marketing trends in pakistan
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Marketing Trends in PakistanDiffernts trends of market are shownTRANSCRIPT
Marketing Trends in Pakistan
Lecture 2: Marketing Tools and Implementation
Majid Aleem Date: 29/09/2011
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Political Outlook Core Scenario Pakistan has been ruled by dictators for half its
history Political tug-of-war between civilians and
soldiers still continues. The chief threat comes from outside parliament
militants opposed to Pakistan pivotal role in the US-led war against terror.
Efforts to combat militancy are being frustrated
close ties between some militant groups and the state Inter Services Intelligence unit (As per international Community).
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SWOT Analysis – Political Outlook Strengths
Condemned for testing a nuclear bomb in May 1998, Pakistan has since won Western acclaim for its leading role in the US-led war on terror. Washington has lifted sanctions and, in June 2004, President George W. Bush named Pakistan a ‘major non-NATO ally’.
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SWOT Analysis – Political Outlook Weaknesses
Civilian institutions are weak in Pakistan. Parliament, comprising the National Assembly and the Senate, has had its powers vastly reduced during President Pervez Musharraf era which still continues as it is
Poor relations with India and other neighbours. The two nuclear-armed neighbours have gone to war three times since they were ‘partitioned’ after independence from colonial master Britain in 1947.
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SWOT Analysis – Political Outlook Opportunities
Pakistan could build stronger civilian institutions through meaningful democratic reform. However, we believe these are unlikely for the time being.
Ongoing peace talks with India provide Pakistani leaders with an opportunity to ease tension in the world’s most dangerous nuclear flashpoint.
SWOT Analysis – Political Outlook Threats
Escalating violence by militants opposed to Pakistan's leading role in the US-led war on terror poses a key risk to stability.
Attacks on president and prime minister- a concern for international business community
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Economic Outlook
Core Scenario Economy has strengthened considerably
due, firstly, to wide-ranging reforms aimed at reining in the government’s budget deficit
Assistance from foreign governments eager to reward Islamabad joining the US-led coalition against terror
Huge losses due to natural disasters Rising Inflation
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SWOT Analysis - Economic Outlook Strengths
A gradual tightening of monetary policy by the State Bank of Pakistan should moderate high inflationary pressures.
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SWOT Analysis - Economic Outlook Weaknesses
As a result of the massive earthquake hitting Pakistan in October 2005, Floods in 2010 and 2011 economy suffering from very slow growth
Subsidies to loss making, state-run enterprises continue to stretch public finances
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SWOT Analysis - Economic Outlook Opportunities
The lapsing in January 2005 of the WTO’s Multifibre Agreement, which regulates the global textile trade, will provide Pakistan with an opportunity to boost exports.
The local textile industry is competitive enough to prosper in a free-trade environment.
BUT WILL IT BE POSSIBLE?
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SWOT Analysis - Economic Outlook Threats
Pakistan’s military-backed/dependent government lacks legitimacy and may abandon economic reforms for fear of alienating public opinion.
Persistently high global oil prices pose a threat to Pakistan’s balance of payments. Pakistan imports more than 50mn barrels of oil a year to satisfy local demand for fuel products and record-high prices have led to widening of the trade deficit.
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Business Environment
One of South Asia’s most liberal foreign investment regimes.
Pro-market reforms during the 1990s opened most sectors of the economy to foreign participation.
One hundred percent foreign ownership is permitted in the manufacturing sector, though ownership restrictions remain in place in agriculture and services.
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Business Environment
Foreign firms are allowed to repatriate capital, profits and dividends.
Security risks are the chief concern for investor with foreign-owned businesses targeted by anti-Western militants in recent attacks.
Businesses must also contend with poor infrastructure, bureaucratic bottlenecks and widespread corruption. Ongoing reforms will help here.
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SWOT Analysis – Business Environment Strengths
Pakistan has one of the most liberal foreign investment regimes in South Asia. One hundred percent foreign equity is permitted in the manufacturing and infrastructure sectors.
Ongoing reform of Pakistan’s trade regime is reducing tariff barriers. Duty on capital goods, plant and machinery not manufactured locally was cut to just 5% from an earlier range of 5-25%.
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SWOT Analysis – Business Environment Weaknesses
Failing infrastructure, bureaucratic delays and widespread corruption are key concerns for investors looking to do business in Pakistan.
Intellectual property rights are poorly enforced. Pakistan, a leading producer of counterfeit goods, was one of 36 countries named on the Office of the US Trade Representative’s Priority Watch List.
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SWOT Analysis – Business Environment
Opportunities
Pakistan is committed to selling off state-owned assets and a series of firms are expected to going under the hammer in the coming years.
Threats
Anti-western militants have targeted foreign-owned businesses in recent attacks. A suicide bomber killed eleven French engineers employed by the Naval Construction Directorate in May 2002 as they boarded a bus in Karachi.
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3-4 years of strong growth
Resilience against shock and extra ordinary jerks
Rise in per capita income for US $ 503 in 2002 to US $ 847 in 2006
Robust Consumer spending
Substantial increase in private sector credit
Balance between fiscal deficit and growth
Medium Term Development Framework
Maintenance of external and domestic debt within limits
Reach to Global Capital Markets
Geo political situation post 9/11
Stable exchange rate
Higher foreign direct investment
Reduction in poverty level
Pakistan Economy – SWOT Analysis
Credibility of statistics
Sharp increase in prices of food items
Incompatible contributions of various sectors of economy in tax revenue.
Inefficiency in utilisation of development expenditure
High administrative costs
Perception gap between economic manager and people at large
Quality of governance
Record trade deficit
Concentration of export in restricted items and markets
High cost of doing business
Lack of focus on agriculture sector
Political instability
Shortage of skilled workforce
Energy crisis
Poor HDI indicators
Capacity constraints in Indian IT sector
Recent investment in IT sector
BPO’s potential
Telecom and Media revolution
Geo political situation
Foreign Direct Investment
Investment in education and health
Political uncertainty
Issues in Balochistan and Northern Areas
Worsening of situation on Western borders
Anti Pakistan attitude in Afghanistan
Level of corruption
Broadening gap between Rich and Poor
Social unrest
PAKISTAN ECONOMY
Weaknesses
Strengths
ThreatsOpportunities
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Pakistan Economy – SWOT Analysis
Strengths
3-4 years of strong growth Resilience against shock and extra ordinary jerks Rise in per capita income for US $ 503 in 2002 to US $ 847 in 2006 Robust Consumer spending Substantial increase in private sector credit Balance between fiscal deficit and growth Medium Term Development Framework Maintenance of external and domestic debt within limits Reach to Global Capital Markets Geo political situation post 9/11 Stable exchange rate Higher foreign direct investment Reduction in poverty level
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Weaknesses
Credibility of statistics Sharp increase in prices of food items Incompatible contributions of various sectors of economy in tax
revenue. Inefficiency in utilization of development expenditure High administrative costs Perception gap between economic manager and people at large Quality of governance Record trade deficit Concentration of export in restricted items and markets High cost of doing business Lack of focus on agriculture sector Political instability Shortage of s killed workforce Energy crisis Poor HDI indicators
Pakistan Economy – SWOT Analysis
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Pakistan Economy – SWOT Analysis
Opportunities
Capacity constraints in Indian IT sector Recent investment in IT sector BPO’s potential Telecom and Media revolution Geo political situation Foreign Direct Investment Investment in education and health
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Pakistan Economy – SWOT Analysis
Threats
Political uncertainty Issues in Balochistan and Northern Areas Worsening of situation on Western
borders Anti Pakistan attitude in Afghanistan Level of corruption Broadening gap between Rich and Poor Social unrest
Hierarchy of goals and objectives
Organizational Goals and ObjectivesMarketing Goals and Objectives
Marketing Mix Goals and ObjectivesMarketing Mix Element Goals and Objectives
Marketing Strategy Elements
What business are you in?Mission statement
Statement of marketing strategy
Indicates product, market scope
Shows growth factor
Shows differential advantage
Shows management orientation
Marketing Strategy Elements
Marketing Strategy DevelopmentRecognize and evaluate an opportunity
Market size and potentialKey competitors
Choose target marketDevelop Objectives for each opportunityDevelop Marketing Mix Strategy for each
opportunityChoose Marketing mix elements
Marketing Strategy Elements
Opportunity EvaluationReview of Requirements for Market SizeReview of Relevant Competitive Set
Marketing Strategy Elements
Target Market SelectionIntroduction to Market SegmentationReview of the Strategic OptionsEquivalent Behaviors as the Critical Variable
Marketing Strategy Elements
Structure of Marketing Mix Strategies
Are all Mix elements equally important?Product as the keyExample using Product Life Cycle
Marketing Strategy Elements
Marketing Strategy Elements
Generic Marketing Strategies
Cost Leadership▪ Lower costs of production and distribution
Product Differentiation▪ Unique product or brand
Focus▪ Focus on customer needs in a few segments
Product StrategiesProduct Mix Strategies
Market penetration versus market skimming
QualityHigh
Medium
Low
Price
High Medium Low
PremiumGoods
Penetra-tion
SuperBargain
Over-Pricing
AverageQuality
Bargain
Hit andRun
ShoddyGoods
CheapGoods
Marketing Strategy Elements
Product StrategiesProduct Market Growth Strategies
Market Penetration(increase usage)
Product Development(new uses)
Market Development(new users)
Diversification(new users, new uses)
Markets
Products
Old
Old
New
New
Marketing Strategy Elements
Marketing Strategy Elements
Market Position Strategies
Market Follower Strategies Conscious Parallelism
▪ Similar products, prices▪ Avoid unprofitable segments
Market Niche▪ Specialize in a very small group of
customers▪ Concentrated segmentation
strategy……
Marketing Strategy Elements
Market Position StrategiesMarket Leader Strategies
Increase Size of Total Market▪ Product-Market Growth Strategies
Protect Market Share Fortification
▪ Assortment of brands, sizes▪ Innovation
▪ Best defense is a good offense▪ Counteroffensive
Increase Market Share▪ BCG▪ Antitrust constraints
Marketing Strategy Elements
Market Position StrategiesMarket Challenger Strategies
Frontal Attack▪ Out-innovate leader▪ Tough to do, easier to defend
Flanking/Bypass Attack▪ Attack where leader is not looking▪ Find a new market segment
Marketing Strategy Elements
Market Challenger Strategies Price Discount Strategy Buyers are sensitive to price
▪ Works if leader does not cut price Cheaper Goods Strategy
▪ Lower quality but much lower price▪ Vulnerable to still cheaper goods
Prestige Goods Strategy▪ Increase both quality and price
Marketing Strategy Elements
Market Challenger Strategies
Cheaper Goods Strategy▪ Lower quality but much lower price
▪ Vulnerable to still cheaper goods
Prestige Goods Strategy▪ Increase both quality and price
Marketing Strategy Elements
Attacker(smaller)
Defender(bigger)
PositionDefense
PreemptiveDefense
Counteroffensive
ContractionDefense
Flanking Defense
Mobile Defense
Flank Attack
Frontal
Attack
Encirclement
Bypass
Guerilla Attack
Assignment 1
Write a review of the article top ten barriers to marketing planning according to the guidelines provided in the course outline.
Due next week in class
Assignment 2
Prepare a report regarding the product/service you chose during this lecture for Marketing Strategy Elements and discuss these elements in context of that product/service
Due next week in class