Strategic Marketing Plan. Sonex Cookware 3i5b4l

Strategic Marketing Plan Sonex Cookware

▪ QASIM MEHMOOD

17221002

▪ MUHAMMAD WAQAS

17221007

Sonex Cookware i.

Executive Summary

ii.

Situation Analysis

iii. SWOT Analysis

i.

Executive Summary

SONEX METAL INDUSTRIES “Commitment to our customer satisfaction” ▪ Sonex is a family owned company, founded in 1955 ▪ Now a large diverse group of industries, Sonex Utensils, Non Stick Utensils, Stainless Steel three ply Utensils. ▪ Company philosophy is "commitment to our customer´s satisfaction", ▪ Uncompromising precision, progressive innovation and outstanding designs of our products reflect this dedication.

▪ Sonex Sanitary Fittings established in 1992 now launched granite tiles in market.

▪ Those who emphasize quality and reliability will discover and ideal answer to their requirement in Sonex programme: ▪ A range of fascinating models in different finishes and designs which can satisfy the needs of private, commercial and institutional customers.

▪ Sonex products are superior not only in designs and quality, but also in case of installation, simplifying after sale maintenances.

Sonex means: ▪ Invocative ideas and personal dedication combined with high quality products, ▪ Sonex attach great importance to tradition, personal relationship and professional advice to its customers. ▪ It has grinded the ISO 9002 certificate.

Reference http://www.sonex.com.pk

▪ We see our biggest challenge is not only developing an elite range of products, but also in creating a general implementation of our ideas and experiences. ▪ We define the requirement of a new series as economical without simplistic content, individual creativity at an affordable pricing.

ii.

Situation Analysis

A.

The Internal Environment

 Review of marketing goals and objectives ▪ Goals: ▪ “To provide quality material combined with quality construction and reasonable prices & main motto is the, complete satisfaction of our customers with quality, standard and in time delivery”

▪ Objective: ▪ “Sonex die cast seeks to become the leading ethical manufacturer and exporter of household cookware in the country, servicing an expanding base of satisfied, international clients”

How goals and objective achieved: ▪ Goals: ▪ To provide quality material

▪ With quality construction ▪ Delivery in time

▪ Objective: ▪ Seek to become Leading ethical manufacturer ▪ Exporter of household cookware ▪ International clients

Goals and objectives consistent or inconsistent with mission: • Yes, goals and objective are consistent with mission statement because Sonex cookware is delivering what they are committing. ▪ Due to inflation the buying power of the customer is decreasing and it’s a threat for the industry. ▪ In this national market considering as the ordinary activity or consider it as regular. Prices of the products can be changed anytime. The prices of our products can also fluctuate through trend.

 Current Marketing strategy and performance ▪ The product quality and service is very good and appropriate. Sonex Company doesn’t compromise on quality and services. And they try to become better and appropriate in future. ▪ Sonex has segmented their market very effectively they have targeted elite class as well middle class household women’s.

▪ The position of Sonex is very good among competitors because it’s the market leader with the highest share in the market. ▪ The price of goods and services is very reasonable and affordable. And they are cost leader and differentiate in cookware market.

 Current and anticipated organizational resources ▪ The financial condition of SONEX is very strong they are performing better than the industry average. ▪ For distribution and production, Sonex receives its raw material from its various suppliers as per order demand and produce finished goods. It has maintained good relationships with suppliers.

▪ The company produces quality goods for its customers and promises the delivery in time. For avoiding any uncertainty from suppliers the company is well maintain its inventory. ▪ For outbound logistics the company has only one distributor.

 Current and anticipated cultural and structural issues ▪ The firm has a very fine orientation towards its customers. This is the reason that firm has been able to gain the trust of customers leading to the bigger market share. ▪ Sonex mostly finance through bank loans because they have a good reputation in market so they get the loan easily and their finance manager is well qualified and experienced. ▪ They are the market leader in the cookware and they are fulfilling the customers’ need very appropriately.

B.

The Customer Environment

 Firms current and potential customers ▪ The current customers are the middle and upper middle class females who these buying decisions. ▪ Their lifestyles are family oriented. ▪ They have a high usage rate. Potential s are the elite and upper class.

 What do customers do with firms products ▪ The customers have a daily based use of firm’s products. ▪ It facilitates the cooking process

▪ Provide ease ▪ Saves time ▪ Consumer purchase the product according to their need.

 Where do customers purchase the firm's products ▪ The firm does not have any outlet. They buy it from the distributors and retailers. ▪ Customers also buy the products from online platforms.

 When do customers purchase the firm's products ▪ Customers buy the products at the events and when the product is damaged or the life of the product is finished.

 Why (and how) do customers select the firm's products ▪ Ease of cooking ▪ Brand image ▪ Quality

▪ Personal relations ▪ Design

 Why do potential customers not purchase the firm's products ▪ This is because the potential customers’ current product still has its life. ▪ He doesn’t need the style of the product.

C.

The External Environment

 Competition ▪ They have the brand competition. ▪ Sonexs’ competitors are Ajwa cookware and Finex cookware. ▪ They are targeting middle and lower middle class.

 Economic Growth and Stability ▪ . Due to inflation the buying power of the customer is decreasing and it’s a threat for the industry. (Threat)

▪ In this national market considering as the ordinary activity or consider it as regular. Prices of the products can be changed anytime. This is threat for national market. The prices of our products can also fluctuate through this trend.

 Political Trends ▪ Government Regulation & Deregulations: ▪ Government has recently decided to privatize the Pakistan steel mill and through the privatization process the efficiency of the Pakistan steel mill will be increased. PSM which is a major supplier of steel to manufacturers of different iron and steel products. ▪ . This is an opportunity for us because through this steel will provide better quality products and the time period will be short. It’s an opportunity for us. At current situation they are producing 2.5 million tons of steel and their efficiency will be doubled by 500 million tons and it would reach to maximum capacity to produce. ▪ If the privatization takes place then 26% share will be only transferred to private sectors the other 74% share will be in the hands of government.

 Legal and Regulatory Issues

▪ Change in Tax Laws: ▪ About 25 pc tax revenue is collected through direct taxes and the remaining 75 pc through indirect taxes. On 1 January 2015 on certain products was increased from the standard rate of 17% to 22% in order to counter the revenue shortfall in view of the short fall of the prices. A further increase in the sales tax to 27% came into effect on 1 February 2015.so increase in the indirect taxes is a threat for industry. The corporate tax rate 2015 in Pakistan, set by the FBR, stands at 35% whereas in 2014 it was 34% and in 2013 it was and in 2013 it was 33%.The corporate income tax rate is a tax collected from companies. Its amount is based on the net income companies get while doing business. Pakistan indirect tax rate for the last 3 year is 17%. It’s a threat for the industry.

 Technological Advancements ▪ Research & Development: ▪ R&D is very important factor in the industry of steel. There are many goods of steel industry that serves the consumers in several ways. R&D in this field is very necessary to find that what customers wants now and in coming time. This is an opportunity for us to conduct R&D for the consumer requirement.

 Sociocultural Trends ▪ Number of Marriages: ▪ As the social structure and number of marriages is ever changing. With the marriage a family is created. With the increasing number of marriages the need of the family are also increasing. It’s a need of every family to cook food and use utensils. So it’s an opportunity for our industry because with the increase in family the need of utensils and other steel items is increasing.so it’s an opportunity and we can produce gods and sell to this segment. ▪ Buying Habits: ▪ Buying preferences of the customers are always changing. Manufacturers have to identify the needs of the customers and develop the products according to customers’ needs.so it is a threat for the steel industry so the industry should have to continuously in the effort to develop the products according to consumer preferences.

iii. SWOT Analysis

A.

Strengths

▪ Brand image ▪ 65% market share of cookware ▪ Known in international markets

▪ The firm has created a trust in customers heart which is the main strength to meet the customers’ need and the bigger market share and export to other countries enable the firm to be differentiated from its competitors.

B.

Weaknesses

▪ Unskilled labor ▪ High cost perception

Sonex claims to manufacture the high quality products and their unskilled labor is a weakness which may cause some uncertainty while delivering the high quality products.

High cost perception is a weakness where the competitors have an edge because the class who is price conscious will not opt for Sonex.

C.

Opportunities

▪ R& D department ▪ Enter in new foreign market

▪ Creating an R&D department will let the firm to explore new ideas that will lead to serve the customers’ need. ▪ Entering the new foreign markets will bring more business and growth of the firm.

▪ Time horizon for entering the new foreign market may not be very long because the firm has many resources that will help it doing so.

D.

Threats

▪ Continuous decrease in currency value ▪ Non quick response to technological change

▪ Devaluing of currency is a threat because it makes the profit of the firm narrower in the long run and the non quick response to technology is a threat because the product is of such a nature that no one changes it rapidly.