2.1WAHID INDUSTRIES (PAK FANS)...............................................................................................7

1.2.3 MILLAT INDUSTRIES.................................................................................................................14

1.2.4 SUPER ASIA ELECTRONICS INDUSTRIES..............................................................................16

1.2.5 PAK UNION FAN INDUSTRIES.................................................................................................17

1.2.6 SUPER INDUS ELECTRICAL INDUSTRIES.............................................................................19

1.2.7 OTHER FAN PRODUCING COMPANIES.................................................................................19

1.3. BROAD PROBLEM AREA...............................................................................................................20

1.4 PURPOSE OF THE STUDY..............................................................................................................21

1.5 TYPE OF INVESTIGATION:............................................................................................................21

1.6 EXTENT OF RESEARCH INTERFERENCE:..................................................................................22

1.7 RESEARCH OBJECTIVES................................................................................................................22

Primary objectives................................................................................................................................22

Secondary objectives.............................................................................................................................22

1.8 SCOPE OF THE STUDY....................................................................................................................22

1.9 LIMITATIONS....................................................................................................................................23

1.10 PROBLEM DEFINITION.................................................................................................................23

CHAPTER-2

2. LITERATURE REVIEW........................................................................................................................25

2.1 NIKI OWEN ASPECTS......................................................................................................................26

2.2 ADVERTISING MISTAKES.............................................................................................................27

2.3 SALES AND SALES SWITCH..........................................................................................................29

2.4 PRICE OF THE PRODUCT...............................................................................................................31

2.5 IMAGE OF THE PRODUCT..............................................................................................................33

2.6 ADVERTISING OF THE PRODUCT................................................................................................35

2.7 QUALITY OF THE PRODUCT.........................................................................................................37

2.8 COMPETITION OF THE PRODUCT................................................................................................39

Research Report on Sales Fluctuation in Fan Industry Page viiQazi Ashfaq

2.9 EXTERNAL CAUSES........................................................................................................................40

CHAPTER-3

3. THEORETICAL FRAME WORK:.......................................................................................................45

3.1 BASIC FRAMEWORK..............................................................................................................45

3.2 PRACTICAL INTERACTION OF VARIABLES..............................................................................46

CHAPTER-4

4. HYPOTHESIS DEVELOPMENT:........................................................................................................47

CHAPTER-5

5. RESEARCH METHODOLOGY............................................................................................................48

5.1 TYPE OF STUDY....................................................................................................................................48

5.2 RESEARCH INSTRUMENTS....................................................................................................................48

5.3 RESPONDENTS OF THE STUDY..............................................................................................................49

5.4 SAMPLING PROCEDURE........................................................................................................................49

5.5 SUMMERY OF INTERVIEWS..................................................................................................................50

CHAPTER-6

6. CONCLUSION & RECOMMENDATION...........................................................................................52

CONCLUSION..............................................................................................................................................52

RECOMMENDATIONS..................................................................................................................................54

TABLES AND GRAPHS………………………………………………………………………………..56

REFERENCES..........................................................................................................................................62

APPENDICES...............................................................................................................................................64

QUESTIONNAIRE.........................................................................................................................................64

Tables of Contents.....................................................................................................................................vii

Research Report on Sales Fluctuation in Fan Industry Page viiiQazi Ashfaq

1. INTRODUCTION There is no doubt that Pakistan is a developing country and has a strong domestic market.

For the last couple of years Pakistan’s economy has been increased in the world and has

also becomes an identified challenging country. There are many factors that help Pakistan

to become stronger in the world. The industry whether it is an education, sports or media

Pakistan has never stop to progress and meet the upcoming challenges of the world.

Pakistan’s another significant aspect that also boosts the economy of Pakistan is foreign

investment that has been doubled for the last couple of years. The countries like Norway,

U.A.E, Netherlands, Singapore, Japan and China has now become the most significant

investors in Pakistan. The popular industries of investment are banking, telecom and

home appliances (Foreign Direct Investment).

As said, Pakistan is a challenging country so it is facing a challenge of the foreign

investment and the latest technology that has baldy struck the domestic market of

Pakistan that is consisted of Gujrat, Gujranwala and Faisalabad and many other cities of

Pakistan. Now a days Pakistan’s domestic manufacturers are facing lot of problems like

their sales are declining, market share has been decreasing and above all customers are

also decreasing. One of the industries is the Fan industry of Pakistan. The people of

Pakistan should know about the domestic market, so this study will help them to have a

little view of a single domestic industry.

This study is descriptive study that defines that various reasons of what has happened in

domestic market that cause the trouble like this. Essentially, this study will provide the

information like, customers behavior about the industry, what are the opinions of the

shop owners? What are the reasons behind low sales? And how can sales be increased?

Research Report on Sales Fluctuation in Fan Industry Page 1Qazi Ashfaq

1.1 FAN INDUSTRY: LOCAL AND EXPORT MARKETS

Fan is a daily use item. Its utility increases, especially in the summer season. The industry

is producing about 5 to 6 millions fans per annum and meeting successfully the local as

well as export demand. Out of the total production, approximately 30 percent fans consist

of pedestals, 7 percent consist of brackets and remaining 63 percent are ceiling fans. The

industry belongs to light engineering industry category, and is one of the industries that

existed at the time of independence. In the early 1950s it was declared as cottage industry

and its more than 50 percent units still fall in this category.

Fan industry is mainly confined to Gujranwala and Gujrat, cities of Punjab province of

Pakistan. The reason for its remaining a cottage industry is that majority of the units does

not have full facilities of production under one roof. They usually give offers to the units

having machines for different parts like fan guard, blade castings, core lamination etc.

These units have lathes, shapers, milling machines, and power pressers, die casting

machines and electroplating equipments. Therefore, most of the units are simply

assembling units. Thus, they do not give brand names to their products.

Besides small and medium units, a few units are quite large and have integrated system

i.e. from motor winding to high-pressure dies castings. These companies have reputed

brands names and the qualities of their products are of international level. The units are

the main players in export field.

The industry is producing a variety of products indifferent sizes and designs. The major

products are: Ceiling, Pedestals, Table, Table-Cum-Pedestal Fans, Circumatic Fans, Wall

Bracket, Exhaust Fans And Propellers.


The industry supplies quality products to the local markets, whether branded or

unbranded, at competitive prices. About 400 units have a production capacity of 5 to 6

million fans, on single shift basis. The production is equal to demand, including a

nominal quantity of exports. The actual production has remained about 2.5 million fans

per annum, showing a 50 percent idle capacity. The demand for fan is continuously

increasing due to increase in population and speedy migration towards a big cities, and

exports. The other factor is that during the last few years, local demand for quality

products is increasing fast as compared to low price goods. This means people are

becoming quality conscious.

1.1.1 Raw material Moat of the raw material used by the fan industry are directly ort indirectly imported

from different countries. Irregular and constrained supplies of some basic inputs are the

main bottlenecks. Some of the raw materials used in the manufacturing of a fan are:

electric steel sheets, aluminum, enameled copper wire, ball bearing, steel rod and PVC.

Major fan producing countries are Japan, Korea Taiwan Hong Kong India and China.

Japan is covering high quality market segment of fan market. Korea and Hong Kong are

in middle segment of market while Pakistan India Taiwan and China are supplying

comparatively low quality products at cheaper prices.

1.1.2 ExportsAlthough fans exports have great potential, their exports are negligible. In 1992-93, only

two hundred thousand fans were exported to only two countries, Iraq and Yemen. But

now the industry is exporting fans to more than countries.


The figures given in table-I indicate that although the exports of ceiling fan increased

from RS 134 thousand to 209 million rupees, the trade is fluctuating a great deal. As

against ceiling fans, the increase is pedestal fan export is quite stable i.e., continuously

rising.

Pakistan has also started exporting parts of fans. During the last four years, as shown in

table II, the amount earned from export rose from RS 4.2 million to RS 107 million in

1998-01, but decreased to about fifty percent the very next year, 2001-02. However, in

spite of big fluctuations, it is believed that if some bottlenecks are removed there is a big

scope for enhancing the exports of fans.

The situation is that from very the beginning, the government has not given any

incentives to encourage fan industries., whatever progress the industry made, it has made

on its own resources, and is due to its dedicated and hard working manufacturers and

laborers. In spite of lack of proper training the industry ha innovated and uplifted the

standard to the level where its products can compete in the world markets.

1.1.3 The main constraints hindering the growth of industry as well as export are:Ball bearing is an important part that ensures smooth running and noiseless working of an

electric fan. Fan manufacturers are now importing this item because of smuggled ball

bearings local units are not producing quality products. Thus, anti-smuggling measures

should be taken to save the local industry, which in turn would ensure regular supply of

ball bearing to fan industry at reasonable prices. In the meantime, the import duty on ball

bearings should be rationalized.


Like ball bearings, Electric Steel Sheet (ESS) is also a major item in fan manufacturing.

It determines the quality, performance, durability and electric consumptions of a fan.

However, due to ESS shortage and high prices, fan manufacturers are using Mild Steel

Sheet (MSS). The motors manufactured from this material are not good quality and use

more electricity.

Prices of raw material are a major constraint in export. For instance, in some cases C & F

prices of raw material in Pakistan are greater than C & F price of fans from India.

Therefore, if the government really wants sot increases export of fan, custom duties on

raw material should lowered to a reasonable level.

There is an urgent need to establish a research department for innovation and to improve

designs of fans according to the requirements of international buyers. Pakistan Standard

Institute’s (PSI) procedure should be simplified and the latest technical laboratory should

be set-up to test the fans. The PSI should establish its testing laboratory in the area where

industry exists and test fans on two standards i.e., at local and international. The test

reports should be given in a specific period. Further, an institute of labor training should

immediately be established with the help of PEFM Association. The other measures to

enhance the exports include organizing seminars, doing surveys of the foreign markets

that would give the idea of how to export, where to export and what to export.


Table –I: Export of fans

Years Ceiling Pedestal(000 RS)

1998-99 1341289

1999-00 817621826

2000-2001 1863615137

2001-2002 255232432

2002-2003 1568966370

2003-2004 5925161554

2004-2005 208963183613

Table –II: Parts Of Fans Exported

YearsMillions

2001-2002 4.22002-2003 16.62003-2004 109.72004-2005 67.9

(Millions RS)

Fans Type 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

Ceiling Fans 2.6 15.7 59.3 208.9 90.3

Pedestal Fans 32.4 66.4 161.6 183.6 150.8

Table Fans 1.1 -- -- 0.9 0.8

Exhaust Fans 0.1 0.1 0.1 -- --

Other Fans 2.9 6.9 5.1 27.2 --20.1

Fan Blowers 24.0 13.2 0.7 -- --

Other Fans N.S 3 9.7 5.3 2 --Total 45 42 232.1 422.6 362

Table –III: Fans Exporters by Type Source: Federal Bureau of Statistics.


1.2 INTRODUCTION OF COMPANIES

1.2.1WAHID INDUSTRIES (PAK FANS)

Mission To enhance its reputation its reputation for quality in all its operation, providing a better

quality product to the customers and make their satisfaction through which to maximize

the business profit.

Company profile Wahid Industry was setup in Gujrat as a modest manufacturing unit in 1936. It started its

operation with the manufacturing of light engineering and utility goods. In 1945, for the

first time in this region, the company embarked on the manufacturing of electric fans. It

is a pioneering achievement of Mr. Abdul Wahid, the founder and lifetime chairman of

the company. He simply took it as a challenge, undeterred by the attendant initial

difficulties. His determined efforts were finally crowned with success. The project not

only tool off under his dynamic policies but also register a phase of rapid growth and

expansion, capturing a major share in the country’s markets. Thanks to the founder

Presidents dictum, “no compromise on quality”, Pak fan today is not only synonymous

with top quality fans but also an identified symbol for Wahid industries. Towards making

Wahid industries limited, a self-reliant concern a modern automatic Japanese plant was

installed in 1981. At this plant, we manufactured international quality enameled copper

wire and marked under the brand name if Pak Super. This brand has taken a major share

in local market. So the company is adopting those methods of production and quality

control, which conform to meet international standards.


The company has now its own facilities for accurate testing on the most modern and

sensitive testing equipment. Every product is subjected to the most rigid test and eaves

the factory only when it is finally “passed” by the experts. True to the company’s

progressive business philosophy. Mian Ehsanullah, the director and son of founder

president Mr. Abdul Wahid, is always on the look out for the world’s latest technologies

to adopt and assimilate in the production of Pak fan. His father motto, “no compromise

no quality” is a creed for Mian Ehsanullah, which he adheres to most strictly. To live up

to its progressive image the company keeps itself a breast of the latest technological

developments around the world and this enables the company to continually introduce

ever-new concepts in electric fans. The remote controlled and louver fans are quite recent

examples. As a result of its innovative excellence and ever evolving technological

processes, Pak fan remain the number choice- both at home and abroad, including the

Middle East. In year 1999-2000 Pak fan achieved the highest international quality award

ISO 9002 certified company. Pak fan also won the FPCCI trophy 1999-2000 and now

Pak fan is the largest exporter and manufacturer and electric fans of Pakistan. Towards its

role as a deposable corporate citizen, Wahid industries keeps on and encouraging and

contributing to social uplift programs. The company runs a modern hospital named

“Wahid Trust Hospital” equipped with the latest facilities and leading medical

practitioners.

“Pak fan is the name of durability and reliability”


Future PlanningPAK FAN is very eager to improve its business activities, so far more improvement of

quality assurance. In near future organization is interested in increasing its business area

and wants to capture more market that it already has but not fully captured. This is why

the management is keen to introduce the new iron under the name of Pak Iron Industry.

AddressWAHID INDUSTRIES PRIVATE LIMITED

G.T Road

Gujrat, Pakistan

Telephone +92-053-352528


1.2.2 GENERAL FAN COMPANY (G.F.C Fans)Mission The mission of G.F.C. FANS is to produce such quality products which provide entire

satisfaction to all our customers the world over.

Vision The management and the workers of GFC FANS have a vision to supply in near future all

types of electric fans to all the countries of the world where fans are being used. We see

ourselves as one of the largest and most renowned fan manufacturing company in the

world providing all types of fans to all the countries according to their required

specifications and needs. Our vision is to enlarge our market from the present day Middle

East to whole of Africa, Europe, and America including South America, Central America

and Caribbean. We believe that we have a unique product, which has been developed by

GFC, and no other country manufactures a pedestal fan like ours. This product is most

useful in the hot tropical humid climates. We want to mark this product throughout the

world and we foresee this product to dominate the entire International market. We want

to set up an excellent after-sales-service and spare parts supply service to each and every

country. We also want to set up home service centers throughout the world. We believe

that within 10 years we can achieve an export target of US Dollars 40 Million.

About company General Fan Company (Pvt.) Ltd. was formed in 1954 as a small manufacturing unit for

electric fans. The company grew rapidly from its modest start because of the quality of its

products. The company was one of the major exporters of fans in 1960's to Iraq.

However, the company was in trouble in late 1970's due to differences in its partners. The

present management took over the company in 1978 and Engineer Muhammad Ilyas took

over as Chief Executive of the company. Under his dynamic leadership the company rew


rapidly and G.F.C. became major recognized brand for fans in the Pakistani market. Mr.

Muhammad Ilyas, the Chief Executive who is a foreign trained Electrical Engineer,

brought in new technologies for fan manufacturing from developed countries and

improved G.F.C. products in a continuous process. Automatic Capstan Lathe Machines

and Die Casting Machines were introduced in 1982. Automatic Winding Machines were

brought from Taiwan in 1985. A Japanese made modern Enameled Wire Manufacturing

Plant was installed in 1987 for the manufacturing of quality enameled copper wire for

own consumption as well as for the sale in the local market. Plastic Injection Molding

Machines were installed in 1993 to manufacture own plastic parts for plastic fans like

Exhaust Fans, Bracket Fans, Circumatic Fans and Table Fans. A modern tool room was

set up for the manufacture of Dies, Molds and Models etc. The tool room consists of

Wire Cut Machines, EDM Machines, Surface Grinders, Cylindrical Grinder, Shaper

Machines, CNC Milling Machines and Copy Milling Machines. Automatic Rotor

Balancing Machines were introduced in 1995 to further improve the quality of fans.

Modern Continuous Stamping Presses were installed in 1997 for manufacture of motors

of all type of fans such as Ceiling, Pedestal, Bracket, Exhaust and Circumatic Fans etc.

Slitter Machine for slitting the electrical steel sheet coils was installed in 1999. The

company started manufacturing Washing Machines in 1996. Due to its quality and

excellent finish the product has become an instant success. Gas & Electric Geysers are

being manufactured since year 2000. The Chief Executive Mr. Muhammad Ilyas is a

pioneer in the export of electric fans from Pakistan. To initiate the export from Pakistan

he attended an International exhibition for electrical appliances in 1993 in Abu-Dhabi.

The company also participated In many trade delegations as well as exhibitions arranged


by Export Promotion Bureau and Federation of Chamber of Commerce & Industry In

Bangladesh, Yemen, Saudi Arabia, Dubai, Bahrain. Qatar, Sudan, Egypt, U.S.A. etc.

G.F.C. was the first Pakistani company to export fans to the Middle East. G.F.C. Fans

became an instant success due to their quality and durability in all the markets where

these were introduced. General Fan Company has also set up a unit to manufacture

capacitors used in electric fans, Washing machines and motors. Mr. Muhammad Ilyas

(Chief Executive) and Mr. Muhammad Ijaz (Finance Director) are always on the look out

for the latest technology for manufacturing of electric fans as well as for corporate

management of the company. Now G.F.C. has established a new Computer department

which keep its Executives update about any inquires. This shows the interest of

management not only in manufacturing technology, but they also know the importance of

information technology. G.F.C. has stepped in this Millennium fully equipped with

manufacturing and information technology for Corporate Management and Marketing.

G.F.C can rightly claim that they have all the best technologies in its workshops and in

office, which are available for Design. Production and Management. Our products are

now of International Standard, and we are truly an International Company. Our 600

Employees and Management are committed to Excellence in Quality.

CredentialsGeneral Fan Company (Pvt) Ltd. is a pioneer in the export of electric fans from Pakistan.

To initiate the export from Pakistan we participated in International exhibition for

electrical appliances in 1993 in Abu-Dhabi. The company also participated in many trade

delegations as well as exhibitions arranged by Export Promotion Bureau and Federation

of Chamber of Commerce & Industry In Bangladesh, Yemen, Saudi Arabia, Dubai,

Bahrain. Qatar, Sudan, Egypt, U.S.A. etc. G.F.C. was the first Pakistani company to


export fans to the Middle East. G.F.C. Fans became an instant success due to their quality

and durability in all the markets where these were introduced.

By the grace of God,

G.F.C. has been getting the Export Trophy from FPCCI for the export of electric

fans for many years. The growth rate of fan export from G.F.C. has been

continuously more than 100% per annum for the last 5 years.

1/3rd of the total fans exported from Pakistan are G.F.C. Fans. G.F.C. has large

International orders many times more than the previous years for the financial

year 2001-2002 and we are looking forward to export fans to all parts of the world

including United States and Europe.

Water and Power development authority has issued the renewal of Registration in

1997. Registration Renewal is an honorable success that G.F.C. has achieved.

ISO-9002 Certificate assures that Manufacturing Quality of Electric Fans are

according to International Standards.

Engineer in Chief Branch has given the certificate of Enlistment/Registration

dated: 23-2-2000 on best technical performance.

Contract agreement for supply of G.F.C. Fans for "Army Housing Directorate" at

30 April 2001 and is a big achievement for G.F.C. Fans.

Pakistan Standard Institution has certified according to 1961 ordinance. The

institution hereby grants to G.F.C. Fans. (Hereinafter called "the License") this

License is used as standard mark.


1.2.3 MILLAT INDUSTRIES

Five decades now MILLAT has undoubtedly been a household name when it comes to

the premier quality fans, thus making it the technology of this century. The third

generation is now relishing the superb quality of its products after the two cherished it in

their lifetime. The company came into operation in 1947 and became the pioneer

company in manufacturing of fans. Initially the company started at a small manufacturing

facility in the heart of Karachi at Lawrence Road. Due to its commitment to superior

quality and innovative designs, Millat quickly became the market leader among the breed

of brands. With increase in customer demand the company moved from Lawrence Road

to its premises in site in 1960’s. From then on the company enjoyed a healthy market

share and remained on the path of success due to its through commitment in producing

quality products. With this addition of products, HM Esmail & Co now has a variety of

electrical products to offer. The management of HM Esmail & Co has added same new

designs in the areas of ceilings, bracket and ventilation fans along with the existing range

including the everlasting ceiling, table, pedestal, wall and bracket fans and a full range of

plastic models with innovative and elegant designs.

MILLAT FAN AS A BRANDMillat Fans is engaged in the manufacture and export of all kinds of fans for consumer

and industrial as well as export applications.

Our Products

We started with a big capacity of fans per annum and during a span of a decade, the

company established itself among the top manufacturers in Pakistan. At present, Millat

has been using latest technology, production machines and testing facilities with the


installed capacity of fans per annum. The products are manufactured in line with Pakistan

as well as international standards.

The Certifications...we have

Our products are ISI marked and also approved by apex test houses. The company is

amongst the biggest suppliers to Undertakings and large industrial houses.

Our Quality Control

We follow strict quality control at each and every step right from procurement of raw

materials to in process goods. Each & every belt is checked and passed by our expert

team of QC department before being sent to the finished goods store.

Services

We have a fully equipped technical department to cater to the various needs of the

customer. We fully assist you in designing & modifying your belt pulley drive

arrangements. In case you face any kind of belt failure problem our service engineer

promptly attends to rectify faults at your end. Up gradation is a continuous process in our

factory & we take regular feedback from customers to improve on our quality

Factory Address: E1-B S.I.T.E Korti, Sindh.

Phone: (0221) 870473

Head Office: Madina City Mall 6th Floor Sb-5 AbduallahHaroon Road Saddar, Karchi.

Phone: +92-21-5683717+92-21-5687524

Fax: +92-21-568820


1.2.4 SUPER ASIA ELECTRONICS INDUSTRIES Super Asia is engaged in producing top order home appliances in South Asia.

Recognition of its achievements in quality products is manifested in the form of the ISO

9002 certification. The success tale spread well over 25 years when Super Asia produced

the first washing machine of Pakistan. Later on Super Asia started producing room air

coolers, gas and electric geysers. Keeping in view the requirements and purchasing power

of all the segments of the society Super Asia has introduced different washing machines

to meet their demands. Super Asia has the honor to produce complete plastic body

washing machine for the first time in Pakistan. Another hallmark in quality products is

introducing the double action washing technology through side and center Plaster. In

Pakistan Super Asia has not only introduced a large range of Room Air Coolers in plastic

body, but in different sizes and values as well. Super Asia in order to maintain its

superiority in producing public utility products has introduced hot and cold, and only

cold-water dispenser. It was an instant success' due to its design, effectiveness and

affordable price amongst the consumers. Similarly the complete range of super Asia fans

is of international standard. There are different sizes, colors in Ceiling, Pedestal, Bracket,

Circumatic and Exhaust Fans. Research based products of Super Asia enjoyed a sense of

superiority over similar products in the open market. The objective is, however, to offer

consumers products of international quality at affordable price and this can be judge by

the fact that they are being exported to Saudi Arabia, Dubai, Bangladesh, Sri Lanka and

Myanmar from the last so many years, and their demand is growing day by day.

The success story of Super Asia is due to its chairman Haji Mohammad Yousaf while

Managing Director Haji Muhammad Afzal looks after the production aspects of the

factory. He has a critical approach towards the products and their prices offered by their


competitors. Haji Muhammad Ashraf, Chief Executive of Super Asia has played a

leading role in the marketing aspects of the products. He is fully aware of modern trends

in the International Markets.It will not be out of place to mention the services of Mr.

Faisal Afzal, Mr. Abdul Razaq, Mr. Sohail Yousaf and Mr. Umer Ashraf, that is looking

after different departments of Super Asia. These four young fellows with their higher

education and thriving on the experience of their seniors have produced excellent results.

Apart from looking after the affairs of factory, chairman Haji Muhammad Yousaf is

equally paying his attention towards religious affairs and social work. He has constructed

a Mosque, Mian Muhammad Din Trust Hospital is another example, where free medical

treatment is being provided to factory workers, and the needy of nearby localities.

1.2.5 PAK UNION FAN INDUSTRIESGoal of the company Our goal is to provide you with useful information about our company that we hope make

it easier for you to do business with us.

Company Profile Established in1980, manufacturer of ELECTRIC fans in Pakistan in the brand name of

Super Sonic, in different designs and sizes. It includes special varieties of ceiling,

pedestal, exhaust, bracket fans, table and which display their professional expertise, skill

and are equally renowned locally and abroad. As a corporate policy we believe in

providing best of services to our clients with correct information. Our extra friendly

activities keep our members and dealers cheerful and always ready to provide a helping

hand.20 years in export now also available in Pakistan


Our ethics: We believe in ourselves and saying is doing.

Our Clients:

We export our products to Bangladesh, Sri Lanka, Singapore, Dubai, Saudi Arabia, South

Africa, Nigeria, and Pakistan.We have metal the above quality certifications criteria due

to our highly qualified, experienced and devoted operational staff under the supervision

of professionals, supervisors& inspectors under secure working environments. We are

producing environmental friendly and energy saving products

Service:

It begins and ends with caring, we are for you, fastest, innovative and always with a

vision of future services today. We can develop design according to the requirement of

our clients.

Values:

Our workers are skillfully trained and great emphasis is on attitude and workmanship.

Company Name: Pak Union Fan Industries.

Address: 83, G.T. road, Lahore, punjab, Pakistan

Products/Services We Offer:We are manufacturer of all kind of Fans like Ceiling Fans, Pedestal Fans, Bracket Fans and Exaust Fans

Business Type: Manufacturer

Geographic Markets: Worldwide

No. of Employees: 101 - 500 People

Annual Sales Range (USD): US$2.5 Million - US$5 Million

Year Established: 1980


1.2.6 SUPER INDUS ELECTRICAL INDUSTRIESSuper Indus electrical industries is a largest manufacturer of home appliances such as

fans of all types and sizes, washing machines, room coolers, gas appliances. Super Indus

electrical industry is working in Pakistan from last 35 years. We export our products to

Bangladesh and Middle East countries since 15 years. Our motto is to provide excellent

services to our customers.

Company Name: Super Indus Electrical Industries

Address:58-A Small Industrial Estate No.1, Gujranwala, Punjab, Pakistan

Products/Services We Offer:

Ceiling Fans, Pedestal Fans, Stand Fans, Wall Fans And Exhaust Fans, Washing Machine, Dryer Machines, Room Air Coolers, Gas Stoves, Cooking Ranges, Gas And Electric Water Heaters, Room Heaters

Business Type/ Industry Focus:Fan, Washing Machine , Gas Cooker, Range, Stove , Water Heater / Manufacturer

Geographic Markets: Mid East

No. of Employees: 101 - 500 People

Annual Sales Range (USD): US$1 Million - US$2.5 Million

Certificates: our customers satisfaction is our certificate

Year Established: 1970

Legal Representative/CEO: CEO

1.2.7 OTHER FAN PRODUCING COMPANIES Pakistan Fan Consortium Golden Star FansPak Punjab Fans Global TechnologiesVision Enterprises SevendaysAce Electrical Appliances Amin Industrial Corporation

Pioneer Industries Falcon Enterprises


1.3. BROAD PROBLEM AREA

In today’s highly competitive environments, improving sales has become a strong and

difficult challenge of the marketers. There are many factors in the customer’s mind that

makes sale to happen. Customers make purchase for the particular product because they

have the need that is to b fulfilled. The decision behind of choosing a particular product

for that is been a direct challenge for the marketers to understand the customers. This

study revolves around the similar kind of situation in which the sales of particular product

i.e., FAN has been declined. It occurs because the consumer perceives that the other fan

product offers the right product features, image, or level of quality at the right price or

may be the substitute is available like Split AC. This study answers such questions that

make the sales of fans to decline. The most essential questions that has to be answered by

this study are:

Up to what extent introduction of split units hits the sale of fans?

The common dilemma, is it really the split units that cause trouble for fans?

Whether the quality of fans has been declined or not?

Does competition plays role in making low sales for the particular organization?

Up to what extent the unawareness of customer about local industries is behind

the low sales of fans?

Will advertisement increase and overcome the problem?

There are no easy answers to these questions, yet they trouble marketers in their day-to-

day running of organizations plans and the future of both company and their selves. The

reality behind sales decision is that the level of mind of customers and what motivates

customers is still a big problem for marketers and researchers. In this modern era, most of


the product facing high competition and affecting constantly from their competitors in

diverse ways, this need to be identified seriously.

1.4 PURPOSE OF THE STUDY

This study will investigate the different factors and their influences on sales. it is also

important to understand the characteristics of "problematic" competitors’ attitudes and

behaviors that may lead to difficulties in making sales higer. This study will explore the

customer’s perceptions illustrates the need for more research on customer’s perceptions

about sales and for programs that make customers aware of product information as well

as their actual influence. The aim of this research is to characterize and find out the

different reasons that causes the sales of fans to fall. This study also tells the opinion of

shop owners and customers about the domestic market of Pakistan. Some of the people of

Paksitan still feels that in paksitan quality of products is igored so this also surved a good

purpose. Finally, the most important and highly appreciated purpose of this study is to

ellaborate the dilemma of split units that they cause the sales of fan to decreased.

1.5 TYPE OF INVESTIGATION:

As in the course of my research I am interested for identification of some important

factors associated with the problem so my study lies in the field of co-relational study

where I would like to explain the extent of impact of variables on the customers ratio.

The study under consideration is descriptive in nature where the characteristics of the

variables of interest will be described for better understanding the underlying

phenomenon of sales and customers ratio. In the present case the independent variables

are Competitors’, Price, Quality, Availability and Reliability. While the dependent

variable is Customers Ratio and Moderating Variable is Advertising.


1.6 EXTENT OF RESEARCH INTERFERENCE:

From the Type of investigation it is evident that I am conducting a co-relational study. So

my interest lies on the Customers and shop owners from where I would collect data

through questionnaire and interviewing and would not affect the normal life of the target

group so my research would be with minimal interference.

1.7 RESEARCH OBJECTIVES

Cooper and Schindler (2001:95) say research objectives should address the purpose of the

investigation. The objectives can be stated as research questions. In this study, there are

primary and secondary objectives.

Primary objectives

To know about the fan industry

To find out customers’ behavior about the fan industry

To know the opinion of existing customers about product, price, quality,

availability, attitude of dealers, goodwill, and competitors and advertisement of

companies product.

To find out whether quality of fans is improved or not

To find out whether price matches with the quality

Secondary objectives

To make recommendations that will lead to increased the sales and customer ratio

To learn apply and excel all researcher experience

1.8 SCOPE OF THE STUDY

This study is mainly focusing on the customers, both salaried and businessmen of

Rawalpindi. Moreover, the goal of this research is to describe the impact of split units on

fans sales and the overall industry review. The analysis within this study will be based on Research Report on Sales Fluctuation in Fan Industry Page 22Qazi Ashfaq

both businessmen and salaried. Respondents belong to the upper-middle class, middle-

middle class and low class. The age group is above twenty-five years.

1.9 LIMITATIONS

The scope of this study is limited to only to business area and citizens of

Rawalpindi.

The researcher does not possess any prior experience in this particular field and

therefore this limited experience maybe a binding factor of consideration.

Moreover due to limited funds the researcher is faced with mobility problems and

that is why the scope is restricted to Rawalpindi only.

To add to this there is a time restriction on this research and so a more

comprehensive study cannot be undertaken.

Respondents may not be honest while giving interviews and filling the

questionnaire, that is giving a false or biased picture.

The researcher may not be able to create a perfect questionnaire covering all the

important aspects of the study. Where on the one hand, too many questions may

result in the respondent losing interest and too few may not cover every feature of

the research.

1.10 PROBLEM DEFINITION

In the prevailing competitive environment the products are facing severe competition and

are influenced by the competitors and substitute products in different ways that require to

be identified clearly so that appropriate measures can be taken by the marketers to sustain

the customer ratio for a long time.


In order to find out the factors, which influence the brand loyalty so, the problem

statement is given as below:

“How sales of fans have been declined and what is the impact of split units on sales of

fans?”

OR

“Why the customer’s ratio has been declined?”


2. LITERATURE REVIEW In this section a broad review of literature that is connected to the problem will be

performed. The literature will cover areas linked to reasons and outcomes to give a

general idea of what has been previously studied by other researchers. Also, this part will

provide a foundation for the analysis.

There are number of researchers who provide the reasons and causes of sales declining.

In their research they have proved how different factors affect the sales and force it to

fall. The major threat to domestic manufacture is international manufacturers but besides

that there are man other major threats who cause low sales. Those factors depend upon

the type of product of course but there are exceptions, which mean some of the factors

influence sales regardless of the type of the product. Researcher called those factors

major threat and problems and they recommend marketers to observe and study those

factors before entering in the market. According to Niki Owen (expert in the field of sales

training and sales management training development), following are the main factors

which influence sales in negative manner:

Price

Substitute product

Quality

Competitors

Unawareness


2.1 NIKI OWEN ASPECTS

Niki Owen is a very modern and innovative guru in the field of sales training and sales

management training development. She has developed a remarkable sales training and

sales development system – Sales Activator® which helps to increase sales. She has also

provided some basic reasons other than above that causes downfall in sales. In her sales

research findings particularly in manufacturing concerns, she has discovered four key

aspects of successful selling and according to her, their absence will causes sale

declining. Those four aspects are:

A well defined sales process

Metaphor: The little three pigs. “Then I will huff and I will puff and I will blow your

house down!”

Poorly defined sales process always dilutes sales revenue. In other words, a well-defined

sales process increases sales revenues.

A well defined target market

Metaphor: Goldilocks and the three bears. “Whose been sitting in my chair- and broken it

into pieces”

If the product is not targeting the right audience it can never be successful and unable to

generate sales. A product that is targeted to wrong area and unconcerned people can

easily destroy all the resources of producer. A target is necessary for the sales as income

for the business. A good target market not only enhances the sales but also helps to

introduce new products.

A well-defined promotional campaign

Metaphor: the elves and the shoemaker. “Although he worked hard times were bad and

he became very poor.”


The product is very good and according to the needs of the consumer but how it can

generate sales if its awareness in target market in zero which means no one knows that

there is a product of their demand .a good promotion increases the sales volume and

market share.

A well described benefits

Metaphor: the ugly Ducking. Why, I’ m a swan!”

If product is not beneficial and does not meet the requirement of the consumer it cannot

be successful in the market thus the result would be no sales .the product should speak

the benefits itself.

2.2 ADVERTISING MISTAKES

One of the marketing source website describes promotion is a key aspect in the marking

sales and also a key reason of declining sales. The website describe that sometimes

promotion itself became the reason of sales declining due to ineffective promotion. The

article by Bob Leduc on the website gives 5 common advertising mistakes which affect

the sales negatively. These 5 common advertising mistakes cause you to lose sales. But

you can easily avoid these mistakes once you become aware of them.

Stop and go advertising

Many businesses reduce their advertising when they are getting plenty of sales. Then they

increase their advertising when sales decline. This pattern of stop and go advertising

creates a repeating cycle of high sales volume and low and sales volume. it also prevents

the business from growing.


Develop and follow a plan of regularly scheduled advertising regardless of your sales

volume. Continuous advertising produces steady growth. It also reduces the time you

have to spend on making advertising decisions.

One shot advertising

Businessmen often devote al of their advertising efforts to attracting new customers. But

they devote little or no effort to cultivating theses prospects for further sales.

Most prospective customers will not buy the first time they hear or see your sales

message. But many will buy later if you follow up with them. Your follow up can be a

simple as contacting them periodically with a new offer.

TIP: Customers are prospects too. Stay in contact with them. Find or develop other

products or services you can offer them. It’s easier to make a sale to a previous customer

than to someone who never bought from you.

Copycat advertising

Businesses often copy their competitors advertising ideas. This can be effective for a

short time. But results quickly decline as more and more competitors copy the same idea.

Instead of copying your competitors advertising ideas, improve on them. Create

something better – something your competitors cannot copy.

For example, give your customers a reason to buy from you instead of form a competitor.

This can be as simple as including a unique bonus only you can offer – or providing the

personal attention your competitors are not willing or able to provide.

Scatter shot advertising

Many businesses got poor result from their advertising because they reach too many

prospects with little or no interest in what they are selling. This often occurs because they


choose the cheapest advertising instead of looking for low cost targeted advertising. Take

some time to research and plan your advertising efforts. Look for ways you can reach

concentrations of prospects likely to be interested in your product or services.

TIP: Look for alternative media your competition may be overlooking. For example,

many online marketers have started using direct mail postcards to generate traffic to their

websites. It’s a low cost way to bypass the heavy competition online.

Self focused advertising.

Advertisers often promote facts about themselves or their products in their advertising.

But facts don’t sell. Benefits sell. For example, which of the following has more impact?

1. “We provide complete marketing services for starting your own business”

2. “No more time clock. Work when you want. Take long vacations”

The first focuses on the company and describe the services it provides. It’s boring and

unattractive. The second focuses on the benefit provided by that service. It attracts

attention and creates excitement – and generates more sales.

These 5 common advertising mistakes cause you to lose sales. How many are you

making? Apply the information revealed in this article to avoid these mistakes – and

maximize the result you get from your advertising efforts.

2.3 SALES AND SALES SWITCH

Marketers define the term sale as “final decision by customer to purchase a product”. The

phenomenon sales before occurring pass through the number of processes in the mind of

the customers. Customers have many things running in their mind and when a need or

want about particular thing arises this is the time when customers desires about

something and eventually search for the completion of it. When the customer goes out for


the need fulfillment and search for the product, there should be some product that realizes

him that it is the one he is searching for. The decision of making purchase comes to

happen when customers make the decision of the right product to satisfy the need and he

buys it. The phenomenon attraction also exists when there is more one product available

for the need fulfillment. It is the time where customer gets confused. In this situation

customer buys that product about which he has heard or listened through friend or any

promotional medium. Thus, making sales totally depends upon the decision of the

customers unless the marketers do something to grab their attention towards their product

through promotion or something beneficial. The researchers have defined sales through

following equation.

Sales=Product + Desire benefits + Decision (Lassar, Mittal and Sharma 1995).

The equation states that customer makes sale only when he sees a desired benefits in the

product that will satisfy his need than he makes a final decision of purchasing it. The

better the benefits offered the higher the sales of the product. Inversely, sometimes

customers are dissatisfied by the product and they want to switch their purchase to

another available product for satisfy their need. This situation happens when need is not

satisfied by the product and another product is available which makes the customer curios

and resulting a sales switch to that particular product.

Customer switch= dissatisfaction + substitute product + curiosity + decision

When this sort of unwanted situation occurs in the external environment of the

organizations, the ultimate result is the declining of the customers ratio or sales declining

or market share losing.


2.4 PRICE OF THE PRODUCT

In many countries, price is always been a key problem for the marketers to cope. As

customers are human and very curious and difficult to understand, marketers sometimes

get confused about setting the price according to quality or according to the market. The

companies around the globe have now become customers oriented and when a company

becomes customer focused, everything starts to look different. That is because everything

in a business can be viewed from a customer perspective. For this reason good customer

satisfaction and loyalty programs span the entire organization.

The different effects observed in previous studies lead one to consider whether other

variables could act to moderate these effects. The present study is to point out such

variables moderating the effects of price promotions among competitors. It is suggested

that the particular effects of price promotions depend on the image of the promotional

brand, as well as consumers’ loyalty status. (Kocas, 2005; Shor and Oliver, 2006)

Furthermore, this effect is expected to be moderated by consumers’ loyalty status. High

loyalty consumers who are more affectively and cognitively affiliated with a brand are

more sensitive to the compatibility between price incentive and brand image than low

loyalty consumers and also if the more customers are loyal to then brand the customer

ratio or market share will tend to increase in return.

For prestigious brands, using price incentives to promote prestigious brands can damage

the exclusive status of the brand in high loyalty consumers’ minds. Thus price incentive

is expected to have a negative effect on high loyalty consumers’ brand affect for a

prestigious brand. For low loyalty consumers of a prestigious brand whose affiliation

with the prestigious brand is weaker than that of high loyalty consumers, they are less

sensitive to the incompatibility between the incentive and the brand image. Therefore,


price incentive should have a weaker impact on low loyalty consumers than on high

loyalty consumers of the prestigious brand. (Yung-Cheng Shen, 2005)

The situation is different for non-prestigious brands. As price advantage is often an

important reason for consumers to purchase non-prestigious brands, price incentive is

expected to be more compatible with the image of a non-prestigious brand than with a

prestigious brand. “Moreover, for high loyalty consumers who buy non-prestigious

brands for the reason of price advantage, they tend to regard price advantage as an

important brand benefit. Hence price incentive would have a positive effect on the brand

affect of high loyalty consumers. In contrast, for low loyalty consumers who are less

sensitive to the compatibility issue, price incentive is expected to have weaker impact on

their brand affect than on high loyalty consumers for a non-prestigious brand”. (Allenby

et al., 2004; Dawes, 2004; Tauras et al., 2006),

Nonetheless, evidence arguing otherwise also exists. Neslin and Shoemaker (1989)

pointed out that the negative relationship between incentive and repurchase probability

on the aggregate level could result from the way the data were aggregated. They

demonstrated that it was possible to observe a decrease in aggregate repurchase

probability due to promotion even if individual levels repurchase probability remained

the same. Moreover, Davis et al. (1992) conducted a field experiment and found that

price incentives did not have negative impacts on consumers’ brand evaluations. They

used price incentives to promote four grocery items for 4 months, and compared

consumers’ brand attitudes before and after the promotions. No negative change in brand

evaluations was found in their study. Finally, Ehrenberg et al. (1994) also found no

difference in sales volume or repeat purchase behavior due to price promotions.


Therefore, although there was evidence supporting a negative effect of price incentives

on consumers’ brand evaluations, evidence indicating different directions of effects was

also found.

2.5 IMAGE OF THE PRODUCT

Here comes the way one presents one’s product or services this is called the Image.

“Effective image results in a loyalty of the customers and brands as well. Three mandates

that support it include knowing customers, aligning the corporate resources to deliver the

desired results and monitoring the impact and effectiveness of the image and the changes

in the marketplace. Organizations try to plan to create customer loyalty for their products

or services. To get profits the loyalty should be on the foundation of the brand image.”

(Roberts, Helen, 2000). The consumer needs to pampered these days because this is how

is forced to come back to you. If you will not deal with him or her the way they expected

then they will never come back to you. “The customers are required to attach emotionally

to a brand. Many companies, now days are emphasizing on this issue. Building up

relationships and making customers come back is part of strategy these days. Customers

are convinced that they are getting for what they pay. Now a days rather than targeting

the mass market, the emphasis is on establishing valued emotional relationships with

individuals.” (Walton, Thomas, 2001). If the customer is attached to a brand once he will

never go unless he feels that he is not getting the same from the product or the selling

person. “It is clear that brands begin and end with people, and that companies suffer for

lack of deep knowledge of the end customer-how she thinks, perceives, and acts within a

natural cultural context. Confusion, faulty assumptions, and bad decisions are the natural

consequence of that information deficit. (Bill Vernick, Knowing Your Customer, vol6,


p54, 2001). In the current time almost of all the businesses provide solutions online and

try too show their brands on line and creat better image in the consumer’s mind as well.

This has very serious concern with the brand loyalty and the position of a brand in the

mind of the consumer. It can bring either positive or negative impact but mostly it is

positive. “The customer who is prepared to pay a substantial premium for consumer

electronics but who discovers, upon visiting a company website, that brand images take

an interminably long time to build-or that crowded pages and unclear navigation make it

next to impossible to locate a brand image. Both cases would severely undermine this

customer's confidence in the brand and his or her motivation to purchase. (Jackson, 2002)

Marketers have long courted consumers based on the age, gender, culture and attitudes

that brand loyalties are formed early in life and dictate our purchases at retail for decades

to come. The image we get, the loyal we are, marketers have assumed. Consumers have

the exclusive on being open-minded about brands, right?( Christina, 2001). In some

categories, that are true, according to recent Roper surreys, but on the whole, the

relationship between brand loyalty and image has been vastly overstated. In reality, it is

not one's brand that dictates consumer choice, but rather one's image. And image teaches

us not just to become "creatures of habit." Instead, we also learn to ask the right questions

and look for proof of claims; it enables us to examine life from a broader perspective.

Sometimes brand image makes us more loyaly. (Carolyn Setlow, 2002). Moreover,

customers ratio varies more by category than by image, depending on such factors as the

number of brands in a category, the range of price points and the real/perceived

differences among brands (Gale Group, 2002) Just as consumers in many categories


remain open-minded about brands, marketers must remain open-minded about consumers

and the opportunity to attract them, at all ages, to brands.

Differentiating between the brand triggers such as a brand name, a distinctive logo or

even a distinctive product design and image (i.e. the shape of a BMW), or a color scheme

(BP) etc. and the brand associations (brand image) triggered by them is a first step to

understanding what makes good brand management. Since these triggers are learned -

and often loved - by consumers, they have to be kept consistent over time. If brand

triggers change suddenly, the access to the associations stored in the mind can get

irritated. Consumers ask themselves, "Is this really still the same product?" A suddenly

changed brand trigger can cost millions of hard-earned brand-equity dollars and ruin

brand profits by throwing consumers back into a search mode. (Guenther Mueller-

Heumann, 2000)

2.6 ADVERTISING OF THE PRODUCT

Significant amounts of money are spent every year on advertising. Noticeably, in many

advertising-intensive markets the products are nearly homogenous. This suggests that

advertising could be used to redistribute buyers amongst sellers and not (only) to increase

demand. Scherer and Ross (1990) note: “double-blind experiments have repeatedly

demonstrated that consumers cannot consistently distinguish premium from popular-

priced beer brands, but exhibit definite preferences for the premium brands when labels

are affixed-correctly or not”.

Many advertising campaigns have rather an emotional content and try to attract

consumers by associating the product with attitudes or feelings that have no relevant

relationship to the brand or its consumption. Commenting on Chevrolet’s 1988


“Heartbeat of America” TV ads for automobiles, G.M.’s advertising executive Sean

Fitzpatrick observed that they “may look disorganized, but every detail is cold-heartedly

calculated. People see the scenes they want to identify with. [...] It’s not verbal. It’s not

rational. It’s emotional, just the way people buy cars” (see Scherer and Ross 1990 p. 573,

originally from “On the Road again, with a Passion”, New York Times October 10th,

1988.) Persuasive advertising could be a way to influence such customers to a brand and

categorization through mental associations. Pepsi’s 1997 GeneratioNext campaign

defines itself as being “about everything that is young and fresh, a celebration of the

creative spirit. It is about the kind of attitude that challenges the norm with new ideas, at

every step of the way”. Advertising contributes towards loyalty prevailing in consumer’s

mind about a specific brand.

Referring to the new trends in television advertising, James Twitchell, Professor of

advertising at the University of Florida, noted that “Advertising is becoming art. You

don’t need it, but it’s fun to look at” (see Herald Tribune, January 10, 2003). Loewenstein

(2001) remarks “while conventional models of decision making can make sense of

advertisements that provide information about Brands (whether informative or

misleading), much advertising- for example, depicting happy, attractive friends drinking

Coca-Cola seem to have little informational content. Instead such advertising seems to be

intended to create mental associations and brand loyalty that operate in both directions,

causing one to think that one should be drinking Coca-Cola if one is with friends (by

evoking a choice heuristic) and to infer one that one must be having fun if one is drinking

Coca-Cola (playing on the difficulty of evaluating one’s hedonic state).” See also

Camerer et al. Advertising results in the creation of loyal consumer groups attached to the


firms and on the other it also creates the brand loyalty among customers, persuasive

advertising may be used to relax price competition (Ugur Akgun, Ramon Caminal,

Xavier, 2003) Remember that you owe your insight to the consumer, who should always

drive your efforts. If you get off track and the consumers tell you, you must listen. This is

the reason you have to keep checking with them, to make sure you have stayed true to

their original guidance. Simply listen to consumers, because it's the best way to improve

any new product, advertising, marketing, and packaging. Jack Gordon (AcuPOLL); Bill

Vernick and Bob Sukys (BrandMine, 2003). Being a brand loyal in the current scenario is

very difficult because of variety of substitutes and bombardment of adds. This makes a

consumer confuse about the selection of a product and remembering the actual product.

This is not only for expensive or big products but for all. So if a company comes with a

poor strategy to introduce a product or enter in market it fails. So to make a product a

success preference is set which results in the creating brand loyalty. “For understanding

of brand preference first thing is communication, because this is how we perceive or

actually know things so it plays important role in building brand loyalty. The second

thing is to know true and false brand loyalty. It is also very important to know the way

the marketers uses our sense to position the product in our minds.” (Bill Nissim, 2004)

2.7 QUALITY OF THE PRODUCT

In the information age an organization’s most valuable assets are intangible (Jensen ;

1999 Doyle, 2000 ; Mouritsen 2000) and the more valuable assets include brands and

their reputations (Hall, 1992; Rust, Zethaml and Lemon 2000). In a highly competitive

business environment, customers have become one of the most important strategic

resources. Customers of a company are from three sources: existing customers,


completely new customers, and new customers transferred from competing companies.

Despite of the completely new ones, customers can be divided into two groups: those

with high loyalty and those with low. Donna and Theodore indicate that the expense for

getting new customers is about six to ten times the cost for keeping existing ones.

Reichheld and Sasser's research point out that if a company can reduce 5% lose of

existing customers then a 25-85% gain in profit is possible. In modern business

environment, maintaining, enhancing, and developing customer loyalty is critical to

corporate prosperity. Another factor strongly related to services brand success is the

quality of brand and nature of customer service. (L. de Chernatony and S.L. Drury, 2005)

essentially a brand is a cluster of functional and emotional values which enables an

organization to make a promise about a unique and welcomed experience. The

importance of high quality customer service is well grounded in the literature. Gronroos

(2000) conceives a model of the levels on which a service can be offered. At the basic

level, a core service exists which is accompanied by facilitating services and providing

quality brand to customers (which make it possible for customers to use the core service)

and supporting services (which can be used to increase the value of the core service).

One aspect of quality service, treating customers with respect and not patronizing them,

is noted as particularly important. This is in line with the work of Bitran and Hoech

(1990), who found that high quality service brand involves focusing upon frontline

employees by training and motivating them to treat customers respectfully, in order to

increase their brand loyalty. Respondents from the more successful brands referred to this

both implicitly and directly, One of the choices organizations face is whether to adopt a

‘loose’ or ‘tight’ style of brand management (Authors 3, 2001). Tight branding is the


dominant model evident in the management of brands providing quality of service and

increasing brand loyalty. However, the importance recognized by managers of the more

successful brands of maintaining the quality is more in keeping with the idea of loosing

brand loyalty. There is a realization that senior management must reduce their dominant

control over the brand, so staff can be allowed, or even encouraged, to personalize the

experience for consumers. It will create a stronger relationship with consumers and a

greater brand loyalty.

2.8 COMPETITION OF THE PRODUCT

A central characteristic of competition is that firms are mutually dependent; the outcome

of a marketing action by one firm depends to some extent on the reaction of its

competitors. Given the number of firms in an industry, competition, or more

appropriately, competitive response, can take on many forms. One way of examining

competition is to distinguish between how firms compete between and across strategic

groups in an industry (Porter 1985).

There is limited empirical evidence regarding the type of competitive interaction that

actually occurs between firms in the marketplace. Empirical research assessing

competitive interaction, which did not even begin until the late 1970’s and early 1980’s

(e.g., Gollop and Roberts 1979, Bresnahan 1981; see Bresnahan 1989), suggests that

there is significant variation in the competitive interaction observed across categories and

marketing mix instruments (Slade 1995).

Since the outcome of a firm’s action depends at least partly upon the behavior of its

rivals, it is important for firms to understand the nature of the game being played.

Although competitive response can be understood along several different dimensions


(e.g., Ramaswamy, Gatignon, and Reibstein 1994; Bowman and Gatignon 1996), an

important first step in this direction requires an understanding about the type of

interaction that actually occurs.

Previous research has attempted to classify or categorize competitive interaction. For

example, Raju and Roy (1997) define three forms of competitive interaction: independent

(Nash), leader-follower (Stackelberg) and collusive. Under independent behavior, each

player takes its rival’s strategic actions as given and acts to maximize its own profits.

Under leader-follower behavior, one firm acts as the leader (i.e., it does not react to its

rival’s actions), while its rival follows changes in the leader’s strategic behavior. Under

collusive behavior, firms act to maximize joint profits. In practice, it may often be the

case that firms compete vigorously on price, but accommodate changes in the feature

advertising of their rivals (Leeflang and Wittink 1992).

A strong consumer franchise gives manufacturers leverage with retailers (Aaker 1991).

And, loyalty reduces the sensitivity of consumers to marketplace offerings, which gives

the firm time to respond to competitive moves (Aaker 1991)1.

2.9 EXTERNAL CAUSES

Sometimes researchers feel problem in getting the reasons of sale declining because of

the environment influences in market or segment. A common business webpage has

shown following points that are present in environment but are not visible. Researchers

have to do extra work on external environment to detect them. Following points stop

sales to increase or cause sales declining:


Exports are decreasing. Imports are increasing. The surplus in the trade and

service account is decreasing.

Exports to U.S. and to EU countries have both weakened due to the influence of U.S.

economies slowdown and the euro depreciation is the past, respectively. Further,

reflecting the economies slowdown is U.S. and in Asian countries, exports to Asian

countries, mainly electric machinery, have declined, and exports as a whole are

decreasing. In the future, the continuing slowdown of the U.S. economy is expected to

work as a factor to curb exports from Japan.

Imports of Chinese-made textile products are increasing, but as imports of machinery and

equipment represented by IT related goods are deceasing, imports as a whole are

increasing moderately. Imports from EU countries show an up-trend due to the euro

depreciation in the past, but imports from Asian countries are increasing at a moderate

pace due to the decrease in imported machinery and equipment. Imports from the U.S.

have weakened slightly.

As for the balance of international payments, surplus registered in the trade and service

account is decreasing due to a decline in the export volume and a risen the import

volume, although in terms of price, the surplus expansion effect is at work de to the

declining crude oil prices.

Business investment has increased in both manufacturing and non-manufacturing

industries and the robust trend is expected to continue for the present, but there

have been signs of slowdown as far as prospects are concerned.

Business investment has remained on upward trend since it started to rebound at he end

of 1999, thus becoming a factor to prop up the economy. So far, the advance has been led


primarily by manufacturing industries such as electric machinery, but the rising trend has

been seen expanded to other industries as well. According to Quarterly Survey Of

Corporate Enterprises, during the October-December quarter business investment rose in

manufacturing industries and started to rise from the preceding year in non-

manufacturing industries as well.

Also judging from the bank of Japan’s Tankan survey, the business investment plan for

fiscal year 2000 shows the highest growth rate in recent years for both large firms and

small and medium-sized firms in manufacturing industries, and even compared to the

preceding survey, a significant upward revision (a year on year increase of 16.4% and

11.3% respectively for large firms and small and medium-sized firms) has been made.

The outlook for business investment is expected to continue to be robust for the present,

as machinery orders, a leading indicator, have continued to upturn in the second half of\

last year. However, there have already been signs of weakness for the future, such as the

predicted decline in machinery orders in the January-March quarter.

Corporate profiles are continuing to recover markedly. Improvement in business

confidence shows signs of a standstill.

Corporate profits have improves since 1999 and significantly rebounded particularly

since the second half of 2000 (according to Quarterly Survey Of Corporate Enterprises,

recurrent profit rose 31.9% in the October-December quarter as compared t the same

quarter a year earlier). The efforts of restructuring made by firms are raised as the reason

for the recent improvement, but factors such as the increasing sales volume in

manufacturing industries and the reduction of variable cost in non-manufacturing

industries since the beginning of 2000, too, have made great contribution to this.


Improvement In business confidence shows signs of a standstill judging from business

sentiment in the Quarterly Survey Of Corporate Enterprises (“rising” versus “falling”),

with confidence deteriorating in both manufacturing and non-manufacturing industries

and more firms in the whole corporate sector believing that business is unfavorable than

those believing the opposite.

The number of business failures has remained somewhat high.

The number of business failure has remained somewhat high, such as business failures pr

month stood at 25000 (20% increase) approximately cases according to a survey

conducted by Tokyo Commerce and Industry Research Ltd in Asia.

Domestic wholesale prices and consumer prices are both declining slightly.

Domestic prices are slightly declining from the beginning of 2005 due to the declining

prices of electric machinery and transport equipment. Domestic wholesale prices stayed

almost unchanged from the preceding February but are actually continuing to decline

from the preceding month, if the factor of temporary price increase due to the low

temperature is excluded from edible agricultural, livestock and aquatic products such as

eggs. Export prices declined as a result of the yen appreciation along with a decline on

the contractual currency basis. Import prices declined as a result of yen appreciation

along with a decline on the contractual currency basis. Further, the corporate service

price index has continued to decline from the month a year earlier. Consumer prices have

been declining slightly since the fall of 2004 due to the decline in the prices of textile

products and food service (the composite index excluding perishables in January down

0.5% from the same month a previous-year). Further, consumer prices in the 23 wards of

Tokyo in January fell by expanded magnitude from the same month a year earlier (the


composite index excluding perishables in February down 0.5% from the same month a

year earlier).


3. THEORETICAL FRAME WORK:

3.1 Basic Framework

A theoretical framework is conceptual model of how one theorizes or makes sense of

relationship among several factors that have been identified important for the problem.

This study will resolve around the following dependent, independent and moderating

variables. Before going into the practical demonstration of variables through flow chart,

first we have to list and define the purpose of the each variable that will be used in the

research.

List Labels

Price Independent

Quality Independent

Availability Independent

Reliability Independent

Competition Independent

Advertisement Moderating

Declining Customers Ratio Dependent

The dependent variable “Declining Customers Ratio” is the variable of primary interest

and to which the independent variables and moderating variable may cause to influence.

The basic purpose because of which the above variables are taken is all of them have a

strong influence in making a product successful in market like, if price is acceptable by

market then everyone does not feel awkward to buy the product and the same is true for

quality. Talking about availability of product, if product is physically not available or

cannot easily accessible then how it is going to be purchased. Lack o advertisement does


not introduce company to remote areas. That’s why people would join other companies

unknowingly. Finally less provision of reliability of local companies also increases the

dissatisfaction of customers and ultimately leads to the low customer ratio.

3.2 PRACTICAL INTERACTION OF VARIABLES


Advertisement

Moderating Variable

Price

Quality

Availability

Reliability

Customer Ratio

Independent Variables

Dependent Variable

Competition

4. HYPOTHESIS DEVELOPMENT:

H0: There is no relationship between Price and Customer Ratio

H1: There is relationship between Price and Customer Ratio

H0: There is no relationship between Quality and Customer Ratio

H1: There is relationship between Quality and Customer Ratio

H0: There is no relationship between Availability and Customer Ratio

H1: There is relationship between Availability and Customer Ratio

H0: There is no relationship between Competition and Customer Ratio

H1: There is relationship between Competition and Customer Ratio

H0: There is no relationship between Reliability and Customer Ratio

H1: There is relationship between Reliability and Customer Ratio


5. RESEARCH METHODOLOGYThis section presents the basic methodology and requirements in research. It includes the

method of research, respondents and their description, source of data, the sets of research

instruments that were used, treatment of data, and the statistical tools, which were used in

this study. The data has gathered from the sample of population. Random sampling

method will be used to make the sample true representative of the population.

5.1 Type of Study

The type of the study is descriptive and based upon secondary data. This study is based

upon the existing sources. The descriptive process of research was believed to be more

suited in this kind of investigation. The goal of the study is to describe relevant aspects of

the variables of interest to the researcher from an individual’s perspective. Descriptive

study that presents the data in a meaningful form thus help to understand the

characteristics of the situation, to think systematically about aspects in a given situation

particularly of variables and problem and to offer ideas for further probing to make

certain simple decisions.

5.2 Research Instruments

Two types of questionnaires and unstructured interviews from shop owner and their

workers are used as a research instrument for the study to gather and analyze the opinion

of the respondents. It also included formal/ written information from websites and the

forms as well as assistance from our professor and any concerned persons. Both field and

desk research has been conducted to compile this study. Sources of desk research include:

Newspapers

The Internet


5.3 Respondents of the Study

Area where the study was conducted is Rawalpindi the adjacent city to the capital of

Pakistan. The citizens of this city have every characteristic of being chosen as

respondents therefore the respondents of the study are the earning individuals of

Rawalpindi. The names of respondents who have participated while giving information

and their views regarding topic are mentioned in the appendix. The list only provides the

names of business individuals.

5.4 Sampling Procedure

Despite the errors associated with sampling, samples had to be created from a colossal

population of respondents. The samples were taken from the population on the basis of

simple random sampling. Needless to say, even if the intent of this study were to examine

every element of the population- time, cost and human resource constraints had made it

very hard to collect data, or examine every element. With respect to unstructured

interviews, the respondents of this study are the different earning individuals of

Rawalpindi city. So the sample is taken from the population “the earning individuals of

the mentioned city”. As also, the study revolves around the earning individuals so the

sample of total 100 respondents are considered good enough and further segmented into

two categories. The breakup of 100 respondents is 80 respondents are salaried persons

and the remaining 20 are the business owned persons. To analyze and get the results the

information collected simple random sampling method is to be used. In simple random

sampling 50 respondents have been selected out of 80 to conclude the results.


5.5 Summery Of Interviews

During the visit of fans business owners’ shop, at the busy and business of Rawalpindi

like Raja Bazaar and Pendora and Murree road, for getting information through

questionnaires, there were 9 interviews conducted, 6 from different persons who are

working in those shops and 3 from owners themselves.

The owners told me about the brands they are selling and what incentives they are

providing to customers like installment facility to the customers. Most of the shop owners

are doing business from the last 15 to 20 years and they are successful. They informed

about the most selling brands of the fan industry like Pak fans and Yunas fans. In this

process of interviews the owners and workers told about the sales of fans, they said that

fans still has a good sales but the interval between two buying is now has increased. They

also agreed on the opinion of split AC’s attack on the sale of fans. They said that now

customers who have a lot of money preferred split units. My reaction to this sentence was

not good so I cross questioned that fan is one of the basic requirement of the room it

cannot be ignored then they replied that previously when there was no split units

customers were purchasing two sometimes three fans per room and now the situation is

changed and the number is reduced to one fan per room and I agree on the answer. When

the owners were asked to provide their opinion about how to increase the sales of fans?

They said in return that its not like that fans’ sales have been low, instead of it, now there

are many brands and producer are coming in market and the sales have shifted to many

other brands like Prime fans for Gujranwala is entering in market. In marketing

perspective competition is increasing in fans industry that is particularly good for

Pakistan’s domestic market.


At the end, the most important thing that has been observed during field survey and

interviews that most of shop owners, regardless of their business, has installed split units

in their shops. And when they asked about it regarding the research they said in return

that yes it would cause the sales of fans. They said that now persons who have good

money in their hand and want to open any kind of shop or business, they install split units

in their shops. Some of them also said that it also depends on the weather, the shop

owners who have good profit they install split units because they want to get rid of

summer’s hotness as Pakistan is a very gifted country and it has very cool winter and also

very very hot summer. Finally, it seems necessary and purposely to mention the extra

opinion of one of the owner who said deliberately that he is very happy and proud that

now students are coming and concerning about the domestic market of Pakistan rather

than international or other sector which are currently at the top like banking and telecom.

He also said that the real gold is the domestic market of Pakistan about which people are

not aware of and they should be told about the richness of the Pakistani domestic

producers and their abilities.


6. CONCLUSION & RECOMMENDATION

Conclusion

The study of customer ratio of fan industry in the area Rawalpindi concludes that the

main purpose of this study was to disover the reasons behind the low sales of fans and

also clears the dilemma of split units causing the low sales of fans. Through this research

it is concluded that there are two major independent variables which have affect the sales

of fans negatively. Those variables are “prices” of fans and above all the “competition”

between fan manufacturers. And other main cause that has been acquired during the

interviews is the introduction of “split units” which has also decreases the sales of fans..

The moderating variable in this research was “advertising”. The survey shows that

advertisement does have a major affect on sales of fans or any product. Shop owners’

dealers and believed that advertisement creates more demand and awareness about the

fan and it should be increased. The reasons of the negative influence of independent

variables- price and competition- and effect of splits units are:

Prices of fans are not high but most of the users are belong to the middle class and

the market of Pakistan has low literacy rate which result the price to effect the

sales of fans.

Pakistan domestic market is very rich with manufacturers, so fan industry is full

of fan manufacturers that cause the high competition in Pakistan. Thus,

competition variable causes the low sales of fans as there are many producers are

coming in market with quality products and also substitute products.

The influence of split units is also negative on sales of fans because the customers

who have high income goes for the split units due to it cooling benefit. The split

units also cause the low sales of fans in a way that now the number of shop


owners who have installed split units in their shops instead of fans has been

increased day by day that also hit the sales of fans.

The dilemma of split units is exists because lot of fan manufactures thinks that

split unit is the main reason of the low sales so they also start producing of split

units.

There are some independent variables which do not affect the sales of fans. Those

independent variables are “quality”, “availability” and “reliability”. Quality of fans has

been good and the customers do not have any question or reason for not purchasing fans

because of quality. As Rawalpindi is diverse and very busy market thus availability also

does not cause the sales declining. Reliability variable has also not involved in the

causing the sales decline because fans producers are more concerned about quality and

reliability of the product.


Recommendations

Although there are many factors that are taken part to make loyal customers but after

conducting research I have found that in Pakistan due to poverty people cannot afford too

much prices of goods due to less earnings. So there should be low price while

maintaining the quality of product. Competition has been increased over the past few

years in many industries of Pakistan. Through this research I have found that fan industry

is also having many manufacturers. So the producers must observe their competitor and

their strategy of promotion in order of compete with them. New technologies are coming

daily. In this research I have found that the local manufacturers are not very keen to use

new technologies because of their financial problem and profits. It is very important to

use new technology to make customers loyal towards the company. Government can play

its role in making this possible. This research reveals that promotion of fan

manufacturing is not up to the mark. The manufactures advertise only in TV whereas

Pakistan’s most market lives in rural areas. This research recommends the following

promotional techniques:

Be newsworthy:The manufacturers should use all available TV media to provide awareness about their

product and company.

Create a compelling client/customer e-newsletter:

This should be entertaining and informative; it must offer them something useful in their

job or their life. Downplay the advertising element; this is definitely a soft-sell tool. Only

send it to clients and serious prospects, not cold prospects. Finally, keep it short and keep

the frequency reasonable; if you send them 1,000-word messages or contact them daily,

they will stop opening e-mails from you altogether.


Keep sale prices on the up and up:

A common advertising phrase for sales is "up to XX% off," and the higher the number,

the bigger the attraction for customers -- but keep that number at a reasonable level.

Say "free" like you mean it:

Customers love to see and hear the word "free" in advertisements and sale notices. Your

job as a businessperson is to stick to the meaning of the word. The two most important

points: (1) If you have a "buy 1, get 1 free" sale, you can't raise the price of a good to

cover the cost of the free item, and (2) if there's a condition on receiving a free item, such

as buying three widgets, you need to state that condition clearly in all advertising.

Use promotional products:

Print ads get tossed in the recycling bin daily, and television and radio ads can fall victim

to TiVo or satellite radio. But if your customers have a reminder, say a flash memory

stick, with your logo and Web site on it, you'll stay top-of-mind.

If the competitor you've been comparing yourself to changes its prices, you need to either

find a new, high-priced competitor so that your claims remain true or change your

advertising.

Be aware that if you use comparative pricing for only a few of your products,

customers might assume that the non-labeled products cost the same or possibly

even more than a competitor's goods.

Look at your advertising through an objective eye. If it sounds unbelievable, then

find the proof to back up your claims or change the ads.


Tables and Graphs

According to 100% customers fan is the basic necessity

Most of the customers like Pakistani fans.


The survey shows that most of the customers pay attention towards price and quality of the fans before making a purchase.

Almost 100% of customers do not complain about the electricity consumptions of fans.


Purchase decision is highly depends upon the income of the customer. The higher the income of the customer the more expensive product he will buy.

Most of the customers of fans agree with that sales of fans have been declined because of coolers and split units.


The survey reveals that scope of fans is still there in small cities and villages.

Customers are of the view that fans are unable to cope with summer. So that’s why they have switched to alternative products like coolers and split units.


Advertisement of fans is mostly seen on television.

Advertising of fans should be increased, as customers want more improvement in it.


According to the survey customers feel that advertising of fans should be on all available medias.


REFERENCES

Market leadership strategy for service companies (creating growth, profits and

customer ratio) Craig Terrill and Arthur Middle Brooks PB (NTC) American

Marketing Association, 1990-1999-2002

Consumer Behavior, J.Paul Peter and Jerry C. Olson, McGraw Hill/Irwin

publishing, copyright©1999

Nancy Giddens and Amanda Hofmann, Written August, 2002

http://www.extension.iastate.edu/agdm/wholefarm/html/c5-54.html Customer

Respect Marketing, the Campbell Ewald,

http://www.crm.com/brand/loyaltymodels/html/m1m2.html

Joseph Plummer, McCann-Erickson (Article World Advertising Research

Center) Published May, 2005

Nada Nasr-Bechwati (2001), “The Allocation of Promotion Budget to

Maximize Customer Equity,” The International Journal of Management

Science, 29, 49-61.

Katherine N. Lemon (1999), “A Dynamic Model of Customers’ Usage of

Services: Usage as an Antecedent and Consequence of Satisfaction,” Journal of

Marketing Research, 36(May), 171-186.

DoubleClick.net (2003), 2003 Multi-channel Holiday Shopping Study,

Doubleclick.net.

Hof, Robert D. (2003), “Amazon.com,” BusinessWeek, November 24, 2003,

104.

Philips Kotler “Marketing Management” International Edition Chapter 6 and 16


http://www.extension.iastate.edu/agdm/wholefarm/html/c5-54.html

Kevin lane keller “brand management” International Second Edition Chapter 12

Michel Wedel, Fernando de Rosa, and Jose A. Mazzon, (2003), “Cross-Selling

Through Database Marketing: A Mixed Data Factor Analyzer for Data Source:

Federal Bureau of Statistics.

Disclosure,” Journal of Marketing Research, 38 (May), 157-159.

Young, Sam J., (2001), “Make the Most of Every Channel,” Catalog Age, 18

(March), 58-59.

www.bizreport.com/2007/04/are_online_travel_sales_declining.html

www.marketintelligencecenter.com/articles/335434

www.brandsynario.com

www.fdi.com.pk

www.pakboi.com.pk\investments

www.royalfans.com

www.gfcfans.com

www.wahid-industries.com

www.millatfans.com

www.bizreport.com

www.businesweek.com

www.marketintelligencecenter.com

www.alibaba.com\pakistan\manufacturing-concerns

http://www.alibaba.com/trade/search?CatId=618&OfferType=SALE

%2CAGENT


http://www.wahid-industries.com/

%2CMISC&IndexArea=company_en&Country=PK&CompanyType=&Search

Text=Fan

APPENDICES

Questionnaire I (for customers)

Q:1 Fan is a basic necessity.(Please tick one) Yes No

Q:2 You like: Pakistani fans International fans

Q:3 You afford to buy:(Please tick one or more) Fan Room cooler Split AC All

Q:4 What is the level of importance for you towards following attributes of fans?

Brand Price

Quality Reliability

Extremely important

1111

Very important

2222

Somewhat important

3333

Not very important

4444

Not at all important

5555

Q:5 Electric consumptions of following substitute products are:

Fans Split ACCoolers

Excellent111

Very good222

Good333

Fair444

Poor555

Q:6 What will you buy from following substitute products if your income is:

Less than 1000010000-1500015000-2000020000-30000Above 30000

Split AC

Fan

Room cooler

Fan & Split AC

Fan & Room cooler


Q:7 Sales of fans have been declined because of:

Split AC Coolers Electricity Prices Quality

Strongly disagree

11111

Disagree

22222

Neither agree not disagree

33333

Agree

44444

Strongly agree

55555

Q:8 Scope of fans is still there in small cities/villages.

Strongly disagree

1

Disagree

2


3

Agree

4

Strongly agree

5

Q:9 AC/room coolers are given preference over fans due to: Fans are unable to cope with summer The prices of AC/room coolers are affordable

Q:10 Where you have seen the advertisement of fans?(Please tick one or more) TV Radio Newspaper Billboards Never seen Others_ _ _ _ _

(Please specify)Q:11 Advertising of fans:

Good enough Need improvements Should be increased Both second and third

Your cooperation is appreciated


Questionnaire II (for shop owners)

Q:1 You sell: (Please tick one) Pakistani fans International fans Both

Q:2 Customers purchase fans by considering?

Brand Price

Quality Reliability

Extremely important

1111

Very important

2222

Somewhat important

3333

Not very important

4444

Not at all important

5555

Q:3 Do customers bargain? Yes No

Q:4 How often do you receive bulky orders of fans? Frequently Occasionally

Q:5 Do you receive questions about electricity consumptions of fans? Yes No

Q:6 Sales of fans have been declined because of:

Split AC Coolers Electricity Prices Quality

Strongly disagree

11111

Disagree

22222


33333

Agree

44444

Strongly agree

55555

Q:7 Scope of fans is still there in small cities/villages.Strongly disagree

1

Disagree

2


3

Agree

4

Strongly agree

5Q:8 Electric consumptions of following substitute products are:

Fans Split ACCoolers

Excellent111

Very good222

Good333

Fair444

Poor555


Q:9 Following factors will increase sales of fans:

PriceQualityAdvertisementReliability

Strongly disagree

1111

Disagree

2222


3333

Agree

4444

Strongly agree

5555

Q:10 AC/room coolers are given preference over fans due to: Fans are unable to cope with summer The prices of AC/room coolers are affordable

Q:11 Where you have seen the advertisement of fans?(Please tick one or more) TV Radio Newspaper Billboards Never seen Others_ _ _ _ _

(Please specify)Q:12 Advertising of fans:

Good enough Need improvements Should be increased Both second and third

Q:13 Advertising of fans should be on: TV Radio Newspaper All of them

Your cooperation is appreciated


Research Report - Sales Fluctuaions in Fan Industry

Documents

contractual currency basis

die casting machines

main constraints hindering

hm esmail

theoretical frame work

install split units

consumers loyalty status

room air coolers