Report On Future Prospects of Walton
Report On Future Prospects of Walton
com
Letter of Transmittal
Sincerely,
.
School of Business
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Executive Summary
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Table of Contents
Particulars
Page No.
Executive Summary
1.Introduction
01
1.1.Origin
of
Report
01
1.2.Objective
01
1.3.Methodology
01
1.4.Limitations
02
2.Company
03
and
Market
2.1.Electronics
Background
market
in
Bangladesh
03
2.2.Walton
HIL
04
2.3.Competitor
Analysis
05
2.4.Market
06
3.Strategic
07
Situational
Share
Analysis
3.1.Market
Analysis
07
3.2.Market
Segmentation
07
3.2.1.Demographic
08
3.2.2.Geographic
08
3.2.3.Psychographic
09
3.3.PEST
Analysis
3.4.SWOT
analysis
10
11
4.Marketing
Strategy
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12
4.1.Market
positioning
12
4.2.Marketing
Mix
12
4.2.1.Product
12
4.2.2.Price
14-15
4.2.3.Place
15
4.2.4.Promotion
15
5.Financial
16
6.Future
16
Analysis
Growth
and
Challenges
6.1.Current
Market
Status
16
6.2.Challenges
17
6.3.Future
Growth
17- 18
7.Recommendation
18
8.Conclusion
18
9.Appendix
19-20
10.References
21
List of Tables
Particulars
Page No.
Table
04
Table
14
Table
14
Table
14
01:
Import
02:
03:
04:
of
Price
Price
Price
home
appliances
comparison
in
of
comparison
comparison
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Bangladesh
Refrigerator
of
of
TV
Motorcycle
Table
16
Table
16
Table
18
05:
Financial
analysis
06:
07:
of
Market
Future
growth
Walton
comparison
of
Walton
HIL
List of Figures
Particulars
Page No.
Figure
05
Figure
09
Figure
09
01:
Waltons
02:
03:
Walton
Walton
competitors
plazas
plazas
Analysis
in
in
Dhaka
Chittagong
1. Introduction
1.1. Origin of Report
This report was assigned by Professor ., Department of
Marketing, of MBA 07th batch, School of Business, University.
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1.2. Objectives:
Learning a didactic approach to Business Communication.
Incorporating
theoretical
education
with
practical
experience.
Gaining knowledge about the current market trend of the
country.
Getting acquainted with different policies, rules and
regulations of the government on the products concerned.
1.3 .Methodology:
Surveys
For surveys, we made a questionnaire for the buyers. The
questionnaire for the buyers included questions about their
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2004200520062007200805
06
07
08
09
Home 150241 204951 243665 236150 190548
dedicated team of skilled engineers and technical personnel from home and
abroad who ensure quality products for the customer. Because of this highly
skilled team Walton can offer the customers a wide range of products
Television
Refrigerator
Air-Condition
LG
LG
LG
Sony
Samsung
General
Singer
Sharp
Gree
Samsung
Panasonic
Samsung
Panasonic
Whirlpools
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Economic Factor:
Increase in per capita income
Growing GDP high disposable income
Increase in Spending Power
A huge prospect of a profitable export sector
Socio-cultural Factor:
Manufacturing Eco-Friendly product
Changing lifestyle of middle income people
Technological Factor:
Improvement in Technology made electronics cheaper
Increased quality of production
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4. Marketing Strategy:
4.1. Positioning Strategy
Walton has created huge enthusiasm among the consumers of its
target market with its slogan Aamader Ponnyo. They accepted
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Refrigerator
Walton mainly produces home appliances. In fact in its website
the company is introduced as the pioneer in refrigerator
production in Bangladesh. Walton Refrigerator & Freezer ensures
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Walton Product
4.2.2. Price
Waltons main target market has always been middle-income
group. SO they have been very careful in setting their price of
product. Also the fact that they manufacture their products, it
allows them to set a lower price than their competitors, as they
dont have to pay heavy import duty. Below is a comparison of the
prices of different products of different brandsTable 02: Price comparison of Refrigerators
Model
10 CFT
10.5 CFT
11.5 CFT
Walton
26,200
28,100
29,700
LG
35,000
38,300
,40,600
Transtee
32,000
32,500
,36,000
Sharp
29,500
31,000
3700,0
LG
28,350
Sony
26,350
My One
22,700
65,600
59,500
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TV
42
TV
LCD 75,200
95,000
88,000
Walton
Bajaj
125 CC
110 CC
Cruiser
103,900
96,000
93,300
175,000
148,500
120,000
Hero
Honda
155,000
145,000
110,500
TVS
160,000
140,500
98,000
5. Financial Analysis
Summary of the Financial Report of Walton for the year 2010:
Table 05: Financial analysis of Walton HIL
Particulars
Total Sales
Cost of Goods Manufactured
Gross Profit
Operating Profit
Net Profit
Amount TK.
2,553,024,782.10
2,414,093,716.05
305,852,566.6
99,636,450.2
26,530,733.5
Walton
LG
Sony
Price
Quality
Variety
Distribu
tion
****
***
*
**
****
***
*
****
***
***
****
*
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Scoop
For
Growth
****
**
*
Singer
Samsung
***
**
**
***
**
**
**
*
**
*
We can see from the above table that clearly overall LG leads and
have a significant lead when it comes to these values. They have
been in the market for 20 years and have done remarkably to
capture nearly one-fourth of the total home appliance market. But
coming second right now is Walton. By providing the same quality
in much lower price, Walton has created an excellent brand
following. They have a very good distribution system, without lets
all over the country. But their main problem has been variety.
They are still way of the benchmark at the moment when it comes
to product variety. But Walton will put more emphasis in this
sector and plan to catch the lights of LG and Sony in the next 5
years.
6.2. Challenges:
Establish Walton as the No.1 Home Appliance Brand of the
Country
Capturing the market share of existing foreign brands
Bringing more variety in their product line
Continue increasing market share at the same rate over the
next 5years.
6.3. Future Growth:
Walton has decided to penetrate market, develop both market
and product to achieve profitable growth in future.
Market penetration
Through extensive promotion campaign Walton has set goals to
make more sales in future. Countrywide distribution system helps
it achieve its goals.
Market Development
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Present
Expected
Main
Market Share Market Share Competitor
5%
25%
Bajaj,
Hro
Honda
8%
30%
LG, Sony
13%
25%
LG, Samsung
2%
10%
LG,
Genersl,
Gree
7. Recommendations
To establish Walton as the brand for home appliances & other
electronic accessories, some changes are needed in its strategiesSwitch to Market Penetration Pricing without compromising
quality.
Partner with local and international OEM (original equipment
manufacturers)for elegant & sophisticated designs &
equipment.
Develop gaming consoles like Game boy, PlayStations, X-box
and medical appliances for caring old people through
innovative approaches.
Customer Loyalty Program.
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8. Conclusion
The company has been running its business with good reputation
since 1977.Establishment of Walton HIL to manufacture
Refrigerator & Freezer, Air Conditioner, and Motorcycle etc. In
Bangladesh is a milestone in the path of success and reputation
of the brand WALTON. Walton HIL is the first company to introduce
advanced research and manufacturing technologies and
equipment for household & commercial Refrigerator & Freezer,
Motorcycle and Air Conditioner etc. in Bangladesh. For
Bangladesh, Walton has become a company to be proud of in the
export arena. Walton has truly redefined Bangladesh from being a
consumer country to a producer country for home appliances.
9. Appendix
Financial Figures of the year 2010
Survey:
1. In what age group do you belong to?
15-18
19-21
22-25
26-30
30 and above
2. Currently which brand/brands of home appliances are there at
your house?
LG
Walton
Singer
Sharp
Sony
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Panasonic
My One
Marcel
Other (please specify
3. What do you value most when selecting a brand from which to
buy electronic items?
Brand Value
Convenience
After-sales Service
Price
Quality
Manufacturing Country
Other (please specify)
4. What is your assumption about Walton Products?
Made in Bangladesh
Very competitive price
Quality less than other foreign brands
Lots of TVC
5. Walton is the only company to mass-produce electronic items in
Bangladesh, Will it make you buy Walton products instead of other
imported ones?
Yes
No
6. Is there a Walton Showroom near your place?
Yes
No
7. Walton plans to produce first ever car in Bangladesh within 7-8
years. What are your thoughts?
Can't wait
Walton car! Are you Serious?
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10. References
www.walton.com.bd
Arif Ahmed
Marketing Officer
LG-Butterfly
Annual reports for Walton Bangladesh for the year 2010.
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